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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2012 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE ODATE: November 20, 2012 STAFF: Wanda Nelson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 6 SUBJECT Consideration and Approval of the Minutes of the October 30, 2012 Adjourned Meeting and the November 6, 2012 Regular Meeting. October 30, 2012 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, October 30, 2012, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Manvel, Ohlson, Poppaw, Kottwitz and Weitkunat. (**Secretary’s note: Councilmember Troxell arrived at 6:04 p.m.) Councilmembers Absent: Horak Staff Members Present: Atteberry, Nelson, Roy. Mayor Weitkunat stated Item No. 3, Consideration of the appeal of the August 9, 2012 Zoning Board of Appeals Decision to Approve a Variance to Allow the Existing Off-Premise Sign (Billboard) Located in the BNSF Railroad Right of Way at 190 West Prospect Road to be Removed and Reinstalled at a New Location Within the Same Railroad Right of Way at 190 West Prospect Road, has been postponed to the November 6, 2012 Council meeting. Consideration of an Appeal of the Hearing Officer’s August 16, 2012 Decision to Approve Aspen Heights Project Development Plan, #PDP110018, Hearing Officer Decision Upheld with Conditions The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY In December 2011, Breckenridge Land Acquisition, LLP, submitted a Project Development Plan (PDP) for a combination of single family detached, two-family and multi-family dwellings in the C- C-N, Community Commercial North College zone district. As proposed, the project consists of 220 dwellings on 31 acres located south of Conifer Street, west of Redwood Street and north of Old Town North subdivision. On August 7, 2012, the Hearing Officer conducted a public hearing in consideration of Aspen Heights PDP. On August 16, 2012, after consideration of testimony from the applicant, the public and staff, the Hearing Officer issued a written decision approving the PDP. with one condition ensuring proper submittal of a landscape plan for the clubhouse. On August 30, 2012, Tom Lawton filed a Notice of Appeal seeking redress of the Hearing Officer’s decision. 116 October 30, 2012 The appeal alleges that the Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code and that the Hearing Officer failed to conduct a fair hearing. BACKGROUND / DISCUSSION This is a request for 220 dwellings on 31 acres located south of Conifer Street, west of Redwood Street and north of Old Town North subdivision. The dwellings, and the number of bedrooms, would be divided in the following manner: 82 Single Family Detached (3 bedrooms per unit) 62 Two Family (duplexes) (2-3 bedrooms per unit); 76 Multi-Family (row-houses, 3 – 6 units per building) (2-3 bedrooms per unit). There would be a total of 600 bedrooms each of which would be leased individually. (The applicant has indicated that there is a potential for all 82 single family detached dwellings to be converted to Extra Occupancy Rental Houses featuring a mix of 4-5 bedrooms per unit at some point in the future. Such conversion would be subject to the procedures and standards of Section 3.8.16 and could possibly increase the total bedroom count to 720. Such conversion is not the subject of this PDP.) All dwellings would be two-story. There would be 786 off-street parking spaces. The project includes a clubhouse, pool, outdoor sport court and leasing office. Blue Spruce Drive and Lupine Drive are two public streets that would be extended to serve the site. Blue Spruce Drive would not be extended south to Blondell Street. Redwood Street would be extended south to connect with the existing Redwood Street so there would be a complete roadway between existing East Vine Drive and Conifer Street. A segment of the new, re-aligned Vine Drive would be constructed along the project’s southern property line but will not extend to North College Avenue. ACTION OF THE HEARING OFFICER At the public hearing, the Hearing Officer considered the testimony of the applicant, affected property owners, the public and staff. The Administrative Review process allows the Hearing Officer ten working days to render a written decision. On August 16, 2012, the Hearing Officer provided a written decision approving the PDP. with the one condition as recommended by staff that a landscape plan be provided for the clubhouse. ALLEGATIONS ON APPEAL On August 30, 2012, Tom Lawton filed an appeal alleging that the Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code and that the Hearing Officer failed to conduct a fair hearing. THE QUESTIONS COUNCIL NEEDS TO ANSWER 1. Did the Hearing Officer fail to properly interpret and apply relevant provisions of the Land Use Code? 117 October 30, 2012 2. Did the Hearing Officer fail to conduct a fair hearing in that the Hearing Officer exceeded his authority or jurisdiction as contained in the Land Use Code or Charter? 3. Did the Hearing Officer fail to conduct a fair hearing in that the Hearing Officer substantially ignored his previously established rules of procedure? 4. Did the Hearing Officer fail to conduct a fair hearing in that the Hearing Officer considered evidence relevant to his findings which were substantially false or grossly misleading? ALLEGATIONS ON APPEAL A. Failure to Conduct a Fair Hearing and/or Failure Properly Interpret and Apply Relevant Provisions of the Land Use Code Specifically Section 2.2.6(B)(D). Land Use Code Section 2.2.6(B) reads as follows: “(B) Posted Notice. The real property proposed to be developed shall also be posted with a sign, giving notice to the general public of the proposed development. For parcels of land exceeding ten (10) acres in size, two (2) signs shall be posted. The size of the sign(s) required to be posted shall be as established in the Supplemental Notice Requirements of Section 2.2.6(D). Such signs shall be provided by the Director and shall be posted on the subject property in a manner and at a location or locations reasonably calculated by the Director to afford the best notice to the public, which posting shall occur within fourteen (14) days following submittal of a development application to the Director.” The appellant alleges that the property was not posted with a sign in a timely manner and that the location of the sign that was posted was not in a sufficiently prominent location. The appellant asserts that the intention of the Development Review Guide, as found on the City of Fort Collins Current Planning website, was not followed. On page three, lines 4 – 9 of the verbatim transcript, the following was read into the record by the Hearing Officer: Mr. Lopez: “The common development review procedures are codified in Section 2.2. The submittal of the PDP is step three; the public hearing is step seven. As per City Council Resolution 2012-064, the PDP was remanded back to the public hearing, step seven, not back to the submittal, step three. The project was submitted on December 14, 2011. City records indicate that two signs were posted by December 27, 2011.” Land Use Code Section 2.2.6(D) reads as follows: 118 October 30, 2012 D) Supplemental Notice Requirements. Minimum Notice Radius Sign Size All developments except as described below. 800 feet 12 square feet Developments proposing more than fifty (50) and less than one hundred (100) single-family or two-family lots or dwelling units. 800 feet 12 square feet Developments proposing more than twenty-five (25) and less than one hundred (100) multi- family dwelling units. 800 feet 12 square feet Nonresidential developments containing more than twenty-five thousand (25,000) and less than fifty thousand (50,000) square feet of floor area. 800 feet 12 square feet Developments proposing one hundred (100) or more single-family or two-family lots or dwelling units. 1,000 feet 12 square feet Developments proposing one hundred (100) or more multi-family dwelling units. 1,000 feet 12 square feet Nonresidential developments containing fifty thousand (50,000) or more square feet of floor area. 1,000 feet 12 square feet Nonresidential 1,000 feet; plus, 12 square feet 119 October 30, 2012 Minimum Notice Radius Sign Size developments which propose land uses or activities which, in the judgment of the Director, create community or regional impacts. with respect to neighborhood meetings, publication of a notice not less than seven (7) days prior to the meeting in a newspaper of general circulation in the city. Zonings and rezonings of forty (40) acres or less. 800 feet 12 square feet Zonings and rezonings of more than forty (40) acres. 1,000 feet 12 square feet The appellant does not provide any specific allegation with regard to Section 2.2.6(D). As to mailed notice, the verbatim transcript states on page three, lines 10 – 13: Mr. Lopez: “Also in compliance with Section 2.2.6(A), mailed notices advertising the public hearing of August 7, 2012 were mailed to affected property owners within the specific notification area fourteen days prior to the public hearing date. The notification letter was mailed out on July 25, 2012, thus complying with the standard.” B. The Decision Maker failed to conduct a fair hearing by considering grossly misleading evidence in the hearing due to disingenuous presentation of the proposal. The appellant does not provide a Land Use Code citation regarding this allegation. The appellant alleges that the applicant’s presentation indicated that the PDP would contain 600 bedrooms. The developer, in fact, will construct 712 bedrooms. The developer has indicated that, at some point after issuance of a Certificate of Occupancy, a request for a variance or a waiver will be made to convert the single family homes to Extra Occupancy Rental Houses. Therefore, the applicant’s presentation to the Hearing Officer was disingenuous, suggesting a pattern of occupancy which is not that which is intended. The Hearing Officer stated in his decision on page 18: “16. Section 3.8.28 – Extra Occupancy Rental House Regulations. After issuance of Certificates of Occupancy, the single family detached dwellings will seek conversion to Extra Occupancy Rental Houses to allow four to five tenants per unit. This request is not before the Hearing Officer at this time.” 120 October 30, 2012 The verbatim transcript states on page 45, lines 15 – 19: Mr. Shepard: “I think the last one before Ward or Mark come up here is the, to again reference that the three-unrelated and how we get more than three into a dwelling unit. That’s originally part of the Code that was adopted even before the Land Use Code when Fort Ram Village on Plum Street desired that. It’s been expanded now to allow extra occupancy rental house, which is in 3.8.16. It’s a basic development review, it is not a modification, it’s not a variance as was stated.” C. The Hearing Officer failed to properly interpret and apply relevant provisions of the Land Use Code in that the Hearing Officer or the City of Fort Collins conducted an Administrative Hearing when the PDP should have been considered by the Planning and Zoning Board. The appellant does not provide a Land Use Code citation regarding this allegation. The appellant asserts that the Development Review Guide, as found on the Current Planning website, indicates that while the zoning of the proposed development site is not residential, the surroundings of the site on two sides are. As such, this application matches almost exactly the City’s example development requiring a Type 2 review. The Hearing Officer stated in his decision on pages 5 and 6: “1. Section 4.19(B)(2)(a) – Permitted Use. This standard lists the permitted uses in the CCN District, subject to administrative review. Residential uses including single family, two-family, single family attached, multi-family dwellings, group homes, extra occupancy rental house and mixed use dwellings are permitted per subsection (a).” The verbatim transcript states on page 45, lines 1 – 5: Mr. Shepard: “There was a comment about some vagueness as to a Type I or Type II review. It’s not vague, it’s a hard and fast rule, it’s very strict. The Land Use Code, in Article IV, very explicitly says either you are a P and Z review, or you are an Administrative Hearing Officer review. There’s no crossing over. The only way that you can cross over requires a text amendment which has to go to the Planning and Zoning Board and then two readings by Council.” D. The Hearing Officer failed to conduct a fair hearing in that he exceeded his authority or jurisdiction as contained in the Land Use Code or ignored its previously established rules of procedure in failing to consider City Plan in his decision. The appellant does not provide a Land Use Code citation regarding this allegation. The appellant asserts that two policies from City Plan were not properly considered by the Hearing Officer: • Policy LIV 7.7 – Accommodate the Student Population 121 October 30, 2012 “Plan for and incorporate new housing for the student population on campuses and in areas near educational campuses and/or that are well-served by public transportation.” • Policy LIV 37.3 – Supporting Uses and Housing “Include student-oriented housing, retail services, and entertainment designed to function as part of the Campus District. Form strong pedestrian and bicycle linkages throughout the district and provide connections to city systems beyond the campus.” The Hearing Officer stated on page 18 of his decision that the PDP complied with Section 3.6.5(B) – Location of Existing Transit Routes due to the fact that the PDP is located along Transit Routes 8/81which serves Conifer Street in both directions. The Hearing Officer included in his decision on pages 3 and 4, six excerpts from the North College Corridor Plan. This is a geographically specific sub-area plan that formed the basis of the C-C-N zone district and includes the subject property. An adopted sub-area plan is considered a component of City Plan. The Hearing Officer concluded on page 19 that the decision that the PDP complied with the 2007 North College Subarea Plan. E. The Hearing Officer failed to conduct a fair remanded hearing by substantially ignoring previously established rules of procedure by reason of the Hearing Officer already having decided the case in the original hearing. Lands Use Code Section 2.2.7(A) reads as follows: “2.2.7 Step 7: Public Hearing (A) Decision maker. (1) Administrative Review (Type 1 review). An administrative review process is hereby established wherein certain development applications shall be processed, reviewed, considered and approved, approved with conditions, or denied by the Director pursuant to the general procedural requirements contained in Division 2.1, and the common development review procedures contained in Division 2.2. For