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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 07/30/2013 - COMPLETE AGENDACITY COUNCIL AGENDA Karen Weitkunat, Mayor Council Chambers Gerry Horak, District 6, Mayor Pro Tem 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. SPECIAL MEETING July 30, 2013 6 p.m. 1. Call Meeting to Order. 2. Roll Call. 3. Executive Session. This special meeting has been called to consider whether to go into executive session for the purpose of meeting with the City Attorney and other affected members of City staff, as permitted under City Code Section 2-31(a)(2), regarding potential litigation and related legal issues. 4. Other Business. 5. Adjournment. 1 of 76 Karen Weitkunat, Mayor Council Information Center Gerry Horak, District 6, Mayor Pro Tem 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. WORK SESSION July 30, 2013 6 p.m. 1. Call Meeting to Order. 2. Local Action Regarding Amendment 64 (Recreational Marijuana.). (staff: Ginny Sawyer, Don Vagge, Bronwyn Scurlock; 90 minute discussion) On November 6, 2012, Colorado voters passed Amendment 64, which requires the state to establish a system in which marijuana is regulated and taxed (similar to alcohol) in a retail environment. These licensed establishments must be separate and distinct from medical marijuana centers. Under Amendment 64, Council has three options in regard to retail operations: (1) adopt an ordinance prohibiting retail marijuana businesses in Fort Collins; (2) refer a retail marijuana prohibition question to the voters; or (3) allow retail marijuana businesses in Fort Collins and impose local restrictions on the time, place, manner and number of retail marijuana operations. Additionally, the Amendment allows persons 21 years of age or older to legally possess up to one ounce or less of marijuana without a doctor’s recommendation and to grow up to six marijuana plants. Local jurisdictions have the option to better define and regulate home growing if they choose. 2 of 76 July 30, 2013 3. Other Business. 4. Adjournment. 3 of 76 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 WORK SESSION July 30, 2013 (after the City Council Work Session) 1. Call Meeting to Order. 2. The Role of the Urban Renewal Authority to Carry out the Mission and Implement the Policies Within City Plan. (staff: Bruce Hendee, Josh Birks, Tom Leeson; 1 hour discussion) The three different roles the Urban Renewal Authority (URA) can play to support the redevelopment of targeted areas include, React, Promote and Initiate. The various roles the URA takes are directly related to its strategy to carry out the goals and policies in City Plan with respect to redevelopment. The extent to which the Board engages in these roles is a policy decision and should be discussed by the Board. Additionally, there is a relationship between the role the URA takes with a certain project and the purpose of the financial assistance that also influences how the URA achieves its mission. 3. Urban Renewal Policies Relating to Energy Efficiency Requirements and Recycling/Reuse of Demolition and Construction Waste Materials. (staff: Bruce Hendee, Josh Birks, Tom Leeson; 1 hour discussion) Consideration of the March 27, 2013 Urban Renewal Authority (URA) Board resolution to require URA funded projects to participate in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds, was continued to allow for greater public outreach and discourse with interested parties. Subsequent to the March URA Board meeting, staff set up a working group of 4 of 76 July 30, 2013 community members and industry professionals to provide feedback on the proposed changes. The group supported the required participation in the Energy Star program; however, the group recommended the punitive aspect of withholding funds if the project does not meet the required score be removed. The working group also supported the required waste diversion from construction and/or demolition but suggested an allowance for “As-Built Surveys” to be submitted as evidence of non-compliance, require third-party verification, and to remove the punitive aspect of the policy. 4. Other Business. 5. Adjournment. 5 of 76 Karen Weitkunat, Mayor Council Information Center Gerry Horak, District 6, Mayor Pro Tem 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. WORK SESSION July 30, 2013 6 p.m. 1. Call Meeting to Order. 2. Local Action Regarding Amendment 64 (Recreational Marijuana.). (staff: Ginny Sawyer, Don Vagge, Bronwyn Scurlock; 90 minute discussion) On November 6, 2012, Colorado voters passed Amendment 64, which requires the state to establish a system in which marijuana is regulated and taxed (similar to alcohol) in a retail environment. These licensed establishments must be separate and distinct from medical marijuana centers. Under Amendment 64, Council has three options in regard to retail operations: (1) adopt an ordinance prohibiting retail marijuana businesses in Fort Collins; (2) refer a retail marijuana prohibition question to the voters; or (3) allow retail marijuana businesses in Fort Collins and impose local restrictions on the time, place, manner and number of retail marijuana operations. Additionally, the Amendment allows persons 21 years of age or older to legally possess up to one ounce or less of marijuana without a doctor’s recommendation and to grow up to six marijuana plants. Local jurisdictions have the option to better define and regulate home growing if they choose. 6 of 76 July 30, 2013 3. Other Business. 4. Adjournment. 7 of 76 DATE: July 30, 2013 STAFF: Darin Atteberry, Ginny Sawyer, Don Vagge, Bronwyn Scurlock Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION Local Action Regarding Amendment 64 (Recreational Marijuana.). EXECUTIVE SUMMARY On November 6, 2012, Colorado voters passed Amendment 64, which requires the state to establish a system in which marijuana is regulated and taxed (similar to alcohol) in a retail environment. These licensed establishments must be separate and distinct from medical marijuana centers. Under Amendment 64, Council has three options in regard to retail operations: (1) adopt an ordinance prohibiting retail marijuana businesses in Fort Collins; (2) refer a retail marijuana prohibition question to the voters; or (3) allow retail marijuana businesses in Fort Collins and impose local restrictions on the time, place, manner and number of retail marijuana operations. Additionally, the Amendment allows persons 21 years of age or older to legally possess up to one ounce or less of marijuana without a doctor’s recommendation and to grow up to six marijuana plants. Local jurisdictions have the option to better define and regulate home growing if they choose. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council need additional information to make a decision as to whether to ban or regulate retail marijuana operations? If so, what information? 2. If retail operations are allowed in the City, what regulatory concerns would Council like staff to address? ALLOW RETAIL BUSINESSES - Includes Retail, Cultivation, Manufacturing, Testing • Which types of retail establishments would be allowed? • Utilize State regulations and adopt additional local regulations? There are many options available for local regulations, including land use regulations, limiting the number, fee setting, taxing allowing co-location of retail and medical, etc. If Council chooses to allow retail businesses, staff will recommend a temporary ban to allow time to develop and approve local regulations 8 of 76 July 30, 2013 Page 2 BAN RETAIL BUSINESSES - Some or All (Retail, Cultivation, Manufacturing, Testing) • By Ordinance? • By Vote? (November 2014 ballot) TEMPORARY BAN • Adopt a temporary ban on retail establishments until: N Council has adopted local regulations N It is determined whether the voters will approve sales and/or excise taxes on retail operations in November 2014. N Other? 3. Is Council interested in submitting a local sales tax on retail operations to the voters? BACKGROUND / DISCUSSION Amendment 64 On November 6, 2012, Colorado voters passed Amendment 64. In Larimer County, the Amendment passed 55.77% to 44.23%. The Amendment allows for the following types of recreational marijuana businesses: • Retail Store - May purchase marijuana from cultivation facilities and marijuana products from manufacturing facilities and sell to the public. • Manufacturing Facility - May purchase marijuana for the manufacture, preparation, and packaging of marijuana products. Products can be sold to retail stores or other manufacturing facilities. May not sell to the public. • Testing Facility - Entity licensed to analyze and certify the safety and potency of marijuana. • Cultivation Facility - May cultivate, prepare, and package marijuana for sale to a retail store or manufacturer. May not sell to the public. Amendment 64 also allows people 21 years of age or older to legally possess, use, display, purchase, or transport one ounce or less of marijuana without a doctor’s recommendation. Additionally, anyone 21 years or older may possess, grow, process, or transport up to six marijuana plants. The cultivation of marijuana must occur in an enclosed, locked space. In May 2013 the state legislature passed three pertinent bills addressing retail marijuana regulation and taxation (Attachment 2). The State was required to adopt regulations implementing Amendment 64 by July 1, 2013. The State met this deadline by enacting emergency rules that address some, but not all, aspects of retail marijuana businesses. These emergency rules will expire in October and are meant to provide a 9 of 76 July 30, 2013 Page 3 place-holder to give the State more time to conduct a formal rule making process. The State will have final rules prior to businesses opening for operation in January 2014. The State can begin accepting applications on October 1, 2013. A state license must be issued within 45 to 90 days after the date of application unless the state finds that the application fails to conform to the state’s regulations or any local ordinances or regulations that were in effect at the time the application was submitted. If the City chooses to allow licensed retail stores and wants the state to consider local regulations with regard to any applications submitted by October 1, the local regulations would need to be adopted by that date. Council Options Amendment 64 has always allowed for local government to opt out entirely or opt in and enact local regulations. Should a local government opt in, they must adopt an ordinance addressing licensing by October 1, 2013. Retail Businesses The key local decisions include: 1. Whether to allow retail marijuana establishments to exist at all? 2. Whether to prohibit the establishment of licensed retail marijuana businesses permanently, or only until a certain date in the future when the municipality would reevaluate whether or not to allow such businesses to exist after some later date? 3. Which, if any, of the four distinct types of retail marijuana establishments should be allowed? a. retail marijuana stores? b. retail marijuana cultivation facilities? c. retail marijuana products manufacturers? d. retail marijuana testing facilities? 4. Whether to limit the number of businesses allowed in any of the four classes of state licensing and, if so, determine how to prioritize those who would compete for the limited number of approvals. 5. Whether to pursue additional taxation on sales or businesses. The Amendment provides for two means of opting out: 1. Ban by ordinance; 2. Refer a prohibition question to the voters in November 2014. Communities that opt in have many local options, including: • Setting a temporary ban until a reevaluation date in the future. • Allowing some but not all of the types of retail establishments. • Allowing only currently licensed medical marijuana licensees to convert to retail. 10 of 76 July 30, 2013 Page 4 • Limiting the number of retail establishments allowed. • Adopting local zoning and land use requirements. • Setting fees. • Imposing additional taxation including a sales tax and/or occupation tax. • Adopting local licensing procedures. Should Council decide to opt in, staff recommends enacting a temporary ban until March 2014. This date allows time for final state rules to be adopted and incorporated, time to draft local regulations, and also allows time to see if voters approve taxation in November. Marijuana Growing-Personal Use Amendment 64 allows adults to grow six plants “provided that the growing takes place in an enclosed, locked space, is not conducted openly and publicly, and is not made available for sale,” however, the law does not define these terms. Municipalities may consider, and staff has already begun, better defining what constitutes an “enclosed, locked space” and “open and publicly” in their municipal codes. As with medical marijuana, municipalities can use land use, building, and fire codes to regulate home grows. Some municipalities have limited the number of plants per household (regardless of the number of residents), some have dictated the minimum space needed per plant, others have restricted indoor grows to using only specific types of lights; and at least one community has prohibited home grows in multifamily housing. Fort Collins currently allows medical marijuana patients and caregivers to grow up to 12 plants in single-family detached residences. Growing is prohibited in multifamily residences for health and safety reasons. Regardless of Council direction on growing, the City will need to expand our current provisions regarding patients and caregivers growing medical marijuana to include persons growing marijuana consistent with Amendment 64, which allows for anyone over 21 to grow up to 6 plants. What Other Communities are Doing Staff has compiled data from CML and other sources to show what action other communities are taking (Attachments 3 and 5). This data helps demonstrate the potential effects regionally, not just by individual jurisdiction. Our nearest neighbors are currently doing the following in regarding Amendment 64: Loveland: Evaluating recreational marijuana Windsor: Prohibition of all marijuana retail businesses Greeley: Prohibition of all marijuana retail businesses Berthoud: Prohibition of all marijuana retail businesses Larimer County: Evaluating recreational marijuana Boulder: Evaluating recreational marijuana 11 of 76 July 30, 2013 Page 5 Next Steps Should Council decide to opt-in at any