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HomeMy WebLinkAboutCOUNCIL - COMPLETE AGENDA - 10/01/2013 - COMPLETE AGENDAKaren Weitkunat, Mayor Gerry Horak, District 6, Mayor Pro Tem Council Chambers Bob Overbeck, District 1 City Hall West Lisa Poppaw, District 2 300 LaPorte Avenue Gino Campana, District 3 Wade Troxell, District 4 Ross Cunniff, District 5 Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Assisted hearing devices are available to the public for Council meetings. Please call 221-6515 (TDD 224-6001) for assistance. REGULAR MEETING October 1, 2013 Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring October 6-12, 2013 as Public Power Week. Regular Meeting 6:00 p.m. PLEDGE OF ALLEGIANCE 1. CALL MEETING TO ORDER. 2. ROLL CALL. Page 2 3. AGENDA REVIEW: • City Manager Review of Agenda. • Consent Calendar Review. This Review provides an opportunity for Council and citizens to pull items from the Consent Calendar. Anyone may request an item on this Calendar be “pulled” off the Consent Calendar and considered separately. N Council opportunity to pull Consent Calendar items. (will be considered under Item No. 19) N Citizen opportunity to pull Consent Calendar items. (will be considered under Item. No. 23) 4. CITIZEN PARTICIPATION 5. CITIZEN PARTICIPATION FOLLOW-UP This is an opportunity for the Mayor or Councilmembers to follow-up on issues raised during Citizen Participation. CONSENT CALENDAR The Consent Calendar consists of Items 6 through 15. This Calendar is intended to allow the City Council to spend its time and energy on the important items on a lengthy agenda. Staff recommends approval of the Consent Calendar. The Consent Calendar consists of: ! Ordinances on First Reading that are routine ! Ordinances on Second Reading that are routine ! Those of no perceived controversy ! Routine administrative actions. Individuals who wish to make comments regarding items remaining on the Consent Calendar or wish to address the Council on items not specifically scheduled on the agenda must first be recognized by the Mayor or Mayor Pro Tem. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Mayor may reduce the time allowed for each individual. Speakers are asked to: ! State your name and address for the record. ! Keep comments brief; if available, provide a written copy of statement to City Clerk. ! Address your comments to Council, not the audience. ! Promptly cease your comments when the allotted time expires. ! You may not yield part or all of your time to another and another speaker will not be credited with time requested but not used by you. ! Applause, outbursts or other demonstrations by the audience are not allowed. Page 3 6. Second Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. This Ordinance, unanimously adopted on First Reading on September 17, 2013, requests approval of an agreement for the lease-purchase of vehicles and equipment for the cost of $911,887. Payments under the agreement at the 2.28% interest rate will not exceed $193,489 in 2014. Money for 2014 lease-purchase payments is included in the 2014 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 0.67%. A competitive process was used to select Pinnacle Public Finance for this lease. A 2013 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease- purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. 7. Second Reading of Ordinance No. 127, 2013 Repealing Article II of Chapter 15 of the City Code in its Entirety. This Ordinance, unanimously adopted on First Reading on September 17, 2013, repeals Article II of Chapter 15 of the City Code in its entirety. Article II of Chapter 15 of the City Code addresses intrusion, robbery, fire and other alarm systems. This Article, last updated in 1972, is outdated due to the great advances in security systems technology over the years and needs to be repealed. 8. Second Reading of Ordinance No. 129, 2013, Amending Section 5-47 of the City Code Pertaining to the International Property Maintenance Code. The purpose of this item is to propose Code amendments that will address ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. This Ordinance, unanimously adopted on First Reading on September 17, amends the International Property Maintenance Code relating to Deficient Structures and creates a Vacant & Dangerous Buildings Registry. Minor revisions have been made on Second Reading to clarify the definition of “deficient”. 9. First Reading of Ordinance No. 131, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds And Authorizing the Transfer of Appropriated Amounts between Funds or Projects. The annual Clean-Up Ordinance allows for the appropriation of expenses related to unanticipated revenue, grants and unforeseen costs that had not previously been budgeted. The purpose of this annual Clean-Up Ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2013 budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operational expenses. 10. First Reading of Ordinance No. 132, 2013, Appropriating Unanticipated Grant Revenue from the Institute of Museum and Library Services in the Museum Fund for “Living with Fire: A Community Responds” Grant Project. The purpose of this item is to appropriate $138,933 in grant funds awarded to Fort Collins Museum of Discovery by the Institute of Museum and Library Services. 11. First Reading of Ordinance No. 133, 2013, Appropriating Prior Year Reserves in the Light & Power, Water, Wastewater and Stormwater Funds for the 800 MHz Radio Communication System Capital Project. The purpose of this item is to appropriate funding for the purchase and installation of an 800 MHz radio system for the Utilities Department. Conversion of the former wide-band system to a narrow- band system was completed at the beginning of 2013. The narrow-band system is not meeting the Utilities' safety and communications needs for field personnel and infrastructure protection. Page 4 12. First Reading of Ordinance No. 134, 2013, Appropriating Prior Year Reserves in the Water Fund for Two Water Main Replacement Projects. The purpose of this item is to fund project design for the water main replacement on College Avenue and for design and construction of water main replacement on Meldrum Street. 13. Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreement. A. First Reading of Ordinance No. 135, 2013, Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise for the Delivery of Potable Water. B. First Reading of Ordinance No. 136, 2013, Authorizing the Mayor to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise. The purpose of this item is twofold: 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. 14. First Reading of Ordinance No. 137, 2013, Designating 1501 Peterson Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owners of the property, Robert and Sally Linton, are initiating this request for Fort Collins Landmark designation of the Crane Property at 1501 Peterson Street. 15. Resolution 2013-082 Making Appointments to the Youth Advisory Board. This Resolution fills three vacancies on the Youth Advisory Board. END CONSENT 16. Consent Calendar Follow-up. This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. 17. Staff Reports. 18. Councilmember Reports. 19. Consideration of Council-Pulled Consent Items. Page 5 DISCUSSION ITEMS The method of debate for discussion items is as follows: ! Mayor introduces the item number and subject; asks if formal presentation will be made by staff ! Staff presentation (optional) ! Mayor requests citizen comment on the item (five-minute limit for each citizen) ! Council questions of staff on the item ! Council motion on the item ! Council discussion ! Final Council comments ! Council vote on the item Note: Time limits for individual agenda items may be revised, at the discretion of the Mayor, to ensure all citizens have an opportunity to speak. Please sign in at the table in the back of the room. The timer will buzz when there are 30 seconds left and the light will turn yellow. It will buzz again at the end of the speaker’s time. 20. Resolution 2013-083 Expressing the City Council’s Support for the Construction of a New County Office Building in Loveland, Colorado. (staff: Ginny Sawyer; 2 minute staff presentation; 15 minute discussion) The purpose of this item is to show support for Larimer County’s desire to build a new County office building in Loveland, Colorado and for the ballot measure that would authorize the same. 21. Items Relating to a Citizen Initiative on the November 5 Ballot. (staff: Darin Atteberry, Laurie Kadrich, Steve Roy, Dan Weinheimer; 10 minute staff presentation; 90 minute discussion) A. Resolution 2013-084 Urging the Registered Electors of the City to Vote in Favor of a Proposed Moratorium on Hydraulic Fracturing and the Storage of its Waste Products Within the City of Fort Collins or under its Jurisdiction at the November 5 Special Election. (Option #1) B. Resolution 2013-085 Urging the Registered Electors of the City to Vote Against a Proposed Moratorium on Hydraulic Fracturing and the Storage of its Waste Products Within the City of Fort Collins or under its Jurisdiction at the November 5 Special Election. (Option #2) The purpose of this item is to encourage voters to vote for or against, depending upon on the option chosen by Council, during the upcoming election. 22. Resolution 2013-086 Adopting the Midtown Plan as an Element of the Comprehensive Plan of the City of Fort Collins. (staff: Megan Bolin, Bruce Hendee; 10 minute staff presentation; 45 minute discussion) The purpose of the Midtown Plan is to create a long-term vision that will compliment current and forthcoming investment to revitalize the corridor. Midtown has been defined as the College Avenue commercial corridor between Prospect Road to the north, and Fairway Lane to the south. This approximately 3 ½ mile area has been referred to as the “community spine” in City Plan, and continues to be a targeted area for public investment. An extensive public process was undertaken to engage and solicit input from stakeholders. The Plan articulates a bold vision for Midtown that includes higher-density, transit-oriented development; recommendations for implementing the vision include concepts for improving the transportation network, buildings, and public spaces. Page 6 23. Consideration of Citizen-Pulled Consent Items. 24. Other Business. a. Consideration of a motion to adjourn into Executive Session after the Water Utility Enterprise Board meeting. 25. Adjournment. Every Council meeting will end no later than 10:30 p.m., except that: (1) any item of business commenced before 10:30 p.m. may be concluded before the meeting is adjourned and (2) the City Council may, by majority vote, extend a meeting until no later than 12:00 a.m. for the purpose of considering additional items of business. Any matter which has been commenced and is still pending at the conclusion of the Council meeting, and all matters scheduled for consideration at the meeting which have not yet been considered by Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. WATER UTILITY ENTERPRISE MEETING October 1, 2013 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Consideration and Approval of the Minutes of the September 3, 2013 Water Utility Enterprise Board Meeting. 4. Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreements. (staff: Lance Smith, Brian Janonis, Jon Haukaas, Kevin Gertig; 10 minute staff presentation; 10 minute discussion) A. Resolution No. 008 Authorizing the President of the Board to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins for the Delivery of Potable Water. B. Resolution No. 009 Authorizing the President of the Board to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins- Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins. The purpose of this item is twofold: WATER UTILITY ENTERPRISE AGENDA 7 of 433 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. 5. Other Business. 6. Adjournment. 8 of 433 PROCLAMATION WHEREAS, we the citizens of Fort Collins, Colorado, value local control of our community services and have chosen to operate a community-owned, locally controlled, not-for- profit electric utility; and WHEREAS, Fort Collins Utilities and Platte River Power Authority provide our homes, businesses and schools with safe, reliable, environmentally responsible and affordable electricity; and WHEREAS, Fort Collins Utilities and Platte River Power Authority are valuable community assets that contribute substantially to the well-being of local citizens through energy efficiency, customer service, environmental protection, economic development and safety awareness; and WHEREAS, Fort Collins Utilities Light and Power’s current reliability rating of 99.9982 percent continues to be among the best in the nation; and NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim the week of October 6-12, 2013, as PUBLIC POWER WEEK in Fort Collins to honor Fort Collins Utilities and Platte River Power Authority’s consumer- owners, policy makers, and employees who work together to provide the best possible electric service to our community. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 1st day of October, A.D. 2013. __________________________________ Mayor ATTEST: _________________________________ City Clerk 9 of 433 DATE: October 1, 2013 STAFF: Gerry Paul AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 6 SUBJECT Second Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 17, 2013, requests approval of an agreement for the lease-purchase of vehicles and equipment for the cost of $911,887. Payments under the agreement at the 2.28% interest rate will not exceed $193,489 in 2014. Money for 2014 lease-purchase payments is included in the 2014 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 0.67%. A competitive process was used to select Pinnacle Public Finance for this lease. A 2013 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease-purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - September 17, 2013 (w/o attachments) 10 of 433 COPY COPY COPY ATTACHMENT 1 DATE: September 17, 2013 STAFF: Gerry Paul AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT First Reading of Ordinance No. 126, 2013, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment. EXECUTIVE SUMMARY The purpose of this item is to request approval of an agreement for the lease-purchase of vehicles and equipment for the cost of $911,887. Payments under the agreement at the 2.28% interest rate will not exceed $193,489 in 2014. Money for 2014 lease-purchase payments is included in the 2014 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 0.67%. A competitive process was used to select Pinnacle Public Finance for this lease. A 2013 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease-purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. Staff believes acceptance of this lease rate is in the City's best interest. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION This Ordinance authorizes the Purchasing Agent to enter into a lease-purchase financing agreement with Pinnacle Public Finance at 2.28 % interest rate. The agreement is for an original term from the execution date of the agreement to the end of the current fiscal year. The agreement provides for renewable one-year terms thereafter, to a total term of five (5) years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, will not exceed the useful life of the property. This lease-purchase financing is consistent with the financial policies of the City of Fort Collins. All equipment shall be purchased following the City's purchasing ordinances and procedures to ensure that the City realizes all cost savings. The vehicles and equipment financed under the agreement will comply with applicable City policies, and will be in accordance with the goal of optimizing City resources without impacting service to the community. An "Equipment Request" justifying the replacement of each vehicle or piece of fleet equipment is on file with Fleet Services. The fleet manager has researched each request, and approved them based on current and projected maintenance costs, fuel economy, downtime, and relevant safety factors. Other equipment purchases have been approved in accordance with departmental procedures. FINANCIAL / ECONOMIC IMPACTS Lease-Purchase: The City's lease-purchase policy provides that: The City of Fort Collins uses lease-purchase for the provision of new and replacement equipment, vehicles and rolling stock in order to ensure the timely replacement of equipment and vehicles. This method may also be used to acquire real property. Members of the management staff have developed an equipment needs schedule for rolling stock which encompasses the demands of operating departments. This schedule is used to project equipment needs for each budget year. The type of lease that the City uses is termed a conditional sales lease. With each rental payment the City builds equity and assumes risk in the asset over the term of the lease. The annual installments are subject to appropriation by the Council each year. 11 of 433 COPY COPY COPY September 17, 2013 -2- ITEM 11 Advantages of a lease-purchase over a cash purchase are: • Decreasing the impact of inflation on the purchase of new and replacement equipment. • Resolving the problem of capital replacement needs backlog. • Conserving operating reserves. • Reducing the initial impact of the cost to user departments by enabling costs to be spread over the useful life of the equipment. • Safeguarding the opportunity to use cash assets to earn higher interest than the interest cost of lease- purchasing. It should be noted that the City is able to discontinue the equipment leases so that future City Councils will have the option to continue or discontinue the policy of lease-purchasing City equipment. A 2013 Finance Department analysis of current and historical equipment lease financing arrangements showed that lease-purchase is in the best interest of the City given the normal spread between lease rate and reinvestment rate. According to Section 29-1-103 C.R.S., local governments are required to identify as part of their budgets: (1) the total expenditures during the ensuing fiscal year for all lease purchase agreements involving real and personal property; and (2) the total maximum payment liability under all lease purchase agreements over the entire terms of the agreements, including all optional renewal terms. Staff recognizes that the State does not include lease-purchase in the legal definition of debt; however, rating agencies include lease-purchases in calculating the City's debt burden. The proposed Ordinance authorizes the lease-purchase financing of the following: Streets 2011 Power Screen Chieftain 1400 1 79,200.00 7.6 yard Spreader and Tanks 1 45,609.00 Single Axle CNG Truck 1 130,000.00 6.6 yard Spreader and Tanks 1 50,099.00 Replacement Spreaders 3 56,199.00 Replacement Snow Plows 3 58,395.00 Transportation Fund Total: 419,502.00 Forestry Variable Message Board 1 7,000.00 Forestry Equipment Total: 7,000.00 Patrol - New Officer Vehicles Dodge Journey 1 20,410.00 Dodge Charger 1 23,902.00 Ford Police Interceptor FWD 1 26,263.00 Ford Police Interceptor FWD 1 25,603.00 Police Vehicle equipment 1 lot 27,275.00 Patrol New Officer Vehicle Total: 123,453.00 Investigations - New Officer Vehicle Chevy Silverado 1500 4x4 1 28,318.00 Investigation New Officer Vehicle Total: 28,318.00 General Fund Total: 158,771.00 12 of 433 COPY COPY COPY September 17, 2013 -3- ITEM 11 Information Technology Dell Latitude E6430 Notebook 50 56,707.00 Docks – Latitude 50 7,500.00 Optiplex 7010 Desktop 200 179,476.00 Precision T3600 30 38,091.00 Logitech Keyboards 280 3,092.00 Panasonic C-53 Toughbooks 30 48,748.00 Data & Communications Fund Total: 333,614.00 Lease Total: 911,887.00 Departments have appropriately justified the purchase of all new replacement vehicles and equipment. Information on replacement units is given below. The Operations Services Director has determined that the following units meet requirements for replacement. These units are included in the financing list, above. Department Old unit: Age: Miles / hours: New unit: Disposal of old unit: Notes: Streets Spreaders for units 2281, 2747 and 23021 16+ years 27082S, 27079S and 23021S Auction / recycle Due for replacement Streets Plows for units 2281, 2747 ad 23021 16+ years 27079P, 27082P and 23021P Auction/ recycle Due for replacement Note on usage: Units will accumulate additional miles/hours between now and when replacement vehicles arrive. ENVIRONMENTAL IMPACTS Due to improvements in emissions and engine technology, new vehicles and equipment will use less fuel and produce fewer emissions than the units being replaced. The new officers to be added by Police were approved by Council and vehicles must be added to accommodate the increase in staffing levels. Those vehicles are as fuel efficient as can be provided pursuant to the needs of patrol and investigation officers. 13 of 433 - 1 - ORDINANCE NO. 126, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE PURCHASING AGENT TO ENTER INTO AN AGREEMENT FOR THE FINANCING BY LEASE-PURCHASE OF VEHICLES AND EQUIPMENT WHEREAS, the City has a need for and desires to provide certain real and personal property for City purposes; and WHEREAS, the City is authorized by the Colorado Constitution, Article XX, §6, its home charter and Part 8 of Article 15 of Title 31, Colorado Revised Statutes, as amended (the “Act”), to enter into rental or leasehold agreements in order to provide necessary land, buildings, equipment and other property for governmental or proprietary purposes, and such agreements may include options to purchase and acquire title to such leased or rented property; and WHEREAS, the City has received a lease-purchase proposal from Pinnacle Public Finance to lease equipment to the City, consisting of the following vehicles and equipment (the “Equipment”): Streets 2011 Power Screen Chieftain 1400 1 79,200.00 7.6 yard Spreader and Tanks 1 45,609.00 Single Axle CNG Truck 1 130,000.00 6.6 yard Spreader and Tanks 1 50,099.00 Replacement Spreaders 3 56,199.00 Replacement Snow Plows 3 58,395.00 Transportation Fund Total: 419,502.00 Forestry Variable Message Board 1 7,000.00 Forestry Equipment Total: 7,000.00 Patrol - New Officer Vehicles Dodge Journey 1 20,410.00 Dodge Charger 1 23,902.00 Ford Police Interceptor FWD 1 26,263.00 Ford Police Interceptor FWD 1 25,603.00 Police Vehicle equipment 1 lot 27,275.00 Patrol New Officer Vehicle Total: 123,453.00 Investigations - New Officer Vehicle Chevy Silverado 1500 4x4 1 28,318.00 Investigation New Officer Vehicle Total: 28,318.00 General Fund Total: 158,771.00 Information Technology Dell Latitude E6430 Notebook 50 56,707.00 14 of 433 - 2 - Docks – Latitude 50 7,500.00 Optiplex 7010 Desktop 200 179,476.00 Precision T3600 30 38,091.00 Logitech Keyboards 280 3,092.00 Panasonic C-53 Toughbooks 30 48,748.00 Data & Communications Fund Total: 333,614.00 Lease Total: 911,887.00 and; WHEREAS, the City Council has determined that it is in the best interests of the City to lease the above-described vehicles and equipment from Pinnacle Public Finance, which is also providing financing for the Equipment acquisition; and WHEREAS, the City desires to enter into a lease-purchase agreement with respect to the leasing and financing of the Equipment; and WHEREAS, the useful life of the Equipment is longer than the maximum lease-purchase term of five years; and WHEREAS, the City has determined that the lease payments to result from the proposed arrangement will require payments by the City in the sum of $48,372.28 per quarter, and that payments in that amount are reasonable and proper and represent the fair rental value of the Equipment; and WHEREAS, funds for the 2014 lease payments are included in the 2014 budget; and WHEREAS, the lease of the Equipment will not constitute a “multiple-fiscal year direct or indirect debt or other financial obligation” of the City within the meaning of Article X §20(4)(b) of the Colorado Constitution and may therefore be entered into without voter approval; and WHEREAS, Article V, Section 9, of the City Charter permits the Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with previous appropriations for that fiscal year, does not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Purchasing Agent is hereby authorized to enter into a lease- purchase agreement for the above-described Equipment with Pinnacle Public Finance in accordance with the following terms and provisions: 15 of 433 - 3 - a. The agreement shall be for an original term from the execution date of the agreement through and including December 31, 2014. The agreement shall provide for renewable one-year terms thereafter up to a total term of five years, subject to annual appropriation of funds needed for lease payments. The total lease terms, including the original and all renewal terms, shall not exceed the useful life of the property. b. The City shall make equal quarterly payments throughout the term of such agreement but subject to annual appropriation of funds needed for such payments. c. If the City leases the Equipment for the original term and all renewal terms, the payment to Pinnacle Public Finance will total the sum of the principal not to exceed $911,887.00, plus interest at a fixed rate equal to 2.28% per year, which is a reasonable amount. d. The City shall have the option to purchase part or all of the Equipment on the date of any scheduled quarterly payment during any term. The option to purchase shall be exercised by paying the quarterly payment due on said date and any remaining unpaid principal due after said date as to any or all of the Equipment. e. If the City renews the agreement for all renewal terms and makes all payments during said terms, the City shall be deemed to have exercised the option to purchase said Equipment. f. The agreement shall constitute only a current expense of the City and shall not be construed to be a debt or pledge of the City's credit or revenues. Section 2. That the amount of Four Hundred Nineteen Thousand, Five Hundred and Two Dollars ($419,502) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Transportation Fund from unanticipated revenue in the appropriate funds for the acquisition of vehicles and equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 3. That the amount of One Hundred Fifty-Eight Thousand, Seven Hundred and Seventy-One Dollars ($158,771) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the General Fund from unanticipated revenue in the appropriate funds for the acquisition of equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 4. That the amount of Three Hundred Thirty-Three Thousand, Six Hundred and Fourteen Dollars ($333,614) to be provided under the lease-purchase agreement is hereby appropriated for expenditure in the Data & Communications Fund from unanticipated revenue in 16 of 433 - 4 - the appropriate funds for the acquisition of equipment in accordance with the terms and provisions of the lease-purchase agreement, upon receipt thereof. Section 5. Any inconsistency between the provisions of this Ordinance and those of the Act is intended by the City Council. To the extent of any such inconsistency the provisions of this Ordinance shall be deemed made pursuant to the home rule charter of the City and shall supersede, to the extent permitted by law, the conflicting provisions of the Act. Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2013, and to be presented for final passage on the 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading this 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 17 of 433 DATE: October 1, 2013 STAFF: Ann Turnquist AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 127, 2013 Repealing Article II of Chapter 15 of the City Code in its Entirety. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on September 17, 2013, repeals Article II of Chapter 15 of the City Code in its entirety. Article II of Chapter 15 of the City Code addresses intrusion, robbery, fire and other alarm systems. This Article, last updated in 1972, is outdated due to the great advances in security systems technology over the years and needs to be repealed. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - September 17, 2013 (w/o attachments) 18 of 433 COPY COPY COPY ATTACHMENT 1 DATE: September 17, 2013 STAFF: Ann Turnquist AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT First Reading of Ordinance No. 127, 2013 Repealing Article II of Chapter 15 of the City Code in its Entirety. EXECUTIVE SUMMARY Article II of Chapter 15 of the City Code regarding intrusion, robbery, fire and other alarm systems is outdated and needs to be repealed in its entirety. BACKGROUND / DISCUSSION Article II of Chapter 15 of the City Code addresses intrusion, robbery, fire and other alarm systems. This Article, which was last updated in 1972, is outdated due to the great advances in security systems technology over the years. Systems are no longer dependant on a hard-wire type of system, which eliminates concerns over types of cables used and cable locations. Today, many security systems are wireless infrared, which are installed with no oversight by City departments. The current Code requires permits and licenses to be issued by the Department of Community Development and Neighborhood Services, a review to occur by Fort Collins Police Services, and an inspection to be conducted by Building Services, all of which are unused and outdated provisions. Therefore, such provisions should be repealed. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. 19 of 433 - 1 - ORDINANCE NO. 127, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING ARTICLE II OF CHAPTER 15 OF THE CODE OF THE CITY OF FORT COLLINS IN ITS ENTIRETY WHEREAS, Article II of Chapter 15 of the City Code regarding intrusion, robbery, fire and other alarm systems was last updated in 1972; and WHEREAS, since 1972, there have been great advances in security systems technology, thereby eliminating the need for a hard-wire type of system; and WHEREAS, today, many security systems are wireless infrared, which are installed with no oversight by City departments; and WHEREAS, the current Code requires permits and licenses to be issued by the Department of Community Development and Neighborhood Services, a review to occur by Fort Collins Police Services, and an inspection to be conducted by Building Services, all of which are unused and outdated provisions; and WHEREAS, City and Poudre Fire Authority staff recommend the repeal of Article II of Chapter 15 of the City Code regarding burglar and security alarms in its entirety; and WHEREAS, the City Council has determined that the repeal of this Article is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that Article II of Chapter 15 of the Code of the City of Fort Collins is hereby repealed in its entirety. Introduced, considered favorably on first reading, and ordered published this 17th day of September, A.D. 2013, and to be presented for final passage on the 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 20 of 433 - 2 - Passed and adopted on final reading on the 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 21 of 433 DATE: October 1, 2013 STAFF: Mike Gebo Beth Sowder AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 8 SUBJECT Second Reading of Ordinance No. 129, 2013, Amending Section 5-47 of the City Code Pertaining to the International Property Maintenance Code. EXECUTIVE SUMMARY The purpose of this item is to propose Code amendments that will address ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. This Ordinance, unanimously adopted on First Reading on September 17, amends the International Property Maintenance Code relating to Deficient Structures and creates a Vacant & Dangerous Buildings Registry. Minor revisions have been made on Second Reading to clarify the definition of deficient structures. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. STAFF RECOMMENDATION Ordinance No. 128, 2013, relating to excessive outdoor storage of personal property, will be considered on Second Reading on October 15, 2013. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - September 17, 2013 (w/o attachments) 22 of 433 COPY COPY COPY ATTACHMENT 1 DATE: September 17, 2013 STAFF: Mike Gebo Beth Sowder AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Items Relating to Exterior Property Maintenance. A. First Reading of Ordinance No. 128, 2013, Amending Article IV of Chapter 20 of the City Code Pertaining to the Outdoor Storage of Personal Property. B. First Reading of Ordinance No. 129, 2013, Amending Section 5-47 of the City Code Pertaining to the International Property Maintenance Code. EXECUTIVE SUMMARY The purpose of this item is to propose Code amendments that will address ongoing exterior residential property maintenance issues that create a negative impact on neighboring properties and that are not currently addressed by existing codes. This item focuses on three items that have a significant impact to the neighborhood and the general public because they are viewable from the public right-of-way. Neighbors have expressed that these conditions have a negative impact on their property values, enjoyment of their properties, and a general feeling of neglect and deterioration. The three proposed Code amendments include: • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way The above items are Phase 1 of this topic. Phase 2 will include excessive personal property and inoperable motor vehicle storage in back yards. Phase 2 is scheduled for City Council consideration on November 5, 2013. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION Over the past several years, citizens have complained and inquired about residential properties that appear unkempt, deteriorated, and in disrepair. Staff addressed concerns at the identified properties that were violations of the Municipal Code; however, there continued to be existing, on-going issues that could not be resolved under the current Code. In response to those continued concerns, staff researched what other communities have done, explored other options, and discussed it with City Council at two work sessions. Staff documented the properties in Fort Collins that have various exterior property maintenance issues that negatively impact their neighborhood but are not currently in violation of the Code. There are relatively few properties that meet this description (less than a dozen), but neighbors continue to say that these properties have a significant negative impact on their neighborhood. Many of these properties have been deteriorating for several years, even decades in some cases. Some negative impacts expressed by neighbors include: declining property values, loss of enjoyment of their property, safety hazards, unwanted wildlife and insects, and a general feeling that no one cares about their neighborhood. City Council has discussed this issue at two work sessions – March 12, 2013 and July 23, 2013 (Attachments 1 and 2). At the July 23 Work Session, Council directed staff to bring Phase 1 items to Council for consideration now, and to schedule the Phase 2 items in the fall (they are scheduled for November 5, 2013). Phase 1 includes: 23 of 433 COPY COPY COPY September 17, 2013 -2- ITEM 19 • Deficient Structures • Vacant & Dangerous Buildings Registry • Excessive Storage of Personal Property Viewable from the Public Right-of-Way Deficient Structures The currently adopted 2006 International Property Maintenance Code (IPMC) specifically exempts owner-occupied dwellings from the “substandard” classification addressing interior and exterior conditions. Substandard can be defined as defects that need repair or maintenance and have not yet been declared “dangerous”. Dangerous is defined as an imminent risk to the occupant or the public. When an owner-occupant fails to maintain the exterior of their property, the building can continue to degrade and over time deteriorate to a condition resembling “dangerous” resulting in costly repairs and becoming unsightly to an extent that property values throughout the neighborhood can be adversely affected. (See Attachment 3 for photo examples) A new classification of “deficient” is proposed that would be applicable to all buildings including owner-occupied dwellings. Deficient would be defined as, “a structure that through neglect, disrepair, or lack of maintenance (1) is no longer considered to be weather resistant using approved materials, or (2) allows the entrance of rodents or insects through holes in the exterior envelope, or (3) has exterior materials which are displaced or lack sufficient covering to provide the weather resistant barrier originally approved.” Owners of buildings that are declared to be deficient would be notified of the specific issues and be given suggestions on how to best mitigate the deficiencies. Building Services staff would work with the owner, provide contact information for private support services, and allow a reasonable time for corrections. Owners of deficient properties have the right to appeal any orders of the building official as described in the IPMC to the Building Review Board and in only extreme deficient cases, could the owner be subject to a citation and fine of up to $1,000 per day. Vacant & Dangerous Buildings Registry The currently adopted 2006 International Property Maintenance Code (IPMC) establishes processes that the City can use to monitor vacant buildings and includes actions needed to be taken when a building becomes dangerous. The majority of vacant buildings throughout the City require no City involvement because the owner or responsible party are providing the oversight, and there is no unlawful activity occurring. The vacant properties that are most problematic are those that are continually broken into or are open and unsecured or used for illegal activities. The City will post these buildings as “dangerous” and require that the owner install appropriate security measures and provide ongoing monitoring. Some owners of these vacant and dangerous buildings live out of state, and the City will notify the owner when a violation is identified. It can take the out-of-state owner a number of days to correct the violation, mainly because the owner is trying to contact someone locally who is willing to make the corrections. With the proposed Vacant and Dangerous Building Registry program, an owner of a vacant building, that has been declared a “dangerous” building by Building Services, will be required to identify a local person who assumes the responsibility for assuring that the property is secured from unlawful entry and who can act on behalf of the owner to address and correct violations at that property. Owners of Vacant and Dangerous buildings have the right to appeal any orders of the building official as described in the IMPC to the Building Review Board and in only extreme cases, could the owner be subject to a citation and fine of up to $1,000 per day, or an order to demolish the “dangerous” structure. Excessive Storage of Personal Property Viewable from the Public Right-of-Way Currently, the Code prohibits the storage of all items that are not customarily stored outside in residential areas (e.g. indoor furniture, car parts, appliances, etc.) either in public view or viewable from ground level of a neighboring property. Additionally, the Code does not allow the storage of any rubbish or trash. The Code currently does not limit the amount of personal property that can be stored on any portion of the property if it consists of items that are customarily stored outdoors in a residential area (e.g. yard equipment, outdoor furniture/ornaments, tools, barbecue grills, landscaping materials, etc.). This proposal attempts to address the excessive storage of personal materials stored in public view. It does not prohibit the storage of items customarily stored outdoors in a residential neighborhood; rather, it addresses the amount of items as well as the duration of time that they can be stored in public view. Because it is very difficult to define 24 of 433 COPY COPY COPY September 17, 2013 -3- ITEM 19 “excessive” storage, this