those development applications that are subject to administrative review, the Director shall be the designated decision maker. (2) Planning and Zoning Board Review (Type 2 review). A Planning and Zoning Board review process is hereby established wherein certain development applications shall be processed, reviewed, considered and approved, approved with conditions, or denied by the Planning and Zoning Board pursuant to the general procedural requirements contained in Division 2.1, and the common development review procedures contained in Division 2.2. For those development applications 122 October 30, 2012 that are subject to Planning and Zoning Board review, the Planning and Zoning Board shall be the designated decision maker.” The appellant asserts that having already ruled in the affirmative in the original hearing, the Hearing Officer is, therefore, biased and unqualified to consider the PDP in the remanded hearing. Hearing the same case a second time, regardless of differing testimony, it would be extremely hard to issue a decision contrary to the original. Further, Section 2.2.7(A) gives no indication that “the Director”, as the “designated decision maker,” can delegate the role. Finally, Section 2.2.7(D)(1) requires that “the Director” (not “the designated decision maker) close the public hearing. The Hearing Officer read into the public record a memorandum prepared by staff. The relevant subsection of this memorandum is found in the verbatim transcript which states on page 2, lines 24 - 34: Mr. Lopez: “One of these allegations challenged the legitimacy of the City of Fort Collins using a Hearing Officer. In response, please note the following from Section 1.4.9(E) (emphasis added): “(E) Delegation of Authority. Whenever a provision appears requiring the Director or some other City officer or employee to do some act or perform some duty, such provision shall be construed as authorizing the Director or other officer or employee to designate, delegate and authorize professional-level subordinates to perform the required act or duty unless the terms of the provision specify otherwise. With respect to the review of development applications eligible for Type 1 review, in addition to or in substitution for delegation to subordinates as above authorized, the Director may engage the services of an attorney with experience in land use matters.” City Attorney Roy outlined the appeal process. He noted no new evidence is admissible except in response to an allegation that a fair hearing was not held because the hearing officer relied upon evidence that was substantially false or grossly misleading, or in response to Council questions. He discussed the options Council has upon hearing the appeal. Mayor Weitkunat asked for general procedural objections. Tom Lawton, appellant, stated two documents were not included in the Council packet and two documents in the packet did not have a source cited. He stated the two missing documents were a Student Housing Action Plan preparation document and a Power Point presentation. Ted Shepard, Chief Planner, stated the first document is referred to as the Student Housing Action Plan Process Summary. The document was referenced by Mr. Lawton during his testimony before the hearing officer, as per the verbatim transcript. The actual Process Summary itself was not submitted until after the close of citizen input. It was submitted electronically near the end of the hearing. Shepard stated he does have ten hard copies of the document available should Council wish to review it. Shepard clarified that Exhibit 2 was submitted by Mr. Mickey Willis, though the document is an email from Mr. Lawton. 123 October 30, 2012 Shepard stated the Power Point presentation referenced by Mr. Lawton was presented from an iPad. An electronic version, to be converted to hard copy, was not received until after the close of citizen input. There are no objections to giving Mr. Lawton additional time to present his documents. Shepard stated Exhibit 7 was submitted by the applicant to the Hearing Officer at the public hearing during the time set aside for applicant rebuttal. Councilmember Manvel stated he would like to see the visuals of Mr. Lawton’s presentation. City Attorney Roy suggested the applicant be allowed to speak to the issues. Lucia Liley, 300 South Howes Street, attorney for the applicant, stated the applicant did not have any objections to Mr. Lawton showing what was presented at the public hearing. Shepard stated the public hearing was a remanded hearing held on August 7, 2012. He presented project statistics and summarized the appeal allegations. Mayor Weitkunat asked that Councilmembers reveal any observations made or discussions held on a site visit. Mayor Pro Tem Ohlson stated he did attend the site visit to view the property. APPELLANT PRESENTATION Mr. Lawton discussed the fact that the Student Housing Action Plan was in process, but not completed, at the time the Aspen Heights project was submitted. He discussed the points of his appeal. His first allegation related to the notification sign posting on the property proposed for development. Mr. Lawton also alleged the Hearing Officer considered grossly misleading evidence relating to the project’s proposed number of bedrooms. Mr. Lawton alleged an unfair hearing and claimed the project should have gone before the Planning and Zoning Board. The proposed site is not near an educational campus and is not served by public transportation. He opposed the fact that the same Hearing Officer presided over the remanded hearing. APPLICANT PRESENTATION Deanne Frederickson, Aspen Heights Planner, discussed the proposed Aspen Heights development. She discussed the benefits of the project to the area and students and noted the project meets all Land Use Code standards without any modifications or variances. Ms. Liley discussed the appeal allegations. She noted the extra-occupancy process, per the Land Use Code, must occur after the PDP process and discussed the fact that the proposed project is a permitted use. Ms. Liley discussed the public transportation availability for the site and noted student housing is encouraged to be placed throughout the city. Additionally, Ms. Liley noted remands always go back to the original Hearing Officer. She requested the Hearing Officer’s decision be upheld. 124 October 30, 2012 Mickey Willis, 150 Fairway Lane, spoke in favor of the project. He noted affordable housing options are often taken by students and these types of projects will aid in freeing up affordable housing for families and others who need it. Monica Sweere, Old Town North, LLC Manager, supported the project. APPELLANT REBUTTAL Eric Sutherland, 3520 Golden Currant, questioned the adequacy of the Transfort system to serve such a large development and questioned the fact that the project did not go before the Planning and Zoning Board. Mr. Lawton opposed certain aspects of the Land Use Code regulations. APPLICANT REBUTTAL Ms. Liley stated the appeal did not address issues with the project itself, but rather the process. She stated the applicant has consistently followed the currently outlined process. She requested that the decision of the hearing officer be upheld. COUNCIL DISCUSSION Councilmember Manvel asked about the impact of the potential of increasing the number of bedrooms on the traffic analysis . Ward Stanford, Traffic Engineer, replied the traffic analysis was done based upon the potential for additional bedrooms, with a ten percent downgrade for alternative modes, though there is likely to be a higher usage of alternative modes. Councilmember Manvel asked, whether or not the community will provide shuttle bus service as no additional Transfort bus service is planned. Stanford replied those issues are not part of the overall traffic analysis. Shepard replied the developer has publically indicated that shuttle service will be considered, should demand exist. There is no condition, at this point, that would mandate shuttle service. Ms. Liley stated the developer is willing to provide shuttle service if the demand exists. Councilmember Poppaw asked about the possible need for additional bus service on the route that would serve this development. Shepard replied Transfort Planning has not indicated the buses on that route are at capacity. Mayor Pro Tem Ohlson asked what the City is requiring with regard to on-site ditches, one of which is to be eliminated and one of which is to be enhanced. Lindsay Ex, Environmental Planner, replied the main north-south corridor will be preserved through the project. A second drainage that runs into the main area will be removed. The area that will be preserved will be widened to from twenty feet to fifty feet and will be planted with native grasses, shrubs, and trees. Mitigation for the area that is going to be removed will occur in the regional pond. 125 October 30, 2012 Mayor Pro Tem Ohlson asked if this irrigation ditch will have a buffer. Ex replied it is not an irrigation ditch, but is a wildlife corridor and will be preserved at a width of fifty feet and will not have a fifty-foot buffer on each side. Mayor Pro Tem Ohlson asked about on-site trees. Ex replied most of the trees, particularly in the wildlife corridor, are Russian Olive and will be replaced. Mayor Pro Tem Ohlson asked about the timeline for prairie dog habitat restoration. Ex replied the development agreement for the project will stipulate how the funds are transferred in the restoration process. Mark Sears, Natural Areas Program Manager, replied the mitigation funds will be applied the following restoration season. It takes up to ten years to fully restore a piece of property to prairie. Mayor Pro Tem Ohlson suggested changes may need to be made at some point with the mitigation dollar amount when the time it takes for restoration is considered. He disagreed with one-to-one mitigation for wetlands as well. Ex noted the quality of the wetland is being considered rather than just the acreage. Mayor Pro Tem Ohlson asked about the possibility of relocating the prairie dogs to Soapstone Natural Area. Sears replied part of the management plan for Soapstone is to not relocate prairie dogs from off-site. Existing on-site prairie dogs will be allowed to exist and grow a colony naturally. Mayor Pro Tem Ohlson asked how many prairie dogs are estimated to be on-site. Ex replied she was unsure. Mayor Weitkunat suggested Council address the fair hearing issue of the appeal. Councilmember Manvel stated the signage complies with existing regulations and traffic impacts were calculated based upon the possibility of adding more bedrooms Councilmember Troxell made a motion, seconded by Councilmember Poppaw, that the Council find that the Hearing Officer did not fail to conduct a fair hearing in consideration of the Aspen Heights Project Development Plan #110018. Yeas: Weitkunat, Manvel, Ohlson, Poppaw, and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Manvel, to uphold the decision of the Hearing Officer approving the Aspen Heights Project Development Plan #110018, because the Hearing Officer properly interpreted and applied the provisions of the Land Use Code. Councilmember Manvel noted discrepancies between City Plan and the Land Use Code may need to be addressed; however, this project has abided by the regulations in the Land Use Code. While the project may not be optimal from the perspective of nearby residents, City Plan calls for infill projects. He noted the stormwater and street improvements in the area will benefit the community. 126 October 30, 2012 Mayor Pro Tem Ohlson stated there is room for improvement in the City’s policies and processes, though the developer should not be punished because of that. He suggested restoration and wetland mitigation policies should be examined as well as possibly improving the wildlife corridor area to a greater extent. Ms. Liley stated the applicant is willing to work with staff on the issue of improving the wildlife corridor area. Mayor Pro Tem Ohlson suggested the stormwater area look a bit more natural with contours and interest. City Manager Atteberry replied staff would address the issue. Councilmember Poppaw asked if the applicant would be willing to work with Transfort to discover a trigger point for the need for shuttle service and to address capacity issues. Ms. Liley replied she would prefer that issue be a condition of approval. City Attorney Roy clarified that the motion should include the condition that the developer work with staff on improving and/or enlarging the wildlife corridor area and should include the condition that shuttle service be provided unless it is found to be unnecessary. Councilmembers Troxell and Manvel accepted the conditions to be part of the motion. Mayor Weitkunat noted public input on the Land Use Code process is appreciated and should be brought forth for the next set of Land Use Code changes in May. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Troxell. Nays: none. THE MOTION CARRIED. (Secretary’s note: The Council took a brief recess at this point in the meeting.) Resolution 2012-099 Adopting a Water Supply and Demand Management Policy, Postponed to November 6, 2012 The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY The Fort Collins Utilities staff has been working on updating the City’s Water Supply and Demand Management Policy. The current Policy was adopted by City Council in September 2003 (Resolution 2003-104). Since the Policy’s adoption, the Utility has seen a significant reduction in water use while continuing to plan for future water needs. The updated Policy will provide further direction regarding the planning, management and maintenance of the City’s water supply system needed to assure a safe, reliable drinking water supply and provide for an appropriate level of water conservation. It will also provide guidance on how the City may use its valuable water resources to meet other beneficial purposes for its citizens and the surrounding community. 