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COUNCIL - COMPLETE AGENDA - 10/15/2013 - COMPLETE AGENDA
Karen Weitkunat, Mayor Gerry Horak, District 6, Mayor Pro Tem Council Chambers Bob Overbeck, District 1 City Hall West Lisa Poppaw, District 2 300 LaPorte Avenue Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, 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 (AGENDA REVISED 10-14-13) October 15, 2013 Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring October 15, 2013 as United Way of Larimer County’s Give, Advocate, and Volunteer Day B. Proclamation Declaring October as “Fort Collins Reads” Day. C. Proclamation Declaring October 21, 2013 as “Day of Tolerance”. 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. 23) N Citizen opportunity to pull Consent Calendar items. (will be considered under Item. No. 28) 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 19. 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: ! Ordinances 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. Speakers are asked to: ! State your name and address for the record. ! Keep comments brief; if available, provide a written copy of statement to City Clerk. ! Address your comments to Council, not the audience. ! Promptly cease your comments when the allotted time expires. ! You may not yield part or all of your time to another and another speaker will not be credited with time requested but not used by you. ! Applause, outbursts or other demonstrations by the audience are not allowed. Page 3 6. Consideration and Approval of the Minutes of the September 17, 2013 Regular Meeting. ANNUAL BUDGET-RELATED CONSENT ITEMS 7. First Reading of Ordinance No. 138, 2013, Authorizing the Appropriation of 2014 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. The 2014 annual operating budget for the Airport totals $783,750, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. As in 2013, this amount for each City is $92,500 greater than the prior years’ contributions of $85,000. For the City of Fort Collins, the original $85,000 is funded from General Fund ongoing revenue, while the one-time increase of $92,500 will be funded from General Fund reserves. This Ordinance authorizes the City of Loveland to appropriate the City of Fort Collins contribution, which is a 50% share of the 2014 Airport budget and totals $391,875. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $757,480, for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2014 Airport capital funds, totaling $1,514,960, will be used to complete major Airport improvements, such as the acquisition of an Aircraft Rescue and Fire Fighting apparatus, and the construction of a snow removal equipment storage facility. 8. Items Relating to the 2014 Downtown Development Authority Budget. A. First Reading of Ordinance No. 139, 2013, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2014 and Fixing the Mill Levy For the Downtown Development Authority for Fiscal Year 2014. B. First Reading of Ordinance No. 140, 2013, Appropriating Proceeds from the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Bond, Series 2013A, for the Purpose of Making Certain Capital Improvements Within the Downtown Area of Fort Collins. The Annual Appropriation Ordinance is presented for First Reading. Ordinance, No. 139, 2013 sets the Downtown Development Authority (DDA) 2014 Operations and Maintenance Budget amount of $764,404 to be appropriated for fiscal year 2014 for the administrative operations budget, appropriates the 2014 Line of Credit Draw in the amount of $1,000,000, sets the amount of $3,197,101 for debt service payments to be appropriated for fiscal year 2014, and sets the 2014 Mill Levy for the Fort Collins DDA at five (5) mills (unchanged since tax year 2002). The approved Budget will become the Downtown Development Authority’s financial plan for 2014. Ordinance No. 140, 2013 appropriates bond proceeds in the amount of $6,050,000. NON-BUDGET CONSENT ITEMS 9. Second Reading of Ordinance No. 131, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds And Authorizing the Transfer of Appropriated Amounts between Funds or Projects. The purpose of this annual Clean-Up Ordinance, unanimously adopted on First Reading on October 1, 2013, is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2013 budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operational expenses. Page 4 10. Second Reading of Ordinance No. 132, 2013, Appropriating Unanticipated Grant Revenue from the Institute of Museum and Library Services in the Museum Fund for “Living with Fire: A Community Responds” Grant Project. This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates $138,933 in grant funds awarded to Fort Collins Museum of Discovery by the Institute of Museum and Library Services. 11. Second Reading of Ordinance No. 133, 2013, Appropriating Prior Year Reserves in the Light & Power, Water, Wastewater and Stormwater Funds for the 800 MHz Radio Communication System Capital Project. This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates funding for the purchase and installation of an 800 MHz radio system for the Utilities Department. This system is similar to that used by police, fire and emergency medical personnel, and other Front Range utilities and will also allow for better communications between agencies during emergencies. 12. Second Reading of Ordinance No. 134, 2013, Appropriating Prior Year Reserves in the Water Fund for Two Water Main Replacement Projects. This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates funds for the project design for the water main replacement on College Avenue and for design and construction of water main replacement on Meldrum Street. 13. Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreement. A. Second Reading of Ordinance No. 135, 2013, Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise for the Delivery of Potable Water. B. Second Reading of Ordinance No. 136, 2013, Authorizing the Mayor to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise. These Ordinances, unanimously adopted on First Reading on October 1, 2013, restructure the existing water sharing agreement with the Fort Collins-Loveland Water District (FCLWD) and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. 14. Second Reading of Ordinance No. 137, 2013, Designating 1501 Peterson Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. This Ordinance, unanimously adopted on First Reading on October 1, 2013, designates the Crane Property at 1501 Peterson Street as a Fort Collins Landmark. The owners of the property, Robert and Sally Linton, are initiating this request. 15. First Reading of Ordinance No. 141, 2013, Appropriating Unanticipated Revenue from the Public Service Company into the Capital Projects Fund for the Trail Acquisition and Development-Special Funds Project. The purpose of this item is to appropriate $1,250,000 from Public Service Company (PSCo or Xcel) into the Capital Project Trail Acquisition/Development - Special Funds. The Public Service Company’s (PSCo) West Main Pipeline Project required easements across City- owned Coyote Ridge, Colina Mariposa, and Hazaleus Natural Areas located along South Shields Street between Fort Collins and Loveland and on the Kingfisher Natural Area near Timberline Road. Page 5 PSCo has agreed to provide $2,000,000 as compensation for the easements, and as mitigation for the project’s community wide impacts. From the PSCo revenues, funding in the amount of $1,000,000 will be used for the construction of a ten-foot wide concrete regional trail on the east side of Shields Street from Fossil Creek Drive to Trilby Road. Funding in the amount of $250,000 will also be used for the removal and relocation of the Poudre Trail at the Woodward Technology Center. The remaining $750,000 of PSCo revenues will be used by Natural Areas for various projects along the Poudre River. These funds were appropriated in the Natural Areas Fund by Ordinance No. 090, 2013. 16. First Reading of Ordinance No. 142, 2013, Authorizing the Appropriation of Prior Year Reserves in the General Fund for the Police Dispatch Radio Console Replacement Project. The purpose of this item is to appropriate $250,000 from Camera Radar reserves and $554,658 from the existing Police Services budget to fund the replacement of Police dispatch equipment that has reached the end of its useful life. The total cost to replace the equipment is approximately $804,658. The equipment will be procured via City purchasing regulations and procedures to maximize the purchasing value of public funds following a fair and equitable process. 17. First Reading of Ordinance No. 143, 2013, Appropriation of KFCG Reserves for the Purchase of Additional Body Worn Cameras. Police Services is seeking to appropriate $182,000 out of the KFCG reserves for the purchase of 40 more body-worn cameras for on-duty police officers. 18. First Reading of Ordinance No. 144, 2013, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the Horsetooth Road and Timberline Road Intersection Improvements Project. The purpose of this item is to obtain authorization from City Council to use eminent domain, if deemed necessary, to acquire property interests needed to construct improvements at the Horsetooth Road and Timberline Road intersection. The Horsetooth Road and Timberline Road Intersection Improvements Project will construct safety and congestion mitigation improvements at the intersection. The project is planned to begin construction in the summer of 2014 and be completed in the fall of 2014. The project budget consists of both federal and local funds. To construct these improvements, the City will need to acquire certain property interests adjacent to the project area. The acquisitions include right-of-way and temporary easements from thirteen property owners. Timely acquisition of the property is necessary to meet the anticipated construction schedule. Staff fully intends to negotiate in good faith with all affected owners, and is optimistic that all property negotiations can be completed prior to the start of the Project. Staff is requesting authorization of eminent domain for all property acquisitions for the Project to comply with federal acquisition requirements. Eminent domain action will be used only if such action is deemed necessary. 19. Resolution 2013-087 Making an Appointment to the Downtown Development Authority. This Resolution fills one vacancy on the Downtown Development Authority. END CONSENT 20. Consent Calendar Follow-up. This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. 21. Staff Reports. Page 6 22. Councilmember Reports. 23. 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. 24. Second Reading of Ordinance No. 128, 2013, Amending Article IV of Chapter 20 of the City Code Pertaining to the Outdoor Storage of Materials. (staff: Beth Sowder; 10 minute staff presentation; 45 minute discussion) This Ordinance, adopted on First Reading on September 17, 2013, by a vote of 4-1 (Nays: Troxell; Campana, Horak absent), addresses ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. On First Reading, Council directed staff to make some changes to the proposed ordinance and bring them back for Second Reading on October 15. The changes include: • The title of the new provision has been changed from “excessive” storage to “improper” storage to clarify that improper storage is not solely a function of the quantity of materials stored. • The new provision has been incorporated into the same Code section as another, existing provision dealing with the outdoor storage of construction materials, since both provisions deal with the outdoor storage of materials. • The language dealing with health and safety concerns has been eliminated from the new provision since there is already a subsection of the rubbish provisions of the Code that deals with health and safety concerns resulting from an accumulation of materials. • The provision has been re-worded so that the presence of at least three of the enumerated problems will constitute a violation. Page 7 25. First Reading of Ordinance No. 145, 2013, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2014; Amending the Budget for the Fiscal Year Beginning January 1, 2014,and Ending December 31, 2014; and Fixing the Mill Levy for Fiscal Year 2014. (staff: Darin Atteberry, Mike Beckstead; 10 minute staff presentation; 45 minute discussion) This Ordinance amends the adopted 2014 Budget and sets the amount of $500,514,287 to be appropriated for fiscal year 2014. Including the 2014 adopted budgets for the General Improvement District (GID) No. 1 of $194,001 and the revised Urban Renewal Authority (URA) budget of $2,191,746 the total City appropriations amount to $502,900,034. The Net City Budget, which excludes GID, URA, internal transfers between City funds, is $398,157,679 for 2014. The Net City Budget, as amended, is allocated to: Original Amended 2014 2014 Change Operations $441.5 $451.4 $9.9 Debt Service 20.5 20.7 0.1 Capital* 26.6 30.8 4.2 Total City Appropriations** $488.6 $502.9 $14.3 General Improvement District (GID) #1 ($0.2) ($0.2) $0.0 Urban Renewal Authority (URA) (1.8) (2.2) (0.4) Internal Service Funds (57.5) (57.7) (0.3) Less Transfers to Other Funds (39.2) (44.6) (5.4) Net City Budget $390.0 $398.2 $8.2 * Capital dollars reflect non-lapsing capital project budgets ** This includes GID and URA which are appropriated in separate ordinances This Ordinance also sets the 2014 City mill levy at 9.797 mills, unchanged since 1991. 26. Items Relating to Utility Rates, Fees and Charges for 2014. (staff: Lance Smith; 10 minute staff presentation; 45 minute discussion) A. First Reading of Ordinance No. 146, 2013 Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 147, 2013 Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. (Option A or Option B) C. First Reading of Ordinance No. 148, 2013 Amending Chapter 26 of the City Code of the City of Fort Collins to Revise Water Rates and Charges. (Option A or Option B) D. First Reading of Ordinance No. 149, 2013 Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. E. First Reading of Ordinance No. 150, 2013 Amending Chapter 26 of the City Code to Revise Wastewater Rates and Charges. (Option A or Option B) F. First Reading of Ordinance No. 151, 2013 Amending Chapter 26 of the City Code of the City of Fort Collins to Revise Sewer Plant Investment Fees. G. First Reading of Ordinance No. 152, 2013 Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. H. First Reading of Ordinance No. 153, 2013 Amending Chapter 10 of the City Code of the City of Fort Collins to Revise Floodplain Permit Fees. Page 8 The purpose of this item is to determine the 2014 Utility rates, fees and charges. The approved 2014 City Budget included small gradual rate increases in the electric, water and wastewater utilities. The rate increases being proposed here are consistent with or less than what is shown in the approved 2014 City Budget. 27. First Reading of Ordinance No. 154, 2013, Appropriating Funds from the City’s General Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of URA Reimbursements for the Capstone Redevelopment Corporation Summit on College Project. (staff: Megan Bolin; 10 minute staff presentation; 45 minute discussion) The purpose of this item is to approve a Loan Agreement between the City of Fort Collins and Fort Collins Urban Renewal Authority that will fund the approved $5 Million tax increment financing reimbursement to Capstone Development Partners. 28. Consideration of Citizen-Pulled Consent Items. 29. Other Business. a. Council will consider adjourning into Executive Session after the Skyview South GID No. 15 meeting. 30. 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. u r b a n r e n e w a l a u t h o r i t y Karen Weitkunat, Chairperson City Council Chambers Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, Executive Director Steve Roy, City Attorney Wanda Nelson, Secretary 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. Please call 221-6515 (TDD 224-6001) for assistance. URBAN RENEWAL AUTHORITY BOARD OF COMMISSIONERS MEETING October 15, 2013 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Agenda Review: • Executive Director’s Review of Agenda. 4. Citizen Participation Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Board on items not specifically scheduled on the agenda must first be recognized by the Chairperson or Vice Chair. 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 Chairperson 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 Secretary 9 of 402 5. Citizen Participation Follow-up This is an opportunity for the Chairperson and Commissioners to follow-up on issues raised during Citizen Participation. 6. Staff Reports. 7. Commissioner Reports. DISCUSSION ITEMS The method of debate for discussion items is as follows: ! Chairperson introduces the item number and subject; asks if formal presentation will be made by staff ! Staff and/or Applicant presentation (optional) ! Chairperson requests citizen comment on the item (five-minute limit for each citizen) ! Board questions of staff on the item ! Board motion on the item ! Board discussion ! Final Board comments ! Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, 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. 8. Consideration and Approval of the Minutes of the September 17, 2013 Urban Renewal Authority Board Meeting. 9. Resolution No. 062 Adopting the 2014 Budget for the Fort Collins Urban Renewal Authority. (staff: Tom Leeson; 5 minute staff presentation; 10 minute discussion) The purpose of this item is to adopt the 2014 budget for the North College Tax Increment Financing District and the Prospect South Tax Increment Financing District. Budget revenues include property tax increment and interest earned on investments, totaling $1,560,295. Budget expenses include general operations, the new North College Storefront Improvement Program, and debt service payments, totaling $2,191,746 10. Resolution No. 063 Adopting Updated Policies for the Urban Renewal Authority. (staff: Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to amend the adopted 2012 URA Policies and Procedures. The Resolution requires participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for new buildings and major renovations. Additionally, the Resolution also requires URA funded projects to recycle materials such as doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard. The Resolution also delegates the authority to approve Administrative Procedures with the Executive Director. 11. Other Business. 12. Adjournment. 10 of 402 Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, 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. Please call 221-6515 (TDD 224- 6001) for assistance. GENERAL IMPROVEMENT DISTRICT NO. 1 MEETING October 15, 2013 (after the Urban Renewal Authority Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. First Reading of Ordinance No. 065, Determining and Fixing the Mill Levy for the General Improvement District No. 1 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of County Commissioners of Larimer County; and Making the Fiscal Year 2014 Annual Appropriation. (staff: Mike Beckstead; no staff presentation; 5 minute discussion) The sum of $276,258 is anticipated to be collected from the mill levy of 4.924 mills for fiscal year 2014 imposed within the General Improvement District No. 1 (GID) boundaries. Additional revenue for GID No. 1 from sources like automobile specific ownership taxes, ad valorem taxes, and interest earnings are anticipated to total $37,732. The total 2014 revenue for GID No. 1 is expected to be $313,990. 4. Other Business. 5. Adjournment. GENERAL IMPROVEMENT DISTRICT NO. 1 AGENDA 11 of 402 Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, 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. Please call 221-6515 (TDD 224- 6001) for assistance. SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT MEETING October 15, 2013 (after the General Improvement District No. 1 Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. First Reading of Ordinance No. 004, Determining and Fixing the Mill Levy for the Skyview South General Improvement District No. 15 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County. (staff: Mike Beckstead; no staff presentation; 5 minute discussion) The sum of $24,861 is anticipated to be collected from the mill levy of 10.0 mills for fiscal year 2014. Additional revenue for the General Improvement District (GID) No. 15 ("GID No. 15") from interest earnings is anticipated to generate $398. The total 2014 revenue for GID No. 15 is expected to be $25,259. The total amount will be used in the future to maintain and repair roads in the Skyview subdivision. 4. Other Business. 5. Adjournment. SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT AGENDA 12 of 402 PROCLAMATION WHEREAS, for over 50 years United Way of Larimer County has strived to ensure that our community’s important health & human service needs are met in an atmosphere of mutual respect and trust; and WHEREAS, the historic roles of United Way include providing leadership in identifying and prioritizing health and human service issues in Larimer County, and conducting major fundraising campaigns to support solutions for those needs in our communities; and WHEREAS, the partnership role between the community at large and United Way of Larimer County is broadening to include an emphasis on community solutions, charitable giving and volunteer contributions; and WHEREAS, United Way of Larimer County strives to improve our local community through their nationally recognized Make a Difference Day as well as through the annual fundraising campaign NOW THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim October 15, 2013 as United Way of Larimer County’s Give, Advocate, and Volunteer Day in Fort Collins and I urge all citizens of Larimer County to become actively involved in supporting United Way, through its campaign and volunteer initiatives. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _________________________________ City Clerk 13 of 402 PROCLAMATION WHEREAS, Fort Collins Reads is a one city, one book program that encourages reading and the civil discussion it can evoke; and WHEREAS, for the past 10 years, the Fort Collins Reads committee has selected a book, encouraged people to read it and discuss it, and then hosted the author’s visit to the city; and WHEREAS, Fort Collins Reads promotes other events throughout the year that relate to the book’s contents and further the discussion; and WHEREAS, this year’s book is “In the Garden of Beasts” by Erik Larson, who will speak at 1 p.m. November 3 at The Hilton in Fort Collins; and WHEREAS, Fort Collins Reads is one of the many unique programs that make our community great. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City Fort Collins, do hereby proclaim November 3, 2013 as FORT COLLINS READS DAY IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _________________________________ City Clerk 14 of 402 PROCLAMATION WHEREAS, Gerda Weissmann Klein is a survivor of the Holocaust, recipient of the Presidential Medal of Freedom, celebrated author of nine books, and proud naturalized U.S. citizen; and WHEREAS, for more than 60 years, Gerda Weissmann Klein has spread her powerful message of hope, inspiration, love, and humanity to audiences around the world; and WHEREAS, the Richardson Foundation is committed to raising awareness, consciousness, and reflection within our community and is proud to sponsor two events with Gerda Weissmann Klein to share her impact on society with Fort Collin, and, in association with these events, will engage local officials to have dialogue about diversity, tolerance, and justice; and WHEREAS, Citizenship Counts, founded by Gerda Weissmann Klein, empowers young people to be responsible, participatory and socially-just citizens who appreciate the benefits of living in a diverse, inclusive, democratic country and helps ensure that the citizens of tomorrow continue to foster tolerance, understanding, service to one another; and WHEREAS, the Richardson Foundation joins Gerda Weissmann Klein in communicating and cultivating the simple message of “One Act of Kindness;” and WHEREAS, the City of Fort Collins affirms its commitment to ensuring tolerance in our city, to work with the Richardson Foundation to spread messages of inspiration, and to recognize and honor Gerda Weissmann Klein for teaching the importance of respect, responsibility and the acceptance of differences. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim October 21, 2013 as DAY OF TOLERANCE in Fort Collins and urge the community to join together to support these values. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 15th day of October, A.D. 2013. ______________________________ Mayor ATTEST: ____________________________________ City Clerk 15 of 402 Agenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Wanda Nelson, City Clerk SUBJECT Consideration and Approval of the Minutes of the September 17, 2013 Regular Meeting. 16 of 402 September 17, 2013 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, September 17, 2013, at 6:44 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Cunniff, Overbeck, Poppaw, Troxell and Weitkunat. Councilmembers absent: Campana, Horak Staff Members Present: Atteberry, Nelson, Roy. Agenda Review City Manager Atteberry stated Kevin Gertig and Mike Gavin will be providing an update on the flood response and recovery during Staff Reports. Additionally, under Other Business, two Resolutions will be presented for Council’s consideration to extend the local emergency declared last week and to give the City Manager authorization to provide aid and assistance to other jurisdictions. Citizen Participation Mel Hilgenberg, 172 North College, offered thoughts for flood victims, thanked Council for the proclamation relating to Constitution Week, and announced community theater events. He requested the trolley barn be left as is and suggested the refurbishment of a horse-drawn school bus and discussed suggested uses for various properties around town. Vic Day, Larimer County resident, discussed the need for flood control, specifically relating to Boxelder Creek, and stated Clark Reservoir needs additional flood mitigation controls. Eric Sutherland, 3520 Golden Currant, commented on Clark Reservoir and the Boxelder Stormwater Authority and suggested its management needs to be revisited. Ellen Lirley, 1800 Laporte, supported additional funding for the Senior Center expansion. Carol Smith, 312 Galaxy Way, supported additional funding for the Senior Center expansion. Vivian Armendariz, 820 Merganser Drive, asked what type of assistance the City will provide to flood victims, including those in other municipalities. She opposed the use of taxpayer dollars on the USA Pro Cycling event. 17 of 402 September 17, 2013 289 Alan Beatty, 172 North College, supported additional funding for the Senior Center expansion. Clint Skutchan, Fort Collins Board of Realtors, stated the issue of affordable housing, and the influence of the Board, will be discussed within his organization. Sandy Gordon, 300 Remington, supported additional funding for the Senior Center expansion. Citizen Participation Follow-up Councilmember Cunniff requested follow-up regarding the Boxelder Creek issue. City Manager Atteberry replied a report will be provided. Councilmember Troxell noted the Boxelder project is not yet complete and supported the design and thought behind the project. Mayor Weitkunat thanked Mr. Skutchan for the discussion regarding affordable housing within the Board of Realtors. Councilmember Troxell discussed a meeting with the Fort Collins Housing Authority and noted the longer-term future of affordable housing within the community needs to be discussed. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the August 20 and September 3, 2013 Regular Meetings. 7. Second Reading of Ordinance No. 122, 2013, Authorizing the City Manager to Extend the Term of the Agreement Between the City and Mayo Foundation for Health Risk Assessment Software for the City’s Wellness Program. This Ordinance, unanimously adopted on First Reading on September 3, 2013, authorizes a one-year extension of the contract with the Mayo Foundation for Medical Education and Research to provide services associated with the assessment and management of existing and potential health risks of City employees from April 1, 2014 to March 31, 2015, with the option to extend for additional one (1) year periods not to exceed four (4) additional one-year renewals. This extension will allowed continued use of services provided by Mayo while staff assesses costs, benefits, services and other options associated with an Onsite Employee Medical Clinic and the potential to consolidate health risk assessment services now provided by Mayo with the Clinic. 8. Second Reading of Ordinance No. 123, 2013, Expanding the Boundaries of the Fort Collins Downtown Development Authority and Amending the Plan of Development of the Authority. This Ordinance, unanimously adopted on First Reading on September 3, 2013, expands the boundaries of the Fort Collins Downtown Development Authority and amends the 18 of 402 September 17, 2013 290 Plan of Development of the Authority to include a commercially zoned property in the 800 block of Buckingham Street. The property, which includes one parcel owned by Colorado Iron and Metal Inc. and one parcel owned by Odell Investments, LLC, is vacant land with no address. 9. Second Reading of Ordinance No. 124, 2013, Authorizing a Patio Lease and Conveyance of an Access Easement on City Property to 201 S College, LLC. This Ordinance, unanimously adopted on First Reading on September 3, 2013, authorizes the conveyance of a patio lease and a permanent access easement on Oak Street Plaza to the 201 S. College, LLC owners of the lower level of Old Post Office Building adjacent to the park. The owner of the lower unit of the building has requested a patio lease on a portion of the City property adjacent to the north side of their building in anticipation of leasing the unit as a restaurant. The lease area will be used by the unit owner and their tenant for dining and art display purposes only and will be limited to a 10-year term with an option to renew for up to two (2) additional 5-year terms. In addition, the owner has requested an access easement across the park leading from their north entrances out to College Avenue. This access easement will provide the owner and their tenant legal access in and out of the lower unit. 10. Second Reading of Ordinance No. 125, 2013, Establishing a Temporary Ban on Marijuana Establishments Within the City of Fort Collins. This Ordinance, unanimously adopted on First Reading on September 3, 2013, establishes a temporary ban on marijuana cultivation facilities, marijuana testing facilities, marijuana product manufacturing facilities, and retail marijuana stores (collectively “marijuana establishments”) in the City of Fort Collins through March 31, 2014. Staff has scheduled work sessions for updates on November 12, 2013 and February 11, 2014. The November work session will focus on the results of the statewide taxation ballot question and public engagement conducted to date. 11. First Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. The purpose of this item is to request approval of an agreement for the lease-purchase of vehicles and equipment for the cost of $911,887. Payments under the agreement at the 2.28% interest rate will not exceed $193,489 in 2014. Money for 2014 lease-purchase payments is included in the 2014 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 0.67%. A competitive process was used to select Pinnacle Public Finance for this lease. A 2013 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease-purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. Staff believes acceptance of this lease rate is in the City's best interest. 19 of 402 September 17, 2013 291 12. First Reading of Ordinance No. 127, 2013 Repealing Article II of Chapter 15 of the City Code in its Entirety. Article II of Chapter 15 of the City Code regarding intrusion, robbery, fire and other alarm systems is outdated and needs to be repealed in its entirety. 13. Routine Easement. Easement for construction and maintenance of public utilities from Roger T Sterling and Bernita J. Sterling, to install advanced metering system infrastructure for Laporte water meters at 2325 Eddy Lane. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Nelson. 7. Second Reading of Ordinance No. 122, 2013, Authorizing the City Manager to Extend the Term of the Agreement Between the City and Mayo Foundation for Health Risk Assessment Software for the City’s Wellness Program. 8. Second Reading of Ordinance No. 123, 2013, Expanding the Boundaries of the Fort Collins Downtown Development Authority and Amending the Plan of Development of the Authority. 9. Second Reading of Ordinance No. 124, 2013, Authorizing a Patio Lease and Conveyance of an Access Easement on City Property to 201 S College, LLC. 10. Second Reading of Ordinance No. 125, 2013, Establishing a Temporary Ban on Marijuana Establishments Within the City of Fort Collins. Ordinances on First Reading were read by title by City Clerk Nelson. 11. First Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. 12. First Reading of Ordinance No. 127, 2013 Repealing Article II of Chapter 15 of the City Code in its Entirety. 19. Items Relating to Exterior Property Maintenance. A. First Reading of Ordinance No. 128, 2013, Amending Article IV of Chapter 20 of the City Code Pertaining to the Outdoor Storage of Personal Property. B. First Reading of Ordinance No. 129, 2013, Amending Section 5-47 of the City Code Pertaining to the International Property Maintenance Code. 20 of 402 September 17, 2013 292 Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt and approve all items on the Consent Calendar. Yeas: Poppaw, Troxell, Weitkunat, Overbeck and Cunniff. Nays: none. THE MOTION CARRIED. Consent Calendar Follow-up Councilmember Cunniff requested information about the justification process regarding Item No. 11, First Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. Councilmember Poppaw noted the ban on marijuana establishments is temporary. Staff Reports Mike Gavin, Director of Emergency Management, provided a chronological outline of the flooding events of the week and showed slides of flooding in the area. He discussed the necessity of road and bridge closures throughout the city and detailed response plans moving forward. Councilmember Troxell requested information regarding water quality. Kevin Gertig, Water Resources and Treatment Operations Manager, replied the Poudre supply was shut down due to elevated turbidity but Horsetooth Reservoir water meets or exceeds all state, local, and federal regulations for water quality. He stated there have been no issues at the City’s treatment facilities. Mayor Weitkunat thanked all staff and employees who worked toward aversion of a flooding crisis. Councilmember Troxell thanked City Manager Atteberry and City staff for cooperation with area communities. Councilmembers Overbeck and Cunniff expressed sympathy for flood victims and commended staff on the flood response. Councilmember Poppaw commended staff and first responders on the flood response. City Manager Atteberry discussed lessons he has learned over the past week. Councilmember Reports Councilmember Overbeck reported on the Council finance meeting regarding the Prospect Station URA agreement. 21 of 402 September 17, 2013 293 (Secretary’s note: The Council took a brief recess at this point in the meeting.) Resolution 2013-079 Concerning a Loan from the City of Fort Collins to the Fort Collins Urban Renewal Authority for the Purpose of Funding Certain Improvements for the Prospect Station Project and Declaring the City Council’s Present Intent to Fund Such Loan, Adopted The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this Resolution is to declare City Council’s intent to provide a loan to the Fort Collins Urban Renewal Authority (URA) for one half of the URA’s reimbursement obligation to Prospect Station LLC. On September 17, 2013, the Fort Collins Urban Renewal Authority (URA) Board will consider a Redevelopment Agreement for Prospect Station, a new mixed-use development proposed within the Prospect South Tax Increment Financing (TIF) District. The Agreement would authorize a $494,000 reimbursement obligation to Prospect Station LLC (Developer) for eligible project costs. Half ($247,000) of the reimbursement would be provided to the Developer upon completion of the project and verification of costs, and the remaining half would be dispersed in annual payments over the remaining life of the TIF District. The Redevelopment Agreement would obligate the URA to make a $247,000 payment to the Developer upon completion of the project in 2014. Since the URA will not have sufficient fund balance to pay that amount outright, a loan is requested from the City of Fort Collins. BACKGROUND / DISCUSSION Prospect Station LLC (Developer) submitted a formal application to the Fort Collins Urban Renewal Authority (URA) in June 2013 requesting tax increment financing (TIF) for a new, mixed-use project in the Prospect South TIF District. URA staff has since negotiated a Redevelopment Agreement, which will be considered by the URA Board for approval on September 17, 2013. Based upon the Larimer County Estimate of Value, the project is anticipated to generate $865,340 over the remaining 23-year life of the Prospect South TIF District (although the TIF District ends in 2036, the URA will collect tax increment revenue through 2037). If approved, the Redevelopment Agreement would establish a reimbursement obligation for eligible costs from the URA to the Developer of up to $494,000. Of this amount, half would be due upon completion of the project, and the remaining half would be dispersed through annual payments of $11,762 until 2036. The reimbursement obligation represents approximately 57% of the total estimated tax increment generated by the project. The project is expected to be complete by fall 2014; provided eligible costs are verified, this means that $247,000 would be due to the Developer. Since the URA will not have sufficient fund 22 of 402 September 17, 2013 294 balance to pay this sum outright, it is seeking a loan from the City of Fort Collins to fulfill this portion of the obligation. This Resolution would declare the Council’s present intent to provide a loan to the URA. Although the Resolution would be approved now, the loan would not be executed until such time as the funds are needed to make the payment to the Developer. The Resolution establishes the basic terms of the loan according to the City’s current investment policy (see Attachment 1 for the potential loan repayment schedule); if the terms need to change at time of execution and no longer adhere to established policy, the loan would be brought back to the URA Board and City Council for reevaluation. Loan Amount: $247,000 Interest Rate: Higher of the Treasury Rate or Municipal Rate plus .5%, per City investment policy. For the purposes of this Resolution, the current rate of 5.25% was used to project a repayment schedule. The actual rate will be established based on conditions when the loan is executed. Term: 21 years Based on these assumptions, principle and interest payments will total $422,284. When combined with the remaining half of the reimbursement obligation ($247,000), the total cost to the URA would be $669,284, which represents approximately 77% of the total estimated increment generated by the project. See Attachment 2 for the anticipated tax increment cash flow related to this project. FINANCIAL / ECONOMIC IMPACTS Adoption of this Resolution states Council’s intent to provide a loan to the URA at the time the URA needs to make a payment to Prospect Station LLC, per the Redevelopment Agreement considered by the URA Board on September 17, 2013. The Resolution provides a repayment schedule based on the City’s current investment policy; the loan amount and interest rate are subject to change at the time the loan is executed. Unless the terms need to change in a way that no longer adheres to the City’s investment policy, the loan will be executed administratively.” Tom Leeson, Redevelopment Program Manager, stated this Resolution would declare the Council’s intent to fund a loan to the URA for the purpose of funding certain improvements for the Prospect Station project. Eric Sutherland, 3520 Golden Currant, stated the agreement will give $750,000 taxpayer dollars to a private entity and suggested Council needs to study more before making decisions relating to the URA. Councilmember Cunniff noted the URA needs this loan because it is unable to meet the initial payment obligation. He asked if the necessity for such loans will be discussed. Leeson replied the necessity for this loan has nothing to do with previous circumstances; the Prospect South TIF District is new and has not generated enough revenue for a lump sum payment without a loan from the City. 23 of 402 September 17, 2013 295 Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2013-079. Yeas: Troxell, Weitkunat, Overbeck, Cunniff and Poppaw. Nays: none. THE MOTION CARRIED. Items Relating to Exterior Property Maintenance, Adopted on First Reading The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this item is to propose Code amendments that will address ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. This item focuses on three items that have a significant impact to the neighborhood and the general public because they are viewable from the public right-of-way. Neighbors have expressed that these conditions have a negative impact on their property values, enjoyment of their properties, and a general feeling of neglect and deterioration. The three proposed Code amendments include: • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way The above items are Phase 1 of this topic. Phase 2 will include excessive personal property and inoperable motor vehicle storage in back yards. Phase 2 is scheduled for City Council consideration on November 5, 2013. BACKGROUND / DISCUSSION Over the past several years, citizens have complained and inquired about residential properties that appear unkempt, deteriorated, and in disrepair. Staff addressed concerns at the identified properties that were violations of the Municipal Code; however, there continued to be existing, on-going issues that could not be resolved under the current Code. In response to those continued concerns, staff researched what other communities have done, explored other options, and discussed it with City Council at two work sessions. Staff documented the properties in Fort Collins that have various exterior property maintenance issues that negatively impact their neighborhood but are not currently in violation of the Code. There are relatively few properties that meet this description (less than a dozen), but neighbors continue to say that these properties have a significant negative impact on their neighborhood. Many of these properties have been deteriorating for several years, even decades in some cases. Some negative impacts expressed by neighbors include: declining property values, loss of enjoyment of their property, safety hazards, unwanted wildlife and insects, and a general feeling that no one cares about their neighborhood. 24 of 402 September 17, 2013 296 City Council has discussed this issue at two work sessions – March 12, 2013 and July 23, 2013 (Attachments 1 and 2). At the July 23 Work Session, Council directed staff to bring Phase 1 items to Council for consideration now, and to schedule the Phase 2 items in the fall (they are scheduled for November 5, 2013). Phase 1 includes: • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way Deficient Structures The currently adopted 2006 International Property Maintenance Code (IPMC) specifically exempts owner-occupied dwellings from the “substandard” classification addressing interior and exterior conditions. Substandard can be defined as defects that need repair or maintenance and have not yet been declared “dangerous”. Dangerous is defined as an imminent risk to the occupant or the public. When an owner-occupant fails to maintain the exterior of their property, the building can continue to degrade and over time deteriorate to a condition resembling “dangerous” resulting in costly repairs and becoming unsightly to an extent that property values throughout the neighborhood can be adversely affected. (See Attachment 3 for photo examples) A new classification of “deficient” is proposed that would be applicable to all buildings including owner-occupied dwellings. Deficient would be defined as, “a structure that through neglect, disrepair, or lack of maintenance (1) is no longer considered to be weather resistant using approved materials, or (2) allows the entrance of rodents or insects through holes in the exterior envelope, or (3) has exterior materials which are displaced or lack sufficient covering to provide the weather resistant barrier originally approved.” Owners of buildings that are declared to be deficient would be notified of the specific issues and be given suggestions on how to best mitigate the deficiencies. Building Services staff would work with the owner, provide contact information for private support services, and allow a reasonable time for corrections. Owners of deficient properties have the right to appeal any orders of the building official as described in the IPMC to the Building Review Board and in only extreme deficient cases, could the owner be subject to a citation and fine of up to $1,000 per day. Vacant & Dangerous Buildings Registry The currently adopted 2006 International Property Maintenance Code (IPMC) establishes processes that the City can use to monitor vacant buildings and includes actions needed to be taken when a building becomes dangerous. The majority of vacant buildings throughout the City require no City involvement because the owner or responsible party are providing the oversight, and there is no unlawful activity occurring. The vacant properties that are most problematic are those that are continually broken into or are open and unsecured or used for illegal activities. The City will post these buildings as “dangerous” and require that the owner install appropriate security measures and provide ongoing monitoring. Some owners of these vacant and dangerous buildings live out of state, and 25 of 402 September 17, 2013 297 the City will notify the owner when a violation is identified. It can take the out-of-state owner a number of days to correct the violation, mainly because the owner is trying to contact someone locally who is willing to make the corrections. With the proposed Vacant and Dangerous Building Registry program, an owner of a vacant building, that has been declared a “dangerous” building by Building Services, will be required to identify a local person who assumes the responsibility for assuring that the property is secured from unlawful entry and who can act on behalf of the owner to address and correct violations at that property. Owners of Vacant and Dangerous buildings have the right to appeal any orders of the building official as described in the IMPC to the Building Review Board and in only extreme cases, could the owner be subject to a citation and fine of up to $1,000 per day, or an order to demolish the “dangerous” structure. Excessive Storage of Personal Property Viewable from the Public Right-of-Way Currently, the Code prohibits the storage of all items that are not customarily stored outside in residential areas (e.g. indoor furniture, car parts, appliances, etc.) either in public view or viewable from ground level of a neighboring property. Additionally, the Code does not allow the storage of any rubbish or trash. The Code currently does not limit the amount of personal property that can be stored on any portion of the property if it consists of items that are customarily stored outdoors in a residential area (e.g. yard equipment, outdoor furniture/ornaments, tools, barbecue grills, landscaping materials, etc.). This proposal attempts to address the excessive storage of personal materials stored in public view. It does not prohibit the storage of items customarily stored outdoors in a residential neighborhood; rather, it addresses the amount of items as well as the duration of time that they can be stored in public view. Because it is very difficult to define “excessive” storage, this proposal takes several factors into consideration in order to declare a violation. (See Attachment 4 for photo examples) The factors taken into consideration include: • total amount of personal materials stored outdoors in public view • duration of personal materials stored outdoors in public view • general overall appearance of the stored materials • level of deterioration or disrepair of the stored materials • potential or actual negative impact of the materials on property values or loss of enjoyment of property of neighboring residential properties • potential for the stored materials to house rodents, insects, or other vermin • whether the materials are stored in the applicable property setback Additionally, this proposal includes an appeal process. If a property owner disagrees with a declaration of an excessive storage violation, they would have the option to appeal it to the Community Development & Neighborhood Services Director. Violations of this Code would be civil infractions with fines assessed as a penalty for non- compliance. As with current Code Compliance practices, a notice of violation would be sent to 26 of 402 September 17, 2013 298 the property owner of record (as well as the tenant and property manager, if known) giving them three weeks to correct the violation before a citation would be issued. Staff can also work with property owners to refer them to available and appropriate resources or assistance programs and to give them an additional, reasonable amount of time to correct the violation focusing on achieving voluntary compliance whenever possible. If they do not comply, a civil citation can be issued to the property owner, tenant (if any), or property manager (if any) assessing a fine and still requiring compliance. Anyone who receives a citation also has the right to request a hearing in front of the Municipal Court Referee or Judge. FINANCIAL / ECONOMIC IMPACTS It is anticipated that there will be very little financial impact to the City related to enforcement of these code amendments. There are relatively few properties that will be impacted, and the City already responds to inquiries about these properties now. There may be some economic benefit to addressing these properties because of the increase, or perceived increase, in property values and increased level of neighborhood quality. There will be an economic burden on the property owners that must make corrections to comply with the Code requirements. ENVIRONMENTAL IMPACTS This item could potentially improve the environment by reducing the harborage or infestation of rodents/insects and by improving the physical appearance of neighborhoods. BOARD / COMMISSION RECOMMENDATION The Affordable Housing Board and the Building Review Board both heard presentations about this item, although neither Board provided a recommendation. The Affordable Housing Board provided feedback that the code changes could add new financial burdens to struggling low-income households, and suggested that “excessive accumulation of storage” should be defined clearly. Staff explained that the Larimer Home Improvement Program would be available to help people who qualify financially and that staff would be able and willing to work with affected households regarding time and possible solutions. (Attachment 7) The Building Review Board provided feedback that there were specific reasons why owner- occupied units were excluded from the International Property Maintenance Code (IPMC) requirements when they were adopted and expressed concern that the new “deficient” category holds some similar requirements. (Attachment 6) PUBLIC OUTREACH Public Outreach to date includes: 27 of 402 September 17, 2013 299 • Coloradoan Article • CityNews • Neighborhood News • Focus Group meetings • Fort Collins Board of Realtors Governmental Affairs group meetings • Social Media • Affordable Housing Board – June 6, 2013 and September 5, 2013 • Building Review Board – July 25, 2013 Feedback included primarily support for these items. Most of the people who have expressed a high level of support are immediate neighbors of the identified problem properties. Most people who expressed opposition to these code changes stated that they feel it is too much government intervention. One common area of concern from stakeholders as well as the Affordable Housing Board was whether there would be any assistance available for people who cannot afford to make the necessary corrections. Staff confirmed that the Larimer Home Improvement Program could be utilized by people who meet the income qualifications to get assistance for needed home repairs (Attachment 5). Additionally, staff would be able to work with people regarding the amount of time they need to make the necessary corrections.” Beth Sowder, Neighborhood Services Manager, stated the purpose of this discussion is to create Code amendments to address ongoing property maintenance issues in residential areas. Mike Gebo, Chief Building Official, stated the International Property Maintenance Code (IPMC) addresses existing buildings and discussed the various categories of unfit buildings. Owner- occupied buildings were specifically exempted from the substandard condition when the City adopted the IPMC. The proposed change would be to have a new classification called “deficient” which would examine structures from an exterior, weather-proof view. Enforcement would be based on complaints and there is an appeal process for owners. Sowder discussed the excessive storage of personal property viewable from the public right-of- way item. The personal property addressed here does not include items customarily stored outdoors and many factors contribute to “excessive storage.” Sowder discussed the public outreach efforts relating to these changes. Vince Dechand, 1918 Hampshire Road, stated he lives next door to an owner-occupied dilapidated home. He detailed the deficient issues with the home and supported the Ordinances. Billie Welsh, 2218 Coventry Court, stated she lives next door to an unoccupied deficient home. She detailed the issues with the home and supported the Ordinances. She stated the roof currently has a blue tarp covering. Eric Sutherland, 3520 Golden Currant, stated the City has spent a great deal of money remedying urban blight throughout town and yet it does not provide a solution to these issues. 28 of 402 September 17, 2013 300 Eric Hart, 2212 Coventry Court, discussed the issues with the Coventry Court house and supported the Ordinances. Ray Meckless, 2213 Coventry Court, discussed the issues with the Coventry Court house and supported the Ordinances. Tatiana Martin, Fort Collins resident, expressed concern about the possible amount of excessive complaints these new regulations would generate. She stated the City needs to have funds in place to aid homeowners who are impacted and urged further definition of the term “excessive.” Paul Hunter, Fort Collins Board of Realtors Chair, stated the Board supports the proposed deficient definition as long as the regulations are fairly enforced and assistance resources are made available to anyone facing undue financial restraint. Additionally, the Board supports the creation of the vacant and dangerous homes registry as a part of the exterior property maintenance code. Mr. Hunter stated the Board currently opposes the regulation relating to excessive storage of personal property viewable from the public right-of-way due to guidelines not being clearly defined and equally applied and assistance resources not yet identified for hardship cases. Greg Rittner, Fort Collins Board of Realtors, supported the addition of the deficient definition and the creation of the vacant and dangerous homes registry, given proper assistance resources, but suggested the excessive storage of personal property issue should be moved to the second phase. Cindy Bolton, 907 Sitka Street, supported the Ordinances as she lives in a neighborhood with a hoarder. Clint Skutchan, Fort Collins Board of Realtors, supported the addition of the deficient definition and the creation of the vacant and dangerous homes registry, given proper assistance resources, but suggested the excessive storage of personal property issue should be moved to the second phase. Heidi Huber-Stearns, Fort Collins resident, supported the Ordinances as she shares a property line with a deficient property which has continually deteriorated. Mayor Weitkunat stated the discussion related to the International Property Maintenance Code items, deficiency and vacant and dangerous buildings registry, does not seem to be of controversy. However, she noted the concerns relating to the term “excessive” with regard to outdoor storage and the City Code changes should be discussed. City Attorney Roy discussed the term “prima facie” which allows an officer to issue a citation, yet it remains to be proven by a preponderance of the evidence because it is a civil infraction. The phrase is used to set up criteria to be used by the officer to make the determination as to whether or not to issue a citation. City Attorney Roy noted the definition of “excessive” is a difficult undertaking and will likely never be objective; however, the goal of putting sufficient criteria in the language, in order for one to make that determination, is attainable. 29 of 402 September 17, 2013 301 Councilmember Overbeck asked if a fund is available for community members to find resources. Sowder replied there is not a City fund available; however, the County has a program for zero or low-interest loans which is partially funded through the City’s competitive process. As far as excessive storage, manpower may be needed to move materials out of view and the City works with entities such as CSU to find those resources. Councilmember Cunniff stated this is a significant step in the right direction but stated a reasonable argument can be made for expanding the City’s assistance to those who have significant financial need. Councilmember Poppaw requested staff input regarding whether an excessive number of people may use this as a punitive tool against neighbors. Sowder replied it could happen right now; this Code does not make that any more likely. Staff can usually recognize when an underlying issue exists between neighbors and they are urged toward the City’s mediation program. Councilmember Poppaw asked what had been discovered relating to best practices in other communities. Polly Lauridsen, Code Compliance Supervisor, replied communities that have something like this generally place it within the Land Use Code and consider it a change of use when a property becomes a storage property. She stated our Code looks at the use being a residential property so it seems more appropriate in the nuisance area. Councilmember Poppaw noted the Larimer County Home Improvement Program can provide assistance with zero or low-interest loans and suggested there may be other programs in the County could handle the allocation of CDBG funds for this purpose. Councilmember Troxell asked for the number of homes with an excessive storage problem. Lauridsen replied there are probably between eight and ten currently. Councilmember Troxell asked if this item was presented to the Building Review Board and the Affordable Housing Board for consideration. Sowder replied in the affirmative but noted the specific draft language was not considered. Gebo replied he again presented to the Affordable Housing Board recently and discussed the seven criteria for defining “excessive.” He noted there was more support for having a criteria-based determination of “excessive” and the Board suggested multiple individuals should be used to make the determination rather than just one inspector in the field. Councilmember Troxell noted the Ordinance speaks to a single officer rather than multiple individuals. City Attorney Roy replied it is the investigating officer who makes the decision as to whether to issue a citation and the finder of fact in the court makes the determination as to whether a violation has occurred. Councilmember Troxell asked how evidence will be presented. City Attorney Roy replied the evidence would be presented as it is in any court proceeding, through witnesses who can testify to the existence and quantity of the materials via photographs. The referee then takes the evidence into consideration and makes a determination as to whether a violation has occurred. 30 of 402 September 17, 2013 302 Councilmember Troxell asked if staff can guarantee mediation prior to the issuance of a citation. Sowder replied in the negative, noting the mediation program is voluntary and stated compliance with the regulation would still be necessary. Councilmember Troxell expressed concern this may pit neighbors against each other. City Attorney Roy replied that problem is inherent in trying to regulate nuisances, because most nuisances are a question of degree and the existing Code provisions are also discretionary. Mayor Weitkunat suggested the term “any amount of storage materials” should be removed from the Ordinance as the accumulation factor is what should be addressed. Additionally, she opposed the inclusion of the phrase “unreasonably interfere with the enjoyment of life.” City Attorney Roy replied he agrees with the first suggestion but noted case law addresses the “enjoyment of life” phrase; however, it can be revised. Mayor Weitkunat expressed concern relating to some of the Ordinance language. Councilmember Cunniff made a motion, seconded by Councilmember Overbeck, to adopt Ordinance No. 128, 2013, on First Reading. Councilmember Cunniff stated he supports the Ordinance as written because the definition of nuisance is subjective. He supported the inclusion of “enjoyment of life” and noted any quantity of some items could be considered dangerous. Councilmember Poppaw argued the inability to walk down the sidewalk negatively impacts enjoyment of life. City Attorney Roy suggested staff rework phrasing prior to Second Reading. Councilmember Troxell supported Mayor Weitkunat’s suggestions and stated he may oppose the motion should it not contain that language. Mayor Weitkunat noted the importance of addressing the 50,000 homes in the City to which this does not apply. Councilmember Cunniff replied he would be willing to examine language changes prior to Second Reading. Councilmember Overbeck stated the item needs to be moved forward and language can be addressed prior to Second Reading. Mayor Weitkunat stated she is not attempting to stall the item; she wants to craft language that appropriately addresses the egregious problems and protects others. City Attorney Roy suggested Second Reading be pushed out a month rather than two weeks. Councilmember Troxell stated he would like both Phase Two and this Ordinance to be publically vetted during that time. Councilmembers Cunniff and Overbeck stated they would accept October 15 for Second Reading. 31 of 402 September 17, 2013 303 The vote on the motion, as amended, was as follows: Yeas: Weitkunat, Overbeck, Cunniff and Poppaw. Nays: Troxell. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 129, 2013, on First Reading. Yeas: Overbeck, Cunniff, Poppaw, Troxell and Weitkunat. Nays: none. THE MOTION CARRIED. Other Business Items Relating to the Larimer County Flood of 2013, Adopted The following is the staff memorandum for this item. “EXECUTIVE SUMMARY A. Resolution 2013-080 Extending the State of Local Emergency Declared by the City Manager. B. Resolution 2013-081 Authorizing the City Manager to Enter Into Mutual Aid Agreements with Other Local Governments in Response to the Larimer County Flood of 2013. On Friday, September 13, 2013, the President of the United States and the Governor’s office declared a disaster area for Northern Colorado due to the extensive flash flooding and river flooding along the Front Range and Northern Colorado region. A local emergency proclamation was then signed by City Manager Darin Atteberry on September 13, 2013, and sent to the Governor’s office. The City proclamation was based on the fact that Fort Collins suffered and was threatened with serious peril to the safety of people and property within the City limits due to the “Larimer County Flood of 2013.” City Council is asked to approve the extension of the proclamation of local emergency until such time as the City Manager determines it is no longer necessary. The “Larimer County Flood of 2013” has severely affected several neighboring communities including Larimer County, Estes Park, Longmont and Loveland. These communities need aid and assistance to respond and recover from the impacts of the flood and the City is in a position to provide some of the requested resources. To expedite the City’s response, City Council is asked to authorize the City Manager to enter into mutual aid agreements for short-term aid and assistance. 