proposal takes several factors into consideration in order to declare a violation. (See Attachment 4 for photo examples) The factors taken into consideration include: • total amount of personal materials stored outdoors in public view • duration of personal materials stored outdoors in public view • general overall appearance of the stored materials • level of deterioration or disrepair of the stored materials • potential or actual negative impact of the materials on property values or loss of enjoyment of property of neighboring residential properties • potential for the stored materials to house rodents, insects, or other vermin • whether the materials are stored in the applicable property setback Additionally, this proposal includes an appeal process. If a property owner disagrees with a declaration of an excessive storage violation, they would have the option to appeal it to the Community Development & Neighborhood Services Director. Violations of this Code would be civil infractions with fines assessed as a penalty for non-compliance. As with current Code Compliance practices, a notice of violation would be sent to the property owner of record (as well as the tenant and property manager, if known) giving them three weeks to correct the violation before a citation would be issued. Staff can also work with property owners to refer them to available and appropriate resources or assistance programs and to give them an additional, reasonable amount of time to correct the violation focusing on achieving voluntary compliance whenever possible. If they do not comply, a civil citation can be issued to the property owner, tenant (if any), or property manager (if any) assessing a fine and still requiring compliance. Anyone who receives a citation also has the right to request a hearing in front of the Municipal Court Referee or Judge. FINANCIAL / ECONOMIC IMPACTS It is anticipated that there will be very little financial impact to the City related to enforcement of these code amendments. There are relatively few properties that will be impacted, and the City already responds to inquiries about these properties now. There may be some economic benefit to addressing these properties because of the increase, or perceived increase, in property values and increased level of neighborhood quality. There will be an economic burden on the property owners that must make corrections to comply with the Code requirements. ENVIRONMENTAL IMPACTS This item could potentially improve the environment by reducing the harborage or infestation of rodents/insects and by improving the physical appearance of neighborhoods. BOARD / COMMISSION RECOMMENDATION The Affordable Housing Board and the Building Review Board both heard presentations about this item, although neither Board provided a recommendation. The Affordable Housing Board provided feedback that the code changes could add new financial burdens to struggling low-income households, and suggested that “excessive accumulation of storage” should be defined clearly. Staff explained that the Larimer Home Improvement Program would be available to help people who qualify financially and that staff would be able and willing to work with affected households regarding time and possible solutions. (Attachment 7) The Building Review Board provided feedback that there were specific reasons why owner-occupied units were excluded from the International Property Maintenance Code (IPMC) requirements when they were adopted and expressed concern that the new “deficient” category holds some similar requirements. (Attachment 6) 25 of 433 COPY COPY COPY September 17, 2013 -4- ITEM 19 PUBLIC OUTREACH Public Outreach to date includes: • Coloradoan Article • CityNews • Neighborhood News • Focus Group meetings • Fort Collins Board of Realtors Governmental Affairs group meetings • Social Media • Affordable Housing Board – June 6, 2013 and September 5, 2013 • Building Review Board – July 25, 2013 Feedback included primarily support for these items. Most of the people who have expressed a high level of support are immediate neighbors of the identified problem properties. Most people who expressed opposition to these code changes stated that they feel it is too much government intervention. One common area of concern from stakeholders as well as the Affordable Housing Board was whether there would be any assistance available for people who cannot afford to make the necessary corrections. Staff confirmed that the Larimer Home Improvement Program could be utilized by people who meet the income qualifications to get assistance for needed home repairs (Attachment 5). Additionally, staff would be able to work with people regarding the amount of time they need to make the necessary corrections. ATTACHMENTS 1. Council Work Session Summary Memo March 12, 2013 2. Council Work Session Summary Memo July 23, 2013 3. Photo Examples of Deficient Structures 4. Photo Examples of Excessive Storage of Personal Property 5. Larimer Home Improvement Program Brochure 6. Building Review Board Minutes, July 25, 2013 7. Affordable Housing Board Minutes 8. PowerPoint Presentation 26 of 433 - 1 - ORDINANCE NO. 129, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING SECTION 5-47 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE INTERNATIONAL PROPERTY MAINTENANCE CODE WHEREAS, the International Property Maintenance Code adopted by the City specifically exempts owner-occupied dwellings from certain “substandard” classification provisions; and WHEREAS, the City Council has determined that it is in the best interests of the City that structures defined as “deficient” not be exempt from regulation because they are owner- occupied; and WHEREAS, the City Council has further determined that it is in the best interests of the City that a registry of vacant and dangerous buildings be established so that vacant buildings which have been declared to be dangerous may be placed on the registry in order to provide the City with a name and contact information for persons who may, upon notification from the City, act responsibly with respect to such property. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 5-47(9) of the Code of the City of Fort Collins is hereby amended to read as follows: (9) The title of Section 108, along with Sections 108.1, 108.1.1, 108.1.2, 108.1.3 and 108.1.4, are hereby amended to read as follows: “SECTION 108 - SAFETY OF STRUCTURES AND EQUIPMENT “108.1 General. When any structure or portion thereof is found to be substandard, unfit for human occupancy, unlawful, dangerous or deficient or when any equipment or fixture installed or used therein is found to be substandard, such condition shall be abated or otherwise corrected, repaired, or removed pursuant to the provisions of this code. . . . Section 2. That Section 5-47(11) of the Code of the City of Fort Collins is hereby amended to read as follows: (11) Section 108.2 is hereby amended as follows: “108.2 Vacant Buildings and structures. 27 of 433 - 2 - “(a) General. When a building or structure is vacant and unsecured or unfit for human habitation and occupancy the code official is authorized to post a ”Vacant Building Notice” on the premises and order the structure closed up so as not to be an attractive nuisance. Upon failure of the owner to close up the premises within the time specified in the order, the code official shall cause the premises to be closed and secured through any available public agency or by contract or arrangement by private persons and the cost thereof shall be charged against the real estate upon which the structure is located and shall be a lien upon such real estate and may be collected by any other legal resource.” “108.2.1 Vacant & dangerous buildings registry. Any vacant building or structure which has been declared dangerous in accordance with this code shall be placed on a vacant & dangerous building registry to be kept by the Director of Community Development and Neighborhood Services (Director). Owners of a vacant and dangerous building or structure shall provide the Director with the name and contact information for an individual who, acting on behalf of the owner, will accept responsibility for monitoring the property and responding to City identified violations within 24 hours of receipt of notice from the Director.” Section 3. That Section 5-47(17) of the Code of the City of Fort Collins is hereby amended to read as follows: (17) Section 202 is amended by the addition of thirty-four (34) new definitions to the list of terms therein in alphabetical sequence of such list to read as follows: . . . “DEFICIENT. A Ccondition(s) that through neglect, disrepair, or lack of maintenance results in a structure that: (1) is no longer considered to be weather resistant using approved materials, or (2) allows the entrance of rodents or insects through holes in the exterior envelope, or (3) has exterior materials which are displaced or lack sufficient covering to provide the weather resistant barrier originally approved. . . . Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 28 of 433 - 3 - Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 29 of 433 DATE: October 1, 2013 STAFF: Rachel Rogers Lawrence Pollack AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT First Reading of Ordinance No. 131, 2013, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds And Authorizing the Transfer of Appropriated Amounts between Funds or Projects. EXECUTIVE SUMMARY The annual Clean-Up Ordinance allows for the appropriation of expenses related to unanticipated revenue, grants and unforeseen costs that had not previously been budgeted. The purpose of this annual Clean-Up Ordinance is to combine dedicated and unanticipated revenues or reserves that need to be appropriated before the end of the year to cover the related expenses that were not anticipated and, therefore, not included in the 2013 budget appropriation. The unanticipated revenue is primarily from fees, charges, rents, contributions and grants that have been paid to City departments to offset specific expenses. Prior year reserves are primarily being appropriated for unanticipated operational expenses. The table below is a summary of the expenses in each fund that make up the increase in requested appropriations. Also included are intra-fund transfers for Art in Public Places (APP) and previously appropriated matching grant funds from operations now going to specific projects totaling $70,292. These actions do not increase total appropriations, but per the City Charter require City Council approval to make the transfer. This Ordinance appropriates prior year reserves and unanticipated revenue in various City funds, and authorizes the transfer of appropriated amounts between funds. The City Charter permits the City Council to provide, by ordinance, for payment of any expense from prior year reserves. The Charter also permits the City Council to appropriate unanticipated revenue received as a result of rate or fee increases or new revenue sources. Additionally, it authorizes the City Council to transfer any unexpended appropriated amounts from one fund to another upon recommendation of the City Manager, provided that the purpose for which the transferred funds are to be expended remains unchanged; the purpose for which they were initially appropriated no longer exists; or the proposed transfer is from a fund or capital project account in which the amount appropriated exceeds the amount needed to accomplish the purpose specified in the appropriation ordinance. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. 30 of 433 October 1, 2013 -2- ITEM 9 BACKGROUND / DISCUSSION A. GENERAL FUND 1. Fort Collins Police Services (FCPS) has received revenue from various sources which need to be appropriated to cover the related expenditures. A list of these items follows: a. $21,250 - Chemical Test Fees & Driving w/o Insurance Penalty Assessments - Pursuant to C.R.S. 16-11- 501(2)(j), the costs of chemical tests (blood/breath tests) shall be reimbursed directly by the defendant to the law enforcement agency which administered and paid for the test. The driving without insurance law provides revenue to the law enforcement agency issuing the citation. It is projected that by the end of 2013 $21,250 will have been collected by the courts and passed on to FCPS under these provisions. This revenue is used to directly offset the actual cost of blood/breath testing for DUI and DUID (driving under the influence of drugs). b. $6,769 - DEA Cooperative Agreement Reimbursement for Task Force Vehicle Lease - Fort Collins Police and the Northern Colorado Drug Task Force entered into an agreement to have a task force investigator dually assigned to a DEA team in the Denver area. The DEA reimburses FCPS for the lease payment of that investigators vehicle. c. $33,260 - DUI Enforcement Grants - FCPS has received two grant awards from the State of Colorado for DUI enforcement overtime; the Law Enforcement Assistance Fund (LEAF Grant) and the High Visibility Enforcement Grant. d. $2,998 - Miscellaneous Vendor Refunds and Proceeds from Recycling Brass - Police Services received refunds and proceeds from miscellaneous sources for the reimbursement of dry cleaning, training, and the recycling proceeds from brass ammunition casing. The reimbursement of funds goes to offset the cost of the original items/services purchased and subsequently returned. The recycling proceeds are used to purchase more ammunition. e. $1,006 - Plasma rope reimbursement for the Armored SWAT Vehicle - The North East All Hazards Region (NEAHR) purchased plasma ropes to mount to the armored SWAT vehicle. NEAHR administers the Homeland Security funding for the regional group Fort Collins is part of. f. $103,025 - Police Overtime Reimbursement - In 2013, Police Services received reimbursement from various entities for overtime expenses. The different activities include: CSU football traffic control, DEA investigations, Tour De Fat, Brew Fest, New West Fest, regional auto theft case investigations, Poudre School District school board meetings, and noise ordinance violation workshops. g. $35,188 - Police Report and Special Event Permit Fees - Police reports purchased by the public and insurance agencies generate revenue of approximately $7.50 a report. Special event permits are required if the public wishes to hold an event that will interfere with vehicular or pedestrian traffic or takes place on public property. Special event permits cost $50 a piece. In 2013 it is estimated $35,800 will be collected from these two sources. The revenue from this fee is used to subsidize the cost of copy machine rental. h. $36,803 - Poudre Valley Hospital Contract Renegotiation - In the beginning of 2013, Fort Collins Police Services renegotiated the contract for providing dispatching services for Poudre Valley Health Systems. This resulted in more revenue than was originally projected and will be utilized to assist with the cost of the dispatch console replacement project. i. $30,800 - Sale of Retired Police Radios - In early 2013, Police Services replaced portable and mobile radios. Other City and EMS entities have purchased the old radios at $500 each. The revenue is being used to offset the cost of the replacement. j. $7,688 - Seatbelt Enforcement Grants - The State of Colorado awarded FCPS a grant for officers to work seatbelt enforcement on overtime. k. $3,250 - SWAT Training Fees - In 2013, the Fort Collins Police SWAT team hosted training for other 31 of 433 October 1, 2013 -3- ITEM 9 agencies and charged attendees a fee. By hosting the training FCPS, team members don't have to travel to attend. The registration fees are used to help cover the cost of the materials for the class. l. $40,475 - Vehicle Insurance Claims Reimbursements- In 2013, Police Vehicles were damaged in motor vehicle collisions and by severe weather. The cost recovered by insurance claims is used to offset the cost of repair. m. $500 - Victims Assistance Training Scholarship - In 2013, the Victim Assistance Law Enforcement fund gave FCPS $500 for employees to attend training. This amount was awarded after the initial grant period and needs to be appropriated to the 2012 grant year to balance the budget to expenses. FROM: Unanticipated Revenue (Miscellaneous Police) $281,564 FROM: Unanticipated Revenue (DUI Enforcement Grants) $ 33,260 FROM: Unanticipated Revenue (Seatbelt Grant) $ 7,688 FROM: Unanticipated Revenue (Victims Assistance Grant) $ 500 FOR: Police Services $281,564 FOR: DUI Enforcement Grant $ 33,260 FOR: Seatbelt Grant $ 7,688 FOR: Victims Assistance Grant $ 500 2.. The Community Development & Neighborhood Services department has received revenue from various sources which needs to be appropriated to cover the related expenditures. A listing of these items follows: a. $30,000 - Avery Building Perpetual Easement- Request for an appropriation of $30,000 in Certified Local Government (CLG) funding to meet State requirements of having a perpetual easement on projects that exceed $100,000 as was the case in the Avery Block exterior restoration and remodel project. This $30,000 gives the City resources to perpetually maintain and enforce easement requirements. The money has been received from the State and simply needs to be appropriated. b. $44,916 - Building Inspection Vehicles - Request for an appropriation to cover the cost of two new trucks purchased for the new building inspector positions approved as part of the 2013-2014 BFO process. Funds are requested from development review revenues which are approximately $800,000 over projections in 2013 as of July 31. c. $13,980 - Feeder Supply Building Grant - Request for an appropriation of $6,990 in Certified Local Government (CLG) funding, $3,495 of matching grant funds from the owner and $3,495 of matching grant funds from existing City of Fort Collins appropriations for the 359 Linden Street - Feeder Supply Building grant. The $3,495 city match was previously appropriated, but per the City Charter the transfer of these funds to a grant project must be authorized by City Council. The grant awarded authorized a structural assessment and recommendations regarding re-use of this property. d. $43,530 - Old Town Historic District Guidelines Grant - Request for an appropriation of $21,765 in Certified Local Government (CLG) funding and $21,765 of matching grant funds from existing City of Fort Collins appropriations for the Old Town Historic District Guidelines grant. The $21,765 city match was previously appropriated, but per the City Charter the transfer of these funds to a grant project must be authorized by City Council. The grant awarded authorizes an update of Old Town Historic District design guidelines and related standards. e. $671 - Restorative Justice Fees - It is a requirement of the Colorado Division of Criminal Justice that 90% of income generated as part of Juvenile Accountability Block Grant efforts be used to support related activities. While the majority of the Restorative Justice program is funded by grants, the program also collects fees from participants to off-set the costs to run the program. This appropriation is necessary to meet this requirement and helps make up any differences between grant funding and program expenses. Not fulfilling this requirement could put this grant funding, and potential future awards at risk. f. $7,000 - State Tax Credits - Request for an appropriation of $7,000 in Certified Local Government (CLG) funding to the City's State Tax Credits program account. The money was received from the State for staff time to administer the Avery Block Grant. As required by C.R.S. § 39 22 514(11)(a), the money Historic Preservation receives for administering the State Tax Credits for Historic Preservation (STC) must be kept in a separate "preservation fund" for use in administering the STC program and to provide information and 32 of 433 October 1, 2013 -4- ITEM 9 education to the community within the context of historic preservation. The money has been received from the State and simply needs to be appropriated. g. $13,500 - Technology Improvements for Boards & Commissions - Request for an appropriation to cover cost of iPads for Planning & Zoning Board members, Landmark Preservation Commission members and related staff. It is estimated that moving away from paper packets will result in a savings of approximately $2,200 per month based on the reduced time needed for staff to make copies, as well as reduced copy charges. This also meets City goals on becoming more sustainable by eliminating paper packets. Funds are requested from development review revenues which are approximately $800,000 over projections in 2013 as of the end of July. h. $48,228 - William Stover House Grant - Request for an appropriation of $24,114 in Certified Local Government (CLG) funding and $24,114 in matching grant funds from the owner for the William Stover House grant. The grant awarded authorizes exterior rehabilitation efforts at this property located at 503 Remington Street. The total budget amount of $48,228 needs to be appropriated. FROM: Unanticipated Revenue (Miscellaneous CDNS) $86,696 FROM: Unanticipated Revenue (State CLG Grants) $89,869 FROM: Transfer from Existing Operating Budgets $25,260 FOR: Avery Building (CLG Grant) $30,000 FOR: Building Inspection Vehicles $44,916 FOR: Feeder Supply Building (CLG Grant) $13,980 FOR: Old Town Historic District (CLG Grant) $43,530 FOR: Restorative Justice Fees $ 671 FOR: State Tax Credit Program (CLG Grant) $ 7,000 FOR: Technology Improvements for boards and commissions $13,500 FOR: William Stover House (CLG Grant) $48,228 3. Cable 14 requests the appropriation of $40,695 from prior year General Fund reserves (Public Educational Government) to FCPAN’s (Fort Collins Public Access Network) equipment budget. These funds are restricted by the Federal Government and can only be used for capital equipment for entities such as FCPAN and will be used for the purchases of television equipment needed to create a TV studio space in the Carnegie building. FROM: Prior Year Reserves (PEG Reserve) $ 40,695 FOR: Public Access Network $ 40,695 4. The Gardens on Spring Creek would like to appropriate unanticipated revenues generated in 2013 beyond the original revenue appropriated during the budget process. Revenues will be used to pay for additional staffing needs and vegetative supplies for the holiday season. FROM: Unanticipated Revenue $20,000 FOR: The Gardens on Spring Creek $20,000 5. The Gardens on Spring Creek is requesting the appropriation of $150,000 from prior year reserves in the General Fund (Horticulture) for the design and construction of the Undaunted Garden. These monies were raised specifically for construction of the Undaunted Garden. FROM: Prior Year Reserves (Horticulture Reserve) $150,000 FOR: Transfer to Capital Projects Fund Gardens Capital Project $150,000 - Undaunted Garden 6. The City Clerk’s Office requests the appropriation of $30,000 to fund a special election this November, to be held in conjunction with the Larimer County Coordinated Election, for the purpose of submitting to the voters a citizen-initiated ordinance to place a five-year moratorium on the use of hydraulic fracturing within the ity of Fort Collins or under its jurisdiction to extract oil, gas, or other hydrocarbons and to store and dispose of its waste products. This election is unbudgeted. Larimer County’s estimate of the City’s share of election costs is $25,272. Additional costs will be incurred for publication of legal notices and campaign finance reports. 33 of 433 October 1, 2013 -5- ITEM 9 FROM: Prior Year Reserves (General Fund) $30,000 FOR: Elections Expenses $30,000 7. The Parks department is requesting the appropriation of $25,000 that was donated by University of Colorado Health to help fund the 2013 4th of July celebration. FROM: Unanticipated Revenue (Donations) $25,000 FOR: 4th of July Expenses $25,000 8. Forestry is requesting the appropriation of $15,000 from prior year reserves in the General Fund (Tree Donations). The Forestry Division recycles wood by grinding it into mulch. Due to the increased volume of wood generated in 2013 there is a need to do an additional grind this year. These funds will be applied toward the cost to contractually grind wood at the Forestry wood lot. The mulch product generated through this program is used on City projects and provided to the public at two self-loading locations. FROM: Prior Year Reserves (Tree Donation Reserve) $15,000 FOR: Forestry Expenses $15,000 9. Environmental Services requests the appropriation of $3,367 generated from the sale of radon test kits. The kits are sold at cost as part of its program to reduce lung-cancer risk from in-home radon exposure. This appropriation would recover kit-sales revenue for the purpose of restocking radon test kits. FROM: Unanticipated Revenue $3,367 FOR: Radon Program $3,367 10. The Fort Collins Convention and Visitors Bureau (FCCVB) has been awarded a $77,291 grant from the Colorado Welcome Center through the State of Colorado. These funds will be disbursed by the State of Colorado and directed through the City of Fort Collins, pursuant to State of Colorado requirements, then paid to the FCCVB. The grant period will run from July 1, 2012 through June 30, 2013. FROM: Unanticipated Revenue (Grants) $77,291 FOR: Fort Collins Convention and Visitors Bureau $77,291 11. The Social Sustainability department requests the appropriation of $28,500 from prior year reserves in the General Fund (Land Bank Reserve) to cover expenses related to land bank property maintenance needs for 2013. As expenses vary from year-to-year, funding is requested annually mid-year to cover these costs. Expenses for 2013 include hydrant repairs, general maintenance of properties, raw water expenses, and a sewer replacement/connection for 2313 Ketcher. FROM: Prior Year Reserves (Land Bank Reserve) $28,500 FOR: Land Bank Expenses $28,500 12. In accordance with Chapter 25, Article II, Division 5, Manufacturing Equipment Use Tax Rebate, $187,007 was paid out in February 2013 for the 2011 rebate program. The rebate program was established to encourage investment in new manufacturing equipment by local manufacturing firms. Vendors have until December 31st of the following year to file for the rebate. This item appropriates the use tax funds to cover the payment of the rebates. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $187,007 FOR: Manufacturing Use Tax Rebates $187,007 B. CAPITAL EXPANSION FUND 1. This item appropriates administrative fee revenue earned in the Capital Expansion Fund for transfer to the General Fund. The 2013 Budget appropriated $36,000 in administrative fees and through August over $58,000 has actually been received. Development review revenues are projected to be higher than projected in the 2013 budget. So, staff is requesting the appropriation of an additional $60,000 of unanticipated revenue so the full amount of administrative fees received can be transferred to the General Fund. 34 of 433 October 1, 2013 -6- ITEM 9 FROM: Unanticipated Revenue (Administrative Fees) $60,000 FOR: Transfer to the General Fund $60,000 C. CAPITAL PROJECTS FUND 1. One of the monitors installed at the Veterans Plaza at Spring Creek Community Park was damaged by the high particulates in the air during the High Park fire. The particulates caused the venting system to fail and the monitor over-heated. This was not covered under warranty and therefore an insurance claim was filed. Park Planning would like to appropriate the claim funds received into the Spring Canyon - Veterans Plaza capital project in order to replace the monitor. FROM: Unanticipated Revenue (Insurance Claim) $14,607 FOR: Spring Canyon-Veterans Plaza Project $14,607 2. This is related to Item A.5. which requested the appropriation of $150,000 from the Gardens reserve in the General Fund for transfer to the Capital Projects Fund - Gardens Capital Project. This item appropriates the same $150,000 in the Capital Projects Fund for the design and construction of the Undaunted Garden as part of the Xeriscape Demonstration Garden. It will be designed by Lauren Springer Ogden, a nationally known landscape designer who lives in Fort Collins. She is best known for her book, The Undaunted Garden, hence the name of the garden. These monies were raised specifically for construction of the Undaunted Garden. FROM: Unanticipated Revenue (Transfer from General Fund) $150,000 FOR: Gardens Capital Project $150,000 3. Based upon the approved Traffic Impact Study, the "Crowne on Timberline" development project has triggered the need for a dedicated southbound right turn lane at Kechter and Timberline. The City has received the required design and construction fees from the developer so the proposed turn lane can be built in conjunction with an Engineering Capital Project at the same intersection. This request appropriates the private funds in the amount of $76,117 into the "Kechter and Timberline Turn Lane Improvements" capital project. FROM: Unanticipated Revenue (Developer Contribution) $76,117 FOR: Kechter / Timberline Turn Lane Improvements Project $76,117 4. The Linden Street project included improvements in front of the Legacy Senior Residences. The City was reimbursed for the developer portion of the project. This item appropriates the revenue received for these improvements back into the same Capital Project, Pedestrian Plan & ADA Improvements, for other pedestrian improvements. FROM: Unanticipated Revenue (Developer Charges) $43,890 FOR: Pedestrian Plan & ADA Improvements Project $43,890 5. Savings from operating budgets were identified at the end of 2012 in the Transportation Fund and General Fund (PDT Admin/Financial Services); savings were also identified in the Capital Projects Fund and BCC Community Enhancement funds. These savings are requested for appropriation to partially cover charges identified by the FTA as ineligible for reimbursement by the Federal grant for the MAX project. Additional savings will be identified at the end of 2013, if needed, to cover remaining ineligible expenses. FROM: Unanticipated Revenue (Transfers In) $381,945 FOR: MAX Ineligible Project Expenses $381,945 6. This item appropriates funds from the Lincoln Center Support League. The League contributed to the Lincoln Center Renovation Capital Project to cover unanticipated expenses in the amount of $23,126. FROM: Unanticipated Revenue (Contribution) $23,126 FOR: Lincoln Center Renovation Capital Project $23,126 35 of 433 October 1, 2013 -7- ITEM 9 D. CULTURAL SERVICES AND FACILITIES FUND 1. “Pianos About Town” is a collaborative project between the City of Fort Collins Art in Public Places Program (APP), Bohemian Foundation, and the Downtown Development Authority. In this partnership, APP administers the program which has local artists painting murals on pianos in Old Town Square. These pianos are then rotated around Old Town and other areas of Fort Collins. Funds were received from the Bohemian Foundation in the amount of $28,089. Of this amount $22,089 will fund the APP project and $6,000 will fund the Administration of the program. FROM: Unanticipated Revenue (Bohemian Foundation) $28,089 FOR: Art in Public Places Administration $6,000 FOR: APP Project (Pianos About Town) $22,089 2. The Downtown Development Authority (DDA) has contributed $8,000 to the Art in Public Places Program. These funds are to reimburse the City's APP program for administration costs for the 2012-2013 Pianos About Town Project. FROM: Unanticipated Revenue (DDA) $8,000 FOR: Art in Public Places Administration $8,000 3. This item appropriates the Art in Public Places (APP) revenue for two Capital Projects; the Gardens Project - The Great Lawn ($2,500) and the Natural Resources Research Center Overpass Project ($12,000). Both of these projects were revised on the first reading of the 2013 Annual Budget at about the same time modifications to the Art in Public Places program were finalized. Therefore, the correct APP revenue was not included in the Cultural Services and Facilities Fund Budget for 2013. The funding source for these projects is the Capital Projects Fund. FROM: Unanticipated Revenue (Transfer from Capital Projects) $14,500 FOR: Art in Public Places Administration $3,190 FOR: Art in Public Places Projects $11,310 4. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. At the end of 2012, APP budgets for outstanding encumbrances were carried forward to 2013. These encumbrances were recorded in 2012 using the lapsing APP business units in the Cultural Services & Facilities, Water, Wastewater, and Stormwater Funds. In October of 2012, with Ordinance No. 78, the APP program was modified and the APP project accounts were changed from lapsing to non- lapsing to begin in 2013. So, the 2012 encumbrance budget carried forward to 2013 needs to be moved from the lapsing APP accounts to the "new" non-lapsing APP accounts. The total amount of the encumbrances is $45,032. This request does not increase total appropriations. FROM: APP Operating Expense - Cultural Services & Facilities Fund $27,006 FOR: Art in Public Places Projects - Cultural Services & Facilities Fund $27,006 FROM: APP Operating Expense - Water Fund $10,000 FOR: Art in Public Places Projects - Water Fund $10,000 FROM: APP Operating Expense - Wastewater Fund $ 3,409 FOR: Art in Public Places Projects - Wastewater Fund $ 3,409 FROM: APP Operating Expense - Stormwater Fund $ 4,617 FOR: Art in Public Places Projects - Stormwater Fund $ 4,617 5. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Storm Drainage Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $30,866. 36 of 433 October 1, 2013 -8- ITEM 9 FROM: Unanticipated Revenue (Transfer from Stormwater Fund) $30,866 FOR: Art in Public Places Administration $30,866 6. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Light & Power Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $31,424. FROM: Unanticipated Revenue (Transfer from Light & Power Fund) $31,424 FOR: Art in Public Places Administration $31,424 E. EQUIPMENT FUND 1. This item appropriates Equipment Fund reserves, generated from the sale of capital assets in 2012, for 2013 lease purchase payments. Three additional police cars met the criteria for replacement. In order to stay on track replacing vehicles before they reach 100,000 miles, we would like to request using Equipment Fund reserves for these police car purchases. FROM: Prior Year Reserves (Equipment Fund) $60,000 FOR: Equipment Lease Purchase Expenses $60,000 2. This item requests the appropriation of insurance proceeds to be used to purchase a new police car. A 2012 Chevy Caprice police car was totaled in January, 2013. The accident was not the fault of our officer. The insurance proceeds were received this summer and will be used to replace the totaled car. FROM: Unanticipated Revenue (Insurance Proceeds) $30,800 FOR: Equipment Expenses $30,800 F. GENERAL IMPROVEMENT DISTRICT #15 - SKYVIEW FUND 1. Skyview General Improvement District (GID) #15 was created by Larimer County in 1997 and annexed into the City by the Southwest Enclave Annexation in 2009. Larimer County collects the property taxes for this GID and distributes the revenue to the City. A fee is paid to Larimer County Treasurer's Office for this service. This item appropriates property tax revenue to pay the fee. Street improvements have not yet started in this district so no expenses were budgeted in 2013. FROM: Existing Revenue $600 FOR: GID #15 Expenses $600 G GOLF FUND 1. Actual golf revenues are anticipated to be above the original estimate for 2013 by approximately $70,000. The Golf Fund would like to appropriate $30,000 of these additional revenues to cover unanticipated higher expenses for raw water, clubhouse repairs, and irrigation repairs. FROM: Unanticipated Revenue (Greens Fees) $30,000 FOR: Golf Expenses $30,000 H. HOME FUND 1. The HOME Investment Partnership Fund (HOME) grant from HUD was originally reported to the City to be $542,507. During the Spring Competitive Process that amount was approved by City Council for allocation in the fall. When we received the HUD Funding Approval Agreement at the end of September 2012 we discovered the City actually received $810 more in funding than previously reported to us. That additional amount was allocated in the Fall Competitive Process. This item requests the additional grant appropriation to cover the expenses. 37 of 433 October 1, 2013 -9- ITEM 9 FROM: Unanticipated Revenue (HOME Grant) $810 FOR: HOME Grant Expenses $810 I. LIGHT AND POWER FUND 1. Electric Vehicle Charging Stations - The Light and Power Utility received a $25,040 grant from the Colorado Energy Office for the installation of up to four electric vehicle charging stations. Existing appropriations are being used to provide the required 20% match. FROM: Unanticipated Revenue (grant) $25,040 FOR: Electric Vehicle Charging Stations $25,040 2. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Light & Power Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $31,424. FROM: Prior Year Reserves (Light & Power Fund) $31,424 FOR: Transfer to Cultural Services & Facilities Fund for APP $31,424 J. NATURAL AREAS FUND 1. The Bohemian Foundation awarded the Natural Areas Department a $7,000 grant for a post-fire sediment study. The City has collectively committed $19,000 to this project. This request appropriates the Foundation money in the Natural Areas Fund for the study. FROM: Unanticipated Revenue (Grant) $7,000 FOR: Natural Areas Expenses $7,000 2. REI donated $5,000 to support six key public volunteer days: National Public Lands Day, Make a Difference Day, Earth Day/Natural Areas 20th Anniversary, National Trails Day and two Poudre River Cleanups. The donation provided tools, gloves, food, volunteer appreciation gifts and project supplies. Three hundred fifty eight volunteers donated 1,311 hours. FROM: Unanticipated Revenue (Donation) $5,000 FOR: Natural Areas Expenses $5,000 K. SALES AND USE TAX FUND The sales and use tax revenue received in 2012 was higher than anticipated and the existing appropriations were not adequate to make the full transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the one quarter cent Building on Basics tax, and to the Natural Areas Fund for the one quarter cent Natural Areas tax. Adjustments to the General Fund, the Keep Fort Collins Great Fund and the Transportation Services Fund are not needed because the tax revenues are recorded directly into those funds. This item appropriates additional funds in the amount of $654,776 from prior year reserves to increase the transfer from the Sales and Use Tax Fund to the Capital Projects Fund for the Building on Basics tax by $327,388, and to increase the transfer to the Natural Areas Fund for the Natural Areas tax by $327,388. FROM: Prior Year Reserves (Sales & Use Tax Fund) $654,776 FOR: Transfer to Capital Projects - Building on Basics $327,388 FOR: Transfer to Natural Areas Fund $327,388 L. STORMWATER FUND 1. The Stormwater Utility acquired Forney property in the West Vine Drainage Basin in 2012. In March 2013 Natural Area purchased a portion of the property from Stormwater for $420,000. This request is to appropriate the revenue received from Natural Resources for future stormwater capital improvements in the West Vine Drainage Basin project. 