level, staff recommends enacting a temporary ban to allow time to craft, vet, and adopt local regulations. Should Council opt to refer the question to the voters in November 2014, staff recommends a temporary ban until after voting results are known. ATTACHMENTS 1. Retail establishment definitions 2. CML Knowledge Now-Marijuana Legislation Implementation 3. Chart of Other Jurisdictions 4. Powerpoint presentation 12 of 76 Amendment 64 Definitions (h) "MARIJUANA CULTIVATION FACILITY" MEANS AN ENTITY LICENSED TO CULTIVATE, PREPARE, AND PACKAGE MARIJUANA AND SELL MARIJUANA TO RETAIL MARIJUANA STORES, TO MARIJUANA PRODUCT MANUFACTURING FACILITIES, AND TO OTHER MARIJUANA CULTIVATION FACILITIES, BUT NOT TO CONSUMERS. (i) "MARIJUANA ESTABLISHMENT" MEANS A MARIJUANA CULTIVATION FACILITY, A MARIJUANA TESTING FACILITY, A MARIJUANA PRODUCT MANUFACTURING FACILITY, OR A RETAIL MARIJUANA STORE. (j) "MARIJUANA PRODUCT MANUFACTURING FACILITY" MEANS AN ENTITY LICENSED TO PURCHASE MARIJUANA; MANUFACTURE, PREPARE, AND PACKAGE MARIJUANA PRODUCTS; AND SELL MARIJUANA AND MARIJUANA PRODUCTS TO OTHER MARIJUANA PRODUCT MANUFACTURING FACILITIES AND TO RETAIL MARIJUANA STORES, BUT NOT TO CONSUMERS. (l) "MARIJUANA TESTING FACILITY" MEANS AN ENTITY LICENSED TOANALYZE AND CERTIFY THE SAFETY AND POTENCY OF MARIJUANA. (m) "MEDICAL MARIJUANA CENTER" MEANS AN ENTITY LICENSED BY A STATE AGENCY TO SELL MARIJUANA AND MARIJUANA PRODUCTS PURSUANT TO SECTION 14 OF THIS ARTICLE AND THE COLORADO MEDICAL MARIJUANA CODE. (n) "RETAIL MARIJUANA STORE" MEANS AN ENTITY LICENSED TO PURCHASE MARIJUANA FROM MARIJUANA CULTIVATION FACILITIES AND MARIJUANA AND MARIJUANA PRODUCTS FROM MARIJUANA PRODUCT MANUFACTURING FACILITIES AND TO SELL MARIJUANA AND MARIJUANA PRODUCTS TO CONSUMERS. ATTACHMENT 1 13 of 76 Marijuana LegisLation iMpLeMentation By Rachel Allen, Colorado Municipal League staff attorney, and Kevin Bommer, deputy director Important actIon Item for munIcIpalItIes: By oct. 1, municipalities must enact a local ordinance as described in the “Local Ordinance” section on page 2 of this document unless the governing body of the municipality opts out of retail marijuana pursuant to provisions in Amendment 64. CML will draft a boilerplate ordinance and collect samples that will be available upon request. It also will be available at www.cml.org/marijuana.aspx. introduction In November 2012, Colorado voters passed Amendment 64 to the Colorado Constitution, legalizing the personal use and possession of marijuana for adults 21-years-of-age and older, as well as allowing for the retail sale, cultivation, and testing of marijuana and the production of marijuana-infused products. Gov. John Hickenlooper assembled the Amendment 64 Implementation Task Force on Dec. 10, 2012, in Executive Order B2012-004. The task force was asked to identify the legal, policy, and procedural issues that needed to be resolved, and to offer suggestions and proposals for legislative, regulatory, and executive actions necessary for the effective and efficient implementation of Amendment 64. The task force met for two months and delivered its final report on March 13. Late in the 2013 legislative session, the Colorado General Assembly passed legislation to implement the licensing and regulatory framework for retail marijuana establishments, as well as legislation submitting a single question to voters to implement state sales and excise taxes. This paper is intended to be a general introduction to the constitutional amendment, state legislation, upcoming regulatory actions by the state, and some of the options municipalities have to regulate local retail marijuana operations. It is not intended as an exhaustive legal analysis, and it should not serve as a substitute for advice from your municipal attorney. state legislation Three predominant bills encompass the state marijuana law pertaining to retail marijuana regulation and taxation: • The duties of the state licensing authority and the manner in which it interacts with local jurisdictions is established in Part 2. A state license will be conditionally approved within 45 and 90 days, provided the applicant meets state licensing standards, but the state license only becomes operational upon approval from the local jurisdiction. A RMJ establishment cannot operate legally without both a state license and local approval, in whatever form that approval is granted as chosen by the local jurisdiction. • Once the conditional license has been issued, local jurisdictions are required to acknowledge to the state licensing authority whether or not the application is either approved or denied by the local jurisdiction. There is no time frame established in the statute under which this approval or denial must occur. • Definitions and appropriate limitations are created on each of the four state license types under Amendment 64. • Numerous unlawful acts related to state licensure are established. There are numerous other provisions in the bill. It is important to note that, consistent with Amendment 64, local governments may adopt ordinances and regulations that are more restrictive as long as they do not conflict with Amendment 64, state statutes, or state rules. Municipalities that do not choose to opt out will need to consider the manner in which they will approve or deny any state application for an establishment. While there is no requirement to have a local license, the decision to require establishments to meet local licensing requirements provides an additional element of local control, especially as it relates to enforcement. (In the Colorado Liquor Code, there are some types of licenses — such as limited winery licenses and manufacturers’ licenses — that may be issued without local government approval, and CML occasionally fields complaints and concerns from members about a lack of local control on the establishments. Several municipalities requested HB 13-1317 clearly establish the option for a local licensing requirement to maintain a clear local interest in RMJ establishments within their A local license in this scenario is different than a local license that may be required by a local jurisdiction as part of dual state and local licensing. The former scenario is in lieu of the state’s license, and the latter (described in more detail below) is in conjunction with a state license. To maintain harmony with the apparent intent of Amendment 64, local governments that want to prohibit the operation of any or all of the retail marijuana licenses should adopt an ordinance to do so prior to Oct. 1, and in a manner consistent with the language of Amendment 64. Moratoriums should be worded sufficiently to apply enough force of law to be recognized as the “opt-out” allowed by Amendment 64. While a retail marijuana business cannot become operational without local approval, the only guarantee against the state processing any applications for state licenses within jurisdictions that do not want them is to choose to prohibit retail marijuana operations via ordinance. Only the governing body can opt its jurisdiction out prior to Oct. 1, as well as any time thereafter. Initiated or referred questions to opt out cannot be voted on until November 2014, or any even year thereafter. Referenda, initiatives, and referred questions to opt back into Amendment 64 are not prohibited or restricted by Amendment 64 and can apparently occur at any time.4 options permitted under the constitution In conjunction with the adoption of the required ordinance mentioned above, Amendment 64 also permits local ordinances governing local fees, local regulations, and the time, place, manner, and number of marijuana establishments within a city or town.5 fees While the constitution allows the establishment of application, operating, and licensing fees, only the operating fee may be collected by the local government unless the state fails to enact rules by July 1 or fails to act upon an individual state license 4 Id. at § 16(5)(f). 5 Id. application within 90 days.6 Operating fees, while not defined in Amendment to existing medical marijuana licensees who seek to convert to or add a retail marijuana license? 10. Whether to impose spacing restrictions? a) for retail marijuana stores, or for other classes of state licensing as well? b) carry forward any existing spacing requirements currently imposed upon medical marijuana centers? c) carry forward any existing grandfathering provisions currently enjoyed by medical marijuana centers and cultivators under previous city licensing and zoning laws? d) adopt new forms of spacing requirements to be applied to retail marijuana establishments? 11. Whether to impose other location restrictions on retail marijuana establishments through zoning or otherwise, e.g., by identifying specific zone districts in which retail marijuana establishments are or are not allowed? 12. Whether to impose special restrictions on signs and advertising? a) defer to state restrictions? b) carry forward restrictions previously imposed on medical marijuana centers and apply the same to retail marijuana establishments? c) adopt new restrictions? 13. To the extent a municipality establishes a local licensing and regulatory regime, what is an appropriate annual “operating fee” to impose upon licensed retail marijuana establishments? 14. Whether board or council members want to allow retail marijuana businesses to exist in the municipality at all if the state defaults on its licensing and regulatory responsibility by failing to adopt necessary regulations by July 1, 2013; or, failing to act on any license application, the state licensing authority receives within 90 days? 15. In general, any implementing ordinance allowing retail marijuana establishments to exist should reports of co-ops and mobile marijuana delivery services have emerged after the passage of amendment 64. Does the legislation curb these activities? Co-ops, and mobile delivery of marijuana are prohibited.11 Municipalities may be better served by enacting clearer local prohibitions in zoning ordinances or other local land use and regulatory tools. social clubs (where adults gather in a commercial space to consume but not sell marijuana) have become another recent concern. What options do local governments have to regulate these? The state legislation prohibits on-site consumption in licensed establishments,12 and language added to HB 13-1317 late in the session is largely insufficient to effectively prohibit social clubs. Some municipalities have regulated private cannabis clubs with local ordinances under their land use authority. can a person be charged with stoned driving, similar to DuI? Yes. In addition to existing laws prohibiting driving under the influence, the legislature passed a “driving under the influence of drugs” (DUID) bill this session, specific to marijuana, which creates a “permissive inference” of intoxication if a person tests positive for five or more nanograms of active THC.13 can adults use marijuana while operating a motor vehicle or possess an open container? No, the open container law has been amended to include marijuana in addition to alcohol.14 Does the clean Indoor air act apply to marijuana smoking in addition to cigarette smoking indoors? Yes, the Clean Indoor Air Act was amended to prohibit marijuana smoke in an identical manner to the existing prohibition on cigarette smoke.15 11 C.R.S. 12-43.4-901(4)(c) and (h) (2013). 12 Id. at § 12-43.4-901(4)(c). 13 C.R.S. 42-4-1301 (2013). 14 C.R.S. § 42-4-1305.5 (2013). 15 C.R.S. § 25-14-203 to 204, et seq. (2013). Do the same 1,000-foot distance requirements from a school; an alcohol or drug treatment facility; Municipality Action Taken on Amendment 64 Medical Marijuana Growing Regulations Incorporation Vote in Favor of Amend. 64 Aurora Ordinance to Comply with Amendment 64 age, grow, and possession provisions; Moratorium on applications until 5/5/2014 prohibited N/A Home Rule Adams 56%; Arapahoe 52.8%; Douglas (45.4%) Berthoud Prohibition of marijuana cultivation, product manufacturing, testing facilities and retail marijuana stores allowed N/A Statutory Town Larimer 54.6%; Weld 50.2% Boulder Evaluating recreational marijuana allowed N/A Home Rule 66.1% Broomfield Prohibition of the operation of marijuana establishments prohibited N/A 52.8% Carbondale Moratorium on the establishment of any new medical or retail marijuana facility to 12/11/2013 allowed N/A Home Rule 56.8% Castle Rock Ordinance to comply with Amendment 64 age and possession provisions prohibited N/A Home Rule Town (45.4%) Centennial A moratorium to 09/30/2014 on the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, retail marijuana stores, and marijuana clubs; Ordinance regulating the manner in which marijuana is grown for personal use, prohibiting the operation of certain marijuana enterprises, and prohibiting marijuana on city owned or leased property. prohibited N/A Home Rule 52.8% Colorado Springs Prohibition on all retail marijuana sales. allowed N/A Home Rule City Denver Informally voted to move forward in regulating licensure of retail marijuana. (6/4/2013) allowed Home Rule City Dillion Moratorium on the submission, acceptance or processing of applications and the licensing, permitting, establishment or operation of any recreational marijuana business to 10/01/2013. prohibited N/A Home Rule 69.2% Eaton Prohibition of marijuana cultivation, product manufacturing, testing facilities and retail marijuana stores Englewood Prohibition of the operation of marijuana establishments, put to a citizen vote for the November 5, 2013 election as an advisory question allowed N/A Home Rule 52.8% Erie Moratorium on the submission, acceptance or processing of applications and the licensing, permitting, establishment or operation of any recreational marijuana business to 10/01/2013. prohibited N/A Statutory Town Boulder 66.1%; Weld 50.2% ATTACHMENT 3 19 of 76 Municipality Action Taken on Amendment 64 Medical Marijuana Growing Regulations Incorporation Vote in Favor of Amend. 