32 of 402 September 17, 2013 304 BACKGROUND / DISCUSSION Resolution 2013-080: Extending the Proclamation of Local Emergency The flood “Larimer County Flood of 2013” began on September 12. Evacuations in certain areas of the City such as Andersonville, Alta Vista and Buckingham neighborhoods were ordered along with numerous road and bridge closures. On September 13, 2013 the City Manager, as Director of the City’s Office of Emergency Management, declared the existence of a local emergency in accordance with Section 2-671 of the City Code. As the flood waters recede and the response phase turns to the assessment and recovery phase, the existence of the local emergency continues. The most immediate focus of this phase includes extensive assessment of the City’s infrastructure and local facilities. Some examples include: • Assessment of critical infrastructure such as our raw water pipelines, storm water infrastructure, buildings, and the City’s flood warning system review (damage has already been observed at the Lincoln Avenue gauge) • Assessment of the City’s bridges (the water level remains too high to fully inspect footings) • Assessment of our underground power facilities • Assessment of property and roads at Meadow Spring Ranch. Review and assessment of the entire Poudre floodplain and the River bank must be conducted to assess the impacts of the flood before any work can be performed in the River or within the floodplain. We have damage along the Poudre Trail. The worst section is between Prospect Ponds and the Environmental Learning Center with bank erosion and the trail overhanging the bank. Fallen trees and debris are strewn over 11 miles of the Poudre Trail. There is also structural trail damage under some underpasses and erosion and scouring in areas elsewhere. Debris management will continue to be a significant issue as the water level decreases and staff determines what remains in the Poudre River basin and the flood prone areas. The flood occurred in the midst of the ongoing recovery efforts of last year’s High Park Fire. Teams will begin to assess the mulch this week. While the High Park Fire is a separate event, it has substantially stretched our resources and compounded our challenges to recover from the extensive impacts of that disaster. Resolution 2013-080 is being presented for City Council’s consideration. Section 2-671(a)(1) of the City Code states that a local emergency shall not be continued or renewed for a period in excess of seven days, except by or with the consent of the City Council. In order to allow sufficient time for a transition from the emergency response phase to a thorough assessment and determination of the status of critical infrastructure, it is necessary that the proclamation of local emergency remain in place. Therefore, this Resolution extends the proclamation of local emergency until such time as the City Manager determines it is no longer necessary. 33 of 402 September 17, 2013 305 The City Manager will notify the Council, in writing, that the local emergency is ended. Resolution 2013-081: Authorizing Mutual Aid Actions and Agreements The “Larimer County Flood of 2013” has severely affected several neighboring communities including Larimer County, Estes Park, Longmont and Loveland. These communities need aid and assistance in the form of resources and services to respond and recover from the impacts of the flood. During critical phases of the emergency, it is important that neighboring communities work together to protect lives and property. It underscores the concepts of partner communities helping one another during emergencies as well as “whole community” that are emphasized by the Federal Emergency Management Agency (FEMA). In the spirit of cooperation and mutual assistance, the City wants to respond quickly. To do that, the City Council is asked to authorize the City Manager to enter into mutual aid agreements with other governmental entities for short-term aid and assistance.” Councilmember Poppaw made a motion, seconded by Councilmember Overbeck, to adopt Resolution 2013-080. Yeas: Cunniff, Poppaw, Troxell, Weitkunat and Overbeck. Nays: none. THE MOTION CARRIED. Councilmember Poppaw made a motion, seconded by Councilmember Troxell, to adopt Resolution 2013-081. Yeas: Cunniff, Poppaw, Troxell, Weitkunat and Overbeck. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 9:59 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 34 of 402 Agenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Mike Beckstead, Chief Financial Officer Jason Licon, Airport Director SUBJECT First Reading of Ordinance No. 138, 2013, Authorizing the Appropriation of 2014 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. EXECUTIVE SUMMARY The 2014 annual operating budget for the Airport totals $783,750, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 from each City), and interest earnings. As in 2013, this amount for each City is $92,500 greater than the prior years’ contributions of $85,000. For the City of Fort Collins, the original $85,000 is funded from General Fund ongoing revenue, while the one-time increase of $92,500 will be funded from General Fund reserves. This Ordinance authorizes the City of Loveland to appropriate the City of Fort Collins contribution, which is a 50% share of the 2014 Airport budget and totals $391,875. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $757,480, for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2014 Airport capital funds, totaling $1,514,960, will be used to complete major Airport improvements, such as the acquisition of an Aircraft Rescue and Fire Fighting apparatus, and the construction of a snow removal equipment storage facility. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 1963, the City of Fort Collins and the City of Loveland agreed to establish a regional aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport, located approximately 16 miles southeast of downtown Fort Collins, just west of Interstate 25 on Earhart Road. The Airport is operated as a joint venture between the City of Fort Collins and the City of Loveland, with each City retaining a 50% ownership interest, sharing equally in policy-making and management, and with each assuming responsibility for 50% of the capital and operating costs associated with the Airport. The Airport’s mission is to provide a safe and efficient air transportation airport facility to the general public and aviation community by providing airport facilities that meet Federal Aviation Administration (FAA) safety standards and to implement a plan that ensures the efficient development of the Airport to meet the needs of the Fort Collins and Loveland communities. Airport revenues cover operating costs and capital projects. Each City contributes equal funding for Airport operating and capital costs. Airport development and improvement funds are also received, for eligible projects, from the FAA and the Colorado Department of Transportation, Division of Aeronautics. 35 of 402 Agenda Item 7 Item # 7 Page 2 The annual operating costs for 2014 for the Airport are $783,750, and the City of Fort Collins contribution is $391,875. In addition, the Airport Manager is recommending additional capital expenditures for 2014, for which the Manager has identified the following funding sources: FAA Entitlement Grant $1,000,000 State Grant 414,960 Airport Revenues 100,000 Total $1,514,960 The additional capital expenditures will be used to complete major Airport improvement projects, such as the acquisition of an Aircraft Rescue and Fire Fighting apparatus, and the construction of a snow removal equipment storage facility estimated at $1,514,960. Thus, the City of Fort Collins appropriation for the capital expenditures identified above is $757,480 (50% of the total). The Fort Collins - Loveland Airport Steering Committee, the Mayors and City Managers from each City, has reviewed and approved these recommendations for the 2014 Airport operational and capital improvement budget at their regularly scheduled meeting on September 19, 2013. FINANCIAL / ECONOMIC IMPACT This Ordinance appropriates the City’s 50% share ($1,149,355) of the annual appropriation for fiscal year 2014 for the Fort Collins-Loveland Municipal Airport budget. The City of Loveland manages the Airport’s budget and finances; however, since the City of Fort Collins owns 50% of the Airport, it is necessary for the City to appropriate its 50% portion of the Airport operating budget and capital improvement funds. 36 of 402 - 1 - ORDINANCE NO. 138, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF 2014 FISCAL YEAR OPERATING AND CAPITAL IMPROVEMENT FUNDS FOR THE FORT COLLINS-LOVELAND MUNICIPAL AIRPORT WHEREAS, in 1963, the City of Fort Collins and the City of Loveland (the “Cities”) agreed to establish a regional general aviation facility and became owners and operators of the Fort Collins-Loveland Municipal Airport (the “Airport”); and WHEREAS, the Airport is operated as a joint venture between the Cities, with each city retaining a 50% ownership interest, sharing equally in policy-making and management, and each assuming responsibility for 50% of the Airport’s capital and operating costs; and WHEREAS, in accordance with the Intergovernmental Agreement, dated May 16, 2000, between the Cities for joint operation of the Airport (the “IGA”), the Airport Manager is responsible for preparing the Airport’s annual operating budget and submitting it to the Cities for their approval; and WHEREAS, under the IGA, the City’s share of existing and unanticipated Airport revenue is to be held and disbursed by the City of Loveland as an agent on behalf of the Cities, since the City of Loveland provides finance and accounting services for the Airport; and WHEREAS, in accordance with Article V, Section 8(b), of the City Charter, any expense or liability entered into by an agent of the City on behalf of the City, shall not be made unless an appropriation for the same has been made by the City Council; and WHEREAS, the Airport Manager has submitted for City Council consideration a 2014 Airport operating budget totaling $783,750, of which the City’s share is $391,875; and WHEREAS, it is the desire of the City Council to authorize the City of Loveland to appropriate the City’s share of the necessary funds for the Airport’s operating costs, totaling $391,875, for the fiscal year beginning January 1, 2014, and ending December 31, 2014; and WHEREAS, the Airport Manager also recommends capital expenditures totaling $1,514,960 to complete major Airport improvement projects in 2014, including acquisition of an Aircraft Rescue and Fire Fighting apparatus, and construction of a snow removal equipment storage facility; and WHEREAS, funding for the 2014 capital improvements has been identified as follows: FAA Entitlement Grant $1,000,000 State Grant 414,960 Airport Revenue 100,000 Total $1,514,960 WHEREAS, the City’s 50% share of the 2014 capital improvement costs is $757,480. 37 of 402 - 2 - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby adopts the 2014 Airport operating budget. Section 2. That the City Council hereby authorizes the appropriation of THREE HUNDRED NINETY-ONE THOUSAND EIGHT HUNDRED SEVENTY-FIVE DOLLARS ($391,875) to be expended to defray the 2014 operating costs of the Fort Collins-Loveland Municipal Airport. Section 3. That the City Council hereby authorizes the appropriation of SEVEN HUNDRED FIFTY-SEVEN THOUSAND FOUR HUNDRED EIGHTY DOLLARS ($757,480) to be used for 2014 capital improvements at the Fort Collins-Loveland Municipal Airport. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 38 of 402 Agenda Item 8 Item # 8 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Jennifer Hensley, Finance Coordinator Matt Robenalt, Executive Director SUBJECT Items Relating to the 2014 Downtown Development Authority Budget. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 139, 2013, Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2014 and Fixing the Mill Levy For the Downtown Development Authority for Fiscal Year 2014. B. First Reading of Ordinance No. 140, 2013, Appropriating Proceeds from the Issuance of City of Fort Collins Downtown Development Authority Subordinate Tax Increment Bond, Series 2013A, for the Purpose of Making Certain Capital Improvements Within the Downtown Area of Fort Collins. The Annual Appropriation Ordinance is presented for First Reading. Ordinance, No. 139, 2013 sets the Downtown Development Authority (DDA) 2014 Operations and Maintenance Budget amount of $764,404 to be appropriated for fiscal year 2014 for the administrative operations budget, appropriates the 2014 Line of Credit Draw in the amount of $1,000,000, sets the amount of $3,197,101 for debt service payments to be appropriated for fiscal year 2014, and sets the 2014 Mill Levy for the Fort Collins DDA at five (5) mills (unchanged since tax year 2002). The approved Budget will become the Downtown Development Authority’s financial plan for 2014. Ordinance No. 140, 2013 appropriates bond proceeds in the amount of $6,050,000. STAFF RECOMMENDATION The Downtown Development Authority Board of Directors and staff recommend adoption of these Ordinances on First Reading. BACKGROUND / DISCUSSION The Downtown Development Authority was created in 1981 with the statutory purpose of planning and implementing projects and programs within the boundaries of the DDA. By state statute, the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the Authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the state statute and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. 39 of 402 Agenda Item 8 Item # 8 Page 2 FINANCIAL / ECONOMIC IMPACT The Fort Collins Downtown Development Authority is requesting approval of the DDA Operations and Maintenance Budget for fiscal year 2014 in the amount of $764,404. It is requesting appropriation of up to $1,000,000 for the 2014 Line of Credit draw. It is also requesting approval of the DDA debt payment commitments in the amount of $3,197,101 for 2014 obligations. Uses: Personnel Services $439,212 Contractual Professional Services 281,955 Purchased Supplies and Commodities 24,593 Other 18,644 Total $764,404 The 2014 Line of Credit draw, whose debt service payment will be made from the debt service fund, is projected to fund up to $1,000,000. Uses: Museum of Discovery - 2014 Payment $500,000 Future Façade Public/Private Investments 452,089 Fees: Project Management and Bank Fees 47,911 $1,000,000 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2014. Uses: Debt Payment: 2014 $3,197,101 The DDA Special Fund is projected to have the bond proceeds necessary to fund the Woodward Public Improvement City Capital Project Fund in fiscal year 2013. Uses: Fund City Capital Project Fund $6,050,000 BOARD / COMMISSION RECOMMENDATION At its September 12, 2013 meeting, the Downtown Development Authority Board of Directors adopted its proposed budget for 2014 totaling $4,961,505 and determined the mill levy necessary to provide for payment of administrative costs incurred by the DDA. Also, the Board adopted Resolutions recommending appropriation of bond proceeds. Resolutions 2013-12 through 2013-16 (Attachments 2- 6) encompass all passed items. ATTACHMENTS 1. DDA Boundary Map 2. Resolution 2013-12 3. Resolution 2013-13 4. Resolution 2013-14 5. Resolution 2013-15 6. Resolution 2013-16 40 of 402 Cache La Poudre River E VINE DR RIVERSIDE AVE SMITH ST E ELIZABETH ST S MASON ST S LEMAY AVE MATHEWS ST N COLLEGE AVE LOCUST ST WHEDBEE ST PETERSON ST E LINCOLN AVE E MYRTLE ST LINDEN ST STOVER ST REMINGTON ST S COLLEGE AVE 12TH ST E PLUM ST 9TH ST MAPLE ST S HOWES ST W OAK ST E OLIVE ST CHERRY ST E OAK ST W OLIVE ST BUCKINGHAM ST S MELDRUM ST E MULBERRY ST HEMLOCK ST WILLOW ST W LAUREL ST S WHITCOMB ST LAPORTE AVE W MYRTLE ST 1ST ST N LEMAY AVE 3RD ST 2ND ST REDWOOD ST N SHERWOOD ST N WHITCOMB ST W MAGNOLIA ST CAJETAN ST W MOUNTAIN AVE 10TH ST COWAN ST N MASON ST OSIANDER ST JEFFERSON ST JEROME ST MAIN ST COLORADO ST PASCAL ST OVAL DR WALNUT ST E MOUNTAIN AVE S SHERWOOD ST ATTACHMENT 2 42 of 402 43 of 402 ATTACHMENT 3 44 of 402 ATTACHMENT 4 45 of 402 ATTACHMENT 5 46 of 402 47 of 402 ATTACHMENT 6 48 of 402 49 of 402 - 1 - ORDINANCE NO. 139, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE FOR THE FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2014 AND FIXING THE MILL LEVY FOR THE DOWNTOWN DEVELOPMENT AUTHORITY FOR FISCAL YEAR 2014 WHEREAS, the Fort Collins Downtown Development Authority (the “DDA”) has been duly organized in accordance with the Colorado Revised Statutes (C.R.S) 31-25-804, 1973 as amended; and WHEREAS, on September 12, 2013, the DDA Board of Directors (the “DDA Board”), acting under the provisions of C.R.S. 31-25-816, 1973, as amended, adopted a budget for the fiscal year beginning January 1, 2014 and ending December 31, 2014; and WHEREAS, the DDA budget included appropriation of the 2014 annual draw on a revolving line of credit (the “ 2014 Line of Credit”) established under Resolution 2012-02, to finance DDA projects and programs in accordance with its approved Plan of Development, the Downtown Plan, and the Downtown Strategic Plan; and WHEREAS, the DDA budget also determined the mill levy necessary to provide for payment during fiscal year 2014 of properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, it is the desire of the City Council to appropriate the sum of FOUR MILLION, NINE HUNDRED SIXTY ONE THOUSAND, FIVE HUNDRED FIVE DOLLARS ($4,961,505) in the DDA Operation and Maintenance Fund and the Debt Service Fund for the fiscal year beginning January 1, 2014 and ending December 31, 2014, to be used as follows: DDA Operations & Maintenance $ 764,404 2013 Revolving Line of Credit Draw 1,000,000 DDA Debt Service Fund 3,197,101 $4,961,505 WHEREAS, the DDA Board has recommended to the Council a mill levy of five (5) mills upon each dollar of assessed valuation on all taxable property within the DDA boundaries (the “DDA District”), such levy representing the amount of taxes for DDA purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized operational and maintenance expenditures to be incurred by the DDA; and WHEREAS, Section 39-5-128(1), C.R.S., requires certification of any tax levy to the Board of County Commissioners of Larimer County no later than December 15, 2013. 50 of 402 - 2 - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That there is hereby appropriated for expenditure from the Downtown Development Authority Operations and Maintenance Fund the sum of SEVEN HUNDRED SIXTY FOUR THOUSAND, FOUR HUNDRED AND FOUR DOLLARS ($764,404), to be expended for the authorized purposes of the DDA. Section 2. That there is hereby appropriated for expenditure from the Downtown Development Authority 2014 Line of Credit draw the sum of up to ONE MILLION DOLLARS ($1,000,000), to be used for the authorized purposes of the DDA. Section 3. That there is hereby appropriated for expenditure from the Downtown Development Authority Debt Service Fund the sum of THREE MILLION, ONE HUNDRED NINTY-SEVEN THOUSAND, ONE HUNDRED AND ONE DOLLARS ($3,197,101), for payment of debt service on previously issued and outstanding bonds, to pay the City’s investment service charge, for payment on the 2014 Line of Credit draw, and to be used to cover the DDA’s one-third share of payment on the Civic Center Parking Structure. Section 4. That the 2014 mill levy rate for the taxation upon each dollar of the assessed valuation of all taxable property within the DDA District as of December 31, 2013 shall be five (5) mills, which levy represents the amount of taxes for the District purposes to provide for payment during the aforementioned fiscal year of properly authorized expenditures to be incurred by the DDA. Said mill levy shall be certified to the County Assessor and the Board of County Commissioners of Larimer County, Colorado, by the City Clerk as provided by law. Introduced, considered favorably on first reading and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ___________________________________ Mayor ATTEST: _________________________________ City Clerk 51 of 402 - 3 - Passed and adopted on final reading this 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: __________________________________ City Clerk 52 of 402 - 1 - ORDINANCE NO. 140, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PROCEEDS FROM THE ISSUANCE OF CITY OF FORT COLLINS DOWNTOWN DEVELOPMENT AUTHORITY SUBORDINATE TAX INCREMENT REVENUE BOND, SERIES 2013A FOR THE PURPOSE OF MAKING CERTAIN CAPITAL IMPROVEMENTS WITHIN THE DOWNTOWN AREA OF FORT COLLINS WHEREAS, on April 21, 1981, the City of Fort Collins, Colorado, adopted Ordinance No. 46, 1981, establishing the Fort Collins, Colorado, Downtown Development Authority; and WHEREAS, the Downtown Development Authority’s Plan of Development was approved by the City on September 8, 1981, and established the purpose of the Authority and the types of projects in which the Authority would participate; and WHEREAS, on June 1, 1982, a special election was held pursuant to Section 31-25- 807(b) of the Colorado Revised Statutes approving the issuance by the City of up to $25,000,000 in tax increment obligations to finance certain projects of the Downtown Development Authority; and WHEREAS, on November 7, 2006, another election was held and electors approved the issuance by the City of up to $150,000,000 in tax increment obligations to finance the costs of various development projects of the Downtown Development Authority; and WHEREAS, the City has heretofore issued and sold bonds or other indebtedness in the aggregate principal amount of $24,697,980, pursuant to the authority conferred at the 2006 election; and WHEREAS, there is sufficient remaining bonding authorization available to fund additional projects in the downtown area; and WHEREAS, through the adoption of Ordinance No. 055, 2013, of the Council of the City of Fort Collins, the Council authorized the issuance of the City of Fort Collins Downtown Development Authority Subordinate Tax Increment Revenue Bond, Series 2013A (the “Bond”), in the principal amount $6,050,000; and WHEREAS, the issuance of the Bond and the appropriation of the proceeds thereof are necessary to complete the construction of certain capital improvements in the downtown area of the City; and WHEREAS, Article V, Section 9, of the Charter of the City of Fort Collins permits the City Council to make supplemental appropriations, in conjunction with all previous appropriations for that fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not 53 of 402 - 2 - 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 Bond proceeds as described herein will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2013. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, contingent upon the final sale and issuance of the Bond, there is hereby appropriated for expenditure from Bond proceeds in the Downtown Development Authority Operating Fund the amount of SIX MILLION FIFTY THOUSAND DOLLARS ($6,050,000), to be used to complete the construction of certain capital improvements in the downtown area of the City, as described more specifically in the attached Exhibit A. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 54 of 402 Bond Proceed Expenditure: Transmission Line Relocation 1,300,000 Right of Way Improvements 1,750,000 Open Space Improvements 3,000,000 6,050,000 Exhibit A 55 of 402 Agenda Item 9 Item #9 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Rachel Rogers, Budget Analyst SUBJECT Second Reading of Ordinance No. 131, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds And Authorizing the Transfer of Appropriated Amounts between Funds or Projects. EXECUTIVE SUMMARY The purpose of this annual Clean-Up Ordinance, unanimously adopted on First Reading on October 1, 2013, is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2013 budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operational expenses. BACKGROUND / DISCUSSION In addition to the Clean-Up items approved on First Reading, two additional items have been identified that need to be brought forth for approval for Second Reading. Both items are required to receive grant funding for the Fort Collins Convention and Visitors Bureau (FCCVB) and the City’s Restorative Justice Program as per the following: 1. 2013-2014 Welcome Center Grant ($87,764): The FCCVB has been awarded an $87,764 grant from the Colorado Welcome Center through the State of Colorado. These funds will be disbursed by the State of Colorado and directed through the City of Fort Collins, pursuant to State of Colorado requirements, then paid to the FCCVB. The grant period will run from July 1, 2013 through June 30, 2014. 2. The Restorative Justice Program ($7,440): The Colorado Division of Criminal Justice has awarded the City of Fort Collins Community Development and Neighborhood Services (CDNS) a grant in the amount of $45,000 for salaries associated with the continued operation of the Restorative Justice Program. A local match of $15,000 is required for this grant to which $7,440 will come from the CDNS operating budget and the remaining $7,560 from in-kind services. This clean-up request will transfer $7,440 from the 2013 CDNS operating budget to the Restorative Justice grant project. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 1, 2013 2. Ordinance No. 131, 2013 56 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Rachel Rogers Lawrence Pollack AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT First Reading of Ordinance No. 131, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds And Authorizing the Transfer of Appropriated Amounts between Funds or Projects. EXECUTIVE SUMMARY The annual Clean-Up Ordinance allows for the appropriation of expenses related to unanticipated revenue, grants and unforeseen costs that had not previously been budgeted. The purpose of this annual Clean-Up Ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2013 budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operational expenses. The table below is a summary of the expenses in each fund that make up the increase in requested appropriations. Also included are intra-fund transfers for Art in Public Places (APP) and previously appropriated matching grant funds from operations now going to specific projects totaling $70,292. These actions do not increase total appropriations, but per the City Charter require City Council approval to make the transfer. This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide, by ordinance, for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. Additionally, it authorizes the City Council to transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City Manager, provided that the purpose for which the transferred funds are to be expended remains unchanged; the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. 57 of 402 COPY COPY COPY October 1, 2013 -2- ITEM 9 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION A. GENERAL FUND 1. Fort Collins Police Services (FCPS) has received revenue from various sources which need to be appropriated to cover the related expenditures. A list of these items follows: a. $21,250 - Chemical Test Fees & Driving w/o Insurance Penalty Assessments - Pursuant to C.R.S. 16-11- 501(2)(j), the costs of chemical tests (blood/breath tests) shall be reimbursed directly by the defendant to the law enforcement agency which administered and paid for the test. The driving without insurance law provides revenue to the law enforcement agency issuing the citation. It is projected that by the end of 2013 $21,250 will have been collected by the courts and passed on to FCPS under these provisions. This revenue is used to directly offset the actual cost of blood/breath testing for DUI and DUID (driving under the influence of drugs). b. $6,769 - DEA Cooperative Agreement Reimbursement for Task Force Vehicle Lease - Fort Collins Police and the Northern Colorado Drug Task Force entered into an agreement to have a task force investigator dually assigned to a DEA team in the Denver area. The DEA reimburses FCPS for the lease payment of that investigators vehicle. c. $33,260 - DUI Enforcement Grants - FCPS has received two grant awards from the State of Colorado for DUI enforcement overtime; the Law Enforcement Assistance Fund (LEAF Grant) and the High Visibility Enforcement Grant. d. $2,998 - Miscellaneous Vendor Refunds and Proceeds from Recycling Brass - Police Services received refunds and proceeds from miscellaneous sources for the reimbursement of dry cleaning, training, and the recycling proceeds from brass ammunition casing. The reimbursement of funds goes to offset the cost of the original items/services purchased and subsequently returned. The recycling proceeds are used to purchase more ammunition. e. $1,006 - Plasma rope reimbursement for the Armored SWAT Vehicle - The North East All Hazards Region (NEAHR) purchased plasma ropes to mount to the armored SWAT vehicle. NEAHR administers the Homeland Security funding for the regional group Fort Collins is part of. f. $103,025 - Police Overtime Reimbursement - In 2013, Police Services received reimbursement from various entities for overtime expenses. The different activities include: CSU football traffic control, DEA investigations, Tour De Fat, Brew Fest, New West Fest, regional auto theft case investigations, Poudre School District school board meetings, and noise ordinance violation workshops. g. $35,188 - Police Report and Special Event Permit Fees - Police reports purchased by the public and insurance agencies generate revenue of approximately $7.50 a report. Special event permits are required if the public wishes to hold an event that will interfere with vehicular or pedestrian traffic or takes place on public property. Special event permits cost $50 a piece. In 2013 it is estimated $35,800 will be collected from these two sources. The revenue from this fee is used to subsidize the cost of copy machine rental. h. $36,803 - Poudre Valley Hospital Contract Renegotiation - In the beginning of 2013, Fort Collins Police Services renegotiated the contract for providing dispatching services for Poudre Valley Health Systems. This resulted in more revenue than was originally projected and will be utilized to assist with the cost of the dispatch console replacement project. i. $30,800 - Sale of Retired Police Radios - In early 2013, Police Services replaced portable and mobile radios. Other City and EMS entities have purchased the old radios at $500 each. The revenue is being used to offset the cost of the replacement. 58 of 402 COPY COPY COPY October 1, 2013 -3- ITEM 9 j. $7,688 - Seatbelt Enforcement Grants - The State of Colorado awarded FCPS a grant for officers to work seatbelt enforcement on overtime. k. $3,250 - SWAT Training Fees - In 2013, the Fort Collins Police SWAT team hosted training for other agencies and charged attendees a fee. By hosting the training FCPS, team members don't have to travel to attend. The registration fees are used to help cover the cost of the materials for the class. l. $40,475 - Vehicle Insurance Claims Reimbursements- In 2013, Police Vehicles were damaged in motor vehicle collisions and by severe weather. The cost recovered by insurance claims is used to offset the cost of repair. m. $500 - Victims Assistance Training Scholarship - In 2013, the Victim Assistance Law Enforcement fund gave FCPS $500 for employees to attend training. This amount was awarded after the initial grant period and needs to be appropriated to the 2012 grant year to balance the budget to expenses. FROM: Unanticipated Revenue (Miscellaneous Police) $281,564 FROM: Unanticipated Revenue (DUI Enforcement Grants) $ 33,260 FROM: Unanticipated Revenue (Seatbelt Grant) $ 7,688 FROM: Unanticipated Revenue (Victims Assistance Grant) $ 500 FOR: Police Services $281,564 FOR: DUI Enforcement Grant $ 33,260 FOR: Seatbelt Grant $ 7,688 FOR: Victims Assistance Grant $ 500 2.. The Community Development & Neighborhood Services department has received revenue from various sources which needs to be appropriated to cover the related expenditures. A listing of these items follows: a. $30,000 - Avery Building Perpetual Easement- Request for an appropriation of $30,000 in Certified Local Government (CLG) funding to meet State requirements of having a perpetual easement on projects that exceed $100,000 as was the case in the Avery Block exterior restoration and remodel project. This $30,000 gives the City resources to perpetually maintain and enforce easement requirements. The money has been received from the State and simply needs to be appropriated. b. $44,916 - Building Inspection Vehicles - Request for an appropriation to cover the cost of two new trucks purchased for the new building inspector positions approved as part of the 2013-2014 BFO process. Funds are requested from development review revenues which are approximately $800,000 over projections in 2013 as of July 31. c. $13,980 - Feeder Supply Building Grant - Request for an appropriation of $6,990 in Certified Local Government (CLG) funding, $3,495 of matching grant funds from the owner and $3,495 of matching grant funds from existing City of Fort Collins appropriations for the 359 Linden Street - Feeder Supply Building grant. The $3,495 city match was previously appropriated, but per the City Charter the transfer of these funds to a grant project must be authorized by City Council. The grant awarded authorized a structural assessment and recommendations regarding re-use of this property. d. $43,530 - Old Town Historic District Guidelines Grant - Request for an appropriation of $21,765 in Certified Local Government (CLG) funding and $21,765 of matching grant funds from existing City of Fort Collins appropriations for the Old Town Historic District Guidelines grant. The $21,765 city match was previously appropriated, but per the City Charter the transfer of these funds to a grant project must be authorized by City Council. The grant awarded authorizes an update of Old Town Historic District design guidelines and related standards. e. $671 - Restorative Justice Fees - It is a requirement of the Colorado Division of Criminal Justice that 90% of income generated as part of Juvenile Accountability Block Grant efforts be used to support related activities. While the majority of the Restorative Justice program is funded by grants, the program also collects fees from participants to off-set the costs to run the program. This appropriation is necessary to meet this requirement and helps make up any differences between grant funding and program expenses. Not fulfilling this requirement could put this grant funding, and potential future awards at risk. 59 of 402 COPY COPY COPY October 1, 2013 -4- ITEM 9 f. $7,000 - State Tax Credits - Request for an appropriation of $7,000 in Certified Local Government (CLG) funding to the City's State Tax Credits program account. The money was received from the State for staff time to administer the Avery Block Grant. As required by C.R.S. § 39 22 514(11)(a), the money Historic Preservation receives for administering the State Tax Credits for Historic Preservation (STC) must be kept in a separate "preservation fund" for use in administering the STC program and to provide information and education to the community within the context of historic preservation. The money has been received from the State and simply needs to be appropriated. g. $13,500 - Technology Improvements for Boards & Commissions - Request for an appropriation to cover cost of iPads for Planning & Zoning Board members, Landmark Preservation Commission members and related staff. It is estimated that moving away from paper packets will result in a savings of approximately $2,200 per month based on the reduced time needed for staff to make copies, as well as reduced copy charges. This also meets City goals on becoming more sustainable by eliminating paper packets. Funds are requested from development review revenues which are approximately $800,000 over projections in 2013 as of the end of July. h. $48,228 - William Stover House Grant - Request for an appropriation of $24,114 in Certified Local Government (CLG) funding and $24,114 in matching grant funds from the owner for the William Stover House grant. The grant awarded authorizes exterior rehabilitation efforts at this property located at 503 Remington Street. The total budget amount of $48,228 needs to be appropriated. FROM: Unanticipated Revenue (Miscellaneous CDNS) $86,696 FROM: Unanticipated Revenue (State CLG Grants) $89,869 FROM: Transfer from Existing Operating Budgets $25,260 FOR: Avery Building (CLG Grant) $30,000 FOR: Building Inspection Vehicles $44,916 FOR: Feeder Supply Building (CLG Grant) $13,980 FOR: Old Town Historic District (CLG Grant) $43,530 FOR: Restorative Justice Fees $ 671 FOR: State Tax Credit Program (CLG Grant) $ 7,000 FOR: Technology Improvements for boards and commissions $13,500 FOR: William Stover House (CLG Grant) $48,228 3. Cable 14 requests the appropriation of $40,695 from prior year General Fund reserves (Public Educational Government) to FCPAN’s (Fort Collins Public Access Network) equipment budget. These funds are restricted by the Federal Government and can only be used for capital equipment for entities such as FCPAN and will be used for the purchases of television equipment needed to create a TV studio space in the Carnegie building. FROM: Prior Year Reserves (PEG Reserve) $ 40,695 FOR: Public Access Network $ 40,695 4. The Gardens on Spring Creek would like to appropriate unanticipated revenues generated in 2013 beyond the original revenue appropriated during the budget process. Revenues will be used to pay for additional staffing needs and vegetative supplies for the holiday season. FROM: Unanticipated Revenue $20,000 FOR: The Gardens on Spring Creek $20,000 5. The Gardens on Spring Creek is requesting the appropriation of $150,000 from prior year reserves in the General Fund (Horticulture) for the design and construction of the Undaunted Garden. These monies were raised specifically for construction of the Undaunted Garden. FROM: Prior Year Reserves (Horticulture Reserve) $150,000 FOR: Transfer to Capital Projects Fund Gardens Capital Project $150,000 - Undaunted Garden 6. The City Clerk’s Office requests the appropriation of $30,000 to fund a special election this November, to be held in conjunction with the Larimer County Coordinated Election, for the purpose of submitting to the voters 60 of 402 COPY COPY COPY October 1, 2013 -5- ITEM 9 a citizen-initiated ordinance to place a five-year moratorium on the use of hydraulic fracturing within the ity of Fort Collins or under its jurisdiction to extract oil, gas, or other hydrocarbons and to store and dispose of its waste products. This election is unbudgeted. Larimer County’s estimate of the City’s share of election costs is $25,272. Additional costs will be incurred for publication of legal notices and campaign finance reports. FROM: Prior Year Reserves (General Fund) $30,000 FOR: Elections Expenses $30,000 7. The Parks department is requesting the appropriation of $25,000 that was donated by University of Colorado Health to help fund the 2013 4th of July celebration. FROM: Unanticipated Revenue (Donations) $25,000 FOR: 4th of July Expenses $25,000 8. Forestry is requesting the appropriation of $15,000 from prior year reserves in the General Fund (Tree Donations). The Forestry Division recycles wood by grinding it into mulch. Due to the increased volume of wood generated in 2013 there is a need to do an additional grind this year. These funds will be applied toward the cost to contractually grind wood at the Forestry wood lot. The mulch product generated through this program is used on City projects and provided to the public at two self-loading locations. FROM: Prior Year Reserves (Tree Donation Reserve) $15,000 FOR: Forestry Expenses $15,000 9. Environmental Services requests the appropriation of $3,367 generated from the sale of radon test kits. The kits are sold at cost as part of its program to reduce lung-cancer risk from in-home radon exposure. This appropriation would recover kit-sales revenue for the purpose of restocking radon test kits. FROM: Unanticipated Revenue $3,367 FOR: Radon Program $3,367 10. The Fort Collins Convention and Visitors Bureau (FCCVB) has been awarded a $77,291 grant from the Colorado Welcome Center through the State of Colorado. These funds will be disbursed by the State of Colorado and directed through the City of Fort Collins, pursuant to State of Colorado requirements, then paid to the FCCVB. The grant period will run from July 1, 2012 through June 30, 2013. FROM: Unanticipated Revenue (Grants) $77,291 FOR: Fort Collins Convention and Visitors Bureau $77,291 11. The Social Sustainability department requests the appropriation of $28,500 from prior year reserves in the General Fund (Land Bank Reserve) to cover expenses related to land bank property maintenance needs for 2013. As expenses vary from year-to-year, funding is requested annually mid-year to cover these costs. Expenses for 2013 include hydrant repairs, general maintenance of properties, raw water expenses, and a sewer replacement/connection for 2313 Ketcher. FROM: Prior Year Reserves (Land Bank Reserve) $28,500 FOR: Land Bank Expenses $28,500 12. In accordance with Chapter 25, Article II, Division 5, Manufacturing Equipment Use Tax Rebate, $187,007 was paid out in February 2013 for the 2011 rebate program. The rebate program was established to encourage investment in new manufacturing equipment by local manufacturing firms. Vendors have until December 31st of the following year to file for the rebate. This item appropriates the use tax funds to cover the payment of the rebates. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $187,007 FOR: Manufacturing Use Tax Rebates $187,007 61 of 402 COPY COPY COPY October 1, 2013 -6- ITEM 9 B. CAPITAL EXPANSION FUND 1. This item appropriates administrative fee revenue earned in the Capital Expansion Fund for transfer to the General Fund. The 2013 Budget appropriated $36,000 in administrative fees and through August over $58,000 has actually been received. Development review revenues are projected to be higher than projected in the 2013 budget. So, staff is requesting the appropriation of an additional $60,000 of unanticipated revenue so the full amount of administrative fees received can be transferred to the General Fund. FROM: Unanticipated Revenue (Administrative Fees) $60,000 FOR: Transfer to the General Fund $60,000 C. CAPITAL PROJECTS FUND 1. One of the monitors installed at the Veterans Plaza at Spring Creek Community Park was damaged by the high particulates in the air during the High Park fire. The particulates caused the venting system to fail and the monitor over-heated. This was not covered under warranty and therefore an insurance claim was filed. Park Planning would like to appropriate the claim funds received into the Spring Canyon - Veterans Plaza capital project in order to replace the monitor. FROM: Unanticipated Revenue (Insurance Claim) $14,607 FOR: Spring Canyon-Veterans Plaza Project $14,607 2. This is related to Item A.5. which requested the appropriation of $150,000 from the Gardens reserve in the General Fund for transfer to the Capital Projects Fund - Gardens Capital Project. This item appropriates the same $150,000 in the Capital Projects Fund for the design and construction of the Undaunted Garden as part of the Xeriscape Demonstration Garden. It will be designed by Lauren Springer Ogden, a nationally known landscape designer who lives in Fort Collins. She is best known for her book, The Undaunted Garden, hence the name of the garden. These monies were raised specifically for construction of the Undaunted Garden. FROM: Unanticipated Revenue (Transfer from General Fund) $150,000 FOR: Gardens Capital Project $150,000 3. Based upon the approved Traffic Impact Study, the "Crowne on Timberline" development project has triggered the need for a dedicated southbound right turn lane at Kechter and Timberline. The City has received the required design and construction fees from the developer so the proposed turn lane can be built in conjunction with an Engineering Capital Project at the same intersection. This request appropriates the private funds in the amount of $76,117 into the "Kechter and Timberline Turn Lane Improvements" capital project. FROM: Unanticipated Revenue (Developer Contribution) $76,117 FOR: Kechter / Timberline Turn Lane Improvements Project $76,117 4. The Linden Street project included improvements in front of the Legacy Senior Residences. The City was reimbursed for the developer portion of the project. This item appropriates the revenue received for these improvements back into the same Capital Project, Pedestrian Plan & ADA Improvements, for other pedestrian improvements. FROM: Unanticipated Revenue (Developer Charges) $43,890 FOR: Pedestrian Plan & ADA Improvements Project $43,890 5. Savings from operating budgets were identified at the end of 2012 in the Transportation Fund and General Fund (PDT Admin/Financial Services); savings were also identified in the Capital Projects Fund and BCC Community Enhancement funds. These savings are requested for appropriation to partially cover charges identified by the FTA as ineligible for reimbursement by the Federal grant for the MAX project. Additional savings will be identified at the end of 2013, if needed, to cover remaining ineligible expenses. FROM: Unanticipated Revenue (Transfers In) $381,945 FOR: MAX Ineligible Project Expenses $381,945 6. This item appropriates funds from the Lincoln Center Support League. The League contributed to the Lincoln 62 of 402 COPY COPY COPY October 1, 2013 -7- ITEM 9 Center Renovation Capital Project to cover unanticipated expenses in the amount of $23,126. FROM: Unanticipated Revenue (Contribution) $23,126 FOR: Lincoln Center Renovation Capital Project $23,126 D. CULTURAL SERVICES AND FACILITIES FUND 1. “Pianos About Town” is a collaborative project between the City of Fort Collins Art in Public Places Program (APP), Bohemian Foundation, and the Downtown Development Authority. In this partnership, APP administers the program which has local artists painting murals on pianos in Old Town Square. These pianos are then rotated around Old Town and other areas of Fort Collins. Funds were received from the Bohemian Foundation in the amount of $28,089. Of this amount $22,089 will fund the APP project and $6,000 will fund the Administration of the program. FROM: Unanticipated Revenue (Bohemian Foundation) $28,089 FOR: Art in Public Places Administration $6,000 FOR: APP Project (Pianos About Town) $22,089 2. The Downtown Development Authority (DDA) has contributed $8,000 to the Art in Public Places Program. These funds are to reimburse the City's APP program for administration costs for the 2012-2013 Pianos About Town Project. FROM: Unanticipated Revenue (DDA) $8,000 FOR: Art in Public Places Administration $8,000 3. This item appropriates the Art in Public Places (APP) revenue for two Capital Projects; the Gardens Project - The Great Lawn ($2,500) and the Natural Resources Research Center Overpass Project ($12,000). Both of these projects were revised on the first reading of the 2013 Annual Budget at about the same time modifications to the Art in Public Places program were finalized. Therefore, the correct APP revenue was not included in the Cultural Services and Facilities Fund Budget for 2013. The funding source for these projects is the Capital Projects Fund. FROM: Unanticipated Revenue (Transfer from Capital Projects) $14,500 FOR: Art in Public Places Administration $3,190 FOR: Art in Public Places Projects $11,310 4. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. At the end of 2012, APP budgets for outstanding encumbrances were carried forward to 2013. These encumbrances were recorded in 2012 using the lapsing APP business units in the Cultural Services & Facilities, Water, Wastewater, and Stormwater Funds. In October of 2012, with Ordinance No. 78, the APP program was modified and the APP project accounts were changed from lapsing to non- lapsing to begin in 2013. So, the 2012 encumbrance budget carried forward to 2013 needs to be moved from the lapsing APP accounts to the "new" non-lapsing APP accounts. The total amount of the encumbrances is $45,032. This request does not increase total appropriations. FROM: APP Operating Expense - Cultural Services & Facilities Fund $27,006 FOR: Art in Public Places Projects - Cultural Services & Facilities Fund $27,006 FROM: APP Operating Expense - Water Fund $10,000 FOR: Art in Public Places Projects - Water Fund $10,000 FROM: APP Operating Expense - Wastewater Fund $ 3,409 FOR: Art in Public Places Projects - Wastewater Fund $ 3,409 FROM: APP Operating Expense - Stormwater Fund $ 4,617 FOR: Art in Public Places Projects - Stormwater Fund $ 4,617 5. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Storm Drainage Fund - Art in Public Places 63 of 402 COPY COPY COPY October 1, 2013 -8- ITEM 9 Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $30,866. FROM: Unanticipated Revenue (Transfer from Stormwater Fund) $30,866 FOR: Art in Public Places Administration $30,866 6. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Light & Power Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $31,424. FROM: Unanticipated Revenue (Transfer from Light & Power Fund) $31,424 FOR: Art in Public Places Administration $31,424 E. EQUIPMENT FUND 1. This item appropriates Equipment Fund reserves, generated from the sale of capital assets in 2012, for 2013 lease purchase payments. Three additional police cars met the criteria for replacement. In order to stay on track replacing vehicles before they reach 100,000 miles, we would like to request using Equipment Fund reserves for these police car purchases. FROM: Prior Year Reserves (Equipment Fund) $60,000 FOR: Equipment Lease Purchase Expenses $60,000 2. This item requests the appropriation of insurance proceeds to be used to purchase a new police car. A 2012 Chevy Caprice police car was totaled in January, 2013. The accident was not the fault of our officer. The insurance proceeds were received this summer and will be used to replace the totaled car. FROM: Unanticipated Revenue (Insurance Proceeds) $30,800 FOR: Equipment Expenses $30,800 F. GENERAL IMPROVEMENT DISTRICT #15 - SKYVIEW FUND 1. Skyview General Improvement District (GID) #15 was created by Larimer County in 1997 and annexed into the City by the Southwest Enclave Annexation in 2009. Larimer County collects the property taxes for this GID and distributes the revenue to the City. A fee is paid to Larimer County Treasurer's Office for this service. This item appropriates property tax revenue to pay the fee. Street improvements have not yet started in this district so no expenses were budgeted in 2013. FROM: Existing Revenue $600 FOR: GID #15 Expenses $600 G GOLF FUND 1. Actual golf revenues are anticipated to be above the original estimate for 2013 by approximately $70,000. The Golf Fund would like to appropriate $30,000 of these additional revenues to cover unanticipated higher expenses for raw water, clubhouse repairs, and irrigation repairs. FROM: Unanticipated Revenue (Greens Fees) $30,000 FOR: Golf Expenses $30,000 H. HOME FUND 1. The HOME Investment Partnership Fund (HOME) grant from HUD was originally reported to the City to be $542,507. During the Spring Competitive Process that amount was approved by City Council for allocation in the fall. When we received the HUD Funding Approval Agreement at the end of September 2012 we discovered the City actually received $810 more in funding than previously reported to us. That additional 64 of 402 COPY COPY COPY October 1, 2013 -9- ITEM 9 amount was allocated in the Fall Competitive Process. This item requests the additional grant appropriation to cover the expenses. FROM: Unanticipated Revenue (HOME Grant) $810 FOR: HOME Grant Expenses $810 I. LIGHT AND POWER FUND 1. Electric Vehicle Charging Stations - The Light and Power Utility received a $25,040 grant from the Colorado Energy Office for the installation of up to four electric vehicle charging stations. Existing appropriations are being used to provide the required 20% match. FROM: Unanticipated Revenue (grant) $25,040 FOR: Electric Vehicle Charging Stations $25,040 2. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Light & Power Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $31,424. FROM: Prior Year Reserves (Light & Power Fund) $31,424 FOR: Transfer to Cultural Services & Facilities Fund for APP $31,424 J. NATURAL AREAS FUND 1. The Bohemian Foundation awarded the Natural Areas Department a $7,000 grant for a post-fire sediment study. The City has collectively committed $19,000 to this project. This request appropriates the Foundation money in the Natural Areas Fund for the study. FROM: Unanticipated Revenue (Grant) $7,000 FOR: Natural Areas Expenses $7,000 2. REI donated $5,000 to support six key public volunteer days: National Public Lands Day, Make a Difference Day, Earth Day/Natural Areas 20th Anniversary, National Trails Day and two Poudre River Cleanups. The donation provided tools, gloves, food, volunteer appreciation gifts and project supplies. Three hundred fifty eight volunteers donated 1,311 hours. FROM: Unanticipated Revenue (Donation) $5,000 FOR: Natural Areas Expenses $5,000 K. SALES AND USE TAX FUND The sales and use tax revenue received in 2012 was higher than anticipated and the existing appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the one quarter cent Building on Basics tax, and to the Natural Areas Fund for the one quarter cent Natural Areas tax. Adjustments to the General Fund, the Keep Fort Collins Great Fund and the Transportation Services Fund are not needed because the tax revenues are recorded directly into those funds. This item appropriates additional funds in the amount of $654,776 from prior year reserves to increase the transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the Building on Basics tax by $327,388, and to increase the transfer to the Natural Areas Fund for the Natural Areas tax by $327,388. FROM: Prior Year Reserves (Sales & Use Tax Fund) $654,776 FOR: Transfer to Capital Projects - Building on Basics $327,388 FOR: Transfer to Natural Areas Fund $327,388 65 of 402 COPY COPY COPY October 1, 2013 -10- ITEM 9 L. STORMWATER FUND 1. The Stormwater Utility acquired Forney property in the West Vine Drainage Basin in 2012. In March 2013 Natural Area purchased a portion of the property from Stormwater for $420,000. This request is to appropriate the revenue received from Natural Resources for future stormwater capital improvements in the West Vine Drainage Basin project. FROM: Unanticipated Revenue (property sale) $420,000 FOR: West Vine Drainage Basin Project $420,000 2. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Storm Drainage Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $30,866. FROM: Prior Year Reserves (Stormwater Fund) $30,866 FOR: Transfer to Cultural Services & Facilities Fund for APP $30,866 M. TRANSPORTATION SERVICES FUND 1. The Denver Foundation awarded a grant from Kaiser Permanente to support Bike to Work Day and the Worksite Challenge for the FC Bikes Program. This item appropriates this unanticipated revenue for these expenses. FROM: Unanticipated Revenue (Contribution) $3,700 FOR: FC Bikes Program $3,700 2. The BNSF Railway has awarded the Safe Routes to School Program $10,000 for program activities in Fort Collins. This funding is from the BNSF Railway Foundation. When the BNSF Railway is participating in community events (such as the Pro Challenge this year), they often choose a local program to make a donation to. FROM: Unanticipated Revenue (Contribution) $10,000 FOR: Safe Routes to School Program $10,000 FINANCIAL / ECONOMIC IMPACTS This Ordinance increases total City 2013 appropriations by $3,249,017. Of that amount, this Ordinance increases General Fund 2013 appropriations by $1,076,437 including use of $451,202 in prior year reserves. Funding for the total City appropriations is $1,412,014 from unanticipated revenue, $1,228,268 from prior year reserves, and $608,735 transferred from other funds. In addition, appropriations in the amount of $70,292 are being transferred from one capital project to another capital project or from an operating budget to a project account. These transfers do not increase overall City appropriations. The table below is a summary of the items requiring appropriation of prior year reserves: 66 of 402 COPY COPY COPY October 1, 2013 -11- ITEM 9 If these transfers and appropriations are not approved, the City will have to reduce budgetary expenditures even though adequate revenue and reimbursements are actually available to cover those expenditures. 67 of 402 ORDINANCE NO. 131, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE IN VARIOUS CITY FUNDS AND AUTHORIZING THE TRANSFER OF APPROPRIATED AMOUNTS BETWEEN FUNDS OR PROJECTS WHEREAS, the City has prior year reserves, excess revenue, and unanticipated revenue available to appropriate; and WHEREAS, in accordance with Article V, Section 8(b) of the City Charter, any expense or liability entered into by an agent of the City, on behalf of the City, shall not be made unless an appropriation therefor shall have been made by the City Council; 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 also 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 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, the City wishes to provide for the expenditures listed below and the City Manager recommends that these expenditures be made. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following funds are hereby authorized for transfer and appropriated for expenditure for the purposes stated below: A. GENERAL FUND 1. APP. FROM: Unanticipated Revenue (Miscellaneous Police) $281,564 APP. FROM: Unanticipated Revenue (DUI Enforcement Grants) $33,260 APP. FROM: Unanticipated Revenue (Seatbelt Grant) $7,688 APP. FROM: Unanticipated Revenue (Victims Assistance Grant) $500 FOR: Police Services $281,564 FOR: DUI Enforcement Grant $33,260 FOR: Seatbelt Grant $7,688 FOR: Victims Assistance Grant $500 68 of 402 - 2 - 2. APP. FROM: Unanticipated Revenue (Miscellaneous CDNS) $86,696 APP. FROM: Unanticipated Revenue (State CLG Grants) $89,869 APP. FROM: Transfer from Existing Operating Budgets $32,700 $25,260 FOR: Avery Building (CLG Grant) $30,000 FOR: Building Inspection Expenses $44,916 FOR: Feeder Supply Building (CLG Grant) $13,980 FOR: Old Town Historic District (CLG Grant) $43,530 FOR: Restorative Justice Fees $671 FOR: State Tax Credit Program (CLG Grant) $7,000 FOR: Technology Improvements for B&C $13,500 FOR: William Stover House (CLG Grant) $48,228 FOR: Restorative Justice Program $ 7,440 3. APP. FROM: Prior Year Reserves (PEG Reserve) $40,695 FOR: Public Access Network $40,695 4. APP. FROM: Unanticipated Revenue $20,000 FOR: The Gardens on Spring Creek $20,000 5. APP. FROM: Prior Year Reserves (Horticulture Reserve) $150,000 FOR: Capital Projects Fund - Gardens Project - Undaunted Garden $150,000 6. APP. FROM: Prior Year Reserves (General Fund) $30,000 FOR: Elections Expenses $30,000 7. APP. FROM: Unanticipated Revenue (Donations) $25,000 FOR: 4th of July Expenses $25,000 8. APP. FROM: Prior Year Reserves (Tree Donation Reserve) $15,000 FOR: Forestry Expenses $15,000 9. APP. FROM: Unanticipated Revenue $3,367 FOR: Radon Program $3,367 10. APP. FROM: Unanticipated Revenue (Grants) $165,055 $77,291 FOR: Fort Collins Convention and Visitors Bureau $165,055 $77,291 11. APP. FROM: Prior Year Reserves (Land Bank Reserve) $28,500 FOR: Land Bank Expenses $28,500 12. APP. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $187,007 FOR: Manufacturing Use Tax Rebates $187,007 B. CAPITAL EXPANSION FUND 1. FROM: Unanticipated Revenue (Administrative Fees) $60,000 FOR: Transfer to the General Fund $60,000 69 of 402 - 3 - C. CAPITAL PROJECTS FUND 1. APP. FROM: Unanticipated Revenue (Insurance Claim) $14,607 FOR: Spring Canyon-Veterans Plaza Project $14,607 2. APP. FROM: Unanticipated Revenue (Transfer from General Fund) $150,000 FOR: Gardens Project – Undaunted Garden $150,000 3. APP. FROM: Unanticipated Revenue (Developer Contribution) $76,117 FOR: Kechter / Timberline Turn Lane Improvements Project $76,117 4. APP. FROM: Unanticipated Revenue (Developer Charges) $43,890 FOR: Pedestrian Plan & ADA Improvements Project $43,890 5. APP. FROM: Unanticipated Revenue (Transfers In) $381,945 FOR: MAX Ineligible Project Expenses $381,945 6. APP. FROM: Unanticipated Revenue (Contribution) $23,126 FOR: Lincoln Center Renovation Capital Project $23,126 D. CULTURAL SERVICES AND FACILITIES FUND 1. APP. FROM: Unanticipated Revenue (Bohemian Foundation) $28,089 FOR: Art in Public Places Administration $6,000 FOR: APP Project (Pianos About Town) $22,089 2. APP. FROM: Unanticipated Revenue (DDA) $8,000 FOR: Art in Public Places Administration $8,000 3. APP. FROM: Unanticipated Revenue (Transfer from Capital Projects) $14,500 FOR: Art in Public Places Administration $3,190 FOR: Art in Public Places Projects $11,310 4. APP. FROM: APP Operating Expense – Cultural Services & Facilities Fund $27,006 FOR: Art in Public Places Projects – Cultural Services & Facilities Fund $27,006 5. APP. FROM: Unanticipated Revenue (Transfer from Stormwater Fund) $30,866 FOR: Art in Public Places Administration $30,866 6. APP. FROM Unanticipated Revenue (Transfer from Light & Power Fund) $31,424 FOR: Art in Public Places Administration $31,424 70 of 402 - 4 - E. EQUIPMENT FUND 1. APP. FROM: Prior Year Reserves (Equipment Fund) $60,000 FOR: Equipment Lease Purchase Expenses $60,000 2. APP. FROM: Unanticipated Revenue (Insurance Proceeds) $30,800 FOR: Equipment Expenses $30,800 F. GENERAL IMPROVEMENT DISTRICT #15 - SKYVIEW FUND 1. APP. FROM: Existing Revenue $600 FOR: GID #15 Expenses $600 G. GOLF FUND 1. APP. FROM: Unanticipated Revenue (Greens Fees) $30,000 FOR: Golf Expenses $30,000 H. HOME FUND 1. APP. FROM: Unanticipated Revenue (HOME Grant) $810 FOR: HOME Grant Expenses $810 I. LIGHT AND POWER FUND 1. APP. FROM: Unanticipated Revenue (grant) $25,040 FOR: Electric Vehicle Charging Stations $25,040 2. APP. FROM: Prior Year Reserves $31,424 FOR: Transfer to Cultural Services & Facilities Fund (APP) $31,424 J. NATURAL AREAS FUND 1. APP. FROM: Unanticipated Revenue (Grant) $7,000 FOR: Natural Areas Expenses $7,000 2. APP. FROM: Unanticipated Revenue (donation) $5,000 FOR: Natural Areas Expenses $5,000 71 of 402 - 5 - K. SALES AND USE TAX FUND 1. APP. FROM: Prior Year Reserves (Sales & Use Tax Fund) $654,776 FOR: Transfer to Capital Projects - Building on Basics $327,388 FOR: Transfer to Natural Areas Fund $327,388 L. STORMWATER FUND 1. APP. FROM: Unanticipated Revenue (sale of property) $ 420,000 FOR: West Vine Drainage Basin Project $ 420,000 2. APP. FROM: APP Operating Expense - Stormwater Fund $4,617 FOR: Art in Public Places Projects - Stormwater Fund $4,617 3. APP. FROM: Prior Year Reserves $30,866 FOR: Transfer to Cultural Services & Facilities Fund (APP) $30,866 M. TRANSPORTATION SERVICES FUND 1. APP. FROM: Unanticipated Revenue (Contribution) $3,700 FOR: FC Bikes Program $3,700 2. APP. FROM: Unanticipated Revenue (Contribution) $10,000 FOR: Safe Routes to School Program $10,000 N. WASTEWATER FUND 1. APP. FROM: APP Operating Expense - Wastewater Fund $ 3,409 FOR: Art in Public Places Projects - Wastewater Fund $ 3,409 O. WATER FUND 1. APP. FROM: APP Operating Expense - Water Fund $10,000 FOR: Art in Public Places Projects - Water Fund $10,000 72 of 402 - 6 - Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 73 of 402 Agenda Item 10 Item #10 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Beth Higgins, Public Relations Coordinator SUBJECT Second Reading of Ordinance No. 132, 2013, Appropriating Unanticipated Grant Revenue from the Institute of Museum and Library Services in the Museum Fund for “Living with Fire: A Community Responds” Grant Project. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates $138,933 in grant funds awarded to Fort Collins Museum of Discovery by the Institute of Museum and Library Services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 1, 2013 2. Ordinance No. 132, 2013 74 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Beth Higgins AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT First Reading of Ordinance No. 132, 2013, Appropriating Unanticipated Grant Revenue from the Institute of Museum and Library Services in the Museum Fund for “Living with Fire: A Community Responds” Grant Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate $138,933 in grant funds awarded to Fort Collins Museum of Discovery by the Institute of Museum and Library Services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Institute of Museum and Library Services has awarded Fort Collins Museum of Discovery $138,933 to complete a two-year community engagement project called Living with Fire: A Community Responds, focusing on the community impact of the 2012 High Park Fire. Through this project, the museum will achieve three goals: (1) to collect and share the stories of the people impacted by the fire; (2) to offer opportunities for collaboration, conversations and research with other local agencies; and (3) to provide educational programs to the community in collaboration with other agencies to share these stories and provide general information and resources. Agencies identified for collaboration include, but are not limited to, High Park Restoration Coalition; Center for Collaborative Conservation at Colorado State University; City of Fort Collins Utilities; Poudre Fire Authority; Rist Canyon, Livermore and Glacier View Volunteer Fire Departments; Larimer County; and US Forest Service. The project will begin on October 1, 2013 and will be completed by September 30, 2015. FINANCIAL / ECONOMIC IMPACTS The extent of financial or economic impact from this item will be commitment of matching funds in the amount of $186,957. This grant requires matching funds from the City of Fort Collins in the amount of $186,957, for a project total of $325,890. These funds will come from the Museum's operating budget. 