38 of 433 October 1, 2013 -10- ITEM 9 FROM: Unanticipated Revenue (property sale) $420,000 FOR: West Vine Drainage Basin Project $420,000 2. This item addresses changes made to the Art in Public Places (APP) program by City Council on October 2, 2012, Ordinance No. 078. This item appropriates funds from the Storm Drainage Fund - Art in Public Places Reserve for transfer to the Cultural Services and Facilities Fund. These funds are from a change in the APP calculation in prior years and needs to be transferred to the Cultural Service & Facilities Fund for APP Administration. The reserve amount to be appropriated is $30,866. FROM: Prior Year Reserves (Stormwater Fund) $30,866 FOR: Transfer to Cultural Services & Facilities Fund for APP $30,866 M. TRANSPORTATION SERVICES FUND 1. The Denver Foundation awarded a grant from Kaiser Permanente to support Bike to Work Day and the Worksite Challenge for the FC Bikes Program. This item appropriates this unanticipated revenue for these expenses. FROM: Unanticipated Revenue (Contribution) $3,700 FOR: FC Bikes Program $3,700 2. The BNSF Railway has awarded the Safe Routes to School Program $10,000 for program activities in Fort Collins. This funding is from the BNSF Railway Foundation. When the BNSF Railway is participating in community events (such as the Pro Challenge this year), they often choose a local program to make a donation to. FROM: Unanticipated Revenue (Contribution) $10,000 FOR: Safe Routes to School Program $10,000 FINANCIAL / ECONOMIC IMPACTS This Ordinance increases total City 2013 appropriations by $3,249,017. Of that amount, this Ordinance increases General Fund 2013 appropriations by $1,076,437 including use of $451,202 in prior year reserves. Funding for the total City appropriations is $1,412,014 from unanticipated revenue, $1,228,268 from prior year reserves, and $608,735 transferred from other funds. In addition, appropriations in the amount of $70,292 are being transferred from one capital project to another capital project or from an operating budget to a project account. These transfers do not increase overall City appropriations. The table below is a summary of the items requiring appropriation of prior year reserves: 39 of 433 October 1, 2013 -11- ITEM 9 If these transfers and appropriations are not approved, the City will have to reduce budgetary expenditures even though adequate revenue and reimbursements are actually available to cover those expenditures. 40 of 433 ORDINANCE NO. 131, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES AND UNANTICIPATED REVENUE IN VARIOUS CITY FUNDS AND AUTHORIZING THE TRANSFER OF APPROPRIATED AMOUNTS BETWEEN FUNDS OR PROJECTS WHEREAS, the City has prior year reserves, excess revenue, and unanticipated revenue available to appropriate; and WHEREAS, in accordance with Article V, Section 8(b) of the City Charter, any expense or liability entered into by an agent of the City, on behalf of the City, shall not be made unless an appropriation therefor shall have been made by the City Council; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, Article V, Section 9, of the City Charter also permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, the City wishes to provide for the expenditures listed below and the City Manager recommends that these expenditures be made. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following funds are hereby authorized for transfer and appropriated for expenditure for the purposes stated below: A. GENERAL FUND 1. APP. FROM: Unanticipated Revenue (Miscellaneous Police) $281,564 APP. FROM: Unanticipated Revenue (DUI Enforcement Grants) $33,260 APP. FROM: Unanticipated Revenue (Seatbelt Grant) $7,688 APP. FROM: Unanticipated Revenue (Victims Assistance Grant) $500 FOR: Police Services $281,564 FOR: DUI Enforcement Grant $33,260 FOR: Seatbelt Grant $7,688 FOR: Victims Assistance Grant $500 41 of 433 - 2 - 2. APP. FROM: Unanticipated Revenue (Miscellaneous CDNS) $86,696 APP. FROM: Unanticipated Revenue (State CLG Grants) $89,869 APP. FROM: Transfer from Existing Operating Budgets $25,260 FOR: Avery Building (CLG Grant) $30,000 FOR: Building Inspection Expenses $44,916 FOR: Feeder Supply Building (CLG Grant) $13,980 FOR: Old Town Historic District (CLG Grant) $43,530 FOR: Restorative Justice Fees $671 FOR: State Tax Credit Program (CLG Grant) $7,000 FOR: Technology Improvements for B&C $13,500 FOR: William Stover House (CLG Grant) $48,228 3. APP. FROM: Prior Year Reserves (PEG Reserve) $40,695 FOR: Public Access Network $40,695 4. APP. FROM: Unanticipated Revenue $20,000 FOR: The Gardens on Spring Creek $20,000 5. APP. FROM: Prior Year Reserves (Horticulture Reserve) $150,000 FOR: Capital Projects Fund - Gardens Project - Undaunted Garden $150,000 6. APP. FROM: Prior Year Reserves (General Fund) $30,000 FOR: Elections Expenses $30,000 7. APP. FROM: Unanticipated Revenue (Donations) $25,000 FOR: 4th of July Expenses $25,000 8. APP. FROM: Prior Year Reserves (Tree Donation Reserve) $15,000 FOR: Forestry Expenses $15,000 9. APP. FROM: Unanticipated Revenue $3,367 FOR: Radon Program $3,367 10. APP. FROM: Unanticipated Revenue (Grants) $77,291 FOR: Fort Collins Convention and Visitors Bureau $77,291 11. APP. FROM: Prior Year Reserves (Land Bank Reserve) $28,500 FOR: Land Bank Expenses $28,500 12. APP. FROM: Prior Year Reserves (Manufacturing Use Tax Rebate) $187,007 FOR: Manufacturing Use Tax Rebates $187,007 B. CAPITAL EXPANSION FUND 1. FROM: Unanticipated Revenue (Administrative Fees) $60,000 FOR: Transfer to the General Fund $60,000 42 of 433 - 3 - C. CAPITAL PROJECTS FUND 1. APP. FROM: Unanticipated Revenue (Insurance Claim) $14,607 FOR: Spring Canyon-Veterans Plaza Project $14,607 2. APP. FROM: Unanticipated Revenue (Transfer from General Fund) $150,000 FOR: Gardens Project – Undaunted Garden $150,000 3. APP. FROM: Unanticipated Revenue (Developer Contribution) $76,117 FOR: Kechter / Timberline Turn Lane Improvements Project $76,117 4. APP. FROM: Unanticipated Revenue (Developer Charges) $43,890 FOR: Pedestrian Plan & ADA Improvements Project $43,890 5. APP. FROM: Unanticipated Revenue (Transfers In) $381,945 FOR: MAX Ineligible Project Expenses $381,945 6. APP. FROM: Unanticipated Revenue (Contribution) $23,126 FOR: Lincoln Center Renovation Capital Project $23,126 D. CULTURAL SERVICES AND FACILITIES FUND 1. APP. FROM: Unanticipated Revenue (Bohemian Foundation) $28,089 FOR: Art in Public Places Administration $6,000 FOR: APP Project (Pianos About Town) $22,089 2. APP. FROM: Unanticipated Revenue (DDA) $8,000 FOR: Art in Public Places Administration $8,000 3. APP. FROM: Unanticipated Revenue (Transfer from Capital Projects) $14,500 FOR: Art in Public Places Administration $3,190 FOR: Art in Public Places Projects $11,310 4. APP. FROM: APP Operating Expense – Cultural Services & Facilities Fund $27,006 FOR: Art in Public Places Projects – Cultural Services & Facilities Fund $27,006 5. APP. FROM: Unanticipated Revenue (Transfer from Stormwater Fund) $30,866 FOR: Art in Public Places Administration $30,866 6. APP. FROM Unanticipated Revenue (Transfer from Light & Power Fund) $31,424 FOR: Art in Public Places Administration $31,424 43 of 433 - 4 - E. EQUIPMENT FUND 1. APP. FROM: Prior Year Reserves (Equipment Fund) $60,000 FOR: Equipment Lease Purchase Expenses $60,000 2. APP. FROM: Unanticipated Revenue (Insurance Proceeds) $30,800 FOR: Equipment Expenses $30,800 F. GENERAL IMPROVEMENT DISTRICT #15 - SKYVIEW FUND 1. APP. FROM: Existing Revenue $600 FOR: GID #15 Expenses $600 G. GOLF FUND 1. APP. FROM: Unanticipated Revenue (Greens Fees) $30,000 FOR: Golf Expenses $30,000 H. HOME FUND 1. APP. FROM: Unanticipated Revenue (HOME Grant) $810 FOR: HOME Grant Expenses $810 I. LIGHT AND POWER FUND 1. APP. FROM: Unanticipated Revenue (grant) $25,040 FOR: Electric Vehicle Charging Stations $25,040 2. APP. FROM: Prior Year Reserves $31,424 FOR: Transfer to Cultural Services & Facilities Fund (APP) $31,424 J. NATURAL AREAS FUND 1. APP. FROM: Unanticipated Revenue (Grant) $7,000 FOR: Natural Areas Expenses $7,000 2. APP. FROM: Unanticipated Revenue (donation) $5,000 FOR: Natural Areas Expenses $5,000 44 of 433 - 5 - K. SALES AND USE TAX FUND 1. APP. FROM: Prior Year Reserves (Sales & Use Tax Fund) $654,776 FOR: Transfer to Capital Projects - Building on Basics $327,388 FOR: Transfer to Natural Areas Fund $327,388 L. STORMWATER FUND 1. APP. FROM: Unanticipated Revenue (sale of property) $ 420,000 FOR: West Vine Drainage Basin Project $ 420,000 2. APP. FROM: APP Operating Expense - Stormwater Fund $4,617 FOR: Art in Public Places Projects - Stormwater Fund $4,617 3. APP. FROM: Prior Year Reserves $30,866 FOR: Transfer to Cultural Services & Facilities Fund (APP) $30,866 M. TRANSPORTATION SERVICES FUND 1. APP. FROM: Unanticipated Revenue (Contribution) $3,700 FOR: FC Bikes Program $3,700 2. APP. FROM: Unanticipated Revenue (Contribution) $10,000 FOR: Safe Routes to School Program $10,000 N. WASTEWATER FUND 1. APP. FROM: APP Operating Expense - Wastewater Fund $ 3,409 FOR: Art in Public Places Projects - Wastewater Fund $ 3,409 O. WATER FUND 1. APP. FROM: APP Operating Expense - Water Fund $10,000 FOR: Art in Public Places Projects - Water Fund $10,000 45 of 433 - 6 - Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 46 of 433 DATE: October 1, 2013 STAFF: Beth Higgins AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT First Reading of Ordinance No. 132, 2013, Appropriating Unanticipated Grant Revenue from the Institute of Museum and Library Services in the Museum Fund for “Living with Fire: A Community Responds” Grant Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate $138,933 in grant funds awarded to Fort Collins Museum of Discovery by the Institute of Museum and Library Services. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The Institute of Museum and Library Services has awarded Fort Collins Museum of Discovery $138,933 to complete a two-year community engagement project called Living with Fire: A Community Responds, focusing on the community impact of the 2012 High Park Fire. Through this project, the museum will achieve three goals: (1) to collect and share the stories of the people impacted by the fire; (2) to offer opportunities for collaboration, conversations and research with other local agencies; and (3) to provide educational programs to the community in collaboration with other agencies to share these stories and provide general information and resources. Agencies identified for collaboration include, but are not limited to, High Park Restoration Coalition; Center for Collaborative Conservation at Colorado State University; City of Fort Collins Utilities; Poudre Fire Authority; Rist Canyon, Livermore and Glacier View Volunteer Fire Departments; Larimer County; and US Forest Service. The project will begin on October 1, 2013 and will be completed by September 30, 2015. FINANCIAL / ECONOMIC IMPACTS The extent of financial or economic impact from this item will be commitment of matching funds in the amount of $186,957. This grant requires matching funds from the City of Fort Collins in the amount of $186,957, for a project total of $325,890. These funds will come from the Museum's operating budget. 47 of 433 ORDINANCE NO. 132, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES IN THE MUSEUM FUND FOR “LIVING WITH FIRE: A COMMUNITY RESPONDS” GRANT PROJECT WHEREAS, the City was awarded a grant in the amount of $138,933 from The Institute of Museum and Library Services to complete a two-year community engagement project called “Living with Fire: A Community Responds,” focusing on the community impact of the 2012 High Park Fire; and WHEREAS, the Museum will achieve three goals through this project: (1) collecting and sharing the stories of the people impacted by the fire; (2) offering opportunities for collaboration, conversations and research with other local agencies; and (3) providing educational programs to the community in collaboration with other agencies to share these stories and provide information and resources; and WHEREAS, the project will begin on October 1, 2013 and will be completed by September 30, 2015; and WHEREAS, this grant requires matching funds from the City in the amount of $186,957, for a total project cost of $325,890; and WHEREAS, the matching funds will come from existing appropriations in the 2013 and 2014 Museum budget; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined the appropriation of grant funds will not cause the total amount appropriated in the Museum Fund to exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from unanticipated grant revenue in the Museum Fund the sum of ONE HUNDRED THIRTY-EIGHT THOUSAND NINE HUNDRED THIRTY-THREE DOLLARS ($138,933) for the “Living with Fire: A Community Responds” grant project. 48 of 433 Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 49 of 433 DATE: October 1, 2013 STAFF: Wayne Sterler AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT First Reading of Ordinance No. 133, 2013, Appropriating Prior Year Reserves in the Light & Power, Water, Wastewater and Stormwater Funds for the 800 MHz Radio Communication System Capital Project. EXECUTIVE SUMMARY The purpose of this item is to appropriate funding for the purchase and installation of an 800 MHz radio system for the Utilities Department. Conversion of the former wide-band system to a narrow-band system was completed at the beginning of 2013. The narrow-band system is not meeting the Utilities' safety and communications needs for field personnel and infrastructure protection. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION On January 1, 2013, the Federal Communications Commission mandated that all of Utilities’ radio frequencies be “narrow-banded”. The Utilities’ radio system was previously a wide band system and was converted as mandated. Staff immediately saw a loss of quality and reliability of radio communications. There are 282 radios in use by Utilities personnel. Volume levels were effectively cut in half, and transmission and reception became sporadic and unreliable, significant static was introduced, and volume levels varied from radio to radio. Radio communications are vital for employee safety and system reliability. Use of the radio system whenever activity is taking place on the utility system insures all employees are aware of the activity occurring and the status of the system. The narrow-band system has created a situation where clear communication is lost, which means employees working on the system are not aware of all relevant situations potentially affecting them. A temporary solution has been provided by a vendor, and communication quality has been partially restored. This is not an acceptable long-term solution, however. In consultation with communications advisors, staff has determined the best long-term solution for meeting safety, reliability, quality, and maintenance requirements is to purchase an 800 MHz radio system. This system is similar to that used by police, fire and emergency medical personnel, and other Front Range utilities and will also allow for better communications between agencies during emergencies. Funding for the system is not available from the current Utilities’ budgets. With City Council approval of the needed appropriation, staff can begin the transition to the 800 MHz radio system immediately. FINANCIAL / ECONOMIC IMPACTS The total cost of the 800 MHz system to serve all Utilities personnel and locations is $1,460,665. This will be allocated to the four funds based on radios required. The split in costs between the four funds is as follows: $648,325 Light and Power $512,610 Water $240,920 Wastewater $ 58,810 Stormwater Reserves are available for the appropriation in all funds. In addition, there are annual fees associated with each radio on the system. The fees are $50 per radio, per year. Current appropriations will be utilized to pay the fees in 2014. 50 of 433 ORDINANCE NO. 133, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE LIGHT & POWER, WATER, WASTEWATER AND STORMWATER FUNDS FOR THE 800 MHZ RADIO COMMUNICATION SYSTEM CAPITAL PROJECT WHEREAS, in January 2013, the Federal Communications Commission mandated that all of the Fort Collins Utilities ‘ Department radio frequencies be “narrow-banded”; and WHEREAS, the Utilities radio system was previously a wide-band system and was converted as mandated; and WHEREAS, following the conversion, the radio system volume levels were effectively cut in half, transmission and reception became sporadic and unreliable, significant static was introduced, and individual radio volume levels varied from unit to unit; and WHEREAS, a temporary solution has been provided by a vendor, and communication quality has been partially restored, but an acceptable, long-term solution is still needed; and WHEREAS, in consultation with communications advisors, Utilities has determined that the best long term solution for meeting safety, reliability, quality, and maintenance requirements is to purchase an 800 MHz radio system, similar to that used by police, fire and emergency medical personnel and other Front Range utilities; and WHEREAS, there are 282 radios in use by Utilities personnel and the total cost of the 800 MHz system to serve all utilities personnel and locations is $1,460,665, which amount will be allocated to the four Utilities funds based on radios required for each Utilities division; and WHEREAS, there will be annual fees associated with each radio on the system of $50 per radio per year; and WHEREAS, current appropriations will be utilized to pay the fees in 2014; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff recommends appropriating $648,325 from prior year reserves in the Light & Power Fund, $58,810 in the Stormwater Fund, $240,920 in the Wastewater Fund, and $512,610 in the Water Fund for a total amount of $1,460,665 to be used for the purchase and installation of an 800 MHz radio system for the Utilities Department to benefit the citizens of the City. 51 of 433 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from prior year reserves in the Light & Power Fund the sum of SIX HUNDRED FORTY-EIGHT THOUSAND THREE HUNDRED TWENTY-FIVE DOLLARS ($648,325) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 2. That there is hereby appropriated for expenditure from prior year reserves in the Stormwater Fund the sum of FIFTY-EIGHT THOUSAND EIGHT HUNDRED TEN DOLLARS ($58,810) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 3. That there is hereby appropriated for expenditure from prior year reserves in the Wastewater Fund the sum of TWO HUNDRED FORTY THOUSAND NINE HUNDRED TWENTY DOLLARS ($240,920) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Section 4. That there is hereby appropriated for expenditure from prior year reserves in the Water Fund the sum of FIVE HUNDRED TWELVE THOUSAND SIX HUNDRED TEN DOLLARS ($512,610) to be used for or the purchase and installation of an 800 MHz radio system to benefit the citizens of the City. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 52 of 433 DATE: October 1, 2013 STAFF: Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT First Reading of Ordinance No. 134, 2013, Appropriating Prior Year Reserves in the Water Fund for Two Water Main Replacement Projects. EXECUTIVE SUMMARY The purpose of this item is to fund project design for the water main replacement on College Avenue and for design and construction of water main replacement on Meldrum Street. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION College Avenue Water Main Replacement The Colorado Department of Transportation (CDOT) will be repaving Highway 287 from Loveland north into the center of Fort Collins. The Fort Collins College Avenue portion of this work is anticipated to start in the spring of 2015. Fort Collins Utilities has water mains under this section of roadway that are deteriorating and undersized to adequately serve the current and anticipated population in the area. Staff proposes to reconstruct these lines in 2014, ahead of the CDOT work. The work includes the replacement of approximately 6000 feet of 4-inch and 6-inch cast-iron waterline in College Aveenue from Mulberry to Buckeye on the east side of College, and from Mulberry to Laurel on the west side of College. Staff believes it is important to start the design immediately (fall of 2013) so that completion of the construction in 2014 will be coordinated ahead of the CDOT schedule and to minimize the impact to the community. This appropriation requests $400,000 from the Water Fund Reserves for design work. Once design and cost estimates is complete, staff anticipates returning to Council with a follow-up request for construction funding, also to come from Water Fund Reserves. Meldrum Water Main Replacement Development in the downtown area has accelerated in recent years. It has been determined there is a significant deficiency in the Utilities’ ability to provide water service in several areas of the downtown due to an old undersized water main in a two-block stretch of Meldrum Street, south of Mountain Avenue. This replacement was not anticipated at the time of the 2013-2014 Budget Offer development. This appropriation requests $200,000 from the Water Fund Reserves to design and construct this replacement. Design work would be completed immediately and construction can begin yet this fall or early spring. FINANCIAL / ECONOMIC IMPACTS Water Fund reserves will be reduced by $600,000 with both proposed projects; however, all Water Fund reserve policies will continue to be met. ENVIRONMENTAL IMPACTS Design and construction will utilize best practices to minimize and mitigate environmental impacts of the projects. 53 of 433 October 1, 2013 -2- ITEM 12 BOARD / COMMISSION RECOMMENDATION The Water Board was provided an update of capital projects and proposed work earlier this summer, but no formal action was taken. PUBLIC OUTREACH Public outreach will coincide with the design and construction. ATTACHMENTS 1. Water main replacement map 54 of 433 Isotope Dr E Lake St E Laurel St Old Main Dr E Plum St W Myrtle St W Magnolia St E Olive St E Magnolia St E Myrtle St Locust St Mathews St Whedbee St E Oak St E Elizabeth St Garfield St Edwards St E Pitkin St Circle Dr S Whitcomb St University Ave W Plum St W Olive St Braiden Dr Edison Dr A St W Oak St S Meldrum St S Sherwood St Buckeye St South Dr W Pitkin St West Dr Canyon Ave W Lake St Peterson St S Mason St Oval Dr East Dr Center Avenue Ml N Mason St Riverside Ave W Laurel St E Mountain Ave W Mulberry St E Mulberry St S Mason St W Mountain Ave S Howes St Remington St S College Ave ÕZYXW ³I ³I Proposed Water City Main of Fort Replacement Collins Projects CITY GEOGRAPHIC These and were map OF not products FORT designed and INFORMATION COLLINS or all intended underlying for general data SYSTEM are use developed by members MAP for use of PRODUCTS the by the public. City of The Fort City Collins makes for no its representation internal purposes or only, warranty dimensions, as to contours, its accuracy, property timeliness, boundaries, or completeness, or placement and of location in particular, of any its map accuracy features in thereon. labeling or THE displaying CITY OF FORT COLLINS PARTICULAR MAKES PURPOSE, NO WARRANTY EXPRESSED OF MERCHANTABILITY OR IMPLIED, WITH OR RESPECT WARRANTY TO THESE FOR FITNESS MAP PRODUCTS OF USE FOR OR THE UNDERLYING FAULTS, and assumes DATA. Any all responsibility users of these of map the use products, thereof, map and applications, further covenants or data, and accepts agrees them ORDINANCE NO. 134, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE WATER FUND FOR TWO WATER MAIN REPLACEMENT PROJECTS WHEREAS, the Colorado Department of Transportation (CDOT) will be repaving U.S. Highway 287 from Loveland north into the center of Fort Collins, starting in the Spring of 2015; and WHEREAS Fort Collins Utilities has water mains under this section of roadway that are deteriorating and are not adequately sized to serve the current and anticipated population in the area; and WHEREAS, Utilities is proposing to reconstruct these lines in 2014 ahead of the CDOT work; and WHEREAS, the work includes the replacement of approximately 6,000 feet of 4" and 6" cast iron waterline in College Avenue from Mulberry Street to Buckeye Street on the east side of College and from Mulberry Street to Laurel Street on the west side of College Avenue; and WHEREAS, Utilities is requesting $400,000 from the Water Fund Reserves for design work; and WHEREAS, Utilities anticipates returning to Council with a follow up request for construction funding, also to be appropriated from Water Fund Reserves; and WHEREAS, Utilities has determined that there is a significant deficiency in its ability to provide service in several areas of downtown due to an old undersized two-block section of water main in Meldrum Street, south of Mountain Avenue; and WHEREAS, Utilities would complete design work immediately and begin construction in the fall 2013 or early spring of 2014; and WHEREAS, Utilities is requesting $200,000 from the Water Fund Reserves for design and construction work regarding the four-block section of water main; and WHEREAS, Article V, Section 9 of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated; and WHEREAS, City staff recommends appropriating from prior year reserves in the Water Fund $600,000 to be used for the design and construction work of two water main replacement projects to benefit the citizens of the City. 56 of 433 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the Water Fund the sum of SIX HUNDRED THOUSAND DOLLARS ($600,000) to be used for the design and construction work of water main replacement projects to benefit the citizens of the City, involving portions of water mains located in College Avenue from Mulberry Street to Buckeye Street on the east side of College and from Mulberry Street to Laurel Street on the west side of College Avenue; and the two-block section in Meldrum Street, downtown, south of Mountain Avenue. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 57 of 433 DATE: October 1, 2013 STAFF: Lance Smith, Brian Janonis, Kevin Gertig, Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreement. A. First Reading of Ordinance No. 135, 2013, Authorizing the Mayor to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise for the Delivery of Potable Water. B. First Reading of Ordinance No. 136, 2013, Authorizing the Mayor to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins Water Utility Enterprise. EXECUTIVE SUMMARY The purpose of this item is twofold: 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BACKGROUND / DISCUSSION In 1999 a Joint Transmission Study was completed by Fort Collins Utilities and the Tri-Districts to determine the need for additional transmission capacity throughout the community. An outcome of that study was the decision by Fort Collins Utilities to build a 60” transmission system which, in addition to meeting the demands of Fort Collins Utilities, would be utilized by FCLWD to convey water from the Soldier Canyon Treatment Plant (SCFP) to FCLWD customers through an IGA. The current water sharing agreement between the City and FCLWD has been in effect since 1999 for that purpose. Delivery points into the FCLWD distribution system were specified in the agreement as were two points of entry into the Fort Collins Utilities transmission system from SCFP. The intention of the water sharing agreement was to allow for an annual balancing between how much water was conveyed through the Fort Collins Utilities transmission system from SCFP and how much water was taken from the Fort Collins Utilities transmission system by FCLWD and to specify the terms of the lease of the excess capacity in the new 60” transmission pipe. No changes are being proposed to the leasing terms and associated transmission charges except to include two additional points of delivery which have been added since 1999. Many of the terms of the agreement concerning the balancing and settlement of imbalances are outdated however, including the amount of water being shared, the points of delivery for any shared water as discussed above and the settlement price of any resulting annual imbalance. In an effort to address these inconsistencies, Fort Collins Utilities and FCLWD have negotiated new terms for the agreement over the past year. October 1, 2013 -2- ITEM 13 Ongoing development within the FCLWD service area has created a need for higher daily flows of water through the Fort Collins Utilities transmission system into the FCLWD distribution system. The amended agreement being proposed herein will increase the daily flow limit from 9 to 12 MGD which along with the proposed agreement for the sale of excess treatment capacity discussed below should allow FCLWD to meet their demand for several years. (Please note that Fort Collins Utilities is expecting to amend the existing water sharing agreement with North Weld County Water District to lower the maximum daily flow of that agreement from 12 MGD to 9 MGD, hence there is no increase in the combined treatment capacity obligation by Fort Collins Utilities for these agreements.) The current water sharing agreement allows for an annual settlement of any imbalance at $0.36 per thousand gallons with no raw water being provided. This settlement price is well below the current direct cost of treatment much less the current total cost of treatment. As such, the fixed price of settlement, along with no raw water being provided in the settlement, is no longer acceptable to Fort Collins Utilities. To date all annual imbalances have fallen within the specified 5% limit which allows the imbalance to be carried forward into the next water year. However, in the foreseeable future this may not be the case. To make it possible to not require annual settlements in the past it has been necessary for FCLWD to push significant amounts of water to Fort Collins Utilities during shoulder months (February - April and September - October) in order to offset the significant imbalance that occurs during the irrigation season (May - August). In effect, Fort Collins Utilities has provided FCLWD with treatment capacity to meet their peak demand without compensation in the past. The proposed amendment will address these issues by allowing for annual adjustments in the settlement price, requiring raw water is transferred between parties and requiring monthly settlement of any imbalance in excess of 12 million gallons. Because the proposed settlement price for 2013 of $2.0338 per thousand gallons inclusive of the payment in-lieu of taxes (plus transmission charges as outlined in the current agreement) is significantly higher than the current agreement specifies and may require an immediate rate increase for FCLWD customers, Fort Collins Utilities has agreed to ask City Council to allow for this rate to be stepped into over 3 years beginning at $1.3500 per thousand gallons inclusive of the payment in-lieu of taxes in 2013. The terms of the agreement are mutual so that the same settlement terms apply to any imbalance owed to Fort Collins Utilities or FCLWD. Because Fort Collins Utilities has excess treatment capacity and the agreement outlines the right of refusal by either party of water through daily communication, it is not anticipated that Fort Collins Utilities will have a need to take sufficient water from FCLWD to result in a monthly imbalance requiring settlement under normal operating conditions. Lastly on the water sharing agreement, although the letter from FCLWD on May 31 (Attachment 2) states both parties are agreeable to making the proposed amendments effective June 1, 2013, the amended agreement will be effective beginning with the 2013-14 water year which begins on November 1, 2013. In addition to renegotiating the terms of the water sharing agreement, both parties have spent considerable time reaching consensus on the proposed agreement for the sale of some of the excess water treatment capacity at the Fort Collins Utilities water treatment facility (WTF). The WTF was last expanded prior to the significant conservation efforts of the past decade which have resulted in the WTF treatment capacity of 87 MGD being at least 20 MGD above Fort Collins Utilities expected demand at build out in 2035 (Attachment 3). The proposed amendment for the sale to FCLWD of up to 5 MGD of treatment capacity provides Fort Collins Utilities customers a significant source of revenue to offset future operating expenses at the WTF and allows for future capital improvements to the existing facilities. The terms of the agreement do not involve the transfer of raw water rights as FCLWD is acquiring 5 MGD of treatment capacity only. Any raw water treated at the WTF for FCLWD through this agreement will result in the transfer of the same amount of raw water to Fort Collins Utilities through the Colorado-Big Thompson’s Horsetooth Reservoir. The associated plant investment fee (PIF) is $12.6M for 5 MGD of treatment capacity. FCLWD has asked the City to allow it to pay for the PIF associated with 1 MGD, or $2,520,000, upon the agreement becoming effective and to amortize the remaining PIF for 4 MGD, or $10,600,000, over 20 years at 5% interest resulting in monthly payments of $66,524, or $798,282 annually. In addition to the PIF, any water that is treated and delivered through this agreement to FCLWD will include treatment charges of $2.1093 per thousand gallons inclusive of payment in-lieu of taxes along with the transfer of an equal amount of Colorado-Big Thompson Project (CBT) water from FCLWD to Fort Collins Utilities. FCLWD has requested the option to purchase an additional 5 MGD of treatment capacity from the WTF under the same terms. While Fort Collins Utilities is not agreeing to the right of first refusal for this additional 5 MGD, Fort Collins Utilities will work closely with FCLWD to ensure FCLWD is aware of how much excess capacity exists at the WTF in the future. 59 of 433 October 1, 2013 -3- ITEM 13 FINANCIAL / ECONOMIC IMPACTS The financial impact of the proposed amendment affecting the sharing of water between the two parties is difficult to quantify as it depends greatly on the annual variability in water demand. Monthly imbalances requiring settlement are likely in the irrigation season (May - August) when FCLWD has historically taken more water than it has returned to Fort Collins Utilities. Thus, amending the agreement to have monthly rather than annual settlements may increase the cost of water for FCLWD customers as it will no longer allow FCLWD to effectively use this agreement to meet its summer peak demand through the use of treatment capacity it has not invested in creating. Correspondingly, it may offset some of the indirect treatment costs currently paid by Fort Collins Utilities customers through the monthly settlement of any imbalance. The financial impacts of the proposed agreement for the sale of excess treatment capacity also depend on the annual variability in the demand for water with the exception of the plant investment fee. The budget for 2013-14 assumed an average annual collection of $650,000 in plant investment fees. In addition to the initial payment of $2,520,000 for 1 MGD of capacity, the annual payments associated with amortizing the purchase of the remaining 4 MGD of treatment capacity is $798,282. Thus, amortizing the plant investment fee over 20 years will result in significantly increasing the amount of capital available annually for investment in renewing the WTF infrastructure. ENVIRONMENTAL IMPACTS If the proposed sale of excess treatment capacity is not entered into by both parties, the increased demand for treated water by FCLWD may require the expansion of the SCFP or the construction of a new water treatment facility. The potential environmental impacts of either of those solutions to meet FCLWD’s growing demand for treated water would at a minimum be deferred by several years through the proposed sale. BOARD / COMMISSION RECOMMENDATION At its June 20, 2013 meeting, the Water Board voted unanimously to recommend approval of the amendments to the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District. (Attachment 4) ATTACHMENTS 1. Existing FCLWD Intergovernmental Agreement for the Delivery of Potable Water January 1999 2. FCLWD Response Letter to Proposed Amendments to Existing Water Share Agreements 3. Internal Memo on WTF Excess Capacity at Build-out in 2035 4. Water Board minutes, June 20, 2013 60 of 433 61 of 433 62 of 433 63 of 433 64 of 433 65 of 433 66 of 433 67 of 433 68 of 433 69 of 433 70 of 433 71 of 433 72 of 433 73 of 433 74 of 433 75 of 433 76 of 433 77 of 433 78 of 433 79 of 433 80 of 433 81 of 433 82 of 433 Attachment 3 1 M E M O R A N D U M DATE: September 18, 2012 TO: Brian Janonis, Utilities Executive Director Mike Beckstead, Chief Financial Officer City of Fort Collins Kevin Gertig, Water Resources / Treatment Operations Manager Lisa Voytko, Water Production Manager FROM: Donnie Dustin, Water Resource Manager Lance Smith, Strategic Financial Planning Manager RE: Updated estimation of excess capacity at the Water Treatment Facility in 2035 The Water Treatment Facility (WTF) Master Plan reviews the plant capacity, including future demands, on a five year basis. The excess capacity should be determined and re‐assessed for each update of the Plant Investment Fees. The available capacity is also important for evaluating potential water sales and water share agreements so the impact of any such agreements on long‐term planning is understood beforehand. The WTF currently has a maximum daily capacity of 87 million gallons per day (MGD). As the graph below shows, peak daily demand has declined in recent years from it previous peak in 1997. This is a result of the decrease in gallon per capita water usage following the water restrictions in 2003 and the subsequent water conservation programs implemented by the City. This memo summarizes the analysis used to determine the current projection of excess capacity at build‐out in 2035. Highest Daily Production (MG) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 The projection is a straight forward calculation that hinges on three variables: population being served, annual average gallons (used) per customer per day (GPCD) and capacity factor (or ratio of the peak day demand to the average daily demand). Each of these parameters has been 83 of 433 2 estimated with upper and lower boundaries using a triangular distribution. The capacity factor, for example, is estimated to fall somewhere between 2.0 and 2.75 with an expected value of 2.35. Analytically, the capacity factor and the GPCD are the most significant variables and are correlated in the modeling. The excess capacity is then determined through a Monte Carlo simulation and the resulting excess capacity is shown in blue in the graphs below. The estimated excess capacity has a mean value of 24 MGD with a lower bound estimate of 15 MGD (which represents the 10% level of the cumulative distribution). The amount of treatment plant capacity used by Fort Collins includes the 5.82 MGD of capacity owned by a single large customer and the capacity required to serve the West Fort Collins Water District, but does not include the 2 MGD of capacity required for the sales agreement with the Fort Collins – Loveland Water District. So, 2 of the 24 MGD are already assigned to a water sale agreement. Any other water sale agreements the City may enter into in the future, as well as any reserve capacity Fort Collins Utilities determines should be held, will need to be accommodated within the remaining 22 MGD. Water sales agreements include a plant investment fee (PIF) for the purchase of plant capacity. Water sharing agreements do not include a PIF and, therefore, are on an as available basis and are not included here either. 84 of 433 3 It was not anticipated that the City’s water use (in GPCD) would be so much lower in 2012 than it was prior to the last plant expansion in 1999. However, based on the City’s recent water use, this 24 MGD of excess capacity is expected to exist through 2035. As such, any opportunity to sell some of this excess capacity to other water districts or municipalities allows for some of the capital investment in the water treatment facility to be recovered outside of the rate base. The PIF associated with any such sale should be set aside just like any other PIF for future capital investment. The incremental revenue from the water sales can be utilized for operational costs, thereby reducing the fixed O&M costs being recovered from the rate base. 85 of 433 Attachment 4 Excerpt from Approved Water Board Minutes – June 20, 2013 Intergovernmental Agreements with Fort Collins Loveland Water District Mr. Haukaas introduced the item and introduced Strategic Financial Planning Manager Lance Smith. For the past year, staff has been negotiating with Fort Collins Loveland Water District (FCLWD) to restructure the existing water sharing agreement and to enter into a new water sales agreement. There are two separate agreements:  Amending existing water sharing agreement “Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District”  Entering into a new sales agreement “Intergovernmental Agreement for the Sale of Potable Water with FCLWD” Mr. Smith presented information on the Current Water Sharing Agreement:  In effect since 1999  Intended to allow FCLWD to lease transmission capacity from Fort Collins Utilities (FCU) to convey water to FCLWD  The current daily limit is 9 mgd. The current annual limit is 1.25 billion gallons.  