64 Estes Park Moratorium on marijuana establishments until 10/1/2013 prohibited Statutory Town Evans Prohibition of marijuana cultivation, product manufacturing, testing facilities and retail marijuana stores prohibited Home Rule City Ft. Morgan Moratorium on the operation of marijuana establishments pursuant to Amendment 64 to 2/31/2013. prohibited N/A Home Rule (42.3%) Garden City Awaiting guidance allowed Statutory Town Greenwood Village Prohibition of any marijuana cultivation facility, marijuana product manufacturing facility, marijuana testing facility, or retail marijuana store or marijuana club; Regulation of the personal cultivation, possession, and use of marijuana; Banned marijuana on sidewalks and public streets prohibited Developing ordinance regarding home growing to address mold & fire concerns Home Rule 52.8% Greeley Prohibition of any marijuana cultivation facility, marijuana product manufacturing facility, marijuana testing facility, or retail marijuana store. allowed Home Rule 50.2% Gunnison Ordinance to comply with Amendment 64 age, grow, and possession provisions; Prohibition of any marijuana cultivation facility, marijuana product manufacturing facility, marijuana testing facility, or retail marijuana store. prohibited N/A Home Rule City 67.3% Johnstown Prohibition of marijuana cultivation, product manufacturing, testing facilities, and retail marijuana stores. prohibited N/A Home Rule Larimer 54.6%; Weld 50.2% Larimer County allowed Lafayette Moratorium on the submission, acceptance or processing of applications and the licensing, permitting, establishment or operation of any recreational marijuana business to 10/01/2013. allowed N/A Home Rule 66.1% Lakewood Moratorium on the licensing, permitting, establishment, or operation of any new marijuana enterprise to 01/01/2014 N/A Home Rule 53.7% Longmont banned marijuana‐related businesses from the city limits; ban marijuana clubs prohibited N/A Home Rule City Loveland prohibited N/A Home Rule City Louisville Moratorium on retail marijuana establishments allowed Home Rule 66.1% Municipality Action Taken on Amendment 64 Medical Marijuana Growing Regulations Incorporation Vote in Favor of Amend. 64 Lyons Moratorium on the licensing, permitting, establishment, or operation of any new marijuana enterprise to 10/01/2013; Moratorium on the licensing, permitting, establishment, or operation of any new business that sells, cultivates, or tests marijuana or any marijuana products, or any marijuana enterprise to 10/01/2013. N/A Statutory Town Northglenn Decision pending on retail stores allowed N/A Home Rule Adams 56%; Weld 50.2% Steamboat Springs Moratorium on any business that permits or invites private assembly for the purpose of the use or consumption in any manner of marijuana or marijuana products in any form to 05/05/2013. allowed N/A Home Rule 62.9% Timnath Prohibition of marijuana cultivation, product manufacturing, testing facilities and retail marijuana stores, and marijuana clubs. prohibited N/A Home Rule Town Vail Moratorium on the operation of marijuana establishments pursuant to Amendment 64 to 08/06/2013. prohibited N/A Home Rule 66.5% Westminster Prohibition on retail sale, distribution, cultivation and dispensing of recreational marijuana through marijuana establishments and optional premises cultivation operations; Ordinance to comply with Amendment 64 age, grow, and possession provisions. prohibited N/A Home Rule Adams 56%; Jefferson 53.7% Wellington Ordinance to prohibit retail cultivation, retail manufacturing, retail testing, and retail stores. prohibited N/A Statutory Town Windsor Prohibition of the operation of any marijuana business enterprise within the meaning of Amendment 64; Prohibition of the establishment and operation of private marijuana clubs. prohibited N/A Home Rule Larimer 54.6%;Weld 50.2% 21 of 76 1 1 Amendment 64 and Local Implications City Council Work Session July 30, 2013 2 Direction Sought 1. Does Council need additional information to make a decision as to whether to ban or regulate retail marijuana? If so, what information? 2. If retail operations are allowed, what regulatory concerns would Council like staff to address? 3. Is Council interested in submitting a sales tax option to the voters? ATTACHMENT 4 22 of 76 2 3 Amendment 64 Overview Provides for Legislature to adopt a system for licensing marijuana businesses defined in the Amendment. Does not amend existing medical marijuana laws. Does not amend Federal prohibition. 4 Types of Businesses • Retail Store- May purchase marijuana/ products and sell to the public. • Manufacturing Facility- May purchase marijuana for the manufacture, preparation, and packaging of marijuana products. May not sell to the public. • Testing Facility- Analyze and certify the safety and potency of marijuana. • Cultivation Facility-May cultivate, prepare, and package marijuana for sale to a retail store or manufacturer. May not sell to the public. 23 of 76 3 5 Amendment 64 Overview Allows Municipalities three options: • Prohibit retail marijuana businesses by ordinance. • Refer a retail marijuana prohibition question to the voters. (Nov. 2014) • Impose local restrictions on the time, place, manner and number of retail marijuana operations. 6 Amendment 64 Overview • Treats marijuana similar to alcohol. • Over 21, person may possess up to 1 ounce without medical permission. • Allows individuals to grow up to 6 plants in an enclosed, locked space. 24 of 76 4 7 Current Status • The state adopted emergency rules by July 1, 2013. • These rules will expire in October 2013 but are meant to be a place holder. • The state anticipates having final rules by January 2014. • State can begin accepting applications on October 1, 2013. 8 Next Steps Amendment 64 has always allowed for local government to opt-out entirely or opt-in and enact local regulations. Should a local government opt-in they must adopt an ordinance addressing licensing by October 1, 2013. 25 of 76 5 9 Opt-Out Options Two means of opting out: – Ban by ordinance. – Refer a prohibition question to the voters in November 2014. 10 Temporary Ban Options • If Council refers a measure to the November 2014 election. • If Council chooses to see whether voters approve additional taxes in November 2014. • If Council chooses to opt-in a temporary ban would allow time to create and adopt local regulations. 26 of 76 6 11 Opt-In Options • Set a temporary ban until a re-evaluation date in the future. • Allow some but not all of the types of retail establishments. • Allow only currently licensed medical marijuana licensees to convert to retail. 12 Opt-In Options • Limit the number of retail establishments allowed. • Adopt local zoning and land use requirements. • Set fees. • Pursue additional taxation. • Adopt local licensing procedures. 27 of 76 7 13 Direction Sought 1. Does Council need additional information to make a decision as to whether to ban or regulate retail marijuana? If so, what information? 2. If retail operations are allowed, what regulatory concerns would Council like staff to address? 3. Is Council interested in submitting a sales tax option to the voters? 14 Direction Sought BAN RETAIL BUSINESSES-Some or All  By Ordinance?  By Vote? (November 2014 ballot.) 28 of 76 8 15 Direction Sought ALLOW SOME OR ALL RETAIL BUSINESSES Includes Retail, Cultivation, Manufacturing, Testing  Utilize State regulations and adopt additional local regulations?  Adopt a temporary ban on retail establishments until: • Council has adopted local regulations. • It is determined whether voters approve a sales tax in November 2014. • Other? 29 of 76 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 WORK SESSION July 30, 2013 (after the City Council Work Session) 1. Call Meeting to Order. 2. The Role of the Urban Renewal Authority to Carry out the Mission and Implement the Policies Within City Plan. (staff: Bruce Hendee, Josh Birks, Tom Leeson; 1 hour discussion) The three different roles the Urban Renewal Authority (URA) can play to support the redevelopment of targeted areas include, React, Promote and Initiate. The various roles the URA takes are directly related to its strategy to carry out the goals and policies in City Plan with respect to redevelopment. The extent to which the Board engages in these roles is a policy decision and should be discussed by the Board. Additionally, there is a relationship between the role the URA takes with a certain project and the purpose of the financial assistance that also influences how the URA achieves its mission. 3. Urban Renewal Policies Relating to Energy Efficiency Requirements and Recycling/Reuse of Demolition and Construction Waste Materials. (staff: Bruce Hendee, Josh Birks, Tom Leeson; 1 hour discussion) Consideration of the March 27, 2013 Urban Renewal Authority (URA) Board resolution to require URA funded projects to participate in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds, was continued to allow for greater public outreach and discourse with interested parties. Subsequent to the March URA Board meeting, staff set up a working group of 30 of 76 July 30, 2013 community members and industry professionals to provide feedback on the proposed changes. The group supported the required participation in the Energy Star program; however, the group recommended the punitive aspect of withholding funds if the project does not meet the required score be removed. The working group also supported the required waste diversion from construction and/or demolition but suggested an allowance for “As-Built Surveys” to be submitted as evidence of non-compliance, require third-party verification, and to remove the punitive aspect of the policy. 4. Other Business. 5. Adjournment. 31 of 76 DATE: July 30, 2013 STAFF: Bruce Hendee, Josh Birks Tom Leeson Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS URBAN RENEWAL AUTHORITY SUBJECT FOR DISCUSSION The Role of the Urban Renewal Authority to Carry out the Mission and Implement the Policies Within City Plan. EXECUTIVE SUMMARY The three different roles the Urban Renewal Authority (URA) can play to support the redevelopment of targeted areas include, React, Promote and Initiate. The various roles the URA takes are directly related to its strategy to carry out the goals and policies in City Plan with respect to redevelopment. The extent to which the Board engages in these roles is a policy decision and should be discussed by the Board. Additionally, there is a relationship between the role the URA takes with a certain project and the purpose of the financial assistance that also influences how the URA achieves its mission. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Based on the goals and policies within City Plan related to redevelopment, does the URA Board agree these are the appropriate roles for the URA? 2. Does the URA Board support the URA initiating projects in an effort to be more strategic in terms of achieving the community’s redevelopment goals? BACKGROUND / DISCUSSION The Fort Collins Urban Renewal Authority (URA) mission is to “remedy blight, using Tax Increment Financing, to leverage private capital investment, and stimulate sustainable development and public improvement projects.” The URA mission is supported by, and takes direction from the policies contained within the City’s adopted comprehensive plan related to redevelopment and infill development. The role the URA takes to carry out the mission and implement the policies within City Plan is the topic of discussion for this work session. The URA, through the use of Tax Increment Financing (TIF), can engage in different roles to accomplish the stated policies. In general, there are three different of roles the URA can play to support the redevelopment of targeted areas: 1. React. In certain circumstances it may make sense for the URA to react to the real estate market and allow the market to dictate the outcome. Appropriate times for a reactionary role for the URA might be if there is enough momentum in the real estate market such that 32 of 76 July 30, 2013 Page 2 redevelopment is occurring without any other effort by the URA; or in the very early years of a TIF district to gauge the market’s desire for redevelopment. In a reactionary role, the URA would establish the parameters for financial assistance, and endorse plans for desired land use patterns and redevelopment efforts. In general, the URA would respond to redevelopment proposals and provide financial assistance only when requested by the private sector. Examples of successful URA projects in which the URA played a reactionary role include the North College Marketplace development, Jax Outdoor Gear expansion, Valley Steel, and the Aspen Heights student housing project. In all of these cases, the URA responded to the requested financial assistance and provided only the minimum assistance. 2. Promote. The URA, at times, has been active in promoting redevelopment projects and actually endorsing proposals. A role in which the URA promotes redevelopment efforts is a more active role in which the URA fosters a preferred market outcome, as opposed to just reacting to market forces. Appropriate times for the URA to promote projects might be when a project is a catalyst for an area and the preferred outcome is a priority for the community and/or a project will impact an area to such a degree that it would influence the outcome of future redevelopment projects. In a promotion role, the URA forms partnerships with the private sector as a way to develop mutually beneficial outcomes; promotes redevelopment opportunities as way to “market” certain areas; and actually participates in a project’s planning and approval process to influence future outcomes. Examples of successful URA projects in which the URA was engaged in promoting projects include the redevelopment of the Foothills Mall, the Summit student housing project, and the Rocky Mountain Innosphere. In all of these cases, the URA played an active role with respect to certain preferred outcomes related to site planning, design, and land uses. There was a significant amount of collaboration with the private sector and a strong sense of partnership. 