127 October 30, 2012 BACKGROUND / DISCUSSION History Since the Fort Collins Water Utility’s origin in the 1880s, the City has been focused on providing a high quality and reliable water supply to its customers. Policies that have supported the Utility in providing this water supply, as well as encouraging water conservation, have included the 1988 Water Supply Policy, the 1992 Water Demand Management Policy and the current 2003 Water Supply and Demand Management Policy. This Policy update should continue the objectives of providing a sustainable and integrated approach to ensuring an adequate, safe and reliable supply of water for the beneficial use by customers and the community, while managing the level of demand and the efficient use of a scarce and valuable resource. Much of the work on the Policy update was performed in 2011 and included educating and gathering input from a Community Working Group (CWG) that had diverse water related backgrounds and perspectives. After six meetings with the CWG, a draft Policy update was developed that incorporated many of their issues and concerns. The proposed Policy update was presented to Water Board at its November 17, 2011 meeting. After much discussion, the Board voted unanimously to recommend to City Council support for the draft policy. The Policy update was presented to City Council during a work session on January 10, 2012. Council did not feel the Policy update was ready for adoption and requested additional information. Much of the material developed for the Policy update, CWG and Water Board was provided to the City Council for the January 10, 2012 work session. Materials provided for that meeting are available for review on the City’s website at www.fcgov.com/cityclerk/agendas.php. One of the key updated Policy sections that was discussed during the January 10, 2012 work session (as well as by the CWG and Water Board) was the water supply planning criteria. The three main planning criteria used to develop the City’s water supply system are the drought criterion, storage reserve factor and planning demand level. These criteria determine the amount of water supplies and/or facilities the City needs (e.g., the amount of storage required) and should be somewhat conservative to account for uncertainties in water supply planning. The following describes each of these criteria separately. Drought Criterion The drought criterion defines the level of reliability for the City’s water supply system. In general, water supply systems yield less in more severe droughts. For example, a water supply system that can provide 30,000 acre-feet of water through a 1-in-50 year drought might only be able to provide 20,000 acre-feet during a 1-in-100 year drought. The City has used a 1-in-50 year drought criterion since the 1988 Water Supply Policy. This criterion has provided a reliable supply system to date, but not without issues during the early 2000s drought. Storage Reserve Factor A storage reserve factor is a criterion to have a certain percent of annual demand in storage through the design drought criterion (1-in-50 year drought). This storage reserve provides a short- term supply to address emergency situations, such as pipeline shutdowns (which can and have 128 October 30, 2012 occurred during drought conditions). Acquiring storage in the Poudre Basin for meeting the storage reserve would help diversify the City’s water supply system, which is highly reliant on CBT storage. The storage reserve factor can be equated to the number of months of demand that can be met as shown in the following table: Storage Reserve Factor # of Winter Month Demands # of Summer (July) Month Demands 0% 0.0 0.0 5% 0.9 0.4 10% 1.8 0.7 15% 2.8 1.1 20% 3.7 1.5 25% 4.6 1.8 Planning Demand Level The planning demand level is the amount of demand the water supply system should be developed to meet. Since acquiring water supplies takes many years, projecting future demands is required to determine which supplies and/or facilities need to be acquired. The planning demand level is measured in gallons per capita per day (GPCD) and is used along with projected population and large contractual use needs to determine future demand levels (and thus water supplies and/or facilities to acquire). The planning demand level can be higher than current use or water conservation goals to account for uncertainties in water supply planning that might reduce the yield of the City’s water supplies. The City’s current average water use is 150 GPCD and the 2009 Water Conservation Plan has a goal to reduce use to 140 GPCD by the year 2020. The water supply planning criteria values initially presented in the updated Policy were those being used by the Corps in the permitting process for the Utilities proposed enlargement of Halligan Reservoir, which has been ongoing for several years. The criteria originally presented in the updated Policy were the values currently being used in the Halligan permitting process of the 1-in- 50 year drought criterion, a planning demand level of 162 GPCD (2002-2007 average use), and a 15% storage reserve factor. Although there were some divergent views from CWG members on these planning criteria, the majority of CWG members felt that the water supply planning criteria (used in the Halligan permitting process) were set at reasonable levels. The Water Board also discussed and considered changes to these criteria during its November 2011 meeting, but decided they should remain the same to avoid potential delay to the Halligan permitting process. At the January 2012 work session, some Council expressed concern with having a planning demand level that is above our current water use level (150 GPCD) and water conservation goal (140 GPCD), and wanted a clearer explanation of the planning criteria and how they relate to the City’s water supply needs, the size of Halligan Reservoir and the City’s water use and conservation efforts. As a result, Council did not feel the Policy was ready for adoption. A summary of its feedback during the work session is attached (Attachment 1), along with staff responses to Council’s issues (Attachment 2). 129 October 30, 2012 Following the City Council work session, Utilities staff contacted the Corps to ask how changes to the planning criteria in the Policy would affect the Halligan Reservoir permitting process. The Corps stated it conducts an independent study of the City’s water supply needs and that the planning criteria values being used in the process seemed reasonable. Prior to issuance of a permit, the Corps will revisit these values and make adjustments as necessary. This input allowed for some flexibility in the planning criteria values used in the updated Policy. Utilities staff met with the Water Board’s Water Supply Committee on April 16, 2012 and the full Water Board on July 19, 2012 to discuss potential options for changing the water supply planning criteria. Changes to these criteria focused mainly on revising the planning demand level (in GPCD) and the storage reserve factor (SRF). Several options for changing these criteria were presented by staff, including the previous 162 GPCD and 15% SRF, 150 GPCD and 15% SRF and 140 GPCD and 20% SRF. After some discussion, the Water Board voted unanimously to revise the updated Policy to include the planning criteria suggested by the Water Supply Committee of 150 GPCD and 20% storage reserve factor. The Board’s discussions are described in the attached Letter of Support and Water Board minutes (Attachments 3 and 4). In addition to the issues regarding the water supply planning criteria, Council wanted the updated Policy to include more focus on economic development and water innovation as well as a discussion on the relationship of population growth to water supply and demand planning. The updated Policy now includes these changes, along with the revised water supply planning criteria recommended by Water Board. The Council work session, scheduled for August 28, 2012 to further discuss the updated Policy (among other topics), was cancelled. Following the cancelled work session, Council Leadership reviewed the material provided and determined that an additional work session was not necessary and asked that the updated Policy be presented to City Council for formal adoption. Supporting Information Water Use The City currently delivers about 26,000 acre-feet/year of treated water and 4,000 acre-feet/year of raw water (which irrigates the City’s parks, golf courses, etc.). Demand levels have declined significantly over the last few decades from around 230 GPCD in the early 1990s to about 200 GPCD before the drought year of 2002. The average use over the last several years (2006-2011 normalized use) has been about 150 GPCD, indicating a 25 percent reduction in per capita water use from before 2002. The majority of these water use reductions have come from the City’s residential customers, but the commercial sector has also reduced its water use significantly. These reductions are a result of water conservation efforts by our customers that have been aided by the City becoming fully water metered in 2003 (along with tiered and seasonal rate structures) and the Utilities water conservation program. Utilities conducted a landscape preference survey with an online survey panel to gage customer’s desire for changing landscapes in Fort Collins as it relates to the potential for additional water conservation and its potential impact on existing landscapes. Results of the survey indicated general satisfaction with current landscapes in Fort Collins (especially trees) and support for additional xeriscape. Results indicated no strong opinion regarding additional water conservation, which coincides with recent general Utilities surveys that indicate the majority of customers believe water conservation efforts are at the correct level. 130 October 30, 2012 Water Supply Sources The City’s water supplies generally come from two main sources: the Poudre River and the Colorado-Big Thompson Project (CBT). On average, the City gets about half its treated water supply from each of these sources each year. The City’s Poudre River water supplies include its senior direct flow rights, converted agricultural rights (mostly from shares in the irrigation ditches that run through the City) and the Michigan Ditch and Joe Wright Reservoir system. The CBT supplies are administered by the Northern Colorado Water Conservancy District (NCWCD), which allocates the supplies to unit owners through a variable annual quota. The City receives delivery of its allocated water from Horsetooth Reservoir and does not own or operate that reservoir. Policies of the NCWCD limit carryover of unused CBT water in the project facilities (including Horsetooth Reservoir). The yield of the City’s water supplies is mostly dependent on snowmelt runoff, which is subject to high annual and monthly variability. Because the City plans for its water supply system to meet demands through a 1-in-50 year drought, there are adequate supplies in most years. The City can currently meet about 31,000 acre-feet/year of treated water demands through the 1-in-50 year drought without restrictions. Future Water Demands and Supplies The Water Utility is expecting a future projected need of approximately 37,400 acre-feet/year of treated water demands by 2050 (at 150 GPCD). The increase in demand is mostly from a projected increase in population of around 35,000 people in the Water Utility service area, but also includes an increase in large contractual use of approximately 3,000 acre-feet/year. This future demand should be near a build-out condition, since the Water Utility has a limited growth potential due to surrounding water districts. These districts will meet some of the future water demands projected within the City’s Growth Management Area. The City will continue to acquire additional water rights and/or cash in-lieu-of water rights through Raw Water Requirements, which requires developers to turn in water rights or cash to meet the water needs of additional development. The City has been working towards acquiring and/or developing storage capacity to help manage its current and future water rights. Operational storage is a critical need to help meet legal requirements associated with the City’s converted agricultural rights. The City is pursuing local gravel pits to meet these operational storage needs. Carryover and vulnerability protection storage can help meet the City’s projected future demands, as well as provide a storage reserve for disruptions to the City’s supply system. The City is pursuing the enlargement of Halligan Reservoir to meet these types of storage needs. Water Supply Planning Criteria As discussed above, these criteria determine the amount of water supplies and/or facilities the City needs (e.g., the amount of storage required) and should be somewhat conservative to account for uncertainties in water supply planning. The 1-in-50 year drought criterion defines the level of risk for the City’s water supply system. The 20% storage reserve factor provides a short-term supply to address emergency situations. This factor incorporates having 20% of annual demand in storage (through the 1-in-50 year drought), which equates to about 3.5 months of winter (indoor) demand or about 1.5 months of summer demand. Acquiring storage in the Poudre Basin for meeting the storage reserve would help diversify the City’s water supply system, which is highly reliant on CBT storage. The 150 GPCD planning demand level is higher than the 140 GPCD water conservation 131 October 30, 2012 goal to account for uncertainties in water supply planning, such as the potential effects of climate change. Water supply planning is a long-term process with many uncertainties. The water supply planning criteria seek to balance the benefits and risks of developing a reliable water supply with the associated costs and impacts of doing so. These criteria determine the amount of supplies and/or facilities needed, but it is the City’s water use that mostly impacts the river system (except for construction and inundation impacts to the river). Planning for higher water use levels could provide the City more flexibility to use supplies for other benefits such as supporting local agriculture, if the City continues to reduce water use (e.g., meets the water conservation goal). Surplus Raw Water The City has surplus supplies in many years as a result of planning its supplies for meeting demands through a 1-in-50 year drought. Most of these surplus supplies are currently rented to agriculture on a year-to-year basis that generate revenue and help reduce water customer rates. The City recognizes recent interest in entering long-term arrangements with agricultural renters. Any unused or unrented surplus water is essentially left in the River, which is typically diverted by the next senior water right(s). Using the City’s surplus supplies for instream flows is currently difficult under current Colorado water law. However, Utilities staff is working with other City departments and the State of Colorado on initiatives to improve Poudre River flows. Environmental Considerations The City’s water use reduces flows in the Poudre River and other watersheds. However, most of the flow reductions on the Poudre River (between the lower Poudre Canyon and the middle of Fort Collins) are from irrigation company diversions. Most diversions for the City’s future uses will not reduce flows through Fort Collins, since the City will mostly use water from converted agricultural shares that have historically diverted upstream of Fort Collins. Key Policy Elements The Policy update has