Any imbalance less than 2 percent of annual amount conveyed may be carried over from one year to the next. Mr. Smith presented a graph showing the monthly imbalance for the current water sharing agreement from November 2010 through October 2012. The proposed daily limit would increase to 12 mgd. The proposed annual limit would increase to 1.75 billion gallons. Benefits of Amended Agreement  Eliminates imbalance being reduced in shoulder months thereby improving utilization of water rights portfolio  Eliminates possibility of settlement below cost of treatment and without raw water  Provides compensation for use of excess treatment capacity  Reconfirms cooperation between water providers Mr. Smith presented information on the proposed Water Sales Agreement. This is in addition to the Water Sharing Agreement. The actual water demand will vary up to 5 million gallons per day. The rate includes the total cost of treatment. FCU will receive raw water back the month after treated water is delivered to FCLWD. Benefits of Water Sales Agreement  Increases regional utilization of existing infrastructure  Allows for FCU to recover previous investment in excess treatment capacity  Provides consistent incremental revenue stream for capital improvements Highlights from the discussion:  A board member asked for clarification on the daily limit of 5 mgd. Mr. Smith stated the daily limit is the buying capacity at the plant. All water will flow through the Utilities transmission system. 86 of 433 Attachment 4  A board member inquired about the stipulation on the proposed amendment for carryover. Mr. Smith stated this is part of the proposed amendment on a monthly basis.  A board member asked about the water quality between the two plants. Water Production Manager Lisa Voytko stated there is some chlorine residual in the water pushed back to the Utilities plant. There are some differences in water quality.  A board asked for the number of individuals serviced by Fort Collins Utilities. Mr. Haukaas stated Utilities services approximately 34,000 taps and approximately 80,000 to 90,000 individuals. This is between one-half and two-thirds of the total population of Fort Collins. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Board Member Brown moved that the Water Board recommend to City Council to approve the Water Enterprise Fund amending the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District as presented to the Fort Collins Water Board. Board Member Garner seconded the motion. 87 of 433 - 1 - ORDINANCE NO. 135, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE FOR THE DELIVERY OF POTABLE WATER WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (hereinafter referred to as “the Soldier Canyon IGA”) with the East Larimer County Water District (hereinafter referred to as “ELCO”) and the North Weld County Water District (hereinafter referred to as “NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHEREAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (hereinafter referred to as “the Soldier Canyon Treatment Plant”); and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the City and the District have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District 88 of 433 - 2 - to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) to reflect the current needs and commitments of the parties; and WHEREAS, the terms and conditions pursuant to which the City and the District would exchange potable water are set forth in the AAmended and Restated Intergovernmental Agreement for the Delivery of Potable Water,@ a copy of which is attached hereto as Exhibit AA@ and incorporated herein by reference (the AAgreement@); and WHEREAS, in addition to updating and clarifying numerous aspects of the Water Delivery Agreement, the Agreement removes Soldier Canyon from party status, and provides that the District is responsible for ensuring that the water delivery obligations of the District are met; and WHEREAS, the Agreement provides for its retroactive application to June 1, 2013, incorporating new rates and raw water requirements, and other terms and conditions; and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Article XII, Section 6 of the Charter provides that the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the utilities in good repair and working order, and for other enumerated purposes; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the 89 of 433 - 3 - Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby approves the Agreement, including the rates, fees and charges set forth in the Agreement, and finds and determines the Agreement to be for the benefit of the City Water Utility and its ratepayers. Section 2. That the Council hereby authorizes the Mayor to execute the Agreement on behalf of the City, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Ordinance. Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 90 of 433 - 4 - Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 91 of 433 Amended and Restated Water Delivery Agreement September 25, 2013 1 AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE DELIVERY OF POTABLE WATER This Amended and Restated Intergovernmental Agreement for the Delivery of Potable Water (“Water Delivery Agreement”) is made and entered into this 13th day of September, 2013, effective as of November 1, 2013, by and between the CITY OF FORT COLLINS, a Colorado municipal corporation, (hereinafter referred to as “the City”), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, an enterprise of the City (hereinafter referred to as “the City Enterprise”), the FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), and the FORT COLLINS- LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”) (all collectively referred to as the “Parties”). W I T N E S S E T H : WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water EXHIBIT A Amended and Restated Water Delivery Agreement September 25, 2013 2 transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995 (hereinafter referred to as “the Soldier Canyon IGA”), with the East Larimer County Water District (hereinafter referred to as “ELCO”) and the North Weld County Water District (hereinafter referred to as “NWCWD”); and WHEREAS, the Soldier Canyon IGA by its terms created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHEREAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (hereinafter referred to as “the Soldier Canyon Treatment Plant”); and WHEREAS, pursuant to C.R.S. Section 29-1-203(1), governmental entities in Colorado are authorized to cooperate or contract with one another to provide any function, service or Amended and Restated Water Delivery Agreement September 25, 2013 3 facility lawfully authorized to each of the cooperating or contracting governmental entities; and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) (both of which, together with this Agreement, are sometimes referred to collectively as the “Water Agreements”), to reflect the current needs and commitments of the parties; and Amended and Restated Water Delivery Agreement September 25, 2013 4 WHEREAS, the Water Agreements specify certain volumes, prices and delivery points that apply for the sharing and sale of potable water as set forth therein; and WHEREAS, in order to update the terms of service for the delivery of potable water, the parties have negotiated the terms and conditions set forth herein, which the parties agree amend and restate the Water Delivery Agreement and, to the extent of any conflict, amend and supersede the Water Sales Agreement; and WHEREAS, it is the intent of the parties, with the consent of Soldier Canyon, to remove Soldier Canyon as a party to the Water Delivery Agreement. NOW, THEREFORE, in consideration of the parties’ mutual promises and agreements contained herein, and other good and valuable consideration, the receipt and accuracy of which are hereby acknowledged, the parties hereto agree as follows: 1. Term of Agreement. The obligations of the parties under this Agreement shall be perpetual in duration and shall not expire unless terminated as provided in paragraph 10 or 11 below. 2. Delivery of Potable Water to the District. A. It is the understanding of the parties that due to the configuration of the District’s Transmission Facilities, and the manner in which potable water flows into the District’s System from the City’s Transmission Facilities, it is not necessary for the District to request deliveries from the City. Instead, through its operations, the District will coordinate with the City for the normal operation of its System so as to allow for delivery of potable water from the City’s System to the District’s System on an ongoing basis, at levels consistent with the terms of this Agreement and in accordance with the terms and conditions set forth herein. The District will Amended and Restated Water Delivery Agreement September 25, 2013 5 notify the City in advance of any infrastructure or operational changes in the District’s System the affect the interconnection of the systems covered under this Agreement, except in the event of emergency circumstances, in which case the District shall notify the City as early as reasonably possible of the emergency and related System changes. B. The City shall only be obligated to deliver water to the District to the extent it legally and physically has surplus potable water available after meeting all the needs of the customers of the City Water Utility and provided that it is reasonably practicable for the City to operate its System so as to provide water to the delivery points as requested and as specified in this Agreement; C. In no event, however, shall the City be obligated under this Agreement to deliver to the District more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year (a “Water Year”, for purposes of this Agreement, shall mean November 1 of a year to October 31 of the following year). Any deliveries under the Water Sales Agreement shall be accounted for before the application of the charges and delivery limits under this Agreement. Any deliveries made in excess of the deliveries provided for in this Agreement, and all deliveries to the Harmony Meter Station and the Fossil Ridge Meter Station, as defined in the Water Treatment Agreement, shall be considered deliveries under the Water Treatment Agreement. Deliveries under the Water Sales Agreement or the Water Treatment Agreement shall be separately accounted for and invoiced in accordance with the applicable terms and conditions, and shall be subject to the limitations set forth Amended and Restated Water Delivery Agreement September 25, 2013 6 therein; and D. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points: 1. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); 2. The existing connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). 3. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); 4. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way and Timberline Road (the “Timberline Meter Station”); and 5. A new connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the northwest corner of the intersection of Ziegler Road and Rock Creek Amended and Restated Water Delivery Agreement September 25, 2013 7 Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”). 3. Delivery of Potable Water to the City. It is the understanding of the Parties that the City’s need for delivery of potable water from the District has generally declined over time relative to the District’s need for potable water from the City. The Parties do not anticipate that the City will request water deliveries from the District to exceed any amounts beyond that necessary to offset or balance deliveries to the District under this Agreement. To the extent that the City desires that the District deliver potable water to the City, the City shall specifically request such delivery and designate the date, location and amount of water to be delivered, and the District shall deliver the potable water as requested, subject to the limitations set forth herein. The District shall only be entitled to credit for water requested by the City and actually delivered by the District pursuant to a City request. A. It is the understanding of the Parties that unplanned deliveries of water into the City’s Transmission Facilities have the potential to disrupt the functioning of the City’s System and operation of the City’s Water Treatment Plant. Water deliveries to the City other than those requested have the potential to disrupt the operation of the City’s Treatment Plant, and are not permitted. In the event that deliveries from the District to the City begin to exceed that necessary to balance previous deliveries from the City to the District, FCLWD shall immediately inform the Soldier Canyon Treatment Plant to reduce production into the Transmission Systems to a level that does not create a surplus to the City. B. In responding to the City’s request for the delivery of water, the District shall only be obligated to honor the City’s request to the extent it legally and physically has Amended and Restated Water Delivery Agreement September 25, 2013 8 surplus potable water available after meeting all the needs of its customers and provided that it is reasonably practicable for the District to operate its System so as to provide the water to the delivery points as requested and as specified in this Agreement. C. In no event, however, shall the District be obligated under this Agreement to deliver to the City more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year; and D. For the purposes of water deliveries under this Agreement, all water deliveries from the District to the City shall be at one of the following delivery points: 1. The Cross-Tie; and 2. The Overland Pump Station. 4. Compensation for Water Delivered. No more than ten (10) days after the end of every month in each Water Year, and no more than fifteen (15) days after the end of every Water Year, for all annual charges, the City and the District shall perform an accounting to determine the amount of potable water delivered by each party to the other during the applicable billing period. The parties acknowledge and agree that the rates and charges established pursuant to this paragraph 4 incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. The charges shall be as set forth herein below, adjusted to exclude deliveries under the Water Sales Agreement, as described in paragraph 5 of the Water Sales Agreement, provided that the Water Sales Agreement remains in effect. No deliveries to the Harmony Meter Station or the Fossil Ridge Meter Station, as defined in the Water Treatment Amended and Restated Water Delivery Agreement September 25, 2013 9 Agreement, shall be considered deliveries under this Agreement or under the Water Sales Agreement. A. The District shall pay annual transmission charges to the City for delivery of water under this Agreement. 1. The District Enterprise shall pay annual transmission charges, as follows: a. Transmission charges at a rate of Six Thousand Seven Hundred and Fifty Dollars ($6,750.00) for each million gallons, or portion thereof, delivered to the Taft Hill Pumping Station on the day of the highest peak delivery during the preceding twelve (12) month period; and b. Transmission charges at a rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Ziegler Meter Station on the day of the highest peak delivery during the preceding twelve (12) month period; and c. Transmission charges at rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Timberline Meter Station, on the day of the highest peak delivery during the preceding twelve (12) month period. 2. If the peak day for any of the above connections occurs on the same day that the District exceeds 12 million gallons of potable water delivered from the City, the excess over 12 million gallons, which will be charged at the Amended and Restated Water Delivery Agreement September 25, 2013 10 rate in the Water Treatment Agreement (which includes transmission charges) will be deducted from the peak day calculation. 3. No less frequently than after each Water Year, the City shall invoice the District Enterprise for the total transmission charges under this Agreement and the District Enterprise. In the City’s discretion, the City may from time to time modify the frequency of billings and payment of the transmission charges by providing no less than two (2) months advance written notice to the District. B. For all water delivered under this Agreement, in any given month within a Water Year that the respective amounts requested by and delivered to each of the parties differ by no more than twelve million (12,000,000) gallons (the “Carryover Limit”), then the calculation of applicable overage charges under this subparagraph B will be carried over and incorporated into the calculation and related billing for overage charges for the succeeding month. In any month that the respective amounts requested by and delivered to each of the parties, adjusted by any carryover from the preceding month as set forth above, differ by more than the Carryover Limit, the party receiving the greater amount (the “Owing Party”) shall owe this difference to the other party (the “Owed Party”) compensation for the difference between the amount delivered and amount received by that party (the “Overage”) as described in paragraph C below: C. It is the intent of the Parties to adjust the rate payable for an Overage over approximately a three year period. The City is projecting rate increases of 4% annually over the next several years. The rate shall become equal to the full Amended and Restated Water Delivery Agreement September 25, 2013 11 treatment charges of the City beginning in calendar year 2017. For deliveries in all calendar years after 2017, the rate for overage charges shall be adjusted annually on a calendar year basis at a rate consistent with the overall rate increase to the entire customer base of the City. 1. The schedule to step into the full rate shall be as follows: a. For deliveries in the remainder of calendar year 2013 and the full calendar year 2014, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Thirty-Five and Zero Hundredths Cents ($1.3500) per thousand gallons of metered flows. b. For deliveries in calendar year 2015, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Sixty-Nine and Twenty Hundredths Cents ($1.6920) per thousand gallons of metered flows. c. For deliveries in calendar year 2016, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of Two Dollar and Three and Thirty-Eight Hundredths Cents ($2.0338) per thousand gallons of metered flows. 2. Such compensation shall be paid within thirty (30) days after the issuance of the related invoice by the Owed Party and it shall be paid by the City Enterprise or the District Enterprise, as applicable, solely from the net revenues of their respective water utilities. D. Financial obligations of the City in this paragraph 4 are intended and deemed to be Amended and Restated Water Delivery Agreement September 25, 2013 12 the legal obligation of the City Enterprise, and financial obligations of the District in this paragraph 4 are intended and deemed to be the legal obligation of the District Enterprise. E. It is the intent of the parties that overages or imbalances in water delivery amounts will be reconciled on a monthly basis, and no balances will be carried forward from Water Year to Water Year. 5. Water Quality. All potable water delivered to the City by the District and by the District to the City under this Agreement shall meet or exceed all quality standards for potable water that are required by the Environmental Protection Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health and Environment (hereinafter referred to as “the CDPHE”)(hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the party delivering the water up to the point of delivery and upon the party receiving the water after the point of delivery. In the event the EPA CDPHE imposes a water quality standard on the City or the District that is stricter than the standard required of the other, each party shall be required to meet that stricter standard for all potable water it delivers under this Agreement. In the event the City or the District discovers that any water delivered, being delivered or to be delivered by it under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. Regardless of the foregoing, if at any time and for any reason the City or the District has a good faith concern about whether the potable water to be delivered or being delivered to it under this Agreement meets all of the Water Quality Standards, it may refuse Amended and Restated Water Delivery Agreement September 25, 2013 13 to accept such water. Such refusal shall not be considered as a breach of or default under this Agreement. The City and the District further agree to notify the other party in writing of any proposed change to their respective water treatment processes before implementing such change if it could affect the quality of potable water delivered under this Agreement. 6. Metering and Infrastructure. In order to accurately account for the potable water delivered under this Agreement, metering, recording and telemetry devices shall be installed and maintained at the points of delivery specified in this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation Amended and Restated Water Delivery Agreement September 25, 2013 14 said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Water Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds the allowed twelve million (12,000,000) gallons, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection systems. 7. Maintenance and Repairs. If the City or the District anticipates that any scheduled maintenance or repair of its respective facilities could significantly interfere with the delivery of potable water under this Agreement, that party shall give the other party, if reasonably practicable, at least seven (7) calendar days prior written notice of the scheduled maintenance or repairs. Also, when reasonably practicable, the City and the District shall attempt to schedule such maintenance and repairs during periods of low demand by the other party for potable water under this Agreement. If, however, an unscheduled interruption of service under this Agreement occurs and in order to restore such service it is necessary to make repairs to the affected facilities, the party whose facilities are affected shall promptly notify the other party of the problem and proceed with due diligence to make the needed repairs. 8. District’s Obligations with respect to Soldier Canyon Filter Plant (Soldier Canyon). The parties acknowledge and agree that the District may perform its obligations under this Agreement through Soldier Canyon to the extent they involve or relate to the delivery of water to Amended and Restated Water Delivery Agreement September 25, 2013 15 the City, including, without limitation: (a) satisfying the Water Quality Standards and the testing, monitoring and reporting requirements and standards set forth in paragraph 5, above; (b) furnishing, installing and maintaining metering, recording and telemetry devices at the Soldier Canyon Treatment Plant pursuant to paragraph 6, above; and (c) physically controlling the delivery of water to the City in accordance with paragraph 3, above., provided, however, that the District will remain responsible for satisfactory performance of its obligations as a condition of the enjoyment by the District of the benefits of this Agreement. 9. Future Cooperative Intergovernmental Agreements. The parties acknowledge that the City and the District are currently in the process of evaluating opportunities for future coordination, collaboration and shared services in order to provide efficient and cost-effective services to their respective customers. Accordingly, the parties acknowledge that the arrangements set forth in this Agreement may be superseded or modified in the future to reflect the outcome of those efforts. 10. Termination for Breach. Both the City and the District may terminate this Agreement upon a material breach by the other party of any term or condition of this Agreement if such breach continues for a substantial and unreasonable period of time, but in any event if the breach has continued for a period of sixty (60) days after receipt by the breaching party from the non- breaching party of a written notice of the existence of such breach. Notwithstanding any provision contained herein to the contrary, in no event shall the City or the District terminate this Agreement if the party at fault proceeds, after receiving said notice, with due diligence to correct or rectify the material breach regardless of the duration of such breach. Termination of this Agreement shall not, however, be the sole remedy of either party and any exercise of this right to terminate shall not preclude the pursuit of any other remedy available in law or in equity to the Amended and Restated Water Delivery Agreement September 30, 2013 16 non-breaching party. 11. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by either party upon the provision of written notice of termination no less than ten (10) five (5) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. 12. Force Majeure. Notwithstanding anything contained herein to the contrary, it is agreed that in the event and to the extent that fire, flood, earthquake, natural catastrophe, explosion, accident, war, illegality, act of God, or any other cause beyond the control of any party hereto, or strikes or labor troubles (whether or not within the power of the party affected to settle the same) prevents or delays performance by any party to this Agreement, such party shall be relieved of the consequences thereof without liability, so long as and to the extent that performance is prevented by such cause; provided, however, that such party shall exercise due diligence in its efforts to resume performance within a reasonable period of time. 13. Cooperation of the Parties. The City and the District acknowledge that it is difficult to anticipate all of the activities, situations and other factors which may be relevant to them in satisfying their respective obligations under this Agreement. Therefore, the parties acknowledge that it will be necessary for them to cooperate with each other relative to any such unforeseen situations. In furtherance thereof, the City and the District agree that at the end of every Water Year, their representatives shall meet to discuss, in good faith, any modifications that any party Amended and Restated Water Delivery Agreement September 25, 2013 17 believes necessary or appropriate to this Agreement in order to avoid an inequitable situation. In the event that the parties shall mutually agree to any such modification, it shall only be effective if set forth in writing and signed by all of the parties hereto. 14. Governing Law and Enforceability. This Agreement shall be construed in accordance with the laws of the State of Colorado. In addition, the parties hereto recognize that there are legal constraints imposed upon the City and the District by the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by the City Charter and City Code, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall any of the parties hereto exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 15. Indemnification. A. In connection with the City’s performance of its obligations under this Agreement, the City agrees, to the extent permitted by law, to indemnify and hold harmless the District, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the City, or of its officers or employees, provided that such act or omission by the City’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the City agrees, to the extent permitted by law, to indemnify the District, and their respective officers and employees, from all costs and expenses related to defending such liabilities, Amended and Restated Water Delivery Agreement September 25, 2013 18 claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees whether or not any such liabilities, claims and demands are groundless, frivolous, false or fraudulent. B. In connection with the District’s performance of its obligations under this Agreement, the District agrees, to the extent permitted by law, to indemnify and hold harmless the City, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the District, or of its officers or employees, provided that such act or omission by the District’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the District agrees, to the extent permitted by law, to indemnify the City, and their respective officers and employees, from all costs and expenses related to defending such liabilities, claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees, whether or not such liabilities, claims and demands are groundless, frivolous, false or fraudulent. To the extent the District will rely on third parties, such as Soldier Canyon, to carry out elements of the District’s performance hereunder, the District shall be responsible for ensuring any such third parties provide adequate insurance, warranties and performance to protect the City from loss or damage from any such performance, and the District shall be liable to the City for claims, demands or losses of or by the City that are not cured or remedied by, or for which the District has not secured full recourse for the benefit of the City against such third parties. Amended and Restated Water Delivery Agreement September 25, 2013 19 16. Inspection of Records. Each party agrees to allow each of the other parties to this Agreement to inspect and copy at reasonable times, with reasonable advance notice, all of its relevant records needed by any other party to verify the quantities of potable water delivered under this Agreement and to verify compliance with the standards and requirements of this Agreement. 17. Assignment. This Agreement shall not be assigned by any of the parties hereto without the prior written consent of all the other parties hereto, each in its sole discretion. 18. Default/Remedies/Immunity. If any party fails to comply with the provisions of this Agreement, the other party or parties, after providing written notification to the noncomplying party and upon the failure of the noncomplying party or parties to achieve compliance within thirty (30) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, or actual damages, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party or parties shall be entitled to payment by the defaulting party or parties of actual attorneys’ fees and costs incurred. Nothing in this paragraph 18 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. Amended and Restated Water Delivery Agreement September 25, 2013 20 19. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of law principles, will be applied in the interpretation, execution and enforcement of this Agreement. 20. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: District: District Manager Fort Collins-Loveland Water District 5150 Snead Dr. Fort Collins, CO 80525 City: Utilities Executive Director City of Fort Collins P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 21. Complete Agreement. To the extent provided herein, this Agreement supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. Amended and Restated Water Delivery Agreement September 25, 2013 21 22. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 23. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 24. Waiver. No waiver or delay of enforcement by any of the parties hereto of any of the terms and conditions of this Agreement shall be deemed to be or shall be construed as a waiver of any other term or condition, nor shall a waiver of any breach of this Agreement be deemed to constitute a waiver of any subsequent breach of the same provision of this Agreement. 25. Construction. This Agreement shall be construed according to its fair meaning and as if it was prepared by all the parties hereto and shall be deemed to be and contain the entire agreement between the parties hereto. There shall be deemed to be no other terms, conditions, promises, understandings, statements or representations, expressed or implied, concerning this Agreement, unless set forth in writing and signed by all of the parties hereto. Paragraph headings in this Agreement are for convenience of reference only and shall in no way define, limit or prescribe the Amended and Restated Water Delivery Agreement September 25, 2013 22 scope or intent of any provision of this Agreement. 26. Severability. If any provision of this Agreement, or the application of such provision to any person, entity or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances other than those in which it was held invalid, shall not be affected. 27. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as of November 1, 2013. IN WITNESS WHEREOF the Parties have each executed this Agreement as of the date and year first above written. THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation ATTEST: By: Karen Weitkunat, Mayor ___________________________ City Clerk APPROVED AS TO FORM: ____________________________ Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, An Enterprise of the City ATTEST: By: Karen Weitkunat, President ___________________________ City Clerk Amended and Restated Water Delivery Agreement September 25, 2013 23 FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: _______________, President ___________________________ _______________, Secretary FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: ___________________, President ___________________________ ________________, Secretary By its signature below, the Soldier Canyon Filter Plant agrees that it is no longer a party to this Agreement and has no further rights or responsibilities hereunder. SOLDIER CANYON FILTER PLANT, A Governmental Entity Created by Intergovernmental Agreement ATTEST: By: _____________________, President ___________________________ ___________________, Secretary - 1 - ORDINANCE NO. 136, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICES WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the City and the District have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the City Council has on this date considered and adopted Ordinance No. __, 2013, approving and authorizing the Mayor to sign an Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the City and the District have negotiated the terms and conditions set forth in the Intergovernmental Agreement for Treated Water Service, attached hereto as Exhibit “A” and incorporated herein by this reference (the “Agreement”); and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to 115 of 433 - 2 - cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Article XII, Section 6 of the Charter provides that the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the utilities in good repair and working order, and for other enumerated purposes; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby approves the Agreement, including the rates, fees and charges set forth in the Agreement, and finds and determines the Agreement to be for the benefit of the City Water Utility and its ratepayers. Section 2. That the Council hereby authorizes the Mayor to execute the Agreement on behalf of the City, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Ordinance. 116 of 433 - 3 - Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 117 of 433 IGA FOR WATER TREATMENT September 30, 2013 1 INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICE CAPACITY BETWEEN THE CITY OF FORT COLLINS, COLORADO AND THE FORT COLLINS-LOVELAND WATER DISTRICT This AGREEMENT is entered into made this _____ day of ____________, 2013, by and between the CITY OF FORT COLLINS, Colorado, a home rule municipality (the "City"), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE (the "City Enterprise") (together referred to hereinafter as "Fort Collins") the FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), the FORT COLLINS- LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”). Collectively Fort Collins and the District may be referred to herein as “Parties” or each a “Party.” WHEREAS, pursuant to Article XIV, Section 18 of the Constitution of the State of Colorado, Article II, Section 16 of the Charter of the City of Fort Collins, and Section 29-1-203(1) and Section 32-1-1001 of the Colorado Revised Statutes, the Parties may cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of the cooperating or contracting units of government; and WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and IGA FOR WATER TREATMENT September 25, 2013 2 WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (the “Soldier Canyon IGA”) with the East Larimer County Water District (“ELCO”) and the North Weld County Water District (“NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHER EAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (the “Soldier Canyon Treatment Plant”); and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the parties to the said Intergovernmental Agreement for Delivery of Potable Water have, as of November 1, 2013, adopted revisions to the same, entitled Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the parties have negotiated the terms and conditions set forth in this Intergovernmental Agreement for Treated Water Service. NOW, THEREFORE, in consideration of the promises, the mutual covenants and agreements herein contained, the service to be rendered by Fort Collins and the payments to be made by the District as well as transfer of certain raw water owned by the District to be made by the District to Fort Collins as herein set forth, and the satisfactory performance of all conditions and requirements set forth herein, it is hereby agreed by and between the parties as follows: IGA FOR WATER TREATMENT September 30, 2013 3 1. City Code. All terms and conditions of water treatment service between the District and Fort Collins will be as described in this Agreement and the City of Fort Collins City Code. 2. Term. This Agreement shall be effective as of January 1, 2014 (the “Effective Date”) the date of signing by all parties, and shall continue in effect until terminated in accordance with paragraph 10, hereinafter, by court order or by operation of law. 3. Services Provided. Fort Collins agrees to sell and provide water treatment service to delivery points from the City Water System to the District Transmission Facilities that are described below in paragraph 4. The Parties agree that the District will be solely responsible for any expenses or costs associated with the connections. The provision of such water treatment service by Fort Collins to the District is expressly contingent upon payment by the District for service, transfer of raw water as more fully described in paragraph 8 below, and the District’s compliance with regulatory requirements applicable to the delivery of potable water. Further, any obligation by Fort Collins to provide water treatment service to the District is subject to reductions, restrictions, limitations and surcharges, if any, that the City may establish in the future to manage its water supply or water system capacity that may be imposed on any other customer of the City. 4. Points of Delivery. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points, as shown on Exhibit A, attached hereto and incorporated herein by this reference: A. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); B. The connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). C. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); D. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way/Kechter Road and Timberline Road (the “Timberline Meter Station”); IGA FOR WATER TREATMENT September 25, 2013 4 northwest corner of the intersection of Ziegler Road and Rock Creek Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”); F. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southeast corner of the intersection of Ziegler Road and Harmony Road and metered approximately 900 feet to the east (the “Harmony Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. G. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the Rock Creek Drive entrance to Fossil Ridge High School east of the intersection of Ziegler Road and Rock Creek Drive (the Fossil Ridge Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. 5. Integration with Deliveries Under Existing Agreements. The respective obligations of the District and the City hereunder are independent of deliveries or sales of potable water under existing agreements between Fort Collins and the District. As of the effective date of this Agreement, Fort Collins provides potable water to the District at the delivery points described above in subparagraphs A through E pursuant to the Water Sales Agreement and the Water Delivery Agreement (the “Existing Agreements”). All water delivered to the Harmony Meter Station and the Fossil Ridge Meter Station is deemed to have been delivered under this Water Treatment Agreement. It is the parties’ intent that deliveries of water under the Existing Agreements shall be determined, invoiced and subject to the terms and limitations set forth in those agreements, and that the water treatment services to be provided to the District hereunder shall be supplemental to the deliveries and sales provided thereunder. 6. Maximum service limit. Fort Collins will treat water for the District at a maximum rate of 1.825 billion (1,825,000,000) gallons during any Water Year and not to exceed 5 million (5,000,000) gallons per day. For the purposes of this Agreement, a Water Year is intended to mean the period starting November 1 of a given calendar year and extending through October 31 of the following calendar year. This maximum service limit has been determined based upon the District’s agreement to pay Water Plant Investment Fees as described in paragraph 7 below. The maximum amount of water treatment service identified herein will not increase unless and until, upon the written request of the District, Fort Collins at its sole discretion elects to increase the amount of annual water treatment service, additional plant investment fees and any other applicable fees or charges are paid, and the Parties execute a written addendum to this Agreement. 7. Payment for Service. In exchange for the water treatment services provided to the District as described in paragraph 3, the District shall pay to Fort Collins each of the fees and charges set forth in this Agreement and shall transfer raw water to Fort Collins as more fully described in paragraph 8 below. The fees and charges for water treatment service set forth herein shall be as established by Fort Collins from time IGA FOR WATER TREATMENT September 30, 2013 5 Fort Collins as more fully described in paragraph 8 below. The fees and charges for water treatment service set forth herein shall be as established by Fort Collins from time to time as more fully described below. The initial rates and charges are outlined below. Fort Collins approves its rate modifications in October/November of each year with the effective date the immediately following January 1. Fort Collins shall include the District in all rate adjustment communications provided to other customers and Key Accounts of the Utility. A. The approach used to determine the level for the District’s permanent allocation of water treatment service is based on Water Plant Investment Fees paid by the District. The District shall pay Water Plant Investment Fees at a rate consistent with the fee amount determined to be appropriate by Fort Collins in its annual or semi-annual review of such fees conducted most recent to the time at issue. The Water Plant Investment Fee for the District at the time of execution of this Agreement is $2.52 per gallon of peak day use. Fort Collins’ obligation to provide water treatment services pursuant to this paragraph 7A is contingent upon payment of Water Plant Investment Fees. Payment of such fees will not allow the District to increase the maximum service limit without amendment of this Agreement as described in paragraph 6. B. The Water Plant Investment Fee shall be Twelve million Six hundred thousand dollars ($12,600,000). The District will pay the City Two million Five hundred Twenty thousand dollars ($2,520,000) prior to any deliveries under this Agreement, but in no event later than January 15, 2014upon approval of this agreement. The remainder of the Water Plant Investment Fee, Ten million Eight thousand dollars ($10,080,000) shall be amortized over a period of twenty (20) years at an annual percentage rate of five percent (5%). Payments shall be made on a monthly basis in the amount of Sixty- six thousand Five hundred and twenty-four dollars ($66,524). C. The negotiated rate for all deliveries during calendar year 2013, after the effective date of this Agreement, the District will pay Fort Collins a for water treatment and transmission service israte of $2.1093 per one thousand gallons. Fort Collins may adjust the water treatment service rate for years after 2013 in accordance with the results of any cost of service study Fort Collins may conduct or in accord with overall rate changes made by the City Council of Fort Collins to the entire customer base of the City. The parties acknowledge and agree that the water treatment and transmission charges established pursuant to this subparagraph incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. D. Fort Collins may apply any other direct and indirect charges for incidental services requested by the District and normally applied for water treatment service as provided in Section 26-712 of the City Code. IGA FOR WATER TREATMENT September 25, 2013 6 1. The quantity delivered through the “Harmony Meter Station” described in Section 4.F. above; 2. The quantity delivered through the “Fossil Ridge Meter Station” described in Section 4.G. above; and 3. The quantity transferred daily under the Water Delivery Agreement in excess of the limits set forth in the Water Delivery Agreement. 8. Additional Requirements for Water Service. As a condition of receiving the water treatment service provided hereunder, the District agrees to transfer water from the Colorado Big-Thompson Project (“CBT”) as follows: A. The District will assign to Fort Collins CBT raw water in an amount equal to the volume of water treated by Fort Collins for the District under this Agreement (the “Raw Water Amount”). The transfer of the Raw Water Amount for each month shall take place no later than ten (10) days after the end of such previous calendar month. B. In the event that Fort Collins or the District have reason to expect a significant change in the District’s level of treated water demand or other extraordinary occurrences affecting water supplies or water demands during the Water Year, the parties will cooperate in an effort to make additional transfers and accomplish any operational adjustments that may need to be made, at no cost to the City. C. All transfers of CBT water shall be made in accordance with rules established by the Northern Colorado Water Conservancy District (“NCWCD”). D. The District agrees that all treated water provided to the District hereunder shall be used in accordance with the applicable rules, policies and other requirements of the NCWCD. 9. Metering/Infrastructure. Metering, recording and telemetry devices shall be installed and maintained at the District’s expense at the points of delivery specified in this Agreement in a manner satisfactory to Fort Collins, so as to accurately account for the treated water provided to the District under this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately IGA FOR WATER TREATMENT September 30, 2013 7 B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close or require the District to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Existing Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds 2% of the metered volumes, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection system. In such event the District will no longer be obligated to operate and maintain its own meters in such locations for the purposes of this Agreement. 10. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by the District upon the provision of written notice of termination to Fort Collins no less than ten (10) five (5) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. In no event shall the District be entitled to a refund of fees or charges paid to Fort Collins hereunder. Capacity of Treated Water purchased by the District at the time of termination shall be adjusted to reflect the sum of amortized payment received by the City. 11. District Information. The District agree to cooperate with Fort Collins to provide such information as Fort Collins may require in order to reconcile the records of Fort Collins and the District, and request information in order to confirm the nature, extent and circumstances of water treatment service utilized or accessed by the District or connected to the Fort Collins water system. The parties acknowledge that all or portions of the information provided hereunder may constitute confidential information pursuant to the Colorado Open Records Act or other applicable law, and agree that Fort Collins shall, as a condition of receipt of such information, protect the same from public disclosure to the extent required by law. IGA FOR WATER TREATMENT September 25, 2013 8 Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health and Environment (hereinafter referred to as “the CDPHE”) (hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the City up to the point of delivery and upon the District after the point of delivery. In meeting the Water Quality Standards, the City and the District agree to comply with all monitoring, testing, reporting and consumer notification requirements established by the EPA and the CDPHE for potable water for their respective systems. In the event the City or the District discovers that any water delivered, being delivered or to be delivered under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. 13. Force Majeure. Fort Collins shall provide the services as set forth herein, subject to the general requirements applicable to the Fort Collins water system by law, including the Code of the City of Fort Collins, as the same may from time to time be modified or amended. Fort Collins shall not be liable for any failure, default or delay in any service provided for under this Agreement caused by strikes, acts of God, unavoidable accidents or contingencies of any nature whatsoever beyond its control. 14. Default/Remedies. If either party fails to comply with the provisions of this Agreement, the other party, after providing written notification to the noncomplying party and upon the failure of the noncomplying party to achieve compliance within ninety (90) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, actual damages, specific performance and injunctive relief, or forfeiture of investment and all rights by the District to further service by Fort Collins, as applicable, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party(ies) shall be entitled to payment by the defaulting party of its actual attorneys’ fees and costs incurred. Nothing in this paragraph 14 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. 15. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of laws principles, will be applied in the interpretation, execution and enforcement of this Agreement. Any provision of this Agreement, whether or not incorporated herein by reference, which provides for arbitration by an extra-judicial body or person or which is otherwise in conflict with said laws, rules and regulations will be considered null and void. In addition, the parties IGA FOR WATER TREATMENT September 25, 2013 9 hereto recognize that there are legal constraints imposed upon them by the constitution, statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by their respective governing statutes, charters, ordinances, rules and regulations, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall either of the parties exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 16. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: To the District District Manager or the District Fort Collins-Loveland Water District Enterprise: 5150 Snead Dr. Fort Collins, CO 80525 To the City: Utilities Executive Director or the City City of Fort Collins Enterprise P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 17. Complete Agreement. This Agreement, including all exhibits, supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. 18. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 19. No Improper Acts. The signatories aver that to their knowledge, no officer or employee of their respective entities has taken any action in connection with IGA FOR WATER TREATMENT September 25, 2013 10 the negotiation or approval of this Agreement that constitutes a violation of Colorado law, including but not limited to the abuse of fiduciary duty to the people of the State of Colorado, failure to properly disclose any conflict of interest in the service or property described herein, or failure to comply with the requirements of Section 24-18-109 and Section 32-1-902 of the Colorado Revised Statutes, as they may from time to time be amended or renumbered. 20. No Waiver. The waiver or delay of enforcement of one or more terms of this Agreement shall not constitute a waiver of the remaining terms. The waiver or delay in enforcement regarding any breach of this Agreement shall not constitute a waiver of any terms of the Agreement. 21. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 22. Modification of Agreement. This Agreement may be modified, amended, changed or terminated, except as otherwise provided herein, in whole or in part, only by an agreement in writing duly authorized and executed by both Parties. No consent of any third party shall be required for the negotiation and execution of any such agreement. 23. Assignment. No transfer or assignment of this Agreement or of any rights hereunder shall be made by either Party without the prior written consent of the other, which consent shall not be unreasonably withheld. 24. Severability. In the event any court of competent jurisdiction shall hold any provision of this Agreement invalid or unenforceable, such holding shall not invalidate or render unenforceable any other provision hereof. 25. Venue For Enforcement Actions. In the event of a dispute between the parties which results in litigation, the exclusive venue for such action shall be the District Court in and for the County of Larimer, State of Colorado. 26. Instruments of Further Assurance. The Parties each covenant that they will do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged, and delivered, such acts, instruments, and transfers as may be reasonably required for the performance of their obligations hereunder. 27. Binding Agreement. The terms, provisions and covenants of this agreement shall be binding upon the parties hereto, their successors and assigns. IGA FOR WATER TREATMENT September 25, 2013 11 IN WITNESS WHEREOF, the said City has caused this agreement to be executed by its Mayor, attested to by its City Clerk with the corporate seal of said City hereunto affixed, the said District have caused this agreement to be executed by its president, and the City Enterprise and the District Enterprise have each cause this agreement to be executed by its respective president, as of the day and year first above written, in duplicate. THE CITY OF FORT COLLINS A Municipal Corporation By: __________________________ Mayor ATTEST: APPROVED AS TO FORM: _________________________ ________________________ City Clerk Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE An Enterprise of the City By: __________________________ Enterprise President ATTEST: _____________________ Enterprise Secretary FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: , President ___________________________ , Secretary IGA FOR WATER TREATMENT September 25, 2013 12 FORT COLLINS - LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: , President ___________________________ , Secretary DATE: October 1, 2013 STAFF: Josh Weinberg AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT First Reading of Ordinance No. 137, 2013, Designating 1501 Peterson Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. EXECUTIVE SUMMARY The owners of the property, Robert and Sally Linton, are initiating this request for Fort Collins Landmark designation of the Crane Property at 1501 Peterson Street. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The property at 1501 Peterson Street qualifies for Fort Collins Landmark designation under Designation Standard 3, as an excellent example of Prairie style architecture with a high level of historic integrity. Originally developed and championed by Frank Lloyd Wright, the Prairie style was used almost exclusively for residential buildings. Adding to the local significance of 1501 Peterson is the fact that it is one of only a very few Prairie-style houses built in Fort Collins during this period; the estimated construction date of the house is 1918. FINANCIAL / ECONOMIC IMPACTS Recognition of 1501 Peterson Street as a Fort Collins Landmark enables its owners to qualify for federal, state and local financial incentive programs available only to designated properties. Additionally, based upon research conducted by Clarion Associates, the property would see an increase in value following designation. Clarion Associates attributed this increase to the fact that future owners also qualify for the financial incentives; the perception that designated properties are better maintained; the appeal of owning a recognized historic landmark; and the assurance of predictability that design review offers. BOARD / COMMISSION RECOMMENDATION At a public hearing held on August 14, 2013, the Landmark Preservation Commission voted to recommend designation of this property under Designation Standard (3), for its architectural significance to Fort Collins. ATTACHMENTS 1. Location Map 2. Landmark Designation Application 3. Staff report 4. Photos 5. Landmark Preservation Commission Resolution 130 of 433 Colorado State University Colorado State University Colorado State University «¬287 E Lake St Peterson St Edwards St Mathews St Buckeye St Peterson Pl W P i t k i n St Mathews St Mathews St Peterson St Buckeye St E Pitkin St W Lake St Remington St S College Ave E Prospect Rd W Prospect Rd © 1501 Peterson Street Fort Collins Landmark Designation These map products and all underlying data are developed for use by the City of Fort Collins for its internal purposes only, and were not designed or intended for general use by members of the public. The City makes no representation or warranty as to its accuracy, timeliness, or completeness, and in particular, its accuracy in labeling or displaying dimensions, contours, property boundaries, or placement of location of any map features thereon. THE CITY OF FORT COLLINS MAKES NO WARRANTY OF MERCHANTABILITY OR WARRANTY FOR FITNESS OF USE FOR PARTICULAR PURPOSE, EXPRESSED OR IMPLIED, WITH RESPECT TO THESE MAP PRODUCTS OR THE UNDERLYING DATA. Any users of these map products, map applications, or data, accepts same AS IS, WITH ALL FAULTS, and assumes all responsibility of the use thereof, and further covenants and agrees to hold the City harmless from and against all damage, loss, or liability arising from any use of this map product, in consideration of the City's having made this information available. Independent verification of all data contained herein should be obtained by any users of these products, or underlying data. The City disclaims, and shall not be held liable for any and all damage, loss, or liability, whether direct, indirect, or consequential, which arises or may arise from these map products or the use thereof by any person or entity. 1 inch = 250 feet Aerial Site Map ATTACHMENT 1 131 of 433 Fort Collins Landmark Designation LOCATION INFORMATION: Address: 1501 Peterson Street, Fort Collins, Colorado 80524 Legal Description: LOT 20, BLOCK 8, L C MOORE 2 nd , CITY OF FORT COLLINS Property Name (historic and/or common): The Crane Property OWNER INFORMATION: Name: Robert J. and Sally J. Linton Email: rjlinton1@gmail.com Phone: 970-420-0451 Address: 1501 Peterson, Fort Collins, CO CLASSIFICATION Category Ownership Status Present Use Existing Designation Building Public Occupied Commercial Nat’l Register Structure Private Unoccupied Educational State Register Site Religious Object Residential District Entertainment Government FORM PREPARED BY: Name and Title: Josh Weinberg, Preservation Planner; Diane Sanders, Intern Address: City of Fort Collins, Planning, Development, and Transportation, P.O. Box 580, Fort Collins, CO 80522 Phone: 970-221-6206 Email: jweinberg@fcgov.com Relationship to Owner: None DATE: August 14, 2013 Planning, Development & Transportation Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 Page 1 ATTACHMENT 2 132 of 433 TYPE OF DESIGNATION and BOUNDARIES Individual Landmark Property Landmark District Explanation of Boundaries: The boundaries of the property being designated as a Fort Collins Landmark correspond to the legal description of the property, above. SIGNIFICANCE Properties that possess exterior integrity are eligible for designation as Fort Collins Landmarks or Fort Collins Landmark Districts if they meet one (1) or more of the following standards for designation: Standard 1: The property is associated with events that have made a significant contribution to the broad patterns of history; Standard 2: The property is associated with the lives of persons significant in history; Standard 3: The property embodies the distinctive characteristics of a type, period, or method of construction, or that represents the work of a master, or possesses high artistic values, or represents a significant and distinguishable entity whose components may lack individual distinction; Standard 4: The property has yielded, or may be likely to yield, information important in prehistory or history. STATEMENT OF SIGNIFICANCE The property at 1501 Peterson Street qualifies for Fort Collins Landmark designation under Designation Standard 3, as an excellent example of Prairie style architecture with a high level of historic integrity. Originally developed and championed by Frank Lloyd Wright, the Prairie style was used almost exclusively for residential buildings. Most commonly found in the Midwest, the short-lived style originated in Chicago around 1900 and was in decline by 1920; most Prairie style houses were built between 1905 and 1915. Adding to the local significance of 1501 Peterson is the fact that it is one of only very few Prairie-style houses built in Fort Collins during this period. The estimated construction date of the house is 1918. Emphasis on horizontal lines created by low-pitched hipped roofs; wide, boxed, overhanging eaves; and contrasting wall and trim materials that create a high-waisted appearance mark some of the major character defining features of the style found on this house. Adding to the uniqueness of this house is the use of natural red sandstone instead of the more typical manufactured brick for the exterior cladding. Natural materials were more common to Craftsman style buildings which were popular during the same period. Separated from the red sandstone by a concrete lugsill, the upper portion of the house is clad with stucco, which was a more common material than stone for Prairie-style houses. Other classic Prairie-style features include two-story construction with one-story wings or porches, the porches often having massive, square roof supports, and panels of windows to connect with the exterior landscape. 1501 Peterson has all of these features and fits within the subtype known as the Prairie Box due to the simple, symmetrical square plan of the main mass of the house. As originally built, only the one-story wing projecting from the east façade interrupted the square footprint of the building. Other notable features of the house are the off-center porch housing the main entry, double-hung sash windows with geometric patterns of glass in the upper 133 Page of 2 433 sashes created by wooden muntins, and the use of copings to further accentuate the horizontal lines of the building. 1501 Peterson offers a striking contrast to the vertical emphasis of the many Victorian houses found throughout the eastside Fort Collins neighborhoods. 1 HISTORICAL INFORMATION This unique Prairie style house enjoyed the attentive long-term care of only three owners over a seventy-six year period, an unusual attribute for homes in this area where many were, and continue to be, used as rental properties. One family, the Cranes owned the house from 1934 until 1967. The Cranes sold the house to a Colorado State University (CSU) professor, John Campbell, and his wife Patricia, who lived in the house until at least 1974. Another CSU professor, Joel Bedford, and his wife Judith purchased the property in 1975. Professing to have “loved the house,” they called it home for thirty-five years. While many other properties in the area changed owners and/or tenants on a more frequent basis, this unique, high style Prairie house enjoyed the consistent attention of only a comparatively few families. 2 The property at 1501 Peterson Street is located within the Historic Fort Collins Eastside neighborhood, just adjacent to the southern boundary of the Laurel School Historic District. The earliest stated date for the property is found in a Real Estate Appraisal Card completed in during the late 1960s or early 1970s providing an estimated date of construction of 1918. The 1925 Sanborn Fire Insurance map indicates the presence of a dwelling with a shingle roof at 1501 Peterson. Building permit number 1345, issued on March 13, 1926 lists H. C. Bradley as the owner. The permit calls for the addition of a porch, located at the back of the house off the west elevation, and a detached garage. Since the original building permit has not been located it is not known if Mr. Bradley was the original owner. The earliest record for the address in the Fort Collins City Directories was not until the 1927 edition designating the owners as Lorenzo F. and Viola R. Flower. Two years later, the directory lists William A. Fairchild, manager of the American Theatre, as the owner; the 1931 directory identifies Leslie M. Skerry, a Colorado Agricultural College (later CSU) associate professor of military science and tactics, and his wife Stella as the owners. 3 John Forest Crane and his wife Elizabeth Webster Crane purchased the house in May 1934. Married in 1926, the Cranes owned a successful sheep ranch near Fort Collins. Mr. Crane partnered with Samuel F. Webster to form Webster and Crane, a livestock business. 4 An influential member of the sheep ranching community, Crane was an active member of both the Wyoming Wool Growers Association and the Wyoming Stock Growers Association. He was also a longtime member of the local Elks Lodge. The Cranes made only one significant 1 Gerald Foster, American Houses: A Field Guide to the Architecture of the Home (Boston: Houghton Mifflin, 2004), 342-346; Virginia and Lee McAlester, A Field Guide to American Houses (New York: Alfred A. Knopf, 1984), 439-440. 2 Fort Collins City Directories, 1927-2010; Interview of Judith Bedford by Diane Sanders, June 14, 2013. 3 City of Fort Collins Archives, “1501 Peterson Street,” file and City Directories, 1927-1931; City of Fort Collins, fcgov.com, FCMaps, “Neighborhoods,” http://gisweb.fcgov.com/FCMaps/Viewer.html?ViewerConfig=http://gisweb.fcgov.com/Geocortex/Essentials/REST/sites/FCMaps/viewer s/FCMaps/virtualdirectory/Config/Viewer.xml&layerTheme=NEIGHBORHOODS; City of Fort Collins Public Records, fcgov.com, GIS maps, “Miscellaneous Boundary Maps: Annexation Trends,” http://citydocs.fcgov.com/?dt=Miscellaneous+Boundary+Maps&dn=GIS+MAPS&vid=192&cmd=showdt; City of Fort Collins Public Records, fcgov.com, GIS maps, “Miscellaneous Boundary Maps: Annexation Trends,” http://citydocs.fcgov.com/?dt=Miscellaneous+Boundary+Maps&dn=GIS+MAPS&vid=192&cmd=showdt. 4 Arlene Ahlbrandt and Kathryn Stieben, eds., The History of Larimer County, Colorado: 1860s-1987, Vol. II (Dallas: Curtis Media Corp., 1987), 466, 690. A full genealogical study has not been done on the Webster family but Samuel Webster was one of the first students to attend the Harmony School which opened in 1878 and became a notable sheep rancher. The timeline indicates that he may have been Elizabeth’s father and her marriage to Crane probably led to Mr. Crane’s involvement in sheep ranching and the business partnership with Samuel Webster. 134 Page of 3 433 alteration to the exterior of the building. In 1937 they added a sleeping porch above the existing porch at the back of the house. Screened-in sleeping porches were a popular residential feature prior to the development of air cooling appliances and are often included in Prairie houses. The Crane family owned the house for over thirty-two years, selling it in November, 1967 to CSU Professor John A. Campbell and his wife, Patricia Campbell. 5 Compared to the Cranes, the Campbells owned the house for only a short period. They sold it just eight years later to another CSU professor, Joel Bedford, along with his wife Judith. Both Dr. and Mrs. Bedford were important to the university and Fort Collins communities. Professor Bedford’s research in radiation genetics, cytogenetics, and of the effects of radiation exposure have made valuable contributions to the understanding of the effects of radiation at the cellular level. Mrs. Bedford was a partner and then sole owner of the Children’s Mercantile, an Old Town Fort Collins area retail store. The Bedfords were responsible for the only other major alteration to the exterior of the house. In 2001 they demolished the original garage and replaced it with a new two-car garage and pre-fabricated greenhouse, both of which were attached to the rear porch of the house by a new entry/hallway. Like the Cranes, the Bedfords resided in the house for an extended period; they sold the house thirty-five years later, in 2010, to Brenda Uihlein. Less than two years later Ms. Uihlein sold the property to the current owners, Robert and Sally Linton. 6 ARCHITECTURAL INFORMATION Construction Date: c. 1918 Architect/Builder: Unknown Building Materials: Stone and stucco on a concrete foundation; composite shingle roof Architectural Style: Prairie Description: The house at 1501 Peterson Street is an excellent example of Prairie-style residential architecture. It is also one of only a few houses of this style built in Fort Collins. As originally built, the main mass of this two-story dwelling has a square plan supported by a concrete foundation. Typical of Prairie style houses, the red sandstone cladding of the exterior walls extends upward into the second story so that the stone covers the lower three quarters of the walls; stucco encloses only the top half of the second story. Separating the stone from the stucco is a continuous concrete lugsill that encircles the building to emphasize the horizontal lines of the house. Green tinted mortar fills the joints between the irregular pieces of sandstone. A large, rectangular red sandstone chimney extends above the north side of the hip roof; a lesser chimney is on the south side of the building. The roof has very broad, overhanging boxed eaves that shade the house. A Prairie style trademark one-story wing at the front of the dwelling (east elevation) provides additional living space inside the house and a covered porch at the south end of the elevation. It too has a hip roof. The front-facing east elevation is approached by a concrete walkway that terminates at a series of concrete steps to reach the elevated concrete porch. The entry door is a simple oak 5 City of Fort Collins Archives, “Obituaries” file, J. Forest Crane, Fort Collins Coloradoan, July 8, 1975; City of Fort Collins Historic Preservation Office, 1501 Peterson St. file, copy “Remember When?,” Fort Collins Coloradoan, June 3, 1964; Fort Collins History Connection, “1501 Peterson Building Permits,” http://history.poudrelibraries.org/cdm4/item_viewer.php?CISOROOT=/bp&CISOPTR=5765&CISOBOX=1&REC=1; McAlester, Field Guide, 463. 6 City Directories, 1967-2010; City of Fort Collins Historic Preservation Office, 1501 Peterson St. file, summary description of building permit #B0106512; Joel S. Bedford, College of Veterinary Medicine & Biomedical Sciences, Department of Molecular & Radiological Health Sciences, Colorado State University, http://www.cvmbs.colostate.edu/erhs/faculty/bedford/j_bedford.htm, accessed June 10, 2013. 135 Page of 4 433 slab with three small lights set on a descending diagonal. The porch has a single large sandstone covered pier at the southeast corner to support the roof and is surrounded by a sandstone clad railing. The railing is capped by a contrasting concrete coping. Extending north from the porch and east from the main mass is an enclosed wing. It has a series of four 9/1 light double-hung sashes centered on the wing’s east elevation. Wood muntins in the upper sashes create a classic Prairie-style geometric pattern around the perimeter of the center pane. This is the primary window type found throughout the house. The tops of the windows are installed just below the ceiling line; the windows have concrete surrounds and sills. A band of concrete, the same height as the lugsill, surrounds the house just below the eaves, filling the narrow space between the windows and the eaves. The fenestration of the south and north elevations of the wing are similar to the primary (east) elevation, differentiated by each containing two sashes instead of four. Two similar 9/1 light sashes are symmetrically positioned toward the north and south corners of the second story of the façade above the lugsill on the stucco portion of the elevation. The lugsill serves as the sill for these windows and the stucco cladding creates the windows’ surrounds. 7 The concrete walkway that approaches the house from Peterson Street narrows as it turns the corner and extends the length of the south elevation. Two horizontal 3-light single sash windows are located symmetrically near the east and west ends of the elevation at ground level. Near the center of the elevation is a recessed wood panel door with a glass insert similar to the upper sashes of the primary windows in design but the muntins are lead instead of wood and the beveled glass is etched with a leaf pattern. Also, the center light is divided into multiple lights that create a decorative diamond pattern in the middle. The second story has three 9/1 sashes. West of the main mass of the house is the kitchen nook extension and greenhouse, which were added during a remodel in 2001. Recessed slightly from the main southern elevation, the wing extends to the west. Built in two stages, it was originally a one- story porch added to the house in 1926. The base of that section of the wall is clad in red sandstone. The rest of the wing’s elevation is clad with stucco and has four individual modern windows that are the same 9/1 sash style as found elsewhere on the house. Beyond the enclosed wing is a pre-fabricated greenhouse with a three foot high concrete wall supporting its aluminum and glass framework. Above the original porch area is a room encircled by ribbon windows installed just below the eave, a classic feature of the Prairie style. Here, 1/1 glass and screen units have been installed outside of the original 6-light single sashes. This space was the sleeping porch that was added to the house in 1937. The eaves above this section of the house extend only one-quarter the distance from the house as the eaves on the rest of the building. 8 The greenhouse, which is not visible from the street, occupies the southern section of the west elevation and has a door entering the greenhouse at its north end. It has a shed roof that slopes down north to south from the garage. Continuing to the north is the west elevation of the garage, which is clad in stucco. It has two symmetrically installed single light windows and is covered by a shallow hip roof similar to that of the original house. Visible beyond the garage is the former sleeping porch. It too has a hip roof and a series of six 1/1 sashes protecting the original windows fill its entire width. Unlike all of the other eaves, here, instead of being enclosed and clad with stucco, they have exposed rafter ends beneath wood planks. The north elevation of the garage, clad with stucco, has two single-car overhead doors and a series of four fixed glass windows. A flagstone patio area fills the alcove space between the garage and the main section of the house. Three wood steps and a porch provide access to a door that enters into the extended kitchen wing. Two fixed 9-light windows matching the 7 McAlester, Field Guide, 442. 8 Fort Collins History Connection, “1501 Peterson Building Permits,” http://history.poudrelibraries.org/cdm4/item_viewer.php?CISOROOT=/bp&CISOPTR=5765&CISOBOX=1&REC=1; Foster, American Houses, 342. Page 5 136 of 433 upper sashes of the primary windows are to the east of the door. The east side of the alcove (the west elevation of the main mass of the house) has two windows at basement level. One is identical to the ones on the south elevation; the other is a single pane of glass and may have been a coal chute. Two shuttered windows are on the first floor level. The north elevation of the main house has a series of three 9/1 primary windows toward the west end and one on each side of the chimney. The upper level has three individual 9/1 sashes, two on either side of the chimney and one toward the west end of the elevation. Continuing east, the wing has the same two 9/1 sash unit as is found on the south elevation of the wing. The new rear entry and attached garage mimic the architectural lines of the original house, maintaining the continuity and integrity of the Prairie-style building in both style and materials. Even the alterations that changed the house from a Prairie Box to its current irregular form do not detract from its integrity as many Prairie houses exhibited long, linear shapes. Nor does the modern greenhouse diminish the house’s stylistic integrity as it is not visible from the street. The 1926 and 1937 porch additions are historical in their own right and create a two- story wing that is unique to this Prairie style house. 9 REFERENCE LIST or SOURCES of INFORMATION (attach a separate sheet if needed) Ahlbrandt, Arlene and Kathryn Stieben, eds. The History of Larimer County, Colorado: 1860s- 1987, Vol. II. Dallas: Curtis Media Corp., 1987. Bedford, Judith. Telephone interview by Diane Sanders, June 14, 2013. City of Fort Collins Archives, “1501 Peterson Street” file. City of Fort Collins Historic Preservation Office, “1501 Peterson Street” file. Faculty Page of Joel S. Bedford, College of Veterinary Medicine & Biomedical Sciences, Department of Molecular & Radiological Health Sciences, Colorado State University, http://www.cvmbs.colostate.edu/erhs/faculty/bedford/j_bedford.htm. Fort Collins City Directories, 1927-2010. Fort Collins Public Library, Local History Archive (online), including Building Records and Permits. http://history.poudrelibraries.org/cdm4/item_viewer.php?CISOROOT=/bp&CISOPTR=1530&CISOB OX=1&REC=3, http://history.poudrelibraries.org/cdm4/item_viewer.php?CISOROOT=/bp&CISOPTR=5765& CISOBOX=1&REC=1 Foster, Gerald. American Houses: A Field Guide to the Architecture of the Home. Boston: Houghton Mifflin, 2004. Larimer County Tax Assessor Records, 1501 Peterson Street, http://www.larimer.org/assessor/propertyexplorer/propertyexplorer.html. McAlester, Virginia and Lee. A Field Guide to American Houses. New York: Knopf, 1984. 