3. Initiate. To initiate projects, the URA would actually generate proposals and engage in shaping the market outcome. A role in which the URA initiates redevelopment efforts is the most active role with regards to achieving the City Plan goals and policies for targeted redevelopment efforts. Appropriate times for the URA to initiate projects might be when a project involves public infrastructure upgrades or replacements that are necessary for an area to redevelop; acquisition of a key property to ensure preferred market outcome; or to deliver land uses to the market the private sector may not be able to deliver, such as affordable housing. The URA has initiated projects that involved infrastructure improvements on public property, such as the North College Road improvements and the NECCO stormwater improvements. There could be circumstances, however, when the URA might want to acquire private property in order to control the market outcome, or to partner with private sector to develop certain preferred uses. 33 of 76 July 30, 2013 Page 3 The various roles the URA takes on projects is presented to provide the Board with an understanding of how the URA can be strategic in its actions to carry out the goals and policies in City Plan with respect to redevelopment. While each role has its place depending on the circumstances, it is evident the URA has greater ability and influence on preferred outcomes (as stated in City Plan) if it engages in a Promote or Initiate role. The extent to which the Board engages in these roles is a policy decision and should be discussed by the Board. URA Roles and Purpose of Assistance During the May 14, 2013 work session, the Board discussed the three types of situations where it is appropriate for the URA and the City to assist in closing a financial gap and provide tax increment financing assistance. These three circumstances include: • When conditions on the site make private market rate redevelopment impossible, so providing TIF assistance helps to create a project that would not otherwise happen. • When conditions on the site make the timing of market rate redevelopment uncertain, so providing TIF assistance accelerates the timing of a project. • When conditions on the site are such that the likely market rate redevelopment outcome is not desirable, so providing TIF assistance enhances identified objectives in City Plan. There is a relationship between the role the URA takes with a certain project and the purpose of the assistance that is important to present. For instance, projects such as the Jax expansion or the Valley Steel infrastructure upgrades were provided assistance to help create a project that would not otherwise happen; however, the URA played a reactionary role in the sense of responding to the requests and providing a minimum amount of assistance. Compare these projects to the Foothills Mall redevelopment in which the URA provided assistance as means of accomplishing all three purposes (create, accelerate, and enhance), and the URA acted much more as a partner with the private sector as a strategy to achieve certain community goals. In this example the URA was engaged in a “promote” role. Table 1: Purpose of Assistance/URA Role Relationship Purpose of Assistance Enhance • North College Marketplace • RMI • The Summit • Foothills Mall Accelerate • North College Marketplace • Valley Steel • Aspen Heights • Foothills Mall • North College Road Improvements Create • Jax • RMI • The Summit • Foothills Mall • NECCO React Promote Initiate URA Role This relationship between the purpose of the assistance and the URA role is presented to further provide the Board with examples of how the URA can be strategic in its actions to carry out the goals and policies in City Plan. A project that falls within the Create/React realm requires less in 34 of 76 July 30, 2013 Page 4 terms of expected public benefit and URA resources than a project within the Enhance/Initiate. However, a project that is initiated by the URA allows the URA to be more strategic in terms of achieving the community’s redevelopment goals. A discussion around these differences could assist staff in identifying how best to operationalize the review and processing of different types of URA projects. Additional Considerations with Respect to URA Role The role the URA takes to achieve the policies and goals of City Plan influences larger policy decisions, such as the creation of new urban renewal areas in targeted redevelopment areas (as described in City Plan), the creation of new tax increment financing districts within established urban renewal areas, as well as how the URA provides financial assistance (i.e., bonding vs. reimbursement based on collected increment). While the specifics of the these policy decisions do not need to be discussed during this work session, the comfort level with the various roles helps to inform the preferred direction of the Fort Collins URA and the strategies available to achieve the redevelopment goals of the City. ATTACHMENTS 1. Powerpoint presentation 35 of 76 1 Fort Collins URA Work Session – URA Role in Redevelopment Strategy July 30, 2013 ATTACHMENT 1 36 of 76 2 URA Mission “Remedy blight, using Tax Increment Financing, to leverage private capital investment, and stimulate sustainable development and public improvement projects.” • Mission takes direction from the City Plan policies related to redevelopment and infill development 37 of 76 3 Targeted Redevelopment and Infill 38 of 76 4 URA Roles URA can engage in different roles to accomplish the stated policies. Each role requires different strategies and resources. Each role has different policy implications. 39 of 76 5 Role of URA Market Dictates Outcome React Promote Initiate Responds to Proposals Endorses Proposals Creates Proposals Foster Preferred Market Outcome Engage in Market Outcome Provide Assistance Establish Parameters Plan for Future Outcomes Form Partnerships Promote Opportunities Participate in Future Outcomes Acquire Property RFPs Implement Future Outcomes 40 of 76 6 Role of URA – Project Examples React Promote Initiate North College Marketplace JAX Expansion Valley Steel Aspen Heights Foothills Mall The Summit RMI N. College Road Improv. NECCO Stormwater 41 of 76 7 Role/Purpose Relationship Promote Initiate Create Accelerate Enhance Projects fall somewhere along continuum URA Role Purpose of Assistance 42 of 76 8 Example Projects Promote Initiate Create Accelerate Enhance URA Role Purpose of Assistance Valley Steel NC Marketplace NC Marketplace Aspen Heights Jax The Summit NC Road Improvements The Summit Foothills Foothills Foothills RMI RMI NECCO 43 of 76 9 Additional Considerations Roles influence larger policy decisions: • Creation of new urban renewal areas • New TIF districts • Financial Assistance package 44 of 76 10 Direction Sought • Based on the goals and policies within City Plan related to redevelopment, does the URA Board agree these are the appropriate roles for the URA? • Does the URA Board support the URA initiating projects in an effort to be more strategic in terms of achieving the community’s redevelopment goals? 45 of 76 DATE: July 30, 2013 STAFF: Bruce Hendee, Josh Birks Tom Leeson Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS URBAN RENEWAL AUTHORITY SUBJECT FOR DISCUSSION Urban Renewal Policies Relating to Energy Efficiency Requirements and Recycling/Reuse of Demolition and Construction Waste Materials. EXECUTIVE SUMMARY Consideration of the March 27, 2013 Urban Renewal Authority (URA) Board resolution to require URA funded projects to participate in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds, was continued to allow for greater public outreach and discourse with interested parties. Subsequent to the March URA Board meeting, staff set up a working group of community members and industry professionals to provide feedback on the proposed changes. The group supported the required participation in the Energy Star program; however, the group recommended the punitive aspect of withholding funds if the project does not meet the required score be removed. The working group also supported the required waste diversion from construction and/or demolition but suggested an allowance for “As-Built Surveys” to be submitted as evidence of non-compliance, require third-party verification, and to remove the punitive aspect of the policy. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Is there support for moving forward with a resolution to amend the evaluation criteria for URA funded projects to require participation in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds? 2. If there is support for the policy change, does the URA Board support the working group’s recommendations? BACKGROUND / DISCUSSION On March 27, 2013 the URA Board reviewed a resolution to amend the evaluation criteria for URA funded projects to require 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 would have required URA funded projects to demonstrate that at least 50% of the waste materials by weight (excluding wastes containing lead, asbestos or other hazardous material) generated by a construction or demolition project be diverted from the landfill through waste management options, such as reuse or recycling (Attachment 1). While there was some discussion and questions regarding the content of the resolution, much of the discussion was about public outreach. The Board ultimately continued the item to allow for greater public outreach and discourse with interested parties. 46 of 76 July 30, 2013 Page 2 Subsequent to the March URA Board meeting, staff set up a working group of community members and industry professionals to provide feedback on the proposed changes (Attachment 2). The group met on three occasions and provided their perspective and some recommendations on the proposed policy changes (Attachment 3). In addition to the public outreach, the continuation allowed staff to evaluate existing City buildings, as well as a previous URA project with regards to the Energy Star rating (See Attachments 4 and 5 for the Energy Star Ratings). Energy Efficiency Requirements The URA working group’s discussion about the EPA’s Energy Star program as it relates to URA projects predominately centered on three main topics: the potential increase in costs associated with the program, the difficulty in monitoring projects that property owners don’t fully control; and, the uncertainty of receiving TIF reimbursement a year after project completion. In terms of additional costs, it was demonstrated that buildings designed to meet the Energy Star rating typically do not cost more. This is because the Energy Star scoring systems compares proposed buildings to a national survey of buildings conducted in 2003. Most buildings are required to meet energy codes newer than 2003, so in most cases proposed buildings compare favorably. As a result, experience shows that meeting Energy Star does not increase construction costs. The power in the program is getting designers and developers to consider energy use during the design phase so adjustments can be made, as well as the 12-month monitoring period, which provides important feedback about the building operation and user behavior. The second and third topic discussions, while distinct, were related as they both dealt with the requirement to monitor energy use for a year after completion in order to meet the Energy Star designation. The proposed policy requires that, in addition to designing a building to meet the Energy Star label, the energy use shall be monitored for 12 consecutive months after completion to demonstrate the operating building earns an EPA rating of 75 or higher. The concern was two-fold: in cases where property owners/developers lease tenant spaces, they don’t always have control over energy use, so the 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. After much discussion, the group supported the Energy Star program, as well as the requirement to monitor buildings for 12-consecutive months; however, the group recommended that the punitive aspect of withholding funds if the project does not meet the required score be removed. In general, the group felt the policy would be better received and more successful if it was not complicated by the added uncertainty of withholding funds. However, the energy efficiency requirement would be included within the project’s redevelopment agreement and the URA could enforce compliance without withholding funds. 47 of 76 July 30, 2013 Page 3 Deconstruction/Construction Waste Recycling Requirements The URA working group’s discussion about the deconstruction/construction waste recycling requirements as it relates to URA projects predominately centered on three main topics: the one-size fits all nature of the policy; the difficulty with monitoring compliance; and the punitive aspect of the policy. With regards to the one-size fits all aspect of the policy, there was concern raised that certain projects may or may not be able to meet the 50% threshold due to construction type or other characteristics, but the policy, as written, does not allow for any deviation regardless of circumstance. It was suggested the policy include a provision that allows an “As-Built Survey” to be submitted if a property owner feels the diversion threshold could not reached; however, the project would need to meet whatever the survey indicated was feasible. An “As-Built” survey would estimate the amount of different materials within a building and estimate the amount of the materials that could be recycled. An “As-Built Survey” could be conducted by any competent architect, engineer, or construction manager, or by such organizations as the Institute for the Built Environment, National Center for Craftsmanship, or the non-profit Waste-Not. Anyone conducting an “As-built Survey” would need to be pre-approved by the City/URA and have no connection with the proposed project. With regards to monitoring compliance, the group discussed the difficulty of actually verifying diversion rates. The numbers associated with construction waste loads can easily be manipulated, and diversion by weight needs to be verified by a third-party. Without third-party verification, the program may not actually achieve the goals intended. While the mechanics would still need to be figured out, if third-party verification is required, the developer/property owner would be required to contract with a URA approved “vendor” who would then provide verification to the URA. Finally, similar to the Energy Star program, the group had concerns with the punitive nature of the recycling policy. The potential of having funding withheld if the project does not meet the diversion threshold complicates project financing and makes a relatively uncertain process even more uncertain. The group recommended any punitive aspect of the policy be removed. ATTACHMENTS 1. March 27, 2013 URA Board Meeting Minutes 2. URA Working Group Member List 3. URA Working Group Meeting Notes 4. City Buildings – Energy Star Rating 5. Valley Steel Energy Star Rating 6. Natural Resources Advisory Board Recommendation 7. Air Quality Advisory Board Recommendation 8. Powerpoint presentation 48 of 76 March 27, 2013 Resolution No. 053 Adopting Revised Policies and Procedures for the Urban Renewal Authority, Postponed Indefinitely The following is the staff memorandum for this item. “EXECUTIVE SUMMARY As a follow up to the February 28, 2013 URA Board work session, this Resolution amends the adopted 2012 URA Policies and Procedures. As an alternative to required participation in IDAP, the amended Policies require participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for new buildings and major renovations. Additionally, in an effort to meet the City of Fort Collins established goal of diverting 50% of the community waste from landfills, the amended Policies also requires URA funded projects to demonstrate that at least 50% of the waste materials by weight (excluding waste containing lead, asbestos or other hazardous material) generated by a construction or demolition project be diverted from the landfill through waste management options, such as reuse or recycling. The Resolution also delegates the authority to approve Administrative Procedures with the Executive Director, and includes some minor language changes for clarification purposes. BACKGROUND / DISCUSSION Energy Efficiency Requirements During the October 23, 2012 URA Board meeting, it was recommended that URA projects be required to participate in the Fort Collins Utilities Integrated Design Assistance Program (IDAP) as an alternative to requiring buildings to meet a LEED certification. Since that time, City Utilities has moved forward to redesign IDAP as a performance-based program in alignment with the Architecture 2030 Challenge, a program with a path to carbon neutral buildings by 2030. The new IDAP will require a significant commitment from property owners in terms of monitoring and program compliance and would be very difficult to achieve without willing property owners that are dedicated to the outcome. As an alternative to required participation in IDAP, it is recommended the Board consider requiring participation in the EPA’s Energy Star program and the Target Finder system to set energy targets for 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). The program utilizes energy use targets based on actual building energy consumption data for more than a dozen building types. 