75 of 402 ORDINANCE NO. 132, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES IN THE MUSEUM FUND FOR “LIVING WITH FIRE: A COMMUNITY RESPONDS” GRANT PROJECT WHEREAS, the City was awarded a grant in the amount of $138,933 from The Institute of Museum and Library Services to complete a two-year community engagement project called “Living with Fire: A Community Responds,” focusing on the community impact of the 2012 High Park Fire; and WHEREAS, the Museum will achieve three goals through this project: (1) collecting and sharing the stories of the people impacted by the fire; (2) offering opportunities for collaboration, conversations and research with other local agencies; and (3) providing educational programs to the community in collaboration with other agencies to share these stories and provide information and resources; and WHEREAS, the project will begin on October 1, 2013 and will be completed by September 30, 2015; and WHEREAS, this grant requires matching funds from the City in the amount of $186,957, for a total project cost of $325,890; and WHEREAS, the matching funds will come from existing appropriations in the 2013 and 2014 Museum budget; 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 the appropriation of grant funds will not cause the total amount appropriated in the Museum Fund to exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from unanticipated grant revenue in the Museum Fund the sum of ONE HUNDRED THIRTY-EIGHT THOUSAND NINE HUNDRED THIRTY-THREE DOLLARS ($138,933) for the “Living with Fire: A Community Responds” grant project. 76 of 402 Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 77 of 402 Agenda Item 11 Item # 11 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Wayne Sterler, Utilities Health Safety & Security Manager SUBJECT Second Reading of Ordinance No. 133, 2013, Appropriating Prior Year Reserves in the Light & Power, Water, Wastewater and Stormwater Funds for the 800 MHz Radio Communication System Capital Project. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates funding for the purchase and installation of an 800 MHz radio system for the Utilities Department. This system is similar to that used by police, fire and emergency medical personnel, and other Front Range utilities and will also allow for better communications between agencies during emergencies. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 1, 2013 2. Ordinance No. 133, 2013 78 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Wayne Sterler AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT First Reading of Ordinance No. 133, 2013, Appropriating Prior Year Reserves in the Light & Power, Water, Wastewater and Stormwater Funds for the 800 MHz Radio Communication System Capital Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate funding for the purchase and installation of an 800 MHz radio system for the Utilities Department. Conversion of the former wide-band system to a narrow-band system was completed at the beginning of 2013. The narrow-band system is not meeting the Utilities' safety and communications needs for field personnel and infrastructure protection. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On January 1, 2013, the Federal Communications Commission mandated that all of Utilities’ radio frequencies be “narrow-banded”. The Utilities’ radio system was previously a wide band system and was converted as mandated. Staff immediately saw a loss of quality and reliability of radio communications. There are 282 radios in use by Utilities personnel. Volume levels were effectively cut in half, and transmission and reception became sporadic and unreliable, significant static was introduced, and volume levels varied from radio to radio. Radio communications are vital for employee safety and system reliability. Use of the radio system whenever activity is taking place on the utility system insures all employees are aware of the activity occurring and the status of the system. The narrow-band system has created a situation where clear communication is lost, which means employees working on the system are not aware of all relevant situations potentially affecting them. A temporary solution has been provided by a vendor, and communication quality has been partially restored. This is not an acceptable long-term solution, however. In consultation with communications advisors, staff has determined the best long-term solution for meeting safety, reliability, quality, and maintenance requirements is to purchase an 800 MHz radio system. This system is similar to that used by police, fire and emergency medical personnel, and other Front Range utilities and will also allow for better communications between agencies during emergencies. Funding for the system is not available from the current Utilities’ budgets. With City Council approval of the needed appropriation, staff can begin the transition to the 800 MHz radio system immediately. FINANCIAL / ECONOMIC IMPACTS The total cost of the 800 MHz system to serve all Utilities personnel and locations is $1,460,665. This will be allocated to the four funds based on radios required. The split in costs between the four funds is as follows: $648,325 Light and Power $512,610 Water $240,920 Wastewater $ 58,810 Stormwater Reserves are available for the appropriation in all funds. In addition, there are annual fees associated with each radio on the system. The fees are $50 per radio, per year. Current appropriations will be utilized to pay the fees in 2014. 79 of 402 ORDINANCE NO. 133, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT & POWER, WATER, WASTEWATER AND STORMWATER FUNDS FOR THE 800 MHZ RADIO COMMUNICATION SYSTEM CAPITAL PROJECT WHEREAS, in January 2013, the Federal Communications Commission mandated that all of the Fort Collins Utilities ‘ Department radio frequencies be “narrow-banded”; and WHEREAS, the Utilities radio system was previously a wide-band system and was converted as mandated; and WHEREAS, following the conversion, the radio system volume levels were effectively cut in half, transmission and reception became sporadic and unreliable, significant static was introduced, and individual radio volume levels varied from unit to unit; and WHEREAS, a temporary solution has been provided by a vendor, and communication quality has been partially restored, but an acceptable, long-term solution is still needed; and WHEREAS, in consultation with communications advisors, Utilities has determined that the best long term solution for meeting safety, reliability, quality, and maintenance requirements is to purchase an 800 MHz radio system, similar to that used by police, fire and emergency medical personnel and other Front Range utilities; and WHEREAS, there are 282 radios in use by Utilities personnel and the total cost of the 800 MHz system to serve all utilities personnel and locations is $1,460,665, which amount will be allocated to the four Utilities funds based on radios required for each Utilities division; and WHEREAS, there will be annual fees associated with each radio on the system of $50 per radio per year; and WHEREAS, current appropriations will be utilized to pay the fees in 2014; 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 recommends appropriating $648,325 from prior year reserves in the Light & Power Fund, $58,810 in the Stormwater Fund, $240,920 in the Wastewater Fund, and $512,610 in the Water Fund for a total amount of $1,460,665 to be used for the purchase and installation of an 800 MHz radio system for the Utilities Department to benefit the citizens of the City. 80 of 402 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Light & Power Fund the sum of SIX HUNDRED FORTY-EIGHT THOUSAND THREE HUNDRED TWENTY-FIVE DOLLARS ($648,325) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the Stormwater Fund the sum of FIFTY-EIGHT THOUSAND EIGHT HUNDRED TEN DOLLARS ($58,810) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Wastewater Fund the sum of TWO HUNDRED FORTY THOUSAND NINE HUNDRED TWENTY DOLLARS ($240,920) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Water Fund the sum of FIVE HUNDRED TWELVE THOUSAND SIX HUNDRED TEN DOLLARS ($512,610) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 81 of 402 Agenda Item 12 Item # 12 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Jon Haukaas, Water Engineer Field Operations Manager SUBJECT Second Reading of Ordinance No. 134, 2013, Appropriating Prior Year Reserves in the Water Fund for Two Water Main Replacement Projects. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2013, appropriates funds for the project design for the water main replacement on College Avenue and for design and construction of water main replacement on Meldrum Street. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 1, 2013 (w/o attachments) 2. Ordinance No. 134, 2013 82 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT First Reading of Ordinance No. 134, 2013, Appropriating Prior Year Reserves in the Water Fund for Two Water Main Replacement Projects. EXECUTIVE SUMMARY The purpose of this item is to fund project design for the water main replacement on College Avenue and for design and construction of water main replacement on Meldrum Street. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION College Avenue Water Main Replacement The Colorado Department of Transportation (CDOT) will be repaving Highway 287 from Loveland north into the center of Fort Collins. The Fort Collins College Avenue portion of this work is anticipated to start in the spring of 2015. Fort Collins Utilities has water mains under this section of roadway that are deteriorating and undersized to adequately serve the current and anticipated population in the area. Staff proposes to reconstruct these lines in 2014, ahead of the CDOT work. The work includes the replacement of approximately 6000 feet of 4-inch and 6-inch cast-iron waterline in College Aveenue from Mulberry to Buckeye on the east side of College, and from Mulberry to Laurel on the west side of College. Staff believes it is important to start the design immediately (fall of 2013) so that completion of the construction in 2014 will be coordinated ahead of the CDOT schedule and to minimize the impact to the community. This appropriation requests $400,000 from the Water Fund Reserves for design work. Once design and cost estimates is complete, staff anticipates returning to Council with a follow-up request for construction funding, also to come from Water Fund Reserves. Meldrum Water Main Replacement Development in the downtown area has accelerated in recent years. It has been determined there is a significant deficiency in the Utilities’ ability to provide water service in several areas of the downtown due to an old undersized water main in a two-block stretch of Meldrum Street, south of Mountain Avenue. This replacement was not anticipated at the time of the 2013-2014 Budget Offer development. This appropriation requests $200,000 from the Water Fund Reserves to design and construct this replacement. Design work would be completed immediately and construction can begin yet this fall or early spring. FINANCIAL / ECONOMIC IMPACTS Water Fund reserves will be reduced by $600,000 with both proposed projects; however, all Water Fund reserve policies will continue to be met. 83 of 402 COPY COPY COPY October 1, 2013 -2- ITEM 12 ENVIRONMENTAL IMPACTS Design and construction will utilize best practices to minimize and mitigate environmental impacts of the projects. BOARD / COMMISSION RECOMMENDATION The Water Board was provided an update of capital projects and proposed work earlier this summer, but no formal action was taken. PUBLIC OUTREACH Public outreach will coincide with the design and construction. ATTACHMENTS 1. Water main replacement map 84 of 402 ORDINANCE NO. 134, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE WATER FUND FOR TWO WATER MAIN REPLACEMENT PROJECTS WHEREAS, the Colorado Department of Transportation (CDOT) will be repaving U.S. Highway 287 from Loveland north into the center of Fort Collins, starting in the Spring of 2015; and WHEREAS Fort Collins Utilities has water mains under this section of roadway that are deteriorating and are not adequately sized to serve the current and anticipated population in the area; and WHEREAS, Utilities is proposing to reconstruct these lines in 2014 ahead of the CDOT work; and WHEREAS, the work includes the replacement of approximately 6,000 feet of 4" and 6" cast iron waterline in College Avenue from Mulberry Street to Buckeye Street on the east side of College and from Mulberry Street to Laurel Street on the west side of College Avenue; and WHEREAS, Utilities is requesting $400,000 from the Water Fund Reserves for design work; and WHEREAS, Utilities anticipates returning to Council with a follow up request for construction funding, also to be appropriated from Water Fund Reserves; and WHEREAS, Utilities has determined that there is a significant deficiency in its ability to provide service in several areas of downtown due to an old undersized two-block section of water main in Meldrum Street, south of Mountain Avenue; and WHEREAS, Utilities would complete design work immediately and begin construction in the fall 2013 or early spring of 2014; and WHEREAS, Utilities is requesting $200,000 from the Water Fund Reserves for design and construction work regarding the four-block section of water main; 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 recommends appropriating from prior year reserves in the Water Fund $600,000 to be used for the design and construction work of two water main replacement projects to benefit the citizens of the City. 85 of 402 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 Water Fund the sum of SIX HUNDRED THOUSAND DOLLARS ($600,000) to be used for the design and construction work of water main replacement projects to benefit the citizens of the City, involving portions of water mains located in College Avenue from Mulberry Street to Buckeye Street on the east side of College and from Mulberry Street to Laurel Street on the west side of College Avenue; and the two-block section in Meldrum Street, downtown, south of Mountain Avenue. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 86 of 402 Agenda Item 13 Item #13 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lance Smith, Strategic Financial Planning Manager Brian Janonis, Utilities Executive Director Kevin Gertig, Water Resources/Treatment Operations Manager Jon Haukaas, Water Engineer Field Operations Manager SUBJECT Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreement. EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 135, 2013, Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins- Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise for the Delivery of Potable Water. B. Second Reading of Ordinance No. 136, 2013, Authorizing the Mayor to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise. These Ordinances, unanimously adopted on First Reading on October 1, 2013, restructure the existing water sharing agreement with the Fort Collins-Loveland Water District (FCLWD) and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading AIS, October 1, 2013 (w/o attachments) 2. Ordinance No. 135, 2013 3. Ordinance No. 136, 2013 87 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Lance Smith, Brian Janonis, Kevin Gertig, Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreement. A. First Reading of Ordinance No. 135, 2013, Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise for the Delivery of Potable Water. B. First Reading of Ordinance No. 136, 2013, Authorizing the Mayor to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise. EXECUTIVE SUMMARY The purpose of this item is twofold: 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION In 1999 a Joint Transmission Study was completed by Fort Collins Utilities and the Tri-Districts to determine the need for additional transmission capacity throughout the community. An outcome of that study was the decision by Fort Collins Utilities to build a 60” transmission system which, in addition to meeting the demands of Fort Collins Utilities, would be utilized by FCLWD to convey water from the Soldier Canyon Treatment Plant (SCFP) to FCLWD customers through an IGA. The current water sharing agreement between the City and FCLWD has been in effect since 1999 for that purpose. Delivery points into the FCLWD distribution system were specified in the agreement as were two points of entry into the Fort Collins Utilities transmission system from SCFP. The intention of the water sharing agreement was to allow for an annual balancing between how much water was conveyed through the Fort Collins Utilities transmission system from SCFP and how much water was taken from the Fort Collins Utilities transmission system by FCLWD and to specify the terms of the lease of the excess capacity in the new 60” transmission pipe. No changes are being proposed to the leasing terms and associated transmission charges except to include two additional points of delivery which have been added since 1999. Many of the terms of the agreement concerning the balancing and settlement of imbalances are outdated however, including the amount of water being shared, the points of delivery for any shared water as discussed above and the 88 of 402 COPY COPY COPY October 1, 2013 -2- ITEM 13 settlement price of any resulting annual imbalance. In an effort to address these inconsistencies, Fort Collins Utilities and FCLWD have negotiated new terms for the agreement over the past year. Ongoing development within the FCLWD service area has created a need for higher daily flows of water through the Fort Collins Utilities transmission system into the FCLWD distribution system. The amended agreement being proposed herein will increase the daily flow limit from 9 to 12 MGD which along with the proposed agreement for the sale of excess treatment capacity discussed below should allow FCLWD to meet their demand for several years. (Please note that Fort Collins Utilities is expecting to amend the existing water sharing agreement with North Weld County Water District to lower the maximum daily flow of that agreement from 12 MGD to 9 MGD, hence there is no increase in the combined treatment capacity obligation by Fort Collins Utilities for these agreements.) The current water sharing agreement allows for an annual settlement of any imbalance at $0.36 per thousand gallons with no raw water being provided. This settlement price is well below the current direct cost of treatment much less the current total cost of treatment. As such, the fixed price of settlement, along with no raw water being provided in the settlement, is no longer acceptable to Fort Collins Utilities. To date all annual imbalances have fallen within the specified 5% limit which allows the imbalance to be carried forward into the next water year. However, in the foreseeable future this may not be the case. To make it possible to not require annual settlements in the past it has been necessary for FCLWD to push significant amounts of water to Fort Collins Utilities during shoulder months (February - April and September - October) in order to offset the significant imbalance that occurs during the irrigation season (May - August). In effect, Fort Collins Utilities has provided FCLWD with treatment capacity to meet their peak demand without compensation in the past. The proposed amendment will address these issues by allowing for annual adjustments in the settlement price, requiring raw water is transferred between parties and requiring monthly settlement of any imbalance in excess of 12 million gallons. Because the proposed settlement price for 2013 of $2.0338 per thousand gallons inclusive of the payment in-lieu of taxes (plus transmission charges as outlined in the current agreement) is significantly higher than the current agreement specifies and may require an immediate rate increase for FCLWD customers, Fort Collins Utilities has agreed to ask City Council to allow for this rate to be stepped into over 3 years beginning at $1.3500 per thousand gallons inclusive of the payment in-lieu of taxes in 2013. The terms of the agreement are mutual so that the same settlement terms apply to any imbalance owed to Fort Collins Utilities or FCLWD. Because Fort Collins Utilities has excess treatment capacity and the agreement outlines the right of refusal by either party of water through daily communication, it is not anticipated that Fort Collins Utilities will have a need to take sufficient water from FCLWD to result in a monthly imbalance requiring settlement under normal operating conditions. Lastly on the water sharing agreement, although the letter from FCLWD on May 31 (Attachment 2) states both parties are agreeable to making the proposed amendments effective June 1, 2013, the amended agreement will be effective beginning with the 2013-14 water year which begins on November 1, 2013. In addition to renegotiating the terms of the water sharing agreement, both parties have spent considerable time reaching consensus on the proposed agreement for the sale of some of the excess water treatment capacity at the Fort Collins Utilities water treatment facility (WTF). The WTF was last expanded prior to the significant conservation efforts of the past decade which have resulted in the WTF treatment capacity of 87 MGD being at least 20 MGD above Fort Collins Utilities expected demand at build out in 2035 (Attachment 3). The proposed amendment for the sale to FCLWD of up to 5 MGD of treatment capacity provides Fort Collins Utilities customers a significant source of revenue to offset future operating expenses at the WTF and allows for future capital improvements to the existing facilities. The terms of the agreement do not involve the transfer of raw water rights as FCLWD is acquiring 5 MGD of treatment capacity only. Any raw water treated at the WTF for FCLWD through this agreement will result in the transfer of the same amount of raw water to Fort Collins Utilities through the Colorado-Big Thompson’s Horsetooth Reservoir. The associated plant investment fee (PIF) is $12.6M for 5 MGD of treatment capacity. FCLWD has asked the City to allow it to pay for the PIF associated with 1 MGD, or $2,520,000, upon the agreement becoming effective and to amortize the remaining PIF for 4 MGD, or $10,600,000, over 20 years at 5% interest resulting in monthly payments of $66,524, or $798,282 annually. In addition to the PIF, any water that is treated and delivered through this agreement to FCLWD will include treatment charges of $2.1093 per thousand gallons inclusive of payment in-lieu of taxes along with the transfer of an equal amount of Colorado-Big Thompson Project (CBT) water from FCLWD to Fort Collins Utilities. FCLWD has requested the option to purchase an additional 5 MGD of treatment capacity from the WTF under the same terms. While Fort Collins Utilities is not agreeing to the right of first refusal for this additional 5 MGD, 89 of 402 COPY COPY COPY October 1, 2013 -3- ITEM 13 Fort Collins Utilities will work closely with FCLWD to ensure FCLWD is aware of how much excess capacity exists at the WTF in the future. FINANCIAL / ECONOMIC IMPACTS The financial impact of the proposed amendment affecting the sharing of water between the two parties is difficult to quantify as it depends greatly on the annual variability in water demand. Monthly imbalances requiring settlement are likely in the irrigation season (May - August) when FCLWD has historically taken more water than it has returned to Fort Collins Utilities. Thus, amending the agreement to have monthly rather than annual settlements may increase the cost of water for FCLWD customers as it will no longer allow FCLWD to effectively use this agreement to meet its summer peak demand through the use of treatment capacity it has not invested in creating. Correspondingly, it may offset some of the indirect treatment costs currently paid by Fort Collins Utilities customers through the monthly settlement of any imbalance. The financial impacts of the proposed agreement for the sale of excess treatment capacity also depend on the annual variability in the demand for water with the exception of the plant investment fee. The budget for 2013-14 assumed an average annual collection of $650,000 in plant investment fees. In addition to the initial payment of $2,520,000 for 1 MGD of capacity, the annual payments associated with amortizing the purchase of the remaining 4 MGD of treatment capacity is $798,282. Thus, amortizing the plant investment fee over 20 years will result in significantly increasing the amount of capital available annually for investment in renewing the WTF infrastructure. ENVIRONMENTAL IMPACTS If the proposed sale of excess treatment capacity is not entered into by both parties, the increased demand for treated water by FCLWD may require the expansion of the SCFP or the construction of a new water treatment facility. The potential environmental impacts of either of those solutions to meet FCLWD’s growing demand for treated water would at a minimum be deferred by several years through the proposed sale. BOARD / COMMISSION RECOMMENDATION At its June 20, 2013 meeting, the Water Board voted unanimously to recommend approval of the amendments to the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District. (Attachment 4) ATTACHMENTS 1. Existing FCLWD Intergovernmental Agreement for the Delivery of Potable Water January 1999 2. FCLWD Response Letter to Proposed Amendments to Existing Water Share Agreements 3. Internal Memo on WTF Excess Capacity at Build-out in 2035 4. Water Board minutes, June 20, 2013 90 of 402 - 1 - ORDINANCE NO. 135, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE FOR THE DELIVERY OF POTABLE WATER WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (hereinafter referred to as “the Soldier Canyon IGA”) with the East Larimer County Water District (hereinafter referred to as “ELCO”) and the North Weld County Water District (hereinafter referred to as “NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHEREAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (hereinafter referred to as “the Soldier Canyon Treatment Plant”); and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the City and the District have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District 91 of 402 - 2 - to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) to reflect the current needs and commitments of the parties; and WHEREAS, the terms and conditions pursuant to which the City and the District would exchange potable water are set forth in the AAmended and Restated Intergovernmental Agreement for the Delivery of Potable Water,@ a copy of which is attached hereto as Exhibit AA@ and incorporated herein by reference (the AAgreement@); and WHEREAS, in addition to updating and clarifying numerous aspects of the Water Delivery Agreement, the Agreement removes Soldier Canyon from party status, and provides that the District is responsible for ensuring that the water delivery obligations of the District are met; and WHEREAS, the Agreement provides for its retroactive application to June 1, 2013, incorporating new rates and raw water requirements, and other terms and conditions; and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Article XII, Section 6 of the Charter provides that the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the utilities in good repair and working order, and for other enumerated purposes; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the 92 of 402 - 3 - Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby approves the Agreement, including the rates, fees and charges set forth in the Agreement, and finds and determines the Agreement to be for the benefit of the City Water Utility and its ratepayers. Section 2. That the Council hereby authorizes the Mayor to execute the Agreement on behalf of the City, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 93 of 402 - 4 - Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 94 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 1 AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE DELIVERY OF POTABLE WATER This Amended and Restated Intergovernmental Agreement for the Delivery of Potable Water (“Water Delivery Agreement”) is made and entered into this 13th day of September, 2013, effective as of November 1, 2013, by and between the CITY OF FORT COLLINS, a Colorado municipal corporation, (hereinafter referred to as “the City”), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, an enterprise of the City (hereinafter referred to as “the City Enterprise”), the FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), and the FORT COLLINS- LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”) (all collectively referred to as the “Parties”). W I T N E S S E T H : WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water 95 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 2 transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995 (hereinafter referred to as “the Soldier Canyon IGA”), with the East Larimer County Water District (hereinafter referred to as “ELCO”) and the North Weld County Water District (hereinafter referred to as “NWCWD”); and WHEREAS, the Soldier Canyon IGA by its terms created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHEREAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (hereinafter referred to as “the Soldier Canyon Treatment Plant”); and WHEREAS, pursuant to C.R.S. Section 29-1-203(1), governmental entities in Colorado are authorized to cooperate or contract with one another to provide any function, service or 96 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 3 facility lawfully authorized to each of the cooperating or contracting governmental entities; and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) (both of which, together with this Agreement, are sometimes referred to collectively as the “Water Agreements”), to reflect the current needs and commitments of the parties; and 97 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 4 WHEREAS, the Water Agreements specify certain volumes, prices and delivery points that apply for the sharing and sale of potable water as set forth therein; and WHEREAS, in order to update the terms of service for the delivery of potable water, the parties have negotiated the terms and conditions set forth herein, which the parties agree amend and restate the Water Delivery Agreement and, to the extent of any conflict, amend and supersede the Water Sales Agreement; and WHEREAS, it is the intent of the parties, with the consent of Soldier Canyon, to remove Soldier Canyon as a party to the Water Delivery Agreement. NOW, THEREFORE, in consideration of the parties’ mutual promises and agreements contained herein, and other good and valuable consideration, the receipt and accuracy of which are hereby acknowledged, the parties hereto agree as follows: 1. Term of Agreement. The obligations of the parties under this Agreement shall be perpetual in duration and shall not expire unless terminated as provided in paragraph 10 or 11 below. 2. Delivery of Potable Water to the District. A. It is the understanding of the parties that due to the configuration of the District’s Transmission Facilities, and the manner in which potable water flows into the District’s System from the City’s Transmission Facilities, it is not necessary for the District to request deliveries from the City. Instead, through its operations, the District will coordinate with the City for the normal operation of its System so as to allow for delivery of potable water from the City’s System to the District’s System on an ongoing basis, at levels consistent with the terms of this Agreement and in accordance with the terms and conditions set forth herein. The District will 98 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 5 notify the City in advance of any infrastructure or operational changes in the District’s System the affect the interconnection of the systems covered under this Agreement, except in the event of emergency circumstances, in which case the District shall notify the City as early as reasonably possible of the emergency and related System changes. B. The City shall only be obligated to deliver water to the District to the extent it legally and physically has surplus potable water available after meeting all the needs of the customers of the City Water Utility and provided that it is reasonably practicable for the City to operate its System so as to provide water to the delivery points as requested and as specified in this Agreement; C. In no event, however, shall the City be obligated under this Agreement to deliver to the District more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year (a “Water Year”, for purposes of this Agreement, shall mean November 1 of a year to October 31 of the following year). Any deliveries under the Water Sales Agreement shall be accounted for before the application of the charges and delivery limits under this Agreement. Any deliveries made in excess of the deliveries provided for in this Agreement, and all deliveries to the Harmony Meter Station and the Fossil Ridge Meter Station, as defined in the Water Treatment Agreement, shall be considered deliveries under the Water Treatment Agreement. Deliveries under the Water Sales Agreement or the Water Treatment Agreement shall be separately accounted for and invoiced in accordance with the applicable terms and conditions, and shall be subject to the limitations set forth 99 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 6 therein; and D. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points: 1. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); 2. The existing connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). 3. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); 4. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way and Timberline Road (the “Timberline Meter Station”); and 5. A new connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the northwest corner of the intersection of Ziegler Road and Rock Creek 100 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 7 Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”). 3. Delivery of Potable Water to the City. It is the understanding of the Parties that the City’s need for delivery of potable water from the District has generally declined over time relative to the District’s need for potable water from the City. The Parties do not anticipate that the City will request water deliveries from the District to exceed any amounts beyond that necessary to offset or balance deliveries to the District under this Agreement. To the extent that the City desires that the District deliver potable water to the City, the City shall specifically request such delivery and designate the date, location and amount of water to be delivered, and the District shall deliver the potable water as requested, subject to the limitations set forth herein. The District shall only be entitled to credit for water requested by the City and actually delivered by the District pursuant to a City request. A. It is the understanding of the Parties that unplanned deliveries of water into the City’s Transmission Facilities have the potential to disrupt the functioning of the City’s System and operation of the City’s Water Treatment Plant. Water deliveries to the City other than those requested have the potential to disrupt the operation of the City’s Treatment Plant, and are not permitted. In the event that deliveries from the District to the City begin to exceed that necessary to balance previous deliveries from the City to the District, FCLWD shall immediately inform the Soldier Canyon Treatment Plant to reduce production into the Transmission Systems to a level that does not create a surplus to the City. B. In responding to the City’s request for the delivery of water, the District shall only be obligated to honor the City’s request to the extent it legally and physically has 101 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 8 surplus potable water available after meeting all the needs of its customers and provided that it is reasonably practicable for the District to operate its System so as to provide the water to the delivery points as requested and as specified in this Agreement. C. In no event, however, shall the District be obligated under this Agreement to deliver to the City more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year; and D. For the purposes of water deliveries under this Agreement, all water deliveries from the District to the City shall be at one of the following delivery points: 1. The Cross-Tie; and 2. The Overland Pump Station. 4. Compensation for Water Delivered. No more than ten (10) days after the end of every month in each Water Year, and no more than fifteen (15) days after the end of every Water Year, for all annual charges, the City and the District shall perform an accounting to determine the amount of potable water delivered by each party to the other during the applicable billing period. The parties acknowledge and agree that the rates and charges established pursuant to this paragraph 4 incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. The charges shall be as set forth herein below, adjusted to exclude deliveries under the Water Sales Agreement, as described in paragraph 5 of the Water Sales Agreement, provided that the Water Sales Agreement remains in effect. No deliveries to the Harmony Meter Station or the Fossil Ridge Meter Station, as defined in the Water Treatment 102 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 9 Agreement, shall be considered deliveries under this Agreement or under the Water Sales Agreement. A. The District shall pay annual transmission charges to the City for delivery of water under this Agreement. 1. The District Enterprise shall pay annual transmission charges, as follows: a. Transmission charges at a rate of Six Thousand Seven Hundred and Fifty Dollars ($6,750.00) for each million gallons, or portion thereof, delivered to the Taft Hill Pumping Station on the day of the highest peak delivery during the preceding twelve (12) month period; and b. Transmission charges at a rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Ziegler Meter Station on the day of the highest peak delivery during the preceding twelve (12) month period; and c. Transmission charges at rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Timberline Meter Station, on the day of the highest peak delivery during the preceding twelve (12) month period. 2. If the peak day for any of the above connections occurs on the same day that the District exceeds 12 million gallons of potable water delivered from the City, the excess over 12 million gallons, which will be charged at the 103 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 10 rate in the Water Treatment Agreement (which includes transmission charges) will be deducted from the peak day calculation. 3. No less frequently than after each Water Year, the City shall invoice the District Enterprise for the total transmission charges under this Agreement and the District Enterprise. In the City’s discretion, the City may from time to time modify the frequency of billings and payment of the transmission charges by providing no less than two (2) months advance written notice to the District. B. For all water delivered under this Agreement, in any given month within a Water Year that the respective amounts requested by and delivered to each of the parties differ by no more than twelve million (12,000,000) gallons (the “Carryover Limit”), then the calculation of applicable overage charges under this subparagraph B will be carried over and incorporated into the calculation and related billing for overage charges for the succeeding month. In any month that the respective amounts requested by and delivered to each of the parties, adjusted by any carryover from the preceding month as set forth above, differ by more than the Carryover Limit, the party receiving the greater amount (the “Owing Party”) shall owe this difference to the other party (the “Owed Party”) compensation for the difference between the amount delivered and amount received by that party (the “Overage”) as described in paragraph C below: C. It is the intent of the Parties to adjust the rate payable for an Overage over approximately a three year period. The City is projecting rate increases of 4% annually over the next several years. The rate shall become equal to the full 104 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 11 treatment charges of the City beginning in calendar year 2017. For deliveries in all calendar years after 2017, the rate for overage charges shall be adjusted annually on a calendar year basis at a rate consistent with the overall rate increase to the entire customer base of the City. 1. The schedule to step into the full rate shall be as follows: a. For deliveries in the remainder of calendar year 2013 and the full calendar year 2014, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Thirty-Five and Zero Hundredths Cents ($1.3500) per thousand gallons of metered flows. b. For deliveries in calendar year 2015, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Sixty-Nine and Twenty Hundredths Cents ($1.6920) per thousand gallons of metered flows. c. For deliveries in calendar year 2016, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of Two Dollar and Three and Thirty-Eight Hundredths Cents ($2.0338) per thousand gallons of metered flows. 2. Such compensation shall be paid within thirty (30) days after the issuance of the related invoice by the Owed Party and it shall be paid by the City Enterprise or the District Enterprise, as applicable, solely from the net revenues of their respective water utilities. D. Financial obligations of the City in this paragraph 4 are intended and deemed to be 105 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 12 the legal obligation of the City Enterprise, and financial obligations of the District in this paragraph 4 are intended and deemed to be the legal obligation of the District Enterprise. E. It is the intent of the parties that overages or imbalances in water delivery amounts will be reconciled on a monthly basis, and no balances will be carried forward from Water Year to Water Year. 5. Water Quality. All potable water delivered to the City by the District and by the District to the City under this Agreement shall meet or exceed all quality standards for potable water that are required by the Environmental Protection Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health and Environment (hereinafter referred to as “the CDPHE”)(hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the party delivering the water up to the point of delivery and upon the party receiving the water after the point of delivery. In the event the EPA CDPHE imposes a water quality standard on the City or the District that is stricter than the standard required of the other, each party shall be required to meet that stricter standard for all potable water it delivers under this Agreement. In the event the City or the District discovers that any water delivered, being delivered or to be delivered by it under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. Regardless of the foregoing, if at any time and for any reason the City or the District has a good faith concern about whether the potable water to be delivered or being delivered to it under this Agreement meets all of the Water Quality Standards, it may refuse 106 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 13 to accept such water. Such refusal shall not be considered as a breach of or default under this Agreement. The City and the District further agree to notify the other party in writing of any proposed change to their respective water treatment processes before implementing such change if it could affect the quality of potable water delivered under this Agreement. 6. Metering and Infrastructure. In order to accurately account for the potable water delivered under this Agreement, metering, recording and telemetry devices shall be installed and maintained at the points of delivery specified in this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation 107 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 14 said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Water Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds the allowed twelve million (12,000,000) gallons, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection systems. 7. Maintenance and Repairs. If the City or the District anticipates that any scheduled maintenance or repair of its respective facilities could significantly interfere with the delivery of potable water under this Agreement, that party shall give the other party, if reasonably practicable, at least seven (7) calendar days prior written notice of the scheduled maintenance or repairs. Also, when reasonably practicable, the City and the District shall attempt to schedule such maintenance and repairs during periods of low demand by the other party for potable water under this Agreement. If, however, an unscheduled interruption of service under this Agreement occurs and in order to restore such service it is necessary to make repairs to the affected facilities, the party whose facilities are affected shall promptly notify the other party of the problem and proceed with due diligence to make the needed repairs. 8. District’s Obligations with respect to Soldier Canyon Filter Plant (Soldier Canyon). The parties acknowledge and agree that the District may perform its obligations under this Agreement through Soldier Canyon to the extent they involve or relate to the delivery of water to 108 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 15 the City, including, without limitation: (a) satisfying the Water Quality Standards and the testing, monitoring and reporting requirements and standards set forth in paragraph 5, above; (b) furnishing, installing and maintaining metering, recording and telemetry devices at the Soldier Canyon Treatment Plant pursuant to paragraph 6, above; and (c) physically controlling the delivery of water to the City in accordance with paragraph 3, above., provided, however, that the District will remain responsible for satisfactory performance of its obligations as a condition of the enjoyment by the District of the benefits of this Agreement. 9. Future Cooperative Intergovernmental Agreements. The parties acknowledge that the City and the District are currently in the process of evaluating opportunities for future coordination, collaboration and shared services in order to provide efficient and cost-effective services to their respective customers. Accordingly, the parties acknowledge that the arrangements set forth in this Agreement may be superseded or modified in the future to reflect the outcome of those efforts. 10. Termination for Breach. Both the City and the District may terminate this Agreement upon a material breach by the other party of any term or condition of this Agreement if such breach continues for a substantial and unreasonable period of time, but in any event if the breach has continued for a period of sixty (60) days after receipt by the breaching party from the non- breaching party of a written notice of the existence of such breach. Notwithstanding any provision contained herein to the contrary, in no event shall the City or the District terminate this Agreement if the party at fault proceeds, after receiving said notice, with due diligence to correct or rectify the material breach regardless of the duration of such breach. Termination of this Agreement shall not, however, be the sole remedy of either party and any exercise of this right to terminate shall not preclude the pursuit of any other remedy available in law or in equity to the 109 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 16 non-breaching party. 11. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by either party upon the provision of written notice of termination no less than ten (10) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. 12. Force Majeure. Notwithstanding anything contained herein to the contrary, it is agreed that in the event and to the extent that fire, flood, earthquake, natural catastrophe, explosion, accident, war, illegality, act of God, or any other cause beyond the control of any party hereto, or strikes or labor troubles (whether or not within the power of the party affected to settle the same) prevents or delays performance by any party to this Agreement, such party shall be relieved of the consequences thereof without liability, so long as and to the extent that performance is prevented by such cause; provided, however, that such party shall exercise due diligence in its efforts to resume performance within a reasonable period of time. 13. Cooperation of the Parties. The City and the District acknowledge that it is difficult to anticipate all of the activities, situations and other factors which may be relevant to them in satisfying their respective obligations under this Agreement. Therefore, the parties acknowledge that it will be necessary for them to cooperate with each other relative to any such unforeseen situations. In furtherance thereof, the City and the District agree that at the end of every Water Year, their representatives shall meet to discuss, in good faith, any modifications that any party 110 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 17 believes necessary or appropriate to this Agreement in order to avoid an inequitable situation. In the event that the parties shall mutually agree to any such modification, it shall only be effective if set forth in writing and signed by all of the parties hereto. 14. Governing Law and Enforceability. This Agreement shall be construed in accordance with the laws of the State of Colorado. In addition, the parties hereto recognize that there are legal constraints imposed upon the City and the District by the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by the City Charter and City Code, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall any of the parties hereto exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 15. Indemnification. A. In connection with the City’s performance of its obligations under this Agreement, the City agrees, to the extent permitted by law, to indemnify and hold harmless the District, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the City, or of its officers or employees, provided that such act or omission by the City’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the City agrees, to the extent permitted by law, to indemnify the District, and their respective officers and employees, from all costs and expenses related to defending such liabilities, 111 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 18 claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees whether or not any such liabilities, claims and demands are groundless, frivolous, false or fraudulent. B. In connection with the District’s performance of its obligations under this Agreement, the District agrees, to the extent permitted by law, to indemnify and hold harmless the City, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the District, or of its officers or employees, provided that such act or omission by the District’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the District agrees, to the extent permitted by law, to indemnify the City, and their respective officers and employees, from all costs and expenses related to defending such liabilities, claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees, whether or not such liabilities, claims and demands are groundless, frivolous, false or fraudulent. To the extent the District will rely on third parties, such as Soldier Canyon, to carry out elements of the District’s performance hereunder, the District shall be responsible for ensuring any such third parties provide adequate insurance, warranties and performance to protect the City from loss or damage from any such performance, and the District shall be liable to the City for claims, demands or losses of or by the City that are not cured or remedied by, or for which the District has not secured full recourse for the benefit of the City against such third parties. 112 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 19 16. Inspection of Records. Each party agrees to allow each of the other parties to this Agreement to inspect and copy at reasonable times, with reasonable advance notice, all of its relevant records needed by any other party to verify the quantities of potable water delivered under this Agreement and to verify compliance with the standards and requirements of this Agreement. 17. Assignment. This Agreement shall not be assigned by any of the parties hereto without the prior written consent of all the other parties hereto, each in its sole discretion. 18. Default/Remedies/Immunity. If any party fails to comply with the provisions of this Agreement, the other party or parties, after providing written notification to the noncomplying party and upon the failure of the noncomplying party or parties to achieve compliance within thirty (30) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, or actual damages, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party or parties shall be entitled to payment by the defaulting party or parties of actual attorneys’ fees and costs incurred. Nothing in this paragraph 18 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. 113 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 20 19. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of law principles, will be applied in the interpretation, execution and enforcement of this Agreement. 20. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: District: District Manager Fort Collins-Loveland Water District 5150 Snead Dr. Fort Collins, CO 80525 City: Utilities Executive Director City of Fort Collins P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 21. Complete Agreement. To the extent provided herein, this Agreement supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. 114 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 21 22. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 23. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 24. Waiver. No waiver or delay of enforcement by any of the parties hereto of any of the terms and conditions of this Agreement shall be deemed to be or shall be construed as a waiver of any other term or condition, nor shall a waiver of any breach of this Agreement be deemed to constitute a waiver of any subsequent breach of the same provision of this Agreement. 25. Construction. This Agreement shall be construed according to its fair meaning and as if it was prepared by all the parties hereto and shall be deemed to be and contain the entire agreement between the parties hereto. There shall be deemed to be no other terms, conditions, promises, understandings, statements or representations, expressed or implied, concerning this Agreement, unless set forth in writing and signed by all of the parties hereto. Paragraph headings in this Agreement are for convenience of reference only and shall in no way define, limit or prescribe the 115 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 22 scope or intent of any provision of this Agreement. 26. Severability. If any provision of this Agreement, or the application of such provision to any person, entity or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances other than those in which it was held invalid, shall not be affected. 27. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as of November 1, 2013. IN WITNESS WHEREOF the Parties have each executed this Agreement as of the date and year first above written. THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation ATTEST: By: Karen Weitkunat, Mayor ___________________________ City Clerk APPROVED AS TO FORM: ____________________________ Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, An Enterprise of the City ATTEST: By: Karen Weitkunat, President ___________________________ City Clerk 116 of 402 Amended and Restated Water Delivery Agreement September 30, 2013 23 FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: _______________, President ___________________________ _______________, Secretary FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: ___________________, President ___________________________ ________________, Secretary By its signature below, the Soldier Canyon Filter Plant agrees that it is no longer a party to this Agreement and has no further rights or responsibilities hereunder. SOLDIER CANYON FILTER PLANT, A Governmental Entity Created by Intergovernmental Agreement ATTEST: By: _____________________, President ___________________________ ___________________, Secretary 117 of 402 - 1 - ORDINANCE NO. 136, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICES WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the City and the District have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the City Council has on this date considered and adopted Ordinance No. __, 2013, approving and authorizing the Mayor to sign an Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the City and the District have negotiated the terms and conditions set forth in the Intergovernmental Agreement for Treated Water Service, attached hereto as Exhibit “A” and incorporated herein by this reference (the “Agreement”); and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to 118 of 402 - 2 - cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Article XII, Section 6 of the Charter provides that the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the utilities in good repair and working order, and for other enumerated purposes; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby approves the Agreement, including the rates, fees and charges set forth in the Agreement, and finds and determines the Agreement to be for the benefit of the City Water Utility and its ratepayers. Section 2. That the Council hereby authorizes the Mayor to execute the Agreement on behalf of the City, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Ordinance. 119 of 402 - 3 - Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 120 of 402 IGA FOR WATER TREATMENT September 30, 2013 1 INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICE CAPACITY BETWEEN THE CITY OF FORT COLLINS, COLORADO AND THE FORT COLLINS-LOVELAND WATER DISTRICT This AGREEMENT is entered into this _____ day of ____________, 2013, by and between the CITY OF FORT COLLINS, Colorado, a home rule municipality (the "City"), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE (the "City Enterprise") (together referred to hereinafter as "Fort Collins") the FORT COLLINS- LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), the FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”). Collectively Fort Collins and the District may be referred to herein as “Parties” or each a “Party.” WHEREAS, pursuant to Article XIV, Section 18 of the Constitution of the State of Colorado, Article II, Section 16 of the Charter of the City of Fort Collins, and Section 29-1-203(1) and Section 32-1-1001 of the Colorado Revised Statutes, the Parties may cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of the cooperating or contracting units of government; and WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and 121 of 402 IGA FOR WATER TREATMENT September 30, 2013 2 WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (the “Soldier Canyon IGA”) with the East Larimer County Water District (“ELCO”) and the North Weld County Water District (“NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHER EAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (the “Soldier Canyon Treatment Plant”); and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the parties to the said Intergovernmental Agreement for Delivery of Potable Water have, as of November 1, 2013, adopted revisions to the same, entitled Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the parties have negotiated the terms and conditions set forth in this Intergovernmental Agreement for Treated Water Service. NOW, THEREFORE, in consideration of the promises, the mutual covenants and agreements herein contained, the service to be rendered by Fort Collins and the payments to be made by the District as well as transfer of certain raw water owned by the District to be made by the District to Fort Collins as herein set forth, and the satisfactory performance of all conditions and requirements set forth herein, it is hereby agreed by and between the parties as follows: 122 of 402 IGA FOR WATER TREATMENT September 30, 2013 3 1. City Code. All terms and conditions of water treatment service between the District and Fort Collins will be as described in this Agreement and the City of Fort Collins City Code. 2. Term. This Agreement shall be effective as of January 1, 2014 (the “Effective Date”), and shall continue in effect until terminated in accordance with paragraph 10, hereinafter, by court order or by operation of law. 3. Services Provided. Fort Collins agrees to sell and provide water treatment service to delivery points from the City Water System to the District Transmission Facilities that are described below in paragraph 4. The Parties agree that the District will be solely responsible for any expenses or costs associated with the connections. The provision of such water treatment service by Fort Collins to the District is expressly contingent upon payment by the District for service, transfer of raw water as more fully described in paragraph 8 below, and the District’s compliance with regulatory requirements applicable to the delivery of potable water. Further, any obligation by Fort Collins to provide water treatment service to the District is subject to reductions, restrictions, limitations and surcharges, if any, that the City may establish in the future to manage its water supply or water system capacity that may be imposed on any other customer of the City. 4. Points of Delivery. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points, as shown on Exhibit A, attached hereto and incorporated herein by this reference: A. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); B. The connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). C. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); D. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way/Kechter Road and Timberline Road (the “Timberline Meter Station”); E. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the 123 of 402 IGA FOR WATER TREATMENT September 30, 2013 4 northwest corner of the intersection of Ziegler Road and Rock Creek Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”); F. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southeast corner of the intersection of Ziegler Road and Harmony Road and metered approximately 900 feet to the east (the “Harmony Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. G. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the Rock Creek Drive entrance to Fossil Ridge High School east of the intersection of Ziegler Road and Rock Creek Drive (the Fossil Ridge Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. 5. Integration with Deliveries Under Existing Agreements. The respective obligations of the District and the City hereunder are independent of deliveries or sales of potable water under existing agreements between Fort Collins and the District. As of the effective date of this Agreement, Fort Collins provides potable water to the District at the delivery points described above in subparagraphs A through E pursuant to the Water Sales Agreement and the Water Delivery Agreement (the “Existing Agreements”). All water delivered to the Harmony Meter Station and the Fossil Ridge Meter Station is deemed to have been delivered under this Water Treatment Agreement. It is the parties’ intent that deliveries of water under the Existing Agreements shall be determined, invoiced and subject to the terms and limitations set forth in those agreements, and that the water treatment services to be provided to the District hereunder shall be supplemental to the deliveries and sales provided thereunder. 