significantly changed from the current Policy adopted in 2003 and was developed with much input from the CWG, as well as some revisions from the Water Board and City Council. The following are the key updated Policy elements: • General Policy Language and Introduction In order to align with Plan Fort Collins and incorporate sustainability concepts, references to policies stated in Plan Fort Collins and incorporation of triple bottom line concepts (considering economic, environmental and social aspects) have been added throughout the Policy update, especially in the introduction. • Water Use Efficiency and Demand Management This section reduces the average daily use (water conservation) goal to 140 GPCD by 2020, compared to 185 GPCD in the current policy. This revised goal was developed in the 2009 Water Conservation Plan, which includes programs and measures used to reach the goal. Since it may be 132 October 30, 2012 updated on a more regular basis (at least every 7 years), future conservation goals will be adjusted by subsequent Water Conservation Plans. The Policy also states the peak day use goal of 350 GPCD by 2020, compared to 475 GPCD in the current policy. In addition, this section mentions the use of water rate structures to provide an economic incentive to use water efficiently and how population growth is connected to water supply and use. • Water Supply Reliability This section uses the three main planning criteria discussed above to develop the City’s water supply system. The Policy states that the City’s water supplies should be maintained to meet an average demand of 150 GPCD through at least a 1-in-50 year drought, while maintaining 20% of annual demand in storage through that drought. These criteria are designed to deal with potential uncertainties in water supply planning, one of which is the potential effects of climate change. In addition, this section mentions maintaining a plan for responding to projected water supply shortages. • Additional Supplies and Facilities This section addresses alternatives for meeting the City’s future needs that best fit the City’s water supply system. It includes working towards long-term water sharing arrangements with agriculture and is not specific about the amount of storage capacity required. • Water Quality This section focuses on protecting our watersheds and maintaining the taste and quality of our treated water. • Surplus Raw Water This section includes a strong commitment to use the Utilities surplus supplies for beneficial purposes such as supporting local agriculture and supplementing flows in the Poudre River. • Regional Cooperation This section directs the City to maintain good working relationships with regional entities that are affected by the City’s water use and supply planning. Once the updated Policy is approved, Utilities staff and consultants will create a report that summarizes the updated Policy and provide supporting information. This report will be provided to City Council and others once completed. Summary The Water Board’s recommended changes to the water supply planning criteria and the options presented to it should provide an adequate and reliable water supply with only a slight change to the previously projected amount of water supplies and/or facilities required to meet the City’s future needs. Also, the updated Policy will provide further direction regarding the planning, management, and maintenance of the City’s water supply system needed to assure a safe, reliable drinking water 133 October 30, 2012 supply and incorporates an appropriate level of water conservation. It will also provide guidance on how the City may use its valuable water resources to meet other beneficial purposes for its citizens and the surrounding community. FINANCIAL / ECONOMIC IMPACTS Reliable water supplies are essential to providing economic health and sustainability in Fort Collins. These supplies provide economic and social benefits to the City’s citizens, businesses and surrounding community by having adequate water for health and public safety; home, school and industrial use; and healthy landscapes. The updated Policy will guide the Utilities in preparing for future water supply needs and continued demand management. Most of the Utilities operations associated with the Policy update are currently funded, such as the Water Resources Division and the Water Conservation Program. Most of the actions, projects and/or programs that will be guided by the updated Policy are either already approved (including funding) by City Council or will be brought before them in future individual actions. ENVIRONMENTAL IMPACTS The updated Policy will guide the Utilities’ actions, projects and programs that may have both positive and negative environmental impacts. In general, the City’s use of local and regional water supplies has adverse effects on its surrounding natural environments. However, actions taken through the City’s water conservation and other efforts help to reduce those impacts. The updated Policy seeks to balance the benefits of providing a reliable water supply with the environmental impacts associated with providing that supply. Individual actions, projects and/or programs that will be guided by the updated Policy will be brought before the City Council in the future, at which point the environmental impacts can be more fully described. BOARD / COMMISSION RECOMMENDATION The Water Board unanimously voted to approve the updated Policy with adjustments to the water supply planning criteria mentioned above in the background section. The Board’s discussions are described in the attached Letter of Support and Water Board Minutes. PUBLIC OUTREACH Much of the work for the Policy update was performed in 2011, including an extensive public outreach effort mainly through the formation of a Community Working Group (CWG). Six meetings were held with the CWG to inform and discuss policy issues and their direct input was used to develop the updated Policy. Their input and discussions were documented in a memorandum that was provided with the January 10, 2012 work session materials, which is still available for review on the City’s website at www.fcgov.com/cityclerk/agendas.php. A letter from CWG member Gary Wockner (Save the Poudre: Poudre Waterkeeper), who requested it be given to City Council and Water Board, along with staff responses to those comments are attached for review (Attachments 5 and 6). The Water Board was involved throughout the entire Policy update process in order to provide City Council with its recommendations. In addition to the outreach with the CWG and Water Board, much of the Policy update information was posted on the City’s website, a landscape preference survey was conducted with a Utilities customer online survey panel, and presentations were given to 12 other City boards and interested organizations (22 groups were contacted). A 134 October 30, 2012 letter from the Larimer County Board of County Commissioners is attached for review (Attachment 7). Through these various public outreach efforts, the three levels of the public engagement spectrum (inform and consult, involve and collaborate) were employed. Opportunities were provided in all these efforts for individuals to provide comments on the Policy update, which provided few comments which were similar to the CWG and Water Board input. Given this level of public outreach and since additional outreach was not requested during the January 10, 2012 work session, no additional outreach was performed.” Donnie Dustin, Water Resources Manager, stated this Policy helps guide the Utilities in balancing water supplies and demands. The objective of the Policy is to ensure a safe, adequate, and reliable supply of water for the use of customers and the community, while managing the level of demand and the efficient use of a scarce and valuable resource. A community working group helped develop the language with participation from the Water Board and other boards, as well. Dustin discussed the main changes in the Policy, which include a reduced water conservation goal, acknowledgment of planning criteria which consider climate change, and a stronger commitment to use surplus supplies. Eric Sutherland, 3520 Golden Currant, stated the term “sustainability” is over-used and discussed the possibility of re-using water. Mayor Pro Tem Ohlson asked how building Halligan Reservoir supports the healthy, natural environment. Dustin replied the wording referenced by Mayor Pro Tem Ohlson attempts to relay a triple bottom line of economic, social, and environmental objectives. Mayor Pro Tem Ohlson suggested alternative wording. Dustin replied the item could return before Council at a later date or could possibly be amended this evening. Mayor Weitkunat asked how fires and other water supply disruptions fit into the Policy. Dustin replied disasters and disruptions are included in the Water Supply Shortage Response Plan. The Plan has not gone into effect as a result of the High Park fire, though there is a potential for restrictions in the future. Councilmember Manvel asked about the impact of Halligan Reservoir on water storage. Dustin replied it will double the amount of storage in the Poudre basin. Mayor Pro Tem Ohlson asked if staff is comfortable with the final Policy document. Dustin replied the working group represents the community and he is comfortable with the document. Kevin Gertig, Water Resources/Treatment Operations Manager, replied he is comfortable with the document as it is proactive; however, staff would like to take Council’s input and adapt accordingly. Councilmember Troxell commended staff work on the Policy. He suggested the Policy allow for the explicit inclusion of innovation. Councilmember Manvel stated the inclusion of in-stream flow information and climate change are examples of innovation. Mayor Pro Tem Ohlson suggested the item be postponed to future consent agenda after wording changes are made to include Council’s suggestions. 135 October 30, 2012 Councilmember Troxell made a motion, seconded by Councilmember Manvel, to postpone consideration of Resolution 2012-099 to the November 6, 2012 meeting. Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Troxell. Nays: none. Adjournment The meeting adjourned at 9:17 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 136 November 6, 2012 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, November 6, 2012, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Horak, Manvel, Ohlson, Troxell and Weitkunat. (Secretary’s note: Councilmembers Kottwitz and Poppaw arrived at 6:03 p.m.) Staff Members Present: Atteberry, Eckman, Nelson, Roy. Agenda Review City Manager Atteberry withdrew Item No. 27, Resolution 2012-103 Making Findings of Fact and Related Determinations Regarding the Appeal of the August 7, 2012 Administrative Hearing Officer’s Decision Regarding the Aspen Heights PDP, to the Discussion Agenda. Citizen Participation Stacy Lynne, 305 West Magnolia, discussed the United States Constitution and its relationship to the duties of public officials. Bill Mullaney accused City officials of corruption. Eric Sutherland, 3520 Golden Currant, discussed the appropriate role of government and opposed City funding of the Rocky Mountain Innosphere and expressed concern regarding the fact that the downtown ice skating rink was not funded. CONSENT CALENDAR BUDGET CONSENT ITEMS 6. Second Reading of Ordinance No. 107, 2012, Being the Annual Appropriation Ordinance of the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2013 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2013. Ordinance No. 107, 2012, unanimously adopted on First Reading on October 16, 2012, sets the Downtown Development Authority (DDA) 2013 Operations and Maintenance Budget amount of $769,440 to be appropriated for fiscal year 2013 for the administrative operations budget; appropriates the 2013 Line of Credit Draw in the amount of $1,000,000; sets the amount of $3,197,535 for debt service payments to be appropriated for fiscal year 2013; and 137 November 6, 2012 sets the 2013 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2013. 7. Items Relating to Water and Electric Development Fees and Charges for 2013. A. Second Reading of Ordinance No. 113, 2012, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. B. Second Reading of Ordinance No. 115, 2012, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. The proposed water increase is a flat 4% across the board to all customer classes. Electric development fees are proposed to decrease an average of 2.4% for residential and decrease an average of 1.6% for commercial development. There are no changes in the monthly rates for wastewater or stormwater services being proposed for 2013. Both Ordinances were unanimously adopted on First Reading on October 16, 2012. NON- BUDGET CONSENT ITEMS 8. Consideration and Approval of the Minutes of the October 16, 2012 Regular Meeting and the October 23, 2012 Adjourned Meeting. 9. Second Reading of Ordinance No. 108, 2012, Appropriating Unanticipated Grant Revenue from Colorado Parks and Wildlife in the Conservation Trust Fund for the Fossil Creek Trail at East Trilby Road. This Ordinance, unanimously adopted on First Reading on October 16, 2012, appropriates a $200,000 trail grant received from Colorado Parks and Wildlife for the completion of the Fossil Creek Trail at East Trilby Road. 10. Second Reading of Ordinance No. 109, 2012, Appropriating a Grant from Great Outdoors Colorado for the City’s Portion of Larimer County’s Poudre River Corridor and Regional Trail Initiative Grant. This Ordinance, unanimously adopted on First Reading on October 16, 2012, appropriates a grant received from Great Outdoors Colorado in the amount of $737,597. The funds will be used as part of Fort Collins’ portion of the Poudre River Corridor & Regional Trail Initiative project. The grant request includes open space acquisitions, trail easements, and trail development along the Poudre River from Fort Collins to Greeley. The total grant project cost is $8,074,826, with the Great Outdoors Colorado grant being in the amount of $5,098,150. The City of Fort Collins portion of the project is $1,558,880, with the Great Outdoors Colorado grant amount being $737,597. 