9 Ibid., 342. 137 Page of 6 433 Historic Photograph of 1501 Peterson Street from 1977 138 Page of 7 433 139 of 433 LANDMARK PRESERVATION COMMISSION August 14, 2013 STAFF REPORT REQUEST: Fort Collins Landmark Designation of the Crane Property at 1501 Peterson Street, Fort Collins, Colorado STAFF CONTACT: Josh Weinberg, Historic Preservation Planner APPLICANT: Robert and Sally Linton, Property Owners BACKGROUND: Staff is pleased to present for your consideration the Crane Property located at 1501 Peterson Street. The property has significance to Fort Collins under Landmark Preservation Standard (3). The property at 1501 Peterson Street qualifies for Fort Collins Landmark designation under Designation Standard 3, as an excellent example of Prairie style architecture with a high level of historic integrity. Originally developed and championed by Frank Lloyd Wright, the Prairie style was used almost exclusively for residential buildings. Most commonly found in the Midwest, the short-lived style originated in Chicago around 1900 and was in decline by 1920; most Prairie style houses were built between 1905 and 1915. Adding to the local significance of 1501 Peterson is the fact that it is one of only a very few Prairie-style houses built in Fort Collins during this period; the estimated construction date of the house is 1918. Emphasis on horizontal lines created by low-pitched hipped roofs; wide, boxed, overhanging eaves; and contrasting wall and trim materials that create a high-waisted appearance mark some of the major character defining features of the style found on this house. Adding to the uniqueness of this house is the use of natural red sandstone instead of the more typical manufactured brick for the exterior cladding. Natural materials were more common to Craftsman style buildings which were popular during the same period. Separated from the red sandstone by a concrete lugsill, the upper portion of the house is clad with stucco, which was a more common material than stone for Prairie-style houses. Other classic Prairie-style features include two-story construction with one-story wings or porches, the porches often having massive, square roof supports, and panels of windows to connect with the exterior landscape. 1501 Peterson has all of these features and fits within the subtype known as the Prairie Box due to the simple, symmetrical square plan of the main mass of the house. As originally built, only the one-story wing projecting from the east façade interrupted the square footprint of the building. Other notable features of the house are the off-center porch housing the main entry, double- hung sash windows with geometric patterns of glass in the upper sashes created by wooden muntins, and the use of copings to further accentuate the horizontal lines of the building. 1501 Peterson offers a striking contrast to the vertical emphasis of the many Victorian houses found throughout the eastside Fort Collins neighborhoods. Staff Analysis: Staff finds that the Crane Property qualifies for Landmark designation under Fort Collins Landmark Designation Standard (3). If the Landmark Preservation Commission determines that the property is eligible under this standard, then the Commission may pass a resolution recommending City Council pass an ordinance designating the Crane Property as a Fort Collins Landmark according to City Code Chapter 14 under Designation Standard (3). Planning, Development & Transportation Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 ATTACHMENT 3 140 of 433 1501 Peterson Street, Fort Collins Landmark Designation East elevation; facing west from Peterson Street. Northeastern elevation, from corner of Peterson and Lake Streets. ATTACHMENT 4 141 of 433 North elevation looking south from Lake Street. South elevation from the southwest. Greenhouse is in the foreground; enclosed sleeping porch with ribbon windows projects from the second story. 142 of 433 West elevation of garage and greenhouse with sleeping porch beyond. Looking southeast from Lake Street at northwest elevation. 143 of 433 North elevation of the garage with the sleeping porch above the new entry alcove. Principle 9/1 double-hung sash with wood surround and concrete sill. 144 of 433 Entry alcove/patio area on the north side of the house. 145 of 433 ATTACHMENT 5 146 of 433 147 of 433 ORDINANCE NO. 137, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS DESIGNATING THE CRANE PROPERTY, 1501 PETERSON STREET, FORT COLLINS, COLORADO, AS A FORT COLLINS LANDMARK PURSUANT TO CHAPTER 14 OF THE CODE OF THE CITY OF FORT COLLINS WHEREAS, pursuant to Section 14-2 of the City Code, the City Council has established a public policy encouraging the protection, enhancement and perpetuation of landmarks within the City; and WHEREAS, by Resolution dated August 14, 2013, the Landmark Preservation Commission (the "Commission") has determined that the Crane Property has significance to Fort Collins under Landmark Designation Standard (3) for its architectural significance to Fort Collins; and WHEREAS, the Commission has further determined that said property meets the criteria of a landmark as set forth in Section 14-5 of the City Code and is eligible for designation as a Landmark, and has recommended to the City Council that said property be designated by the City Council as a landmark; and WHEREAS, the owners of the property, Robert and Sally Linton, have consented to such landmark designation; and WHEREAS, such landmark designation will preserve the property's significance to the community; and WHEREAS, the City Council has reviewed the recommendation of the Commission and desires to approve such recommendation and designate said property as a landmark. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the property known as the Crane Property, and the adjacent lands upon which the historical resources are located in the City of Fort Collins, Larimer County, Colorado, described as follows, to wit: LOT 20, BLOCK 8, L C MOORE 2nd, City of Fort Collins, Larimer County, State of Colorado. is hereby designated as a Fort Collins Landmark according to City Code Chapter 14. Section 2. That the criteria in Section 14-48 of the City Code will serve as the standards by which alterations, additions and other changes to the buildings and structures located upon the above described property will be reviewed for compliance with Chapter 14, Article III, of City Code of Fort Collins. 148 of 433 Introduced, considered favorably on first reading, and ordered published this 1st day of October, A.D. 2013, and to be presented for final passage on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 15th day of October, A.D. 2013. __________________________________ Mayor ATTEST: _______________________________ City Clerk 149 of 433 DATE: October 1, 2013 STAFF: Wanda Nelson AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Resolution 2013-082 Making Appointments to the Youth Advisory Board. EXECUTIVE SUMMARY This Resolution fills three vacancies on the Youth Advisory Board. BACKGROUND / DISCUSSION Three vacancies currently exist on the Youth Advisory Board due to the expiration of terms for certain members. Mayor Karen Weitkunat and Councilmember Bob Overbeck interviewed new applicants for the vacancies. The interview team is recommending Andrew Smalley, Megan Nibbelink, and Sarah Pruznick to fill the current vacancies with terms to begin immediately and will expire on May 31, 2017. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. 150 of 433 RESOLUTION 2013-082 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING APPOINTMENTS TO THE YOUTH ADVISORY BOARD WHEREAS, vacancies currently exist on the Youth Advisory Board due to the expiration of the terms of certain members; and WHEREAS, the City Council desires to make appointments to fill the vacancies. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following named persons are hereby appointed to fill the current vacancies on the Youth Advisory Board, with a term to begin immediately and to expire as set forth after the name: Youth Advisory Board Expiration of Term Andrew Smalley May 31, 2017 Megan Nibbelink May 31, 2017 Sarah Pruznick May 31, 2017 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October A.D. 2013. Mayor ATTEST: City Clerk 151 of 433 DATE: October 1, 2013 STAFF: Ginny Sawyer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 20 SUBJECT Resolution 2013-083 Expressing the City Council’s Support for the Construction of a New County Office Building in Loveland, Colorado. EXECUTIVE SUMMARY The purpose of this item is to show support for Larimer County’s desire to build a new County office building in Loveland, Colorado and for the ballot measure that would authorize the same. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The City has been made aware of Larimer County’s need and desire to build a new County facility in Loveland. The current building is over 40 years old and is inefficient and ineffective in meeting current needs. It has been determined that remodeling and retrofitting would not be the best use of public funds. The County has accumulated the sales tax and reserve funds needed to move forward. A new facility in Loveland would provide more convenient services for residents in southern Larimer County. A new facility would also be less expensive to operate and can be designed with adequate parking as well as more room to house more services in one location. The County has been planning for this building and has secured enough funding that there would not be any additional cost to the residents of Larimer County. Revenues from a sales tax approved by the voters in 1997 can only be used for remodeling the current courthouse. The proposed ballot measure would amend the purposes for which the 1997 tax was approved so as to allow for the construction of a new courthouse instead. FINANCIAL / ECONOMIC IMPACTS Long-term impacts could include savings to the County by having a more energy efficient building and to residents who may not have to travel as far for services. ENVIRONMENTAL IMPACTS A new building will be more energy efficient. 152 of 433 RESOLUTION 2013-083 OF THE COUNCIL OF THE CITY OF FORT COLLINS EXPRESSING THE CITY COUNCIL’S SUPPORT FOR THE CONSTRUCTION OF A NEW COUNTY OFFICE BUILDING IN LOVELAND, COLORADO WHEREAS, on the 2013 general election ballot, Larimer County citizens will be asked to allow Larimer County to build a new County office building in Loveland, Colorado at no additional expense to the public, rather than renovating the existing courthouse as approved by the voters in 1997; and WHEREAS, the current building in Loveland is crowded, inefficient and ineffective for serving our citizens; and WHEREAS, remodeling a forty-year-old building for today’s needs is expensive, inefficient and is not the best use of our public dollars; and WHEREAS, Larimer County will use existing accumulated sales tax and reserves to fund the new facility; and WHEREAS, Larimer County will not impose any additional taxes to fund the new County office building; and WHEREAS, the new County office building will be less expensive to operate and will include adequate public parking; and WHEREAS, providing core County services in Loveland such as Motor Vehicle, Employment, and Health and Human Services will reduce traffic congestion and provide conveniently located services for the public in southern Larimer County. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby expresses its support for the ballot measure that has been placed before the electors by the Larimer County Board of Commissioners, which measure would authorize the construction of a new County courthouse building in downtown Loveland, Colorado, using revenue previously collected and remaining from the sales and use tax approved at the November 4, 1997 election. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 153 of 433 DATE: October 1, 2013 STAFF: Laurie Kadrich, Steve Roy, Darin Atteberry, Dan Weinheimer AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 21 SUBJECT Items Relating to a Citizen Initiative on the November 5, 2013 Ballot. A. Resolution 2013-084 Urging the Registered Electors of the City to Vote in Favor of a Proposed Moratorium on Hydraulic Fracturing and the Storage of its Waste Products Within the City of Fort Collins or under its Jurisdiction at the November 5 Special Election. (Option #1) B. Resolution 2013-085 Urging the Registered Electors of the City to Vote Against a Proposed Moratorium on Hydraulic Fracturing and the Storage of its Waste Products Within the City of Fort Collins or under its Jurisdiction at the November 5 Special Election. (Option #2) EXECUTIVE SUMMARY The purpose of this item is to encourage voters to vote for or against, depending upon on the option chosen by Council, during the upcoming election. STAFF RECOMMENDATION none. BACKGROUND / DISCUSSION On August 20, 2013 Council adopted Resolution 2013-072 submitting a citizen-initiated question of whether to place a five-year moratorium on the use of hydraulic fracturing to extract oil, gas and other hydrocarbons and on the storage of the waste products of hydraulic fracturing within the City or on lands under the City's jurisdiction on a November 5, 2013 Special Election Ballot. Staff was directed by Council to prepare two Resolutions for Council consideration related to the election. Resolution 2013-084 (Option #1) is a Resolution urging voters to vote in favor of the moratorium whereas Resolution 2013-085 (Option #2) urges voters to vote against the moratorium. Current City Code (Section 12-135 and 136) requires any oil and gas operator in the City limits to obtain an operator agreement approved by the City Council in order to use hydraulic fracturing as part of operations and development. The existing Operator Agreement provides increased protection for operations conducted by Prospect Energy or others in the Fort Collins Field and on described undeveloped lands (UDA). Any other oil and gas operator would be required to negotiate a separate agreement in order to utilize hydraulic fracturing to extract oil or gas. Such agreement would need to be approved by the City Council and may contain similar conditions as the Prospect Energy Agreement and/or other conditions unique to the type of operation being considered. Option #1: Reasons to Consider Adoption During numerous Council meetings related to Oil and Gas regulations, Council heard from citizens that they are concerned about the potential health risks associated with hydraulic fracturing and oil and gas extraction. Residents have specifically voiced concern over the toxicity of chemicals used in the process of hydraulic fracturing, the release of methane gas into the air or its migration to drinking water and questioned whether it is safe to store waste products under any conditions. Since the Colorado Oil and Gas Act requires oil and gas resources to be extracted in a "manner consistent with protection of public health, safety and welfare, including protection of the environment and wildlife resources”, Councilmembers may conclude that supporting the moratorium would be the best way to safeguard city residents and city property. Option #2: Reasons to Consider Adoption Previous Council decisions and subsequent actions include: the imposition of a moratorium on any new oil and gas permits (which moratorium has expired); the imposition of a ban prohibiting hydraulic fracturing and the storage of 154 of 433 October 1, 2013 -2- ITEM 21 liquid wastes and/or flowback unless stringent public protections measures were adopted through a Council-approved Operator Agreement; and, the approval of an operator agreement with Prospect Energy that requires more stringent local controls in addition to requirements of the Colorado Oil and Gas Commission, Colorado Department of Public Health and Environment, and Federal guidelines and includes strict controls on the release of methane gas. Based on these actions, Councilmembers may conclude that the adoption of the ballot measure would be inconsistent with the Operator Agreement and the other local measures (City Code 12-135 and 12-136) enacted to protect the health and safety of city residents and property. Further, Council may conclude that such action could result in costly, protracted litigation against the City and establish legal precedents damaging to the interests of other Colorado municipalities. In addition, Natural Areas Department staff has consistently asked to remain outside any local restrictions related to oil and gas extraction since the Department has participated in a collaborative “Energy by Design” process with the State Land Board and other entities (a process endorsed by Council through a Memorandum of Agreement with the State) designed to protect biological, cultural, scenic, and recreational conservation goals while allowing reasonable access to the mineral estate. Staff believes Energy by Design provides the best strategy for protection for areas of land under the City's jurisdiction outside of the City limits. If the ballot measure were approved the result could undo the “Energy by Design” process; may result in more significant negative impacts to Natural Areas; and, potentially subject Natural Areas lands to litigation. ATTACHMENTS 1. Powerpoint presentation 155 of 433 1 1 Resolution Options to consider for November 5, 2013 Special Election Laurie Kadrich Director, Community Development & Neighborhood Services Dan Weinheimer Policy and Project Manager October 1, 2013 Council Meeting 2 Background Summary: 1. Resolution 2013-072 placed a citizen-initiated question into a Special Election. 2. The question to voters is whether to place a 5- year moratorium on the use of hydraulic fracturing within the city or on city-owned lands. 3. Colorado Statutes allow the City Council to pass a Resolution taking a position on the ballot measure. ATTACHMENT 1 156 of 433 2 3 Resolution Options: 1. Resolution 2013-084 • Option #1: Urge registered voters to vote in favor of the ballot measure or 2. Resolution 2013-085: • Option #2: Urge registered voters to vote against the ballot measure 4 Resolution 2013-084: 1. Reasons to consider adopting: • Citizens expressed concern about the potential health risks associated with hydraulic fracturing measure especially the use of toxic chemicals used in the process, the release of methane gas into the air or its migration to drinking water • Council may consider the moratorium to be the best way to safeguard city residents and city property 157 of 433 3 5 Resolution 2013-085: 1. Reasons to consider adopting: • Council may believe there are already sufficient safeguards in place through adopted local regulations, • Council has secured a stringent agreement with the only local operator, • Council has endorsed the Energy by Design process for city-owned lands, • A five-year moratorium may prompt costly, protracted litigation. 158 of 433 OPTION #1 RESOLUTION 2013-084 OF THE COUNCIL OF THE CITY OF FORT COLLINS URGING THE REGISTERED ELECTORS OF THE CITY TO VOTE IN FAVOR OF A PROPOSED MORATORIUM ON HYDRAULIC FRACTURING AND THE STORAGE OF ITS WASTE PRODUCTS WITHIN THE CITY OF FORT COLLINS OR ON LANDS UNDER ITS JURISDICTION AT THE NOVEMBER 5 SPECIAL ELECTION WHEREAS, under Article X, Section 1 of the City Charter, the registered electors of the City have the power to propose a measure to the City Council, and if the City Council fails to adopt a measure so proposed, then to adopt or reject such ordinance or resolution at the polls; and WHEREAS, an initiative petition to place a five-year moratorium on the use of hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its jurisdiction was submitted to the City (the “Initiated Measure”), and the City Clerk has certified said petition as sufficient for submission of the initiated ordinance to a vote of the people at a special municipal election; and WHEREAS, the City Clerk presented said petition to the City Council as provided in Article X, Section 5(f)(4) of the City Charter; and WHEREAS, by Resolution 2013-072, the City Council submitted the Initiated Measure to the registered electors of the City for their consideration at a special election to be held in conjunction with the November 5, 2031 coordinated election; and WHEREAS, the Colorado Constitution confers on all individuals in the state, including the citizens of Fort Collins, certain inalienable rights, including “the right of enjoying and defending their lives and liberties; of acquiring, possessing and protecting property; and of seeking and obtaining their safety and happiness”; and WHEREAS, the Colorado Oil and Gas Act requires oil and gas resources to be extracted in a “manner consistent with protection of public health, safety, and welfare, including protection of the environment and wildlife resources; and WHEREAS, the well stimulation process known as hydraulic fracturing is used to extract deposits of oil, gas, and other hydrocarbons through the underground injection of large quantities of water, gels, acids or gases, sands or other proppants, and chemical additives, many of which are known to be toxic; and WHEREAS, the people of Fort Collins seek to protect themselves from the harms associated with hydraulic fracturing, including threats to public health and safety, property damage and diminished property values, poor air quality, destruction of landscape, and pollution of drinking and surface water; and 159 of 433 WHEREAS, representatives from the State of Colorado have publicly stated that they will be conducting a health impact assessment to assess the risks posed by hydraulic fracturing and unconventional oil and gas development; and WHEREAS, the people of Fort Collins have determined that the best way to safeguard our inalienable rights provided under the Colorado Constitution, and to ensure the “protection of public health, safety, and welfare, including protection of the environment and wildlife resources” as provided under the Colorado Oil and Gas Act, is to place a five-year moratorium on hydraulic fracturing and the storage and disposal of its waste products within the City in order to fully study the impacts of this process on property values and human health; and WHEREAS, Section 1-45-117(1)(b) of the Colorado Revised Statutes authorizes the City Council to pass a resolution taking a position on the Initiated Ballot. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That, for the reasons stated above, the City Council believes that it is in the best interests of the City that the proposed citizen-initiated ordinance placing a five-year moratorium on the use of hydraulic fracturing to extract oil, gas and other hydrocarbons and on the storage of the waste products of hydraulic fracturing within the City or on lands under the City’s jurisdiction be approved. Section 2. That the City Council strongly urges the registered electors of the City to vote in favor of the Initiated Measure. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 160 of 433 OPTION #2 RESOLUTION 2013-085 OF THE COUNCIL OF THE CITY OF FORT COLLINS URGING THE REGISTERED ELECTORS OF THE CITY TO VOTE AGAINST A PROPOSED MORATORIUM ON HYDRAULIC FRACTURING AND THE STORAGE OF ITS WASTE PRODUCTS WITHIN THE CITY OF FORT COLLINS OR ON LANDS UNDER ITS JURISDICTION AT THE NOVEMBER 5 SPECIAL ELECTION WHEREAS, under Article X, Section 1 of the City Charter, the registered electors of the City have the power to propose a measure to the City Council, and if the City Council fails to adopt a measure so proposed, then to adopt or reject such ordinance or resolution at the polls; and WHEREAS, an initiative petition to place a five-year moratorium on the use of hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its jurisdiction has been submitted to the City (the “Initiated Measure”), and the City Clerk has certified said petition as sufficient for submission of the initiated ordinance to a vote of the people at a special municipal election; and WHEREAS, the City Clerk has presented said petition to the City Council as provided in Article X, Section 5(f)(4) of the City Charter; and WHEREAS, by Resolution 2013-072, the City Council submitted the Initiated Measure to the registered electors of the City for their consideration at a special election to be held in conjunction with the November 5, 2013 coordinated election; and WHEREAS, the geographic areas of the City that are likely to be the subject of oil and gas mining operations are very limited, both because of the geology of the area and because of the state rules and regulations governing such operations; and WHEREAS, nonetheless, on December 18, 2012, several months prior to the submission of the Initiated Measure to the City Clerk’s office, the City Council had adopted Ordinance No. 145, 2012, imposing a temporary moratorium on the acceptance, processing and approval of any land use applications relating to new oil and gas development in the City, which moratorium has expired; and WHEREAS, the purpose of the temporary moratorium was to allow adequate time for City staff to develop and recommend to the City Council any local regulations that might also be necessary and advisable to protect the health, safety and welfare of City residents; and WHEREAS, on March 5, 2013, by the adoption of Ordinance No. 32, 2013, the City Council enacted Section 12-135 of the City Code prohibiting the use of hydraulic fracturing in the City, as well as the storage in open pits of solid or liquid wastes and/or flowback and, through the enactment of City Code Section 12-136, exempted from the prohibition any oil or gas wells or pad sites existing within the City as February 19, 2013, that become the subject of an operator agreement between the operator of the same and the City as long as such agreement includes strict controls on the release of methane gas, and, in the judgment of the City Council, adequately 161 of 433 protects the public health, safety and welfare; and WHEREAS, on May 21, 2013, by Resolution 2013-036, the City Council approved an Oil and Gas Operator Agreement with Prospect Energy, LLC (the “Operator Agreement”), the sole oil and gas operator in the City and, on May 21, 2013, also adopted Ordinance No. 57, 2013, exempting Prospect Energy from the ban imposed under Code Section 12-135; and; and WHEREAS, the Operator Agreement requires that Prospect Energy utilize 48 "best management practice,” many of which exceed the current requirements of the Colorado Oil and Gas Conservation Commission and all of which are designed to protect the citizens of the City; and WHEREAS, in approving the Operator Agreement, the City Council determined that the Agreement adequately protects the public health, safety and welfare, not only because of the stringent controls contained in the Agreement, but also because, based upon past experience, Prospect Energy’s operations are not likely to produce methane gas in significant quantities, and the fracking activities that may be performed by Prospect Energy are not likely to infiltrate fresh water supplies; and WHEREAS, imposing a new five-year moratorium on Prospect Energy would be inconsistent with the fact that the City and Prospect Energy have entered into the Operator Agreement, and could result in costly, protracted litigation against the City; and WHEREAS, in addition, significant concerns have been raised by the City Manager with respect to the impact that a five-year moratorium would have on the City’s natural areas because the City has participated in a collaborative “Energy by Design” process with the State Land Board and other entities which is designed to protect biological, cultural, scenic and recreational conservation goads for the natural areas, while allowing reasonable access to the mineral estate; and WHEREAS, the “Energy by Design” process provides the best strategy for protection of areas of land under the City’s jurisdiction and outside of the City limits, and if the Initiated Measure is approved, such approval could undo the “Energy by Design” process and result in more significant negative impacts to the natural areas; and WHEREAS, for the foregoing reasons, the City Council believes that the adoption of the Initiated Measure under these circumstances is unnecessary, is not in the best interests of the City, and could result in litigation that, if not resolved in the City’s favor, could not only work to the detriment of the City, but could also establish legal precedents that would be damaging to the interests of other Colorado municipalities. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that, for the reasons stated above, the City Council believes that it is in the best interests of the City that the Initiated Measure not be approved by the voters and the City Council strongly urges the registered electors of the City to vote against the Initiated Measure. 162 of 433 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk 163 of 433 DATE: October 1, 2013 STAFF: Megan Bolin Bruce Hendee AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 22 SUBJECT Resolution 2013-086 Adopting the Midtown Plan as an Element of the Comprehensive Plan of the City of Fort Collins. EXECUTIVE SUMMARY The purpose of the Midtown Plan is to create a long-term vision that will compliment current and forthcoming investment to revitalize the corridor. Midtown has been defined as the College Avenue commercial corridor between Prospect Road to the north, and Fairway Lane to the south. This approximately 3 ½ mile area has been referred to as the “community spine” in City Plan, and continues to be a targeted area for public investment. An extensive public process was undertaken to engage and solicit input from stakeholders. The Plan articulates a bold vision for Midtown that includes higher-density, transit-oriented development; recommendations for implementing the vision include concepts for improving the transportation network, buildings, and public spaces. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION Work began in summer 2012 on the Midtown Plan (formally called the Midtown Urban Design Plan). The project was managed collaboratively between the Economic Health and City Planning departments, alongside a consultant team led by Winter & Company from Boulder, CO. The purpose of the Plan is to create a long-term vision that will compliment current and forthcoming investment to revitalize the corridor. Midtown has been defined as the College Avenue commercial corridor between Prospect Road to the north, and Fairway Lane to the south. This approximately 3 ½ mile area has been referred to as the “community spine” in City Plan, and continues to be a targeted area for public investment. City Plan policy LIV 5.2 specifically states, “The ‘community spine’ shall be considered the highest priority area for public investment in streetscape and urban design improvements and other infrastructure upgrades to support infill and redevelopment and to promote the corridor’s transition to a series of transit-supportive, mixed-use activity centers over time” (pg. 52). An extensive public process was undertaken to engage and solicit input from a variety of stakeholders. Development of the Plan was generally divided into three phases, described below. Phase 1 (July - October 2012): included extensive information-gathering to gain an understanding of how Midtown exists today, and the greatest challenges and opportunities for the future. This included tours of the corridor and meetings with City staff, residents, property owners, business owners, City Boards/Commissions, and community organizations. Phase 2 (November - February 2013): explored preliminary design concepts for the corridor, and included an intensive, hands-on workshop that was attended by more than 70 community members. These concepts were presented and explored more thoroughly with City Council at a work session on January 8. Phase 3 (March - August 2013): developed concepts and recommendations into a draft document. Staff coordinated extensive outreach throughout the month of June to obtain feedback from stakeholders. The draft Midtown Plan was available online for public review and comment. Additionally, a public open house was held on June 27; this provided an informal, drop-in venue for community members to view major concepts and recommendations and give feedback. Plan Adoption: the Planning and Zoning Board unanimously recommended the Plan on September 12, and City Council is asked to consider this Resolution to formally adopt the Midtown Plan. 164 of 433 October 1, 2013 -2- ITEM 22 Major Plan Concepts and Recommendations The Midtown Plan and Appendix are provided as an attachment to this agenda item summary. Key concepts and recommendations from the Plan are summarized below. Vision and Framework: Chapter 1 establishes the primary objectives of the Plan and provides a high-level conceptual review of the key design elements. The Framework Map is a key figure, which provides the graphical representation of the major recommendations (see Appendix A-1 of the Plan). Additionally, the vision for Midtown is articulated, and can be summarized as follows: • Midtown will be a vital neighborhood with a mix of uses and activities that serve a broad spectrum of the community. • It will have a distinct identity that distinguishes it from other parts of the city and should be a destination in its own right. • Streets will be inviting to pedestrians, and public art and civic facilities will be located throughout the area. • Midtown is envisioned as an urban area with higher densities. • It will be an economic generator that is conveniently accessible from abutting residential areas, while continuing to serve the community as a whole. Mobility and Access: Chapter 2 establishes the vision for transportation-related elements including street cross- sections, transit, bicycles, pedestrians, and parking. Important recommendations include: • Work within existing curb-to-curb dimensions when improving streets. Outside of curbs is an enhanced public realm, including wide, detached sidewalks, which sometimes suggests additional right-of-way (ROW). See Appendix A-5-8 of the Plan. • Improve frontage roads to be more bike-friendly. When frontage roads end, continue bike circulation through wide, detached sidewalks along College Avenue, similar to the approved redevelopment plans for Foothills Mall. • Construct a grand pedestrian promenade adjacent to MAX between the Spring Creek Overpass and Horsetooth MAX station. The ideal cross section allows for a 15-foot multi-use path (bikes and pedestrians only) with 15-foot landscaping and 10-foot buffer between path and buildings. Where ideal cross section does not fit, it may be more feasible to narrow the cross section, but should not be less that 10 feet for the path. The promenade concept should be continued north and south for the length of the corridor, although it may take different forms due to lack of physical space, e.g., south of Horsetooth Road, Mason Street could provide a promenade-style amenity. • Provide continuous, designated bike facilities. Where there are gaps in the current system and sufficient ROW is available, provide on-street bike lanes/buffered bike lanes/cycle tracks. Where ROW is not sufficient, use shared lane markings or bike route markers to direct cyclists. • Improve intersections: safety improvements such as signage, pavement markings, medians, signal detection, green paint, “bike boxes”, or two-stage turn boxes. • Connect to transit: bus stop designs along major east/west streets should be enhanced to match/compliment design of MAX stations, and fit within recommended streetscape palette for Midtown. • Keep parking subordinate: encourage developments to locate parking behind structures, and encourage structured parking, particularly near transit stations. Streetscapes, Signage and Wayfinding: Chapter 3 provides visual image recommendations for the urban design pallet and signage system for Midtown. • Use the recently-updated Streetscape Standards provided in the Larimer County Urban Area Street Standards as the guide for public realm landscaping in Midtown. • Establish three separate “Character Areas” within Midtown. Dividing the corridor in this way helps to break down its length and provide the opportunity to create and refine sub-district identity. The Plan suggests a “theme” for each area, although it is recognized the themes should evolve organically and be driven by businesses and development: N Upper Midtown = Garden theme N Central Midtown = Art/Entertainment theme N Lower Midtown = Innovation theme • Urban design elements such as benches, planters, lighting, bike racks, and signage should be made from durable, sustainable materials. While the material and style should be unified for Midtown, each Character 165 of 433 October 1, 2013 -3- ITEM 22 Area’s theme should be incorporated into the design. Parks and Open Space: Chapter 4 provides recommendations for public spaces, including: • Provide a rich collection of outdoor places for informal and formal gathering. N Each Character Area should have one major open space; the space could be an urban plaza or urban park, verses a traditional green park. N Minor open spaces, e.g., small courtyards, plazas, dining areas, should be distributed throughout the corridor as part of private development. • Connect major and minor public spaces to the broader pedestrian circulation network in the area to ensure convenient access. Development Prototypes and Design Guidelines: Chapter 5 provides conceptual site designs for a variety of redevelopment scenarios, and Chapter 6 follows with design guidelines to aid in the implementation of the built environment vision. Key development concepts include: • Prototypes shown are “ideal scenarios” for high density development. Market conditions at the time of development and/or contextual issues specific to the site will determine the eventual outcome; however, encourage an urban form and key design principles whenever possible. • Support increased density, particularly near MAX stations. • A variety of parcel sizes and development prototypes can and should play a role in the revitalization of Midtown. New development should consist of both large-parcel, mixed-use projects and smaller, nuance site designs that will add to the overall character and charm of the corridor. • Locate buildings along street edges and parking on the interior of sites. • Give pedestrian circulation highest priority when designing site layout. • Sidewalks, promenades and other pedestrian paths should be designed to invite their use through thoughtful planning and design. • Incorporate art and creative design elements onto buildings and in other spaces viewed by the public. • Projects should be environmentally sensitive in their site design and layout. • Buildings should maximize energy efficiency and conservation, which includes addressing lighting, ventilation, alternative energy sources, and solar access. Implementation Strategy: Chapter 7 recommends several funding sources that could be available to assist with infrastructure and development/redevelopment projects. Emphasis is placed on public-private partnerships to optimize revitalization efforts. • Implementing the Plan will take a proactive effort, but it is equally as important to be responsive, and have the flexibility to react to new opportunities and changing conditions as they arise. • Both the public and private sectors must share in the responsibility of implementation. • Ongoing conversations should occur between the City, South Fort Collins Business Association, and other stakeholders to prioritize key improvements that will catalyze revitalization. • Review the Plan regularly to assure recommendations are relevant and implemented. • There are a variety of implementation tools that may be used to help achieve the vision. The Plan makes recommendations for improvements that range from project-specific, e.g., energy efficient buildings, to