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 Target Finder is a comprehensive look at a building’s potential energy use as it takes into account building size, climate, operating hours, number of occupants, computer use, and occupant behavior. 199 URBAN RENEWAL AUTHORITY MINUTES ATTACHMENT 1 49 of 76 March 27, 2013 As a policy decision, the Board could choose to require URA projects that include new buildings, or major renovations to meet the Designed to Earn the Energy Star certification. While this requirement would be a major step in bringing energy use and efficiency to the forefront during the design phase, this level of participation does not require that new buildings actually perform at the designed target levels. The Board could choose to require that new buildings achieve the Energy Star label. Closing the loop between the design's intended energy use and the building's actual performance requires the commitment of the owner to earn the Energy Star label after the project is built and operating. An operating building that earns an EPA rating of 75 or higher for 12 consecutive months of energy bills and receives verification by a professional engineer or registered architect that the building meets indoor environmental standards qualifies to earn the Energy Star label. This step solidifies that the design intent has been translated into the building's actual performance. The following flow chart demonstrates the necessary process to obtain Design to Earn Energy Star versus obtaining and Energy Star label. Source: EnergyStar.gov 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 but not require any target energy performance level. The current code requires energy assessments prior to building alterations with valuations of $30,000 or greater, and requiring energy performance to be monitored will go a long way in bringing awareness of energy use and efficiencies to building owners. It should be noted that requiring new buildings and major renovations to achieve an Energy Star label will add cost to the design phase of a project. The design phase is considered a soft cost and represents a small percentage of overall project costs. Given the requirements in current building codes, meeting Energy Star label should not add any additional costs to overall hard costs. The advantage of the program is that it is focused on ensuring building systems are designed correctly and appropriately for the intended users, that system commissioning is carried out (currently a code requirement) and that monitoring take place over an extended period of time. Based on the discussion above, staff is recommending the following URA Policy: All URA projects that include new construction or major renovations of existing buildings (more than 50% of square footage affected) shall be required to meet the Energy Star label. Such projects 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 shall be monitored for 12 consecutive months to demonstrate the operating building earns an EPA rating of 75 or higher 200 50 of 76 March 27, 2013 in Portfolio Manager and verification shall be received by a professional engineer or registered architect that the building meets indoor environmental standards and qualifies to earn the Energy Star label. Additionally, 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 With the adoption of the green building amendments, all new construction is required to submit a construction waste recycling plan with the intent of diverting construction waste from the landfill. The program focuses on the materials in which the City has capacity to receive, which includes wood, metal, concrete, and cardboard. The current program does not apply to alterations. The requirement for a construction waste recycling plan addresses the waste material generated during the construction process, but does not address materials associated with the demolition of existing structures. As articulated in both City Plan and the Fort Collins Climate Action Plan, the City of Fort Collins established a goal to divert 50% of the community waste from landfills. As redevelopment occurs through the City of Fort Collins, a significant amount of material from demolished structures can be diverted from the landfills by ensuring structures are deconstructed, as opposed to demolished. Deconstruction is the process of systematically dismantling a structure in an environmentally, economically and socially responsible manner, aiming to maximize the recovery of materials for reuse and recycling. Deconstruction is commonly separated into two categories; "non-structural" and "structural". Non-structural deconstruction, also known as “soft-stripping”, consists of reclaiming non-structural components including appliances, doors, windows, and finish or trim materials. Structural deconstruction involves dismantling the structural components of a building; removing the entire building down to or including the foundation. Deconstruction, as a process, is more time consuming than standard demolition, and is generally more expensive. However, many of the additional costs associated with deconstruction can be reduced when taking into account reduced disposal costs, avoided purchases of new materials (if materials are re-used on site), revenue earned from material sales and potential tax incentives. Tax benefits can be obtained when materials are donated to a 501(c)(3), such as ReSource Fort Collins. Therefore, staff is recommending that all URA funded projects demonstrate that at least 50% of the waste materials by weight (excluding waste containing lead, asbestos or other hazardous material) generated by a construction or demolition project be diverted from the landfill through waste management options, such as reuse or recycling. 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 201 51 of 76 March 27, 2013 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. October 2012 URA Board Recommended Amendments During the October 23, 2012 URA Board meeting in which the Policy and Procedures were adopted, the Board requested staff to look at several sections and recommend possible language changes. The amendments, which are included within the attached redlined version of the policies, address the following policy sections: Section 2- Objectives • Presence of Floodplain language Section 4 – Evaluation Criteria • Financial Feasibility of Projects language Section 4 – Public Benefit • Affordable Housing as Public Benefit language. FINANCIAL / ECONOMIC IMPACTS The requirement for participation in the Energy Star program, as well as the required deconstruction/recycling of waste material may result in some additional costs to URA projects. While the additional costs may be eligible for reimbursement by tax increment financing, the additional costs could impact the financial feasibility of certain projects. Tax increment financing represents gap financing, meaning financing that covers the gap between a financially feasible project and non-financially feasible project. When Code requirements add costs to a project, in essence the gap becomes larger. This becomes a policy decision related to trade-offs for URA financing. As more of the tax increment is necessary to offset costs associated with Code requirements, less of the increment will be available for other improvements, such as required public infrastructure, that also contribute to the gap. 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 202 52 of 76 March 27, 2013 Given the relatively short period of time between the February work session and the Resolution adoption date, there has been less public outreach than is typical of similar policy changes. The following outreach effort shave been made: • URA Board Worksession - February 28 (Attachment 4) • Presentation to the Fort Collins Area Chamber of Commerce Local Legislative Affairs Committee – March 22 • Presentation to the Air Quality Advisory Board - March 18 • Agenda Item Summary provided to the Natural Resources Advisory Board and the Energy Board • Copies of proposed amendments sent to the North Fort Collins Business Association and the South Fort Collins Business Association. “ Bruce Hendee, Chief Sustainability Officer, introduced the item as the next step in the development of URA policies and procedures. Tom Leeson, Redevelopment Program Manager, stated staff has arrived at the green building recommendation for URA projects to fall under the guidelines of the Environmental Protection Agency’s Energy Star program, and its associated target finder system. He detailed the requirements for the program. Leeson stated the second aspect of the Resolution looks at deconstruction and recycling requirements for URA projects and establishes a threshold for landfill diversion. Hendee reviewed the positive components of the Energy Star program and stated there are some boards and commissions which have not yet been able to give a recommendation on this item. Ross Cunniff, 2267 Clydesdale, commended the environmental accountability found in the plan and requested the maximum public benefit from URA projects. He questioned the urgency of the need for this change. Ray Martinez, 4121 Stoneridge Court, questioned the urgency of the need for this change and suggested a more thorough public outreach process be completed prior to adoption of new policies. Eric Sutherland, 3520 Golden Currant, supported the changes to the policies and went on to discuss his perceived problems with the URA and its existing policies and procedures. Luke McFetridge, South Fort Collins Business Association President, encouraged additional public outreach be completed prior to adoption of new policies. Ron Lautzenheiser, North and South Fort Collins Business Association, suggested adoption of new policies should be slowed down and further vetted. Chair Weitkunat asked if deconstruction is impossible on some buildings. Leeson replied some buildings may have too many hazardous materials to achieve an effective deconstruction; however, deconstruction is generally an option. Boardmember Troxell asked if these items would apply to entire projects, despite the fact that the TIF funding may be going to infrastructure such as streets. Leeson replied the policies are currently written to apply to entire projects. 203 53 of 76 March 27, 2013 Boardmember Troxell asked if these requirements would be a part of the scorecard for projects. Leeson replied it would technically be, as it would be included within the evaluation criteria. Boardmember Troxell suggested additional feedback should be sought, though he commended the track the policies are on. Mayor Weitkunat asked if exceptions were considered, particularly in cases where the TIF funding is going to public improvements rather than the project per se. Leeson replied there has not been discussion about that; however, that is certainly up for discussion. Vice-Chair Ohlson noted new construction projects would only be subject to the energy component. Leeson replied the recycling policies also apply to construction waste in addition to demolition. Boardmember Troxell made a motion, seconded by Boardmember Kottwitz, to continue the item to a later date pending additional public outreach and testing against existing projects. Vice-Chair Ohlson disagreed that this has been a rushed process and stated the policies have been considerably weakened. He opposed the City’s overall view of public outreach in terms of outreach to business interests versus outreach to environmental interests. He stated the process should be more consistent. City Manager Atteberry stated he believed the public outreach process included many differing viewpoints; however, he noted he is committed to work further on the process with the new Council. Boardmember Manvel noted the mission of the URA involves sustainable development, and this is a small step toward that end. He stated the issue deserves a vote rather than postponement. Boardmember Poppaw stated she would not support the motion to postpone. Boardmember Kottwitz supported postponement of the item and stated the URA has worked hard at improving outreach. She expressed appreciation for staff work on the item. Boardmember Horak stated public outreach has been inconsistent as it is not a documented, systematic process; however, staff is working on development of such a process. He stated he would support the motion to postpone the item, but hoped it would ultimately pass with the new Council. Chair Weitkunat stated it is important to get the policies and direction of the URA right moving forward. Boardmember Horak asked about the date for taking up the issue again. City Manager replied staff has considered May 21 as a possible date. The vote on the motion to postpone consideration was as follows: Yeas: Weitkunat, Kottwitz, Horak and Troxell. Nays: Ohlson, Poppaw, and Manvel. THE MOTION CARRIED. 