11. Second Reading of Ordinance No. 110, 2012, Approving a Fourth Amendment to the Fort Collins-Timnath Intergovernmental Agreement Regarding Cooperation on Annexation, Growth Management, and Related Issues, Eliminating Original Terms Related to the 138 November 6, 2012 Boxelder Overflow Project and Establishing the Terms of Cost Sharing for Design Engineering of Substituted Improvements in the Boxelder Basin. On February 17, 2009, the City of Fort Collins (City) and the Town of Timnath (Timnath) entered into an intergovernmental agreement (IGA) regarding annexations, growth management, and related issues. The IGA resolved certain differences that had arisen between the City and Timnath concerning a variety of planning and growth management issues. The IGA sets forth provisions for the funding, design and construction of the Boxelder Overflow Project. The IGA has been amended three times since for items such as the extension of deadlines for approval of the respective growth management areas and the deletion of all references to Timnath’s possible purchase of the Vangbo property. The parties have determined that development of the Boxelder Overflow Project originally contemplated by Timnath as described in the Intergovernmental Agreement is neither feasible nor desirable, and have further identified a mutually beneficial alternative approach to address flood impacts in the Boxelder Creek Basin as it impacts Timnath and Fort Collins, referred to as the Boxelder Creek Flood Mitigation Projects. In order to move forward cooperatively to further investigate, conceptually plan and preliminarily design the Boxelder Creek Flood Mitigation Projects, the parties desire to apply toward those Projects a portion of the funds previously paid into an escrow account by Fort Collins in accordance with Article 7 of the Intergovernmental Agreement. This Ordinance, unanimously adopted on First Reading on October 16, 2012, approves the Fourth Amendment to the Intergovernmental Agreement in order to clarify and document the City and Timnath’s intentions and mutual rights and responsibilities with respect to the Boxelder Overflow Project and Boxelder Creek Flood Mitigation Projects. Between First Reading and Second Reading the proposed Amendment has been revised to specifically allow for Timnath to carry out the funding of the Boxelder Creek Flood Mitigation Projects through the Timnath Development Agency. 12. Items Relating to the I-25/SH 392 Interchange Project. A. Second Reading of Ordinance No. 117, 2012, Establishing a Special Fee to Be Paid by the Owners of Property Within Close Proximity to the Reconstructed Interchange at the Intersection of Interstate 25 and State Highway 392. B. Second Reading of Ordinance No. 118, 2012, Approving the First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange. On December 21, 2010, the City Council approved an Intergovernmental Agreement (IGA) with the Town of Windsor pertaining to the development of the I-25 interchange at the intersection of State Highway 392. The IGA states that, by March 31, 2011, the City and Windsor will take certain actions to implement the fee requirements identified in the IGA. City Council has adopted several resolutions extending this deadline, the most recent extension being to October 16, 2012. 139 November 6, 2012 Ordinance No. 117, 2012, will establish the specifics of a special fee to be paid by the Property Owners near the interchange. The fee includes two parts and is summarized as follows: • The first part of the fee is in proportion to the anticipated appreciation in property value as a result of the interchange improvements. This amount has been determined from an appraisal report prepared by a licensed MAI appraiser (the "Foster Study"). • The second part of the fee is based on the relative impacts that the development or redevelopment of the properties will have on the Interchange, as measured by the estimated number of additional vehicular trips that will be generated by the developed use of the properties. Based on negotiation with the Property Owners, the City and Town have created a second option for Property Owners. Property Owners signing an agreement with the City would be permitted to defer payment of the entire amount of the fee until their properties are developed or redeveloped, the amount of their fee would be capped at the amount estimated in the agreement, and no interest would accrue on their fee for a period of two years from the date of execution of the agreement. Ordinance No. 118, 2012, adopts the modified IGA first approved by City Council on December 21, 2010, now revised to be consistent with the implementation of the fees as described above. Both Ordinances were unanimously adopted on First Reading on October 23, 2012. 13. First Reading of Ordinance No. 119, 2012, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. The Fort Collins Housing Authority paid the City of Fort Collins $15,457 as the 2010 and 2011 payments for public services and facilities. The Authority requests that the City refund the Payment in Lieu of Taxes (PILOT) to fund sorely needed affordable housing-related activities and to attend to the low-income housing needs of Fort Collins residents. Resolution 1992-093 reinstated the requirement that the Authority make annual PILOT payments to the City. The City may spend the PILOT revenues as it deems appropriate in accordance with law, including remitting the funds to the Authority if the Council determines that such remittal serves a valid public purpose. The Council has remitted the PILOT payment to the Authority since 1992. 14. First Reading of Ordinance No. 120, 2012, Appropriating Unanticipated Grant Revenue from Great Outdoors Colorado in the Conservation Trust Fund for the Fossil Creek Trail at County Road 38E Project. The City has received the grant payment from Great Outdoors Colorado for the construction of the Fossil Creek Trail at County Road 38E project. Great Outdoors Colorado had awarded the City a Special Opportunity Grant for the completion of the Fossil Creek Trail 140 November 6, 2012 from north of Cathy Fromme Prairie to the Spring Canyon Community Park. Construction of the project was completed this past spring. 15. First Reading of Ordinance No. 121, 2012, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the City Code so as to Reflect Inflation in Associated Costs of Services. The City Code requires annual adjustments to certain building permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees are to follow the changes in the Denver-Boulder-Greeley Consumer Price Index (CPI). Street Oversizing fees are adjusted by the changes posted in the Engineering News Record (ENR). The CPI has increased 1.8% and the ENR has increased 1.6%. Additionally the Code is being updated to reference to the most recent amended manual, The ITE Trip Generation Manual, 8th Edition, 2008. Staff is working with a consultant who specializes in capital impact fees to re-evaluate the underlying assumptions and formulas used to calculate the City’s fees. A presentation is scheduled for a work session on February 12, 2013 and formal consideration on March 5, 2013. 16. First Reading of Ordinance No. 122, 2012, Amending Chapter 15 of the City Code Pertaining to Contractor Licenses. Community Development and Neighborhood Services is responsible for the enforcement of the contractor licensing requirements found in Chapter 15 of the City Code. The changes proposed will update the current Code by: • clarifying minimum experience and qualification requirements at the application stage • creating license categories that better align with the adopted residential and commercial building codes • streamlining the application and project verification process • establishing registration requirements for the currently non-licensed category of workers • increasing minimum liability amounts to recognized industry levels. 17. Items Relating to the Naming of Arterial and Collector Streets. A. First Reading of Ordinance No. 123, 2012 Amending Section 24-91 of the City Code Regarding the Naming of Arterial and Collector Streets. B. Resolution 2012-100 Updating the List of Names for Arterial and Collector Streets. This Ordinance amends the City Code relating to naming new arterial and collector streets so that City Council ,rather than the developer, would select the name of the new street. The Resolution will update the current list of names for arterial and collector streets. 141 November 6, 2012 18. First Reading of Ordinance No. 124, 2012, Amending Section 2-427 of the City Code Relating to Membership of the Transportation Board. The Transportation Board currently consists of eleven members appointed by the City Council, and is one of the larger advisory boards. At the end of 2012, the terms of four members will expire. One of those members is not eligible for reappointment because that member has met the Council-adopted two term limit. Another member is eligible but is not interested in reappointment. This provides an opportunity for Council to consider changes to the size of the Board without negatively impacting any current members. This opportunity was presented to the Board by staff, and the Board voted to recommend that the Council reduce the size from eleven to nine members. This Ordinance amends the City Code to reduce the size of the Board to nine members. 19. First Reading of Ordinance No. 130, 2012, Amending the Land Use Code by Designating Certain Types of Multi-family Housing Development Projects as Being Subject to Planning and Zoning Board Review. On October 9, 2012, Council directed staff to draft an ordinance amending the Land Use Code (LUC) to require larger multi-family housing developments (50 dwelling units, or 75 bedrooms) to be reviewed by the Planning and Zoning Board (Type 2). A Type 2 review requires that the developer hold a pre-submittal neighborhood meeting. The benefit to the neighborhood meeting is that the public is given an opportunity to provide input on a project while it is still in the early stages of development. In recent months a large amount of multi- family housing developments have been appealed by concerned citizens to Council based on the assertion that the projects are not compatible with adjacent neighborhoods. This proposed procedural change seeks to provide more opportunity for the public to participate in the development review process for multi-family housing projects. 20. First Reading of Ordinance No. 125, 2012 Amending Section 26-543 of the City Code to Update the Stormwater Master Drainage Plans to Include Basin-Specific Water Quality Best Management Practices and Stream Restoration. The City of Fort Collins’ Stormwater Master Plan has been updated to include stormwater quality and stream restoration projects, alongside the already identified stormwater flood control projects. The Master Plan update utilizes results and information obtained from the Stormwater Utility Repurposing program in conjunction with basin and stream specific recommendations obtained from the following two program efforts: A. Basin-Specific Stormwater Quality Best Management Practices (BMP) Selected Plans; and, B. Stream Restoration and Stability Study and Prioritization with the Multi Criteria Decision Analysis (MCDA) Tool. The BMP Selected Plans include recommendations for the treatment of stormwater within portions of the City that developed prior to the adoption of stormwater quality criteria. The majority of the BMP projects include the retrofit of existing stormwater detention ponds to include water quality treatment facilities. Funding for the construction of the identified BMP 142 November 6, 2012 and stream restoration projects will be drawn from existing stormwater fees. This funding request is included in the current 2013/2014 Budgeting for Outcomes (BFO) process for Environmental Health. 21. First Reading of Ordinance No. 126, 2012, Authorizing the Conveyance of City-owned Property Known as the Maxwell Farm and Related Water Rights Subject to a Conservation Easement and Authorizing a Related Raw Water Transfer Agreement. The Natural Areas Department (NAD) purchased the 137-acre Maxwell Farm, along with 12 shares of North Poudre Irrigation Company (NPIC) water, with the intent of placing it under a conservation easement to help conserve a buffer between Fort Collins and Wellington; protect the open space and scenic values adjacent to I-25; and, sell it as an agricultural property with limited development rights. These purposes are supported by the Natural Areas Land Conservation and Stewardship Plan, the Council-adopted master plan for the Department. The land has been leased to Larry Maxwell, the previous owner, for farming and livestock feeding since the initial purchase in 2009. Natural Areas and Utilities have worked out an agreement for the NAD to sell eleven of the twelve NPIC shares to Utilities for approximately 50% of the estimated market value, which is $14,000 per share (based on recent sales information from NPIC). In exchange, Utilities will enter into a raw water transfer agreement with the buyer of Maxwell Farm, and per the terms of the agreement, Utilities will transfer the equivalent of eleven shares of NPIC water on an annual basis to the Maxwell Farm in perpetuity. The advantage to Utilities is that water decreed solely for agricultural use derived from other Utilities-owned NPIC shares, can be substituted for water decreed for municipal use derived from the eleven NPIC shares, which Utilities can use. The buyer will purchase the remaining share of NPIC water as it is a NPIC policy that a farm must own at least some NPIC water in order to receive any rented or transferred water. The single NPIC share to be owned by the buyer will also be tied to the land by the conservation easement agreement. The funds received from the sale of the land and water will be used to conserve additional land and water. 22. First Reading of Ordinance No. 127, 2012, Authorizing the Conveyance of City-owned Property Known as the Vangbo Property Subject to a Conservation Easement. The Vangbo Property was purchased by the Natural Areas Department (NAD) in 2005 with the intent to place a conservation easement on the property to conserve the open space and scenic values along the I-25 corridor and then sell it as an agricultural property with limited development options. These purposes are supported by the Natural Areas Land Conservation and Stewardship Plan, the Council-adopted master plan for the Department. The land is currently leased to Alison Person, a neighboring landowner, for grazing. Staff recommends selling the 105-acre Vangbo property and associated ditch and water rights with a reserved conservation easement to Alison Person for $300,000. The conservation easement does not allow any future development, but does give the landowner the option to request the purchase of one building envelope on the property from a future City Council. The undeveloped portion would remain in agricultural use. 143 November 6, 2012 23. First Reading of Ordinance No. 128, 2012, Authorizing the Conveyance of a Non-Exclusive Drainage Easement on City Property to Cloud Peak Ranch, LLC. Cloud Peak Ranch, LLC is planning a 39.53 acre residential development called Mail Creek Crossing PLD/PD located just north of Bacon Elementary School on South Timberline Road. This development will require the construction of off-site stormwater outfall improvements on adjacent property to the north in order to connect with a stormwater pipe in Kechter Road. The alignment of these improvements will cross the northwest corner of a property owned by the City’s Social Sustainability Department. The City’s 16-acre property was purchased in 2006 as a Land Bank property and is currently leased as a residential/horse property. In order to facilitate the installation of the planned improvements, the developer has requested a 2,346 square foot non-exclusive drainage easement from the City in the northwest corner of the City property adjacent to Kechter Road. 24. First Reading of Ordinance No. 129, 2012, Authorizing the Conveyance of a Non-Exclusive Utility Easement on City Property to the Nunn Telephone Company. Nunn Telephone Company (NTC) currently provides telephone and internet services to portions of northwest Weld County and northeast Larimer County. With an increase in demand from their customers for broadband services, NTC has begun upgrading copper based telephone lines to fiber optic broadband lines. NTC has requested a utility easement from the City of Fort Collins across a portion of Meadow Springs Ranch in order to install approximately 7.0 miles of fiber optic line as part of this upgrade project. The proposed easement alignment would follow an abandoned state highway now used by the City as an access road to the City’s property. 