communitywide, e.g., enhancing the street network in Midtown to be more bike- and pedestrian-friendly. It is important to consider the type of improvements when attempting to match an implementation tool or tools, so the tool and application align for an appropriate benefit. Existing and new implementation tools to consider include: Financing • Private investment • Tax increment financing (TIF) via the Fort Collins Urban Renewal Authority • Business Improvement District (BID) • Add Midtown projects to the Capital Improvement Project list (if not listed already) • Community Development Corporation • Property tax abatements • Revolving loan/grant fund • Metro District 166 of 433 October 1, 2013 -4- ITEM 22 • Department of Housing and Urban Development Section 108 Loan • Private Activity Bond (PAB) • Personal property tax rebate • Manufacturing use tax rebate • Special assessment district • City of Fort Collins General Fund - Budgeting for Outcomes Process • Citywide tax initiatives, e.g., Building on Basics • Grants Policy • Zoning and Code • Design/Signage guidelines • Expedited permitting/review • Reduced development fees • Business retention/recruitment FINANCIAL / ECONOMIC IMPACTS There are no direct financial impacts as a result of adopting the Midtown Plan. Indirectly, the purpose of the Plan is to establish a vision that will encourage investment in the corridor; such investment will not only come from physical improvements and increased values, but also bringing new residents and businesses to Midtown that will support continued economic activity. Although prioritization of key improvements has yet to occur, the Plan anticipates the need for public-private financial partnerships to implement the bold vision. MAX is a prime example of public investment in the corridor, although there are additional opportunities to proactively improve some of the public infrastructure. It is anticipated that the upcoming Midtown College Avenue Corridor Plan will identify in much more detail some of the public improvements that should be pursued, particularly related to streets and intersections. ENVIRONMENTAL IMPACTS There are no direct environmental impacts as a result of adopting the Midtown Plan. Indirectly, the concepts and recommendations of the Plan are intended to support environmentally-conscious principles. By directing investment and development in Midtown and along MAX, the City supports a sustainable development pattern that is intended to encourage alternative modes of transportation (reducing vehicle miles traveled and associated air quality issues). The Plan speaks directly to the need for designing buildings and sites to be more energy efficient by suggesting the use of alternative energy sources, consideration of solar access, and protection and enhancement of natural resources where they exist. Bringing nature into our urban areas is also identified as a key concept, which can be accomplished by increasing the amount and quality of public spaces and incorporating natural amenities into private development, when possible. BOARD / COMMISSION RECOMMENDATION At a public hearing on September 12, 2013, the Planning and Zoning Board voted unanimously to recommend that City Council adopt the Midtown Plan, followed directly by implementation strategies, including Land Use Code updates. This Resolution to adopt the Midtown Plan would not make any changes to the Land Use Code, primarily because existing development standards align well with the Plan’s vision, and the implementation strategy set forth is intended to take more of an incentivize/partnership approach with the private sector. While the Board acknowledged this approach, it was felt that a strong regulatory foundation would also be needed and that Code changes should be considered. Staff is recommending that a stakeholder implementation group be convened should the Plan be adopted that would include members of the South Fort Collins Business Association, Midtown property owners, and at least one member of the Planning & Zoning Board. The purpose of this group would be to prioritize needed improvements suggested by the Plan, and thoroughly vet funding and regulatory mechanisms to implement those improvements. The Board was supportive of this approach. The Board’s motion also included a recommendation to have a defining enhanced pedestrian corridor throughout the study area, connecting the northernmost boundary to the southernmost boundary. The Plan currently recommends 167 of 433 October 1, 2013 -5- ITEM 22 a grand pedestrian promenade for the middle segment of the Plan area, and that Mason Street should be the primary north-south pedestrian connection south of Horsetooth MAX station. The Board asked that the pedestrian connection be continued to the northern boundary at Prospect Road, and south to the MAX South Transit Center. If Council agrees with the Board’s recommendation, staff would extend the line on the Plan’s Framework Map to visually represent this concept of a continuous, enhanced pedestrian connection, and add language to the Plan articulating this concept. PUBLIC OUTREACH Several different formats for obtaining public input were utilized for this planning process, including: • Small stakeholder focus groups • Online questionnaire • Large community workshop • One-on-one meetings and email communication • Presentations to stakeholder groups • Public open house • Online comment form • City Council work session Information about the project was communicated through several sources: • Project website, www.fcgov.com/midtown <http://www.fcgov.com/midtown> • News releases • City Facebook Page • Twitter • Postcard mailing • E-newsletters The following stakeholders had opportunities to provide feedback: • Bike Advisory Commission • Art in Public Places Board • Planning and Zoning Board • Fort Collins Board of Realtors, Government Affairs Committee • Economic Advisory Commission • Fort Collins Area Chamber of Commerce, Local Legislative Affairs Committee • Commission on Disability • Fort Collins Auto Dealers Association • CanDo Built Environment Work Group • Transportation Board • South Fort Collins Business Association • Parks and Recreation Board • Natural Resources Advisory Board • General public, including business/property owners and residents ATTACHMENTS 1. Midtown Plan Executive Summary 2. Midtown Plan 3. Planning and Zoning Board minutes, September 12, 2013 4. Powerpoint presentation 168 of 433 Plan Purpose Midtown has been defined as a portion of the College Avenue commercial corridor, spanning slightly over three miles from Prospect Road south to Fairway Lane. This has been a priority area for the City given it includes a significant portion of College Avenue and the Mason Corridor, collectively defined as the “community spine” in City Plan. Policy LIV 5.2 provides the foundation for continued focus in Midtown stating, “the ‘community spine’ shall be considered the highest priority area for public investment in streetscape and urban design improvements and other infrastructure upgrades to support infill and redevelopment and to promote the corridor’s transition to a series of transit-supportive, mixed- use activity centers over time” (City Plan, pg. 52). Plan objectives include: • Complement current and forthcoming investment by articulating a vision for the area • Ensure multi-modal connectivity and improved circulation throughout Midtown and promote optimum use of MAX • Craft a parking strategy that supports increased densities • Improve wayfinding and sense of identity • Identify opportunities to enhance streetscapes • Articulate design objectives through varied development prototype case studies, to guide the design of future redevelopment and reinforce the vision • Provide recommendations for financing and implementing the vision How to Use this Plan The Midtown Plan is intended to serve as a policy guide for the City, private investors, and community members as investments are made to revitalize the area. A bold vision for an urban, transit- oriented corridor is put forth, but it is recognized that implementing the vision will take time and require commitment from both the public and private sectors. Each Chapter outlines a vision and key recommendations for different topic areas, as follows: Chapter 1 – General Framework Concepts Chapter 2 – Mobility and Access Chapter 3 – Streetscapes, Signage and Wayfinding Chapter 4 – Parks and Open Space Chapter 5 – Development Prototypes Chapter 6 – Design Guidelines Chapter 7 - Implementation Streetscapes,Summary Signage and Wayfinding Midtown Plan Executive • Median landscaping is recommended to follow the recently-updated Streetscape Standards provided in the Larimer County Urban Area Street Standards. • Establish a sense of identity for the three character areas: − Upper Midtown = Garden theme − Central Midtown = Art and Entertainment theme − Lower Midtown = Innovation The purpose of defining these three areas is to help conceptualize the area in manageable pieces; dividing the corridor into three segments helps to provide a sense of each sub-area being broader than just College Avenue. The themes should be expressed in streetscape elements in the public realm. Parks and Open Space • Provide a rich collection of outdoor places for informal and formal gathering. • Each character area should have one major open space; the space could be an urban plaza or urban park, verses a traditional green park: − Located ¼ mile from MAX station. − .5 – 2 acres, but probably not larger than 4 acres. Public Process Work began in summer 2012 on the Midtown Plan. The project was managed collaboratively between the Economic Health and City Planning departments, along with a consultant team led by Winter & Company from Boulder, CO. Information and guidance from the community was collected through various means of public outreach, which helped to shape the vision and key recommendations of the Plan. Phase 1 (July – October 2012): included extensive information gathering to gain an understanding of how Midtown exists today. This included tours of the corridor and meetings with City staff, residents, property owners, business owners, City Boards and Commissions, and other community organizations such as the South Fort Collins Business Association. Phase 2 (November – February 2013): developed preliminary design concepts for the corridor, and included an intensive, hands-on workshop that was attended by more than 70 community members. These concepts were presented and explored more thoroughly with City Council at a work session on January 8, 2013. Phase 3 (March – June 2013): incorporated feedback into a draft document. Staff coordinated extensive outreach throughout June to obtain feedback from stakeholders. The draft document was available on the project’s website and provided an opportunity to review and provide comments electronically. Additionally, a public open house was held June 27 for community members to visit with staff and review the recommendations of the plan. Triple Bottom Line The concept of sustainability is interwoven throughout the Plan, with considerations given to social, environmental, and economic factors that will make the revitalization of Midtown successful. Making the corridor accessible for all modes and abilities, increasing public spaces, and encouraging higher density and affordable housing are some of the social recommendations. Encouraging the preservation and enhancement of natural amenities, and promoting energy effi cient buildings and site design assist in furthering environmental goals. Midtown is a hub of economic activity, and the goal, through the Plan’s suggested improvements, is to continue to support investment in this vital commercial corridor. New fi nancing tools to encourage and enhance future investment are suggested to assist with the Plan’s long-term implementation, recognizing partnerships between the public and private sectors will be essential. Major Recommendations Mobility and Access • Include car and bike lanes within existing road widths. Outside of curbs is an envisioned enhanced public realm, including wide, detached sidewalks, which sometimes suggests additional right-of-way (ROW). • Improve frontage roads to be more bike-friendly. When frontage roads end, continue bike circulation through wide, detached sidewalks along College Avenue, similar to the mall’s current plans. • Construct a pedestrian promenade adjacent to MAX between the Spring Creek Overpass and Horsetooth MAX station. The ideal cross section allows for a 15' multi-use path (bikes & pedestrians only) with 15' landscaping and 10' buffer between path & buildings. Where ideal cross section doesn’t fi t, it may be more feasible to narrow the cross section, but should not be less that 10' for the path. • Provide continuous, designated bike facilities. Where gaps in current system and suffi cient ROW is available, provide on-street bike lanes/ buffered bike lanes/cycle tracks. Where ROW is not suffi cient, use shared lane markings or bike route markers to direct cyclists. • Improve intersections. Safety improvements such as signage, pavement markings, medians, signal detection, green paint, and “bike boxes” or two-stage turn boxes. • Connect to transit. Bus stop designs along major east/west streets Due to the large file size of the Midtown Plan, it cannot be displayed with the agenda materials. The Midtown Plan can be accessed at http://www.fcgov.com/mason/midtown.php Planning and Zoning Board Hearing Minutes September 19, 2013 6:00 p.m. Council Liaison: Mayor Weitkunat Staff Liaison: Laurie Kadrich Chair: Andy Smith Phone: (H) 482-7994 Chair Andy Smith called the meeting to order at 6:03 p.m. Roll Call: Carpenter, Hart, Hatfield, Heinz, Kirkpatrick, Smith and Schneider Staff Present: Gloss, Eckman, Bolin, Hendee, Lorson, and Sanchez-Sprague Agenda Review Planning Services Manager Cameron Gloss reviewed the agenda. Chair Smith provided background on the board’s role and what the audience could expect as to the order of business. He described the following processes: • Citizen Participation is an opportunity for citizens to address the board on non-agenda related items. • Consent agenda items are considered items which have no known opposition. They are approved collectively at the beginning of the meeting unless a board member, staff or audience member requests an item is pulled and moved to the discussion agenda. • Discussion agenda items will include an applicant presentation, a staff presentation, and public comment. • At the time of public comment, he asked that you come to the podium, state your name and address for the record, and sign-in. He asked that the speaker clearly state their position. He encouraged speakers to share comments relevant to the topic under discussion. • Responses by applicant and staff will follow public comment. • The board will deliberate and reach a decision once a motion has been made and a vote taken. • He will begin each new item with a description of the development type being considered. The board will do their best not to use acronyms or jargon. Citizen participation: None Consent Agenda: 1. Minutes from the August 8, 2013 Hearing Member Schneider made a motion to approve the consent agenda which consists of the Minutes of the August 8, 2013 Hearing. Member Heinz seconded the motion. The motion passed 7:0. ATTACHMENT 3 318 of 433 Planning & Zoning Board September 12, 2013 Page 2 Discussion Agenda: 2. Midtown Plan _______ Project: Midtown Plan Project Description: The Midtown Plan establishes a long-term urban design vision to revitalize the College Avenue corridor between Prospect Road and the South Transit Center. It is intended to support current and forthcoming investment by identifying key design principles that will help transform the corridor into a more urban, transit- and pedestrian-friendly environment in support of MAX. Staff has worked collaboratively with a consultant team to develop the Plan over the past year with extensive outreach to community stakeholders. Recommendation: Recommend to City Council Adoption of the Midtown Plan Hearing Testimony, Written Comments and Other Evidence Assistant City Manager Bruce Hendee said with the MAX Rapid Transit system and the Midtown Plan are an opportunity for the community to provide for a long term vision. Midtown is envisioned as an urban area with higher densities. It will be an economic generator that is conveniently accessible from abutting residential areas while continuing to serve the community as a whole from an economic, social and environmental sustainability perspective. He said it has been identified in City Plan as a high priority area for redevelopment. Economic Health Analyst Megan Bolin said provided a map that showed boundary areas. It follows the commercial area of College from Prospect to the South Transit Center. She described the process used for the developing the plan including identifying existing conditions, developing design concepts, and drafting the plan. Bolin described the vision and how multi-modal (bikes, pedestrians, bikes, transit and vehicles) was incorporated. She also described how the Plan calls for: • A pedestrian promenade will run parallel in the central part of the Plan between the MAX Spring Creek and Horsetooth Stations. • The use of a combination of frontage roads and wide, detached paths will promote biking along College Avenue. • Improved intersections will reduce conflicts by increasing visibility, predictability and awareness of other road users. • Character Areas will reinforce a theme for the overall district and use symbols such as garden, arts, and innovation symbols made of punched steel streetscape furnishings in each Character Area. It will reinforce a theme for the overall district. They propose public spaces with a network of interconnected walkways and smaller courtyards and plazas. Additionally, Bolin described site design features such as articulated buildings close to the street, internal circulation, outdoor courtyards, and surface parking behind frontage buildings. Design principles include: proved excellence in design, creativity, open spaces and habitat, enhanced pedestrian experience and keeping automobiles subordinate. 319 of 433 Planning & Zoning Board September 12, 2013 Page 3 The implementation strategy has been to promote the Midtown’s vision, engage the private sector, incentivize new investment (with financing and regulatory tools) and set priorities for implementation such as continued coordination with the South Fort Collins Business Association. Bolin said City Council will consider adoption of the Midtown Plan at their October 1 Council meeting. Staff asks the Board for their recommendation to City Council to adopt the Plan. Public Input Mike Scheckel with King Soopers Real Estate Department, 65 Tejon Street, Denver said they are very much in support of the Plan. They understand the Plan and have worked with the team at various stages. He said the letter the Board received in their read before materials from King Soopers is from Randall Wright, the Director of Real Estate. He speaks to how they have 11.15 acres within the boundaries of the proposed Plan. Their property is bordered by College, Drake and the Mason Corridor. He said it’s currently the site of a 90,000 square foot Kmart Store, a Loaf n Jug fuel center, and a multi- tenant retail building. Scheckel reinforce the message in Mr. Wright letter, specifically: “…King Soopers has a long-term commitment to the City of Fort, to the existing neighborhood, and the future growth of this area. In an effort to provide a quality shopping experience by redevelopment and revitalization, King Soopers asks that the supermarket use be specifically acknowledges in the Plan as a necessary and complementary commercial use in the Plan area and that flexibility be built into the Plan for supermarket and large retail uses in connection with the building forms, setbacks, parking, urban form, etc. We are confident that King Soopers’ conceptual redevelopment plans discussed with City staff can incorporate many of the guidelines of the Plan and that the redevelopment would not compromise the ability of the remainder of the parcels in the Plan area to develop or redevelop consistent with the Plan objectives.” Scheckel said as it moves forward to adoption, they ask it maintains the flexibility that staff has been discussing with them. They’d like to be able to keep their options open should they have the opportunity to redevelop. If the market drives the required density, they will embrace it. End of Public Input Staff Response Bolin said staff has had several different meetings with King Soopers throughout the timeframe in which they’ve been working on the Plan. She said the Plan is a policy level document. The design guidelines and the development prototypes are conceptual/ideal design scenarios. They are not regulatory. Bolin said ultimately the Land Use Code (LUC) is the regulatory document that would dictate what occurs with a specific development proposal. She said the LUC does provide for modifications should there be a conflict that wouldn’t work well for any development they were proposing. Staff has also had discussions with them relative to the urban renewal tax increment financing available for the Plan area. Chair Smith asked Bolin to respond to the points made in Les Kaplan’s letter relative to visibility. Bolin said from what she understands is he is the new owner of the ToysRUs site and his concerns are related to the visual experience of midtown. Hendee said this is not the first time they’ve heard this from the business community. Their concerns have to do with the visibility of signage. He said the major challenge comes from the Austrian Pines planted 30 years ago. Nobody knew how wide they would get or how they would branch low. He thinks we need to acknowledge the problem and be conscious of that as we move forward with this Plan – he recommends we work with the individual business owners as the issues come up. Board Questions Member Hart said with regard to Mark Lueker’s email, he thinks the issues raised by him about architectural guidelines are implementation issues that are best addressed in the implementation phase. 320 of 433 Planning & Zoning Board September 12, 2013 Page 4 Is that how staff sees it? Bolin said yes. The Design Guidelines that have been established in the Plan do encourage better articulation and the use of a variety of high quality materials whenever possible. Bolin said with regard to implementation, the next step would be to look at the design guidelines and the LUC to see if there are ways to help strengthen the regulatory framework for those types of projects. Member Heinz asked where the pedestrian mall starts and stops. Bolin said the promenade is on the east side of MAX from the Spring Creek Station on the north to the Horsetooth Station on the south. Bolin said there is a portion where it would jog over to McClelland. In that case, it would be more of an enhanced sidewalk. Hendee said there are two parts—one is what the College Avenue frontage would look like where vehicles are allowed. The other side (of buildings on College) is the promenade. Its intended use is for pedestrians and bicycles. Chair Smith asked if funds were made available, could the promenade run from Prospect to Harmony. Bolin said initially they intended for it to run the length of the plan area but upon further evaluation there are issues related to grade changes and the space available between MAX and existing buildings. Bolin said on the south end, the parcels are very small and deep so there’s not a lot of space. To implement the promenade would take right-of-way potentially making them undevelopable. Bolin said the team thought rather than creating a separate promenade, it would be preferable to direct the pedestrians to Mason Street in the southern portion of the Plan area. Smith said it would be nice if the opportunities were available-- where we’d have a Plan which would create the opportunity to walk great distances. He said it would also encourage development along the promenade. Member Kirkpatrick said it appears the border for the study area does not include the Mason Trail. Is that because we believe the connectivity to the Mason Trail from MAX is already sufficient? Bolin said they’ve always assumed it would be a part of the Plan area. They consider the Mason Trail to be the expressway for pedestrians and bikes through midtown. It will still be there and it will continue to be a very important connector. Kirkpatrick said she was thinking about the connectivity from the Mason Trail to the enhanced corridor the Plan will provide. Member Kirkpatrick asked about efforts around Bike Share. Will we be providing a lot of enhanced connectivity to the proposed Bike Share stations? Bolin said she’s not completely up to speed on the most recent developments of Bike Share. Bolin said they could probably add language to the Plan to make sure the Bike Share Program that is coming will be made available. Member Kirkpatrick said the board can only really require what’s in the Land Use Code (LUC). She was curious in the smaller public space section how that might be required in the LUC. Planner Seth Lorson said with regard to the requirement for courtyards, the LUC already requires them. Kirkpatrick asked about scale—requirements for small, medium and large parcels. Lorson said we do not have size specific requirements when it comes to plazas and pedestrian gathering spaces. Chair Smith said in the implementation of this Plan, there would a desire on the board’s part to see something above and beyond what is already required. They may be tiered (depending on their proximity to pedestrian spaces) but that the spaces would be larger than normal. Member Kirkpatrick said she would agree with that but that she certainly can appreciate that we want to see economic reinvestment in this corridor and that business owners want to see some degree of flexibility. She said there probably is some ‘sweet spot’ where we’re providing incentives and flexibility and also meeting at least the baseline for this vision. She said she believes we have a world class horizontal land use code but we may have room for improvement for our vertical land use code. Hendee said we’re right in the middle of a series of meetings with business owners to discuss how we can move the Plan forward and still allow some flexibility. He said Kirkpatrick’s comment about the sweet spot might be exactly what they would come up with. He said the long term vision may be one 321 of 433 Planning & Zoning Board September 12, 2013 Page 5 generation of buildings away from what exists now and yet we really want to provide the setting for that to happen as clearly and as quickly as we can. He said to ask them to come in and level a perfectly good building to start over from scratch is not really going to work very well. He said we have to find that sweet spot where we find that adaptive reuse. Eventually the value of the land will be reached where we can vertically make this happen and he anticipates that will happen with a series of LUC change recommendations. Member Kirkpatrick said the innovation character area symbol sort of looks like Wayfinding and is sort of distracting. Bolin thank her for her feedback. Chair Smith said with regard to King Soopers, Les Kaplan and what Hendee just said; he thinks it’s important for the city to acknowledge that financially in order to facilitate the development pattern that this vision calls for. He said when we talk about the overall investment of MAX, it makes sense to protect that investment by spending some money up front to catalyze. He said he was speaking from the private sector perspective about phases to get there (not necessarily the larger public improvements like the promenade or how we design bike lanes). He thinks we should be flexible initially. He said once we prove the concept, we can ratchet up standards. Member Carpenter said she knows the Downtown URA (Urban Renewal Authority) has been instrumental in allowing us to have old town the way we want it. Have we thought of anything like that? Hendee said the URA is certainly the appropriate mechanism to use for financing and for trying to make these projects happen. Funds have been budgeted for gateway development. Hendee said in the long term there may be a Business Improvement District very similar to how the DDA (Downtown Development Authority) operates. He said there are 440+ businesses along this stretch of College Avenue so it may take some time to get enough members. He said in the short term they are exploring business strategies that incorporate the use of MAX to create marketing opportunities for businesses along that corridor. Chair Smith asked if the South College Business Association (SCBA) took a formal position on the Plan. Bolin said no. She said they are in general support of the vision. Member Heinz asked if there would be regional rail along Highway 287 from Fort Collins to Denver in the next 50 years. Could this Plan support that? Hendee said CDOT (Colorado Department of Transportation) did an Environmental Impact Study that evaluated different options for transit along I-25 and along the historic cores. Based on their findings they said that any rail that would happen would go along community corridors. In the long term, there may be a great opportunity for rail. Chair Smith asked about the possibility of siting new public facilities along this corridor to help stimulate activity and be catalyst projects. Could this be a part of the BOB (Building on Basics) II discussion? Hendee said there is one item under discussion that he thinks is a real possibility and that is an early childhood care center that would provide transit for folks along the corridor. That’s the only public facility he knows of this point. Chair Smith said the discussion that Creekside Park in upper mid-town may become a main civic focus. He thinks it would be constrained with Highway 287 – College Avenue on the east and the railroad tracks on the west . Is it really feasible for enhanced programming such as summer concerts at that location? Would it make more sense to site it elsewhere? Bolin said the Plan talks about one large civic place within each of the Character Areas so Creekside Park could serve as a smaller venue for public open space. Smith applicants many time offer proposals based on documents such as this Plan. He’d like to suggest we loosen or tighten up Plan specifics to aid the process of implementation. 322 of 433 Planning & Zoning Board September 12, 2013 Page 6 Member Schneider asked what the timeframe would be for staff’s recommendations for Land Use Code (LUC) amendments related to this Plan. Bolin said a specific work plan has not been but she thinks it could happen within the next few months. Schneider asked what projects are in the pipeline for that area. Hendee said the only one that comes to mind already fits – Prospect Station (housing on the west side of the tracks). He said Les Kaplan would like to move forward with the ToysRUs project and the Everett Companies have some redevelopment work they’re doing. Member Heinz said when it comes to open space are there plans by the City to purchase some of those parcels? Bolin said the areas noted in the plan are conceptual. She said for he large civic spaces, it is intended for the City will be the owner and developer. Member Kirkpatrick said with regard to plazas and open space, where would the Summit (at College near Stuart) pedestrian plaza or corridor connectivity be. Bolin said she cannot speak to how that particular development fits the LUC. She can only speak to the site plan. Their courtyards and public spaces face west (toward the railroad tracks). She said they connect via a pathway down to the Spring Creek Trail. Kirkpatrick asked if that was considered public space. City Planner Seth Lorson said he does know but when they were talking about the promenade extension, they saw there was a pretty nice connection with green space and trails along where the MAX will run. Lorson said as to plaza space, the LUC does require plaza space. He said it would be a cooperative effort by separate land owners to make a combined larger space. Lorson said the city is also getting started on a Nature in the City project that could ‘help inform’ this concept of plazas and open space in these areas. Kirkpatrick asked if the Summit has public access ‘guaranteed’. Lorson said he’s not familiar enough with that particular project. It would, however, require a public access easement. Member Hart said it seems to him that what we are talking about is what we want to see in the next phase of the Plan. The Summit was built before we have the Plan. He said if we recommend this Plan for adoption and Council adopts it, we will have at least a policy document in place to fall back even if we don’t have LUC requirements. He thinks what we really have to do tonight is to adopt the vision and work on these details in the future. Chair Smith said we’ll probably recommend adoption but he thinks it’s important for the board to not wait to weigh in on enhancements to their recommendation. Member Carpenter said we believe in this vision and we recognize as development proposals come forward that we have the necessary tools. She said we don’t want this Plan to just go on the shelf. She said we’re going to see a lot of change quickly when MAX goes in so it’s very important to the board that we move directly into an implementation stage where the board gets the required tools. She recognizes we need flexibility. She said it’s sort of like the carrot and stick. You need to incentivize but without a little bit of a stick (to make it happen), it’s not going to happen. Chair Smith asked how Creek Side Park, Spring Creek Trail, and Johnson Street connect to the MAX Spring Creek Station. What’s the pedestrian connection there? Bolin said the Mason Trail would be the most direct way. She said they’re also considering a direct pedestrian connection with a pedestrian bridge that would connect to a small residential street – making a mid-block connection to the Spring Creek Trail. Chair Smith asked is parking intended on smaller street like drives that run north/south between the College Avenue frontage and the MAX corridor—buildings ‘bookending’ center parking? Bolin said it’s not shown on the circulation map primarily because it’s intended to be part of a private development but ultimately that would be the ideal. 323 of 433 Planning & Zoning Board September 12, 2013 Page 7 Board discussion Member Kirkpatrick moved to recommend approval of the Midtown Plan by City Council followed directly by implementation strategies including Land Use Code updates. We recommend a defining enhanced pedestrian corridor throughout the study area connecting the northernmost boundary to the southernmost boundary. Member Carpenter seconded the motion. Chair Smith said this is where he’d like to add some comments. He’d like to recommend a friendly amendment that we see the Grand Promenade contained within the Plan with a goal that it extend from Harmony to Prospect. He thinks that it defines the whole corridor. Member Kirkpatrick said she likes the idea but from her experience with Transportation Planning, she thinks that corridor is really constrained and she has a hard time seeing how we can do it with right-of- way and the business parcels in place. She thinks it’s not included for good reasons. Member Hart asked if Chair Smith would be willing to qualify with a “if possible, if practicable”. Smith said some of this is already practicable – it’s policy. There may be some pieces that are not feasible due to practical limitations. He’d be great to have the language in the Plan, however, to provide the vision. Member Schneider said he doesn’t disagree and the issue is Mason Street. He said if you look at the distance between Mason Street and MAX, he doesn’t think it’s physically feasible. He said all of a sudden, you’re limiting what can be done on that narrow section. Are we creating a dis-service because we’re trying to push too hard for something that is unattainable for that section? Smith said if it’s left open, it could jog some in the mid-block street like drives and there would be some continuity of a promenade. Member Hart asked if you could have it on parcels between College Avenue and Mason. Chair Smith asked staff what they thought. Lorson said staff considered a promenade the full length and then they started to look at the actual dimensions of the lots next to the MAX line south of Horsetooth. They are very narrow. From a practical standpoint it didn’t make sense. Lorson said you can have a really vibrant pedestrian environment from the promenade to Mason Street across from the Mid-town Art Center all the way down to Harmony. Bolin said this particular section is intended to be grand promenade with Mason Street the southern pedestrian connection. Member Kirkpatrick asked Chair Smith if it would be okay if instead of showing it as an internal circulation opportunity it showed as an enhanced pedestrian feature. Smith said he likes the promenade because it has a distinct feel to it and defines the corridor. He thinks south of Horsetooth feels very different than the northern two-thirds of this corridor. His sense is this is a way to really making three distinct character areas. He thinks there should be some unifying themes in the built environment. This is one way to do that. We’ve been talking about how you get to the College Avenue Boulevard Plan--how the different right-of-way discussions will occur. He doesn’t think anything gets implemented unless it’s contained in a policy document. He said we can always get pushed off for practical reasons but he thinks the devil is in the details. Member Carpenter said that Mason from south of Horsetooth would continue with the feel of the grand promenade. What if we recommended that once it got south of Horsetooth, it shifts over to Mason Street? Smith said yes, the way it can be done is a lighter version. He thinks this is good urban design if it conveys the same feeling similar to a ‘light version’ addition to a historic structure. He’d like to see it extended in that fashion from Prospect to Harmony—it’s unifying. 