6. Maximum service limit. Fort Collins will treat water for the District at a maximum rate of 1.825 billion (1,825,000,000) gallons during any Water Year and not to exceed 5 million (5,000,000) gallons per day. For the purposes of this Agreement, a Water Year is intended to mean the period starting November 1 of a given calendar year and extending through October 31 of the following calendar year. This maximum service limit has been determined based upon the District’s agreement to pay Water Plant Investment Fees as described in paragraph 7 below. The maximum amount of water treatment service identified herein will not increase unless and until, upon the written request of the District, Fort Collins at its sole discretion elects to increase the amount of annual water treatment service, additional plant investment fees and any other applicable fees or charges are paid, and the Parties execute a written addendum to this Agreement. 7. Payment for Service. In exchange for the water treatment services provided to the District as described in paragraph 3, the District shall pay to Fort Collins each of the fees and charges set forth in this Agreement and shall transfer raw water to Fort Collins as more fully described in paragraph 8 below. The fees and charges for water treatment service set forth herein shall be as established by Fort Collins from time 124 of 402 IGA FOR WATER TREATMENT September 30, 2013 5 to time as more fully described below. The initial rates and charges are outlined below. Fort Collins approves its rate modifications in October/November of each year with the effective date the immediately following January 1. Fort Collins shall include the District in all rate adjustment communications provided to other customers and Key Accounts of the Utility. A. The approach used to determine the level for the District’s permanent allocation of water treatment service is based on Water Plant Investment Fees paid by the District. The District shall pay Water Plant Investment Fees at a rate consistent with the fee amount determined to be appropriate by Fort Collins in its annual or semi-annual review of such fees conducted most recent to the time at issue. The Water Plant Investment Fee for the District at the time of execution of this Agreement is $2.52 per gallon of peak day use. Fort Collins’ obligation to provide water treatment services pursuant to this paragraph 7A is contingent upon payment of Water Plant Investment Fees. Payment of such fees will not allow the District to increase the maximum service limit without amendment of this Agreement as described in paragraph 6. B. The Water Plant Investment Fee shall be Twelve million Six hundred thousand dollars ($12,600,000). The District will pay the City Two million Five hundred Twenty thousand dollars ($2,520,000) prior to any deliveries under this Agreement, but in no event later than January 15, 2014. The remainder of the Water Plant Investment Fee, Ten million Eight thousand dollars ($10,080,000) shall be amortized over a period of twenty (20) years at an annual percentage rate of five percent (5%). Payments shall be made on a monthly basis in the amount of Sixty-six thousand Five hundred and twenty-four dollars ($66,524). C. The negotiated rate for calendar year 2013 for water treatment and transmission service is $2.1093 per one thousand gallons. Fort Collins may adjust the water treatment service rate for years after 2013 in accordance with the results of any cost of service study Fort Collins may conduct or in accord with overall rate changes made by the City Council of Fort Collins to the entire customer base of the City. The parties acknowledge and agree that the water treatment and transmission charges established pursuant to this subparagraph incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. D. Fort Collins may apply any other direct and indirect charges for incidental services requested by the District and normally applied for water treatment service as provided in Section 26-712 of the City Code. E. Calculation of the quantity of Water Treatment Service provided under this Agreement shall be calculated as the sum of the following: 125 of 402 IGA FOR WATER TREATMENT September 30, 2013 6 1. The quantity delivered through the “Harmony Meter Station” described in Section 4.F. above; 2. The quantity delivered through the “Fossil Ridge Meter Station” described in Section 4.G. above; and 3. The quantity transferred daily under the Water Delivery Agreement in excess of the limits set forth in the Water Delivery Agreement. 8. Additional Requirements for Water Service. As a condition of receiving the water treatment service provided hereunder, the District agrees to transfer water from the Colorado Big-Thompson Project (“CBT”) as follows: A. The District will assign to Fort Collins CBT raw water in an amount equal to the volume of water treated by Fort Collins for the District under this Agreement (the “Raw Water Amount”). The transfer of the Raw Water Amount for each month shall take place no later than ten (10) days after the end of such previous calendar month. B. In the event that Fort Collins or the District have reason to expect a significant change in the District’s level of treated water demand or other extraordinary occurrences affecting water supplies or water demands during the Water Year, the parties will cooperate in an effort to make additional transfers and accomplish any operational adjustments that may need to be made, at no cost to the City. C. All transfers of CBT water shall be made in accordance with rules established by the Northern Colorado Water Conservancy District (“NCWCD”). D. The District agrees that all treated water provided to the District hereunder shall be used in accordance with the applicable rules, policies and other requirements of the NCWCD. 9. Metering/Infrastructure. Metering, recording and telemetry devices shall be installed and maintained at the District’s expense at the points of delivery specified in this Agreement in a manner satisfactory to Fort Collins, so as to accurately account for the treated water provided to the District under this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the 126 of 402 IGA FOR WATER TREATMENT September 30, 2013 7 flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close or require the District to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Existing Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds 2% of the metered volumes, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection system. In such event the District will no longer be obligated to operate and maintain its own meters in such locations for the purposes of this Agreement. 10. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by the District upon the provision of written notice of termination to Fort Collins no less than ten (10) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. In no event shall the District be entitled to a refund of fees or charges paid to Fort Collins hereunder. Capacity of Treated Water purchased by the District at the time of termination shall be adjusted to reflect the sum of amortized payment received by the City. 11. District Information. The District agree to cooperate with Fort Collins to provide such information as Fort Collins may require in order to reconcile the records of Fort Collins and the District, and request information in order to confirm the nature, extent and circumstances of water treatment service utilized or accessed by the District or connected to the Fort Collins water system. The parties acknowledge that all or portions of the information provided hereunder may constitute confidential information pursuant to the Colorado Open Records Act or other applicable law, and agree that Fort Collins shall, as a condition of receipt of such information, protect the same from public disclosure to the extent required by law. 12. Water Quality Requirements. The City agrees to make its best efforts to deliver potable water to the District under this Agreement that meets or exceeds the quality standards for potable water that are required by the Environmental Protection Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health 127 of 402 IGA FOR WATER TREATMENT September 30, 2013 8 and Environment (hereinafter referred to as “the CDPHE”) (hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the City up to the point of delivery and upon the District after the point of delivery. In meeting the Water Quality Standards, the City and the District agree to comply with all monitoring, testing, reporting and consumer notification requirements established by the EPA and the CDPHE for potable water for their respective systems. In the event the City or the District discovers that any water delivered, being delivered or to be delivered under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. 13. Force Majeure. Fort Collins shall provide the services as set forth herein, subject to the general requirements applicable to the Fort Collins water system by law, including the Code of the City of Fort Collins, as the same may from time to time be modified or amended. Fort Collins shall not be liable for any failure, default or delay in any service provided for under this Agreement caused by strikes, acts of God, unavoidable accidents or contingencies of any nature whatsoever beyond its control. 14. Default/Remedies. If either party fails to comply with the provisions of this Agreement, the other party, after providing written notification to the noncomplying party and upon the failure of the noncomplying party to achieve compliance within ninety (90) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, actual damages, specific performance and injunctive relief, or forfeiture of investment and all rights by the District to further service by Fort Collins, as applicable, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party(ies) shall be entitled to payment by the defaulting party of its actual attorneys’ fees and costs incurred. Nothing in this paragraph 14 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. 15. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of laws principles, will be applied in the interpretation, execution and enforcement of this Agreement. Any provision of this Agreement, whether or not incorporated herein by reference, which provides for arbitration by an extra-judicial body or person or which is otherwise in conflict with said laws, rules and regulations will be considered null and void. In addition, the parties hereto recognize that there are legal constraints imposed upon them by the constitution, 128 of 402 IGA FOR WATER TREATMENT September 30, 2013 9 statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by their respective governing statutes, charters, ordinances, rules and regulations, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall either of the parties exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 16. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: To the District District Manager or the District Fort Collins-Loveland Water District Enterprise: 5150 Snead Dr. Fort Collins, CO 80525 To the City: Utilities Executive Director or the City City of Fort Collins Enterprise P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 17. Complete Agreement. This Agreement, including all exhibits, supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. 18. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 19. No Improper Acts. The signatories aver that to their knowledge, no officer or employee of their respective entities has taken any action in connection with the negotiation or approval of this Agreement that constitutes a violation of Colorado 129 of 402 IGA FOR WATER TREATMENT September 30, 2013 10 law, including but not limited to the abuse of fiduciary duty to the people of the State of Colorado, failure to properly disclose any conflict of interest in the service or property described herein, or failure to comply with the requirements of Section 24-18-109 and Section 32-1-902 of the Colorado Revised Statutes, as they may from time to time be amended or renumbered. 20. No Waiver. The waiver or delay of enforcement of one or more terms of this Agreement shall not constitute a waiver of the remaining terms. The waiver or delay in enforcement regarding any breach of this Agreement shall not constitute a waiver of any terms of the Agreement. 21. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 22. Modification of Agreement. This Agreement may be modified, amended, changed or terminated, except as otherwise provided herein, in whole or in part, only by an agreement in writing duly authorized and executed by both Parties. No consent of any third party shall be required for the negotiation and execution of any such agreement. 23. Assignment. No transfer or assignment of this Agreement or of any rights hereunder shall be made by either Party without the prior written consent of the other, which consent shall not be unreasonably withheld. 24. Severability. In the event any court of competent jurisdiction shall hold any provision of this Agreement invalid or unenforceable, such holding shall not invalidate or render unenforceable any other provision hereof. 25. Venue For Enforcement Actions. In the event of a dispute between the parties which results in litigation, the exclusive venue for such action shall be the District Court in and for the County of Larimer, State of Colorado. 26. Instruments of Further Assurance. The Parties each covenant that they will do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged, and delivered, such acts, instruments, and transfers as may be reasonably required for the performance of their obligations hereunder. 27. Binding Agreement. The terms, provisions and covenants of this agreement shall be binding upon the parties hereto, their successors and assigns. 130 of 402 IGA FOR WATER TREATMENT September 30, 2013 11 IN WITNESS WHEREOF, the said City has caused this agreement to be executed by its Mayor, attested to by its City Clerk with the corporate seal of said City hereunto affixed, the said District have caused this agreement to be executed by its president, and the City Enterprise and the District Enterprise have each cause this agreement to be executed by its respective president, as of the day and year first above written, in duplicate. THE CITY OF FORT COLLINS A Municipal Corporation By: __________________________ Mayor ATTEST: APPROVED AS TO FORM: _________________________ ________________________ City Clerk Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE An Enterprise of the City By: __________________________ Enterprise President ATTEST: _____________________ Enterprise Secretary FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: , President ___________________________ , Secretary 131 of 402 IGA FOR WATER TREATMENT September 30, 2013 12 FORT COLLINS - LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: , President ___________________________ , Secretary 132 of 402 ! ! ! ! ! ! ! A - Cross-Tie B PumOpverland - Station C Delivery - Southwest Point D MetTeirmberline - Station E Delivery - Southeast Point F MetHearrmony - Station G RidgFeossil - Meter Station !"`$ ³I ÕZYXW ÉZYXW üZYXW S College Ave Carp e nter Rd W Mulberry St W Drake Rd N Timberline Rd E Harmony R d Highway 392 W Vine Dr N Taft H ill R d W Harmony Rd E County Road 3 2 E Vine Dr W Prospect Rd E P rospect Rd Mountain Vista Dr E Drake Rd N Lemay Ave E Horsetooth Rd S Lemay A v e S Taft Hill Rd Ziegler Rd N College Ave N Shields St S Timberline Agenda Item 14 Item # 14 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Josh Weinberg, City Planner SUBJECT Second Reading of Ordinance No. 137, 2013, Designating 1501 Peterson Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 1, 2013, designates the Crane Property at 1501 Peterson Street as a Fort Collins Landmark. The owners of the property, Robert and Sally Linton, are initiating this request. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. First Reading Agenda Item Summary, October 1, 2013 (w/o attachments) 2. Ordinance No. 137, 2013 134 of 402 COPY COPY COPY ATTACHMENT 1 DATE: October 1, 2013 STAFF: Josh Weinberg AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT First Reading of Ordinance No. 137, 2013, Designating 1501 Peterson Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. EXECUTIVE SUMMARY The owners of the property, Robert and Sally Linton, are initiating this request for Fort Collins Landmark designation of the Crane Property at 1501 Peterson Street. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The property at 1501 Peterson Street qualifies for Fort Collins Landmark designation under Designation Standard 3, as an excellent example of Prairie style architecture with a high level of historic integrity. Originally developed and championed by Frank Lloyd Wright, the Prairie style was used almost exclusively for residential buildings. Adding to the local significance of 1501 Peterson is the fact that it is one of only a very few Prairie-style houses built in Fort Collins during this period; the estimated construction date of the house is 1918. FINANCIAL / ECONOMIC IMPACTS Recognition of 1501 Peterson Street as a Fort Collins Landmark enables its owners to qualify for federal, state and local financial incentive programs available only to designated properties. Additionally, based upon research conducted by Clarion Associates, the property would see an increase in value following designation. Clarion Associates attributed this increase to the fact that future owners also qualify for the financial incentives; the perception that designated properties are better maintained; the appeal of owning a recognized historic landmark; and the assurance of predictability that design review offers. BOARD / COMMISSION RECOMMENDATION At a public hearing held on August 14, 2013, the Landmark Preservation Commission voted to recommend designation of this property under Designation Standard (3), for its architectural significance to Fort Collins. ATTACHMENTS 1. Location Map 2. Landmark Designation Application 3. Staff report 4. Photos 5. Landmark Preservation Commission Resolution 135 of 402 ORDINANCE NO. 137, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS DESIGNATING THE CRANE PROPERTY, 1501 PETERSON STREET, FORT COLLINS, COLORADO, AS A FORT COLLINS LANDMARK PURSUANT TO CHAPTER 14 OF THE CODE OF THE CITY OF FORT COLLINS WHEREAS, pursuant to Section 14-2 of the City Code, the City Council has established a public policy encouraging the protection, enhancement and perpetuation of landmarks within the City; and WHEREAS, by Resolution dated August 14, 2013, the Landmark Preservation Commission (the "Commission") has determined that the Crane Property has significance to Fort Collins under Landmark Designation Standard (3) for its architectural significance to Fort Collins; and WHEREAS, the Commission has further determined that said property meets the criteria of a landmark as set forth in Section 14-5 of the City Code and is eligible for designation as a Landmark, and has recommended to the City Council that said property be designated by the City Council as a landmark; and WHEREAS, the owners of the property, Robert and Sally Linton, have consented to such landmark designation; and WHEREAS, such landmark designation will preserve the property's significance to the community; and WHEREAS, the City Council has reviewed the recommendation of the Commission and desires to approve such recommendation and designate said property as a landmark. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the property known as the Crane Property, and the adjacent lands upon which the historical resources are located in the City of Fort Collins, Larimer County, Colorado, described as follows, to wit: LOT 20, BLOCK 8, L C MOORE 2nd, City of Fort Collins, Larimer County, State of Colorado. is hereby designated as a Fort Collins Landmark according to City Code Chapter 14. Section 2. That the criteria in Section 14-48 of the City Code will serve as the standards by which alterations, additions and other changes to the buildings and structures located upon the above described property will be reviewed for compliance with Chapter 14, Article III, of City Code of Fort Collins. 136 of 402 Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 137 of 402 Agenda Item 15 Item # 15 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Craig Foreman, Director of Park Planning & Development SUBJECT First Reading of Ordinance No. 141, 2013, Appropriating Unanticipated Revenue from the Public Service Company into the Capital Projects Fund for the Trail Acquisition and Development-Special Funds Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate $1,250,000 from Public Service Company (PSCo or Xcel) into the Capital Project Trail Acquisition/Development - Special Funds. The Public Service Company’s (PSCo) West Main Pipeline Project required easements across City- owned Coyote Ridge, Colina Mariposa, and Hazaleus Natural Areas located along South Shields Street between Fort Collins and Loveland and on the Kingfisher Natural Area near Timberline Road. PSCo has agreed to provide $2,000,000 as compensation for the easements, and as mitigation for the project’s community wide impacts. From the PSCo revenues, funding in the amount of $1,000,000 will be used for the construction of a ten-foot wide concrete regional trail on the east side of Shields Street from Fossil Creek Drive to Trilby Road. Funding in the amount of $250,000 will also be used for the removal and relocation of the Poudre Trail at the Woodward Technology Center. The remaining $750,000 of PSCo revenues will be used by Natural Areas for various projects along the Poudre River. These funds were appropriated in the Natural Areas Fund by Ordinance No. 090, 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In late 2011, Public Service Company (PSCo) approached the Natural Areas Department to discuss the West Main Project and the need to replace an existing natural gas pipeline located within several City- owned natural areas. Negotiations with PSCo resulted in a payment of $2,000,000 to the City for the natural area easements and to offset the community impacts of the pipeline project. Staff reviewed a variety of trail projects, and determined construction of the regional trail along Shields Street from Fossil Creek Drive to Trilby Road was the best use for $1,000,000 of the PSCo funds. This regional trail is included in the Council-adopted Parks and Recreation Policy Plan. The trail will generally be placed on land disturbed by the pipeline project. Constructing the trail now avoids the need to restore this area and then disturb it when the trail is constructed in the future. Constructing this section of the regional trail will also create an incentive for Larimer County and the City of Loveland to connect to and complete the trail. The Woodward Technology Center project will result in the City obtaining 31 acres of natural area. City staff determined $250,000 of the PSCo funds should be used to remove the section of the Poudre Trail on the site and relocate within the restored natural area. The remaining $750,000 in PSCo funds will be used to acquire, restore or otherwise improve natural areas along the Poudre River. If any funds remain after completion of the trail projects, it will be used for other trail construction needs. Agenda Item 15 Item # 15 Page 2 FINANCIAL / ECONOMIC IMPACT The $1,250,000 available for trail projects augments existing limited trail funding allowing these funds to be used for other needed trail projects. The project appropriation of $1,250,000 for the trail projects includes $12,500 for 1% Art in Public Places (APP). Of this amount $9,750 will be transferred to the APP project in the Cultural Services and Facilities Fund for the artwork and the remaining $2,750 will be transferred to the same fund for the maintenance of the artwork and operations of the APP program. The total amount transferred to APP will be $12,500 or 1% of the total project cost. Funding for the annual operation and maintenance cost of the 1.0 mile of new trail from Fossil Creek Driver to Trilby Road is estimated at $10,000 and will be included in the 2015 Parks trail maintenance Budgeting for Outcomes offer. The relocated Poudre Trail annual operation and maintenance cost at the Woodward Technology Center is in existing Parks budgets. ENVIRONMENTAL IMPACTS The new trail location along Shields Street has been reviewed by the Natural Areas staff and will be located close to the street to minimize impacts to the natural areas. The relocated Poudre Trail at the Woodward Technology Center will not be located right next to the river, as it is now. The new trail section will provide nice views of the river as it traverses the restored natural area. BOARD / COMMISSION RECOMMENDATION The Parks and Recreation Board and the Land Conservation Board were informed of the project over the past year through staff updates. The Boards were supportive of these projects. PUBLIC OUTREACH The trail project from Fort Collins to Loveland was discussed with the community during the 2008 Parks and Recreation Policy Plan update and is listed on the City’s trail development web page. The Poudre Trail relocation at the Woodward Technology Center has been shown at several open houses for the Woodward project in 2013. ATTACHMENTS 1. Woodward Proposed Trail Map 2. Xcel Loveland Trail Map ATTACHMENT 1 140 of 402 ATTACHMENT 2 141 of 402 - 1 - ORDINANCE NO. 141, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE FROM THE PUBLIC SERVICE COMPANY INTO THE CAPITAL PROJECTS FUND FOR THE TRAIL ACQUISITION AND DEVELOPMENT - SPECIAL FUNDS PROJECT WHEREAS, pursuant to Ordinance Nos. 008, 009, 010, and 011, 2013, as adopted by the City Council in January 2013, the Public Service Company has paid to the City $2 million in exchange for certain easements across natural areas in the City; and WHEREAS, Public Service Company sought the easements in order to complete its west main natural gas pipeline project through portions of the Coyote Ridge, Colina Mariposa, Hazaleus, and Kingfisher Natural Areas; and WHEREAS, these funds are to be used on projects which help mitigate the impacts of the easements on the community; and WHEREAS, City staff recommends that $1,000,000 of these funds be used for the construction of a ten-foot wide concrete regional trail on the east side of Shields Street from Fossil Creek Drive to Trilby Road; and WHEREAS, City Council approved completion of this regional trail in the adopted Parks and Recreation Policy Plan; and WHEREAS, City staff recommends that $250,000 of these funds be used to remove the section of the Poudre Trail that is on the Woodward Technology Center site and to relocate the trail within the restored natural area; and WHEREAS, the remaining $750,000 of the Public Service Company funds will be used to acquire, restore or otherwise improve natural areas along the Poudre River; and WHEREAS, the $750,000 for natural areas was previously appropriated in Ordinance No. 90, 2013, leaving $1,250,000 for the other trail projects to be appropriated with this ordinance into the Capital Projects Fund Trail Acquisition and Development - Special Funds Project; and WHEREAS, Article V, Section 9, of the City Charter permits 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 all unanticipated Public Service Company revenue, as described herein, will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2013. 142 of 402 - 2 - WHEREAS, Article V, Section 10(b), of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund to another fund, provided that the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from unanticipated revenue in the Capital Projects Fund the sum of ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($1,250,000) for the Trail Acquisition and Development - Special Funds Project. Section 2. That the unexpended appropriated amount of TWELVE THOUSAND FIVE HUNDRED DOLLARS ($12,500) in the Capital Projects Fund - Trail Acquisition and Development - Special Funds Project is hereby authorized for transfer to the Cultural Services and Facilities Fund and appropriated therein for the Art in Public Places Program. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 143 of 402 Agenda Item 16 Item # 16 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Cory Christensen, Police Captain Gerry Paul, Director of Purchasing & Risk Management SUBJECT First Reading of Ordinance No. 142, 2013, Authorizing the Appropriation of Prior Year Reserves in the General Fund for the Police Dispatch Radio Console Replacement Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate $250,000 from Camera Radar reserves and $554,658 from the existing Police Services budget to fund the replacement of Police dispatch equipment that has reached the end of its useful life. The total cost to replace the equipment is approximately $804,658. The equipment will be procured via City purchasing regulations and procedures to maximize the purchasing value of public funds following a fair and equitable process. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The current dispatch radio consoles were purchased in 1999/2000 during our migration from UHF to 800 MHz radio. The consoles are at their end of useful life and are outdated “analog” technology. Police Services needs to upgrade to “IP” based consoles to support upcoming version software upgrades that require an IP based system. Police Services is also expanding its current 12-position system to a 16- position to accommodate growth and ensure system viability for many years. FINANCIAL / ECONOMIC IMPACT The Police Department has effectively managed its budget to fund this anticipated expense. The proposed Ordinance appropriation of $250,000 from Camera Radar reserves will be combined with $554,658 from existing Police Services budget for the dispatch console replacement. 144 of 402 - 1 - ORDINANCE NO. 142, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF PRIOR YEAR RESERVES IN THE GENERAL FUND FOR THE POLICE DISPATCH RADIO CONSOLE REPLACEMENT PROJECT WHEREAS, the City of Fort Collins Police Services (the “FCPS”) dispatch console equipment was originally purchased in 1999; and WHEREAS, such equipment employs outdated analog technology and has reached the end of its useful life; and WHEREAS, the consoles need to be upgraded to an Internet Protocol (“IP”) based system with additional position expansion, to ensure software and system capacity and viability into the future; and WHEREAS, the estimated cost for the equipment replacement is $804,658; and WHEREAS, the funds to purchase the equipment will come from $250,000 in the Camera Radar reserve in the General Fund and $554,658 from the existing FCPS 2013 operating budget; and WHEREAS, FCPS has managed its budget to fund this anticipated replacement of operational equipment; 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. 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 General Fund the sum of TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) to fund the Police Dispatch Radio Console equipment replacement. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 145 of 402 - 2 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 146 of 402 Agenda Item 17 Item # 17 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Cory Christensen, Police Captain SUBJECT First Reading of Ordinance No. 143, 2013, Authorizing the Appropriation of Keep Fort Collins Great Reserves for the Purchase of Additional Body-Worn Cameras. EXECUTIVE SUMMARY Police Services is seeking to appropriate $182,000 from the KFCG reserves for the purchase of 40 more body-worn cameras for on-duty police officers. STAFF RECOMMENDATION Staff recommends adoption of this Ordinance on First Reading. Staff recommends that this item be funded using a portion of Keep Fort Collins Great (KFCG) reserves. This item meets the mission of added transparency in police service delivery. BACKGROUND / DISCUSSION In January 2012, Police Services began researching and testing camera systems worn by the individual police officers. In August 2012, District One Officers deployed two body-worn cameras for testing in the field. Due to the success of these devices, further deployment was presented to Council for approval. Following that approval, a total of 20 cameras were purchased and deployed for full time use by select officers. Those cameras began operation in January 2013. The intent was always to expand the use of the body-worn cameras to increase transparency, accountability and evidence collection offered by this tool. The current request would increase the number of cameras deployed to 60 and covers the cost of equipment, warranty on the equipment and video storage for a period of 5 years. FINANCIAL / ECONOMIC IMPACT The funding would be drawn from the current KFCG reserves. PUBLIC OUTREACH The initial implementation of the body-worn cameras was covered extensively in the local media, including the Coloradoan and the Collegian. This program is also often discussed in several local public forums. ATTACHMENTS 1. TASER Quotation 147 of 402 Page 1 of 3 TASER International Protect Truth 17800 N 85th St. Scottsdale, Arizona 85255 United States Phone: (800) 978-2737 Fax: (480) 991-0791 Cory Christensen (907) 416-2394 (970) 221-6284 cchristensen@fcgov.com Quotation Quote: Q-03219-1 Date: 8/8/2013 12:16 PM Quote Expiration: 12/31/2013 Contract Start Date*: 1/16/2014 Contract Term: 5 years Bill To: FORT COLLINS POLICE SERVICES P.O. BOX 580 FORT COLLINS, CO 80522 US Ship To: Cory Christensen FORT COLLINS POLICE SERVICES 2221 S. TIMBERLINE ROAD FT COLLINS, CO 80525 US SALESPERSON PHONE EMAIL DELIVERY METHOD PAYMENT METHOD Andrew Grayson 800-978-2737 agrayson@taser.com Net 30 *Note this will vary based on the shipment date of the product. Year 1 Payment Net 30 QTY PART # DESCRIPTION UNIT PRICE Total Before Discount DISC ($) NET TOTAL 40 85121 ANNUAL EVIDENCE.COM: YEAR 1 USD 30,000.00 USD 540.00 USD 29,460.00 40 73009 COLLAR/VERSATILE/CAP MOUNT, FLEX 29.95 USD 1,198.00 USD 1,198.00 USD 0.00 7 73016 ETM, 6 CAMERA BAYS, 6 CONTROLLER BAYS, AXON FLEX 1499.95 USD 10,499.65 USD 0.00 USD 10,499.65 3,000 85035 EVIDENCE.COM STORAGE $1.50 / GB per year USD 4,500.00 USD 0.00 USD 4,500.00 Year 1 Payment Net 30 Total: USD 46,197.65 Year 1 Payment Net 30 Net Price: USD 44,459.65 Year 2 Payment QTY PART # DESCRIPTION UNIT PRICE Total Before Discount DISC ($) NET TOTAL 40 85221 ANNUAL EVIDENCE.COM: YEAR 2 USD 30,000.00 USD 10,850.80 USD 19,149.20 40 85037 ANNUAL FLEX MAINTENANCE USD 5,318.00 USD 1,861.20 USD 3,456.80 3,000 85035 EVIDENCE.COM STORAGE $1.50 / GB per year USD 4,500.00 USD 1,560.00 USD 2,940.00 Year 2 Payment Total: USD 39,818.00 Page 2 of 3 Year 3 Payment QTY PART # DESCRIPTION UNIT PRICE Total Before Discount DISC ($) NET TOTAL 60 85321 ANNUAL EVIDENCE.COM: YEAR 3 USD 45,000.00 USD 16,803.00 USD 28,197.00 40 85037 ANNUAL FLEX MAINTENANCE USD 5,318.00 USD 1,861.20 USD 3,456.80 3,000 85035 EVIDENCE.COM STORAGE $1.50 / GB per year USD 4,500.00 USD 1,560.00 USD 2,940.00 Year 3 Payment Total: USD 54,818.00 Year 3 Payment Net Price: USD 34,593.80 Year 4 Payment QTY PART # DESCRIPTION UNIT PRICE Total Before Discount DISC ($) NET TOTAL 60 85421 ANNUAL EVIDENCE .COM: YEAR 4 USD 45,000.00 USD 16,803.00 USD 28,197.00 60 85037 ANNUAL FLEX MAINTENANCE USD 7,977.00 USD 2,791.80 USD 5,185.20 5,000 85035 EVIDENCE.COM STORAGE $1.50 / GB per year USD 7,500.00 USD 2,600.00 USD 4,900.00 Year 4 Payment Total: USD 60,477.00 Year 4 Payment Net Price: USD 38,282.20 Year 5 Payment QTY PART # DESCRIPTION UNIT PRICE Total Before Discount DISC ($) NET TOTAL 60 85037 ANNUAL FLEX MAINTENANCE USD 7,977.00 USD 2,791.80 USD 5,185.20 60 85521 ANNUAL EVIDENCE.COM: YEAR 5 750.00 USD 45,000.00 USD 16,803.00 USD 28,197.00 5,000 85035 EVIDENCE.COM STORAGE $1.50 / GB per year USD 7,500.00 USD 2,600.00 USD 4,900.00 Year 5 Payment Total: USD 60,477.00 Year 5 Payment Net Price: USD 38,282.20 Subtotal USD 181,163.85 Estimated Shipping Cost USD 136.50 Grand Total USD 181,300.35 149 of 402 Page 3 of 3 TASER International, Inc.’s Sales Terms and Conditions for Direct Sales to End User Purchasers By signing this Quote, you are entering into a contract and you certify that you have read and agree to the provisions set forth in this Quote and TASER’s current Sales Terms and Conditions for Direct Sales to End User Purchasers or, in the alternative, TASER’s current Sales Terms and Conditions for Direct Sales to End User Purchasers for Sales with Financing if your purchase involves financing with TASER. If your purchase includes the TASER Assurance Plan (TAP), then you are also agreeing to TASER’s current Sales Terms and Conditions for the AXON Flex™ and AXON Body™ Cameras TASER Assurance Plan (U.S. Only) and/or Sales Terms and Conditions for the X2/X26P and TASER CAM HD Recorder TASER Assurance Plan (U.S. Only), as applicable to your product purchase. All of the sales terms and conditions, as well as, the TAP terms and conditions are posted at http://www.taser.com/sales-terms-and-conditions. If your purchase includes AXON hardware and/or EVIDENCE.com services you are also agreeing to the terms in the EVIDENCE.com Master Service Agreement posted at http://www.taser.com/serviceagreement0213. The sale of the Professional Services is subject to the parties execution of TASER’s Professional Services Agreement and a Statement of Work. You represent that you are lawfully able to enter into contracts and if you are entering into this agreement for an entity, such as the company, municipality, or government agency you work for, you represent to TASER that you have legal authority to bind that entity. If you do not have this authority, do not sign this Quote. Signature: /s1/ Date: /d1/ Name (Print): /n1/ Title: /t1/ PO# (if needed): /p1/ Please sign and email to Andrew Grayson at agrayson@taser.com or fax to (480) 991-0791 THANK YOU FOR YOUR BUSINESS! ‘Protect Life’ and © are trademarks of TASER International, Inc., and TASER® is a registered trademark of TASER International, Inc., registered in the U.S. © 2013 TASER International, Inc. All rights reserved. 150 of 402 - 1 - ORDINANCE NO. 143, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE APPROPRIATION OF KEEP FORT COLLINS GREAT RESERVES FOR THE PURCHASE OF ADDITIONAL BODY-WORN CAMERAS WHEREAS, body-worn cameras provide increased transparency, accountability, and evidence collection for on-duty police officers; and WHEREAS, the City of Fort Collins Police Services Department (the “FCPS”) initially field tested body-worn cameras in 2012; and WHEREAS, in January, 2013, City Council approved FCPS to proceed with the purchase and implementation of 20 additional cameras for on-duty District One police officers; and WHEREAS, FCPS is requesting $182,000 from the Keep Fort Collins Great (“KFCG”) Police Reserve for the acquisition of 40 additional cameras, which amount includes the cost of equipment, warranty, and video storage for five years; 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from prior year reserves in the Keep Fort Collins Great Fund the sum of ONE HUNDRED EIGHTY TWO THOUSAND DOLLARS ($182,000) for the purchase of 40 body-worn cameras for Fort Collins Police Services. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 151 of 402 - 2 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 152 of 402 Agenda Item 18 Item # 18 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lindsay Kuntz, Real Estate Specialist Timothy Kemp, Civil Engineer SUBJECT First Reading of Ordinance No. 144, 2013, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the Horsetooth Road and Timberline Road Intersection Improvements Project. EXECUTIVE SUMMARY The purpose of this item is to obtain authorization from City Council to use eminent domain, if deemed necessary, to acquire property interests needed to construct improvements at the Horsetooth Road and Timberline Road intersection. The Horsetooth Road and Timberline Road Intersection Improvements Project will construct safety and congestion mitigation improvements at the intersection. The project is planned to begin construction in the summer of 2014 and be completed in the fall of 2014. The project budget consists of both federal and local funds. To construct these improvements, the City will need to acquire certain property interests adjacent to the project area. The acquisitions include right-of-way and temporary easements from thirteen property owners. Timely acquisition of the property is necessary to meet the anticipated construction schedule. Staff fully intends to negotiate in good faith with all affected owners, and is optimistic that all property negotiations can be completed prior to the start of the Project. Staff is requesting authorization of eminent domain for all property acquisitions for the Project to comply with federal acquisition requirements. Eminent domain action will be used only if such action is deemed necessary. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2011, the Engineering Department completed an Arterial Intersection Prioritization Study which listed the Horsetooth Road and Timberline Road intersection as a top ranked location for needed safety and operational improvements. Existing problems which brought this intersection to the top of the list include: higher than average vehicle accident rates, significant congestion during peak hour travel times, and intersection delay for all transportation modes. The project will include multi-modal facility improvements to create a safer and more efficient intersection for all users. The Project will construct four new turn lanes, landscaped medians, underground utility improvements, water quality enhancements and bicycle/pedestrian improvements. The intersection traffic model shows a forty percent (40%) increase in peak hour traffic counts at this intersection in the year 2035. The proposed turn lane improvements are as follows: 153 of 402 Agenda Item 18 Item # 18 Page 2 Construction of dual left turns for northbound and southbound Timberline Construction of a southbound, dedicated right turn lane (Timberline to Horsetooth) Construction of an eastbound, dedicated right turn lane (Horsetooth to Timberline) The goals of this project are: Relieve congestion for the current and projected traffic Reduce accidents by modifying the intersection geometry and changing the signal timing Improve air quality by reducing vehicle wait time (delay) Construct landscaping improvements in the medians and parkways Install enhanced crosswalks and pedestrian islands The necessary property acquisitions include fee simple and temporary easements. Given the construction schedule for the Project, timely acquisition of the property interests is necessary. Since the project is partially funded with federal funds, all aspects of the project, including property acquisitions, must comply with procedures identified for federally funded projects. The acquisition phase of the project will conform to the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 as Amended (Public Law 91-646). In accordance with these regulations, the City must inform property owners about the possible use of eminent domain and their rights pursuant to Colorado Statute in the official Notice of Intent Letter. Prior to appraisals, this letter is the official first step in the acquisition phase. Authorization for the use of eminent domain from City Council is needed prior to sending this information to property owners. Staff has met with property owners to discuss the project and impacts to their properties. Staff notified property owners at those meetings that they would be presenting an ordinance to City Council requesting approval to use eminent domain to acquire necessary property interests if needed. Staff received no objections to the proposed request. Staff is optimistic that all property negotiations can be completed in good faith. Given the recommended construction schedule for the project, and the fact that the City must conduct acquisitions under procedures for federally funded projects, timely acquisition of the property interests is necessary. Staff is requesting authorization of eminent domain, only if such action is deemed necessary, for all property acquisitions for the project. The affected property owners were notified by certified mail of this request to Council for authorization of eminent domain prior to the first reading of this Ordinance. FINANCIAL / ECONOMIC IMPACT The project is funded through the Building on Basics (BOB) Intersection Funds from the voter approved quarter-cent sales tax; along with a Federal Grant from the North Front Range Metropolitan Planning Organization (NFR-MPO) in the category of Congestion Mitigation and Air Quality (CMAQ). Ordinance No. 013, 2013 and Resolution 2013-003, approved by Council in February, 2013, appropriated the unanticipated grant revenue into the Capital Project and authorized the Mayor to execute an Intergovernmental Agreement (IGA) with the Colorado Department of Transportation (CDOT). The total project budget is $3,300,000 ($3.3 M) which includes design, right-of-way and construction. The following table lists the funding sources and amounts associated with the CMAQ grant: Funding Summary (2013-2014) Funding Source Funding Amount CMAQ Federal Grant (CDOT) $391,001 BOB Intersection Existing Appropriations (City Match) $81,279 BOB Intersection Existing Appropriations (City Overmatch) $2,827,720 Total Anticipated Funding $3,300,000 154 of 402 Agenda Item 18 Item # 18 Page 3 Short and long term economic benefits of the reconstructed intersection will be realized by the following: Easing of traffic congestion resulting in reduced fuel consumption and improved air quality Decrease in accident and delay costs (as calculated per the Highway Safety Manual) ENVIRONMENTAL IMPACTS The project will have a positive impact on short and long term air quality by reducing vehicle delay, total stops, fuel consumption and vehicle emissions. Upon completion of the project, the traffic modeling shows the peak hour delay will be reduced by twelve percent (12%) in the morning and eighteen percent (18%) in the evening. A twenty-six percent (26%) decrease in accidents is projected, given the revised intersection geometry and signal timing. As part of the criteria for accepting the CMAQ funding, the City’s Traffic Department will monitor the intersection after the proposed improvements have been constructed at regular, on-going intervals. The collected data will be compared to the pre-construction conditions and the expected results of the traffic modeling. Other environmental benefits stemming from the project: An improved storm sewer system with water quality features Landscape enhancements in the medians and parkway areas The addition of a dedicated bicycle lane for eastbound Horsetooth Road PUBLIC OUTREACH The project team plans public outreach throughout the project, including public open houses, individual meetings with property owners, and project updates to be posted on the project’s website, <http://www.fcgov.com/engineering/horsetooth-timberline.php> and the FC Trip website. ATTACHMENTS 1. Project Location Map 155 of 402 156 of 402 Attachment 1 – Page 2 of 2 Horsetooth Road and Timberline Road Intersection Improvements Project 157 of 402 - 1 - ORDINANCE NO. 144, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING ACQUISITION BY EMINENT DOMAIN PROCEEDINGS OF CERTAIN LANDS NECESSARY TO CONSTRUCT PUBLIC IMPROVEMENTS IN CONNECTION WITH THE HORSETOOTH ROAD AND TIMBERLINE ROAD INTERSECTION IMPROVEMENTS PROJECT WHEREAS, the Horsetooth Road and Timberline Road Intersection Improvements Project (the “Project”) is scheduled to begin construction in 2014; and WHEREAS, the Project involves the construction of road and utility improvements, landscaped medians, water quality enhancements, bicycle and pedestrian improvements, and other necessary improvements; and WHEREAS, the Project will relieve congestion and improve the safety, operations, and aesthetics at the intersection; and WHEREAS, it is necessary for the City to acquire certain property rights hereinafter described on Exhibits “A” through “S”, attached hereto and incorporated herein by this reference (the “Exhibits”), for the purpose of constructing the Project; and WHEREAS, the City will negotiate in good faith for the acquisition of said property rights from the owners thereof; and WHEREAS, the acquisition of the property rights is desirable and necessary for the construction of the Project, is in the City’s best interest and enhances public health, safety, and welfare; and WHEREAS, the acquisition of such property rights may, by law, be accomplished through eminent domain. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds and determines that is necessary in the public interest to acquire the property rights described on the Exhibits for the purpose of the Project. Section 2. That the City Council hereby authorizes the City Attorney and other appropriate officials of the City to acquire the said property rights for the City by eminent domain proceedings. Section 3. The City Council finds, in the event that acquisition by eminent domain of the property rights described in this Ordinance is commenced, that immediate possession is necessary for the public health, safety and welfare. 158 of 402 - 2 - Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 159 of 402 Exhibit "A" 160 of 402 Exhibit "B" 161 of 402 Exhibit "C" 162 of 402 Exhibit "D" 163 of 402 Exhibit "E" 164 of 402 Exhibit "F" 165 of 402 Exhibit "G" 166 of 402 Exhibit "H" 167 of 402 Exhibit "I" 168 of 402 169 of 402 Exhibit "J" 170 of 402 Exhibit "K" 171 of 402 Exhibit "L" 172 of 402 Exhibit "M" 173 of 402 Exhibit "N" 174 of 402 Exhibit "O" 175 of 402 Exhibit "P" 176 of 402 Exhibit "Q" 177 of 402 Exhibit "R" 178 of 402 Exhibit "S" 179 of 402 180 of 402 181 of 402 182 of 402 183 of 402 184 of 402 185 of 402 186 of 402 187 of 402 188 of 402 Agenda Item 19 Item # 19 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Wanda Nelson, City Clerk SUBJECT Resolution 2013-087 Making an Appointment to the Downtown Development Authority. EXECUTIVE SUMMARY This Resolution fills one vacancy on the Downtown Development Authority. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION A vacancy currently exists on the Downtown Development Authority due to the resignation of Jerry Kennell. Councilmembers Bob Overbeck and Ross Cunniff interviewed new applicants for the vacancy. The interview team is recommending Justin Larson to fill the current vacancy, with a term to begin immediately and will expire on December 31, 2015. 189 of 402 - 1 - RESOLUTION 2013-087 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AN APPOINTMENT TO THE DOWNTOWN DEVELOPMENT AUTHORITY WHEREAS, C.R.S. Section 31-25-805 authorizes the City Council to appoint the members of the Downtown Development Authority; and WHEREAS, a vacancy currently exists on the Downtown Development Authority due to the resignation of Jerry Kennell; and WHEREAS, the City Council desires to make an appointment to fill the vacancy. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following named person is hereby appointed to fill the current vacancy on the Downtown Development Authority, with a term to begin immediately and to expire as set forth after the name: Downtown Development Authority Expiration of Term Justin Larson December 31, 2015 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 190 of 402 Agenda Item 24 Item # 24 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Beth Sowder, Neighborhood Services Manager SUBJECT Second Reading of Ordinance No. 128, 2013, Amending Article IV of Chapter 20 of the City Code Pertaining to the Outdoor Storage of Materials. EXECUTIVE SUMMARY This Ordinance, adopted on First Reading on September 17, 2013, by a vote of 4-1 (Nays: Troxell; Campana, Horak absent), addresses ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. On First Reading, Council directed staff to make some changes to the proposed ordinance and bring them back for Second Reading on October 15. The changes include: The title of the new provision has been changed from “excessive” storage to “improper” storage to clarify that improper storage is not solely a function of the quantity of materials stored. The new provision has been incorporated into the same Code section as another, existing provision dealing with the outdoor storage of construction materials, since both provisions deal with the outdoor storage of materials. The language dealing with health and safety concerns has been eliminated from the new provision since there is already a subsection of the rubbish provisions of the Code that deals with health and safety concerns resulting from an accumulation of materials. The provision has been re-worded so that the presence of at least three of the enumerated problems will constitute a violation. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary, September 17, 2013 (w/o attachments) 191 of 402 COPY COPY COPY ATTACHMENT 1 DATE: September 17, 2013 STAFF: Mike Gebo Beth Sowder AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Items Relating to Exterior Property Maintenance. A. First Reading of Ordinance No. 128, 2013, Amending Article IV of Chapter 20 of the City Code Pertaining to the Outdoor Storage of Personal Property. B. First Reading of Ordinance No. 129, 2013, Amending Section 5-47 of the City Code Pertaining to the International Property Maintenance Code. EXECUTIVE SUMMARY The purpose of this item is to propose Code amendments that will address ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. This item focuses on three items that have a significant impact to the neighborhood and the general public because they are viewable from the public right-of-way. Neighbors have expressed that these conditions have a negative impact on their property values, enjoyment of their properties, and a general feeling of neglect and deterioration. The three proposed Code amendments include: • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way The above items are Phase 1 of this topic. Phase 2 will include excessive personal property and inoperable motor vehicle storage in back yards. Phase 2 is scheduled for City Council consideration on November 5, 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Over the past several years, citizens have complained and inquired about residential properties that appear unkempt, deteriorated, and in disrepair. Staff addressed concerns at the identified properties that were violations of the Municipal Code; however, there continued to be existing, on-going issues that could not be resolved under the current Code. In response to those continued concerns, staff researched what other communities have done, explored other options, and discussed it with City Council at two work sessions. Staff documented the properties in Fort Collins that have various exterior property maintenance issues that negatively impact their neighborhood but are not currently in violation of the Code. There are relatively few properties that meet this description (less than a dozen), but neighbors continue to say that these properties have a significant negative impact on their neighborhood. Many of these properties have been deteriorating for several years, even decades in some cases. Some negative impacts expressed by neighbors include: declining property values, loss of enjoyment of their property, safety hazards, unwanted wildlife and insects, and a general feeling that no one cares about their neighborhood. City Council has discussed this issue at two work sessions – March 12, 2013 and July 23, 2013 (Attachments 1 and 2). At the July 23 Work Session, Council directed staff to bring Phase 1 items to Council for consideration now, and to schedule the Phase 2 items in the fall (they are scheduled for November 5, 2013). Phase 1 includes: 192 of 402 COPY COPY COPY September 17, 2013 -2- ITEM 19 • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way Deficient Structures The currently adopted 2006 International Property Maintenance Code (IPMC) specifically exempts owner-occupied dwellings from the “substandard” classification addressing interior and exterior conditions. Substandard can be defined as defects that need repair or maintenance and have not yet been declared “dangerous”. Dangerous is defined as an imminent risk to the occupant or the public. When an owner-occupant fails to maintain the exterior of their property, the building can continue to degrade and over time deteriorate to a condition resembling “dangerous” resulting in costly repairs and becoming unsightly to an extent that property values throughout the neighborhood can be adversely affected. (See Attachment 3 for photo examples) A new classification of “deficient” is proposed that would be applicable to all buildings including owner-occupied dwellings. Deficient would be defined as, “a structure that through neglect, disrepair, or lack of maintenance (1) is no longer considered to be weather resistant using approved materials, or (2) allows the entrance of rodents or insects through holes in the exterior envelope, or (3) has exterior materials which are displaced or lack sufficient covering to provide the weather resistant barrier originally approved.” Owners of buildings that are declared to be deficient would be notified of the specific issues and be given suggestions on how to best mitigate the deficiencies. Building Services staff would work with the owner, provide contact information for private support services, and allow a reasonable time for corrections. Owners of deficient properties have the right to appeal any orders of the building official as described in the IPMC to the Building Review Board and in only extreme deficient cases, could the owner be subject to a citation and fine of up to $1,000 per day. Vacant & Dangerous Buildings Registry The currently adopted 2006 International Property Maintenance Code (IPMC) establishes processes that the City can use to monitor vacant buildings and includes actions needed to be taken when a building becomes dangerous. The majority of vacant buildings throughout the City require no City involvement because the owner or responsible party are providing the oversight, and there is no unlawful activity occurring. The vacant properties that are most problematic are those that are continually broken into or are open and unsecured or used for illegal activities. The City will post these buildings as “dangerous” and require that the owner install appropriate security measures and provide ongoing monitoring. Some owners of these vacant and dangerous buildings live out of state, and the City will notify the owner when a violation is identified. It can take the out-of-state owner a number of days to correct the violation, mainly because the owner is trying to contact someone locally who is willing to make the corrections. With the proposed Vacant and Dangerous Building Registry program, an owner of a vacant building, that has been declared a “dangerous” building by Building Services, will be required to identify a local person who assumes the responsibility for assuring that the property is secured from unlawful entry and who can act on behalf of the owner to address and correct violations at that property. Owners of Vacant and Dangerous buildings have the right to appeal any orders of the building official as described in the IMPC to the Building Review Board and in only extreme cases, could the owner be subject to a citation and fine of up to $1,000 per day, or an order to demolish the “dangerous” structure. Excessive Storage of Personal Property Viewable from the Public Right-of-Way Currently, the Code prohibits the storage of all items that are not customarily stored outside in residential areas (e.g. indoor furniture, car parts, appliances, etc.) either in public view or viewable from ground level of a neighboring property. Additionally, the Code does not allow the storage of any rubbish or trash. The Code currently does not limit the amount of personal property that can be stored on any portion of the property if it consists of items that are customarily stored outdoors in a residential area (e.g. yard equipment, outdoor furniture/ornaments, tools, barbecue grills, landscaping materials, etc.). This proposal attempts to address the excessive storage of personal materials stored in public view. It does not prohibit the storage of items customarily stored outdoors in a residential neighborhood; rather, it addresses the amount of items as well as the duration of time that they can be stored in public view. Because it is very difficult to define 193 of 402 COPY COPY COPY September 17, 2013 -3- ITEM 19 “excessive” storage, this proposal takes several factors into consideration in order to declare a violation. (See Attachment 4 for photo examples) The factors taken into consideration include: • total amount of personal materials stored outdoors in public view • duration of personal materials stored outdoors in public view • general overall appearance of the stored materials • level of deterioration or disrepair of the stored materials • potential or actual negative impact of the materials on property values or loss of enjoyment of property of neighboring residential properties • potential for the stored materials to house rodents, insects, or other vermin • whether the materials are stored in the applicable property setback Additionally, this proposal includes an appeal process. If a property owner disagrees with a declaration of an excessive storage violation, they would have the option to appeal it to the Community Development & Neighborhood Services Director. Violations of this Code would be civil infractions with fines assessed as a penalty for non-compliance. As with current Code Compliance practices, a notice of violation would be sent to the property owner of record (as well as the tenant and property manager, if known) giving them three weeks to correct the violation before a citation would be issued. Staff can also work with property owners to refer them to available and appropriate resources or assistance programs and to give them an additional, reasonable amount of time to correct the violation focusing on achieving voluntary compliance whenever possible. If they do not comply, a civil citation can be issued to the property owner, tenant (if any), or property manager (if any) assessing a fine and still requiring compliance. Anyone who receives a citation also has the right to request a hearing in front of the Municipal Court Referee or Judge. FINANCIAL / ECONOMIC IMPACTS It is anticipated that there will be very little financial impact to the City related to enforcement of these code amendments. There are relatively few properties that will be impacted, and the City already responds to inquiries about these properties now. There may be some economic benefit to addressing these properties because of the increase, or perceived increase, in property values and increased level of neighborhood quality. There will be an economic burden on the property owners that must make corrections to comply with the Code requirements. ENVIRONMENTAL IMPACTS This item could potentially improve the environment by reducing the harborage or infestation of rodents/insects and by improving the physical appearance of neighborhoods. BOARD / COMMISSION RECOMMENDATION The Affordable Housing Board and the Building Review Board both heard presentations about this item, although neither Board provided a recommendation. The Affordable Housing Board provided feedback that the code changes could add new financial burdens to struggling low-income households, and suggested that “excessive accumulation of storage” should be defined clearly. Staff explained that the Larimer Home Improvement Program would be available to help people who qualify financially and that staff would be able and willing to work with affected households regarding time and possible solutions. (Attachment 7) The Building Review Board provided feedback that there were specific reasons why owner-occupied units were excluded from the International Property Maintenance Code (IPMC) requirements when they were adopted and expressed concern that the new “deficient” category holds some similar requirements. (Attachment 6) 194 of 402 COPY COPY COPY September 17, 2013 -4- ITEM 19 PUBLIC OUTREACH Public Outreach to date includes: • Coloradoan Article • CityNews • Neighborhood News • Focus Group meetings • Fort Collins Board of Realtors Governmental Affairs group meetings • Social Media • Affordable Housing Board – June 6, 2013 and September 5, 2013 • Building Review Board – July 25, 2013 Feedback included primarily support for these items. Most of the people who have expressed a high level of support are immediate neighbors of the identified problem properties. Most people who expressed opposition to these code changes stated that they feel it is too much government intervention. One common area of concern from stakeholders as well as the Affordable Housing Board was whether there would be any assistance available for people who cannot afford to make the necessary corrections. Staff confirmed that the Larimer Home Improvement Program could be utilized by people who meet the income qualifications to get assistance for needed home repairs (Attachment 5). Additionally, staff would be able to work with people regarding the amount of time they need to make the necessary corrections. ATTACHMENTS 1. Council Work Session Summary Memo March 12, 2013 2. Council Work Session Summary Memo July 23, 2013 3. Photo Examples of Deficient Structures 4. Photo Examples of Excessive Storage of Personal Property 5. Larimer Home Improvement Program Brochure 6. Building Review Board Minutes, July 25, 2013 7. Affordable Housing Board Minutes 8. PowerPoint Presentation 195 of 402 - 1 - ORDINANCE NO. 128, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE IV OF CHAPTER 20 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE IMPROPER OUTDOOR STORAGE OF PERSONAL PROPERTYMATERIALS WHEREAS, the City Council has observed a growing problem in the City regarding the quality and appearance of neighborhoods due to the presence of physically neglected properties; and WHEREAS, the neglect of individual properties can accelerate the deterioration of entire neighborhoods; and WHEREAS, City staff has periodically received various complaints from neighbors and other citizens regarding the unsightliness and hazards of residential properties with an excessive amount of storage where various kinds of materials are stored outdoors, in areas visible from public streets and sidewalks, in such quantities, manner or condition that the storage of such materials unreasonably interferes with the enjoyment and/or value of neighboring properties; and WHEREAS, Section 20-42.6 of the City Code prohibits, under certain circumstances, the outdoor storage of materials not customarily stored outdoors, such as construction materials; and WHEREAS, the City Council has determined that it is in the best interest of the health, safety and welfare of the residents of the City that Section 20-42.6 be amended to add an additional category of improper outdoor storage to address situations not presently covered by Sections 20-42.6. WHEREAS, the City Council has determined that such conditions constitute a public nuisance and should be prohibited under the nuisance provisions contained in Chapter 20 of the City Code; and WHEREAS, the City Council has determined that it is in the best interest of the health, safety, and welfare of the City that the City Code be amended to prohibit the excessive storage of personal property which is visible from any public street or sidewalk. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Chapter 20, Article IV of the Code of the City of Fort Collins is hereby amended by the addition of a new Section 20-42.7which reads in its entiretyas follows: Section 1. That Section 20-41 of the Code of the City of Fort Collins is hereby amended to add the following definition: Stored shall mean accumulated or kept for any purpose. 196 of 402 - 2 - Section 2. That Section 20-42(m) of the Code of the City of Fort Collins is hereby amended to read as follows: (m) It shall be unlawful for the owner or occupant of any property to permit Tthe accumulation of refuse and or rubbish which constitutes or may create a fire, health or safety hazard or a harborage for rodents, insects or other vermin in such numbers as may be harmful to the health or safety of occupants or passersby is unlawful and is hereby declared to be a nuisance. Section 3. That Section 20-42.6 of the Code of the City of Fort Collins is hereby amended to read as follows Sec. 20-42.7. Excessive amount of storage of personal property prohibited. Sec. 20-42.6 Improper Ooutdoor storage of materials. (a) No owner or occupant of any residential premises within the City shall cause or permit on such premises the outdoor storage of an excessive amount of personal property as said condition is more particularly addressed and regulated by provisions of this Article, and such condition is hereby declared to be a nuisance and a menace to the public welfare. This declaration of nuisance shall only apply to locations that are visible from any public street or sidewalk, and shallThe improper outdoor storage of materials in violation of this Section is hereby declared to be a nuisance and a menace to the public welfare, and no owner or occupant of any residential premises in the City shall cause or permit such condition to exist. This declaration of nuisance, and the prohibitions contained in this Section, shall apply only to locations that are visible from a public street, sidewalk, alley or from the ground level of abutting properties, and shall apply whether or not the materials are sheltered or covered or within a carport or other partially enclosed structure. The storage of materials within a garage or other fully enclosed structure shall not be considered outdoor storage for the purposes of this provision.whether or not the personal property is sheltered or covered or within a carport or other partially enclosed structure. (b) No owner or occupant of any residential premises shall permit the outdoor storage on such premises of materials not customarily stored outdoors in residential neighborhoods, such as, but not limited to, construction materials, tires and household appliances, if such materials, whether or not sheltered or covered or within a carport or other partially enclosed structure, are visible from any public street, sidewalk, alley or from the ground level of abutting properties. The storage of materials within a garage or other fully enclosed structure shall not be considered outdoor storage for the purposes of this provision. Notwithstanding the foregoing, construction materials may be stored outdoors on residential premises for a period not to exceed nine (9) months, or for such longer period of time as may have been approved by the City Manager, if such materials are being used in the construction of a structure for which a building permit has been issued by the City. 197 of 402 - 3 - (bc) For purposes of this Section, an excessive amount of personal property shall mean any amount of storage of materials that is or could be injurious to human health or welfare, or which could unreasonably interfere with the enjoyment of life or property of neighboring properties, persons, or other citizens. Officers are empowered to make a prima facie determination as to whether an excessive amount of personal property is being stored, which determination may be based upon, but not limited to, a consideration of the following factors:In addition to the prohibition contained in subsection (b), no owner or occupant of any residential premises shall otherwise permit the improper outdoor storage of materials on such premises by storing such materials in violation of this subsection (c). The presence of at least three of the following factors shall constitute the improper outdoor storage of materials under this subsection: (1) the number and size of materialsthe materials have been stored for an unreasonable period of time, taking into consideration the nature of the materials; (2) the duration the materials have been storedthe materials are in disarray and are not kept in a neat and organized manner; (3) the overall general appearance of the stored materials the materials are in a dilapidated condition or in disrepair; (4) the level of deterioration or disrepair of the stored materialsthe volume of materials is not compatible with the size and configuration of the lot where they are stored; (5) the potential or actual negative impact on property values or loss of enjoyment of neighboring propertiesthe overall appearance of the materials and the manner in which they are stored is not compatible with the character and appearance of neighboring properties; (6) the potential for the stored materials to pose a fire or safety hazard or house rodents, insects or other vermin; (7) the condition and appearance of neighboring and nearby properties. (8) any other factors tending to show the extent of the impact of stored materials on neighboring properties. 198 of 402 - 4 - Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 199 of 402 Agenda Item 25 Item #25 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lawrence Pollack, Budget & Performance Measurement Manager Darin Atteberry, City Manager Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 145, 2013, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2014; Amending the Budget for the Fiscal Year Beginning January 1, 2014, and Ending December 31, 2014; and Fixing the Mill Levy for Fiscal Year 2014. EXECUTIVE SUMMARY This Ordinance amends the adopted 2014 Budget and sets the amount of $500,514,287 to be appropriated for fiscal year 2014. Including the 2014 adopted budgets for the General Improvement District (GID) No. 1 of $194,001 and the revised Urban Renewal Authority (URA) budget of $2,191,746 the total City appropriations amount to $502,900,034. The Net City Budget, which excludes GID, URA, internal transfers between City funds, is $398,157,679 for 2014. The Net City Budget, as amended, is allocated to (amounts stated in millions of dollars): Original Amended 2014 2014 Change Operations $441.5 $451.4 $9.9 Debt Service 20.5 20.7 0.1 Capital* 26.6 30.8 4.2 Total City Appropriations** $488.6 $502.9 $14.3 General Improvement District (GID) #1 ($0.2) ($0.2) $0.0 Urban Renewal Authority (URA) (1.8) (2.2) (0.4) Internal Service Funds (57.5) (57.7) (0.3) Less Transfers to Other Funds (39.2) (44.6) (5.4) Net City Budget $390.0 $398.2 $8.2 * Capital dollars reflect non-lapsing capital project budgets ** This includes GID and URA which are appropriated in separate ordinances This Ordinance also sets the 2014 City mill levy at 9.797 mills, unchanged since 1991. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION City Council adopted the 2013‐2014 Biennial Budget and appropriated monies for expenditure in fiscal 200 of 402 Agenda Item 25 Item #25 Page 2 year 2013. State statutes and the City Charter both require an annual appropriation to cover expenses for the ensuing year (2014) based upon the adopted budget. The Second Reading must be done before the last day of November and is currently scheduled for November 5, 2013. 2014 Revenue Update The Sales and Use Tax revenue forecast model was updated in July, 2013 with data from the first six months of the fiscal year. Sales tax revenue is still projected to increase 2.6% in 2014 over 2013 collections based on the model and continued cautious optimism of the economy. This not only benefits the General Fund, but also the other dedicated sales and use tax revenues (e.g., KFCG). Light and Power revenue is also expected to come in higher than the original 2014 forecast due to a combination of energy sales and electric development fees. Development review fees collected in 2013 have also been strong and are anticipating similar revenue levels in 2014. A modest use of reserves has also been utilized to fund one‐time expenditures. The following revenue items have been modified since being presented to Council during the September 10, 2013 Work Session: ‐ Light and Power revenue is now projected to increase $3.2M over the forecast included in the adopted 2013‐2014 Budget. Previously, an increase of $5.8M had been shown. ‐ The 4 dedicated Sales and Use Tax revenues have now been included for a total of $667K. They had been excluded in the work session materials since there were no requests to use that additional revenue. The breakout of the 4 dedicated revenues are as follows: o Open Space, Yes!: $104,185 o Building on Basics (BOB) Community Enhancements: $104,185 o Pavement Management: $104,185 o Keep Fort Collins Great (KFCG): $354,229 This table displays a summary of incremental revenue, revision uses, and contributions to fund balance: General Fund New Revenue Other Reserves Utilities Total Sales & Use Tax Development Fees Dedicated Sales & Use Tax General Fund KFCG Utilities Other Light & Power Revenue Revised Revenue as of Sept. 17th $ 2.0 $ 1.6 $ 0.7 $ 5.2 $ 0.9 $ 0.2 $ 0.1 $ 3.2 $ 13.9 Recommended Budget Revisions (1.5) (0.3) 0.0 (4.3) (0.9) (0.2) (0.5) (1.0) (8.7)* Revenue saved in fund balance $ 0.5 $ 1.3 $ 0.7 $ 0.9 $ 0.0 $ 0.0 $ (0.4) $ 2.2 $ 5.2 * The total recommended budget revisions of $8.7M differs from the change in the Net City Budget $8.2M (shown above in the Executive Summary) due to one of the revisions occurring in an Internal Service Fund and the adjustments shown in the Miscellaneous section at the end of the AIS. Recommended 2014 Budget Additions After reviewing the 2014 Budget Revision requests at the September 10, 2013 work session and obtaining guidance from Council, the City Manager is recommending the adjustments listed below to 201 of 402 Agenda Item 25 Item #25 Page 3 the 2014 Budget. In addition to what was presented to Council the recommended revisions now include an additional $92,500 for the Fort Collins‐Loveland Municipal Airport. Staff was unaware of the continued need for the increased level of contribution included in the airport's 2013 budget until receiving the AIS for the airport. During the work session a question was asked about the additional $210K going to the Senior Center and whether that was the right level of incremental support. Staff will provide a follow up memo following the work session, as attached to this AIS. No changes have been included on this line item for First Reading. Recommended General Fund adjustments total $1,810,901 (ongoing of $649,959 and one‐time of $11,160,942) and recommended adjustments to Other Funds total $6,920,782 (ongoing of $710,483 and one‐time of $6,210,299) General Fund: Ongoing One‐time Agenda Management System $25,000 Arthur Ditch Culvert Replacement at Mulberry Pool 500,000 City Attorney Office Staffing (2.5 FTE)* 73,000 Development Review ‐ IT Systems Staffing (1.5 FTE Contractual) 147,270 Development Review Staffing (3.0 FTE ‐ Contractual) 200,000 Fort Collins 150 Year Museum Exhibition 50,000 Medical Marijuana Licensing Expenses 20,000 Nature in the City 129,700 Park Ranger Salary Revision 20,000 Police Senior Systems Administrator (1.0 FTE) 108,536 Potential November 2014 Special Election 175,000 School Resource Officer (1.0 FTE) 56,153 88,742 Train Horn Waiver ‐ College to Laurel 125,000 Incremental Contribution to FC‐Loveland Airport** _________ 92,500 Total General Fund Adjustments: $649,959 $1,160,942 * A portion of this Offer is funded by the Water Fund and reflected below ** The incremental airport contribution reflects the ongoing operational needs of the airport and mirrors the amount contributed in 2013. This was inadvertently omitted from the 2014 Budget Revisions previously reviewed by Council during the September 10th work session Other Funds: Ongoing One‐time North College Improvements ‐‐ Conifer to Willox $4,300,000 PC Replacement Builds (1 FTE ‐ Contractual) 97,000 PFA 2014 Budget Revision Offer 279,760 Senior Center Expansion 210,971 Climate Action Planning 60,000 Museum Local History Exhibit Cases 50,000 Forestry Work Backlog Catch‐up 50,000 Inclusionary Zoning for Affordable Housing Analysis and Ordinance Recommendation 60,000 Oil and Gas Inspection and Monitoring Program 30,000 Triple Bottom Line (TBL) Decision Framework & Toolbox 20,000 Agenda Item 25 Item #25 Page 4 Light and Power Payments in Lieu of Taxes 262,400 Light and Power Purchase Power 740,168 Fort Collins 150 Year Museum Exhibition 50,000 East‐West Transit Connections 260,000 Evening Hour Service for East‐West Transit Connections 240,000 City Attorney Office Staffing (2.5 FTE)* 210,483 Total Other Fund Adjustments: $710,483 $6,210,299 * A portion of this Offer is funded by the General Fund and reflected above Miscellaneous In addition to the recommended revisions, a few miscellaneous adjustments must be made to correct the 2014 appropriations for recent changes. The additional revenue projected to be received from Sales Tax must be appropriated for transfer to the Natural Areas Fund and Capital Projects Fund. Also, the following "clean‐up" items are included in the Amended 2014 appropriations. Art in Public Places (APP) Adjustment: $20,163 - The original 2014 APP offer was based on projects known at that time. The current proposed adjustment is based on the final 2014 budgeted capital projects and adjustments to how APP is recorded financially, which were approved by City Council in 2012. Fleet Services Bus Mechanic Position at Transfort: $67,903 - This position was included in the adopted 2013‐14 Budget; specifically in the Transit Fund. This additional appropriation is for the accounting requirements to transfer the budget from the Transit Fund to the Equipment Fund where the expense will occur. This transfer had been inadvertently excluded from the 2013‐2014 Budget. Unfund Offer 125.1 ‐ Recreational Trail Development Funded through New Trail Impact Fee: ($270,000) - The original 2013‐2014 Budget included an Offer for Recreational Trail Development Funded through New Trail Impact Fee that had been anticipated to be implemented in 2013. That fee has not been approved by City Council so there is no revenue to support that Offer. In 2013 the $270,000 appropriation in the Conservation Trust Fund was frozen so that budget amount could not be spent. For 2014 the Offer is being unfunded, so it is not included in the Annual Appropriation Ordinance. FINANCIAL / ECONOMIC IMPACT This Ordinance amends the City Budget for fiscal year 2014 and represents the annual appropriation for fiscal year 2014 in the amount of $500,514,287. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991. 203 of 402 - 1 - ORDINANCE NO. 145, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS BEING THE ANNUAL APPROPRIATION ORDINANCE RELATING TO THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR 2014; AMENDING THE BUDGET FOR THE FISCAL YEAR BEGINNING JANUARY 1, 2014, AND ENDING DECEMBER 31, 2014; AND FIXING THE MILL LEVY FOR FISCAL YEAR 2014 WHEREAS, on November 20, 2012, the City Council adopted on second reading Ordinance No. 112, 2012, approving an amended biennial budget for the years beginning on January 1, 2013, and January 1, 2014; and WHEREAS, the City Manager has submitted to the City Council proposed amendments to the 2014 budget adopted by the City Council in Ordinance No. 112, 2012; and WHEREAS, Article V, Section 4, of the City Charter requires that, before the last day of November of each fiscal year, the City Council shall appropriate, on a fund basis and by individual project for capital projects and federal or state grant projects, such sums of money as it deems necessary to defray all expenditures of the City during the ensuing fiscal year, based upon the budget as approved by the City Council; and WHEREAS, Article V, Section 5, of the City Charter provides that the annual appropriation ordinance shall also fix the tax levy upon each dollar of the assessed valuation of all taxable real property within the City, such levy representing the amount of taxes for City purposes necessary to provide for payment during the ensuing fiscal year for all properly authorized expenditures to be incurred by the City, including interest and principal of general obligation bonds; and WHEREAS, Article XII, Section 6, of the City Charter permits the City Council to fix, establish, maintain, and provide for the collection of such rates, fees, or charges for water and electricity, and for other utility services furnished by the City as will produce revenues sufficient to pay into the General Fund in lieu of taxes on account of the City-owned utilities such amount as may be established by the City Council; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged; the purpose for which the funds were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: 204 of 402 - 2 - Section 1. That the City Council, having reviewed the City Manager's recommended changes to the A2014 Proposed Appropriations@ section of the Fort Collins 2013 and 2014 Biennial Budget (the “Biennial Budget@), as shown on pages 43 through 45 thereof, a copy of which is on file with the office of the City Clerk, hereby amends the Biennial Budget to reflect the following changes and adopts said Biennial Budget as amended: 2014 Proposed Appropriations Existing Amount of Adjustment As Amended GENERAL FUND $116,687,648 $6,558,384 $123,246,032 ENTERPRISE FUNDS Golf $2,927,636 $2,927,636 Light & Power Operating Total $124,350,218 $1,002,568 $125,352,786 Capital Projects: Art in Public Places 4,750 4,750 Electric Substation Improvements 175,000 175,000 Southwest Enclave System 300,000 300,000 Capital Projects Total 479,750 479,750 Total Light & Power $124,829,968 $1,002,568 $125,832,536 Storm Drainage Operating Total $10,901,697 $21,048 $10,922,745 Capital Projects: 0 Art in Public Places 25,040 25,040 Boxelder Authority 265,000 265,000 Drainage & Detention System Replacement 253,970 253,970 Stormwater Basin Improvements 1,700,000 1,700,000 Stormwater Developer Repays 100,000 100,000 Stormwater Master Planning 150,000 150,000 Stream Restoration & Best Mgmt. Practices 650,000 650,000 Capital Projects Total 3,144,010 3,144,010 Total Storm Drainage $14,045,707 $21,048 $14,066,755 Wastewater Operating Total $16,889,054 $21,048 $16,910,102 Capital Projects: Art in Public Places 39,864 39,864 205 of 402 - 3 - Collection System Replacement 1,605,357 1,605,357 Downtown River District Sewer Replacement 50,000 50,000 Drake Water Reclamation Facility Improv. 581,000 581,000 Sludge Disposal Improvements 200,000 200,000 Water Reclamation Replacement Program 1,800,000 1,800,000 Capital Projects Total 4,276,221 4,276,221 Total Wastewater $21,165,275 $21,048 $21,186,323 Water Operating Total $26,567,389 $168,387 $26,735,776 Capital Projects: Art in Public Places 68,689 68,689 Cathodic Protection 306,000 306,000 Distribution System Replacement 1,622,935 1,622,935 Dual System Design with Colorado State Univ. 50,000 50,000 Engineering Distribution System Replacement 1,400,000 1,400,000 Halligan Reservoir Enlargement 190,000 190,000 Source of Supply Replacements 550,000 550,000 Water Meter Replacement & Rehabilitation 800,000 800,000 Water Production Replacement Program 2,900,000 2,900,000 Water Supply Development 100,000 100,000 Capital Projects Total 7,987,624 7,987,624 Total Water $34,555,013 $168,387 $34,723,400 TOTAL ENTERPRISE FUNDS $197,523,599 $1,213,051 $198,736,650 INTERNAL SERVICE FUNDS Benefits $21,905,953 $21,905,953 Data & Communications 7,412,486 205,536 7,618,022 Equipment 11,401,965 67,970 11,469,935 Self Insurance 3,258,837 3,258,837 Utility Customer Service & Administration 15,373,536 15,373,536 TOTAL INTERNAL SERVICE FUNDS $59,352,777 $273,506 $59,626,283 SPECIAL REVENUE & DEBT SERVICE FUNDS Capital Improvement Expansion $832,354 $832,354 Capital Leasing Corporation 4,630,283 4,630,283 Cemeteries 593,224 593,224 Conservation Trust Operating Total - Administration & Parks Maint $1,022,149 $1,022,149 Capital Projects: Fossil Creek Trail 40,000 40,000 206 of 402 - 4 - Open Space Acquisition 270,000 (270,000) 0 Trail Acquisition/Development 145,500 145,500 Tri-City Trails 50,000 50,000 Capital Projects Total 505,500 (270,000) 235,500 Total Conservation Trust $1,527,649 ($270,000) $1,257,649 Cultural Services & Facilities Operating Total $4,057,321 $9,924 $4,067,245 Capital Projects – Art in Public Places 86,805 10,239 97,044 Total Cultural Services & Facilities $4,144,126 $20,163 $4,164,289 General Employees' Retirement $3,527,950 $3,527,950 Keeping Fort Collins Great Operating Total $19,731,887 $659,994 $20,391,881 Capital Projects: City Bridge Program 1,700,000 1,700,000 Fort Collins Bike Programs 220,856 220,856 Senior Center Expansion 0 210,971 210,971 Trail Acquisition/Development 113,000 113,000 Capital Projects Total 2,033,856 210,971 2,244,827 Total Keeping Fort Collins Great $21,765,743 $870,965 $22,636,708 Museum $1,196,048 $100,000 $1,296,048 Natural Areas 9,401,207 9,401,207 Neighborhood Parkland Fund Operating Total - Administration $426,873 $426,873 Capital Projects: Maple Hill Park 409,198 409,198 New Park Site Acquisition 350,000 350,000 New Park Site Development 170,000 170,000 Richards Lake Park 500,000 500,000 Side Hill Neighborhood Park 200,000 200,000 Capital Projects Total 1,629,198 1,629,198 Total Neighborhood Parkland $2,056,071 $2,056,071 Perpetual Care $20,149 $20,149 Recreation 6,070,932 6,070,932 Sales & Use Tax 12,552,000 208,370 12,760,370 Street Oversizing 2,870,239 2,870,239 Timberline/Prospect SID 63,152 63,152 207 of 402 - 5 - Section 2. That there is hereby appropriated out of the revenues of the City, for the fiscal year beginning January 1, 2014, and ending December 31, 2014, the sum of FIVE HUNDRED MILLION FIVE HUNDRED FOURTEEN THOUSAND TWO HUNDRED EIGHTY-SEVEN DOLLARS ($500,514,287) to be raised by taxation and otherwise, which sum is deemed by the City Council to be necessary to defray all expenditures of the City during said budget year, to be divided and appropriated for the purposes shown in Section 1 above. Section 3. Mill Levy. a. That the 2014 mill levy rate for the taxation upon each dollar of the assessed valuation of all the taxable real property within the city of Fort Collins as of December 31, 2013, shall be 9.797 mills, which levy represents the amount of taxes for City purposes necessary to Transit Services 11,241,742 389,766 11,631,508 Transportation Services 23,882,221 209,238 24,091,459 SPECIAL REVENUE & DEBT $106,375,090 $1,528,502 $107,903,592 SERVICE FUNDS CAPITAL PROJECTS FUND General City Capital Projects: Block 32 Redevelopment $109,000 $109,000 City Bridge Program 250,000 250,000 Downtown Poudre River Improvement 75,000 75,000 Green Streets Implementation 450,000 450,000 Integrated Recycling Facility 237,000 237,000 North College Improvements - Conifer/Willox 0 4,300,000 4,300,000 Railroad Crossing Replacement 100,000 100,000 Southeast Community Park 100,000 100,000 Total General City Capital Projects $1,321,000 $4,300,000 $5,621,000 1/4 Cent Building on Basics Operating - Administrative Charge $46,363 $46,363 Capital Projects: Bicycle Program Plan Implementation 125,000 125,000 Pedestrian Plan and ADA Improvements 300,000 300,000 Senior Center Expansion 2,172,735 2,172,735 Timberline Rd-Drake to Prospect Improv. 2,736,632 2,736,632 Total 1/4 Cent Building on Basics $5,380,730 $5,380,730 TOTAL CAPITAL PROJECTS FUND $6,701,730 $4,300,000 $11,001,730 TOTAL CITY FUNDS $486,640,844 $13,873,443 $500,514,287 208 of 402 - 6 - provide for payment during the aforementioned budget year of all properly authorized expenditures to be incurred by the City, including interest and principal of general obligation bonds. b. That the City Clerk shall certify this levy of 9.797 mills to the County Assessor and the Board of Commissioners of Larimer County, Colorado, in accordance with the applicable provisions of law, as required by Article V, Section 5, of the City Charter. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 209 of 402 Agenda Item 26 Item # 26 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Lance Smith, Strategic Financial Planning Manager SUBJECT Items Relating to Utility Rates, Fees and Charges for 2014. EXECUTIVE SUMMARY A. First Reading of Ordinance No. 146, 2013, Amending Chapter 26 of the City Code to Revise the Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 147, 2013, Amending Chapter 26 of the City Code to Revise the Electric Development Fees and Charges. (Option A or Option B) C. First Reading of Ordinance No. 148, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to the Revise Water Rates and Charges. (Option A or Option B) D. First Reading of Ordinance No. 149, 2013 ,Amending Chapter 26 of the City Code to Revise the Water Plant Investment Fees. E. First Reading of Ordinance No. 150, 2013, Amending Chapter 26 of the City Code to Revise the Wastewater Rates and Charges. (Option A or Option B) F. First Reading of Ordinance No. 151, 2013, Amending Chapter 26 of the City Code of the City of Fort Collins to Revise the Sewer Plant Investment Fees. G. First Reading of Ordinance No. 152, 2013, Amending Chapter 26 of the City Code to Revise the Stormwater Plant Investment Fees. H. First Reading of Ordinance No. 153, 2013, Amending Chapter 10 of the City Code of the City of Fort Collins to Revise Floodplain Permit Fees. The purpose of this item is to adopt the 2014 Utility rates, fees and charges. The approved 2014 City Budget included small gradual rate increases in the electric, water and wastewater utilities. The rate increases being proposed in these Ordinances are consistent with or less than what is shown in the approved 2014 City Budget. 210 of 402 Agenda Item 26 Item # 26 Page 2 The table above shows the overall changes in the operational revenues for each utility. In the discussion below the rate class specific adjustments are given including modest reductions in water and wastewater rates for certain rate classes. At the request of City Council, two options are being presented for water and wastewater rate class specific adjustments (noted as “Option A” and “Option B”). Fees changes are also being proposed. Increases are proposed for the electric development fees, the stormwater plant investment fees and the floodplain permit fees. Because part of the reason the electric development fees are being proposed to increase is due to a formula correction, two options are being presented for consideration here, (noted as “Option A” and “Option B”). Water and wastewater plant investment fees are being proposed to decrease for standard connections, due to reduced average usage per customer, although the unit costs are proposed to increase. STAFF RECOMMENDATION Staff recommends adoption of the proposed Ordinances on First Reading, with the ordinances describing “Option A” being adopted for both water and wastewater rates. Staff recommends implementing the full electric development fee in 2014, as described in the Ordinance. BACKGROUND / DISCUSSION A. Proposed Monthly Utility Rate Adjustments The recommended 2014 rate changes are consistent with or less than what is shown in the approved 2014 City Budget at a utility-wide level. Individual customer increases will vary by rate class and season. All proposed rates would be effective for meter readings on or after January 1, 2014. Electric Rates - First Reading of Ordinance No. 146, 2013, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. Staff proposes a 2.0% increase in electric rates. This increase is less than in the adopted 2014 budget due to Platte River Power Authority’s rate smoothing and anticipated increase in surplus power sales revenues. The 2.0% increase in Platte River Power Authority’s wholesale rates results in a retail increase of approximately 1.5% for Fort Collins Utility customers. The increased cost for purchased power is passed through to all customer classes in the energy charge for each rate schedule with no change in the associated demand charges. Because the energy charge makes up a larger portion of the overall costs of service for large customer classes, the retail rate increases will be greater for the large commercial and industrial customers than it is for the residential and small commercial classes. In addition, the 2014 retail increase includes the second phase of funding for the Fort Collins Solar Program. This is an additional $500,000 per year for a total of $1,000,000 in annual funding for the Council approved renewable energy program. The $500,000 is approximately equivalent to a 0.5% retail rate increase. The following graph shows the proposed retail increase by season for each customer class. 2014 Proposed Rate Adjustments Utility Original 2013‐14 Budget Current Proposal Fees to Be Adjusted? Electric 3.5% 2.0% Yes Water 4.0% 4.0% Yes Waste Water 3.0% 3.0% Yes Storm Water 0.0% 0.0% Yes 211 of 402 Agenda Item 26 Item # 26 Page 3 Water Rates - First Reading of Ordinance No. 149, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Water Rates and Charges. The water rate increases being proposed in these Ordinances are the same as those outlined in the adopted 2014 budget. For the Water Utility a 4.0% increase is requested, with 3.0% being for capital improvements and 1.0% being for ongoing potential expenses related to the High Park Fire. The proposed increase will vary by rate class. The cost of service study, which forms the basis for allocating costs between rate classes and thereby the rate adjustment for each rate class, was updated in 2013. In the past these cost of service studies have been updated every four years. Going forward these studies will be updated every two years so that changes are smaller and more immediate. The previous cost of service study was done in 2009. In every study some of the operational costs are allocated to rate classes based on the average daily demand of the class. Conservation changes in recent years have varied by rate class resulting in some shifting of costs between rate classes. This has resulted in the proposed 2014 overall increase of 4.0%, varying more than expected by rate class. Based on the 2013 cost of service study update, rate class specific adjustments have been determined as shown as Option B below. These changes are much larger than 4.0% for some rate classes. In keeping with the rate design principle of gradual adjustment, staff is recommending that the adjustments to the rate classes are introduced with the rate class specific adjustments shown as Option A below. Two options for this Ordinance are being presented for consideration on First Reading, Option A and Option B. 1.6% 1.6% 1.9% 2.0% 2.2% 2.6% 2.6% 2.0% 0% 1% 2% 3% 4% Residential Residential Demand Small Commercial Medium Commercial Large Commercial Industrial Substation Rate System 2014 Proposed Electric Rate Increases Non-Summer Summer Annual 212 of 402 Agenda Item 26 Item # 26 Page 4 Wastewater Rates - First Reading of Ordinance No. 150, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Wastewater Rates and Charges The 3.0% overall rate increase being proposed in these Ordinances for wastewater is consistent with the adopted 2014 budget. As with the water increase, the proposed increase will vary by rate class based on an updated cost of service study and reflects some shifting of costs between rate classes based on average daily usage. The proposed 2014 overall increase of 3.0% based on the cost of service study results in the rate class specific adjustments shown as Option B below. These changes are much larger than 3.0% for the single family residential rate class. Just as in the case of the proposed water rate increase, staff is recommending that the adjustments to the rate classes are introduced with the rate class specific adjustments shown as Option A below. Two options for this Ordinance are being presented for consideration on First Reading, Option A and Option B. 6.6% -5.0% 0.0% 5.3% 3.5% 4.0% 9.0% -16.4% -1.8% 7.7% 3.5% 4.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Single Family Multifamily Duplex Commercial High Volume Industrial System-wide Proposed 2014 Water Rate Adjustments (Based on 2013 Water Cost of Service Study) Option A - Modified COS Option B - Full COS 6.1% -2.5% 2.8% -1.5% 3.0% 7.5% -5.6% 4.2% -3.6% 3.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Single Family Duplex Multifamily Commercial System-wide Proposed 2014 Wastewater Rate Adjustments Agenda Item 26 Item # 26 Page 5 Stormwater Rates No changes are being proposed for 2014 stormwater monthly rates. B. Proposed Utility Development Fee Changes Electric Development Fees - First Reading of Ordinance No. 147, 2013 (Option A or Option B) Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges The annual review of the Electric Development Fees indicates that a fee increase is necessary to ensure that development costs are reimbursed fairly and fully by development. The increase this year is the result of both an increase in material costs and the correction of an error in the prior fee calculation. The prior fee rate calculation model was downloading warehouse data for unjacketed 750 MCM cable; whereas, it should have been using data for 220 mil jacketed 750 MCM cable. This correction has a small contribution to the overall proposed increase shown in the tables below. Staff is presenting the same two options here as were presented to the Energy Board. Option A reflects the full implementation of the increase in 2014. Option B proposes to smooth the portion of the overall increase that is due to the pricing error over a two year period - half in 2014 and half in 2015. The portion of the full 2014 development fee that would not be collected from the development would be subsidized by all electric customers. This fee is reviewed annually, and additional adjustments may be necessary in 2015. Electric Development Fees for Typical Single Family Residence (8600 sq ft, 70 foot frontage, 150 amp service) 2013 2014 Option A $ Inc. % Inc. $3,228 $216 7.2% $3,012 2014 Option B $ Inc. % Inc. $3,207 $195 6.5% ELECTRIC DEVELOPMENT FEES & CHARGES RESIDENTIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $10.02 $10.35 3.3% $10.35 3.3% 150amp Single Family (Non Elec Heat) $1,273 $1,398 9.8% $1,398 9.8% 200 amp Single Family (& Elec Heat 150 amp) $2,169 $2,329 7.4% $2,329 7.4% 150 amp Multi-Family (Non Elec Heat) $849 $933 9.9% $933 9.9% 200 amp Multi-Family (& Elec Heat 150 amp) $1,518 $1,638 7.9% $1,638 7.9% 1/0 $646 $672 4.0% $672 4.0% 4/0 $790 $810 2.5% $810 2.5% 350 kCM $892 $903 1.2% $903 1.2% Charge Electric Capacity Fee Per square foot Per lineal front foot Charge per Dwelling Unit Building Agenda Item 26 Item # 26 Page 6 Water Plant Investment Fees - First Reading of Ordinance No. 149, 2013 Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees The water plant investment fee model has also been updated in 2013. As a result of effective conservation efforts, average consumption per customer has decreased in recent years. The impact of this change in customer behavior is a decrease in the plant capacity necessary to treat the average customer. Because the best general indicator of how much water the average new customer will need is the current consumption of a similar current customer, the result is a decrease in the plant investment fees for standard tap sizes in 2014. Nevertheless, increased capital investments limited the overall benefit of this decrease as the cost per gallon of treatment and delivery will increase in 2014. For connections 3 inches and larger, it is recommended the plant investment fee be based on specific customer requirements. Currently any connection larger than 3 inches is treated this way. Staff is recommending extending this to 3 inch connections in order to maintain consistency between the water and wastewater plant investment fee calculations (see staff recommendation below for more explanation on why this change is being recommended). ELECTRIC DEVELOPMENT FEES & CHARGES COMMERCIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $40.11 $41.25 2.8% $41.25 2.8% $9.18 $9.53 3.8% $9.53 3.8% $17.95 $18.33 2.1% $18.33 2.1% $1,300 $1,372 5.5% $1,372 5.5% $2,380 $2,442 2.6% $2,442 2.6% Utility Owned Transfromers Customer Owned Transfromers Charge Electric Capacity Fee Per square foot Per lineal front foot Service Entrance (per kilowatt- amp) Building Site Charges Primary Circuit 1 phase Primary Circuit 3 phase Transformer Install 1 phase Transformer Install 3 phase $ 64.32 13.5% $ 46.23 $ 53.87 $ 53.87 16.5% $ 56.68 $ 64.32 13.5% 16.5% Agenda Item 26 Item # 26 Page 7 Wastewater Plant Investment Fees - First Reading of Ordinance No. 150, 2013 Amending Chapter 26 of the City Code to Revise Wastewater Plant Investment Fees The wastewater plant investment fee model has also been updated in 2013. As with water, effective conservation efforts have reduced the average consumption per customer in recent years resulting in a decrease in the proposed plant investment fees for standard tap sizes in 2014. The table below summarizes the proposed wastewater plant investment fees. Water Plant Investment Fees By Customer Class 2013 2014 Customer Class / Meter Size Peak Day Usage PIF Fee Peak Day Usage Change PIF Fee Change gpd $ gpd % $ % PIF $/gpd $ 4.26 $ 4.43 4.0% Single Family Res Domestic Use (base) 172 $730 162 -6% $720 -1.4% Peak Use (per sqft) 785 $0.39 627 -20% $0.32 -17.9% Multi-family (per unit) Domestic Use (base) 120 $510 121 1% $540 5.9% Peak Use (per sqft) 217 $0.27 192 -12% $0.25 -7.4% Nonresidential Meter Size inches 3/4 1,850 $7,880 1,580 -15% $7,000 -11.2% 1 5,340 $22,750 4,300 -19% $19,050 -16.3% 1 1/2 11,130 $47,410 9,390 -16% $41,600 -12.3% 2 16,970 $72,290 14,540 -14% $64,410 -10.9% 3 38,800 $165,290 32,730 -16% $144,990 -12.3% > 3 inches Based on specific customer requirements 216 of 402 Agenda Item 26 Item # 26 Page 8 The second to last row of the table above is highlighted to show the significant increase in the average volume for 3 inch connections and the resulting model increase of 43.9% in the plant investment fee. Rather than treating every new 3 inch service connection by 43.9% through a standard plant investment fee, it is recommended that 3 inch connections be treated the same as larger connections by basing the plant investment fee on specific customer requirements. For consistency in fee assessments, it is recommended that the same change is made for 3 inch water service connections. Stormwater Plant Investment Fees - First Reading of Ordinance No. 152, 2013 Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees Continued capital investment in the stormwater utility increases the value of the stormwater system year over year. This increased system value drives the plant investment fees paid by development to buy into the existing stormwater system up as well. Stormwater plant investment fees were last changed for 2012. The proposed increase for 2014 is 22%. Floodplain Permit Fees - First Reading of Ordinance No. 153, 2013 Amending Chapter 10 of the City Code to Revise Floodplain Permit Fees Chapter 10 (Flood Prevention and Protection) of the City Code specifies review fees associated with floodplain administration: An applicant for a floodplain use permit shall pay twenty-five dollars ($25), see Sec. 10-27(j). Floodplain use permit; An applicant who is required to furnish a floodplain modeling analysis shall pay an additional fee of three hundred dollars ($300.), see Sec. 10-27(j). Floodplain use permit; and Wastewater Plant Investment Fees By Customer Class Current Fees Proposed 2014 Volume Volume gpd Proposed Fee Customer Class 05-'08 data Fees 09-'12 data Change PIF Change gpd $ gpd % $ % PIF $/gpd $ 11.46 $ 12.35 7.8% Single family Res 300 $ 3,440 250 -17% $ 3,090 -10.2% Duplex & Multi-fam 210 $ 2,410 200 -5% $ 2,470 2.5% Nonresidential Meter Size (inches) 3/4" 600 $ 6,880 530 -12% $ 6,550 -4.8% 1" 1,510 $ 17,300 1,250 -17% $ 15,440 -10.8% 1 1/2" 2,660 $ 30,480 2,420 -9% $ 29,890 -1.9% 2" 4,670 $ 53,520 4,760 2% $ 58,790 9.8% 3" 12,680 $ 145,310 16,930 34% $ 209,090 43.9% > 3 inches Based on specific customer requirements Stormwater Plant Investment Fee 2013 Current Fee (per acre) 2014 Proposed Fee (per acre) % Change $6,390 $7,817 22% 217 of 402 Agenda Item 26 Item # 26 Page 9 An applicant who is requesting a variance shall pay a variance processing fee of three hundred dollars ($300), see Sec. 10-28(c) - Appeals/variance procedure. These fees and their respective dollar amounts have not increased since they were originally adopted (Ordinance No. 037, 2005, March 15, 2005). The current fees do not provide a mechanism to properly account for the significant review times associated with certain types of floodplain reviews including Conditional Letters of Map Revision (CLOMRs), Letters of Map Revision (LOMRs) and variance requests. Stormwater Master Planning and Floodplain Administrative (Stormwater), and staff recommends that a new fee structure be established to better assign costs to floodplain review applicants. The intent of the proposed floodplain administration review fees is to institute a “user pay” approach wherein an applicant who is requesting floodplain review services pays for those instead of having those costs charged to stormwater utility customers, generally, through existing stormwater service fees. Stormwater staff performed an internal analysis using data collected over the last three years to determine the approximate average amount of staff time associated with specific floodplain reviews. The results show that the current review fees do not appropriately reflect the staff effort necessary to perform the review functions. The floodplain permit application fee is proposed to increase from $25 to $50. The proposed fee structure has categories of review fees that would be collected based on the level of review. In order to promote more complete submittals and reduce the number of floodplain analysis/CLOMR/LOMR reviews, staff has proposed a fee structure that collects an initial fee for up to two reviews. Each additional floodplain analysis/CLOMR/LOMR review after the first two reviews would have a $500 fee plus $50 for each review hour over 10 hours. This concept is similar to that used by several other Colorado communities. The variance fee is also proposed at $1,000 to better reflect the average number of hours (20) of staff review and preparation time associated with presenting the variance to the Water Board. Please see the attached file named “Proposed 2014 Fort Collins Floodplain Permit Fees.xlsx” for more detail on the proposed fee adjustments. C. Utility Bill Comparisons The standard residential customer’s bill will increase in 2014 under the proposed rate changes by 4.0% in the summer if Option A is approved for both water and wastewater or 5.0% if Option B is approved for both water and wastewater. During the rest of the year the increase with Option A is 3.4% or 4.2% with Option B. The tables below show the impacts of each of the proposed rate changes on the overall residential utility bill. 218 of 402 Agenda Item 26 Item # 26 Page 10 The next two tables provide some comparison of the utility bills for customers of Fort Collins Utilities with the proposed 2014 rate adjustments and neighboring communities based on the current rates in those communities. Current Estimated 2013 2014 $% $% Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $167.97 $174.70 $6.73 4.0% $176.43 $8.46 5.0% Current Estimated 2013 2014 $% $% Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo $30.88 $32.76 WQA Water 5,000 gal/mo Total Estimated Average Monthly Utility Bill $133.98 $138.58 $4.60 3.4% $139.66 $5.68 4.2% $26.60 $28.34 $1.75 6.6% $28.98 $2.38 9.0% $0.00 0.0% $1.89 6.1% $33.21 $2.33 7.6% $14.26 $14.26 $0.00 0.0% $14.26 WINTER Option A Option B $62.24 $63.21 $0.96 1.5% $63.21 $0.96 1.5% $2.33 7.6% $53.37 $56.88 $3.51 6.6% $58.16 $4.79 9.0% $30.88 $32.76 $1.89 6.1% $33.21 $1.34 1.9% $14.26 $14.26 $0.00 0.0% $14.26 $0.00 0.0% $69.46 $70.80 $1.34 1.9% $70.80 Typical Residential Customer – Monthly Utility Bill SUMMER Option A Option B Loveland Longmont Denver Boulder Greeley Aurora Ft. Collins Ft. Collins- Opt A Ft. Collins- Opt B Co.Sprs Stormwater $10.39 $7.77 $9.23 $7.47 $5.63 $8.16 $14.26 $14.26 $14.26 $- Wastewater $18.81 $25.11 $17.18 $22.54 $20.09 $18.32 $30.88 $32.76 $33.21 $31.27 Water $18.82 $14.80 $19.28 $20.76 $29.90 $38.41 $26.59 $28.34 $28.98 $35.12 Electric $59.26 $60.31 $68.86 $68.86 $68.86 $68.86 $62.24 $63.21 $63.21 $77.96 $- Agenda Item 26 Item # 26 Page 11 FINANCIAL / ECONOMIC IMPACTS The proposed rate ordinances will increase costs of the typical residential customer receiving electric service by $1.34 in the Summer and $0.96 per month for the remainder of the year. The typical residential customer receiving water and wastewater service will see a Summer increase of either $5.40 or $7.12 per month and a monthly increase of either $3.64 or $4.71 per month for the remainder of the year, depending on which “option” Council adopts. In general, more frequent and modest rate adjustments minimize the financial impacts of such adjustments to the community. Fort Collins Utilities strives to have such rate adjustments through intermediate and long term financial planning so as to avoid larger or more intermittent rate adjustments which can have more severe impacts to commercial customers on non-calendar fiscal years and residential customers on fixed incomes. ENVIRONMENTAL IMPACTS Funding from the proposed electric rate increase will directly increase the amount of solar energy utilized in Fort Collins and allow the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Water rate adjustments provide funding for conservation programs and environmental regulatory compliance. BOARD / COMMISSION RECOMMENDATION The Water Board was presented the same data as presented here as Options A and B however Staff recommended Option A only, rather than presenting two options. The Water Board did vote unanimously at the September Board Meeting to recommend approval of the proposed 2014 rate, plant investment and permit fee adjustments for the water, wastewater and stormwater utilities. The draft Board minutes are attached. The Energy Board voted unanimously to support the 2014 Electric rate increase. Staff did present the same options as presented here for the 2014 development fees with the Board unanimously supporting the full increase or Option A for 2014. The draft Board minutes are attached. Staff is scheduled to present the proposed rate increases to the Economic Advisory Commission on October 16, 2013. Loveland Longmont Boulder Denver Ft. Collins Greeley Ft. Collins- Opt A Ft. Collins- Opt B Aurora Co.Sprs Stormwater $10.39 $7.77 $7.47 $9.23 $14.26 $5.63 $14.26 $14.26 $8.16 $- Wastewater $18.81 $25.11 $22.54 $17.18 $30.88 $20.09 $32.76 $33.21 $18.32 $31.27 Water $36.32 $44.03 $45.17 $55.54 $53.37 $68.50 $56.88 $58.16 $91.11 $104.16 Electric $63.88 $60.31 $78.21 $78.21 $69.46 $78.21 $70.80 $70.80 $78.21 $77.96 $- $50 $100 $150 $200 $250 2013 Residential Rate Comparison Summer Water Use 15,000 Gallons 220 of 402 Agenda Item 26 Item # 26 Page 12 PUBLIC OUTREACH Notice of the proposed electric rate changes was published in the Coloradoan on October 5, 2013, and a mailing was sent to all city electric customers residing outside of the city limits in accordance with state requirements. Commercial customers have been advised of the proposed increases through community presentations and individual meetings and communications. Staff plans to conduct outreach to all customers following the adoption of the Ordinances. Each customer’s rate class specific adjustments will be presented along with the system average adjustment through social media, print media, and meetings. Commercial customers may contact customer service for specifically their estimated rate adjustments. Residential customers may do a rate comparison through the utility website. Public meetings in October include a Key Accounts presentation on October 15th and a presentation to the Chamber of Commerce on October 4th. ATTACHMENTS 1. Work Session Summary, September 24, 2013 2. Energy Board minutes, September 5, 2013 3. Water Board minutes, September 19, 2013 4. Proposed 2014 Fort Collins Floodplain Permit Fees 5. Powerpoint presentation 221 of 402 ATTACHMENT 1 222 of 402 Excerpt from Unapproved Energy Board Minutes, September 5, 2013 1 2014 Utility Rates/Electric Development Fees (Attachments available upon request). Strategic Financial Planning Manager Lance Smith presented information on this item. Light and Power Operations Manager Steve Catanach also participated in the discussion. This item was previously brought before the board at the August meeting. There are two components in the 2 percent proposed increase: 1.5 percent retail impact from PRPA’s wholesale rate increase (PRPA wholesale rates up 2.1 percent) 0.5 percent for the Fort Collins Solar Program Mr. Smith presented a graph showing the impacts by rate class and season for a proposed electric rate increase. Electric Development Fees Mr. Catanach shared background information on development fees. These fees are charged to new developments and include a square footage charge, a front footage charge, a dwelling unit charge, and a primary service charge. There was a significant increase in these fees due to an error in the model. Because of this, staff is considering two options: Implement the full increase in 2014 50 percent implementation in 2014 and 50 percent implementation in 2015 Highlights from the discussion: A board member inquired if these fees only cover costs. Mr. Catanach stated yes, only costs are covered. Utilities would like to ease the impact of this so there is not a negative impact to the ratepayers. A board member inquired when the change will take effect. Mr. Catanach stated this change will take effect January 1, 2014. A board member inquired how often these fees are reviewed. Mr. Catanach stated the fees are reviewed once a year. The board members and staff discussed the best way to present their thoughts to Council. The motion will be included in the Council packet along with a memo of support. The board will make separate motions for the rate increase and the electric development fees. Discussion on the motion: There was no discussion on the motion. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. Board Member Moore moved that the Energy Board support the 2 percent average electrical rate increase for 2014. The board will provide a memo to Council in support of this motion. Board Member Michell seconded the motion. ATTACHMENT 2 223 of 402 Excerpt from Unapproved Energy Board Minutes, September 5, 2013 2 Chairperson Behm will draft a memo that includes the above motion. This will be forwarded to Council in advance of the October 15 meeting. Discussion on the motion: A board member feels that ratepayers should be not burdened with extra fees. A board member inquired if there is another board weighing in on the development fees. Mr. Catanach stated this item will not be presented before another board because the Energy Board Charter states the board will review Electric Utility rates and fees. Vote on the motion: Yeas: Baumgarn, Behm, Kronkosky, Michell, Moore, O’Neill, and Plate. Nays: None. Vote on the motion: It passed unanimously. Board Member Michell moved that the Energy Board support the electric development fee increase proposed and presented as Option #1 implementing the full increase in 2014. Board Member Baumgarn seconded the motion. 224 of 402 Excerpt from Unapproved Water Board Minutes, September 19, 2013 2014 Recommended Rate Changes Strategic Financial Planning Manager Lance Smith presented information on rate changes. This item was also presented at the August Water Board meeting. Water Rate Increase Two components in 4 percent increase o 3 percent for increased capital investment in infrastructure o 1 percent for additional costs associated with the High Park Fire Updated Cost of Service study Mr. Smith presented a graph showing the impacts by rate class for single family, multi-family, duplex, commercial, and high volume industrial. Staff recommends gradual rate adjustments. This study will also be used for adjusting 2015 rates. Mr. Smith presented a chart showing Plant Investment Fees for 2013 and 2014. These have also been adjusted. Wastewater Fund Per 2014 City Budget 3 percent increase (increase necessary for capital improvements) Updated Cost of Service study Plant Investment Fees for 3 inch connections specific to customer Mr. Smith presented a graph showing the impacts by rate class for single family, multi-family, duplex, commercial, and high volume industrial. Staff recommends gradual rate adjustments. Stormwater Fund Per 2014 City Budget no rate increase Proposed adjustments to Floodplain Permit Fees o No changes to these fees since adoption o New rates based on actual cost of reviews Mr. Smith presented graphs showing typical residential utility bills for the summer and winter months. Highlights from the discussion: A board member expressed concern about the motion wording for the rate increase (“4 percent rate increase”). The board members and staff discussed how to accurately convey this is an overall 4 percent rate increase and that the different rate classes will see varied rate increases. A board member expressed concern about the costs associated with gravel pit storage. A board member inquired if the tap fee includes fire suppression. Mr. Haukaas stated this is a separate tap with no fee attached. ATTACHMENT 3 225 of 402 Excerpt from Unapproved Water Board Minutes, September 19, 2013 Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Board Member Eccleston moved that the Water Board support the proposed rate adjustments resulting in an overall 4 percent increase for the Water Fund and a 3 percent increase for the Wastewater Fund in 2014 as stated in the 2013-2014 Biennial Budget. Rate adjustments would be distributed by customer class to more closely align rates with the actual cost of service per the 2013 study. Board Member Hill seconded the motion. 226 of 402 Floodplain Permit Fees for the City of Fort Collins Utilities Permit Type/Activity General Description 2014 Proposed City of Fort Collins Fees Current 2013 City of Fort Collins Fees Floodplain Permit Application This is the base permit application that is required for all of the activities listed below. $50 $25 Floodplain Determination $0 $0 All fees below are in addition to the $50 Floodplain Permit Application Fees above Fence/Shed/Miscellaneous $0 Garage/Deck/Improvement < 50% Bldg. Value $150 Fill or Grading Only $150 Building Addition, Improvement/Remodel > 50% Bldg. Value, Redevelopment, or New Building Construction Slab on Grade $150 Enclosure $200 Crawl Space $250 Mobile Home $250 Floodproofing $250 No-Rise Analysis This fee may be waived if the No-Rise analysis is submitted in conjunction with a CoFC Floodplain analysis or C/LOMR $250 City of Fort Collins Basin Floodplain Analysis $500 (Includes 1st and 2nd Review) $300 FEMA Basin CLOMR $1,000 (Includes 1st and 2nd Review) $300 FEMA Basin LOMR $1,000 (Includes 1st and 2nd Review) $300 Floodplain Analysis or CLOMR/LOMR Resubmittal per 3rd, 4th, etc. review $500 each time+ $50/hr. for each review hour over 10 hours Variance Application Includes staff preparation time and court recorder costs $1,000 $300 Violation $50/hr. of Staff Time ATTACHMENT 4 227 of 402 1 2014 Utility Rates and Fees First Reading October 15, 2013 ATTACHMENT 5 228 of 402 2 Agenda § Proposed Monthly Utility Rate Adjustments § Proposed Utility Development Fee Changes § Utility Bill Comparisons 229 of 402 3 Proposed Monthly Utility Rate Adjustments 230 of 402 4 Electric Rates by Rate Class & Season 231 of 402 5 Water Adjustments by Rate Class 6.6% -5.0% 0.0% 5.3% 3.5% 4.0% 9.0% -16.4% -1.8% 7.7% 3.5% 4.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% Single Family Multifamily Duplex Commercial High Volume Industrial System-wide Proposed 2014 Water Rate Adjustments (Based on 2013 Water Cost of Service Study) Option A - Modified COS Option B - Full COS 232 of 402 6 Wastewater Adjustments by Class 6.1% -2.5% 2.8% -1.5% 3.0% 7.5% -5.6% 4.2% -3.6% 3.0% -8.0% -6.0% -4.0% -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% Single Family Duplex Multifamily Commercial System-wide Proposed 2014 Wastewater Rate Adjustments (Based on 2013 Wastewater Cost of Service Study) Option A - Modified COS Option B - Full COS 233 of 402 7 Proposed Utility Development Fee Changes 234 of 402 8 Electric Development Fees ELECTRIC DEVELOPMENT FEES & CHARGES RESIDENTIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $10.02 $10.35 3.3% $10.35 3.3% 150amp Single Family (Non Elec Heat) $1,273 $1,398 9.8% $1,398 9.8% 200 amp Single Family (& Elec Heat 150 amp) $2,169 $2,329 7.4% $2,329 7.4% 150 amp Multi-Family (Non Elec Heat) $849 $933 9.9% $933 9.9% 200 amp Multi-Family (& Elec Heat 150 amp) $1,518 $1,638 7.9% $1,638 7.9% 1/0 $646 $672 4.0% $672 4.0% 4/0 $790 $810 2.5% $810 2.5% 350 kCM $892 $903 1.2% $903 1.2% Charge Electric Capacity Fee Per square foot Per lineal front foot Charge per Dwelling Unit Building Site Charges Secondary Service ELECTRIC DEVELOPMENT FEES & CHARGES COMMERCIAL Category 2013 Existing 2014 Option A % Change 2014 Option B % Change $0.04550 $0.05036 10.7% $0.04793 5.3% $40.11 $41.25 2.8% $41.25 2.8% $9.18 $9.53 3.8% $9.53 3.8% $17.95 $18.33 2.1% $18.33 2.1% $1,300 $1,372 5.5% $1,372 5.5% $2,380 $2,442 2.6% $2,442 2.6% 9 Water Plant Investment Fees 2013 2014 Customer Class / Meter Size Peak Day Usage PIF Fee Peak Day Usage Change PIF Fee Change gpd $ gpd % $ % PIF $/gpd $ 4.26 $ 4.43 4.0% Single FamilyRes Domestic Use (base) 172 $730 162 -6% $720 -1.4% Peak Use (per sqft) 785 $0.39 627 -20% $0.32 -17.9% Multi-family (per unit) Domestic Use (base) 120 $510 121 1% $540 5.9% Peak Use (per sqft) 217 $0.27 192 -12% $0.25 -7.4% Nonresidential Meter Size inches 3/4 1,850 $7,880 1,580 -15% $7,000 -11.2% 1 5,340 $22,750 4,300 -19% $19,050 -16.3% 1 1/2 11,130 $47,410 9,390 -16% $41,600 -12.3% 2 16,970 $72,290 14,540 -14% $64,410 -10.9% 3 38,800 $165,290 32,730 -16% $144,990 -12.3% > 3 inches Based on specific customer requirements 236 of 402 10 Wastewater Plant Investment Fees Current Fees Proposed 2014 Volume Volume gpd Proposed Fee Customer Class 05-'08 data Fees 09-'12 data Change PIF Change gpd $ gpd % $ % PIF $/gpd $ 11.46 $ 12.35 7.8% Single family Res 300 $ 3,440 250 -17% $ 3,090 -10.2% Duplex & Multi-fam 210 $ 2,410 200 -5% $ 2,470 2.5% Nonresidential Meter Size (inches) 3/4" 600 $ 6,880 530 -12% $ 6,550 -4.8% 1" 1,510 $ 17,300 1,250 -17% $ 15,440 -10.8% 1 1/2" 2,660 $ 30,480 2,420 -9% $ 29,890 -1.9% 2" 4,670 $ 53,520 4,760 2% $ 58,790 9.8% 3" 12,680 $ 145,310 16,930 34% $ 209,090 43.9% > 3 inches Based on specific customer requirements 237 of 402 11 Stormwater Plant Investment Fees Stormwater Plant Investment Fee 2013 Current Fee (per acre) 2014 Proposed Fee (per acre) % Change $6,390 $7,817 22% 238 of 402 12 Flood Plain Permit Fees Floodplain Permit Fees for the City of Fort Collins Utilities Permit Type/Activity General Description Proposed City of Fort Collins Fees Existing City of Fort Collins Fees Floodplain Permit Application This is the base permit application that is required for all of the activities listed below. $50 $25 Floodplain Determination $0 $0 All fees below are in addition to the $50 Floodplain Permit Application Fees above Fence/Shed/Miscellaneous $0 Garage/Deck/Improvement < 50% Bldg. Value $150 Fill or Grading Only $150 Building Addition, Improvement/Remodel > 50% Bldg. Value, Redevelopment, or New Building Construction Slab on Grade $150 Enclosure $200 Crawl Space $250 Mobile Home $250 Floodproofing $250 No-Rise Analysis This fee may be waived if the No-Rise analysis is submitted in conjunction with a CoFC Floodplain analysis or C/LOMR $250 City of Fort Collins Basin Floodplain Analysis $500 (Includes 1st and 2nd Review) $300 FEMA Basin CLOMR $1,000 (Includes 1st and 2nd Review) $300 FEMA Basin LOMR $1,000 (Includes 1st and 2nd Review) $300 Floodplain Analysis or CLOMR/LOMR Resubmittal per 3rd, 4th, etc. review $500 each time+ $50/hr. for each review hour over 10 hours Variance Application Includes staff preparation time and court recorder costs $1,000 $300 Violation $50/hr. of Staff Time 239 of 402 13 Utility Bill Comparisons 240 of 402 14 Typical Residential Utility Bill - Summer Loveland Longmont Boulder Denver Ft. Collins Greeley Ft. Collins- Opt A Ft. Collins- Opt B Aurora Co.Sprs Stormwater $10.39 $7.77 $7.47 $9.23 $14.26 $5.63 $14.26 $14.26 $8.16 $- Wastewater $18.81 $25.11 $22.54 $17.18 $30.88 $20.09 $32.76 $33.21 $18.32 $31.27 Water $36.32 $44.03 $45.17 $55.54 $53.37 $68.50 $56.88 $58.16 $91.11 $104.16 Electric $63.88 $60.31 $78.21 $78.21 $69.46 $78.21 $70.80 $70.80 $78.21 $77.96 $- $50 $100 $150 $200 $250 2013 Residential Rate Comparison Summer Water Use 15,000 Gallons 241 of 402 15 Typical Residential Utility Bill - Winter Loveland Longmont Denver Boulder Greeley Aurora Ft. Collins Ft. Collins- Opt A Ft. Collins- Opt B Co.Sprs Stormwater $10.39 $7.77 $9.23 $7.47 $5.63 $8.16 $14.26 $14.26 $14.26 $- Wastewater $18.81 $25.11 $17.18 $22.54 $20.09 $18.32 $30.88 $32.76 $33.21 $31.27 Water $18.82 $14.80 $19.28 $20.76 $29.90 $38.41 $26.59 $28.34 $28.98 $35.12 Electric $59.26 $60.31 $68.86 $68.86 $68.86 $68.86 $62.24 $63.21 $63.21 $77.96 $- $20 $40 $60 $80 $100 $120 $140 $160 2013 Residential Rate Comparison Winter Water Use - 5,000 Gallons 242 of 402 16 Typical Residential Development Water fees include both the plant investment fee and the cash in-lieu of rate for raw water requirements $13,089 $13,809 $20,546 $26,401 $29,582 $31,371 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Fort Collins (Proposed 2014) Fort Collins (Current 2013) Longmont Greeley FCLWD / South FC Sanitation ELCO / Boxelder Sanitation Water, Wastewater, and Stormwater Plant Investment Fees Stormwater Wastewater Water 243 of 402 17 Typical Residential Utility Bill By Season Current Estimated 2013 2014 $ % $ % Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo WQA Water 15,000 gal/mo Total Estimated Average Monthly Utility Bill $167.97 $174.70 $6.73 4.0% $176.43 $8.46 5.0% Current Estimated 2013 2014 $ % $ % Increase Increase Increase Increase Electric 700 kWh/mo Stormwater 8,600 sq.ft. lot, light runoff Wastewater 4,800 gal/mo $30.88 $32.76 WQA Water 5,000 gal/mo Total Estimated Average Monthly Utility Bill $133.98 $138.58 $4.60 3.4% $139.66 $5.68 4.2% 7.6% $28.98 Option A Option B Option A Option B $14.26 $1.89 6.1% $33.21 $2.33 $0.00 $1.75 $1.34 1.9% $0.00 0.0% $1.89 6.1% $3.51 6.6% 1.5% 0.0% $26.60 $28.34 6.6% $2.38 9.0% Typical Residential Customer – Monthly Utility Bill SUMMER WINTER $63.21 $0.96 1.5% $14.26 $14.26 $0.00 0.0% $53.37 $69.46 $62.24 $70.80 $1.34 $14.26 $0.00 $70.80 $33.21 $14.26 18 Ordinance Table Utility Ordinance Number Description Electric No. , 2013 Electric Monthly Rate Increase for 2014 No. , 2013 Electric Development Fee - Option A (Full Increase in 2014) No. , 2013 Electric Development Fee - Option B (Partial Increase in 2014) Water No. , 2013 Water Monthly Rate Increase - Option A (Modified COS) No. , 2013 Water Monthly Rate Increase - Option B (Full COS) No. , 2013 Water Plant Investment Fees Wastewater No. , 2013 Wastewater Monthly Rate Increase - Option A (Modified COS) No. , 2013 Wastewater Monthly Rate Increase - Option B (Full COS) No. , 2013 Wastewater Plant Investment Fees Stormwater No. , 2013 Stormwater Plant Investment Fees No. , 2013 Floodplain Permit Fees 245 of 402 19 Thank You 246 of 402 - 1 - ORDINANCE NO. 146, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE ELECTRIC RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, Platte River Power Authority costs are increasing due to reduced wholesale market prices and surplus sales, increased costs of coal, and increased operating costs for aging plants; and WHEREAS, Platte River Power Authority will increase the City’s wholesale cost of power approximately 2.0% in 2014; and WHEREAS, the increased wholesale power costs will require a 1.5% increase in the City’s electric rates; and WHEREAS, the adopted budget plan for 2014 budget includes an appropriation of $1,000,000 for the Fort Collins Solar Program an increase of $500,000 from the 2013 appropriation; and WHEREAS, the increased cost of the Solar Program in 2014 will require a 0.5% rate increase; and WHEREAS, the Energy Board considered the proposed electric rates, fees and changes for 2014 at its September 5, 2013, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager and staff have recommended to the City Council the following electric rate adjustments for all billings issued with meter readings on or after January 1, 2014; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric rates, fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Sections 26-464(c) and (d) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-464. Residential energy service, schedule R. (c) Monthly rate. The monthly rates for this schedule are as follows: 247 of 402 - 2 - (1) Fixed charge, per account: four dollars and forty-eight cents ($4.48). (2) Distribution facilities charge, per kilowatt-hour: two and fifty-nine sixty-two one- hundreds cents ($0.0259 0.0262). (3) Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and sixty-eight eighty-three one-hundredths cents ($ 0.0568 0.0583). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and twenty-six forty-one one-hundredths cents ($0.0726 0.0741). c. For all additional kilowatt hours per month, per kilowatt hour: ten and forty- two fifty-seven one-hundredths cents ($0.1042 0.1057). (4) Energy and demand charge, during the non-summer season billing months of January through May and September through December: a. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and five fifteen one-hundredths cents ($0.0505 0.0515). b. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-three fifty-three one-hundredths cents ($0.0543 0.0553). c. For all additional kilowatt hours per month, per kilowatt hour: six and twenty- six thirty-six one-hundredths cents ($0.0626 0.0636). (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (d) Medical assistance program. (1) The rates described in Subsection (c) above shall be discounted for those electric customers to whom this rate schedule applies and who apply for such discount, as long as: a. the applicant's annual household income falls below sixty (60) percent of the Larimer County Area Median Income (as determined by the Federal Housing Authority); and b. the application is accompanied by a certified, signed statement from a licensed physician that electrical durable medical equipment used at the residential 248 of 402 - 3 - premises is medically necessary and that such medical equipment has been assigned a Healthcare Common Procedure Coding System number; and/or c. a certified, signed statement from a licensed physician that air conditioning at the residential premises is medically necessary for a resident thereof who, in the absence of the air conditioning, may suffer medical deterioration due to a severe immune-compromising medical condition, including, but not limited to, multiple sclerosis, quadriplegia, paraplegia, scleroderma or hemiplegia; and d. the application is accompanied by a sworn affidavit from the applicant verifying that all information contained in the application, including, if applicable, the representation that air conditioning will be operational at the applicant's address during the summer billing months, is true and correct. (2) Applications for rate discounts under this Section must be submitted annually in accordance with an administratively established schedule. (3) The discounted rates for customers with electrical durable medical equipment only shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and fifty-nine sixty-two one-hundredths cents ($0.0259 0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and twenty twenty-nine one-hundredths cents ($0.03200.0329). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: seven and twenty-six forty-one one-hundredths cents ($0.0726 0.0741). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and forty-two fifty-seven one-hundredths cents: ($0.1042 0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 249 of 402 - 4 - 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and seventy-six eighty-two one-hundredths cents ($0.0276 0.0282). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-three fifty-three one-hundredths cents ($0.0543 0.0553). 3. For all additional kilowatt hours per month, per kilowatt hour: six and twenty-six thirty-six one-hundredths ($0.0626 0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (4) The discounted rates for customers with medical needs requiring air conditioning only shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and fifty-nine sixty-two one-hundredths cents ($0.0259 0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: three and fourteen twenty-two one-hundredths cents ($0.0314 0.0322). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: four and one ten one-hundredths cents ($0.0401 0.0410). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and forty-two fifty-seven one-hundredths cents ($0.1042 0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: five and five fifteen one-hundredths cents ($0.0505 0.0515). 250 of 402 - 5 - 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-three fifty-three one-hundredths cents ($0.0543 0.0553). 3. For all additional kilowatt hours per month, per kilowatt hour: six and twenty-six thirty-six one-hundredths cents ($0.0626 0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (5) The discounted rates for customers with electrical durable medical equipment and medical needs requiring air conditioning shall be calculated as follows: a. Fixed charge, per account: four dollars and forty-eight cents ($4.48). b. Distribution facilities charge, per kilowatt hour: two and fifty-nine sixty-two one-hundredths cents ($0.0259 0.0262). c. Energy and demand charge, during the summer season billing months of June, July and August, with the summer season billing month determined by the month the meter is read, and provided that no customer shall be billed more than three (3) full billing cycles at the summer rate. The energy and demand charge shall be billed as follows: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and five eleven one-hundredths cents ($0.0205 0.0211). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: two and sixty-two sixty-eight one-hundredths cents ($0.0262 0.0268). 3. For all additional kilowatt hours per month, per kilowatt hour: ten and forty-two fifty-seven one-hundredths cents ($0.1042 0.1057). d. Energy and demand charge, during the non-summer season billing months of January through May and September through December: 1. For the first five hundred (500) kilowatt hours per month, per kilowatt hour: two and seventy-six eighty-two one-hundredths cents ($0.0276 0.0282). 2. For the next five hundred (500) kilowatt hours per month, per kilowatt hour: five and forty-three fifty-three one-hundredths cents ($0.0543 0.0553). 251 of 402 - 6 - 3. For all additional kilowatt hours per month, per kilowatt hour: six and twenty-six thirty-six one-hundredth cents ($0.0626 0.0636). e. In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (6) Notwithstanding the foregoing, no rate established under this Subsection shall reflect a discount exceeding an amount consistent with the use of one hundred fifty (150) kilowatt hours per month for the operation of electrical durable medical equipment or, if applicable, an additional amount consistent with the use of three hundred fifty (350) kilowatt hours per month for air conditioning. (7) A decision that an applicant does not qualify to participate in this program for a medical or financial reason may be appealed to the Utilities Executive Director, who shall, prior to making his or her decision, and as he or she deems appropriate, confer with one (1) or more medical or financial experts in reviewing such appeal. Section 2. That Sections 26-465 (c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-465. Residential demand service, schedule RD (c) Monthly rate. The monthly rates are as follows: (1) Fixed charge, per account: seven dollars and twenty-four cents ($7.24). (2) Demand charge, per kilowatt: two dollars and fifty cents ($2.50). (3) Distribution facilities charge, per kilowatt-hour: two and ninety-one ninety-four one-hundredths cents ($0.0291 0.0294). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and eighty-eight four and three one-hundredths cents ($0.0388 0.0403). b. During the non-summer season billing months of January through May and September through December: three and seventy-seven eighty-seven one- hundredths cents ($0.0377 0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of monthly service charges billed pursuant to this Section. 252 of 402 - 7 - (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be one dollar and twenty two twenty-three cents ($1.22 1.23) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be three dollars and sixty-seven seventy-one cents ($3.67 3.71) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. Section 3. That Section 26-466 (c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-466. General service, schedule GS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and sixty-eight cents ($3.68). b. Single-phase, above two-hundred-ampere service: ten dollars and eighty-three cents ($10.83). c. Three-phase, two-hundred-ampere service: five dollars and fifty-nine cents ($5.59). d. Three-phase, above two-hundred-ampere service: thirteen dollars and twenty- four cents ($13.24). (2) Demand charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: two and eighty-nine one-hundredths cents ($0.0289). b. During the non-summer season billing months of January through May and September through December: one and forty one-hundredths cents ($0.0140). 253 of 402 - 8 - c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3)Distribution facilities charge, per kilowatt-hour: One and eighty-four eighty-seven one-hundredths cents ($0.0184 0.0187). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and eighty-eight four and three one-hundredths cents ($0.0388 0.0403). b. During the non-summer season billing months of January through May and September through December: three and seventy-seven eighty-seven one- hundredths cents ($0.0377 0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. Section 4. That Sections 26-467 (c) and (f) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-467. General service 25, schedule GS25. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: a. Single-phase, two-hundred-ampere service: three dollars and sixty-eight cents ($3.68). b. Single-phase, above two-hundred-ampere service: ten dollars and eighty-three cents ($10.83). c. Three-phase, two-hundred-ampere service: five dollars and fifty-nine cents ($5.59). d. Three-phase, above two-hundred-ampere service: thirteen dollars and twenty- four cents ($13.24). (2) Demand charge, per kilowatt: a. During the summer season billing months of June, July and August: seven dollars and sixty-four cents ($7.64). 254 of 402 - 9 - b. During the non-summer season billing months of January through May and September through December: four dollars and thirty-eight cents ($4.38). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities charge, per kilowatt-hour: one and eighty-four eighty-seven one-hundredths cents ($0.0184 0.0187). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and eighty-eight four and three one-hundredths cents ($0.0388 0.0403). b. During the non-summer season billing months of January through May and September through December: three and seventy-seven eighty-seven one- hundredths cents ($0.0377 0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The monthly standby distribution charge shall be four dollars and thirty-five forty- three cents ($4.35 4.43) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be thirteen and five twenty-nine cents ($13.05 13.29) per kilowatt. (2) In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. Section 5. That numbered Section 26-468 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-468. General service 50, schedule GS50. 255 of 402 - 10 - (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: twenty-one dollars and two cents ($21.02). An additional charge of forty dollars and zero cents ($40.) may be assessed if telephone communication service is not provided by the customer. (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and eighteen cents ($11.18). b. During the non-summer season billing months of January through May and September through December: seven dollars and eighty cents ($7.80). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: five dollars and sixty-five seventy-eight cents ($5.65 5.78). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and eighty-eight four and three one-hundredths cents ($0.0388 0.0403). b. During the non-summer season billing months of January through May and September through December: three and seventy-seveneighty-seven one- hundredths cents ($0.0377 0.0387). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be four dollars and fifty-nine seventy cents ($4.59 4.70) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge 256 of 402 - 11 - shall be thirteen fourteen dollars and seventy-six eight cents ($13.76 14.08) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be ninety-seven ninety-nine cents ($0.97 0.99) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and ninety-two ninety-nine cents ($2.92 2.99) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 6. That numbered Sections 26-469 (c), (f) and (g) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-469. General service 750, schedule GS750. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: sixty-one dollars and ninety-six cents ($61.96). a. Additional charge for each additional metering point: fifty-four dollars and seventy-four cents ($54.74). b. An additional charge of forty dollars and zero cents ($40.) for each metering point may be assessed if telephone communication service is not provided by the customer. 257 of 402 - 12 - (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: eleven and one cent ($11.01). b. During the non-summer season billing months of January through May and September through December: seven dollars and sixty-nine cents ($7.69). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: a. First seven hundred fifty (750) kilowatts: five six dollars and seventy-three two cents ($5.73 6.02). b. All additional kilowatts: three dollars and forty-two fifty-nine cents ($3.42 3.59). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and eighty-two ninety-seven one-hundredths cents ($0.0382 0.0397). b. During the non-summer season billing months of January through May and September through December: three and seventy-one eighty-one one- hundredths cents ($0.0371 0.0381). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (f) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be three dollars and fifty-eight seventy-six cents ($3.58 3.76) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be ten eleven dollars and seventy-four twenty-nine cents ($10.74 11.29) per kilowatt. 258 of 402 - 13 - b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. (g) Excess circuit charge. In the event a utility customer in this rate class desires excess circuit capacity for the purpose of controlling the available electric capacity of a backup circuit connection, this service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable backup demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) The excess circuit charge shall be seventy-six eighty cents ($0.76 0.80) per contracted kilowatt of backup capacity per month. For any metered kilowatts in excess of the contracted amount, the excess circuit charge shall be two dollars and twenty-nine forty-one cents ($2.29 2.41) per kilowatt. (2) In the event the contractual kilowatt limit is exceeded, a new annual contract period will automatically begin as of the month the limit is exceeded. The metered demand in the month of exceedance shall become the minimum contracted demand level for the excess circuit charge. Section 7. That 26-470 (c) and (e) of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-470. Substation service, schedule SS. (c) Monthly rate. The monthly rates for this schedule are as follows: (1) Fixed charge, per account: sixty-one dollars and ninety-six cents ($61.96). (2) Coincident demand charge, per kilowatt: a. During the summer season billing months of June, July and August: ten dollars and eighty-four cents ($10.84). b. During the non-summer season billing months of January through May and September through December: seven dollars and fifty-seven cents ($7.57). 259 of 402 - 14 - c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (3) Distribution facilities demand charge, per kilowatt: two dollars and fifty-four seventy-five cents ($2.54 2.75). (4) Energy charge, per kilowatt-hour: a. During the summer season billing months of June, July and August: three and seventy-seven ninety-one one-hundredths cents ($0.0377 0.0391). b. During the non-summer season billing months of January through May and September through December: three and sixty-six seventy-five one-hundredths cents ($0.0366 0.0375). c. The meter reading date shall generally determine the summer season billing months; however, no customer shall be billed more than three (3) full billing cycles at the summer rate. (5) In lieu of taxes and franchise: a charge at the rate of six and zero-tenths (6.0) percent of all monthly service charges billed pursuant to this Section. (e) Standby service charges. Standby service, if available, will be provided on an annual contract basis at a level at least sufficient to meet probable service demand (in kilowatts) as determined by the customer and approved by the utility according to the following: (1) Standby distribution charge. a. The monthly standby distribution charge shall be two dollars and twenty-eight fifty cents ($2.282.50) per kilowatt of contracted standby service. This charge shall be in lieu of the distribution facilities charge. For all metered kilowatts in excess of the contracted amount, the standby distribution charge shall be six seven dollars and eighty-three forty cents ($6.837.40) per kilowatt. b. In the event the contractual kilowatt amount is exceeded, the beginning date of the contract period will be reset. The first month of the new contract period will become the current billing month and such month's metered demand shall become the minimum allowable contract demand for the standby service. Requests for standby service may be subject to a waiting period. An operation and maintenance charge may be added for special facilities required to provide standby service. (2) Standby generation and transmission charge. All charges incurred by the utility under the Platte River Power Authority's applicable tariffs, as may be amended from time to time, will be billed to the customer as a standby generation and transmission charge. 260 of 402 - 15 - Section 8. That renumbered Section 26-472 (b) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-472. Traffic signal service, schedule T. (c) Monthly rate. The monthly rates (including a six-and-zero-tenths-percent charge in lieu of taxes and franchise) are as follows: (1) Fixed charge, per account: seventy-three dollars and sixteen cents ($73.16). (2) Charge, per kilowatt-hour: six and forty-two fifty-nine one-hundredths cents ($0.0642 0.0659). (3) Service extensions and signal installations made by the utility shall be paid for by the City General Fund, subject to material and installation costs at the time of installation. Section 9. That the amendments herein are effective shall go into effect for all bills issued with meter readings on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 261 of 402 - 1 - OPTION A - FULL IMPLEMENTATION ORDINANCE NO. 147, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE ELECTRIC DEVELOPMENT FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than biennially; and WHEREAS, on November 6, 2012, the City Council adopted Ordinance No. 115, 2012, which established the electric development fees now in effect; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the electric development fees and charges for all invoices paid on or after January 1, 2014; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric development fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-474 (b) and (c), “Residential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-474. Residential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. four and five hundred fiftyfive and thirty-six thousandths cents ($0.04550 $0.05036) per square foot of developed site square footage, 262 of 402 - 2 - including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. ten dollars and two thirty-five cents ($10.02 $10.35) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand two hundred seventy-threethree hundred and ninety-eight dollars ($1,273. $1,398) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), two thousand one hundred sixty-nine three hundred twenty-nine dollars ($2,169. $2,329) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred forty-nine nine hundred thirty-three dollars ($849. $933) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one-hundred-fifty-amp service (electric heat), one thousand five hundred eighteen six hundred thirty-eight dollars ($1,518 $1,638) per dwelling unit. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges, and any additional charges, determined as follows: (1) The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per Foot Charge for Each Foot Over 65 1/0 service $646.00672.00 $4.714.93/Foot 263 of 402 - 3 - 4/0 service $790.00810.00 $5.515.68/Foot 350 kCM Service $892.00903.00 $7.24/Foot 1/0 Mobile Home Service $505.00524.00 N/A 4/0 Mobile Home Service $624.00640.00 N/A (2) Actual special costs to the utility of installation of secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 2. That Section 26-475 (b) and (c), “Nonresidential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. four and five hundred fifty five and thirty-six thousandths cents ($0.04550$0.05036) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. forty forty-one dollars and eleven twenty-five cents ($40.11$41.25) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows. a. or customer electric loads served by the utility the kVA service charge shall be: i. Utility owned transformers: the kVA service charge shall be fifty-sixsixty-four dollars and sixty-eight thirty-two cents ($56.68 $64.32) per kilovolt-amp (kVA) of service load rating. 264 of 402 - 4 - ii. Customer owned transformers: the kVA service charge shall be forty-six fifty-three dollars and twenty-three eighty-seven cents ($46.23 $53.87) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer’s electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers: the kVA service charge shall be forty-six fifty-three dollars and twenty-three eighty-seven cents ($46.23 $53.87) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.i. above. Such ratings shall be determined by the Utilities Executive Director. ii. Customer owned transformers: the kVA service charge shall be thirty-five forty-three dollars and seventy-three thirty-seven cents ($35.73$43.37) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.ii.above. Such ratings shall be determined by the Utilities Executive Director. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nine dollars and eighteen fifty-three cents ($9.18$9.53) per foot of primary circuit; b. for three-phase service, a charge of seventeen eighteen dollars and ninety-five thirty-three cents ($17.95$18.33) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand three hundred seventy-two dollars ($1,300.$1,372) per transformer; 265 of 402 - 5 - b. for three-phase service, a charge of two thousand three hundred eighty four hundred forty-two dollars ($2,380.$2,442) per transformer. (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 266 of 402 - 1 - OPTION B - PARTIAL IMPLEMENTATION ORDINANCE NO. 147, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO THE REVISE THE ELECTRIC DEVELOPMENT FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the electric utility, as set forth therein; and WHEREAS, the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, Section 26-471 of the City Code requires that the electric development fees be reviewed annually by the City Manager and that the fees be presented to the City Council for approval no less than biennially; and WHEREAS, on November 6, 2012 the City Council adopted Ordinance No. 115, 2012, which established the electric development fees now in effect; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the electric development fees and charges for all invoices paid on or after January 1, 2014; and WHEREAS, a previous error in the calculation of the fee has resulted in a 10.7% increase in the square footage charge for electric capacity; and WHEREAS, City Council desires to implement this increase over two years, by charging a reduced rate for 2014 and the full rate thereafter, to mitigate the impact of the rate change; and WHEREAS, staff will present an electric rate ordinance for 2015 that includes implementing the full development fee charge for electric capacity, beginning January 1, 2015; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise electric development fees and charges. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-474 (b) and (c), “Residential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: 267 of 402 - 2 - Sec. 26-474. Residential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, dwelling charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. four and five hundred fiftyseven hundred ninety-three thousandths cents ($0.04550 $0.04793) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. ten dollars and two thirty-five cents ($10.02 $10.35) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The dwelling unit charge shall be as follows: a. For a single-family panel size with one-hundred-fifty-amp service (nonelectric heat), one thousand two hundred seventy-threethree hundred and ninety-eight dollars ($1,273. $1,398) per dwelling unit; b. For a single-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), two thousand one hundred sixty- nine three hundred twenty-nine dollars ($2,169. $2,329) per dwelling unit; c. For a multi-family panel size with one-hundred-fifty-amp service (nonelectric heat), eight hundred forty-nine nine hundred thirty-three dollars ($849. $933) per dwelling unit; d. For a multi-family panel size with two-hundred-amp service or with one- hundred-fifty-amp service (electric heat), one thousand five hundred eighteen six hundred thirty-eight dollars ($1,518 $1,638) per dwelling unit. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for any new or modified residential service shall be paid prior to issuance of a building permit for the related construction or modification. The BSC shall be based upon the current rates as of the time of issuance of the building permit. The BSC shall be the total of the secondary service charges, and any additional charges, determined as follows: 268 of 402 - 3 - 1) The secondary service charge shall be as follows: Secondary Service Size Charge (up to 65 feet) Plus Per Foot Charge for Each Foot Over 65 1/0 service $646.00672.00 $4.714.93/Foot 4/0 service $790.00810.00 $5.515.68/Foot 350kCM Service $892.00903.00 $7.24/Foot 1/0 Mobile Home Service $505.00524.00 N/A 4/0 Mobile Home Service $624.00640.00 N/A (2) Actual special costs to the utility of installation of secondary service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 2. That Section 26-475 (b) and (c), “Nonresidential electric development fees and charges” of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-475. Nonresidential electric development fees and charges. . . . (b) The ECF shall be the total of the site footage charge, kVA service charge and systems modification charge, to be determined as follows: (1) The site footage charge shall be the combined total of: a. four and five hundred fifty seven hundred ninety-three thousandths cents ($0.04550$0.04793) per square foot of developed site square footage, including all applicable tracts but excluding the area of dedicated public rights-of-way; and b. forty forty-one dollars and eleven twenty-five cents ($40.11$41.25) per lineal foot of the developed site abutting a dedicated street or roadway. (2) The kVA service charge shall be determined as follows. a. For customer electric loads served by the utility the kVA service charge shall be: i. Utility owned transformers: the kVA service charge shall be fifty- sixsixty-four dollars and sixty-eight thirty-two cents ($56.68 $64.32) per kilovolt-amp (kVA) of service load rating. 269 of 402 - 4 - ii. Customer owned transformers: the kVA service charge shall be forty-six fifty-three dollars and twenty-three eighty-seven cents ($46.23 $53.87) per kilovolt-amp (kVA) of service load rating. b. For the utility to receive customer generation in excess of the customer’s electric service provided by the utility, the following KVA service charge will also apply: i. Utility owned transformers: the kVA service charge shall be forty-six fifty-three dollars and twenty-three eighty-seven cents ($46.23 $53.87) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating as paid per subparagraph (2)a.i. above. Such ratings shall be determined by the Utilities Executive Director. ii. Customer owned transformers: the kVA service charge shall be thirty-five forty-three dollars and seventy-three thirty-seven cents ($35.73$43.37) per kilovolt-amp (kVA) of generation service rating in excess of the service load rating paid per subparagraph (2)a.ii.above. Such ratings shall be determined by the Utilities Executive Director. (3) A system modifications charge will apply when a new or modified service will require infrastructure in addition to or different from the standard base electrical system model. The differential costs associated with such system modifications will be included in the calculated ECF. (c) A Building Site Charge ("BSC") for extending primary circuitry to the transformer for any new or modified nonresidential service shall be invoiced and paid in the same manner and at the same time as the ECF is invoiced and paid pursuant to Subsection (a) of this Section. The BSC shall be the total of the primary circuit charge, transformer installation charge and any additional charges, determined as follows: (1) The primary circuit charge for service from the utility source to the transformer shall be as follows: a. for single-phase service, a charge of nineof nine dollars and eighteen fifty- three cents ($9.18$9.53) per foot of primary circuit; b. for three-phase service, a charge of seventeen eighteen dollars and ninety- five thirty-three cents ($17.95$18.33) per foot of primary circuit. (2) The transformer installation charge shall be as follows: a. for single-phase service, a charge of one thousand threethousand three hundred seventy-two dollars ($1,300$1,372) per transformer; 270 of 402 - 5 - b. for three-phase service, a charge of two thousand three hundred eighty four hundred forty-two dollars ($2,380.$2,442) per transformer. (3) Actual special costs to the utility of installation of service resulting from site conditions shall be included in the BSC as additional charges. Such conditions may include, but are not limited to, frozen or rocky soil, concrete cutting and asphalt replacement. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect for all invoices paid on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 271 of 402 - 1 - OPTION A - Modified Cost of Service ORDINANCE NO. 148, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER RATES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the water utility, as set forth therein; and WHEREAS, Section 26-118 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the water utility during each calendar year and recommend to the City Council the user rate fees to be in effect for the following year; and WHEREAS, the Poudre watershed was damaged by the 2012 High Park fire and will result in additional operating and capital costs for treatment and mitigation; and WHEREAS, the Water Board considered the proposed water rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following water use rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That section 26-118 of the Code of the City of Fort Collins is hereby amended by deleting section (a) (3): a (3) Construction rate. As a condition of issuance of a water service connection permit for premises under construction, the permittee shall pay a one-time flat fee for water used during the construction period and for costs incurred to make the water system ready for use. Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-126. Schedule A, flat rates for unmetered construction water use. For residential and nonresidential premises under construction with a planned meter size greater than one (1) inch, no flat unmetered water service will be provided. For 272 of 402 - 2 - residential and nonresidential premises under construction with a planned meter size of one (1) inch or less, the following flat rates will apply per month until the permanent meter is set: ¾-inch construction service, flat charge per month $24.9826.31 1-inch construction service, flat charge per month $47.6350.16 Section 3. That Section 26-127 (a) Residential Rates and that Section 26-127 (b) Nonresidential Rates of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. Schedule B, meter rates. (a) Residential Rates. (1) Residential customers with one (1) dwelling unit. a. Base Charge. Residential customers with one (1) dwelling unit shall pay a base monthly charge of fourteen fifteen dollars and fourteen seven cents ($14.1415.07). b. Quantity Charge. Residential customers with one (1) dwelling unit shall pay a monthly quantity charge as follows: For the first seven thousand (7,000) gallons used per month, a charge of two dollars and eighteen thirty-three and ninethree tenths cents ($2.1892.333) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and fifty-one sixty-eight and six two tenths cents ($2.5162.682) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two three dollars and eighty-nine eight and fourfive-tenths cents ($2.8943.085) per one thousand (1,000) gallons. (2) Residential customers with two (2) dwelling units. a. Base Charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of sixteen dollars and sixty-one cents ($16.61). b. Quantity Charge. Residential customers with two (2) dwelling units shall pay a monthly quantity charge as follows: For the first nine thousand (9,000) gallons used per month, a charge of two dollars and ten and nine tenths cents ($2.109) per one thousand (1,000) gallons. 273 of 402 - 3 - For the next four thousand (4,000) gallons used per month, a charge of two dollars and forty-two and four-tenths cents ($ 2.424) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-eight and nine-tenths cents ($2.789) per one thousand (1,000) gallons. (3) Residential customers with more than two (2) dwelling units. a. Base Charge. Residential customers with more than two (2) dwelling units shall pay a base monthly charge of fourteen thirteen dollars and threethirty-three cents ($14.0313.33) for the first dwelling unit and four dollars and sixty-sevenforty-four cents ($ 4.674.44) for the second and each additional dwelling unit. b. Quantity Charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of two one dollars and three ninety-three and sevenfive-tenths cents ($2.0371.935) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and fifty-fourforty-two and seven-tenths cents ($2.5472.420) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Section 26-127 (c) customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 12.6613.33 1 35.3137.18 1½ 96.02101.11 2 144.71152.38 3 220.71232.41 4 346.49364.85 274 of 402 - 4 - 6 672.15707.77 8 1187.421250.35 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and seventy-sixeighty-five and one-tenthfour-tenths cents ($1.7611.854) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twenty thirty-one and one- tentheight-tenths cents ($2.2012.318) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (3) Charges for excess use. Monthly water use in excess of the amounts specified in the following table shall be billed at two dollars and fifty-threesixty-six and four-tenths cents ($2.5302.664) per one thousand (1,000) gallons used in the winter season months of November through April. Monthly water use in excess of the amounts specified below shall be billed at three dollars and sixteen thirty-three and fourtwo-tenths cents ($3.1643.332) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 Section 4. That Section 26-127 (c) High Volume Industrial Rates of the City of Fort Collins Code is hereby amended to read: (c) High Volume Industrial Rates 1. High Volume Industrial Rates apply to any customer with an Average Daily Demand in excess of 2,000,000 gallons per day. The specific rate for any qualifying customer shall be based upon the appropriate peaking factor for that customer in the table below: 275 of 402 - 5 - Peaking Factor Monthly charge per thousand gallons 1.00 – 1.09 $1.4301.490 1.10 – 1.19 $1.4901.540 1.20 – 1.29 $1.5501.590 1.30 – 1.39 $1.6001.640 1.40 – 1.49 $1.6601.690 1.50 – 1.59 $1.7101.740 1.60 – 1.69 $1.7701.790 1.70 – 1.79 $1.8301.840 1.80 – 1.89 $1.8801.890 1.90 – 1.99 $1.9401.950 > 2.00 $2.000 Section 5. That Section 26-129 (b) Fire Hydrant Fees and Charges of the City of Fort Collins Code is hereby amended to read: Sec. 26-129. Schedule D, miscellaneous fees and charges. (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 5.026.00 Section 6. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in for meter readings on or after January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 276 of 402 - 6 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 277 of 402 - 1 - OPTION B – Full Cost of Service ORDINANCE NO. 148, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER RATES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the water utility, as set forth therein; and WHEREAS, Section 26-118 of the Code of the City of Fort Collins, requires that the City Manager analyze the operating and financial records of the water utility during each calendar year and recommend to the City Council the user rate fees to be in effect for the following year; and WHEREAS, the Poudre watershed was damaged by the 2012 High Park fire and will result in additional operating and capital costs for treatment and mitigation; and WHEREAS, the Water Board considered the proposed water rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the rate changes by an unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following water use rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That section 26-118 of the Code of the City of Fort Collins is hereby amended by deleting section (a) (3): a (3) Construction rate. As a condition of issuance of a water service connection permit for premises under construction, the permittee shall pay a one-time flat fee for water used during the construction period and for costs incurred to make the water system ready for use. Section 2. That Section 26-126 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-126. Schedule A, flat rates for unmetered construction water use. For residential and nonresidential premises under construction with a planned meter size greater than one (1) inch, no flat unmetered water service will be provided. For 278 of 402 - 2 - residential and nonresidential premises under construction with a planned meter size of one (1) inch or less, the following flat rates will apply per month until the permanent meter is set: ¾-inch construction service, flat charge per month $24.9826.91 1-inch construction service, flat charge per month $47.6351.31 Section 3. That Section 26-127 (a) Residential Rates and that Section 26-127 (b) Nonresidential Rates of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-127. Schedule B, meter rates. (a) Residential Rates. (1) Residential customers with one (1) dwelling unit. a. Base Charge. Residential customers with one (1) dwelling unit shall pay a base monthly charge of fourteen fifteen dollars and fourteen forty-one cents ($14.1415.41). b. Quantity Charge. Residential customers with one (1) dwelling unit shall pay a monthly quantity charge as follows: For the first seven thousand (7,000) gallons used per month, a charge of two dollars and eighteen thirty-eight and ninesix- tenths cents ($2.1892.386) per one thousand (1,000) gallons. For the next six thousand (6,000) gallons used per month, a charge of two dollars and fifty-one seventy-four and six two-tenths cents ($2.5162.742) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two three dollars and eighty-nine fifteen and four-tenths cents ($2.8943.154) per one thousand (1,000) gallons. (2) Residential customers with two (2) dwelling units. a. Base Charge. Residential customers with two (2) dwelling units shall pay a base monthly charge of sixteen dollars and sixty-onethirty-one cents ($16.6116.31). b. Quantity Charge. Residential customers with two (2) dwelling units shall pay a monthly quantity charge as follows: 279 of 402 - 3 - For the first nine thousand (9,000) gallons used per month, a charge of two dollars and tenseven and nineone- tenths cents ($2.1092.071) per one thousand (1,000) gallons. For the next four thousand (4,000) gallons used per month, a charge of two dollars and forty-twothirty-eight and four-tenths cents ($ 2.4242.380) per one thousand (1,000) gallons. For all additional gallons used per month, a charge of two dollars and seventy-eight seventy-three and nine-tenths cents ($2.7892.739) per one thousand (1,000) gallons. (3) Residential customers with more than two (2) dwelling units. a. Base Charge. Residential customers with more than two (2) dwelling units shall pay a base monthly charge of fourteen eleven dollars and threeseventy-two cents ($14.0311.72) for the first dwelling unit and four three dollars and sixty-sevenninety cents ($ 4.673.90) for the second and each additional dwelling unit. b. Quantity Charge. Residential customers with more than two (2) dwelling units shall pay a monthly quantity charge of two one dollars and three seventy and seventhree- tenths cents ($2.0371.703) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and fifty-fourtwelve and nine-tenths and seven-tenths cents ($2.5472.129) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (b) Nonresidential Rates. (1) Base charge. Nonresidential, except for special users as described in Section 26-127 (c) customers shall pay a base monthly charge based on meter size as follows: Meter Size (inches) Monthly Base Charge ¾ $ 12.6613.63 1 35.3138.03 1½ 96.02103.41 2 144.71155.85 280 of 402 - 4 - 3 220.71237.70 4 346.49373.17 6 672.15723.91 8 1187.421278.85 (2) Quantity charges. Nonresidential customers shall pay a monthly quantity charge of one dollar and seventy-sixeighty-nine and one-tenthseven-tenths cents ($1.7611.897) per one thousand (1,000) gallons used in the winter season months of November through April. They shall pay a monthly quantity charge of two dollars and twenty thirty-seven and one-tenth cents ($2.2012.370) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal monthly quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer quantity charge. (3) Charges for excess use. Monthly water use in excess of the amounts specified in the following table shall be billed at two dollars and fifty-threeseventy-two and five-tenth cents ($2.5302.725) per one thousand (1,000) gallons used in the winter season months of November through April. Monthly water use in excess of the amounts specified below shall be billed at three dollars and sixteen forty and foureight-tenths cents ($3.1643.408) per one thousand (1,000) gallons used in the summer season months of May through October. The meter reading date shall generally determine the seasonal billing excess quantity charge; however, no customer shall be billed more than six (6) full billing cycles at the summer excess quantity charge. Meter Size (inches) Specified Amount (gallons per month) ¾ 100,000 1 300,000 1½ 625,000 2 1,200,000 3 1,400,000 4 2,500,000 Section 4. That Section 26-127 (c) High Volume Industrial Rates of the City of Fort Collins Code is hereby amended to read: (c) High Volume Industrial Rates 281 of 402 - 5 - 1. High Volume Industrial Rates apply to any customer with an Average Daily Demand in excess of 2,000,000 gallons per day. The specific rate for any qualifying customer shall be based upon the appropriate peaking factor for that customer in the table below: Peaking Factor Monthly charge per thousand gallons 1.00 – 1.09 $1.4301.490 1.10 – 1.19 $1.4901.540 1.20 – 1.29 $1.5501.590 1.30 – 1.39 $1.6001.640 1.40 – 1.49 $1.6601.690 1.50 – 1.59 $1.7101.740 1.60 – 1.69 $1.7701.790 1.70 – 1.79 $1.8301.840 1.80 – 1.89 $1.8801.890 1.90 – 1.99 $1.9401.950 > 2.00 $2.000 Section 5. That Section 26-129 (b) Fire Hydrant Fees and Charges of the City of Fort Collins Code is hereby amended to read: Sec. 26-129. Schedule D, miscellaneous fees and charges. (b) The fire hydrant fees and charges shall be as follows: (1) For installation of meter: $43.00 (2) For removal of meter: 43.00 (3) For daily rental for meter and fittings: 8.60 (4) For water service rate per one thousand (1,000) gallons water used: 5.026.00 Section 6. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in for meter readings on or after January 1, 2014. 282 of 402 - 6 - Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 283 of 402 - 1 - ORDINANCE NO. 149, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the water utility, as set forth therein; and WHEREAS, Section 26-120 of the City Code provides that the rates and parameters of the water plant investment fees be reviewed annually by the City Manager and shall be presented to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 139, 2011, which established the plant investment fees that are now in effect; and WHEREAS, the City Council has determined that it is appropriate for new development to contribute its proportionate share of providing capital improvements; and WHEREAS, City staff recommends that existing water plant investment fees be adjusted based on the current replacement cost of the capital facilities that will be needed to serve new development and for future growth related capital expansion; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the water plant investment fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed water plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the water plant investment fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-128 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-128. Schedule C, water plant investment fees. The water plant investment fee prescribed in § 26-120 shall be payable by users both inside and outside of the City, as follows: 284 of 402 - 2 - (1) Single-family residential buildings: For the first three-fourths-inch water tap or meter, a fee of seven hundred thirty twenty dollars ($730720.) for a single-family residence, plus thirty-nine thirty-two cents ($0.390.32) for each square foot of lot area. For a single- family residential lot greater than one-half (½) acre in size, the lot size shall be deemed to be one-half (½) acre for the purpose of this fee calculation. For each additional tap or meters larger than three-fourths (¾) inch, the nonresidential rate shall apply. (2) Residential buildings of two (2) or more dwelling units: For each residential building unit, a fee of five hundred tenforty dollars ($.510.540.), plus twenty-seven twenty-five cents ($0.270.25) for each square foot of lot area. The fee will provide for one (1) tap per residential building and an adequate number of additional taps to serve common irrigable areas, if any. The number and size of taps shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (3) Mobile home parks: For each mobile home park, a fee of five hundred tenforty dollars ($.510.540.) for each mobile home space in the park, plus twenty-seven twenty-five cents ($0.270.25) for each square foot of lot area. The fee will provide for one (1) tap per mobile home park. The size of the tap shall be determined by the General Manager based upon the criteria established in the Uniform Plumbing Code as amended pursuant to Chapter 5 of the Code. (4) Hotels, rooming houses, sororities, fraternities and similar uses: The nonresidential rate shall apply. (5) Nonresidential service: a. Service to all nonresidential taps, including but not limited to taps for commercial and industrial service, shall be charged according to the size of the meter pursuant to the following schedule: Meter Size (inches) Nonresidential Plant Investment Fee ¾ $ 7,8807,000 1 22,75019,050 1½ 47,41041,600 2 72,29064,410 3 165,290 285 of 402 - 3 - b. The fee for all meters larger than threetwo (32) inches shall be negotiated with the Utilities Executive Director and shall be based on estimated peak day demand but shall not be less than the charge for a three-inch two-inch meter. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced and considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk 286 of 402 - 1 - OPTION A - MODIFIED Cost of Service ORDINANCE NO. 150, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO THE REVISE WASTEWATER RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the wastewater utility, as set forth therein; and WHEREAS, City Code Section 26-277 requires that the City Manager analyze the operating and financial records of the wastewater utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS, City Code Section 26-277 further requires that the user rates be revised as necessary to assure equity of the rate system established and to assure that sufficient funds are obtained to adequately operate and maintain the wastewater system; and WHEREAS, the Water Board considered the proposed wastewater rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the changes by unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $ 33.7435.80 per month Single-family residential user (metered water use) $ 15.0715.99 per month plus $ 2.9293.108 per 1,000 gallons of either winter quarter water use or 3,000 gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 287 of 402 - 2 - 4,800 gallons per month shall be billed. B Duplex (two-family) residential users (flat rate) $ 52.6851.36 per month Duplex (two-family) residential users (metered water use) $19.5219.03 per month plus $ 2.9292.856 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $2.9293.010 per 1,000 gallons of winter quarter water use, plus a base charge of $2.302.36 per month per dwelling unit served. For multi family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. D Minor nonresidential user $2.9292.885 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter (inches) Base charge ¾ or smaller $ 8.468.33 1 19.5219.23 1½ 39.2837.72 2 67.2166.20 3 107.38105.77 4 169.59167.05 6 743.42732.27 8 858.38845.50 E and F Intermediate nonresidential user and Significant industrial user $ 2.929 2.885 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $ 3.0293.120 per million gallons for each milligram per liter of suspended solids in excess of 235 288 of 402 - 3 - milligrams per liter; plus a surcharge of $ 2.523 2.599 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $ 1.593 1.641 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $ 4.716 4.857 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $ 8.468.33 1 19.5219.23 1½ 39.2837.72 2 67.2166.20 3 107.38105.77 4 169.59167.05 6 743.42732.27 8 858.38845.50 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 2. That Section 26-282 (a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of wastewater strength surcharge for customers located either inside or outside the City limits shall be as follows: 289 of 402 - 4 - Parameter Excess over (mg/l) Rate per 1,000 gallons BOD 265 $ 0.0025230.002599 COD 400 0.0015930.001641 TOC 130 0.0047160.004857 TSS 235 0.0030290.003120 Section 3. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect in January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 290 of 402 - 1 - OPTION B - FULL Cost of Service ORDINANCE NO. 150, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE WASTEWATER RATES, FEES AND CHARGES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the City Charter to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the wastewater utility, as set forth therein; and WHEREAS, City Code Section 26-277 requires that the City Manager analyze the operating and financial records of the wastewater utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS, City Code Section 26-277 further requires that the user rates be revised as necessary to assure equity of the rate system established and to assure that sufficient funds are obtained to adequately operate and maintain the wastewater system; and WHEREAS, the Water Board considered the proposed wastewater rates, fees and changes for 2014 at its September 19, 2013, meeting and recommended approval of the changes by unanimous vote; and WHEREAS, the City Manager has recommended to the City Council that the following wastewater rates be imposed for the billing year beginning January 1, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-280 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-280. Service charges established by category. The schedule of rates for each category described in § 26-279 shall be as follows: Category Class of Customer Rate A Single-family residential user (flat rate) $ 33.7436.29 per month Single-family residential user (metered water use) $ 15.0716.21 per month plus $ 2.9293.150 per 1,000 gallons of either winter quarter water use or 3,000 291 of 402 - 2 - gallons, whichever is greater. For single family customers who have not established a winter quarter water use at the service address, a system average of 4,800 gallons per month shall be billed. B Duplex (two-family) residential users (flat rate) $ 52.6849.71 per month Duplex (two-family) residential users (metered water use) $19.5218.42 per month plus $ 2.9292.764 per 1,000 gallons of either winter quarter water use or 4,000 gallons, whichever is greater. For duplex customers who have not established a winter quarter water use at the service address, a system average 7,200 gallons shall be billed. C Multi-family residential user (more than two dwelling units including mobile home parks) and winter quarter based nonresidential user $2.9293.051 per 1,000 gallons of winter quarter water use, plus a base charge of $2.302.40 per month per dwelling unit served. For multi family customers who have not established a winter quarter water use at the service address, a system average of 3,400 gallons per living unit shall be billed. D Minor nonresidential user $2.9292.823 per 1,000 gallons of water use, measured sewage flow or winter quarter water use, whichever is applicable, plus the following applicable base charge: Size of water meter (inches) Base charge ¾ or smaller $ 8.468.15 1 19.5218.81 1½ 39.2836.90 2 67.2164.77 3 107.38103.48 4 169.59163.43 6 743.42716.42 8 858.38827.20 292 of 402 - 3 - E and F Intermediate nonresidential user and Significant industrial user $ 2.9292.823 per 1,000 gallons of water use, measured wastewater flow or winter quarter water use, whichever is applicable; plus a surcharge of $ 3.0293.120 per million gallons for each milligram per liter of suspended solids in excess of 235 milligrams per liter; plus a surcharge of $ 2.5232.599 per million gallons for each milligram per liter of BOD in excess of 265 milligrams per liter or a surcharge of $ 1.5931.641 per million gallons for each milligram per liter of COD in excess of 400 milligrams per liter, or a surcharge of $ 4.7164.857 per million gallons for each milligram per liter of TOC in excess of 130 milligrams per liter, whichever is applicable. The user shall pay this calculated amount plus the applicable base charge set forth below: Size of water meter (inches) Base charge ¾ or smaller $ 8.468.15 1 19.5218.81 1½ 39.2836.90 2 67.2164.77 3 107.38103.48 4 169.59163.43 6 743.42716.42 8 858.38827.20 G User outside City limits The rate for users outside the City limits shall be the same as for like service inside the City limits as is specified in Categories A—F and H in this Section H Special with agreement The rate pursuant to a special wastewater services agreement approved by the City Council pursuant to § 26-290 shall be set forth in said agreement. Section 2. That Section 26-282 (a) of the Code of the City of Fort Collins is hereby amended to read as follows: 293 of 402 - 4 - Sec. 26-282. Wastewater strength or industrial surcharges and categories established. (a) The schedule of wastewater strength surcharge for customers located either inside or outside the City limits shall be as follows: Parameter Excess over (mg/l) Rate per 1,000 gallons BOD 265 $ 0.0025230.002599 COD 400 0.0015930.001641 TOC 130 0.0047160.004857 TSS 235 0.0030290.003120 Section 3. That the amendments to the Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 294 of 402 - 1 - ORDINANCE NO. 151, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE SEWER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the wastewater utility, as set forth therein; and WHEREAS, Section 26-277 of the Code of the City of Fort Collins requires that the City Manager analyze the operating and financial records of the wastewater utility during each calendar year and recommend to the City Council the user rate fees or adjustments to be in effect for the following year; and WHEREAS, Section 26-283 of the City Code provides that the City Manager review the rates and parameters of the Sewer Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 141, 2011, which established the Sewer Plant Investment fees now in effect; and WHEREAS, City staff recommends that existing Sewer Plant Investment Fees be adjusted based on the current replacement cost of the capital facilities that will be needed to serve new development and for future growth related capital expansion; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the Sewer Plant Investment Fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed wastewater plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise Sewer Plant Investment Fees. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That subsections (a) and (d) of Section 26-284 of the Code of the City of Fort Collins are hereby amended to read as follows: Sec. 26-284. Sewer plant investment fees and surcharges established. 295 of 402 - 2 - (a) The schedule of sewer plant investment fees, subject to the exceptions and additional requirements provided in this Section, is as follows: Category SPIF A $ 3,440.3,090 B and C $ 2,410.2,470 for each dwelling unit or mobile home space Category Water meter size (inches) Fee D, E, F ¾ 6,8806,550 1 17,30015,440 1½ . 30,48029,890 2 53,52058,790 3 145,310 4 3 and above Calculated on an individual basis based on peak wastewater flow (determined in the manner set forth hereinafter) but not less than the charge for a three-inch meter G Same as equivalent category, plus any special sanitation district fees. H Determined pursuant to paragraph (d) of this Section. (d) The amount of the plant investment fee and surcharge for each nonresidential surcharged user, users in Category H and any user that is expected to generate greater than its proportionate share of peak day flow at the treatment plant for the applicable category (including both contributed wastewater volume and volume related to infiltration and inflow), shall be calculated utilizing the following formula: SPIF = Site Flow x [Flow$ + (BOD x BOD$) + (TSS x TSS$)] + I&I Flow x [Flow$ + (200 mg/l x BOD$) + (250 mg/l x TSS$)] Where: SPIF = Plant investment fee for Category H users and users discharging wastewater with average concentrations of BOD and/or TSS which exceed those average concentrations which are set forth in § 26-282(b) under Category E-34 Site Flow = The user's proportionate share of peak day flow at the treatment plant based on site flow discharge from user's site I&I Flow = That proportionate share of peak day flow due to infiltration and inflow as allocated to user's site flow discharge Flow$ = $6.10per 6.26 per gallon (unit cost of facilities attributable to treating wastewater 296 of 402 - 3 - flow) BOD = Average BOD concentration for user category or measured BOD concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 200 mg/l BOD$ = $0.0134per 0.0152 per mg/l (unit cost of facilities attributable to treating BOD) TSS = Average TSS concentration for user category or measured TSS concentration for the user as determined in accordance with Subsection (c) of this Section, but not less than 250 mg/l TSS$ = $0.0107per 0.0122 per mg/l (unit cost of facilities attributable to treating TSS) …. (f) For purposes of this Section, the proportionate share of peak day flow at the treatment plant for users in Categories D, E and F shall be deemed to be: Water meter size (inches) Peak flow (gallons per day) ¾ 600530 1 1,5101,250 1½ 2,6602,420 2 4,6704,760 3 12,680 4 3and greater Calculated on an individual basis based on user's proportionate share of peak day flow at the treatment plant (including both contributed wastewater volume and volume related to infiltration and inflow) but not less than the peak day flow for a threetwo-inch meter …. Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. 