25. Resolution 2012-101 Authorizing a Revocable Permit for Brinkman Construction, Inc. to Access City Property to Complete Mitigation Activities for the Construction of Tilden Street. In 2008, Council adopted Ordinance No. 030, 2008, authorizing the dedication of a portion of City property located at 2313 Kechter Road as Tilden Street. The property located west of the City property has been planned as the Kechter Crossing development. Tilden Street is located along the property boundary between the two properties. The developer of Kechter Crossing, Brinkman Construction, Inc., plans to begin construction of its development soon, including work within the new right-of-way of Tilden Street. This work will require the relocation of a number of site improvements in the right-of-way areas that are owned by the City. City staff has asked the Developer to relocate and replace a number of these site improvements elsewhere on the City property. The revocable permit will allow the developer access to the City property to perform the requested mitigation activities. 26. Resolution 2012-102 Naming Three Alleys Within the Block Bounded by South College Avenue, West Laurel Street, South Mason Street and West Myrtle Street. The Downtown Development Authority has completed a capital improvement project to enhance three public alleys in the aforementioned block. In conjunction with this project, the City of Fort Collins is preparing to name these three alleys. The three proposed names are “Dalzell Alley,” “Corbin Alley,” and “Wattles Alley.” If approved, the alley naming will 144 November 6, 2012 simplify way-finding for pedestrians, bicyclists, drivers, delivery personnel and emergency responders. 27. Resolution 2012-103 Making Findings of Fact and Related Determinations Regarding the Appeal of the August 7, 2012 Administrative Hearing Officer’s Decision Regarding the Aspen Heights PDP. On August 16, 2012, the City of Fort Collins Hearing Officer issued a written decision approving Aspen Heights PDP, with one condition ensuring proper landscaping associated with the clubhouse. On August 30, 2012, Mr. Tom Lawton filed a Notice of Appeal seeking redress of the Hearing Officer’s decision. On October 30, 2012, City Council voted 5 - 0 to modify the Hearing Officer’s decision by requiring the following: 1. It shall be a condition of approval of the PDP that the applicant provide a shuttle bus for use of project residents, with the understanding that if there is insufficient ridership demand to sustain such shuttle bus, then the applicant may apply for a minor amendment to the approved Final Plan to reduce or eliminate the shuttle bus requirements of this condition. 2. It shall be a condition of approval of the P.D.P. that the applicant shall, at the time of submittal of the Final Plan and in consultation with City staff, enhance the design of the naturalized drainage channel transecting the property in such a manner as to provide an increased width and vegetation diversity; and to enhance the regional stormwater detention pond through variation in grading patterns and vegetation diversity, to the extent reasonably feasible. In order to complete the record regarding this appeal, Council should adopt a Resolution making findings of fact and finalizing its decision on the Appeal. 28. Postponement of Resolution 2012-099 Adopting a Water Supply and Demand Management Policy to November 20, 2012. At the October 30, 2012 Adjourned Meeting, Council voted to postpone consideration of this Resolution to November 6 to allow time for staff to revise the Water Supply and Demand Management Policy, based on Council’s input. There is not adequate time to make these revisions and provide supporting material before the publication of the November 6 agenda. Staff requests postponement of consideration of this Resolution to November 20, 2012. 29. Routine Deeds. Three quit claim deeds, encompassing 105 easements within the Southwest Enclave Annexation from Poudre Valley REA. These easements were transferred to the City along with the purchase of Poudre Valley REA’s electric systems in the annexation. 30. Routine Easement. 145 November 6, 2012 Easement for construction and maintenance of public utilities from TAV Property Management, Inc., to install an electric transformer at 504 South College Avenue. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Nelson. 6. Second Reading of Ordinance No. 107, 2012, Being the Annual Appropriation Ordinance of the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for the Fiscal Year 2013 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2013. 7. Items Relating to Water and Electric Development Fees and Charges for 2013. A. Second Reading of Ordinance No. 113, 2012, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. B. Second Reading of Ordinance No. 115, 2012, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. 9. Second Reading of Ordinance No. 108, 2012, Appropriating Unanticipated Grant Revenue from Colorado Parks and Wildlife in the Conservation Trust Fund for the Fossil Creek Trail at East Trilby Road. 10. Second Reading of Ordinance No. 109, 2012, Appropriating a Grant from Great Outdoors Colorado for the City’s Portion of Larimer County’s Poudre River Corridor and Regional Trail Initiative Grant. 11. Second Reading of Ordinance No. 110, 2012, Approving a Fourth Amendment to the Fort Collins-Timnath Intergovernmental Agreement Regarding Cooperation on Annexation, Growth Management, and Related Issues, Eliminating Original Terms Related to the Boxelder Overflow Project and Establishing the Terms of Cost Sharing for Design Engineering of Substituted Improvements in the Boxelder Basin. 12. Items Relating to the I-25/SH 392 Interchange Project. A. Second Reading of Ordinance No. 117, 2012, Establishing a Special Fee to Be Paid by the Owners of Property Within Close Proximity to the Reconstructed Interchange at the Intersection of Interstate 25 and State Highway 392. B. Second Reading of Ordinance No. 118, 2012, Approving the First Amended Intergovernmental Agreement Pertaining to the Development of the Interstate 25/State Highway 392 Interchange. 36. Second Reading of Ordinance No. 114, 2012, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges 146 November 6, 2012 Ordinances on First Reading were read by title by City Clerk Nelson. 13. First Reading of Ordinance No. 119, 2012, Appropriating Unanticipated Revenue in the General Fund to the Fort Collins Housing Authority to Fund Affordable Housing and Related Activities. 14. First Reading of Ordinance No. 120, 2012, Appropriating Unanticipated Grant Revenue from Great Outdoors Colorado in the Conservation Trust Fund for the Fossil Creek Trail at County Road 38E Project. 15. First Reading of Ordinance No. 121, 2012, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the City Code so as to Reflect Inflation in Associated Costs of Services. 16. First Reading of Ordinance No. 122, 2012, Amending Chapter 15 of the City Code Pertaining to Contractor Licenses. 17. First Reading of Ordinance No. 123, 2012 Amending Section 24-91 of the City Code Regarding the Naming of Arterial and Collector Streets. 18. First Reading of Ordinance No. 124, 2012, Amending Section 2-427 of the City Code Relating to Membership of the Transportation Board. 19. First Reading of Ordinance No. 130, 2012, Amending the Land Use Code by Designating Certain Types of Multi-family Housing Development Projects as Being Subject to Planning and Zoning Board Review. 20. First Reading of Ordinance No. 125, 2012 Amending Section 26-543 of the City Code to Update the Stormwater Master Drainage Plans to Include Basin-Specific Water Quality Best Management Practices and Stream Restoration. 21. First Reading of Ordinance No. 126, 2012, Authorizing the Conveyance of City-owned Property Known as the Maxwell Farm and Related Water Rights Subject to a Conservation Easement and Authorizing a Related Raw Water Transfer Agreement. 22. First Reading of Ordinance No. 127, 2012, Authorizing the Conveyance of City-owned Property Known as the Vangbo Property Subject to a Conservation Easement. 23. First Reading of Ordinance No. 128, 2012, Authorizing the Conveyance of a Non-Exclusive Drainage Easement on City Property to Cloud Peak Ranch, LLC. 24. First Reading of Ordinance No. 129, 2012, Authorizing the Conveyance of a Non-Exclusive Utility Easement on City Property to the Nunn Telephone Company. Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. 147 November 6, 2012 Consent Calendar Follow-up Mayor Pro Tem Ohlson requested follow-up and details regarding community parkland fees and capital expansion fees prior to Second Reading regarding Item No. 15, First Reading of Ordinance No. 121, 2012, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the City Code so as to Reflect Inflation in Associated Costs of Services. Mayor Pro Tem Ohlson noted, with regard to Item No. 20, First Reading of Ordinance No. 125, 2012 Amending Section 26-543 of the City Code to Update the Stormwater Master Drainage Plans to Include Basin-Specific Water Quality Best Management Practices and Stream Restoration, that 90% of the public wants streams restored in Fort Collins but the current funding scenario means it will take at least 80 years or longer to accomplish that goal. Councilmember Reports Councilmember Troxell reported on a tour of Colorado Iron and Metal. He requested a report regarding waste diversion and the relationship of these types of private sector businesses to the City. Councilmember Manvel reported on an event for the Dental Connections Program and discussed Make a Difference Day. Councilmember Horak reported on a winter clothing distribution program sponsored by the North Fort Collins Business Association. Resolution 2012-103 Making Findings of Fact and Related Determinations Regarding the Appeal of the August 7, 2012 Administrative Hearing Officer’s Decision Regarding the Aspen Heights PDP, Adopted The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY On August 16, 2012, the City of Fort Collins Hearing Officer issued a written decision approving Aspen Heights PDP, with one condition ensuring proper landscaping associated with the clubhouse. On August 30, 2012, Mr. Tom Lawton filed a Notice of Appeal seeking redress of the Hearing Officer’s decision. On October 30, 2012, City Council voted 5 - 0 to modify the Hearing Officer’s decision by requiring the following: 1. The applicant must provide a shuttle bus for use of project residents, with the understanding that if there is insufficient ridership demand to support the need for the shuttle bus, the applicant may apply for a minor amendment to the approved Final Plan to reduce or eliminate this shuttle bus requirement. 148 November 6, 2012 2. To the extent reasonably feasible, the applicant shall, at the time of submittal of the Final Plan and in consultation with City staff: (a) enhance the design of the naturalized drainage channel transecting the property in such a manner as to provide an increased width and/or vegetation diversity provided that such enhancement does not unduly diminish the capacity of the channel to carry the anticipated stormwater flow; and (b) enhance the wetland mitigation area through increased size and/or vegetation diversity. In order to complete the record regarding this appeal, Council should adopt a Resolution making findings of fact and finalizing its decision on the Appeal. BACKGROUND / DISCUSSION The Appellants’ Notices of Appeal were based on allegations that the Hearing Officer failed to conduct a fair hearing and failed to properly interpret and apply relevant provisions of the Land Use Code. At the October 30, 2012 hearing on the matter, Council considered the testimony of City staff, the appellants and the applicants. In subsequent discussion at this hearing, Council determined that the Hearing Officer did not fail to conduct a fair hearing. Regarding the issue of whether or not the Hearing Officer properly interpreted and applied relevant provisions of the Land Use Code, Council offered a motion to determine that the Hearing Officer did not fail to properly interpret and apply relevant provisions of the Land Use Code subject to two conditions. This motion had the effect of modifying the Hearing Officer’s decision by adding the two aforementioned requirements. City Council voted 5 – 0 to approve the motion thus modifying the decision of the Hearing Officer.” Councilmembers Horak and Kottwitz recused themselves from the discussion of Resolution 2012- 103 Making Findings of Fact and Related Determinations Regarding the Appeal of the August 7, 2012 Administrative Hearing Officer’s Decision Regarding the Aspen Heights PDP. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2012-103. Eric Sutherland, 3520 Golden Currant, stated a contract does not exist between the City and the developer to require shuttle service from the development. Mayor Pro Tem Ohlson requested a friendly amendment to rephrase a statement relating to the wildlife corridor to be: “as to provide an increased width and vegetation diversity.” Councilmembers Manvel and Poppaw accepted the amendment to the motion. Councilmember Manvel requested input as to whether or not statements made in this Resolution have any legal weight. Deputy City Attorney Eckman replied the Land Use Code allows for both the Planning and Zoning Board and Council to impose conditions on the approval of a development project. All requirements and conditions are outlined in a development agreement with the developer, which is recorded with the Larimer County Clerk and Recorder. The methods of enforcement are set out in the Land Use Code. 149 November 6, 2012 The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Troxell. Nays: none. THE MOTION CARRIED. Consideration of the Appeal of the August 9, 2012 Zoning Board of Appeals Decision to Approve a Variance to Allow the Existing Off-premise Sign (Billboard) Located in the BNSF Railroad Right of Way at 190 West Prospect Road to Be Removed and Reinstalled at a New Location Within the Same Railroad Right of Way at 190 West Prospect Road, Board’s Decision Overturned The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY On August 9, 2012, the Zoning Board of Appeals (ZBA) considered Appeal #2714, submitted by the City of Fort Collins Engineering Department. This Appeal was for a variance to Section 3.8.7(P) of the City of Fort Collins Land Use Code (LUC), which prohibits the construction of new off- premise signs. The variance was requested in order to allow the existing off-premise sign in the BNSF Railroad right of way on the north side of Prospect Road to be relocated within the railroad right of way 70 feet west of its current location. The sign’s current location is in direct conflict with the guideway alignment for the MAX BRT (Bus Rapid Transit) project. The ZBA unanimously approved the variance request as authorized by Section 2.10.1 of the LUC. On August 23, 2012, Richard L. Anderson (the Appellant) filed a Notice of Appeal with the City Clerk. The Appellant alleges that the ZBA: A. Failed to conduct a fair hearing in that: 1. The Board considered evidence relevant to its findings which was grossly misleading; 2. The Board substantially ignored its previously established rules of procedure; 3. The Board exceeded its authority and jurisdiction. B. The Board failed to properly interpret and apply relevant provisions of the Land Use Code. BACKGROUND/DISCUSSION The Sign Code was amended in 1994 to prohibit the construction of new off-premise signs (aka billboards) anywhere in the city. Existing off-premise signs were grandfathered in due to protection afforded them by the Federal Highway Beautification Act. The sign that is the subject of this appeal was constructed pursuant to a sign permit issued prior to 1994 and falls within the scope of the Federal Highway Beautification Act. The City of Fort Collins has purchased an easement within the BNSF Railroad right of way on the east side of the tracks for the proposed MAX BRT guideway alignment. At the current location, the 150 November 6, 2012 existing off-premise sign is in direct conflict with the proposed guideway alignment. Removing the sign without relocating it will require monetary compensation, as required by the Federal Highway Beautification Act. The City of Fort Collins Engineering Department submitted an application to the Zoning Board of Appeals, requesting a variance to relocate the existing sign within the railroad right of way, 70 feet west of its current location. Removing an existing off-premise sign and reconstructing it in a different location is equivalent to the construction of a new off-premise sign; therefore, a variance is needed, even though the new location is on the same property. The setback distance from Prospect Road at the new location will remain unchanged from the Prospect Road setback at the sign’s current location. The appellant, Richard Anderson, owns the two commercial properties at 200 and 220 West Prospect Road, directly west of the Railroad right of way. Mr. Anderson testified at the August 9, 2012 ZBA meeting that he had concerns with billboards in general and with the effect that the relocation of the subject sign might have on the value of his property. In particular, he was concerned about the impact to his two properties if his tenant at 200 West Prospect decided to advertise on the billboard, thereby increasing his business and creating a parking problem for the tenants of his other building (lines 19 – 39, page 5 and lines 1 – 2, page 6 of the verbatim transcript, Attachment 5). Mr. Anderson is appealing the decision of the ZBA. ACTION OF THE ZBA ZBA Appeal #2714 originally appeared on the July 12, 2012 ZBA agenda, but was postponed to the August 9, 2012 hearing. After testimony from the staff, the applicant, and the public, the ZBA unanimously approved the variance request on August 9, 2012 to allow the sign to be moved 70 feet west of its current location. THE QUESTIONS COUNCIL NEEDS TO ANSWER 1. Did the ZBA fail to conduct a fair hearing? 2. Did the ZBA fail to properly interpret and apply relevant provisions of the Land Use Code? ALLEGATIONS ON APPEAL On August 23, 2012, Richard L. Anderson filed a Notice of Appeal with the City Clerk. The appeal alleges that the Board failed to conduct a fair hearing and failed to properly interpret and apply relevant provisions of the Land Use Code, specifically Section 2.10.2(H). A. Failure to Conduct a Fair Hearing Allegation: The ZBA considered evidence relevant to its findings which was grossly misleading. Mr. Anderson states in the Notice of Appeal, “The ZBA further considered the facts that were misleading in that information presented reflected that the signage was to be continued in substantially the same form as it currently or has historically existed. The current sign has only one used/usable sign face (viewable by eastbound traffic). It is understood that there is intent to 151 November 6, 2012 significantly increase the impact of the sign by allowing signage on both sides of the pole (viewable from both east and west). The proposed signage would have a substantially greater impact than the existing signage.” Staff Response The staff report provided to the ZBA and the verbatim transcript of the hearing contain no mention of the existing sign having only one used or usable face or that the relocated sign might have two. However, the slides contained in the staff’s Powerpoint presentation for the ZBA meeting show that the existing sign has only one face and that a mock-up of the relocated sign at the new location shows sign faces on both sides of the sign (see slides 3, 16, and 17 on Attachment 3). The motion- maker moved to approve the variance based on the nominal, inconsequential standard of the LUC, noting that “It’s on the same property, it’s the same sign, it’s moving west.” (Lines 14 - 17, page 12, and lines 11 - 23, page 13 of the verbatim transcript, Attachment 5). Since there was no discussion during the hearing about the number of faces of the existing sign or of the proposed, relocated sign, it’s difficult to determine that the board members considered evidence which was grossly misleading or that they “understood that there is an intent to significantly increase the impact of the sign…” as stated by Mr. Anderson. Allegation: The ZBA substantially ignored its previously established rules of procedure. Another fair hearing argument raised by Mr. Anderson is that the ZBA ignored previously established rules of procedure. However, the Appeal does not contain any specific assertions as to how the ZBA ignored its established rules of procedure. Staff Response There are no specific assertions to respond to. Allegation: The ZBA exceeded its authority and jurisdiction. The Appellant argues that the Board exceeded its authority and jurisdiction in granting the variance but presents no specific argument in support of that assertion, other than referencing Section 2.10.2 – Step 8 of the Land Use Code, which reads as follows: Section 2.10.2 Variance Review Procedures (H) Step 8 (Standards): Applicable, and the Zoning Board of Appeals may grant a variance from the standards of Articles 3 and 4 only if it finds that the granting of the variance would neither be detrimental to the public good nor authorize any change in use other than to a use that is allowed subject to basic development review; and that: (1) by reason of exceptional physical conditions or other extraordinary and exceptional situations unique to such property, including, but not limited to, physical conditions such as exceptional narrowness, shallowness or topography, or physical conditions which hinder the owner's ability to install a solar energy system, the strict application of the standard sought to be varied would result in unusual and 152 November 6, 2012 exceptional practical difficulties, or exceptional or undue hardship upon the occupant of such property, or upon the applicant, provided that such difficulties or hardship are not caused by the act or omission of the occupant or applicant; (2) the proposal as submitted will promote the general purpose of the standard for which the variance is requested equally well or better than would a proposal which complies with the standard for which the variance is requested; or (3) the proposal as submitted will not diverge from the standards of the Land Use Code that are authorized by this Division to be varied except in a nominal, inconsequential way when considered in the context of the neighborhood, and will continue to advance the purposes of the Land Use Code as contained in Section 1.2.2. Any finding made under subparagraph (1), (2) or (3) above shall be supported by specific findings showing how the proposal, as submitted, meets the requirements and criteria of said subparagraph (1), (2) or (3). Staff Response It is possible that the Appellant is arguing that a “new sign” could not be authorized by variance because the granting of such a variance would be a “use variance” or a “change in use” which would conflict with the standards in the aforementioned Section 2.10.2(H). However, that Section and other Sections of 2.10 only prohibit the Board from authorizing certain types of “changes in use” and there’s no mention at all of a prohibition against “use variances”. ZBA Appeal #2714 was presented before the Board as a request for a variance from the requirement of Land Use Code Section 3.8.7(P), which prohibits the construction of any new off-premise sign. Since all of the permitted and prohibited uses in the Land Use Code are contained in the Article 4 zone district standards, and not in Article 3, the variance request was not for a variance to any of the use standards in Article 4, but was rather a request only for relief from Section 3.8.7(P) of the Land Use Code. Section 3.8.7(A)(1) of the Land Use Code states that “Signs shall be permitted in the various zone districts as accessory uses in accordance with the regulations contained in this Section.” Additionally, Section 3.8.1, “Accessory Buildings, Structures and Uses”, lists signs as an accessory use. All zone districts in Article 4 authorize “accessory uses”. The property in question is located in the CC – Community Commercial zone district wherein “accessory uses” are listed as a permitted use (Section 4.18(B)(1)(a)2.). Staff believes that the construction of this billboard on the other side of the railroad track does not constitute a “use variance” since the sign is classified as an accessory use, which is a permitted use. Similarly, it is not a change in use since the current use is an accessory use sign and the proposed use is an accessory use sign. City Council must determine whether or not the ZBA exceeded its authority or jurisdiction by granting the variance on the basis of any violation of Section 2.10.2(H) regarding uses. B. Failure to Properly Interpret and Apply Relevant Provisions of the City Code, the Land Use Code and Charter, Specifically Land Use Code Section 2.10.2(H). 153 November 6, 2012 Allegation: The ZBA based its granting of the variance on the desire to save the City money. The appellant argues that “The purpose for the ZBA’s granting of the subject variance can be explained in no other way than a desire to save the City money. While it is certainly laudable that the that City staff and the ZBA focused on preserving taxpayer dollars, Section 2.10.2 does not allow the ZBA to grant a variance on the basis that there will be a positive impact on the public coffers.” Staff response On the question of the proper interpretation of the Land Use Code, Section 2.10.2(H) of the Land Use Code is the section that is referenced in the Notice of Appeal. This section sets forth the standards by which the ZBA is to make a determination as to whether or not a variance application can be approved, approved with conditions, or denied. In order to approve a variance, the Board must find that the application satisfies one or more of the following criteria: 2.10.2(H)(1) by reason of exceptional physical conditions or other extraordinary and exceptional situations unique to such property, including, but not limited to, physical conditions such as exceptional narrowness, shallowness or topography, or physical conditions which hinder the owner's ability to install a solar energy system, the strict application of the standard sought to be varied would result in unusual and exceptional practical difficulties, or exceptional or undue hardship upon the occupant of such property, or upon the applicant, provided that such difficulties or hardship are not caused by the act or omission of the occupant or applicant; 2.10.2(H)(2) the proposal as submitted will promote the general purpose of the standard for which the variance is requested equally well or better than would a proposal which complies with the standard for which the variance is requested; or 2.10.2(H)(3) the proposal as submitted will not diverge from the standards of the Land Use Code that are authorized by this Division to be varied except in a nominal, inconsequential way when considered in the context of the neighborhood, and will continue to advance the purposes of the Land Use Code as contained in Section 1.2.2. The record reflects that the Board granted the variance after finding that it would not be detrimental to the public good to grant the variance and that the proposal as submitted will not diverge from the standards of the Land Use Code except in a nominal and inconsequential way when considered in the context of the neighborhood, and will continue to advance the purposes of the Land Use Code as contained in Section 1.2.2. (Beginning on line 14, page 12 of the verbatim transcript and continuing to the end, Attachment 5). The Appellant argues that the Board based its granting of the variance solely on the desire to save money for the City (first paragraph on Page 1 of the Appellant’s attachment to the Notice of Appeal). The record shows that there was discussion at the ZBA hearing regarding the requirement to compensate the sign owner in the event the sign is required to be removed and not allowed to be relocated. The staff report and the City Engineering Department’s justification