204 54 of 76 URA Policy Working Group Members Name Organization Phone Email Luke McFetridge South FC Business Association Jim Eddy North FC Business Association Ann Hutchinson FC Area Chamber Anita Comer Waste Not Recycling Dave Derbes Brinkman Partners Cara Blake Fort Collins Sustainability Group Neil Kaufman National Center for Craftsmanship Matt Arabasz RB+B Architects City of Fort Collins Staff Tom Leeson Redevelopment Manager 970.416.2231 tleeson@fcgov.com Bruce Hendee Chief Sustainability Officer 970-416-2332 bhendee@fcgov.com Mike Gerbo Chief Building Official 970-416-2618 mgebo@fcgov.com Gary Schroeder Sr. Energy Services Engineer 970-221-6395 gschroeder@fcgov.com Stu Reeve Building Energy Manager 970-221-6274 sreeve@fcgov.com ATTACHMENT 2 55 of 76 URA Policies Working Group Commons Conference Rm., City Hall April 17, 2013 12:00-1:30 PM Meeting Notes: Energy Star Discussion: • The building community has been able to quantify the impact of the green building code amendments at roughly $5/sf. The impact of Energy Star is unknown – need to try to determine the impact. • Need to try to benchmark existing buildings to determine how they would meet E-Star. This can be done relatively easy for City owned buildings – will look at trying to see how projects that have been approved through the URA previously would score. • New buildings probably meet E-Star easily because of the new code requirements; however, small renovations might be more difficult. Should the policy differentiate between new and renovations so the smaller projects are not overly burdened? • Need to recognize that there’s a difference between ownership and tenants in terms of monitoring. An owner with numerous tenants has less control over how a building/tenant space is utilized in terms of energy use. • There’s a difference in product type as well. Multi-family products operate very differently than retail. E-Star compares like products/building types, so product type has less impact on rating/score than one would think. • E-Star does not add too much cost. The power of the program is that it forces owners/designers to consider energy use early in the design stage. It is a relatively simple process (a couple hours) to input the information in the online program to generate the score. • The monitoring portion of the program is really the most important part. Having that data is very valuable in terms of being able to determine any disconnect between the design and the operation of a building. • Having to wait a whole year to monitor a building adds a significant amount of uncertainty to an already uncertain process. Perhaps the punitive nature of the policy could be scaled back. Deconstruction/Recycling Discussion • Diversion rate of 50% can easily be achieved, but the question is - are we achieving what we want with the policy. • Metal and concrete are already being recycled • Perhaps we should remove metal and concrete first and then have a recycling/reuse threshold. • Significant savings can be had with the tax credits, however, tax laws can be changed. • More detail is needed with this policy. 50% seems to be arbitrary. ATTACHMENT 3 56 of 76 Action Items • Look at feasibility of benchmarking existing buildings • Review policy to determine if differentiating smaller renovations is feasible • Research E-Star program with regards to different product types • Look at alternative to punitive measures if project does not meet E-Star rating 57 of 76 URA Policies Working Group Commons Conference Rm., City Hall April 30, 2013 12:00-1:30 PM Meeting Notes: Deconstruction/Recycling Discussion • In order for program to be successful there is a strong need for third party reporting • Tax incentives alone are enough to offset additional costs. Neil Kaufman indicated he would gather data to demonstrate.* • Concern about the one-size fits all approach. Due to time constraints and full deconstruction process may not be feasible – may need to go through hybrid process that is more waste diversion through recycling/reuse • Different building types and use drive variables in cost and time – any policy needs to take into account different processes for different building types/uses • Certain materials are going to be recycled anyway (i.e., concrete, steel copper, etc.) – these should not be considered waste. • What happens if a project doesn’t meet the 50% threshold – are we going to withhold funds? Punitive aspect is concerning. • Do we, as a community, even know if we are diverting 50% of the waste we are generating? Do we have this data? • Monitoring diversion rates is problematic as it is very difficult to actually verify compliance. Third-party monitoring would be very important. • National Center for Craftsmanship and Waste Not would rather see an incentive based program because it is easier to work with clients when they choose to go through the process • Could require 50% (by weight) diversion but include an exception clause that states that if an “As-Built Quantity Survey” demonstrates 50% would not achievable. • Neil Kaufman agreed to provide the group with an estimate of as-built quantity survey.* • It is important to provide the development community the impacts of such policies. *Additional information pending. 58 of 76 URA Policies Working Group Commons Conference Rm., City Hall May 10, 2013 12:00-1:30 PM Meeting Notes: Deconstruction/Recycling Discussion • Discussion centered on the need to know the net impacts of required deconstruction. The group was reminded that the current policy proposal was for a required recycling/reuse threshold and not deconstruction. • Neil Kaufman reviewed a handout demonstrating the potential return on investment for deconstruction projects following the National Center for Craftsmanship model. He emphasized the numbers are shown as an example and are not intended to show that it works all the time. • The group inquired as to the cost of quantity surveys to determine feasibility of recycling/reuse of building materials. A full-blown quantity survey could cost several thousand dollars; however, a full blown survey would not be required to determine feasibility. The cost would be significantly less although exact amount is unknown. • A comment was made that not all URAs are created equally in terms of time and money available. North College URA only has 16 years left, so has less money available. The more money required of a project due to policies/regulations, the less money that is available for public infrastructure and other needed improvements. • There was discussion regarding allowing any additional costs associated with recycling/deconstruction to be considered a cost that is eligible for reimbursement by the URA. It was emphasized that we should not set the bar too low in terms of recycling requirements and end up paying a premium (reimbursement). Energy Star Discussion • There was discussion about additional costs associated with implementing the Energy Star requirements. It was explained that the Energy Star scoring systems compares a proposed building to a national survey of buildings conducted in 2003. Most buildings are required to meet energy codes newer than 2003, so in most cases proposed buildings compare favorably. As a result, experience shows that meeting Energy Star does not increase construction costs. • The group was reminded that the monitoring aspect of the proposal is problematic because developers/property owners are not always in control of tenant spaces and therefore cannot control energy use. It would be difficult to punish a property owner/developer for circumstances they can’t control. • The group discussed the positive benefits or meeting energy efficiency requirements, but struggled with the punitive nature of the proposal. Could support the proposal if there was no punitive aspect to the policy. 59 of 76 Energy Star Ratings for City Owned Facilities My Portfolio: Stu Reeve April 19, 2013 ‐ 05:51:51 PM Total Buildings: 21 Current Rating (1‐100) 117 N Mason 48 15,500 8/31/2012 Not Eligible: Rating must be 75 or above 10/25/2012 215 NM 90 72,000 9/30/2012 Not Eligible: Less than one year since the period ending date of the last ENERGY STAR application. Eligible again on 09/30/2013 11/16/2012 281 NC 95 37,603 10/31/2012 Not Eligible: Less than one year since the period ending date of the last ENERGY STAR application. Eligible again on 10/31/2013 11/30/2012 City Hall 2 31,553 9/30/2012 Not Eligible: Rating must be 75 or above 10/25/2012 City Park Pool/Bathhouse N/A 0 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 EPIC N/A 97,900 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Fleet Services N/A 23,200 8/31/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Lincoln Center N/A 74,143 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Loomis Warehouse 60 20,244 8/31/2012 Not Eligible: Rating must be 75 or above 10/25/2012 Mulberry Pool N/A 0 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Museum N/A 12,853 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Museum of Discovery 71 46,928 8/31/2012 Not Eligible: Rating must be 75 or above 11/5/2012 North Transit Center 27 6,013 8/31/2012 Not Eligible: Rating must be 75 or above 10/30/2012 North‐Side Aztlan Center N/A 49,800 9/30/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Operation Services 88 26,564 9/30/2012 Not Eligible: Less than one year since the period ending date of the last ENERGY STAR application. Eligible again on 09/30/2013 11/27/2012 Facility Name Total Floor Space (Sq. Ft.) Current Energy Period Ending Date Eligibility for the ENERGY STAR Last Modified ATTACHMENT 4 60 of 76 Current Rating (1‐100) Facility Name Total Floor Space (Sq. Ft.) Current Energy Period Ending Date Eligibility for the ENERGY STAR Last Modified Police Services 57 98,800 9/30/2012 Not Eligible: Rating must be 75 or above 10/25/2012 Ricker Brothers Warehouse 38 14,160 8/31/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Senior Center N/A 41,220 8/31/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Streets/Maintenance Facility N/A 51,314 8/31/2012 Not Eligible: Rating must be 75 or above 10/30/2012 Traffic Ops 19 9,500 8/31/2012 Not Eligible: Rating must be 75 or above 11/5/2012 Transfort N/A 50,445 9/30/2012 Not Eligible: Rating must be 75 or above 11/5/2012 Group Total 779,740 61 of 76 OMB No. 2060-0347 STATEMENT OF ENERGY PERFORMANCE Valley Steel Building ID: 3551491 For 12-month Period Ending: December 31, 20121 Date SEP becomes ineligible: N/A Date SEP Generated: May 09, 2013 Facility Valley Steel 208 Hickory St. Fort Collins, CO 80521 Facility Owner N/A Primary Contact for this Facility N/A Year Built: 2007 Gross Floor Area (ft2): 19,000 Energy Performance Rating2 (1-100) 79 Site Energy Use Summary3 Electricity - Grid Purchase(kBtu) 120,785 Natural Gas (kBtu)4 404,000 Total Energy (kBtu) 524,785 Energy Intensity4 Site (kBtu/ft2/yr) 28 Source (kBtu/ft2/yr) 43 Emissions (based on site energy use) Greenhouse Gas Emissions (MtCO2e/year) 52 Electric Distribution Utility Fort Collins Utilities National Median Comparison National Median Site EUI 46 National Median Source EUI 73 % Difference from National Median Source EUI -40% Building Type Warehouse (Unrefrigerated) Stamp of Certifying Professional Based on the conditions observed at the time of my visit to this building, I certify that the information contained within this statement is accurate. Meets Industry Standards5 for Indoor Environmental Conditions: Ventilation for Acceptable Indoor Air Quality N/A Acceptable Thermal Environmental Conditions N/A Adequate Illumination N/A Certifying Professional N/A Notes: 1. Application for the ENERGY STAR must be submitted to EPA within 4 months of the Period Ending date. Award of the ENERGY STAR is not final until approval is received from EPA. 2. The EPA Energy Performance Rating is based on total source energy. A rating of 75 is the minimum to be eligible for the ENERGY STAR. 3. Values represent energy consumption, annualized to a 12-month period. 4. Values represent energy intensity, annualized to a 12-month period. 5. Based on Meeting ASHRAE Standard 62 for ventilation for acceptable indoor air quality, ASHRAE Standard 55 for thermal comfort, and IESNA Lighting Handbook for lighting quality. The government estimates the average time needed to fill out this form is 6 hours (includes the time for entering energy data, Licensed Professional facility inspection, and notarizing the SEP) and welcomes suggestions for reducing this level of effort. Send comments (referencing OMB control number) to the Director, Collection Strategies Division, U.S., EPA (2822T), 1200 Pennsylvania Ave., NW, Washington, D.C. 20460. EPA Form 5900-197 ATTACHMENT 5 62 of 76 ENERGY STAR® Data Checklist for Commercial Buildings In order for a building to qualify for the ENERGY STAR, a Professional Engineer (PE) or a Registered Architect (RA) must validate the accuracy of the data underlying the building's energy performance rating. This checklist is designed to provide an at-a-glance summary of a property's physical and operating characteristics, as well as its total energy consumption, to assist the PE or RA in double-checking the information that the building owner or operator has entered into Portfolio Manager. Please complete and sign this checklist and include it with the stamped, signed Statement of Energy Performance. NOTE: You must check each box to indicate that each value is correct, OR include a note. CRITERION VALUE AS ENTERED IN PORTFOLIO MANAGER VERIFICATION QUESTIONS NOTES Building Name Valley Steel Is this the official building name to be displayed in the ENERGY STAR Registry of Labeled Buildings? Type Warehouse (Unrefrigerated) Is this an accurate description of the space in question? Location 208 Hickory St., Fort Collins, CO 80521 Is this address accurate and complete? Correct weather normalization requires an accurate zip code. Single Structure Single Facility Does this SEP represent a single structure? SEPs cannot be submitted for multiple-building campuses (with the exception of a hospital, k-12 school, hotel and senior care facility) nor can they be submitted as representing only a portion of a building. 