297 of 402 - 4 - Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 298 of 402 - 1 - ORDINANCE NO. 152, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS TO REVISE THE STORMWATER PLANT INVESTMENT FEES WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to by ordinance from time to time fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the storm water utility, as set forth therein; and WHEREAS, the City Council has adopted stormwater basin master plans recommending stormwater facilities that are necessary to provide for the proper drainage and control of flood and surface waters within the City; and WHEREAS, in 1998, the City Council adopted Ordinance No. 168, 1998, determining that all developed lands within the City benefit by the installation of such stormwater facilities; and WHEREAS, existing stormwater rate payers have paid for the design, right-of-way and construction of stormwater facilities identified in the drainage basin master plans that will benefit and be utilized by new development; and WHEREAS, the City Council has determined that new development should pay its proportionate share of the costs of the stormwater infrastructure as it exists at the time of development; and WHEREAS, Section 26-511(a) of the Code requires that the City Manager review the rates and parameters of the Stormwater Plant Investment Fees annually and present them to City Council for approval no less frequently than biennially; and WHEREAS, on November 1, 2011, the City Council adopted Ordinance No. 144, 2011, which established the Stormwater Plant Investment Fees now in effect; and WHEREAS, the City Manager and City staff have recommended to the City Council the following adjustments to the Stormwater Plant Investment Fees to be effective January 1, 2014; and WHEREAS, the Water Board considered the proposed stormwater plant investment fee changes for 2014 at its September 19, 2013, meeting and recommended the approval of the proposed changes by an unanimous vote; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 26 of the City Code to revise the amount of the stormwater plant investment fee. 299 of 402 - 2 - NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 26-512(2) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 26-512. Stormwater plant investment fees established. . . . (2) Plant investment fee base rate. The stormwater plant investment fee base rate is six seven thousand three eight hundred ninety seventeen dollars ($6,390.7,817) per gross acre of area. … Section 2. That the amendments to Chapter 26 of the City Code contained herein shall go into effect January 1, 2014. Introduced and considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk 300 of 402 - 1 - ORDINANCE NO. 153, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING CHAPTER 10 OF THE CODE OF THE CITY OF FORT COLLINS TO UPDATE FLOODPLAIN USE PERMIT FEE AMOUNTS WHEREAS, the City Council is empowered and directed by Article XII, Section 6, of the Charter of the City of Fort Collins, Colorado, to fix, establish, maintain and provide for the collection of such rates, fees or charges for utility services furnished by the City as will produce revenues sufficient to pay the costs, expenses and other obligations of the stormwater utility, as set forth therein; and WHEREAS, City staff recommends that existing floodplain use permit fees be adjusted as they have not increased since originally adopted, to collect appropriately for the costs of providing requested floodplain services; and WHEREAS, the City Manager and staff have recommended to the City Council the following adjustments to the floodplain use permit to be effective January 1, 2014; and WHEREAS, based on the foregoing, it is the desire of the City Council to amend Chapter 10 of the City Code to revise the fee for obtaining a floodplain use permit. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That subsection (j) of Section 10-27 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 10-27. Floodplain use permit. . . . (j) An applicant for a floodplain use permit shall pay twenty-five fifty dollars ($2550.). If the Utilities Executive Director, pursuant to this Article, requires the applicant to furnish a floodplain modeling analysis, the applicant shall pay an additional fee of three five hundred dollars ($300500.). Section 2. That subsection (c) of Section 10-28 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 10-28. Appeals/variance procedure. . . . (c) Persons desiring to request a variance shall at the time of application for said variance submit a variance application together with a floodplain use permit application, and shall at the time of application pay the floodplain use permit fee of twenty-five fifty dollars ($25.50.) and a variance processing fee in the amount of three hundred dollars ($300.). 301 of 402 - 2 - Written notice of a variance hearing shall be given to the applicant at least three (3) days prior to the hearing by mailing the notice to the applicant's address, as set forth in the variance application, by regular mail. Section 3. That the amendments to Chapter 26 of the City Code contained herein shall go into effect on January 1, 2014. Introduced and considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 5th day of November, A.D. 2013. ______________________________ Mayor ATTEST: _____________________________ City Clerk 302 of 402 Agenda Item 27 Item # 27 Page 1 AGENDA ITEM SUMMARY October 15, 2013 City Council STAFF Megan Bolin, Economic Health Analyst SUBJECT First Reading of Ordinance No. 154, 2013, Appropriating Funds from the City's General Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of URA Reimbursements for the Capstone Redevelopment Corporation Summit on College Project, and Approving a Loan Agreement for that Purpose. EXECUTIVE SUMMARY The purpose of this item is to approve a Loan Agreement between the City of Fort Collins and Fort Collins Urban Renewal Authority that will fund the approved $5 million tax increment financing reimbursement to Capstone Development Partners. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance. BACKGROUND / DISCUSSION In September 2011, the Fort Collins Urban Renewal Authority (URA) approved a Redevelopment Agreement with Capstone Development Partners (Developer) for The Summit on College, a mixed-use student housing project in the Prospect South Tax Increment Financing (TIF) District. The Redevelopment Agreement obligated the URA to reimburse the Developer up to $5 million in a lump sum for eligible project costs. Knowing that the URA would not have sufficient fund balance to make this payment outright, it has been anticipated that the URA would seek a loan from the City of Fort Collins, repaid using tax increment revenue generated by the project over the life of the Prospect South TIF District. Per the Redevelopment Agreement, the $5 million reimbursement obligation is due to the Developer upon completion of the project, subject to verification of eligible costs by URA staff. The Developer obtained a Certificate of Occupancy for the project in August 2013, and subsequently submitted its reimbursement request to the URA. Although URA staff is awaiting additional documentation from the Developer to verify several of the costs, once received, the agreement requires the URA to make the reimbursement within 45 business days. The City and URA have negotiated a Loan Agreement, which requires adoption of an Ordinance by City Council and a Resolution by the URA Board; however, this Agreement deviates from the current City interagency loan policy because several estimates made at the time of the Redevelopment Agreement have proven inaccurate, details described below. Estimates vs. Actuals When the amount of tax increment generated by The Summit was estimated in 2011, the URA used a methodology based on project costs and assumed 1% appreciation each year, for a total of approximately $8 million. It was anticipated that the URA would have to borrow from the City to pay the reimbursement to the Developer, and at the time, the financing charge on a $5 million loan was estimated to be $2.4 million. Based on the most recent August 2013 preliminary valuation from Larimer County, the project is estimated to generate $7 million of tax increment, creating a $1 million revenue shortfall from the original projection. 303 of 402 Agenda Item 27 Item # 27 Page 2 Additionally, a combination of rising interest over the past two years (adding 71 basis points) and the City’s new interagency loan policy (adding 25 basis points), have increased the expected interest rate on the loan from the City from 4.0% to 4.96%, increasing interest cost from $2.4M to $3.8M. Table 1 summarizes the difference between the original estimates and actual numbers: Table 1 2011 Estimates 2013 Actuals Total Tax Increment $8 million $7 million Reimbursement Obligation $5 million $5 million¹ Financing Cost to URA $2.4 million $3.78 million Balance $0.6 million ($1.78 million) ¹ Subject to final verification by URA staff. Between the decrease in tax increment revenue and increase in financing charge, the URA would be unable to afford the full debt obligation of a $5 million loan from the City under current investment policy interest rates. Consequently, City and URA staff have negotiated a loan agreement that allows the URA to uphold its reimbursement obligation to the Developer and remain financially solvent, while making a concerted effort to uphold the City’s interagency loan policy. Proposed Loan Agreement Terms The URA cash flow does not support a $5 million loan from the City, based on current interest rates and the current interagency loan policy. A new loan structure was developed that assigns an interest rate based on the known revenue stream and term, which turns out to be 2.68%. Since City policy would require 4.96% interest, this leaves a gap of $1.78 million. To fill this gap, the URA commits to pledge 50% of future unencumbered revenue from the Prospect South TIF District to the City. For example, assume the URA collects $1 million in revenue from the Prospect South TIF District in a given year, and owes the City a $400,000 payment (principal and interest) on the Capstone loan; 50% of the remaining $600,000, or $300,000, would be paid to the City to help pay down the $1.78 million interest rate gap. This revenue share structure would continue for the life of the Prospect South TIF District, or until the $1.78 million is paid in full, whichever happens first. While City and URA staff support the negotiated loan terms, the variation from current policy is duly acknowledged. Several practices have been put into place since approval of the Capstone Redevelopment Agreement to prevent the need for additional policy exceptions, including: Tax increment estimates are based on Larimer County’s estimate of valuation that the Developer provides to the URA; the estimates assume 1% appreciation over the life of the associated TIF District. Establishing a maximum percentage of tax increment that would be available to reimburse a project that includes a combination of both reimbursable costs to the developer and URA financing costs. Establishing a maximum tax increment contribution percentage of the total project cost. These items, particularly the last two bullets, have been the topic of recent discussions between the City and URA, and staff is scheduled to present more detail to the Finance Committee on October 21, 2013 for further vetting. Next Steps Second Reading of this Ordinance is scheduled for November 5, 2013. Also on that night, the URA Board is scheduled to consider a Resolution approving the Loan Agreement, as well as a Resolution that would appropriate the loan revenue to reimburse the Developer. 304 of 402 Agenda Item 27 Item # 27 Page 3 FINANCIAL / ECONOMIC IMPACT Adopting this Ordinance would approve a $5 million loan from the City of Fort Collins to the Fort Collins Urban Renewal Authority (URA). Funding from the City will come from the General Fund reserves. The URA would be charged an interest rate of 2.68%. Principal and interest payments will be made to the City from tax increment revenue generated by the Prospect South TIF District through 2037. Additionally, the URA will pay the City 50% of the annual unencumbered revenue collected from the Prospect South TIF District, up to $1.78 million, to repay the difference between agreed-upon 2.68% interest rate and the City's current policy interest rate of 4.96%. ENVIRONMENTAL IMPACTS There are no direct environmental impacts resulting from this Ordinance. BOARD / COMMISSION RECOMMENDATION The URA Board Finance Committee discussed the Loan Agreement on September 16, 2013. The Committee supported the proposed terms and bringing forward this Ordinance to execute the Agreement. ATTACHMENTS 1. URA Finance Committee Minutes, September 16, 2013 2. Powerpoint presentation 305 of 402 2 URA Loan – Summit In September 2011, the Fort Collins Urban Renewal Authority (URA) approved a Redevelopment Agreement with Capstone Development Corp (Developer) for The Summit on College, a mixed-use student housing project in the Prospect South Tax Increment Financing (TIF) District. The Agreement obligated the URA to reimburse the Developer for up to $5 million of eligible costs upon completion of the project. The Developer obtained a Certificate of Occupancy for the project in August 2013 and is in the process of submitting their reimbursement request to the URA. When the amount of tax increment generated by The Summit was estimated in 2011, the URA used a methodology based on project costs and assumed 1% appreciation each year, for a total of approximately $8 million. It was anticipated that the URA would have to borrow from the City to pay the reimbursement to the Developer, and at the time, the financing charge on a $5 million loan was estimated to be $2.4 million. Based on the most recent August 2013 preliminary valuation from Larimer County, the project is estimated to generate $7 million of tax increment, creating a $1 million revenue shortfall from the original projection. Additionally, a combination of rising interest over the past two years (adding 71 basis points) and the City’s new interagency loan policy (adding 25 basis points), have increased the expected interest rate on the loan from the City from 4.0% to 4.96% increasing interest cost from $2.4M to $3.8M. Table 1 summarizes the difference between the original estimates and actual numbers: Table 1* – Note: numbers have been updated per latest interest rates 2011 Estimates 2013 Actuals Total Tax Increment $8 million $7 million Reimbursement Obligation $5 million $5 million¹ Financing Cost to URA $2.4 million $3.8 million Balance $0.6 million ($1.8 million) ¹ Subject to final verification by URA staff. *Number have been updated since the Between the decrease in tax increment revenue and increase in financing charge, the URA would be unable to afford the full debt obligation of a $5 million loan from the City under current investment policy interest rates. Consequently, City and URA staff have negotiated a loan agreement that allows the URA to uphold its reimbursement obligation to the Developer and remain financially solvent, while making a concerted effort to uphold the City’s interagency loan policy. Proposed Loan Agreement Terms The URA cash flow does not support a $5 million loan from the City based on the current interest rates and the current interagency loan policy. A new loan structure was developed that assigns an interest rate based on the known revenue stream and term, which turns out to be 2.68%. Since City policy would require 4.96% interest, this leaves a gap of $1.78 million. To fill this gap, the URA commits to pledge 50% of future unencumbered revenue from the Prospect South TIF District to the City. For example, assume the URA collects $1 million in revenue in a given year and owes the City a $400,000 payment on the Capstone loan; 50% of the remaining $600,000, or $300,000, would be paid to the City to help pay down the $1.78 million interest rate gap. This revenue share structure would continue for the life Urban Renewal Authority Finance Committee meeting September 16, 2013 ATTACHMENT 1 306 of 402 3 of the Prospect South TIF District, or until the $1.78 million is paid in full, whichever happens first. While City and URA staff support the negotiated loan terms, the variation from current policy is duly acknowledged. Several practices have been put into place since approval of the Capstone Redevelopment Agreement to prevent the need for additional policy exceptions, including: Tax increment estimates are based on Larimer County’s estimate of valuation that the Developer provides to the URA; the estimates assume 1% appreciation over the life of the associated TIF District. Establishing a maximum percentage of tax increment that would be available to reimburse a project that includes a combination of both reimbursable costs to the developer and URA financing costs. Establishing a maximum tax increment contribution percentage of the total project cost. These items, particularly the last two bullets, have been the topic of recent discussions between the City and URA, and staff is scheduled to present more detail to the Finance Committee for further vetting at an upcoming meeting. Bob Overbeck asked why the City would make an exception to common practices in this case. Mike Beckstead answered that the City has a commitment to the developer, and by making this exception, we can honor that commitment. The Mayor agreed that Council would need to know how this exception would affect City policies or practices. Is the City setting a precedent by making this exception? Mike Beckstead answered that, going forward, the City may limit itself to a 75% commitment to ensure that this situation never happened again. Next Steps Staff will work on drafting a policy for estimating TIF financing. Urban Renewal Authority Finance Committee meeting September 16, 2013 307 of 402 1 The Summit URA-City Loan Agreement City Council October 15, 2013 ATTACHMENT 2 308 of 402 2 Tonight’s Action •1st Reading, Ordinance approving a loan agreement between the City and Fort Collins Urban Renewal Authority (URA) to reimburse The Summit project 309 of 402 3 The Summit – Before and After • Vacant since 1997 flood • Deteriorating structures • Overhead power lines • 676 beds student housing • 8,000 sq. ft. retail • Removed from floodplain • Street and utility improvements 310 of 402 4 Redevelopment Agreement • Redevelopment Agreement approved Sep. 2011 • $5 M tax increment financing (TIF) reimbursement upon completion of project • Developer obtained Cert. of Occupancy Aug. 2013 and submitted reimbursement request for eligible costs • URA does not have fund balance for reimbursement and seeks loan from the City 311 of 402 5 TIF Estimates v. Actuals 2011 Estimates 2013 Actuals Total Tax Increment $8M $7M Reimbursement Obligation ($5M) ($5M) Financing Cost to URA 4.0% = ($2.4M) 4.96 % = ($3.8M) Balance $600K ($1.8M) • URA cannot afford a loan at current City interest rate • Proposed loan agreement re-structured to be affordable and still uphold City policy 312 of 402 6 Loan Agreement Term 24 years Loan amount $5M Adjusted interest 2.68% = $2M Total cost to URA $7M City policy interest* 4.96% = $3.78M Interest rate difference ($1.78M) • URA agrees to share future unencumbered revenue to repay $1.78M interest shortfall * Interest rate will be set when Agreement is executed 313 of 402 7 Revenue Share Example • URA shares 50% of unencumbered revenue from Prospect South TIF District *Hypothetical Example* Prospect South Tax Increment Revenue $200,000 Capstone Payment ($100,000) Other Prospect South Debt Obligations ($50,000) Unencumbered Revenue $50,000 50% to City $25,000 50% to URA $25,000 314 of 402 8 Recommendation and Next Steps • Finance Committee supported bringing the loan forward • Staff recommends adoption of the Ordinance November 5, 2013 • City Council 2nd Reading • URA Board Resolution approving Agreement • URA Board Resolution appropriating loan proceeds 315 of 402 9 Thank you 316 of 402 - 1 - ORDINANCE NO. 154, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING FUNDS FROM THE CITY’S GENERAL FUND RESERVES FOR TRANSFER TO THE FORT COLLINS URBAN RENEWAL AUTHORITY FOR THE PURPOSE OF URA REIMBURSEMENTS FOR THE CAPSTONE REDEVELOPMENT CORPORATION SUMMIT ON COLLEGE PROJECT, AND APPROVING A LOAN AGREEMENT FOR THAT PURPOSE WHEREAS, on June 6, 1978, the City Council adopted Resolution 78-49, adopting findings and establishing the Fort Collins Urban Renewal Authority (the “Authority”) as an urban renewal authority, pursuant to Colorado Revised Statutes, Part 1 of Title 31, Article 25, as amended (the “Act”); and WHEREAS, by Resolution 2011-080, adopted and approved on September 6, 2011, the City Council found and declared that the area described in such Resolution (the “Midtown Area”) is a blighted area as described in the Act and appropriate for an urban renewal project; and WHEREAS, by Resolution 2011-081, adopted and approved on September 6, 2011, the City Council adopted an urban renewal plan for the Midtown Area in Fort Collins, which established a tax increment district referred to as the Prospect South Tax Increment District that includes the site of the Summit on College Redevelopment Project (the “Project”); and WHEREAS, by Resolution 2013-043, adopted and approved on May 7, 2013, the City Council adopted amendments to the previously adopted urban renewal plan for the Midtown Area (as amended, the “Urban Renewal Plan” or the “Plan”); and WHEREAS, the purpose of the Urban Renewal Plan is to eliminate blight and otherwise implement and further the above-referenced resolutions, and the purposes, policies, goals, and objectives of the Authority and the Plan, pursuant to the Act; and WHEREAS, on September 13, 2011, the Urban Renewal Authority Board approved a Redevelopment Agreement (the “Redevelopment Agreement”) between the URA and Capstone Development Corporation (“Capstone”) to provide financial assistance for certain improvements and enhancements required by the Project; and WHEREAS, the Project is located within the boundaries of the Plan and will generate an estimated $7,000,000 in tax increment funds over the life of the Project; and WHEREAS, on August 15, 2006, the City Council adopted Resolution 2006-082 authorizing an intergovernmental agreement between the City and the URA which provides that the City would provide support services to the URA and advance funds to the URA in connection with URA redevelopment projects; and 317 of 402 - 2 - WHEREAS, on July 5, 2011, the City Council adopted Resolution 2011-055, requiring that the intergovernmental agreement between the City and the URA expressly state that all loan arrangements between the City and the URA must be documented by a loan agreement and promissory note; and WHEREAS, the URA does not anticipate having sufficient tax increment revenues in 2013 to fund its contribution to the Project under the Redevelopment Agreement and City staff therefore recommends that the City lend the URA sufficient funds for that purpose in the amount of $5,000,000; and WHEREAS, there are sufficient prior year reserves in the General Fund to fund a loan to the URA for the purpose of reimbursing Capstone for the improvements and enhancements as described in the Redevelopment Agreement; and WHEREAS, City staff has prepared a proposed promissory note and loan agreement titled “Loan Agreement between the City of Fort Collins and the Fort Collins Urban Renewal Authority for Funding the Capstone Redevelopment Corporation Summit on College Project” (the “Loan Agreement”), attached hereto as Exhibit “A” and incorporated herein by this reference; and WHEREAS, the City Manager recommends funding the loan to the URA from the General Fund prior year reserves; and WHEREAS, on December 18, 2012, the City Council adopted Resolution 2012-119, adopting an updated City Investment Policy describing the City’s Inter-Agency Loan Program, to outline terms and requirements for City loans to outside agencies such as the URA; and WHEREAS, the adopted Inter-Agency Loan Program calls for interest on loans with a term greater than 16 years to be the higher of the Treasury Note or Municipal Bond rate plus 0.5 percent, with a floor of 4.00 percent, and pursuant to this provision, the rate of interest for the proposed loan, based on early October rates, would be 4.96 percent; and WHEREAS, the Loan Agreement states that the URA will instead pay interest to the City at a rate of 2.68 percent per annum on the loaned funds, but will provide additional repayment by pledging 50 percent of future Prospect South property tax increment revenues, to the extent such revenues are unencumbered by URA obligations for the Project or other redevelopment projects in the Prospect South tax increment district, up to a maximum of $1,780,000; 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. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: 318 of 402 - 3 - Section 1. The City Council hereby finds and determines, pursuant to the Constitution, the laws of the State, the Charter and the Code of the City, and in accordance with the foregoing recitals, that adopting this Ordinance, entering into the Loan Agreement and performing all obligations set forth therein, are necessary, convenient, and in furtherance of the City’s purposes and are in the best interests of the inhabitants of the City, and will serve the important public purposes of remedying blighted conditions within the Plan area and the Prospect South tax increment district pursuant to the Urban Renewal Plan, providing a catalyst for redevelopment in the Midtown Area, increasing sales tax revenues and job opportunities, and providing other economic and social benefits to the City and surrounding community, and the City Council hereby authorizes and approves the same. Section 2. That there is hereby appropriated from General Fund Reserves the sum of FIVE MILLION DOLLARS ($5,000,000) for transfer to the Fort Collins Urban Renewal Authority and appropriated therein as an interest-bearing loan, to provide the Fort Collins Urban Renewal Authority with the necessary financial support to carry out its purposes and obligations under the Redevelopment Agreement for Capstone Development Corporation Infill Development, dated September 13, 2011, in accordance with the Loan Agreement. Section 3. That the Loan Agreement is hereby approved as an exception to the City’s Investment Policy, and the City Manager is authorized to execute said Loan Agreement on behalf of the City, subject to such modifications in form or substance, not inconsistent with the purposes or specific terms of this Ordinance, as the City Manager may, in consultation with the City Attorney, deem desirable and necessary to protect the City’s interests. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 319 of 402 - 4 - Passed and adopted on final reading on the 5th day of November, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 320 of 402 1 LOAN AGREEMENT BETWEEN THE CITY OF FORT COLLINS AND THE FORT COLLINS URBAN RENEWAL AUTHORITY FOR REIMBURSEMENTS FOR THE CAPSTONE REDEVELOPMENT CORPORATION INFILL DEVELOPMENT (SUMMIT ON COLLEGE PROJECT) THIS LOAN AGREEMENT (the “Agreement”) made this ___ day of November, 2013 by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation, (the “City”), and FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and politic of the State of Colorado, (the “URA” or “Borrower”). RECITALS A. Borrower is an urban renewal authority for the City, created pursuant to Colorado Revised Statutes Part 1 of Title 31, Article 25, as amended (the “Act”). B. Borrower was created to prevent and eliminate conditions related to certain “blight factors” in the community. The Act gives the Borrower broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow or lend funds and to acquire property, among others. Urban renewal projects may be financed in a variety of ways and urban renewal authorities are authorized to borrow money, issue bonds, and accept grants from public or private sources. C. By Resolution 2011-080, adopted and approved on September 6, 2011, the City Council found and declared that the area described in such Resolution (the “Midtown Area”) is a blighted area as described in the Act and appropriate for an urban renewal project. D. By Resolution 2011-081, adopted and approved on September 6, 2011, the City Council adopted an urban renewal plan for the Midtown Area in Fort Collins, which area includes the Property. E. By Resolution 2013-043, adopted and approved on May 7, 2013, the City Council adopted amendments to the previously adopted urban renewal plan for the Midtown Area (as amended, the “Urban Renewal Plan” or the “Plan”), the purpose of which is to eliminate blight and otherwise implement and further the above-referenced Resolutions, and the purposes, policies, goals, and objectives of the Borrower and the Plan, pursuant to the Act. F. By the Intergovernmental Agreement approved and amended by City of Fort Collins City Council Resolution 2006-082 and Resolution 2011-055, the City may advance funds to the Borrower in support of its activities so long as any such advance of funds is evidenced in writing in the form of a loan agreement and promissory note, and has been approved by both the City Council and the Board of Commissioners of the URA (the “Board”). EXHIBIT A 321 of 402 2 G. On September 13, 2011, the Board approved a Redevelopment Agreement (the “Redevelopment Agreement”) between the URA and Capstone Development Corporation (“Capstone”) to provide financial assistance for certain improvements and enhancements required by the Summit on College Redevelopment Project (referred to in the Redevelopment Agreement and hereinafter as the “Project”); and H. In accordance with the Redevelopment Agreement the Borrower is obligated to reimburse Capstone for certain costs relating to the design, construction and reconstruction of all improvements, infrastructure, parking, streets, rights-of-way, buildings, structures, signage, and landscaping to be constructed as part of the Project. I. The Borrower has requested that the City provide funding in the form of a loan to the Borrower for these obligations up to an amount not to exceed Five Million Dollars ($5,000,000) and City has agreed to make a loan on the terms and conditions hereinafter set forth (the “Loan”). J. The Project is within the Prospect South Tax Increment District established in the Plan, and tax increment financing for the Project is specifically permitted pursuant to Section 7 of the Plan, and is expected to generate an estimated Seven Million Dollars ($7,000,000) in tax increment revenues over the life of the Project. K. The City Council has approved this Loan Agreement by its final adoption of Ordinance No. __, 2013, on November 5, 2013, and the Board has approved this Loan Agreement by its adoption of Resolution __, on November 5, 2013. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties agree as follows: Section 1. The Loan. After the effective date of this Agreement (the “Effective Date”) and the execution of a promissory note and other documents as may reasonably be required, the City will loan the Borrower upon demand hereunder an amount not to exceed Five Million Dollars ($5,000,000). All funds received by the Borrower hereunder shall be used for the purposes described herein and in the Redevelopment Agreement. Section 2. Interest. Interest on the Loan will accrue at a rate equal to 2.680% per annum. Section 3. Payment. Principal and accrued interest will be due and payable by the Borrower to the City as set forth in the payment schedule contained on Exhibit A, attached hereto and incorporated herein by this reference. Payments will apply to interest first, then to principal. If there is unpaid interest at the end of any calendar year, the shortfall will be added to the outstanding balance, resulting in the compounding of interest. All unpaid principal, interest, default interest, fees and charges for the Loan shall mature on December 31, 2037. Section 4. Additional Amounts Due. In light of the interest rate reduction agreed upon by the City in connection with the Loan, the Borrower has agreed to make additional 322 of 402 3 payment to the City each year of this Agreement until the Loan has been fully repaid, no later than December 31st , in an amount equal to 50 percent of the total property tax increment revenues received by the Borrower from the Prospect South Tax Increment District in that year, after subtraction of all amounts the Borrower is or has become legally obligated to pay from that year’s revenues. The total of payments made by Borrower to the City under this Section 4 shall not exceed One Million Seven Hundred and Eighty Thousand Dollars ($1,780,000). Section 5. Prepayment. Borrower, in its sole discretion, may prepay all or any portion of the payments due under this Agreement at any time and that prepayment will be without any prepayment penalty. If a prepayment is made, the funds will go first toward any interest which has accrued and the balance then applied to the reduction of principal. The URA shall continue to be obligated to make additional payments pursuant to Section 4 in the event of prepayment of scheduled debt service required in Section 3, until the URA has paid the amount of the shortfall in interest considering the interest paid compared to interest accrued at the rate of ____ percent per annum (sometimes referred to as “Policy Interest”) as of the payment date, as illustrated on Exhibit C, attached hereto and incorporated herein by this reference. Section 6. Tracking. Borrower agrees to maintain a separate payable line-item within its accounting system to track the Loan. Section 7. Promissory Note. Borrower’s obligations hereunder shall be documented in a Promissory Note in substantially the form set forth as Exhibit B, attached hereto and incorporated herein by this reference. Section 6. Notice. Any notice required to be delivered in writing will be accomplished by personal delivery or mailing postage prepaid by the United States Postal Service, or other commercial carrier to the following addresses: If to the City City of Fort Collins Director of Finance PO Box 580 Fort Collins, CO 80522-0580 If to the Borrower Fort Collins Urban Renewal Authority Director of Advance Planning PO Box 580 Fort Collins, CO 80522-0580. Section 7. Entire Agreement. This Agreement will be construed according to its fair meaning, as if prepared by both Parties, and constitutes the entire understanding and agreement of the Parties related to the matters addressed in this Agreement. 323 of 402 4 CITY: CITY OF FORT COLLINS, COLORADO, a municipal corporation By: Karen Weitkunat, Mayor ATTEST: By: City Clerk APPROVED AS TO FORM: By: Deputy City Attorney BORROWER: FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and politic of the State of Colorado. By: _________________________________ Darin Atteberry, Executive Director 324 of 402 Urban Renewal Authority Propect South TIF District - The Summit project Loan from City General Fund to URA Loan Amount 5,000,000.00 Start Date 6-Nov-13 Interest Rate 2.68000% Matures 31-Dec-37 Years 24 1/6 Year of Loan Date Payment Interest Principal Balance 0 6-Nov-13 5,000,000.00 1/6 31-Dec-13 - 5,000,000.00 1.17 31-Dec-14 58,267.69 134,000.00 (75,732.31) 5,075,732.31 2.17 31-Dec-15 268,946.07 136,029.63 132,916.44 4,942,815.87 3.17 31-Dec-16 274,324.99 132,467.47 141,857.52 4,800,958.35 4.17 31-Dec-17 274,324.99 128,665.68 145,659.31 4,655,299.04 5.17 31-Dec-18 279,811.49 124,762.01 155,049.48 4,500,249.56 6.17 31-Dec-19 279,811.49 120,606.69 159,204.80 4,341,044.76 7.17 31-Dec-20 285,407.72 116,340.00 169,067.72 4,171,977.04 8.17 31-Dec-21 285,407.72 111,808.98 173,598.74 3,998,378.30 9.17 31-Dec-22 291,115.88 107,156.54 183,959.34 3,814,418.96 10.17 31-Dec-23 291,115.88 102,226.43 188,889.45 3,625,529.51 11.17 31-Dec-24 296,938.20 97,164.19 199,774.01 3,425,755.50 12.17 31-Dec-25 296,938.20 91,810.25 205,127.95 3,220,627.55 13.17 31-Dec-26 302,876.96 86,312.82 216,564.14 3,004,063.41 14.17 31-Dec-27 302,876.96 80,508.90 222,368.06 2,781,695.35 15.17 31-Dec-28 308,934.50 74,549.44 234,385.06 2,547,310.29 16.17 31-Dec-29 308,934.50 68,267.92 240,666.58 2,306,643.71 17.17 31-Dec-30 315,113.19 61,818.05 253,295.14 2,053,348.57 18.17 31-Dec-31 315,113.19 55,029.74 260,083.45 1,793,265.12 19.17 31-Dec-32 321,415.45 48,059.51 273,355.94 1,519,909.18 20.17 31-Dec-33 321,415.45 40,733.57 280,681.88 1,239,227.30 21.17 31-Dec-34 327,843.76 33,211.29 294,632.47 944,594.83 22.17 31-Dec-35 327,843.76 25,315.14 302,528.62 642,066.21 23.17 31-Dec-36 334,400.64 17,207.37 317,193.27 324,872.94 24.17 31-Dec-37 333,579.53 8,706.59 324,872.94 - 7,002,758.21 2,002,758.21 5,000,000.00 EXHIBIT A 325 of 402 EXHIBIT B to LOAN AGREEMENT {00584920 / 4} PROMISSORY NOTE $5,000,000 November ___, 2013 FOR VALUE RECEIVED, FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and politic of the State of Colorado (“Borrower”), promises to pay to the order of THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (“Lender”), at its office at 300 LaPorte Avenue, Fort Collins, Colorado 80524, in lawful money of the United States of America the principal amount of Five Million Dollars ($5,000,000) (the “Loan Amount”). This Promissory Note is issued pursuant to the Loan Agreement between the City of Fort Collins and The Fort Collins Urban Renewal Authority For Reimbursements for the Capstone Redevelopment Corporation Infill Development (Summit on College Project), which Loan Agreement is dated November___, 2013 (the “Agreement”). Capitalized terms used herein but not defined herein have the meanings given such terms in the Agreement. The obligations of Borrower evidenced by this Promissory Note are payable in accordance with the terms and conditions of the Agreement. The rate of interest on the Loan Amount is a fixed rate equal to 2.68% per annum (“Interest Rate”). As additional consideration for the Loan, Section 5 of the Agreement requires that the Borrower make an additional payment to the City each year of this Agreement until the Loan has been fully repaid, no later than December 31 st , in an amount equal to 50 percent of the total property tax increment revenues received by the Borrower from the Prospect South Tax Increment District in that year, after subtraction of all amounts the Borrower is or has become legally obligated to pay from that year’s revenues. The total of payments made by Borrower to the City under this Section 4 shall not exceed One Million Seven Hundred and Eighty Thousand Dollars ($1,780,000). All unpaid Principal and accrued interest, and any additional amount due pursuant to Section 4 of the Agreement, will be due and payable on the maturity date. The annual interest rate of this Promissory Note is computed on a 360 day year basis, multiplied by the actual number of days elapsed. This Promissory Note shall mature on December 31, 2037. At such time all unpaid principal, interest, default interest, fees and charges, and any additional amount due and owing under this Note shall be deemed payable in full. Unless otherwise agreed or required by applicable law, payments will apply to interest first, then to principal. If there is unpaid interest at the end of any calendar year, the shortfall will be added to the outstanding balance, resulting in the compounding of interest. Borrower, in its sole discretion, may prepay all or any portion of the payments due under this Agreement at any time and that prepayment will be without any prepayment penalty. If a prepayment is made, the funds will go first toward any interest which has accrued and the balance then applied to the reduction of principal. Borrower shall continue to be obligated to 326 of 402 - 2 - make additional payments pursuant to Section 4 of the Agreement in the event of prepayment of scheduled debt service required in Section 3 of the Agreement, until Borrower has paid the amount of the shortfall in interest considering the interest paid compared to interest accrued at the rate of ___ percent per annum (sometimes referred to as “Policy Interest”) as of the payment date, as described in Section 5 of the Agreement. If Lender refers this Note to an attorney for collection or seeks legal advice following a default beyond all cure periods alleged under this Note, or the Lender is the prevailing party in any action instituted on this Note, or if any other judicial or non-judicial action, suit or proceeding is instituted by Lender or any future holder of this Note, and an attorney is employed by Lender to appear in any such action or proceeding, or to reclaim, seek relief from a judicial or statutory stay, sequester, protect, preserve or enforce Lender’s interest in this Note, the Agreement or any other security for this Note (including, but not limited to, proceedings under federal bankruptcy law or in connection with any state or federal tax lien), then Borrower promises to pay reasonable attorneys’ fees and reasonable costs and expenses incurred by Lender and/or its attorney in connection with the above-mentioned events. If not paid within ten (10) days after such fees become due and written demand for payment is made, such amount shall be due on demand or may be added to the principal, at the Lender’s discretion. Should any payment or installment hereunder be not paid when the same becomes due and payable, Borrower recognizes that the Lender will incur extra expenses for both the administrative cost of handling delinquent payments and the cost of funds incurred by Lender after such due date as a result of not having received such payment when due. Therefore, Borrower shall, in such event, without further notice, and without prejudice to the right of Lender to collect any other amounts provided to be paid herein, including default interest or to declare a default hereunder, pay to Lender to cover such expenses incurred as a result of any installment payment due being not received within ten (10) days of its due date, a “late charge” of five percent (5%) of the amount of such delinquent payment. Except as otherwise provided herein, the Borrower waives presentment and demand for payment, notice of acceleration or of maturity, protest and notice of protest and nonpayment, bringing of suit and diligence in taking any action to collect sums owing hereunder and agrees that its liability on this Note shall not be affected by any release or change in any security for the payment of this Note or release of anyone liable hereunder. No extension of time for the payment of this Note, or any installment or other modification of the terms made by the Lender with any person now or hereafter liable for the payment of this Note, shall affect the original liability under this Note of the Borrower, even provided the Borrower is a party to such agreement. In no event whatsoever shall the amount paid, or agreed to be paid, to the holder of this Note for the use, forbearance or retention of the money to be advanced hereunder (“Interest”) exceed the maximum amount permissible under applicable law. If the performance or fulfillment of any provision hereof or of the Agreement or any other document between Borrower and the Lender of this Note shall result in Interest exceeding the limit for interest prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any circumstance whatsoever, the Lender of this Note should receive as Interest, an amount which would exceed the highest lawful rate, the amount which would be excessive Interest shall be 327 of 402 - 3 - applied to the reduction of the principal balance owing (or, at the option of the Lender, be paid over to Borrower) and not to the payment of Interest. If any provision hereof or any provision of the Agreement shall, for any reason and to any extent, be invalid or unenforceable, then the remainder of the document or instrument in which such provision is contained shall not be affected thereby but instead shall be enforceable to the maximum extent permitted by law. Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any rights they may have to a trial by jury in respect of any litigation based hereon or arising out of, under or in connection with this note or any course of conduct, course of dealing, statements (whether oral or written) or actions of the other party. This Promissory Note shall be construed in accordance with the laws of the State of Colorado. IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note as of the day and year first above written. BORROWER: FORT COLLINS URBAN RENEWAL AUTHORITY, a public body corporate and politic of the State of Colorado. By: Darin Atteberry, Executive Director Dated: ______________________________ 328 of 402 EXHIBIT C Urban Renewal Authority Propect South TIF District - The Summit project Loan from City General Fund to URA Revenue Sharing - Ongoing Tracking Year of Loan Date Agreed Interest Policy Interest Difference Owed 50% Revenue shared Unpaid Rev Share Balance 0 6-Nov-13 - 0.17 31-Dec-13 - - - - 1.17 31-Dec-14 134,000.00 289,416.00 155,416.00 155,416.00 2.17 31-Dec-15 136,029.63 248,000.00 111,970.37 267,386.37 3.17 31-Dec-16 132,467.47 241,984.13 109,516.66 376,903.03 4.17 31-Dec-17 128,665.68 235,669.87 107,004.19 483,907.22 5.17 31-Dec-18 124,762.01 229,042.42 104,280.41 588,187.63 6.17 31-Dec-19 120,606.69 222,086.25 101,479.56 689,667.19 7.17 31-Dec-20 116,340.00 214,785.05 98,445.05 788,112.24 8.17 31-Dec-21 111,808.98 207,121.72 95,312.74 883,424.98 9.17 31-Dec-22 107,156.54 199,078.28 91,921.74 975,346.72 10.17 31-Dec-23 102,226.43 190,635.89 88,409.46 1,063,756.18 11.17 31-Dec-24 97,164.19 181,774.76 84,610.57 1,148,366.75 12.17 31-Dec-25 91,810.25 172,474.11 80,663.86 1,229,030.61 13.17 31-Dec-26 86,312.82 162,712.16 76,399.34 1,305,429.95 14.17 31-Dec-27 80,508.90 152,466.01 71,957.11 1,377,387.06 15.17 31-Dec-28 74,549.44 141,711.65 67,162.21 1,444,549.27 16.17 31-Dec-29 68,267.92 130,423.87 62,155.95 1,506,705.22 17.17 31-Dec-30 61,818.05 118,576.22 56,758.17 1,563,463.39 18.17 31-Dec-31 55,029.74 106,140.93 51,111.19 1,614,574.58 19.17 31-Dec-32 48,059.51 93,088.85 45,029.34 1,659,603.92 20.17 31-Dec-33 40,733.57 79,389.38 38,655.81 1,698,259.73 21.17 31-Dec-34 33,211.29 65,010.42 31,799.13 1,730,058.86 22.17 31-Dec-35 25,315.14 49,918.26 24,603.12 1,754,661.98 23.17 31-Dec-36 17,207.37 34,077.53 16,870.16 1,771,532.14 24.17 31-Dec-37 8,706.59 17,451.11 8,744.52 1,780,276.66 2,002,758.21 3,783,034.87 1,780,276.66 - 329 of 402 u r b a n r e n e w a l a u t h o r i t y Karen Weitkunat, Chairperson City Council Chambers Gerry Horak, Vice-Chairperson City Hall West Bob Overbeck 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Gino Campana Wade Troxell Ross Cunniff Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, Executive Director Steve Roy, City Attorney Wanda Nelson, Secretary 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. Please call 221-6515 (TDD 224-6001) for assistance. URBAN RENEWAL AUTHORITY BOARD OF COMMISSIONERS MEETING October 15, 2013 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Agenda Review: • Executive Director’s Review of Agenda. 4. Citizen Participation Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Board on items not specifically scheduled on the agenda must first be recognized by the Chairperson or Vice Chair. 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 Chairperson 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 Secretary 330 of 402 5. Citizen Participation Follow-up This is an opportunity for the Chairperson and Commissioners to follow-up on issues raised during Citizen Participation. 6. Staff Reports. 7. Commissioner Reports. DISCUSSION ITEMS The method of debate for discussion items is as follows: ! Chairperson introduces the item number and subject; asks if formal presentation will be made by staff ! Staff and/or Applicant presentation (optional) ! Chairperson requests citizen comment on the item (five-minute limit for each citizen) ! Board questions of staff on the item ! Board motion on the item ! Board discussion ! Final Board comments ! Board vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Chairperson, 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. 8. Consideration and Approval of the Minutes of the September 17, 2013 Urban Renewal Authority Board Meeting. 9. Resolution No. 062 Adopting the 2014 Budget for the Fort Collins Urban Renewal Authority. (staff: Tom Leeson; 5 minute staff presentation; 10 minute discussion) The purpose of this item is to adopt the 2014 budget for the North College Tax Increment Financing District and the Prospect South Tax Increment Financing District. Budget revenues include property tax increment and interest earned on investments, totaling $1,560,295. Budget expenses include general operations, the new North College Storefront Improvement Program, and debt service payments, totaling $2,191,746 10. Resolution No. 063 Adopting Updated Policies for the Urban Renewal Authority. (staff: Tom Leeson; 10 minute staff presentation; 30 minute discussion) The purpose of this item is to amend the adopted 2012 URA Policies and Procedures. The Resolution requires participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for new buildings and major renovations. Additionally, the Resolution also requires URA funded projects to recycle materials such as doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard. The Resolution also delegates the authority to approve Administrative Procedures with the Executive Director. 11. Other Business. 12. Adjournment. 331 of 402 Agenda Item 8 Item #8 Page 1 AGENDA ITEM SUMMARY October 15, 2013 Urban Renewal Authority Board STAFF Wanda Nelson, City Clerk SUBJECT Consideration and approval of the Minutes of the September 17, 2013 Urban Renewal Board Meeting. 332 of 402 September 17, 2013 Urban Renewal Authority A meeting of the Fort Collins Urban Renewal Authority was held on Tuesday, September 17, 2013, at 6:00 p.m., in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Boardmembers: Overbeck, Poppaw, Troxell, and Weitkunat. (Secretary’s note: Boardmember Cunniff arrived at 6:11 p.m.) Boardmembers Absent: Campana, Horak Staff Members Present: Atteberry, Nelson, Roy. Agenda Review Executive Director Atteberry stated there were no changes to the published agenda. Citizen Participation Eric Sutherland, 3520 Golden Currant, stated he has submitted a complaint to the Division of Property Taxation alleging a violation by the Larimer County Assessor regarding the Downtown Development Authority. Consideration and Approval of the June 18 and July 2, 2013 Urban Renewal Authority minutes, Adopted Boardmember Poppaw made a motion, seconded by Boardmember Troxell, to approve the minutes of the June 18 and July 2, 2013 Urban Renewal Authority meetings. Yeas: Poppaw, Troxell, Weitkunat and Overbeck. Nays: none. THE MOTION CARRIED. Resolution No. 061 Approving a Redevelopment Agreement Between the Fort Collins Urban Renewal Authority and Prospect Station, LLC, for the Prospect Station Project and a Related Loan from the City of Fort Collins, Adopted The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The purpose of this item is for the Urban Renewal Authority (URA) Board to consider approval of a Redevelopment Agreement between the URA and Prospect Station, LLC. 333 of 402 September 17, 2013 241 Prospect Station will be a new mixed-use development proposed within the Prospect South Tax Increment Financing (TIF) District. This project will remediate blight by conducting environmental mitigation, upgrading infrastructure, and enhancing public amenities. The Redevelopment Agreement would authorize a $494,000 tax increment reimbursement obligation to Prospect Station LLC (Developer) for eligible project costs. Half of the reimbursement would be provided to the Developer upon completion of the project and verification of costs, and the remaining half would be dispersed in annual payments over the remaining life of the TIF District. BACKGROUND / DISCUSSION In September 2011, City Council approved the creation of the Midtown Urban Renewal Plan Area and Prospect South Tax Increment Financing (TIF) District, beginning the 25-year timeframe within which the Fort Collins Urban Renewal Authority (URA) collects tax increment from within the District. Per Colorado Revised Statutes § 31-25-101 et seq. (Urban Renewal Law), the URA then has the ability to provide financial assistance to projects that remediate blight. Prospect Station LLC (Developer) submitted a formal application to the URA in June 2013 requesting TIF for a new project. URA staff has since negotiated a Redevelopment Agreement, which is now ready for formal consideration by the URA Board. The details of the project and financial assistance structure are summarized below; additional detail can be found in the attached URA Application and Redevelopment Agreement. Project Description Prospect Station will be a new, three-story mixed-use development located at 221 West Prospect Road (south side of Prospect Road to the west of the MAX guideway and Mason Trail). There will be 32 residential rental units, offering a combination of studio, one-, two-, and three-bedrooms, for a total of 49 bedrooms. A total of 48 parking spaces will be provided; 37 on-site and 11 off-site. The commercial portion will be 1,040 square feet and include two ground-floor, live-work units that allow residents to operate a home-based business (the site plan is included as Exhibit A of the Redevelopment Agreement). The site is the former location of a gas station and is considered to be a brownfield, meaning there are hazardous environmental contaminants that require remediation. It has been vacant and underutilized since, and was acquired by the Developer in 2006. The Project Development Plan (PDP) was approved by the City in summer 2013. Construction is anticipated to begin by October 2013, and completed no later than fall 2014. Tax Increment Based on an estimate of value provided by Larimer County (see Exhibit C of the Redevelopment Agreement), Prospect Station, once complete, is expected to generate $39,156 per year of tax increment revenue. Based on a conservative projection that assumes no appreciation, the project will generate a total of $865,340 over the remaining 23-year life of the Prospect South TIF District. 334 of 402 September 17, 2013 242 Eligible Costs The total project cost is $5,980,924, which includes land acquisition and construction of the project. Of this total, the Developer originally requested $772,879 in TIF assistance; however, that amount was negotiated to $494,000 for various improvements, which have been verified to be eligible costs according to Urban Renewal Law and are listed in Table 1. One aspect to bring to the Board’s attention is the fact that the Developer has already incurred costs associated with the line item “extend and upgrade water and sewer line”. Pursuant to URA policy, TIF may be used to retroactively reimburse costs incurred prior to approval of the Redevelopment Agreement, provided such costs are hard costs associated with public improvements. In this case, the segment of Prospect Road in front of the project site was planned to be closed for several weeks this summer due to construction. Knowing that the extension and upgrade of the water and sewer line for this project would require closure of Prospect Road, the Developer coordinated the timing of that improvement with the planned construction in order to avoid a second closure of Prospect Road later this year. Staff recommends such costs remain eligible for reimbursement and are thus included in the Redevelopment Agreement; this decision, however, is ultimately the URA Board’s. Table 1: Eligible Costs Description Amount Environmental Mitigation Installation of underground environmental vapor barrier $15,000 Materials testing $8,750 Deconstruction of existing structure and improvements, and Phase 1 environmental report $32,000 Removal of soil at old tank locations, replaced with new structural fill $62,000 Infrastructure Upgrades Upgrade stormwater system $72,124 Modify and enhance the Prospect Road Transfort bus pullout $63,472 Extend and upgrade water and sewer line¹ $93,778 Public Amenities Enhanced public plaza adjacent to transportation corridor including seating, lighting, dog waste station, bike fix-it station, and enhanced landscaping $137,500 Facade Enhancements Enhancements to facade to address four-sided architecture $9,376 Total TIF Requested $494,000 ¹ These costs have already been incurred by the Developer. The URA does not typically reimburse for costs incurred prior to the Redevelopment Agreement, but exceptions are allowed for hard costs related to public improvements, subject to URA Board approval. Blight Remediation/Public Benefit Urban Renewal Law identifies eleven factors of blight; this project will remediate several that were identified within the Prospect South TIF District, including: 335 of 402 September 17, 2013 243 • Slum, deteriorating, or deteriorating structures • Deterioration of site or other improvements • Environmental contamination of buildings or property Additionally, Prospect Station supports a number of City Plan policies, including: • EH 4.1 Prioritize Targeted Redevelopment and Infill • ENV 17.2 Manage Hazardous Materials and Waste • LIV 5.2 Target Public Investment Along the Community Spine • LIV 35.2 Mix of Uses • LIV 43.3 Support Transit-Supportive Development Patterns • T 9.2 Pedestrian, Bicycle and Transit Interface and Access Redevelopment Agreement Based on an evaluation of eligible costs and blight remediation, URA staff supports the project and has negotiated a Redevelopment Agreement with the Developer. This Agreement is unique in that it blends reimbursement methodologies, but is believed to result in a compromise that provides benefit to the project while mitigating risk to the URA. The Agreement would create a reimbursement obligation from the URA to the Developer for up to $494,000 of tax increment. This amount would be used for approved, eligible costs that will ultimately be verified based on invoices for actual work completed. The reimbursement is structured so that half, or $247,000, would be reimbursed to the Developer in a lump sum upon completion of the project. The remaining $247,000 would be dispersed to the Developer through annual payments of $11,762 until 2036. The reimbursement obligation represents approximately 60% of the total tax increment that will be generated by the project. The URA will not have sufficient fund balance to pay the $247,000 lump sum to the Developer, and has thus requested a loan from the City of Fort Collins. The Loan Agreement will be considered separately from the Redevelopment Agreement; it is based on current City policy in terms of interest rate, which is anticipated to cost the URA approximately $166,515 (note this is an estimate based on what the rate would be today, which may change once it is time to execute the loan). Combined, the reimbursement obligation and financing cost to the URA represents $660,515 or 80% of the total increment generated by the project. FINANCIAL / ECONOMIC IMPACTS If approved, this Resolution creates a URA reimbursement obligation of up to $494,000 of tax increment to the Developer, which represents 57% of the total estimated increment generated by the project. Due to the reimbursement structure, the URA will seek a loan for half of the reimbursement obligation from the City once the project is complete; the remaining obligation will be paid to the Developer from annual increment revenue generated by the project. The total cost to the URA when financing costs are considered is estimated to be $669,284, or 77% of the total estimated increment. 336 of 402 September 17, 2013 244 ENVIRONMENTAL IMPACTS Since the site was formally a gas station, there are environmental hazards associated with such a use that must be mitigated prior to it redeveloping. The Developer has already invested in some of the steps necessary to mitigate such hazards, and will finish the process to clean up the site as part of this project.” Tom Leeson, Redevelopment Program Manager, stated this Resolution would adopt a redevelopment agreement between Prospect Station, LLC and the Fort Collins Urban Renewal Authority. Leeson described the proposed 3-story mixed-use project. He noted the site is a brown field site and stated significant environmental mediation has occurred. Leeson discussed the tax increment financing and reimbursement details. Eric Sutherland, 3520 Golden Currant, questioned the existence of the urban renewal law statute and stated the estimated revenues of the project are necessary in order determine whether or not the tax increment financing is appropriate. Mel Hilgenberg, 172 North College, opposed any financial support for infrastructure needs of the proposed on-campus stadium at CSU. Connie Dohn, Prospect Station, LLC, discussed the history of the property and stated the financial assistance from the URA is necessary for the project to occur. Boardmember Overbeck asked what the budget for deconstruction will fund. Leeson replied the deconstruction budget is part of the demolition cost and the intent is to recycle 100% of concrete, asphalt, metals, and wood, dependent upon contamination. Boardmember Overbeck asked if the demolition and recycling would be itemized. Leeson replied documentation and receipts will be required for all eligible costs prior to reimbursement. He noted the current City Code does not require recycling of those materials in deconstruction. Boardmember Cunniff asked why the item is listed as deconstruction when it is not specifically that. Leeson replied the term could be changed to demolition and recycling rather than deconstruction. Boardmember Cunniff asked if there is an assessment of the “if not, but for” criteria. Leeson replied there is a pro forma in the application regarding the project’s expected returns with and without the assistance. Additionally, the URA did a financial analysis and both indicated the assistance is required to keep the project from having negative returns. Boardmember Cunniff suggested making the first year’s award be contingent upon following through and adhering to the proposed plan. Leeson suggested asking the question of the applicant. 337 of 402 September 17, 2013 245 Doug Dohn, Prospect Station, LLC, replied the intent is to recycle all of the asphalt and concrete on the site. Should the engineering firm find contamination, materials will be dealt with as necessary to meet EPA regulations. Boardmember Cunniff asked if the applicant would be amenable to a clause requiring recycling of 100% of the recyclable materials. Mr. Dohn replied in the affirmative and stated that is the practice of his company. Mayor Weitkunat requested a detailed description of the blight and mitigation thereof in the area. Leeson replied the site is considered a brown field and has environmental contamination issues which qualify as blight. Additionally, the aging building and infrastructure also contribute to the blight classification. Boardmember Troxell asked if the gas tanks are still in the ground. Leeson replied in the negative. Boardmember Troxell asked if the annual payment amount of $247,000 is a future or present value amount. Leeson replied it is $247,000 paid over 21 years. The total reimbursement amount will be $494,000 in present value dollars. Boardmember Troxell stated the right types of projects should be incentivized; therefore, he will support this item. Boardmember Overbeck made a motion, seconded by Boardmember Poppaw, to adopt Resolution No. 061. Boardmember Cunniff requested a friendly amendment to the motion to require the Executive Director to execute a modified agreement that includes a performance assessment of the deconstruction aspect of this project prior to the first payment of the tax increment funding. Boardmembers Overbeck and Poppaw accepted the amendment. The vote on the motion was as follows: Yeas: Troxell, Weitkunat, Overbeck, Cunniff and Poppaw. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 6:43 p.m. _________________________________ Chair ATTEST: _____________________________ Secretary 338 of 402 Agenda Item 9 Item #9 Page 1 AGENDA ITEM SUMMARY October 15, 2013 Urban Renewal Authority STAFF Tom Leeson, Redevelopment Program Manager SUBJECT Resolution No. 062 Adopting the 2014 Budget for the Fort Collins Urban Renewal Authority. EXECUTIVE SUMMARY The purpose of this item is to adopt the 2014 budget for the North College Tax Increment Financing District and the Prospect South Tax Increment Financing District. Budget revenues include property tax increment and interest earned on investments, totaling $1,560,295. Budget expenses include general operations, the new North College Storefront Improvement Program, and debt service payments, totaling $2,191,746 STAFF RECOMMENDATION Staff recommends adoption of the Resolution BACKGROUND / DISCUSSION This Resolution adopts the 2014 budget for the Fort Collins Urban Renewal Authority (URA). Revenue for the URA is generated from property tax increment collections, as well as interest earned on investments. Tax increment is determined by the County Assessor’s Office; although the URA will not receive the final 2013 tax warrant until January 2014, the 2013 August Certification is used to inform budget preparations. Tax increment sources include the North College Plan Area and the Prospect South Plan Area tax increment financing (TIF) Districts. North College TIF District The total tax increment revenue for the North College Plan Area in 2014 is projected to be $1,137,337. Additional revenue is collected from interest earned on investments, which totals $92,670. Combined, the 2013 total estimated revenue for the URA is $1,230,006. This is slightly below the approved budget in the 2013/2014 BFO budget for the URA due to a decrease in the total assessed value of the North College district. URA expenses are a combination of operating costs and debt service payments. The operations line item includes cost for personnel and on-call consulting services. Operating expenses for the North College TIF District for 2014 include the following: Operations $ 213,312 North College Storefront Improvement Program $ 50,000 Total $ 263,312 The North College TIF District’s annual debt service payments (principal and interest) are from the following outstanding loans: 339 of 402 Agenda Item 9 Item #9 Page 2 North College URA 2013 Bond Payment $ 947,663 Rocky Mountain Innosphere $ 662,992 Total $1,610,655 This is slightly above the approved budget in the 2013/2014 BFO budget for the URA due to a an increase in the debt service payments as a result of the North College TIF District refinancing and associated bond placement. It should be noted, that the expenses exceed the revenues by $584,462; this was anticipated and is a result of the first year of debt service payment for the Rocky Mountain Innosphere project. The first year’s payment includes $530,392 of capitalized interest for the last four years. The difference between expenses and revenues is being covered by the approximately $1.6M in the 2013 North College fund balance. The Resolution appropriates the operating and debt service budget for the North College TIF District, which totals $1,873,967 for 2014. Prospect South TIF District The 2013/2014 BFO did not include any budget for the Prospect South District, as the revenues and expenses were unknown at the time. The total tax increment revenue for the Prospect South Plan Area in 2014 is projected to be $83,289. Additional revenue is collected from a City loan in the amount of $247,000 for the Prospect Station project. Combined, the 2013 total estimated revenue for the Prospect South TIF District is $330,289. There are currently no operating expenses associated with the Prospect South TIF District. The Prospect South TIF District’s annual debt service payments (principal and interest) are from the following outstanding loans: Prospect South URA • Capstone $ 58,268 • Prospect Station $247,000 • Revenue Sharing with City (Capstone) $ 12,511 Total $317,779 2013/2014 BFO 2014 Budget Difference Revenues $ 1,310,383 $ 1,289,505 $ (20,878) Operating Expenses $ 263,312 $ 263,312 $ - Debt Service $ 1,538,636 $ 1,610,655 $ 72,019 $ 1,801,948 $ 1,873,967 $ 72,019 North College District Comparison of 2013/2014 BFO Budget with Current 2014 Budget 2013/2014 BFO 2014 Budget Difference Revenues $ - $ 330,289 $ 330,289 Operating Expenses $ - $ - $ - Debt Service $ - $ 317,779 $ 317,779 Prospect South District Comparison of 2013/2014 BFO Budget with Current 2014 Budget 340 of 402 Agenda Item 9 Item #9 Page 3 The Resolution appropriates the operating and debt service budget for the Prospect South TIF District, which totals $317,779 for 2014. FINANCIAL / ECONOMIC IMPACT This Resolution includes the annual operating appropriation for 2014 at $2,191,746 for the North College and Prospect South tax increment financing Districts. Any specific appropriations related to URA participation in projects will be presented to the URA Board separately so that the URA funding is approved on a project by project basis. ATTACHMENTS 1. Powerpoint presentation 341 of 402 1 Urban Renewal Authority (URA) 2014 Budget URA Board October 15, 2013 342 of 402 2 Tonight’s Action • Resolution to adopt the 2014 budget for the North College Tax Increment Financing District and the Prospect South Tax Increment Financing District. 