statement that were presented to the board also contained references to monetary compensation. However, the record shows that no further discussion regarding such compensation occurred just prior to the motion to 154 November 6, 2012 approve the variance or during discussion on the motion and the actual vote. The Board granted the variance upon the finding that it would not be detrimental to the public good to do so, and that the granting of the variance fit the nominal and inconsequential requirement of Land Use Code Section 2.10.2(H)(3). The Council should examine the findings and motion of the Board in granting of the variance to determine if the decision to approve the variance was on the basis of saving money or on the finding that it would not be detrimental to the public good and that it satisfied the nominal and inconsequential standard in Sec. 2.10.2(H)(3) of the LUC. SUMMARY The appellant alleges that the Zoning Board of Appeals failed to conduct a fair hearing and failed to properly interpret and apply relevant provisions of the Fort Collins Land Use Code. The Staff Report presented to the Board concluded that the variance request satisfied one or more of the standards necessary for the granting of a variance as required in Section 2.10.2(H) of the Land Use Code. The ZBA unanimously approved ZBA Appeal #2714 after finding that the variance request satisfied the nominal, inconsequential standard in Section 2.10.2(H)(3) of the Land Use Code. Council should review the record to determine whether or not the Board held a fair hearing and whether or not the Board properly interpreted and applied the relevant provisions of the Land Use Code in approving the variance to allow the existing off-premise sign at 190 West Prospect Road to be relocated 70 feet to the west.” City Attorney Roy stated Council will be considering an appeal of a Zoning Board of Appeals decision. He outlined the appeal process and Council’s possible actions. Councilmember Troxell stated he attended a site visit in order to determine the current and proposed location of the sign. Peter Barnes, Zoning Supervisor, discussed the need for the sign relocation as its current location is in direct conflict with the proposed route for the MAX/BRT project. The variance request to relocate the sign was unanimously approved by the Zoning Board of Appeals which found the variance would not be detrimental to the public good and found that the proposal satisfied the nominal and inconsequential standard. Barnes briefly discussed the allegations of the appeal and the staff response to those allegations. He noted the possibility of the new sign having two faces was never discussed at the hearing. APPELLANT PRESENTATION Brad March, attorney representing the Anderson family, Appellant, stated the relocated sign would be five feet from the border of the Anderson property. He argued the reason for the variance is solely to save taxpayer dollars. He stated the Land Use Code no longer allows billboard signs; therefore the relocation of this sign is detrimental to the public good. 155 November 6, 2012 APPLICANT PRESENTATION Terry Tyrrell, Design Consultant Project Manager for the MAX/BRT project, Applicant, stated the variance to relocate the sign was requested in order to allow for the MAX/BRT project to go forward. He argued the Zoning Board of Appeals did conduct a fair hearing. Mark Barnes, Brownstein, Hyatt, Farber, and Shreck, LLC, Next Media representative, discussed the cooperation and negotiations between the City and Next Media to relocate the sign. He noted the Code does not define the term “detrimental to the public good” and argued that it is clear the Zoning Board of Appeals determined this met the standard for a variance regardless of the cost. He stated the existing sign will be relocated and there is nothing to prohibit Next Media from displaying advertisements on both sides of the sign. APPELLANT REBUTTAL Mr. March again argued the sole reason for this variance is money savings; however, this sign is detrimental to the public good as no billboard signs are allowed in the City. Additionally, it appears this is going to be a two-sided sign which was never discussed at the Zoning Board of Appeals hearing. APPLICANT REBUTTAL Mr. Barnes stated the fact the two-sided aspect was not discussed was because the exact sign, which is already two-sided, is going to be relocated. COUNCIL DISCUSSION Councilmember Troxell stated there is no frame on the now empty side of the sign. He argued a modification would be required in order to display on that side. Mr. Barnes replied this sign does have brackets in place that will allow for the display of advertising on the second side. Councilmember Troxell argued there is no existing framework for advertising on the second side. Jamie Rideout, Next Media, replied the sign’s east face is engineered and built to have a face on it; currently, it only has angle iron on which to attach a face. Councilmember Troxell requested that Barnes explain his quote referencing the sign as a “new sign.” Barnes replied the variance would not have been required if it were not a new sign. If a structure is moved, it ceases to exist at its original location and needs to comply with all regulations at the new location. Mayor Weitkunat asked if the new sign would need to comply with existing regulations. Barnes replied regulations have not changed regarding height and setback for this particular sign since 1985. The regulation that has changed, and therefore required a variance, was that the City no longer allows off-premise signs. Councilmember Manvel noted this variance is not nominal and inconsequential to the Anderson family, nor is it nominal and inconsequential to the City as the sign’s value may now double with 156 November 6, 2012 advertising on two sides. Barnes replied the nominal and inconsequential finding is to be in the context of the neighborhood. Councilmember Manvel noted the long-term goal of the City is to remove these types of signs and asked how it is not detrimental to the public good to up the future cost of that removal by changing a one-sided sign to a two-sided sign. Barnes replied the original permit was issued for a two-sided sign; therefore, the second side could have been installed at any point without an additional permit. The replacement cost of the sign would be based on the sign being a two-sided sign, from the perspective of Next Media. Councilmember Horak made a motion, seconded by Councilmember Kottwitz, that the Zoning Board of Appeals did not fail to conduct a fair hearing. Councilmember Manvel noted a comment was made at the original hearing that the new sign was to be substantially the same; however, a sign displaying two sides of advertising does not appear to be substantially the same as a sign displaying one side of advertising. Yeas: Weitkunat, Horak, Kottwitz, Troxell, and Ohlson. Nays: Manvel and Poppaw. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Poppaw, that the Zoning Board of Appeals did fail to properly interpret and apply the relevant provisions of Land Use Code Section 2.10.2(H), due to the fact that this particular sign relocation is detrimental to the public good. Councilmember Horak stated this sign relocation is not good for the public as the City’s policy is to have fewer, and less prominent, billboards. Councilmember Troxell stated the City’s sign code was ignored by the Zoning Board of Appeals in making its decision. Councilmember Manvel stated that the fair market value for the sign to be dismantled should be based on the existing revenue stream of the single-sided sign. Mayor Weitkunat noted public goods other than just the cost of the sign need to be considered. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 114, 2012, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges, Adopted on Second Reading The following is staff’s memorandum for this item. 157 November 6, 2012 “EXECUTIVE SUMMARY The 2013 electric rate increases which average 4.33% are proposed to vary by customer class from 3.35% to 5.33%. The proposed changes will impact individual electric customers more or less than the customer class averages and will vary by season. This Ordinance was adopted on First Reading on October 16, 2012, by a vote of 6-1 (Nays: Kottwitz).” Lance Smith, Utilities Strategic Financial Planning Manager, briefly discussed the proposed rate changes. Eric Sutherland, 3520 Golden Currant, requested information regarding the new substation rate class. He supported time of use rates with Smart Meter usage. Sean Dougherty, 1344 Catalpa, asked about the difference between commercial and residential class rates. Steve Catanach, Light and Power Operations Manager, stated a contract customer is now moving to a standard rate as a result of the contract expiration. Due to the configuration with which the customer is served, the substation rate was developed. He noted commercial rates are not subsidizing residential rates, nor are residential rates subsidizing commercial rates. Each service class pays for its own cost. Councilmember Troxell asked how the AMI structure supports tiered rates. Catanach replied the newly installed meters will provide data allowing billing on a time of use rate. He stated staff plans to bring back the issue before Council next year. The AMI infrastructure is not needed to bill on a tiered rate basis. Councilmember Horak made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 114, 2012, on Second Reading. Councilmember Horak noted 83% of the rate increase is directly due to the wholesale increase from Platte River Power Authority. Of that, the majority of the increase is from fuel expense and the reduction in surplus revenues. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Horak. Nays: Kottwitz and Troxell. THE MOTION CARRIED. Resolution 2012-104 Accepting Advisory Opinion and Recommendation No. 2012-2 of the Ethics Review Board, Adopted The following is staff’s memorandum for this item. 158 November 6, 2012 “EXECUTIVE SUMMARY Under City Code Section 2-569, City Councilmembers may present to the Council Ethics Review Board inquiries regarding the application of state or local ethical rules to actual or hypothetical situations involving potential conflicts of interest. On October 22, 2012, and October 30, 2012, the Ethics Review Board met for the purpose of responding to an inquiry submitted to the Board by Mayor Weitkunat. The question submitted by the Mayor is whether, in the Board’s opinion, she would have a conflict of interest in participating in upcoming decisions of either the City Council or the Urban Renewal Authority regarding the possible redevelopment of the Foothills Mall. The Mayor has presented the question because of the proximity of her residence to the redevelopment site. As required by the Code, the Board has forwarded its opinion and recommendations to the full Council for its consideration. Adoption of the Resolution would indicate that the majority of the Council agrees with the Board’s opinion and recommendations.” Mayor Weitkunat recused herself from the discussion of the item. City Attorney Roy reviewed the role of the Ethics Review Board. He stated the Board came to the conclusion that the Mayor does have a conflict of interest with regard to the possible mall redevelopment, due to the proximity of her residence to the site. However, the Board came to the conclusion that the Mayor does not, at the present time, have a conflict of interest in her role as the Chair of the Urban Renewal Authority (URA) as its current rules regarding conflicts of interest are different. Additionally, the Board recommended that the Council consider modifying the City Code, which presently exempts the Urban Renewal Authority from the City Charter’s conflict of interest rules, and make the rules the same for the URA Board and Council. Councilmember Manvel stated, as a member of the Ethics Review Board, it did appear the Mayor’s property value would increase as a result of the mall redevelopment. Councilmember Poppaw, as a member of the Ethics Review Board, agreed with Councilmember Manvel’s assessment. It did appear the benefit to Mayor Weitkunat’s property value would be greater than that of the general public. Councilmember Troxell noted there is a possibility that the Mayor’s neighborhood could be negatively impacted due to the redevelopment. Councilmember Manvel stated real estate professionals were consulted and did indicate an increase in property values. Councilmember Kottwitz stated, as a member of the Ethics Review Board, she disagreed that there was potentially a substantial financial impact, particularly given the property location being across Swallow Road. Councilmember Horak stated the real estate professional’s report does not appear to be as clear as the conclusion made by the Board. Councilmember Poppaw replied the process needed to move quickly and it would have been extraordinarily expensive to have an actual appraisal done. The Board came to the decision that a reasonable person may conclude that the Mayor’s property value may increase. 159 November 6, 2012 Councilmember Troxell asked if the Board could have come to the conclusion that there was not enough information, thereby allowing the Mayor to make her own decision regarding the recusal. City Attorney Roy replied there is no requirement that the Board render a definitive opinion. Ultimately, under the Charter and the Code, it remains the responsibility of the individual Councilmember to decide whether or not to declare a conflict of interest. The purpose of getting an advisory opinion is to assist the Mayor in that decision. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2012-104. Councilmember Manvel noted the URA rules are different than those of the City and only require recusal should a member have a financial interest in the URA project itself. He encouraged the Mayor to follow the rules of the City with regard to her recusal from the URA aspects of the issue. Councilmember Poppaw stated the URA rules should be in line with those of the City. Councilmember Horak stated he would support the motion but suggested the conflict of interest rules may need to be clarified in the future. The vote on the motion was as follows: Yeas: Manvel, Ohlson, Poppaw and Horak. Nays: Kottwitz and Troxell. THE MOTION CARRIED. Other Business Councilmember Horak suggested billboard signs be treated the same as all other properties with regard to public projects. Adjournment Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Manvel, to adjourn to Thursday, November 8, 2012 at 6:00 p.m., so that the Council may consider any additional business that may come before the Council. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. The meeting adjourned at 8:29 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 160