208 Hickory Warehouse (Warehouse (Unrefrigerated)) CRITERION VALUE AS ENTERED IN PORTFOLIO MANAGER VERIFICATION QUESTIONS NOTES Gross Floor Area 19,000 Sq. Ft. Is this the total gross floor area as measured between the principal exterior surfaces of the enclosing fixed walls and including all supporting functions? The total gross floor area should include offices, lobbies, rest rooms, equipment storage areas, mechanical rooms, employee break rooms, cafeterias, elevators, stairwells, all space occupied by refrigeration/freezer units, and all areas that are entirely refrigerated. Existing atriums or areas with high ceilings should only include the base floor area that they occupy. The total gross floor area should not include outside loading bays or docks. Workers on Main Shift 4 Does this number represent the average number of workers that are present during the primary shift (that is, the shift with the most workers)? Note: this is not the total number of staff employed at the property. For example, if there are three daily 8 hour shifts of 100 workers each, the Workers on Main Shift value is 100. Weekly operating hours 54 Hours Is this the total number of hours per week that this warehouse space is in operation, excluding hours when the facility is occupied by maintenance, ENERGY STAR® Data Checklist for Commercial Buildings Energy Consumption Power Generation Plant or Distribution Utility: Fort Collins Utilities Fuel Type: Electricity Meter: Electric Meter (kWh (thousand Watt-hours)) Space(s): 208 Hickory Warehouse Generation Method: Grid Purchase Start Date End Date Energy Use (kWh (thousand Watt-hours)) 12/01/2012 12/31/2012 2,720.00 11/01/2012 11/30/2012 4,360.00 10/01/2012 10/31/2012 4,240.00 09/01/2012 09/30/2012 1,440.00 08/01/2012 08/31/2012 1,640.00 07/01/2012 07/31/2012 1,440.00 06/01/2012 06/30/2012 1,800.00 05/01/2012 05/31/2012 1,360.00 04/01/2012 04/30/2012 2,680.00 03/01/2012 03/31/2012 4,560.00 02/01/2012 02/29/2012 4,880.00 01/01/2012 01/31/2012 4,280.00 Electric Meter Consumption (kWh (thousand Watt-hours)) 35,400.00 Electric Meter Consumption (kBtu (thousand Btu)) 120,784.80 Total Electricity (Grid Purchase) Consumption (kBtu (thousand Btu)) 120,784.80 Is this the total Electricity (Grid Purchase) consumption at this building including all Electricity meters? Fuel Type: Natural Gas Meter: Gas Meter - Xcel (therms) Space(s): 208 Hickory Warehouse Start Date End Date Energy Use (therms) 12/01/2012 12/31/2012 1,087.00 11/01/2012 11/30/2012 537.00 10/01/2012 10/31/2012 17.00 09/01/2012 09/30/2012 0.00 08/01/2012 08/31/2012 0.00 07/01/2012 07/31/2012 0.00 06/01/2012 06/30/2012 0.00 05/01/2012 05/31/2012 0.00 04/01/2012 04/30/2012 39.00 03/01/2012 03/31/2012 351.00 Page 2 of 3 64 of 76 02/01/2012 02/29/2012 1,061.00 01/01/2012 01/31/2012 948.00 Gas Meter - Xcel Consumption (therms) 4,040.00 Gas Meter - Xcel Consumption (kBtu (thousand Btu)) 404,000.00 Total Natural Gas Consumption (kBtu (thousand Btu)) 404,000.00 Is this the total Natural Gas consumption at this building including all Natural Gas meters? Additional Fuels Do the fuel consumption totals shown above represent the total energy use of this building? Please confirm there are no additional fuels (district energy, generator fuel oil) used in this facility. On-Site Solar and Wind Energy Do the fuel consumption totals shown above include all on-site solar and/or wind power located at your facility? Please confirm that no on-site solar or wind installations have been omitted from this list. All on-site systems must be reported. Certifying Professional (When applying for the ENERGY STAR, the Certifying Professional must be the same PE or RA that signed and stamped the SEP.) Name: _____________________________________________ Date: _____________ Signature: ______________________________________ Signature is required when applying for the ENERGY STAR. Page 3 of 3 65 of 76 FOR YOUR RECORDS ONLY. DO NOT SUBMIT TO EPA. Please keep this Facility Summary for your own records; do not submit it to EPA. Only the Statement of Energy Performance (SEP), Data Checklist and Letter of Agreement need to be submitted to EPA when applying for the ENERGY STAR. Facility Valley Steel 208 Hickory St. Fort Collins, CO 80521 Facility Owner N/A Primary Contact for this Facility N/A General Information Valley Steel Gross Floor Area Excluding Parking: (ft2) 19,000 Year Built 2007 For 12-month Evaluation Period Ending Date: December 31, 2012 Facility Space Use Summary 208 Hickory Warehouse Space Type Warehouse (Unrefrigerated) Gross Floor Area (ft2) 19,000 Workers on Main Shift 4 Weekly operating hours 54 Percent Cooled 0 Percent Heated 100 Number of walk-in refrigeration/freezer units 0 Distribution Center o N Energy Performance Comparison Evaluation Periods Comparisons Performance Metrics Current (Ending Date 12/31/2012) Baseline (Ending Date 12/31/2012) Rating of 75 Target National Median Energy Performance Rating 79 79 75 N/A 50 Energy Intensity Site (kBtu/ft2) 28 28 31 N/A 46 Source (kBtu/ft2) 44 44 48 N/A 73 Energy Cost $/year N/A N/A N/A N/A N/A $/ft2/year N/A N/A N/A N/A N/A Greenhouse Gas Emissions MtCO2e/year 52 52 58 N/A 87 kgCO2e/ft2/year 3 3 3 N/A 5 More than 50% of your building is defined as Warehouse (Unrefrigerated). Please note that your rating accounts for all of the spaces listed. The National Median column presents energy performance data your building would have if your building had a median rating of 50. Notes: o - This attribute is optional. d - A default value has been supplied by Portfolio Manager. 66 of 76 2012 Valley Steel 208 Hickory St. Fort Collins, CO 80521 Portfolio Manager Building ID: 3551491 The energy use of this building has been measured and compared to other similar buildings using the Environmental Protection Agency’s (EPA’s) Energy Performance Scale of 1–100, with 1 being the least energy efficient and 100 the most energy efficient. For more information, visit energystar.gov/benchmark. This building’s score 79 100 Most Efficient This building uses 43 kBtu per square foot per year.* *Based on source energy intensity for the 12 month period ending December 2012 Date of certification Date Generated: 05/09/2013 Statement of Energy Performance 1 Least Efficient 50 Median Buildings with a score of 75 or higher may qualify for EPA’s ENERGY STAR. I certify that the information contained within this statement is accurate and in accordance with U.S. Environmental Protection Agency’s measurement standards, found at energystar.gov 67 of 76 1 MEMORANDUM FROM THE CITY OF FORT COLLINS NATURAL RESOURCES ADVISORY BOARD DATE: May 15, 2013 TO: Urban Redevelopment Authority Board FROM: Joseph Piesman on behalf of the Natural Resources Advisory Board SUBJECT: URA Project Requirements In May the NRAB received information from staff concerning the proposed requirements for URA funded projects to meet EPA Energy Star standards and to meet deconstruction/recycling goals. The NRAB is supportive of these requirements. Motion: The NRAB supports the EPA Energy Star requirements and deconstruction/recycling requirements as recommended by staff for URA funded projects. The motion passed by a vote of 6-1 in favor. Please feel free to contact me regarding this recommendation. Respectfully Submitted, Joe Piesman Chair, Natural Resources Advisory Board 691-6697 j.piesman@comcast.net cc: Darin Atteberry Tom Leeson Susie Gordon ATTACHMENT 6 68 of 76 Environmental Services 215 North Mason PO Box 580 Fort Collins, CO 80522 970.221.6600 970.224.6177 Fax fcgov.com/environmental services The Air Quality Advisory Board (AQAB) submits the following recommendations to the Urban Renewal Authority (URA) regarding the proposed resolution to modify the 2012 URA policies and procedures: 1. All projects must be monitored for 12 months to verify an Energy Star score of 75 or greater. 2. Increase the requirement for waste stream construction/demolition recycling to a minimum of 60% and as high as feasible. The AQAB encourages the URA to also consider the following: 3. Require active, verifiable ambient air quality mitigation during deconstruction and construction to reduce mobile and fugitive emissions. 4. Clarify the meaning of the requirement that “…the building meets indoor environmental standards …”. Does this include the City’s municipal code for radon? 5. Encourage participation in the City’s ClimateWise program. The AQAB appreciates your consideration of these recommendations when drafting revisions to the policy. City of Fort Collins – Air Quality Advisory Board To: City of Fort Collins – Urban Renewal Authority From: Greg McMaster, Chair AQAB Date: 3/18/2013 Re: Recommendation to Urban Renewal Authority on Resolution Amending the 2012 URA Policies and Procedures ATTACHMENT 7 69 of 76 1 1 Fort Collins URA Work Session – Energy Efficiency Policies July 30, 2013 2 General Direction Sought • Is there support for moving forward with a resolution to amend the evaluation criteria to require participation in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds? • If there is support for the policy change, does the URA Board support the working group’s recommendations? ATTACHMENT 8 70 of 76 2 3 URA Evaluation Criteria Background: • March 27, 2013 Board Hearing • EPA’s Energy Star program and the Target Finder system • 50% diversion rate of the waste materials by weight generated by a construction or demolition project • Item continued to allow for greater public outreach 4 Policy Working Group Working group of community members and industry professionals established Met on three occasions and provided perspective and some recommendations Evaluate existing buildings/projects 71 of 76 3 5 Energy Efficiency Requirements • Designed to Earn the Energy Star certification • Energy Star label • Close the loop between design and actual performance • Monitor energy use for 12 consecutive months 6 Energy Efficiency Requirements Applicability: New buildings and major renovations (more than 50% of square footage affected) • Energy Star Label Minor Renovations (Less 50% square footage affected) • Current Energy Code (except building envelope) • Monitor Energy Use for 12 months 72 of 76 4 7 Deconstruction/Recycling URA funded projects demonstrate that at least 50% of the waste materials by weight (excluding wastes containing lead, asbestos or other hazardous material) generated by a construction or demolition project be diverted from the landfill through waste management options, such as reuse or recycling. 8 Outreach Efforts Presentation to Additional Boards • Natural Resources Advisory Board • Air Quality Advisory Board • Chamber • South/North Fort Collins Business Associations • Policy Working Group 73 of 76 5 9 Working Group Discussion Energy Efficiency Requirements: • Concerned with Increase in Costs • Lack of Control over certain Properties • Withholding of funds 10 Working Group Recommendation Energy Efficiency Requirements: • Support for requirements • Support for 12-month monitoring • Remove punitive aspect of policy 74 of 76 6 11 Working Group Discussion Recycling/Deconstruction Requirements: • One-size fits all Nature of Policy Problematic • Difficulty with Monitoring • Punitive Aspect 12 Working Group Recommendation Recycling/Deconstruction Requirements: • Allow “As-Built Survey” to be submitted • Require Third-party Verification • Remove Punitive Aspect 75 of 76 7 13 Direction Sought • Is there support for moving forward with a resolution to amend the evaluation criteria to require participation in the EPA’s Energy Star program, as well as construction/demolition waste diversion thresholds? • If there is support for the policy change, does the URA Board support the working group’s recommendations? 76 of 76 security, or other support personnel? Note: the average warehouse space operates 60 hours per week. Percent Cooled 0 % Is this the percentage of the total floor space within the facility that is served by mechanical cooling equipment? Percent Heated 100 % Is this the percentage of the total floor space within the facility that is served by mechanical heating equipment? Number of walk-in refrigeration/freezer units 0 Does this count include all large walk-in refrigeration or freezer units at the warehouse? Distribution Center No(Optional) Is this building considered a distribution center? Page 1 of 3 63 of 76 20 of 76 the principal campus of a college, university, or seminary; or a residential child care facility, as medical marijuana establishments apply to retail marijuana operations? No, there is no 1,000-foot distance limitation for retail marijuana establishments as it pertains to qualifications for a state license, so municipalities should consider addressing this in their local ordinances or rules. can a municipality act as the grower or owner? No, state law prohibits government-run retail marijuana operations.16 Does the same requirement for the state to issue a state license between 45 and 90 days also apply to local jurisdictions? No. There is no constitutional or statutory requirement specifying how long a local government may take to indicate its approval or denial of a conditional state license. However, in the event the state fails to meet any of the obligations that would otherwise cause an applicant to apply directly to the local government under the constitutionally required local licensing ordinance, then the local government must act within 90 days.17 If we choose to license retail marijuana establishments, can the city or town prohibit use in public buildings and parks? Yes. While consumption of marijuana “openly and publicly”18 is not allowed, Amendment 64 specifically allows for the prohibition of marijuana possession, consumption, use, display, transfer, sale, transportation, or growing in public buildings.19 The state legislation does not define “open and public,” so municipalities might consider doing so in their local codes. 16 C.R.S. § 12-43.4-103 (2013). 17 COLO. CONST. art. XVIII, § 16(5)(h). 18 Id. at § 16(3)(d). 