343 of 402 3 2013 Highlights Loan Agreements: • Capstone – $5,000,000 Redevelopment Agreements: • Aspen Heights • Foothills Mall (Pending) • Prospect Station (Pending) North College Refinancing of Debt • $11M Bond Placement 344 of 402 4 North College District 2014 Budget Revenues $1,230,006 • Property Tax Increment Collection • Interest Earned on Investments Expenses Operations $263,312 • Storefront Improvement Program Debt Service $1,610,655 Total $1,873,967* *Difference to be covered by 2013 fund balance 345 of 402 5 North College Debt Service 2014 Bond Payment $947,663 Rocky Mountain Innosphere $662,992* Total $1,610,655 *Includes 4 years of capitalized interest ($530,392) 346 of 402 6 North College 2013/2014 BFO 2013/2014 BFO 2014 Budget Difference Revenues $ 1,310,383 $ 1,289,505 $ (20,878) Operating Expenses $ 263,312 $ 263,312 $ - Debt Service $ 1,538,636 $ 1,610,655 $ 72,019 $ 1,801,948 $ 1,873,967 $ 72,019 North College District Comparison of 2013/2014 BFO Budget with Current 2014 Budget 347 of 402 7 North College 2014 Budget The Resolution would appropriate the operating and debt service budget for the North College District, which totals $1,873,967 for 2014. 348 of 402 8 Prospect South District 2014 Budget Revenues $330,289 • Property Tax Increment Collection • City Loan (Prospect Station) Expenses Operations $0 Debt Service $317,779 Total $317,779 349 of 402 9 Prospect South Debt Service Capstone $58,268 Prospect Station $247,000 Revenue Sharing with City (Capstone) $12,511 Total $317,779 350 of 402 10 Prospect South 2013/2014 BFO 2013/2014 BFO 2014 Budget Difference Revenues $ - $ 330,289 $ 330,289 Operating Expenses $ - $ - $ - Debt Service $ - $ 317,779 $ 317,779 Prospect South District Comparison of 2013/2014 BFO Budget with Current 2014 Budget 351 of 402 11 Prospect South 2014 Budget The Resolution would appropriate the operating and debt service budget for the Prospect South District, which totals $317,779 for 2014. 352 of 402 12 Staff Recommendation • Adoption of the Resolution 353 of 402 - 1 - RESOLUTION NO. 062 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY ADOPTING A 2014 BUDGET FOR THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, on June 6, 1978, the City Council adopted Resolution 1978-049, adopting findings and establishing the Fort Collins Urban Renewal Authority (the “Authority”) as an urban renewal authority pursuant to Colorado Revised Statutes, Part 1 of Title 31, Article 25, as amended (the “Act”); and WHEREAS, the Authority operates to eliminate blight and prevent the spread of blight within the urban renewal area in accordance with the Urban Renewal Law of Colorado, Section 31-25-101; and WHEREAS, the Authority has considered a proposed budget for fiscal year 2014 and wishes to adopt the 2014 URA budget as described herein. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows: Section 1. That the budget shown on Exhibit “A,” attached hereto and incorporated herein by this reference, is hereby approved and the amounts stated therein are appropriated for fiscal year 2014. Section 2. That the City of Fort Collins’ Financial Officer is directed to file a certified copy of the attached budget with the office of the Division of Local Government, Department of Local Affairs, State of Colorado. Passed and adopted at a regular meeting of the Board of Commissioners of the Fort Collins Urban Renewal Authority this 15th day of October, A.D. 2013. _________________________________ Chairperson ATTEST: _____________________________ Secretary 354 of 402 North College Urban Renewal Plan Area Estimated Revenue: Tax Increment Collections $ 1,137,337 Interest on Investments $ 12,005 Interest from Rocky Moountain Innosphere Loan $ 80,664 Total estimated Revenue for the URA $ 1,230,006 Expenses: Operations $ 213,312 Project Storefront $ 50,000 Total Operational Costs $ 263,312 Annual Debt Service Payments 2013 Bond Payment $ 947,663 Rocky Mountain Innosphere $ 662,992 Total Debt Service Payments $ 1,610,655 Fund 800 2014 Budget $ 1,873,967 URBAN RENEWAL AUTHORITY 2014 BUDGET NORTH COLLEGE DISTRICT EXHIBIT A 355 of 11 402 Midtown Urban Renewal Plan Area (Prospect South TIF District) Estimated Revenue: Tax Increment Collections $ 83,289 Loan from City (Prospect Station) $ 247,000 Interest on Investments $ - Total estimated Revenue for the URA $ 330,289 Expenses: Operations $ - Project Storefront $ - Total Operational Costs $ - Annual Debt Service Payments Capstone $ 58,268 Prospect Station $ 247,000 Revenue Sharing with City (Capstone) $ 12,511 Total Debt Service Payments $ 317,779 Fund 801 2014 Budget $ 317,779 URBAN RENEWAL AUTHORITY PROSPECT SOUTH DISTRICT 2014 BUDGET 356 of 2 402 2013/2014 BFO 2014 Budget Difference Revenues $ 1,310,383 $ 1,289,505 $ (20,878) Operating Expenses $ 263,312 $ 263,312 $ - Debt Service $ 1,538,636 $ 1,610,655 $ 72,019 $ 1,801,948 $ 1,873,967 $ 72,019 2013/2014 BFO 2014 Budget Difference Revenues $ - $ 330,289 $ 330,289 Operating Expenses $ - $ - $ - Debt Service $ - $ 317,779 $ 317,779 North College District Comparison of 2013/2014 BFO Budget with Current 2014 Budget Prospect South District Comparison of 2013/2014 BFO Budget with Current 2014 Budget 357 of 3 402 Agenda Item 10 Item #10 Page 1 AGENDA ITEM SUMMARY October 15, 2013 Urban Renewal Authority STAFF Tom Leeson, Redevelopment Program Manager SUBJECT Resolution No. 063 Of The Board of Commissioners of the Fort Collins Urban Renewal Authority Adopting Updated Policies for the Urban Renewal Authority. EXECUTIVE SUMMARY The purpose of this item is to amend the adopted 2012 Urban Renewal Authority (URA) Policies and Procedures. The Resolution requires participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for new buildings and major renovations. Additionally, the Resolution also requires URA funded projects to recycle materials such as doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard. The Resolution also delegates the authority to approve Administrative Procedures with the Executive Director. STAFF RECOMMENDATION Staff recommends adoption of the Resolution to approve the proposed 2013 URA Policies BACKGROUND / DISCUSSION Energy Efficiency Requirements As a follow-up to the July 30 URA Board Work Session, This Resolution attempts to strike a balance between requiring and incentivizing building energy efficiencies in new URA funded projects. During the July 30 Work Session, the URA Policy working group’s recommendation of removing the “punitive” nature of the policy (i.e., withholding TIF funds if standards are not achieved) was discussed. Some Board members felt that withholding the funds was not a punitive measure, but rather, the withheld funds are meant to be an incentive to develop the type of project the community desires. This Resolution requires participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for URA funded projects that include new buildings and major renovations (more than 50% of square footage affected). The Target Finder is an online tool that enables architects and building owners to set energy targets and receive an EPA energy performance score for projects during the design process (See Attachment 3 for program details). EPA’s Energy Star energy performance scale assigns a score between 1 and 100 for the corresponding energy use intensity for the specified project. Projects that earn a score of 75 or higher are eligible for Designed to Earn the Energy Star certification. A score of 75 means the building performs 35 percent better than typical, comparable buildings and represents the top 25 percent of existing buildings. The second step in the EPA’s Energy Star program is earning the Energy Star Label, which requires an owner to monitor the energy use for 12 consecutive months after completion to demonstrate the operating building earns an EPA rating of 75 or higher. Closing the loop between the design's intended energy use and the building's actual performance requires the commitment of the owner after the project is built and in operation. The URA Policy Working Group discussed this step at length and struggled with this being a requirement and subject to the withholding of public assistance. The concern was two-fold: in most cases the property owners/developers lease tenant spaces, and don’t have control over energy use, so the 358 of 402 Agenda Item 10 Item #10 Page 2 prospect of having funding withheld at the end of 12-months was a significant concern; and secondly, the potential of having funding withheld if the building does not meet the Energy Star rating significantly complicates project financing and makes a relatively uncertain process even more uncertain. In an effort to address the perceived punitive nature of withholding public assistance, the Resolution includes a monetary incentive to achieve the Energy Star Label equal to 1% of the original Tax Increment Financing assistance. A property owner that monitors the energy use with the intention of earning the Energy Star Label but fails to do so within the 12-month time period, will be permitted to consult with City Utilities to identify deficiencies and rectify. It is recommended that URA projects that do not include new construction or major renovations (more than 50% of square footage affected) meet the current energy code, except for the building envelope requirements, which could be cost prohibitive. It is also recommended that energy use be monitored through the Energy Star program. The current code requires energy assessments prior to building alterations with valuations of $30,000 or more, and requiring energy performance to be monitored will go a long way in bringing awareness of energy use and efficiencies to building owners. Based on the discussion above, staff is recommending the following URA Policy: New Construction: All URA projects that include new construction or major renovations of existing buildings (more than 50% of square footage affected) shall be required to participate in the EPA’s Energy Star program and Target Finder system. Projects shall be required to earn a score of 75 or higher to be eligible for Designed to Earn the Energy Star certification. Once buildings are completed, if the property monitors energy use for 12 consecutive months to demonstrate the operating building earns an EPA rating of 75 or higher in the EPA’s Portfolio Manager and verification is received by a professional engineer or registered architect that the building meets indoor environmental standards and qualifies to earn the Energy Star label, the URA project is eligible for additional assistance in the amount of 1% of the original Tax Increment Financing assistance. A property owner that monitors the energy use with the intention of earning the Energy Star Label but fails to do so within the 12-month time period, will be permitted to consult with City Utilities to identify deficiencies and rectify Minor Renovations: All URA projects that include renovations that affect less than 50% of existing square footage shall be required to meet the current energy code, except for the building envelope requirements, and energy use shall be monitored through the Energy Star program for 12-consecutive months in an effort to raise energy use awareness. Deconstruction/Construction Waste Recycling Requirements The City of Fort Collins is currently undergoing a process of adopting the 2012 International Codes (the City is currently following the 2009 International Codes). The 2012 I-Codes will include a revised provision addressing construction waste management, as well as a new provision related to the deconstruction of buildings. The Resolution proposes the same language that will be in the proposed 2012 I-Code adoption. Staff is recommending the following: New Construction and/or Renovations: For URA funded projects with new buildings, and additions over 5,000 square feet or remodels over 5,000 square feet a construction waste management plan acceptable to the Building Official that includes recycling of concrete and masonry, wood, metals, and cardboard, is required at time of application for a building permit. The construction waste management plan shall be implemented and conspicuously posted on the construction site. Compliance shall be certified by the hauler through receipts and signed affidavits. Substantive changes to the plan shall be subject to prior approval by the Building Official. 359 of 402 Agenda Item 10 Item #10 Page 3 Demolitions: For URA funded projects, buildings or portions of buildings which are removed shall be processed in such a way as to safely remove all asbestos and lead paint contaminants in accordance with the State of Colorado and Environmental Protection Association (EPA) rules and regulations regarding such materials. All remaining materials such as doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard shall be recycled. Compliance shall be certified by the hauler through receipts and signed affidavits. Approval Process of Administrative Procedures The URA Administrative Procedures, which were most recently revised in October, 2012, have historically been approved by a URA Board Resolution. The Administrative Procedures were adopted as part of the Policies and Procedures, yet they serve a very different purpose. The Administrative Procedures are intended to provide both minimum procedural requirements for URA applicants and an operating framework for staff to implement the Policy and Procedures established by the URA Board. In an effort to allow staff the ability and flexibility to respond quickly to issues that arise when implementing the URA Policies, it is recommended that the Board delegate the authority to approve Administrative Procedures to the Executive Director. Any revisions to the Administrative Procedures will be presented to the URA Board. ENVIRONMENTAL IMPACTS Ultimately, the benefit will be positive to the environment as each project will increase the level of quality and sustainability of all publicly funded URA projects. Benefits will include reduced energy use, increased diversion from the landfill and subsequently a lower carbon impact. PUBLIC OUTREACH The following outreach efforts have been made: URA Board Work Sessions - February 28 and July 30 Presentation to Fort Collins Area Chamber of Commerce Local Legislative Affairs Committee - March 22 Presentation to Air Quality Advisory Board - March 18 Presentation to the natural Resource Advisory Board - May 15 Presentations to NFCBA, SFCBA Board URA Policy Working Group - Meetings on April 17, April 30, May 10. ATTACHMENTS 1. URA Policies and Procedures, adopted by Resolution No. 045 (Adopted October 23, 2012) 2. 2009 Target Finder Brochure 3. Work Session Summary, February 28, 2013 4. Work Session Summary, July 30, 2013 5. Powerpoint presentation 360 of 402 ATTACHMENT 1 361 of 402 362 of 402 363 of 402 364 of 402 365 of 402 366 of 402 367 of 402 1U.S. Department of Energy Energy Information Agency’s 2003 Commercial Buildings Energy Consumption Survey (CBECS), a national sample survey that collects information on the stock of U.S. commercial buildings, their energy-related building characteristics, and their energy consumption and expenditures. Designed to Earn the ENERGY STAR is the U.S. Environmental Protection Agency’s designation for energy-efficient design projects that reduce greenhouse gas emissions. TARGET FINDER: SET GOALS FOR ENERGY SAVINGS ACHIEVE DESIGNED TO EARN THE ENERGY STAR® DESIGNING ENERGY-EFFICIENT BUILDINGS Generating the energy to power America’s commercial and industrial buildings causes almost half of our nation’s greenhouse gas emissions. You can help the U.S. Environmental Protection Agency (EPA) by designing buildings to use less fossil fuel energy—the first step in committing to energy and cost savings over the life of your building. SET YOUR ENERGY TARGET Architects, engineers, and building owners who want to set energy targets to achieve Designed to Earn the ENERGY STAR and meet government and industry goals can use Target Finder. It provides easy to understand energy use targets based on actual building energy consumption data1 for more than a dozen building types in the United States. EPA’s ENERGY STAR energy performance scale assigns a score between 1 and 100 for the corresponding energy use intensity for the specified project. RATE YOUR DESIGN You can use Target Finder throughout the design process to rate estimated energy use for design alternatives and trade-offs. The EPA score is an “apples-to-apples” comparison of your project’s estimated energy use to that of similar U.S. building types. The tool adjusts for primary drivers of energy such as building size, climate, operating hours, number of occupants, and computers. It also provides a rating for projects using Building Information Modeling through a Web-based energy analysis service. RECEIVE EPA RECOGNITION Architects use Target Finder to receive Designed to Earn the ENERGY STAR certification for projects and to participate in the ENERGY STAR Challenge. EPA recognizes these architecture firms and design projects in publications, on the ENERGY STAR website, and at events. The EPA energy performance rating uses a 1-100 scale and makes it easy to set energy targets and evaluate energy use intent. Lower energy use yields a higher performance rating. A 75 or higher design score achieves the ENERGY STAR. 100 EPA ENERGY PERFOMANCE RATING 75 Site Energy 1 50 Low High Pre-Design: Set Energy Use Goal Complete all required fields, indicated by a red asterisk (*), and Target Finder will calculate the energy use target for the project. 1. FACILITY INFORMATION Enter the ZIP code where the project will be built. Target Finder selects the appropriate climate data and determines the energy fuel mix (electricity, NG, etc.) typical of the specified location. The tool can be used only for projects in U.S. cities, states, and territories. 2. FACILITY CHARACTERISTICS Select the applicable space type2 from the drop down menu. Provide requested attribute information for the design project. 3. TARGET RATING Choose “Target Rating” or “Energy Reduction Target,” and the tool provides the total annual energy use for the selected target. An EPA score of 75 or higher achieves ENERGY STAR. Select “View Results” to see Target Energy Performance Results Schematic and Design Development As the design develops, enter results from energy analysis calculations. 4. DESIGN ENERGY Enter your project’s estimated results for the energy sources, annual energy usage, and costs. Target Finder will provide an ENERGY STAR score for the design project’s estimated energy. Select “View Results” to see Target Energy Performance Results. SET ENERGY USE TARGETS AND RATE YOUR DESIGN Use Target Finder throughout the design process from pre-design to establish design target; and on through design development to determine if energy efficiency goals are being achieved on the project. 2Performance ratings are available for about 60 percent of the commercial building square footage across the United States. If your building is a space type other than those listed in Target Finder, you can compare its energy use with the national median source and site energy use for many additional spaces using the 2003 CBECS National Median Source Energy Use and Performance Comparisons. 369 of 402 HELP BUTTON The HELP section includes space type definitions, default values, and information about using the tool. APPLY FOR DESIGNED TO EARN THE ENERGY STAR Design projects that score 75 or higher are eligible for Designed to Earn the ENERGY STAR certification. Click on the APPLY button and complete the Statement of Energy Design Intent. THE DESIGN RATING In the example, the office building design score is 92, and the project achieves an estimated 48% reduction in energy use compared to the median building. Use this comparison to determine which design strategies will best achieve your goal for energy efficiency. EDIT BUTTON Use the EDIT button located at the top of each table to change your entries. (Note: Using the “Back” button on your browser may delete your data.) Note: An incomplete energy use profile could result in a high but inaccurate rating. Total annual estimated energy use should include plug, process, and all non-regulated loads; equipment loads specified on drawings; and all energy sources.4 TARGET FINDER RESULTS SCREEN Target Finder displays the annual source3 and site energy results for the Design, Target, and Median Building, which provide a reference for comparing energy design strategies and alternatives for achieving your energy use goal. 3Source energy represents the total amount of raw fuel that is required to operate the building. It incorporates all transmission, delivery, and production losses, thereby enabling a complete assessment of energy efficiency in a building. 4The EPA energy performance rating used in Target Finder is derived from fuel consumption data of existing commercial buildings, which include the total energy use associated with the building. Therefore, design energy use should include all fuel sources and total estimated energy use for the building design. Gaps in energy analysis should be addressed in order for the rating to be a useful indicator of the design’s energy intent. APPLY for “Designed to Earn the ENERGY STAR” 370 of 402 ENERGY STAR COMMERCIAL BUILDING DESIGN ENERGY STAR is a U.S. Environmental Protection Agency program helping businesses and individuals fight global warming through superior energy efficiency. COMMERCIAL BUILDING DESIGN ON THE WEB Find links to A/E projects and firms that are using Target Finder and participating in the ENERGY STAR Challenge, while designing buildings that achieve the superior energy efficiency criteria set by EPA. DESIGNED TO EARN THE ENERGY STAR GUIDE Use the online Designed to Earn the ENERGY STAR Guide as a start-to-finish framework for architects and owners to show commitment to energy-efficient building design. OMB No.2060-0347 STATEMENT OF ENERGY DESIGN INTENT March 6, 2012 FACILITY INFORMATION & CHARACTERISTICS Facility Name: Capital Towers Location: Washington, DC 20005 United States Design Energy (kBtu) 1 Electricity - Grid Purchase 2,000,000 Space Type: Total Floor Area: Natural Gas 900,000 Office 50,000 sq. ft. Total Gross Floor Area: 50,000 Sq. Ft. RESULTS FOR ESTIMATED ENERGY USE DESIGN MEDIAN BUILDING ESTIMATED SAVINGS EPA Energy Performance Rating (1-100)1 92 50 42 Percent Energy Reduction (%)2 48 0 N/A Site Energy Use Intensity (kBtu/sf/yr) 58 112 54 Source Energy Use Intensity (kBtu/sf/yr) 152 294 142 Total Annual Site Energy Use (kBtu/yr) 2,900,000 5,596,414 2,696,414 Total Annual Source Energy Use (kBtu/yr) 7,622,300 14,709,499 7,087,199 Total Annual Energy Costs ($) $ 92,564 $ 178,630 $ 86,066 Pollution Emissions (metric tons/yr) 3 CO2-eq 331 639 308 CONTACT INFORMATION Building Owner/Company Name Address City, State, Zip Code Contact Name Phone Email Professional Verification (Licensed Architect/Engineer) Prepared By Firm Name Address City, State, Zip Code Phone Email Architect of Record Firm (if different from verifier) Name Firm Name Phone Email Professional Stamp Signature & Date This project was specified and executed to achieve Designed to Earn the ENERGY STAR certification. ATTACHMENT 3 372 of 402 ATTACHMENT 4 373 of 402 374 of 402 1 Policy Amendments URA Board Meeting October 15, 2013 ATTACHMENT 5 375 of 402 2 Tonight’s Action • Resolution to adopt revised policies and procedures related to energy efficiency requirements, deconstruction, and administrative procedures. 376 of 402 3 Public Process URA Board Worksession - February 28, July 30 URA Policy Working Group Presentations to: • Fort Collins Area Chamber of Commerce Local Legislative Affairs Committee – March 22 • Air Quality Advisory Board – March 18 • Natural Resource Advisory Board – May 15 • NFCBA, SFCBA Board 377 of 402 4 Energy Efficiency Requirements • EPAs Energy Star Program • Target Finder system (online tool) during design phase • Set energy targets and receive energy performance score (1-100) • 75+ are eligible for Designed to Earn the Energy Star certification • 35% better than comparable buildings and represents the top 25% of existing buildings 378 of 402 5 Energy Efficiency Requirements • Incentivize Energy Star Label Certification • Monitor energy use for 12 consecutive months • URA project is eligible for additional assistance in the amount of 1% of the original Tax Increment Financing assistance 379 of 402 6 Energy Efficiency Requirements Applicability: New buildings and major renovations (more than 50% of square footage affected) • Designed to Earn Energy Star certification Minor Renovations (Less 50% square footage affected) • Current Energy Code (except building envelope) • Monitor Energy Use for 12 months (Encouraged) 380 of 402 7 Deconstruction/Recycling • 2012 International Codes Adoption Process • Deconstruction of buildings 381 of 402 8 Deconstruction/Recycling • Safely remove all asbestos and lead paint contaminants • Doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard shall be recycled • Certified by the hauler through receipts and signed affidavits 382 of 402 9 Administrative Procedures Approval • Allows staff flexibility to implement policies • Respond quickly to issues Delegate the authority to approve Administrative Procedures with the Executive Director 383 of 402 - 1 - RESOLUTION NO. 063 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY ADOPTING UPDATED POLICIES FOR THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, on October 23, 2012, the Board of Commissioners of the Fort Collins Urban Renewal Authority (the “Board”) adopted Resolution No. 45, approving and adopting new and extensive policies and procedures in order to better describe the priorities and expectations for the processing of applications for financial assistance from the Urban Renewal Authority (the Authority”); and WHEREAS, on October 23, 2012, the Board deferred any decision regarding the kinds of green building practices and/or sustainability measures that should be required of applicants for URA financial assistance in order to allow additional time for research and policy formation; and WHEREAS, in response to Board input, Authority staff initiated a review of Authority policies, as well as City of Fort Collins building code requirements, to ensure consistency between City policies and City Code requirements as they relate to green building practices and energy efficiency; and WHEREAS, after reviewing the Authority policies and procedures, Authority staff has recommended certain amendments that require Authority projects to be designed and constructed in a manner that achieves the Environmental Protection Agency’s Energy Star label, as well as to achieve a specified level of recycling/deconstruction; and WHEREAS, in reviewing the Authority policies and procedures, Authority staff has recommended certain amendments that would delegate to the Authority Executive Director the authority to approve administrative procedures for the Authority; and WHEREAS, in response to Board input during the October 23, 2012, Board hearing, as well as the February 28, 2013, and July 30, 2013, work sessions of the Board, Authority staff has recommended certain minor language changes in the policy to clarify the policy intent. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY as follows: Section 1. That the Board adopts the Fort Collins Renewal Authority Policies, attached hereto as Exhibit “A” and incorporated herein by this reference, and finds and determines that all Authority projects shall be designed and constructed in a manner that achieves the Environmental Protection Agency’s Energy Star label, as well as the level of recycling/deconstruction required under such policies. 384 of 402 - 2 - Section 2. That the Board hereby adopts the Fort Collins Urban Renewal Authority Policies attached hereto as Exhibit “A” and incorporated herein by this reference to replace and supersede the Authority Policies previously adopted on October 23, 2012. Section 3. That the Board hereby authorizes the Authority Executive Director to approve such administrative procedures as he or she deems necessary for the implementation of the Authority’s Policies. Passed and adopted at a regular meeting of the Board of the Commissioners of the City of Fort Collins Urban Renewal Authority this 15th day of October A.D. 2013 ___________________________________ Chairperson ATTEST: _________________________________ Secretary 385 of 402 FORT COLLINS URBAN RENEWAL AUTHORITY POLICIES Revised October 20122013 “The mission of the Urban Renewal Authority is to remedy blight, using Tax Increment Financing, to leverage private capital investment, and stimulate sustainable development and public improvement projects.” SECTION 1 – PURPOSE The purpose of this document is to provide guidance for the Fort Collins Urban Renewal Authority (URA) staff, recommending bodies, and URA Board (Board) in considering, reviewing and processing applications that seek to use Tax Increment Financing (TIF) for development activities within established TIF Districts. Policies are in accordance with Colorado Urban Renewal Law (C.R.S. § 31‐25‐101 et seq.) but have been adapted to further the City’s own vision and goals for the URA. The Board may, in its discretion, amend or waive sections of this document when determined necessary or appropriate. The fundamental purpose for application to the URA for TIF assistance is to facilitate desirable development/redevelopment projects within the URA TIF District that would not otherwise occur “but for” the assistance provided through TIF. The Board intends to provide the minimum amount of TIF assistance needed to make the project viable in order to preserve unencumbered TIF for District‐wide public improvements. The provision of financial assistance is at the sole discretion of the Board which shall, in its discretion, reject or approve projects on a case‐by‐case basis taking into account established policies, specific project criteria, and demands on City services versus potential public benefits received from the proposed project. Meeting policy guidelines and other criteria does not guarantee the award of TIF assistance. Furthermore, approval or denial of one project is not intended to set a precedent for approval or denial of any other project. SECTION 2 - OBJECTIVES The URA was established to accomplish the following objectives: Eliminate blight. Improve public infrastructure (streets, storm drainage, sewer, utilities, etc.) in areas where deficiencies exist. Remove impediments to desired development, e.g., lack of infrastructure, environmental contamination, presence of floodplain, and/or unsuitable soils. Retain, expand or attract businesses for the purpose of improving the City’s economic base as demonstrated by projects that retain jobs, create primary jobs, increase the manufacturing base, etc. Create destination locations, including mixed‐use projects, which will capture additional revenue to the area. EXHIBIT A 386 of 1 402 Encourage development projects that enhance the streetscapes and pedestrian experience and improve the vitality of commercial corridors by adding interest and activity. Provide a variety of quality housing choices. Encourage development that is consistent with City Plan, subarea plans, and approved Urban Renewal Plans. Promote energy and water efficiencies within buildings and developments. Protect natural habitats and features. SECTION 3 – ELIGIBLE COSTS The following are eligible costs that may be considered for TIF assistance: Removal of hazardous materials or conditions (sites where remediation or mitigation is required). Site clearance or site acquisition. Land assemblage. Parking/structured parking for the public. Infrastructure that is extraordinarily costly to the project and/or serves other development and redevelopment facilitating further improvements in the area. Sustainable and renewable energy features that reduce the environmental impact of the project. Public amenities such as parks, plazas, community gathering areas and streetscapes to enhance the aesthetics of the area. Capital Improvement Projects (CIP) as identified by the City of Fort Collins. Projects listed in Infrastructure Plans related to the Plan area, e.g., North College Infrastructure Funding Plan. Other qualifying expenses as permitted by Colorado Revised Statutes (C.R.S.) § 31‐25‐101 et seq. SECTION 4 – EVALUATION CRITERIA The following evaluation criteria will be used to review applications seeking TIF. Since every project is unique, additional evaluation criteria may become necessary and will be determined individually based on the merits of the project. Construction Practices: All URA projects that include new construction or major renovations of existing buildings (more than 50% of square footage affected) shall be required to design buildings in such a manner as to be eligible for Designed to Earn the Energy Star (DEES) certification. Once buildings are completed, the energy use may be monitored for 12 consecutive months to demonstrate the operating building earns an EPA rating of 75 or higher in Portfolio Manager and if verification is received by a professional engineer or registered architect that the building meets indoor environmental standards qualifies to earn the ENERGY STAR label, the project shall be awarded an additional assistance in the amount of 1% of the original Tax Increment Financing. 387 of 2 402 All URA projects that include renovations that affect less than 50% of existing square footage shall be required to meet the current energy code, except for the building envelope requirements, and energy use may be monitored through the Energy Star program for 12‐consecutive months in an effort to raise energy use awareness. Financial feasibility: TIF assistance will not be considered for projects that have the financial feasibility to proceed without TIF assistance, except where exceptional circumstances warrant support for the project. Individuals requesting TIF must demonstrate, to the satisfaction of the URA, sufficient equity investment in the project prior to seeking TIF. Equity is defined as cash or un‐ leveraged value in land or prepaid costs attributable to the project. Examples of equity may include personal cash, letter of credit, personal investment, awarded grant monies, etc. Assistance will not be provided solely to increase the developer’s profit margin on the project. Prior to consideration of a TIF request, the URA will undertake a financial analysis of the project costs to ensure that the developer’s internal rate of return (IRR) is reasonable based on the characteristics of the project. For projects that will generate more than $1 million in TIF or create a project that is more than 10,000 sq. ft. in size there may be an independent financial analysis. The independent analysis will be contracted for by the URA and the cost will be paid for by the applicant. Additionally, if the project is seeking more than 50% of the property tax increment generated from the project, or if the applicant is asking for requesting more than $150,000 in financial assistance, an independent financial analysis of the project may be required by the URA. Public Benefit: A qualitative and/or quantitative analysis should be completed in order to identify the public benefits achieved by the project. Analysis of the benefits of the project will be measured against the expectations set in the relevant plans that may include, but not be limited by, City Plan (the City’s Comprehensive Plan), an Urban Renewal Plan, a community subarea plan, or an adopted policy, ordinance, or resolution of the City Council. Public benefits that garner additional consideration by the URA Board include: - Affordable housing projects that exceed the minimum City Land Use Code definition of an “affordable housing project”. - Projects that have local ownership, which is defined to mean any home location, business, or developer located within a 40 mile radius from the City of Fort Collins Growth Management boundary. - Projects that achieve or exceed LEED Silver certification. - Projects that include early childhood care and/or education centers. - Historic preservation and/or adaptive reuse of historic structures. 388 of 3 402 Projects that do not provide sufficient public benefits may, after review, be provided feedback and allowed to submit a revised application. Revisions may lead to approval or final denial of the URA applicant and may include, but are not limited to: - Greater developer contribution; - Reduced TIF participation; and/or - Redefinition of the scope of the project. Section 5 – Other General Policies If substantial URA expense may be involved during screening, reviewing, and/or negotiating, a party requesting assistance from the URA may be asked to pay a deposit in order to fund URA staff or contractual work in advance of the URA incurring significant costs; furthermore, contractual commitments to fund appropriate work or other expenses may be required in advance of, or in connection with, a formal application or other request for assistance. The applicant must be able to demonstrate to the Board’s satisfaction an ability to construct, operate, and maintain the proposed project based upon past experience, general reputation, and credit history. TIF assistance for land/property purchase costs will not be provided in an amount exceeding the fair market value of the property. Fair market value will be determined by an independent appraiser hired by URA staff. The cost of the appraisal will be paid for by the applicant. There will be no interest paid on any portion of the applicant’s reimbursable expenses. TIF will not be used to retroactively reimburse projects or make payments to cover costs associated with any actions incurred by a development/redevelopment prior to execution of the Redevelopment Agreement, except for eligible hard costs associated with public improvements required of the project as approved by the Board. For URA funded projects with new buildings, and additions over 5,000 square feet or remodels over 5,000 square feet a construction waste management plan acceptable to the Building Official that includes recycling of concrete and masonry, wood, metals, and cardboard, is required at time of application for a building permit. The construction waste management plan shall be implemented and conspicuously posted on the construction site. Compliance shall be certified by the hauler through receipts and signed affidavits. Substantive changes to the plan shall be subject to prior approval by the Building Official. For URA funded projects, buildings or portions of buildings that are removed shall be processed in such a way as to safely remove all asbestos and lead paint contaminants in accordance with the State of Colorado and Environmental Protection Association (EPA) rules and regulations regarding such materials. All remaining materials such as doors, windows, cabinets, and fixtures, concrete and masonry, wood, metals, and cardboard shall be recycled. Compliance shall be certified by the hauler through receipts and signed affidavits. 389 of 4 402 5 ADMINISTRATIVE PROCEDURES SECTION 1 ‐ APPLICATION REQUIREMENTS The applicant must complete the TIF application in its entirety, including the following documentation: A location map Site plans or project drawings/perspectives/elevations Project pro‐forma included, but not limited to: - Estimate of construction costs from licensed general contractor - Breakdown of public verses private improvements - Projected rents with vacancy assumption - Project schedule Owner/Business resume A proposed project timetable indicating the estimated time frame for major steps including the City’s planning decision, completion of financial commitments, start of construction, and issuance of Certificate of Occupancy (CO). Executive Summary with answers to the following questions: – What is the nature of the project? – Why is TIF assistance needed and how will the funds be used? – What sources of financing will the project secure other than TIF? – How will the project help improve/upgrade public infrastructure (streets, utilities, drainage, etc.)? – How will the project enhance the property tax base (and sales tax base, if applicable) of the area? – How will the project help achieve the goals of the Urban Renewal Plan and City Plan? – How will the project help eliminate slum and blight conditions? – How will this project help achieve the URA goals of sustainability through green building techniques? Please be specific how this project uses energy and water efficiency exceeding code requirements, renewable resources, natural resource conservation techniques, or stormwater low impact design methods. SECTION 2 – APPLICATION PROCESS Applications may be submitted to URA staff at any time during regular business hours. After URA staff has done a preliminary analysis and made suggested edits or modifications to the application, there will be a final submittal. After the final submittal, the financial analysis will take place. If the analysis is completed by an independent consultant, additional time may be required depending on availability. Additional community‐based input from affected groups may be required. – Feedback from community‐based input (e.g., North Fort Collins Business Association, South Fort Collins Business Association) may require modifications that delay approval and even require additional financial analysis. 390 of 402 6 – If the application is for a project within the North College Urban Renewal Plan Area, the North College Citizen Advisory Group (CAG) must make a recommendation by a majority vote. The CAG meets on a monthly basis and the proposed project/TIF application will be scheduled on the agenda once the financial analyses are completed and the URA staff has adequate information and achieved a staff recommendation to present. The final application will be reviewed by the URA Team, which includes staff representatives from the following Departments: - Economic Health - Engineering - Utilities - Planning - Legal - Finance If the fundamental objectives of the URA are not clearly met, the application will be denied by staff and will not move forward to the Board for approval. The applicant may re‐apply if there is a significant financial change affecting the project’s financial feasibility, or if the project changes extensively from the original application and should be considered on its own merit. If the URA Team recommends the application, staff will work with the applicant to create a project specific Redevelopment Agreement (RA) that will define the terms of URA participation and TIF assistance for the project. Once a final RA is agreed to, URA staff will schedule the application for consideration at a hearing before the Board. The Board typically meets bimonthly on Tuesday evenings. The Board will consider the application at the scheduled meeting. The Board will decide whether or not to support the application. The Board’s action may include: o Adoption of the RA; o Continuation or delay of decision; o Denial of the application; or o Conditional approval of the RA with clear direction on suggested terms. The Board will also clearly indicate if the conditions are mandatory for approval or optional enhancements. If denied, the URA Board will not allow re‐application to the URA for TIF unless there are significant changes from the original denied application. An approved Redevelopment Agreement will remain valid for 12 months and will expire if not properly executed within that timeframe. Until such time as a RA has been finalized and executed, no applicant will have any entitlement to TIF assistance. Except as otherwise approved by the URA Board, TIF assistance will be on a reimbursement basis and only after the project valuation is verified by the Larimer County Assessor’s Office and the Certificate of Occupancy (CO) or Letter of Completion (LOC) is issued at completion of construction. The funds will be paid upon actual costs, without interest, with verifiable receipts. 391 of 402 Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, 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. Please call 221-6515 (TDD 224- 6001) for assistance. GENERAL IMPROVEMENT DISTRICT NO. 1 MEETING October 15, 2013 (after the Urban Renewal Authority Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. First Reading of Ordinance No. 065, Determining and Fixing the Mill Levy for the General Improvement District No. 1 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of County Commissioners of Larimer County; and Making the Fiscal Year 2014 Annual Appropriation. (staff: Mike Beckstead; no staff presentation; 5 minute discussion) The sum of $276,258 is anticipated to be collected from the mill levy of 4.924 mills for fiscal year 2014 imposed within the General Improvement District No. 1 (GID) boundaries. Additional revenue for GID No. 1 from sources like automobile specific ownership taxes, ad valorem taxes, and interest earnings are anticipated to total $37,732. The total 2014 revenue for GID No. 1 is expected to be $313,990. 4. Other Business. 5. Adjournment. GENERAL IMPROVEMENT DISTRICT NO. 1 AGENDA 392 of 402 Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 15, 2013 General Improvement District No. 1 Board STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 065, Determining and Fixing the Mill Levy for the General Improvement District No. 1 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County; and Making the Fiscal Year 2014 Annual Appropriation. EXECUTIVE SUMMARY The sum of $276,258 is anticipated to be collected from the mill levy of 4.924 mills for fiscal year 2014 imposed within the General Improvement District No. 1 (GID) boundaries. Additional revenue for GID No. 1 from sources like automobile specific ownership taxes, ad valorem taxes, and interest earnings are anticipated to total $37,732. The total 2014 revenue for GID No. 1 is expected to be $313,990. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The recommended appropriations for this amount are as follows: Capital Improvement Projects: $26,000 to be used for capital improvements in the downtown area for projects yet to be determined Other GID expenses: $ 15,691 for staffing $ 11,500 for the Larimer County Treasurer’s fee for collecting the property tax $ 23,000 for the property tax rebate program $ 2,500 for estimated electrical costs for downtown lighting and water $ 310 for miscellaneous expenses $115,000 for transfer to other funds $168,001 TOTAL FINANCIAL / ECONOMIC IMPACT This Ordinance includes the annual appropriation for 2014 at $194,001. This item also sets the GID No. 1 mill levy at 4.924 mills, which will generate approximately $276,258 for fiscal year 2014. Additional 2014 revenue for the GID No. 1 includes automobile specific ownership taxes, ad valorem taxes, and interest which together are projected to be $37,732 in fiscal year 2014. 393 of 402 Agenda Item 3 Item # 3 Page 2 ATTACHMENTS 1. Boundary map 394 of 402 ATTACHMENT 1 395 of 402 - 1 - ORDINANCE NO. 065 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO, ACTING AS THE EX-OFFICIO BOARD OF DIRECTORS OF GENERAL IMPROVEMENT DISTRICT NO. 1, DETERMINING AND FIXING THE MILL LEVY FOR THE GENERAL IMPROVEMENT DISTRICT NO. 1 FOR THE FISCAL YEAR 2014; DIRECTING THE SECRETARY OF THE DISTRICT TO CERTIFY SUCH LEVY TO THE BOARD OF COMMISSIONERS OF LARIMER COUNTY AND MAKING THE FISCAL YEAR 2014 ANNUAL APPROPRIATION WHEREAS, City of Fort Collins General Improvement District No. 1 (the “GID”) in Fort Collins, Colorado, has been duly organized in accordance with the ordinances of the City and the statutes of the State of Colorado; and WHEREAS, GID staff has considered the amount of money to be raised by a levy on the taxable real property in the GID and recommends that a levy of 4.924 mills upon each dollar of the assessed valuation of all such taxable property within the limits of the GID is required during 2014 to pay the cost of operating the GID; and WHEREAS, GID staff estimates a levy of 4.924 mill will result in $276,258 of revenue; and WHEREAS, the amount of this proposed mill levy is not an increase over prior years; as such, prior voter approval of the levy is not required under Article X, Section 20 of the State Constitution; and WHEREAS, Section 39-5-128(1), C.R.S., requires certification of any tax levy to the Board of Commissioners of Larimer County no later than December 15; and WHEREAS, additional revenue is collected by the GID from such sources as the automobile ownership tax, ad valorem taxes, and interest earnings, which revenue for 2014 is anticipated to be $37,732; and WHEREAS, it is the desire of the City Council, acting ex-officio as the Board of Directors of the GID, to appropriate the necessary funds for operating costs and capital improvements of the GID for the fiscal year beginning January 1, 2014, and ending December 31, 2014. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, acting ex-officio as the Board of Directors of the City of Fort Collins General Improvement District No. 1, as follows: Section 1. That, for the purpose of providing the necessary funds to meet the expenses to be incurred in the General Improvement District No. 1 in 2014, 4.924 mills is hereby levied upon each dollar of the assessed valuation of all taxable real property within the General Improvement District No.1 as of December 31, 2013. 396 of 402 - 2 - Section 2. That the Secretary of the General Improvement District No. 1 is hereby authorized and directed to certify such levy to the County Assessor and Board of Commissioners of Larimer County, as provided by law. Section 3. That the City Council, acting ex-officio as the Board of Directors of General Improvement District No. 1, hereby appropriates out of the revenues of GID for the fiscal year beginning January 1, 2014 and ending December 31, 2014 the sum of ONE HUNDRED NINETY FOUR THOUSAND AND ONE DOLLARS ($194,001), to be raised by taxation and additional revenue, to be expended for the authorized purposes of the General Improvement District No.1. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary 397 of 402 Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, 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. Please call 221-6515 (TDD 224- 6001) for assistance. SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT MEETING October 15, 2013 (after the General Improvement District No. 1 Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. First Reading of Ordinance No. 004, Determining and Fixing the Mill Levy for the Skyview South General Improvement District No. 15 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County. (staff: Mike Beckstead; no staff presentation; 5 minute discussion) The sum of $24,861 is anticipated to be collected from the mill levy of 10.0 mills for fiscal year 2014. Additional revenue for the General Improvement District (GID) No. 15 ("GID No. 15") from interest earnings is anticipated to generate $398. The total 2014 revenue for GID No. 15 is expected to be $25,259. The total amount will be used in the future to maintain and repair roads in the Skyview subdivision. 4. Other Business. 5. Adjournment. SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT AGENDA 398 of 402 Agenda Item 3 Item # 3 Page 1 AGENDA ITEM SUMMARY October 15, 2013 Skyview South General Improvement District No. 15 Board STAFF Mike Beckstead, Chief Financial Officer SUBJECT First Reading of Ordinance No. 004, Determining and Fixing the Mill Levy for the Skyview South General Improvement District No. 15 for the Fiscal Year 2014; Directing the Secretary of the District to Certify Such Levy to the Board of Commissioners of Larimer County EXECUTIVE SUMMARY The sum of $24,861 is anticipated to be collected from the mill levy of 10.0 mills for fiscal year 2014. Additional revenue for the General Improvement District (GID) No. 15 ("GID No. 15") from interest earnings is anticipated to generate $398. The total 2014 revenue for GID No. 15 is expected to be $25,259. The total amount will be used in the future to maintain and repair roads in the Skyview subdivision. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2009, the City annexed Phase 3 of the Southwest Enclave Annexation. The area annexed included the entire Larimer County Skyview South General Improvement District No. 15 (GID No.15). A map of the GID No. 15 is attached. Larimer County organized GID No. 15 in 1997. Pursuant to Section 31-25-603, C.R.S., since the annexation area included the entire area within the improvement district boundaries, upon annexation, GID No.15 became a City-operated district and Council has thereafter acted as the ex officio Board of Directors of the District. Under State law, the City is required to set the annual mill levy for the GID No. 15 and to certify the amount of the levy to the Board of County Commissioners for Larimer County. This Ordinance continues the establishment, as in years past, of a mill levy of 10.0. FINANCIAL / ECONOMIC IMPACT This Ordinance sets the Skyview South General Improvement District No. 15 mill levy at 10.0 mills, which will generate approximately $24,861 for fiscal year 2014. Additional 2014 revenue for the GID No. 15 includes interest earnings, which are projected to be $398 in fiscal year 2014. ATTACHMENTS 1. Boundary map 399 of 402 W TRILBY RD S COLLEGE AVE W SKYWAY DR CONSTELLATION DR MARS DR VENUS AVE ARAN ST ORBIT WAY DEBRA DR H OLYOKE C T P O L A R I S DR S T A R W A Y S T AV O NDALE R D RAMA H D R N E P T U N E D R GALA X Y W A Y URANUS ST F LA G L E R R D - 1 - ORDINANCE NO. 004 OF THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO ACTING AS THE EX-OFFICIO BOARD OF DIRECTORS OF SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT NO. 15, DETERMINING AND FIXING THE MILL LEVY FOR THE SKYVIEW SOUTH GENERAL IMPROVEMENT DISTRICT NO. 15 FOR THE FISCAL YEAR 2014 AND DIRECTING THE SECRETARY OF THE DISTRICT TO CERTIFY SUCH LEVY TO THE BOARD OF COMMISSIONERS OF LARIMER COUNTY WHEREAS, the Skyview South General Improvement District No. 15 (the “GID”) was created by Larimer County in 1997 and annexed into the City by Phase Three of the Southwest Enclave Annexation in 2009; and WHEREAS, pursuant to Sections 31-25-603 and 37-25-609, C.R.S., as a result of the annexation of the entire GID into the City, the GID is now a district of the City and the City Council is to act as the ex-officio board of directors of the GID; and WHEREAS, GID staff has considered the amount of revenue to be raised by a levy on the taxable real property within the GID boundaries, and recommends imposing a levy of 10.0 mills upon each dollar of the assessed valuation of all such taxable real property for 2014; and WHEREAS, GID staff estimates a levy of 10.0 mills will result in $24,861 of revenue; and WHEREAS, the amount of this proposed mill levy is not an increase over prior years; as such, prior voter approval of the proposed levy is not required under Article X, Section 20 of the State Constitution; and WHEREAS, Section 39-5-128(1), C.R.S., requires certification of any tax levy to the Board of Commissioners of Larimer County, no later than December 15; and WHEREAS, additional revenue is expected to be collected by the GID from interest earnings, totaling $398; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, acting ex-officio as the Board of Directors of the City of Fort Collins Skyview South General Improvement District No. 15, as follows: Section 1. That the 2014 mill levy rate for taxation upon each dollar of the assessed valuation of taxable real property within the GID boundaries shall be 10.0 mills. Section 2. That the City Clerk shall certify this levy of 10.0 mills to the County Assessor and the Board of Commissioners of Larimer County, Colorado as provided by law. Section 3. That the City Council, acting ex-officio as the Board of Directors of the City of Fort Collins General Improvement District No. 15, hereby appropriates out of the revenues of the GID for the fiscal year beginning January 1, 2014 and ending December 31, 2014 the sum of ZERO DOLLARS ($0). 401 of 402 - 2 - Section 4. That revenue to be raised by taxation and additional revenue of the GID will be reserved in fund balance until such future time as authorized by the Board of Directors for the purposes of the General Improvement District No. 15. Introduced, considered favorably on first reading, and ordered published this 15th day of October, A.D. 2013, and to be presented for final passage on the 5th day of November, A.D. 2013. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary Passed and adopted on final reading on the 5th day of November, A.D. 2013. _________________________________ Mayor , Ex Officio President ATTEST: _____________________________ City Clerk, Ex Officio Secretary 402 of 402 IDALIA DR Y U M A CT I D A L I A CT RICK DR SOLAR CT M E R C U R Y D R W SATURN DR F O S S IL CREST DR E TRILBY RD E SATURN DR G A L A X Y CT E SKYWAY DR PLATEAU CT AURORA WAY LEO CT OR I O N CT PLUTO CT SUNDOWN CT FL A G L E R RD General Improvement Skyview South District No. 15 Legend General Improvement District #15 Parcels 1 inch = 600 feet ATTACHMENT 1 400 of 402 1 Target Finder determines an EPA energy performance rating by comparing estimated total annual source energy use to source energy use of an existing building from CBECS database (DOE-EIA). Note: An incomplete energy design profile could result in a high but inaccurate performance score for your project. 2 "Percent Energy Reduction" is the percent reduction from the median energy consumption of a similar building and the equivalent of a Rating of 50. 3 The amount of carbon dioxide equivalent gases emitted from the facility’s estimated energy consumption. This document was generated from Target Finder, an EPA tool located on the ENERGY STAR Web site, www.energystar.gov. Page 1 of 2 OMB No.2060-0347 STATEMENT OF ENERGY DESIGN INTENT March 6, 2012 CILITY INFORMATION & CHARACTERISTICS acility Name: Capital Towers Location: Washington, DC 20005 United States Design Energy (kBtu) 1 Electricity - Grid Purchase 2,000,000 Space Type: Total Floor Area: Natural Gas 900,000 Office 50,000 sq. ft. Total Gross Floor Area: 50,000 Sq. Ft. ESULTS FOR ESTIMATED ENERGY USE DESIGN MEDIAN BUILDING ESTIMATED SAVINGS EPA Energy Performance Rating (1-100)1 92 50 42 Percent Energy Reduction (%)2 48 0 N/A Site Energy Use Intensity (kBtu/sf/yr) 58 112 54 Source Energy Use Intensity (kBtu/sf/yr) 152 294 142 Total Annual Site Energy Use (kBtu/yr) 2,900,000 5,596,414 2,696,414 Total Annual Source Energy Use (kBtu/yr) 7,622,300 14,709,499 7,087,199 Total Annual Energy Costs ($) $ 92,564 $ 178,630 $ 86,066 ollution Emissions (metric tons/yr) 3 CO2-eq 331 639 308 ONTACT INFORMATION uilding Owner/Company Name ddress ty, State, Zip Code ontact Name hone Email ofessional Verification (Licensed Architect/Engineer) epared By rm Name ddress ty, State, Zip Code hone mail chitect of Record Firm (if different from verifier) ame rm Name hone mail Professional Stamp Signature & Date This project was specified and executed to achieve Designed to Earn the ENERGY STAR certification. arget Finder determines an EPA energy performance rating by comparing estimated total annual source energy use to source energy use of an existing ding from CBECS database (DOE-EIA). Note: An incomplete energy design profile could result in a high but inaccurate performance score for your project. Percent Energy Reduction" is the percent reduction from the median energy consumption of a similar building and the equivalent of a Rating of 50. he amount of carbon dioxide equivalent gases emitted from the facility’s estimated energy consumption. STATEMENT OF ENERGY DESIGN INTENT The Statement of Energy Design Intent (SEDI) summarizes all inputs and results data from Target Finder. The SEDI can be included in Contract Documents and Requests for Proposal to help ensure that your intended energy goal for the design project is clearly articulated to the owner and design team. Use the SEDI to apply for Designed to Earn the ENERGY STAR. WEB TRAINING Attend no-cost online presentations about Target Finder and earn AIA/CES credits. CONTACT ENERGY STAR www.energystar.gov/commercialbuildingdesign Hotline: 1.888.STAR.YES (1.888.782.7937) E-mail: spp@energystar.gov Karen P. Butler U.S. EPA—ENERGY STAR Commercial Building Design ENERGY COSTS SAVINGS The SEDI shows an annual savings of $86,066 compared to the median building. The anticipated cost savings could be used to invest in more aggressive energy efficiency measures. RESOURCES 371 of 402 Annual Energy Use Intensity (kBtu / ft2 / year) Designed to Earn the ENERGY STAR ATTACHMENT 2 368 of 402 $58.16 $0.96 $63.21 $30.88 $32.76 $2.33 7.6% $14.26 0.0% $56.88 $4.79 9.0% 1.9% 244 of 402 Utility Owned Transfromers Customer Owned Transfromers Charge Electric Capacity Fee Per square foot Per lineal front foot Service Entrance (per kilowatt- amp) Building Site Charges Primary Circuit 1 phase Primary Circuit 3 phase Transformer Install 1 phase Transformer Install 3 phase $ 64.32 13.5% $ 46.23 $ 53.87 $ 53.87 16.5% $ 56.68 $ 64.32 13.5% 16.5% 235 of 402 $20 $40 $60 $80 $100 $120 $140 $160 2013 Residential Rate Comparison Winter Water Use - 5,000 Gallons 219 of 402 215 of 402 Site Charges Secondary Service 214 of 402 (Based on 2013 Wastewater Cost of Service Study) Option A - Modified COS Option B - Full COS 213 of 402 Year 2 Payment Net Price: USD 25,546.00 ATTACHMENT 1 148 of 402 Rd U n i o n P a c i f i c R a i l r o a d Burlington Northern Railroad Uni on Pa cifi c R ailr oa d Burlington Northern Railroad Great Western Railway City of Fort IGA Collins for Water and Treatment Fort Collins-Service Loveland Capacity Water District CITY GEOGRAPHIC OF FORT INFORMATION COLLINS SYSTEM MAP PRODUCTS These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts them AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. Printed: October 07, 2013 0 1 2 3 Miles © Exhibit A - Points of Delivery ! Points of Delivery Fort Collins Utilities (Water) Fort Collins-Loveland Water District City Limits Growth Management Area MXD: FCLWD IGA EXHIBIT A 133 of 402 11TH ST ENDICOTT ST HOFFMAN MILL RD MULLEIN DR E LAUREL ST PINE ST FRONTAGE RD WOODLAWN DR LESSER DR EAST DR BELLFLOWER DR SYCAMORE ST OLD MAIN DR E MAGNOLIA ST LILAC LN PENNOCK PL MARTINEZ ST POUDRE ST TENNEY CT LOPEZ CT EASTDALE DR N LEMAY AVE N MASON ST 1 inch = 1,200 feet 0 500000 1,000 2,000 3,000 4, Feet © Downtown Development Boundary Authority Legend Parcels DDA Boundary Printed: October 01, 2013 Amended: September 17, 2013 ATTACHMENT 1 41 of 402