19 Id. at § 16(6)(d). can a municipality limit the size of personal home grows authorized by amendment 64? While Amendment 64 allows each adult to grow six plants “provided that the growing takes place in an enclosed, locked space, is not conducted openly and publicly, and is not made available for sale,”20 the law does not define those terms, so municipalities may consider clearly defining what constitutes an “enclosed, locked space” in their municipal codes. Much like they can with medical marijuana, municipalities can use land use, building, and fire codes to regulate home grows. Some municipalities have limited the number of plants per household (regardless of the number of residents), some have dictated the minimum space needed per plant, others have restricted indoor grows to specific types of lights, while others have prohibited home grows in multifamily housing. additional resources CML has sample ordinances and a table tracking municipal actions on retail marijuana at www.cml.org/ marijuana.aspx. Please contact CML Staff Attorney Rachel Allen at 303-831-6411, 866-578-0936, or rallen@cml.org to request copies of additional sample ordinances. If you have questions, please contact CML Deputy Director Kevin Bommer (kbommer@cml.org) or CML Staff Attorney Rachel Allen (rallen@cml. org). Both can be reached at 303-831- 6411 or 866-578-0936. Special thanks CML would like to extend a special “thank you” and acknowledgement to Denver Assistant City Attorney David Broadwell for authoring the “Key Decision Points” section of this document. 20 Id. at § 16(3)(b). KNOWLEDGE NOW 3 18 of 76 establish “civil penalties” for violation of city requirements. 16. Any implementing ordinance allowing retail marijuana establishments to exist should: a) clearly identify a single point of contact with whom the state licensing authority will interact to determine whether or not a particular license application or other licensing action complies with local requirements; and b) specify deadlines for responding to the state regarding new license approvals and other licensing actions. revenue and taxation The major marijuana taxation bill of the session was HB 13-1318, which refers a single question to the November 2013 statewide ballot with two revenue raising components: a wholesale 15 percent excise tax on cultivated marijuana earmarked for school capital construction as described in Amendment 64; and a special 10 percent sales tax to be imposed over and above the state’s normal 2.9 percent sales tax. The legislature will have the ability through legislation to increase the tax. Of the special 10 percent sales tax revenue, 15 percent will be shared with the local jurisdictions in which the tax is collected, similar to the cigarette tax share back, with the exception that local governments would not be penalized for retaining their own sales tax authority and existing taxes. Both HB 1317 and 1318 capture sales tax and fee revenue derived from retail marijuana businesses and dedicate these revenues to the “direct and indirect costs” of administering the state regulatory regimes for both medical and retail marijuana. However, the local share-back of revenue derived from the special 10 percent sales tax is not earmarked by 1318 for any particular purpose.8 Policy makers should consider a variety of options including: • Whether to budget and appropriate monies to provide additional resources for marijuana-related regulatory enforcement and services? • Whether to require marijuana establishments to post a marijuana tax bond to ensure the payment of local taxes by these retail establishments? • Whether to refer to the ballot a question imposing additional local sales or excise tax on marijuana? — if your board or council decides to refer a ballot question - at what rate? - earmark the revenues for a purpose? — additional tax considerations include - what to do with state share back? - what to do with existing sales tax revenues derived from medical and/or retail marijuana operations? - opt to levy an additional sales or excise tax? • Whether to impose operating fees on retail marijuana establishments? faQs Is dual licensing at both the state and local level (like liquor licensing) contemplated in the legislation? Dual licensing is expressly allowed, but not mandated. However, unlike liquor licensing, an applicant will get conditional state approval before any local approval is considered.9 can an adult purchase and consume marijuana in the same location? No, consumption of marijuana is prohibited on public premises that are licensed to sell retail marijuana or products.10 8 The ballot title designates that tax revenues will be used “to fund the enforcement of regulations on the retail marijuana industry and other costs related to the use and regulation of retail marijuana.” Some may argue this creates a limitation. 9 C.R.S. § 12-43.3-104(3) (2013). 10 Id. at § 12-43.4-901(4)(c). 4 COLORADO MUNICIPAL LEAGUE 17 of 76 64, are defined by HB 13-1317 as “fees that may be charged by a local jurisdiction for costs, including but not limited to inspection, administration, and enforcement of retail marijuana establishments.”7 local licenses Even though it is not expressly permitted or prohibited by Amendment 64, HB 13-1317 establishes the ability for local jurisdictions to require a local license under local “time, place, and manner” conditions. This should not be confused with the constitutional requirement mentioned above that directs local jurisdictions to establish a local licensing procedure based on the state’s failure to meet certain deadlines. A local licensing requirement under “time, place, and manner” is purely optional and is meant to work similar to alcohol beverage dual licensing. Key decision points The legislation from the 2013 session addressing state and local authority to license and regulate retail marijuana establishments and the text of Amendment 64 leave cities and towns with numerous options for local regulation. Some of the considerations for local regulation might include: 1. Whether to allow retail marijuana establishments to exist at all? 2. Whether to prohibit the establishment of licensed retail marijuana businesses permanently, or to do so only until a certain date in the future at which time the municipality would reevaluate whether or not to allow such businesses to exist after some later date? 3. Which of the four distinct types of retail marijuana establishments will be allowed? a) retail marijuana stores? b) retail marijuana cultivation facilities? c) retail marijuana products manufacturers? d) retail marijuana testing facilities? 6 Id. 7 Id.; C.R.S. § 12-43.4-103(11). 4. Whether to provide a phase-in period during which only current medical marijuana licensees may be allowed to convert to retail marijuana establishments or add a retail marijuana license to current operations? a) if so, for how long? b) allow changes of ownership during the phase-in period? c) allow changes in location during the phase-in period? 5. Whether to allow collocation (i.e., dual use of the same location) for medical marijuana businesses and retail marijuana businesses? 6. Whether to limit the number of businesses allowed in any of the four classes of state licensing and, if so, determine how to prioritize those who would compete for the limited number of approvals. 7. Whether to establish and administer a separate local licensing requirement, per se, or instead depend entirely on other laws (e.g., zoning and land use laws) to enforce “time, place, and manner” restrictions on retail marijuana establishments? 8. Whether to adopt counterpart local regulations addressing some or all of the same subject matter being addressed in state regulations, or instead focus local regulations entirely on aspects of “time, place, and manner” that are not being regulated by the state? a) character and background checks for state license applicants? b) business operational standards? c) product standards? 9. Whether to establish hearing procedures and approval criteria for retail marijuana establishments? a) only for retail marijuana stores, or for other classes of state licensing as well? b) mandate public hearing requirements? c) criteria for approval: “needs and desires” and “reasonable requirements of the neighborhood” as it is for liquor licensing or something else? d) apply same approval procedures and criteria equally KNOWLEDGE NOW 3 16 of 76 respective jurisdictions.) HB 13-1318 HB 13-1318 contains the statutory implementation of a special sales tax and an excise tax, as well as refers a single question on the adoption of both to voters on the November ballot. If approved by the voters, both the sales and excise tax described in the “Revenue and taxation” section below become operational. sB 13-283 SB 13-283 enacts several provisions that were generally identified as “consensus items” by the Amendment 64 Task Force. The bill • enacts permissive language allowing local governments the ability to prohibit the use of compressed, flammable gas in a residential setting for use as a solvent in the extraction of cannabinoids or THC; • establishes the legality and enforceability of contracts pertaining to lawful activities authorized by Amendment 64; • creates several required state reports and studies on various social and health impacts of legalization of possession and use of marijuana; • includes marijuana smoke within the Clean Indoor Air Act’s prohibition on smoking in public places; and • establishes a prohibition on open containers of marijuana or marijuana products within a motor vehicle that mirrors the same prohibition on open containers of alcohol. As introduced, the legislation also included consensus language on criminal matters in Title 18, including key definitions and related prohibitions on terms stated in Amendment 64 but left undefined. All of this language was stripped, and the bill instead requires a report by the Colorado Commission on Criminal and Juvenile Justice (CCJJ) by the end of the year with the intention of introducing a bill in the next legislative session. The result is a failure to have a standard language in the state’s criminal code of “openly and publicly,” “enclosed, locked space,” and other language connected to the now legalized possession and use of cannabis until legislation is enacted next year. In the meantime, municipalities may choose to address these issues within their respective municipal codes. constitutional requirements state rulemaking The Colorado Department of Revenue (DOR) Marijuana Enforcement Division (MED) must adopt regulations implementing Amendment 64 by July 1, 2013.2 Should the state fail to meet this deadline, applicants may submit license applications directly to local jurisdictions starting on Oct. 1, 2013, and the local jurisdiction must act on the application within 90 days.3 This local license is issued under authority of the constitutionally mandated local ordinance discussed below, and the licensee is not subject to any regulation or enforcement by MED while the local license is active. local ordinance By oct. 1, every municipality and county (that has not already prohibited retail marijuana establishments) must adopt an ordinance that designates the entity within the local government responsible for licensing under three specific circumstances: • if the state fails to adopt regulations by the July 1 deadline; • if the state fails to issue any licenses by Jan. 1, 2014; or • if the state licensing authority fails to act within 90 days upon an application submitted to it. Should the state fail to license under any of the three scenarios above, then applicants may apply directly to the local jurisdiction for a local license under the required ordinance unless that municipality has opted to prohibit retail marijuana operations. Amendment 64 recognizes that a local jurisdiction will not have any state assistance in this case, and allows the local jurisdiction to establish procedures for the issuance, suspension, and revocation of any license issued by the local jurisdiction. 2 COLO. CONST.art. XVIII, § 16(5)(a), PERSONAL USE AND REGULATION OF MARIJUANA (also known as “Amendment 64”). 3 Id. at § 16(5)(i). 2 COLORADO MUNICIPAL LEAGUE 15 of 76 HB 13-1317, HB 13-1318, and SB 13-283. HB 13-1317 HB 13-1317 contains the bulk of the task force recommendations and establishes the regulatory framework for licensing by the state and local jurisdictions. The established language of the Colorado Medical Marijuana Code (CMMC) was used to fill in the process-related components of the new Colorado Retail Marijuana Code (CRMC), but differences in the licensing process between the two led to significant changes in the legislation as it progressed.1 1 It is worth noting that the licensing process in the CMMC was significantly altered by HB 13-1238 to mirror licensing under Amendment 64 going forward. Municipalities are encouraged to familiarize themselves with these changes regarding any new medical marijuana license applications in the future. CML is available for further assistance. HB 13-1317 contains the following significant provisions: • At the state level, all future medical and retail marijuana sales and excise tax revenue, as well as all state licensing and application fees, will be deposited into a single fund for the newly rebranded Marijuana Enforcement Division of the Department of Revenue. • On oct. 1, an existing medical marijuana licensee may apply to the state licensing authority for a state retail marijuana establishment license. Under certain circumstances, including local approval, the licensee may continue to operate part of the licensed premises for medical marijuana (MMJ) and part for retail marijuana (RMJ). The state is required to act upon such applications between 45 and 90 days, and conditional licenses (explained later) must be issued before Jan. 1, and will be effective on Jan. 1. • After Jan. 1, any person not already licensed for MMJ may submit a notice of intent to apply for a retail license. A notice fee may be collected and half will be sent to the local jurisdiction. The person may apply for a state license on July 1, 2014. • Under all circumstances, one-half of the application fee collected will be sent to the local jurisdiction unless the jurisdiction has opted out pursuant to its authority to do so under Amendment 64. • Consistent with Amendment 64, local jurisdictions may enact ordinances and regulations governing the time, place, manner, and number of marijuana establishments. Under these provisions, a local jurisdiction has the option to create a local licensing requirement. The Knowledge Now series features practical research on timely topics from the Colorado Municipal League. KNOWLEDGE NOW 1 Marijuana legislation implementation, May 2013 The Voice of Colorado’s Cities and Towns the inforMation you need to serve your MunicipaLity and residents knowledge now ATTACHMENT 2 14 of 76