324 of 433 Planning & Zoning Board September 12, 2013 Page 8 Member Schneider asked if doing this you see existing buildings being torn down and rebuilt in order to accommodate this vision. He said one thing we don’t want to do is completely bulldoze everything just to rebuild these bigger buildings. He wouldn’t like to see us push too hard. Hendee said you almost have to put on your 50 to100 year glasses to what you’d ultimately like to see. It’s a hard one because of the block scale today. It would be pretty easy to say it doesn’t fit. Hendee said the team struggled with it so they really welcome the board’s thoughts on it. He said he can see it going along from Horsetooth to Harmony and that it will be difficult, generational, and in the future. He used examples of how the San Antonio River Walk and the strand along the Pacific coast beach homes were built in phases. Chair Smith said the hallmark of the Mason Corridor is economic development but it’s also the promotion of multi-modal transportation. Smith said because we’re talking at a policy level he’d like to leave it open to staff’s creativity. It may come back as not possible but let’s work from what’s possible at the policy level and figure out how later. Carpenter said when we get to the implementation we probably ought to say a little bit more about that. She said the promenade is being defined as not an actual street. Member Hart said we’re talked about MAX as multi-modal transportation but what we’re really dealing with is a ‘people place’. Certainly, if you have some type of pedestrian activity throughout the corridor, it’ll be a much better people place. If we want to have something that talks about ‘within the limit of the area’ to have a pedestrian corridor from north to south, that would be great. That makes a lot of sense. Member Carpenter said we may have a better chance of getting the first part of the implementation of that feeling if we did it along Mason between Horsetooth and Harmony. That could happen pretty quickly because so much of it is already there. Member Heinz asked why we’re stopping at Harmony, why can’t we go all the way to the South Transit Center if we’re looking at ‘super long term’. Kirkpatrick agreed. Carpenter said she’d like to see it where’s it’s more feasible before ‘super long term’. Smith said he’d be okay with that and that the amendment to the motion would be the promenade would be extended from Prospect to the South Transit Center. Member Carpenter said she’s not sure she’s comfortable with that and the reason is the practical side of her has a hard time looking at something that she doesn’t think is feasible. Carpenter said if we can make it a way that it’s feasible and you still get that feel, then she’d be comfortable with recommending that to City Council. Hendee said the team has really looked at the pragmatic reality of doing this based on the lot dimensions. He has a little reticence in suggesting going south without taking that into consideration. Hendee said one of the interesting things about district formation is the change in character—it’s not having everything the same. If the promenade shifts over to Mason when you get south of Horsetooth, it creates a whole different character which might be a little intriguing. If we took that idea and really embellished it, that would still give the lot owners the dimension they’d need. Hendee said that’s not to say we couldn’t create some connection points over the Mason Trail and the MAX station. It might be a good idea actually to shift this over, change the character, and give the district a whole new reason for being. That way we could carry Chair Smith’s idea down further to the south without discounting it. Chair Smith said we encourage sidewalks that have a meandering characteristic. Member Carpenter said maybe a bit wider sidewalk would be good. Planning Manager Cameron Gloss said it sounds as if the board would like to promote a high quality pedestrian experience and the form is not as critical as you go to the south portion of the promenade. Maybe the promenade is very specifically defined but as you go south it’s really about the pedestrian experience. Member Schneider said he’d be more in favor of that—he’d rather not say promenade character. Smith said as much promenade character as possible. Carpenter thinks there’s space along Mason Street and it’s practical. 325 of 433 Planning & Zoning Board September 12, 2013 Page 9 Member Hart asked if they wanted to limit it to Mason Street—maybe something else would work and we should say within the boundaries of the corridor. Heinz agreed. Chair Smith summarized—within the boundaries of the corridor that some enhanced pedestrian connection be made from the north and south ends of the promenade—all the way from Prospect to the South Transit Center in a character similar to the promenade itself. Member Kirkpatrick said what if we recommend that is a defining enhanced pedestrian corridor throughout the study area connecting the northernmost boundary to the southernmost boundary. Heinz and Schneider agreed. Carpenter agreed. (The language was added to the motion shown above.) Hendee asked if it would be okay if they took the ‘red line’ and shifted it over and drew it south as a schematic to add onto the Plan visually, it would carry the board’s intent forward. Smith said yes – at that point it’s almost a bubble diagram and tight enough for their purposes. Hendee said it would carry the board’s idea on the Plan. Chair Smith asked when we get into implementation will there be certain timeframes when we’d measure success. Bolin said that’s definitely the intent. It’s not specifically called out in the Plan but in all the implementation discussions they’ve had with the South Fort Collins Business Association (SFCBA), they recognize this is going to be a responsive plan as conditions change over time. Hendee asked if it would make sense to provide a specific period of time like 3 or 5 years in which it gets revisited. Smith said he’d just like to know the thinking about predetermined monitoring. When will we come back and check on the status of the Plan with tangible measurements? Chair Smith said he feels strongly about the concerns that King Soopers and Les Kaplan had. Between the two of them, they speak for a lot of property owners. They are probably not the only folks with those concerns. There needs to be some flexibility to some of the standards at least early on. He’s not saying we throw away the Code but we acknowledge that in order to really activate the corridor and its economic viability, there be some flexibility applied. Member Kirkpatrick thinks is a great plan and she hope it comes to life. Member Hatfield said no matter what we approve, things will change anyway because things are always changing. Member Schneider said he thinks the vision is there. It’s good to see thoughts for the future. He wants to be cognizant of the redevelopment aspects and also what can and cannot be done from a practical standpoint. He thinks we’re on the right track having the pedestrian experience from north to south. He also thinks the promenade center needs to be its own entity because that’s going to redevelop faster and not take as much URA or tax increment financing – it can be done through the private sector. He thinks staff has done a good job. He said keep up the good work; he looks forward to seeing the Land Use Code changes coming back. Chair Smith said he really believes that areas revitalize quickest and best when the interface between the public and private realm is activated. He said the human experience is something to celebrate. He thinks about all the great things in our community that people write home about or take visitors to. They’re all focused on people. They are unique and they were bold at conception. He thinks it’s important to recognize the interface between the public and private realm all the way down the spine as the greatest source of opportunity to revitalize the whole corridor. It’ll ‘bleed out’ east and west of there. He’s grateful we have city staff that embraces bold thinking and the notion that we can build a world 326 of 433 Planning & Zoning Board September 12, 2013 Page 10 class city. This is one of those fun times to be a Planning and Zoning Board member and a part of something like this. The motion was passed 7:0. Other None The meeting was adjourned at 8:00 p.m. Cameron Gloss, Planning Services Manager Andy Smith, Chair 327 of 433 1 City Council October 1, 2013 Midtown Plan An Urban Design Vision for a Revitalized Corridor ATTACHMENT 4 328 of 433 2 Tonight’s Action  Resolution to adopt the Midtown Plan 329 of 433 3 Plan Area North Boundary: Prospect Road South Boundary: ¼ mile south of Harmony Road East Boundary: Commercial on east side of College Avenue West Boundary: Mason Corridor 330 of 433 4 Why Midtown? City Plan Mason Corridor MAX Bus Rapid Transit 2010 Redevelopment Study Transit Oriented Development Overlay Midtown Urban Renewal Plan Midtown Plan 331 of 433 5 Process Existing Conditions • July – October 2012 • Tour the corridor • Stakeholder outreach Design Concepts • November – January • Community workshop • City Council work session Draft Plan • February – June • Stakeholder outreach • Public open house Adopt Plan • October 2013 332 of 433 6 Vision Vibrant Urban Destination Transit- & Pedestrian- Oriented 333 of 433 7 Pedestrian Promenade • Parallel to MAX • Future redevelopment orients to promenade • Dotted line = pedestrian connection, not full promenade 334 of 433 8 Frontage Roads Use combination of frontage roads and wide, detached paths for north-south biking along College Avenue Create alternative design for frontage roads that allows cars, bikes, and pedestrians to share the street 335 of 433 9 Improved Intersections Reduce conflicts by increasing visibility, predictability and awareness with other road users 336 of 433 10 Character Areas Gardens Arts & Entertainment Innovation • Break down length of corridor • Unique design themes for each expressed through: • Signs • Benches • Planters • Bike Racks 337 of 433 11 Public Space 1 large public space per Character Area Network of interconnected walkways, smaller courtyards & plazas 338 of 433 12 Site Design • Achieve excellence in design • Promote creativity • Provide open spaces and habitat • Enhance pedestrian experience • Keep automobile subordinate 339 of 433 13 Implementation Strategy • Promote Midtown’s vision • Engage the private sector – coordination between public and private entities essential • Incentivize new investment – Financing and regulatory tools • Set priorities for implementation – Continue coordination with the South Fort Collins Business Association 340 of 433 14 Board Recommendation  Planning and Zoning Board unanimously recommends adoption of the Plan 341 of 433 15 Thank You 342 of 433 RESOLUTION 2013-086 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE MIDTOWN PLAN AS AN ELEMENT OF THE COMPREHENSIVE PLAN OF THE CITY OF FORT COLLINS WHEREAS, in 2010, the City Council adopted Fort Collins’ comprehensive plan called “City Plan”; and WHEREAS, “Midtown” Fort Collins is identified as the College Avenue commercial corridor between Prospect Road on the north and Fairway Lane on the south, including the MAX Bus Rapid Transit System, which corridor is defined as the “community spine” in City Plan; and WHEREAS, policy LIV 5.2 of City Plan supports continued community focus on Midtown, stating that “the ‘community spine’ shall be considered the highest priority area for public investment in streetscape and urban design improvements and other infrastructure upgrades to support infill and redevelopment and to promote the corridor’s transition to a series of transit-supportive, mixed-use activity centers over time”; and WHEREAS, the Midtown Plan was developed using an extensive public process to serve as a policy guide for infill development and redevelopment projects within Midtown; and WHEREAS, the Planning and Zoning Board has recommended that the City Council adopt the Midtown Plan as an element of the City’s comprehensive plan; and WHEREAS, the City Council has determined that the adoption of the Midtown Plan as an element of the City’s comprehensive plan is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Midtown Plan dated September 2013, a copy of which is on file in the City Clerk’s office, is hereby adopted as an element of the City’s comprehensive plan. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 1st day of October, A.D. 2013. __________________________________ Mayor ATTEST: City Clerk 343 of 433 Karen Weitkunat, President City Council Chambers Gerry Horak, District 6, Vice-President City Hall West Bob Overbeck, District 1 300 LaPorte Avenue Lisa Poppaw, District 2 Fort Collins, Colorado Gino Campana, District 3 Wade Troxell, District 4 Cablecast on City Cable Channel 14 Ross Cunniff, District 5 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Nelson, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224- 6001) for assistance. WATER UTILITY ENTERPRISE MEETING October 1, 2013 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Consideration and Approval of the Minutes of the September 3, 2013 Water Utility Enterprise Board Meeting. 4. Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreements. (staff: Lance Smith, Brian Janonis, Jon Haukaas, Kevin Gertig; 10 minute staff presentation; 10 minute discussion) A. Resolution No. 008 Authorizing the President of the Board to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins for the Delivery of Potable Water. B. Resolution No. 009 Authorizing the President of the Board to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins- Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins. The purpose of this item is twofold: WATER UTILITY ENTERPRISE AGENDA 344 of 433 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. 5. Other Business. 6. Adjournment. 345 of 433 DATE: October 1, 2013 STAFF: Wanda Nelson AGENDA ITEM SUMMARY WATER UTILITY ENTERPRISE BOARD 3 SUBJECT Consideration and Approval of the Minutes of the September 3, 2013 Water Utility Enterprise Board Meeting. 346 of 433 September 3, 2013 WATER UTILITY ENTERPRISE BOARD A meeting of the Water Utility Enterprise was held on Tuesday, September 3, 2013, at 7:48 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Boardmembers: Campana, Cunniff, Horak, Overbeck, Poppaw, Troxell, and Weitkunat. Staff Members Present: Atteberry, Harris, Daggett. Resolution No. 007 of the Board of the City of Fort Collins Water Utility Enterprise Authorizing the President of the Board To Execute a Supplemental Contract Amending the Intergovernmental Agreement with the Northern Colorado Water Conservancy District Pleasant Valley Pipeline Water Activity Enterprise, Adopted The following is the staff memorandum for this item. “EXECUTIVE SUMMARY The City of Fort Collins Utilities recently completed the construction of a presedimentation basin at the Munroe turnout on the Munroe Canal for the Cache la Poudre River water. This basin is constructed on lands owned by Northern Water Conservancy District. The City’s existing allotment contract with the Pleasant Valley Pipeline Water Enterprise, an enterprise solely owned by Northern, requires a supplemental contract to allow the City to operate and utilize the basin. BACKGROUND / DISCUSSION The City of Fort Collins can draw raw water from the Poudre River via the Pleasant Valley pipeline, located at the Munroe turnout on the Munroe Canal (Attachment 1). The pipeline and supporting appurtenances are owned by the Pleasant Valley Pipeline Water Activity Enterprise (PVP Enterprise), through Northern Colorado Water Conservancy District (Northern). The City is one of three participants of this pipeline, which also includes the Tri-Districts and City of Greeley. The City constructed a presedimentation basin off the Munroe canal, in order to improve the water quality of the Poudre River after the fires in 2012. This basin was complete on June 10, 2013 and online on June 18, 2013. Similar to the Pleasant Valley pipeline, the City paid for the design and construction of the basin (with reimbursement from the Tri-Districts pending). It provides a means to reduce the debris and sediment that will flow into the pipeline and to the Water Treatment Facility (WTF). 347 of 433 September 3, 2013 47 Because this basin will be on Northern’s land and tie into the pipeline, it will be owned by the PVP Enterprise. To that end, the existing Allotment Contract with the PVP Enterprise must be supplemented to include this presedimentation basin. This supplement adds this structure to the agreement. The City will also contribute the easement assessment required by the PVP Enterprise to Northern, since Northern still owns the land (and the PVP Enterprise has an easement to use the land). FINANCIAL / ECONOMIC IMPACTS The presedimentation basin is needed to ensure water quality treatment of the Poudre River water. As the basin is on Northern’s land, and under the jurisdiction control of the Pleasant Valley Pipeline Water Enterprise, a supplemental contract is required to allow the continued operation and access of the basin. The City paid for the basin (contributions by the Tri-Districts are pending), as the City paid for its portion of the Pleasant Valley pipeline. ENVIRONMENTAL IMPACTS The operation of the presedimentation basin will allow the City to continue to utilize its Poudre River rights, giving options to point of delivery from the River.” Lisa Voytko, Water Production Manager, discussed the necessity for this item. Vice-President Horak made a motion, seconded by Boardmember Overbeck, to adopt Resolution No. 007. Vice-President Horak discussed the importance of the item. The vote on the motion was as follows: Yeas: Weitkunat, Horak, Poppaw, Cunniff, Campana, Overbeck and Troxell. Nays: none. THE MOTION CARRIED. Adjournment The meeting adjourned at 7:56 p.m. _________________________________ Mayor, Ex Officio President ATTEST: _____________________________ Chief Deputy City Clerk, Ex Officio Secretary 348 of 433 DATE: October 1, 2013 STAFF: Lance Smith, Brian Janonis, Kevin Gertig, Jon Haukaas AGENDA ITEM SUMMARY WATER UTILITY ENTERPRISE BOARD 4 SUBJECT Items Relating to the Fort Collins-Loveland Water District Intergovernmental Agreements. A. Resolution No. 008 Authorizing the President of the Board to Execute an Amended and Restated Intergovernmental Agreement with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins for the Delivery of Potable Water. B. Resolution No. 009 Authorizing the President of the Board to Execute an Intergovernmental Agreement for Water Treatment Services with the Fort Collins-Loveland Water District, the Fort Collins-Loveland Water District Enterprise, and the City of Fort Collins. EXECUTIVE SUMMARY The purpose of this item is twofold: 1. To amend the existing Intergovernmental Agreement (IGA) with Fort Collins Loveland Water District (FCLWD) by updating the terms of the Agreement, recognizing additional connection locations, and 2. Allowing for the sale of up to 5 million gallons per day (MGD) of Water Treatment Capacity through a second IGA with FCLWD. For the past year, Utilities staff has been negotiating with FCLWD to restructure the existing water sharing agreement and enter into a separate agreement for the sale of excess water treatment capacity. The revisions to the existing agreement, as well as entering into the second agreement, will benefit the customers of Fort Collins Utilities through incremental revenues and the customers of FCLWD by increasing the amount of water that can be delivered to them. The Water Board has reviewed the proposed amendments and new agreement and recommends approval. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions. BACKGROUND / DISCUSSION In 1999 a Joint Transmission Study was completed by Fort Collins Utilities and the Tri-Districts to determine the need for additional transmission capacity throughout the community. An outcome of that study was the decision by Fort Collins Utilities to build a 60” transmission system which, in addition to meeting the demands of Fort Collins Utilities, would be utilized by FCLWD to convey water from the Soldier Canyon Treatment Plant (SCFP) to FCLWD customers through an IGA. The current water sharing agreement between the City and FCLWD has been in effect since 1999 for that purpose. Delivery points into the FCLWD distribution system were specified in the agreement as were two points of entry into the Fort Collins Utilities transmission system from SCFP. The intention of the water sharing agreement was to allow for an annual balancing between how much water was conveyed through the Fort Collins Utilities transmission system from SCFP and how much water was taken from the Fort Collins Utilities transmission system by FCLWD and to specify the terms of the lease of the excess capacity in the new 60” transmission pipe. No changes are being proposed to the leasing terms and associated transmission charges except to include two additional points of delivery which have been added since 1999. Many of the terms of the agreement concerning the balancing and settlement of imbalances are outdated however, including the amount of water being shared, the points of delivery for any shared water as discussed above and the settlement price of any resulting annual imbalance. In an effort to address these inconsistencies, Fort Collins Utilities and FCLWD have negotiated new terms for the agreement over the past year. 349 of 433 October 1, 2013 -2- ITEM 4 Ongoing development within the FCLWD service area has created a need for higher daily flows of water through the Fort Collins Utilities transmission system for the FCLWD distribution system. The amended agreement being proposed herein will increase the daily flow limit from 9 to 12 MGD which along with the proposed agreement for the sale of excess treatment capacity discussed below should allow FCLWD to meet their demand for several years. (Please note that Fort Collins Utilities is expecting to amend the existing water sharing agreement with North Weld County Water District to lower the maximum daily flow of that agreement from 12 MGD to 9 MGD, hence there is no increase in the combined treatment capacity obligation by Fort Collins Utilities for these agreements.) The current water sharing agreement allows for an annual settlement of any imbalance at $0.36 per thousand gallons with no raw water being provided. This settlement price is well below the current direct cost of treatment much less the current total cost of treatment. As such, the fixed price of settlement, along with no raw water being provided in the settlement, is no longer acceptable to Fort Collins Utilities. To date all annual imbalances have fallen within the specified 5% limit which allows the imbalance to be carried forward into the next water year. However, in the foreseeable future this may not be the case. To make it possible to not require annual settlements in the past it has been necessary for FCLWD to push significant amounts of water to Fort Collins Utilities during shoulder months (February - April and September - October) in order to offset the significant imbalance that occurs during the irrigation season (May - August). In effect, Fort Collins Utilities has provided FCLWD with treatment capacity to meet their peak demand without compensation in the past. The proposed amendment will address these issues by allowing for annual adjustments in the settlement price, requiring raw water is transferred between parties and requiring monthly settlement of any imbalance in excess of 12 million gallons. Because the proposed settlement price for 2013 of $2.0338 per thousand gallons inclusive of the payment in-lieu of taxes (plus transmission charges as outlined in the current agreement) is significantly higher than the current agreement specifies and may require an immediate rate increase for FCLWD customers, Fort Collins Utilities has agreed to ask City Council to allow for this rate to be stepped into over 3 years beginning at $1.3500 per thousand gallons inclusive of the payment in-lieu of taxes in 2013. The terms of the agreement are mutual so that the same settlement terms apply to any imbalance owed to Fort Collins Utilities or FCLWD. Because Fort Collins Utilities has excess treatment capacity and the agreement outlines the right of refusal by either party of water through daily communication, it is not anticipated that Fort Collins Utilities will have a need to take sufficient water from FCLWD to result in a monthly imbalance requiring settlement under normal operating conditions. Lastly on the water sharing agreement, although the letter from FCLWD on May 31st (see Attachment 2) states both parties are agreeable to making the proposed amendments effective June 1st, 2013, the amended agreement will be effective beginning with the 2013-14 water year which begins on November 1, 2013. In addition to renegotiating the terms of the water sharing agreement, both parties have spent considerable time reaching consensus on the proposed agreement for the sale of some of the excess water treatment capacity at the Fort Collins Utilities water treatment facility (WTF). The WTF was last expanded prior to the significant conservation efforts of the past decade which have resulted in the WTF treatment capacity of 87 MGD being at least 20 MGD above Fort Collins Utilities expected demand at build out in 2035 (see attachment 3). The proposed amendment for the sale to FCLWD of up to 5 MGD of treatment capacity provides Fort Collins Utilities customers a significant source of revenue to offset future operating expenses at the WTF and allows for future capital improvements to the existing facilities. The terms of the agreement do not involve the transfer of raw water rights as FCLWD is acquiring 5 MGD of treatment capacity only. Any raw water treated at the WTF for FCLWD through this agreement will result in the transfer of the same amount of raw water to Fort Collins Utilities through the Colorado-Big Thompson’s Horsetooth Reservoir. The associated plant investment fee (PIF) is $12.6M for 5 MGD of treatment capacity. FCLWD has asked the City to allow it to pay for the PIF associated with 1 MGD, or $2,520,000, upon the agreement becoming effective and to amortize the remaining PIF for 4 MGD, or $10,600,000, over 20 years at 5% interest resulting in monthly payments of $66,524, or $798,282 annually. In addition to the PIF, any water that is treated and delivered through this agreement to FCLWD will include treatment charges of $2.1093 per thousand gallons inclusive of payment in-lieu of taxes along with the transfer of an equal amount of Colorado-Big Thompson Project (CBT) water from FCLWD to Fort Collins Utilities. FCLWD has requested the option to purchase an additional 5 MGD of treatment capacity from the WTF under the same terms. While Fort Collins Utilities is not agreeing to the right of first refusal for this additional 5 MGD, Fort Collins Utilities will work closely with FCLWD to ensure FCLWD is aware of how much excess capacity exists at the WTF in the future. 350 of 433 October 1, 2013 -3- ITEM 4 FINANCIAL / ECONOMIC IMPACTS The financial impact of the proposed amendment affecting the sharing of water between the two parties is difficult to quantify as it depends greatly on the annual variability in water demand. Monthly imbalances requiring settlement are likely in the irrigation season (May - August) when FCLWD has historically taken more water than it has returned to Fort Collins Utilities. Thus, amending the agreement to have monthly rather than annual settlements may increase the cost of water for FCLWD customers as it will no longer allow FCLWD to effectively use this agreement to meet its summer peak demand through the use of treatment capacity it has not invested in creating. Correspondingly, it may offset some of the indirect treatment costs currently paid by Fort Collins Utilities customers through the monthly settlement of any imbalance. The financial impacts of the proposed agreement for the sale of excess treatment capacity also depend on the annual variability in the demand for water with the exception of the plant investment fee. The budget for 2013-14 assumed an average annual collection of $650,000 in plant investment fees. In addition to the initial payment of $2,520,000 for 1 MGD of capacity, the annual payments associated with amortizing the purchase of the remaining 4 MGD of treatment capacity is $798,282. Thus, amortizing the plant investment fee over 20 years will result in significantly increasing the amount of capital available annually for investment in renewing the WTF infrastructure. ENVIRONMENTAL IMPACTS If the proposed sale of excess treatment capacity is not entered into by both parties, the increased demand for treated water by FCLWD may require the expansion of the SCFP or the construction of a new water treatment facility. The potential environmental impacts of either of those solutions to meet FCLWD’s growing demand for treated water would at a minimum be deferred by several years through the proposed sale. BOARD / COMMISSION RECOMMENDATION At its June 20, 2013 meeting, the Water Board voted unanimously to recommend approval of the amendments to the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District. (Attachment 4) ATTACHMENTS 1. Existing FCLWD Intergovernmental Agreement for the Delivery of Potable Water January 1999 2. FCLWD Response Letter to Proposed Amendments to Existing Water Share Agreements 3. Internal Memo on WTF Excess Capacity at Build-out in 2035 4. Water Board minutes, June 20, 2013 5. Powerpoint presentation 351 of 433 352 of 433 353 of 433 354 of 433 355 of 433 356 of 433 357 of 433 358 of 433 359 of 433 360 of 433 361 of 433 362 of 433 363 of 433 364 of 433 365 of 433 366 of 433 367 of 433 368 of 433 369 of 433 370 of 433 371 of 433 372 of 433 373 of 433 Attachment 3 1 M E M O R A N D U M DATE: September 18, 2012 TO: Brian Janonis, Utilities Executive Director Mike Beckstead, Chief Financial Officer City of Fort Collins Kevin Gertig, Water Resources / Treatment Operations Manager Lisa Voytko, Water Production Manager FROM: Donnie Dustin, Water Resource Manager Lance Smith, Strategic Financial Planning Manager RE: Updated estimation of excess capacity at the Water Treatment Facility in 2035 The Water Treatment Facility (WTF) Master Plan reviews the plant capacity, including future demands, on a five year basis. The excess capacity should be determined and re‐assessed for each update of the Plant Investment Fees. The available capacity is also important for evaluating potential water sales and water share agreements so the impact of any such agreements on long‐term planning is understood beforehand. The WTF currently has a maximum daily capacity of 87 million gallons per day (MGD). As the graph below shows, peak daily demand has declined in recent years from it previous peak in 1997. This is a result of the decrease in gallon per capita water usage following the water restrictions in 2003 and the subsequent water conservation programs implemented by the City. This memo summarizes the analysis used to determine the current projection of excess capacity at build‐out in 2035. Highest Daily Production (MG) 0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 The projection is a straight forward calculation that hinges on three variables: population being served, annual average gallons (used) per customer per day (GPCD) and capacity factor (or ratio of the peak day demand to the average daily demand). Each of these parameters has been 374 of 433 2 estimated with upper and lower boundaries using a triangular distribution. The capacity factor, for example, is estimated to fall somewhere between 2.0 and 2.75 with an expected value of 2.35. Analytically, the capacity factor and the GPCD are the most significant variables and are correlated in the modeling. The excess capacity is then determined through a Monte Carlo simulation and the resulting excess capacity is shown in blue in the graphs below. The estimated excess capacity has a mean value of 24 MGD with a lower bound estimate of 15 MGD (which represents the 10% level of the cumulative distribution). The amount of treatment plant capacity used by Fort Collins includes the 5.82 MGD of capacity owned by a single large customer and the capacity required to serve the West Fort Collins Water District, but does not include the 2 MGD of capacity required for the sales agreement with the Fort Collins – Loveland Water District. So, 2 of the 24 MGD are already assigned to a water sale agreement. Any other water sale agreements the City may enter into in the future, as well as any reserve capacity Fort Collins Utilities determines should be held, will need to be accommodated within the remaining 22 MGD. Water sales agreements include a plant investment fee (PIF) for the purchase of plant capacity. Water sharing agreements do not include a PIF and, therefore, are on an as available basis and are not included here either. 375 of 433 3 It was not anticipated that the City’s water use (in GPCD) would be so much lower in 2012 than it was prior to the last plant expansion in 1999. However, based on the City’s recent water use, this 24 MGD of excess capacity is expected to exist through 2035. As such, any opportunity to sell some of this excess capacity to other water districts or municipalities allows for some of the capital investment in the water treatment facility to be recovered outside of the rate base. The PIF associated with any such sale should be set aside just like any other PIF for future capital investment. The incremental revenue from the water sales can be utilized for operational costs, thereby reducing the fixed O&M costs being recovered from the rate base. 376 of 433 Attachment 4 Excerpt from Approved Water Board Minutes – June 20, 2013 Intergovernmental Agreements with Fort Collins Loveland Water District Mr. Haukaas introduced the item and introduced Strategic Financial Planning Manager Lance Smith. For the past year, staff has been negotiating with Fort Collins Loveland Water District (FCLWD) to restructure the existing water sharing agreement and to enter into a new water sales agreement. There are two separate agreements:  Amending existing water sharing agreement “Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District”  Entering into a new sales agreement “Intergovernmental Agreement for the Sale of Potable Water with FCLWD” Mr. Smith presented information on the Current Water Sharing Agreement:  In effect since 1999  Intended to allow FCLWD to lease transmission capacity from Fort Collins Utilities (FCU) to convey water to FCLWD  The current daily limit is 9 mgd. The current annual limit is 1.25 billion gallons.  Any imbalance less than 2 percent of annual amount conveyed may be carried over from one year to the next. Mr. Smith presented a graph showing the monthly imbalance for the current water sharing agreement from November 2010 through October 2012. The proposed daily limit would increase to 12 mgd. The proposed annual limit would increase to 1.75 billion gallons. Benefits of Amended Agreement  Eliminates imbalance being reduced in shoulder months thereby improving utilization of water rights portfolio  Eliminates possibility of settlement below cost of treatment and without raw water  Provides compensation for use of excess treatment capacity  Reconfirms cooperation between water providers Mr. Smith presented information on the proposed Water Sales Agreement. This is in addition to the Water Sharing Agreement. The actual water demand will vary up to 5 million gallons per day. The rate includes the total cost of treatment. FCU will receive raw water back the month after treated water is delivered to FCLWD. Benefits of Water Sales Agreement  Increases regional utilization of existing infrastructure  Allows for FCU to recover previous investment in excess treatment capacity  Provides consistent incremental revenue stream for capital improvements Highlights from the discussion:  A board member asked for clarification on the daily limit of 5 mgd. Mr. Smith stated the daily limit is the buying capacity at the plant. All water will flow through the Utilities transmission system. 377 of 433 Attachment 4  A board member inquired about the stipulation on the proposed amendment for carryover. Mr. Smith stated this is part of the proposed amendment on a monthly basis.  A board member asked about the water quality between the two plants. Water Production Manager Lisa Voytko stated there is some chlorine residual in the water pushed back to the Utilities plant. There are some differences in water quality.  A board asked for the number of individuals serviced by Fort Collins Utilities. Mr. Haukaas stated Utilities services approximately 34,000 taps and approximately 80,000 to 90,000 individuals. This is between one-half and two-thirds of the total population of Fort Collins. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Board Member Brown moved that the Water Board recommend to City Council to approve the Water Enterprise Fund amending the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District as presented to the Fort Collins Water Board. Board Member Garner seconded the motion. 378 of 433 1 Intergovernmental Agreements with Fort Collins Loveland Water District October 1, 2013 ATTACHMENT 5 379 of 433 2 Agenda • Existing Water Sharing Agreement • Why it needs to be changed • What is being proposed to be changed • Proposed new agreement for the sale of excess treatment capacity • Why excess capacity exists • What is being proposed to utilize it more 380 of 433 3 Existing Water Sharing Agreement - Amended and Restated Intergovernmental Agreement for the Delivery of Potable Water 381 of 433 4 Why it needs to be changed • In effect since 1999 • Intended to allow FCLWD to lease transmission capacity from the Water Utility to convey water to FCLWD • This is what is meant by “water sharing” • Specifies upper limit on water being shared, delivery points and annual settlement Limit exceeded by over 100% in 2012 Additional delivery points exist today Impacts utilization of water rights portfolio Fixed rate below the cost of treatment 382 of 433 5 Monthly Water Sharing Imbalance ‐200 ‐150 ‐100 ‐50 0 50 100 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Monthly Imbalance (11/2010 ‐ 10/2012) Water owed to FCU by FCLWD Water owed to FCLWD by FCU FCLWD is utilizing Fort Collins Utilities excess treatment capacity to meet its summer demand and returning water to FCU the rest of the year. Millions of gallons 383 of 433 6 Term Currently Proposed Daily Limit 9 MGD Annual Limit 1.25 billion gallons Settlement annually * Rate per thousand gallons $0.36 Raw Water none * Any imbalance less than 5% of the annual amount conveyed may be carried over from one year to the next. What is being proposed to be changed 12 MGD 1.75 billion gallons monthly (1) (1) Any imbalance less than 12 MGD may be carried over to the next month. $1.3500 ‐ $2.0338 (2) (2) It is being proposed that the rate is stepped into over 3 years; rates here include payment in‐lieu of taxes CBT monthly 384 of 433 7 Benefits of proposed changes • Eliminates imbalance being reduced in shoulder months thereby improving utilization of water rights portfolio • Eliminates possibility of settlement below cost of treatment and without raw water • Provides compensation for use of excess treatment capacity 385 of 433 8 Proposed new agreement for the sale of excess treatment capacity – INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICE CAPACITY 386 of 433 9 Why excess capacity exists – part 1 Treatment capacity was increased in 2000 due to demands in 1997 and 1998. 387 of 433 10 Why excess capacity exists – part 2 0 50 100 150 200 250 1996 1998 2000 2002 2004 2006 2008 2010 Gallons Per Capita Per Day (GPCD) City of Fort Collins Treated Water Use Average Daily Use (GPCD) Normalized Average Daily Use (GPCD) Prior to 2002 GPCD was around 200. After 2000 it has been around 150. 388 of 433 11 Why excess capacity exists • Increased treatment capacity in 2000 due to increased demand by 13 MGD • Water conservation efforts resulted in per capita usage decreasing by more than 20% since 2000  At build-out in 2035 it is expected that the WTF will have 22 million gallons of excess treatment capacity. 389 of 433 12 What is being proposed to utilize it more Term Proposal Comment Daily Treatment Limit 5 MGD Actual water treated will vary up to 5 million gallons per day Rate per thousand gallons $2.1093 Cost of service based rate including transmission costs to be adjusted annually Raw Water CBT monthly FCU will receive raw water back the month after treated water was delivered to FCLWD Plant Investment Fee $12.6M FCLWD is requesting 80% of the PIF to be amortized over 20 years 390 of 433 13 Benefits of Water Treatment Service Capacity Agreement • Increases regional utilization of existing infrastructure • Allows for the Water Utility to recover previous investment in excess treatment capacity • Provides consistent incremental revenue stream for capital improvements and operating expenses 391 of 433 14 Questions 392 of 433 - 1 - RESOLUTION NO. 008 OF THE BOARD OF THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE AUTHORIZING THE PRESIDENT OF THE BOARD TO EXECUTE AN AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS FOR THE DELIVERY OF POTABLE WATER WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (the “Soldier Canyon IGA”) with the East Larimer County Water District (“ELCO”) and the North Weld County Water District (“NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHER EAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (the “Soldier Canyon Treatment Plant”); and WHEREAS, the City and the District, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the City and the District have negotiated, and are presenting for approval by their respective governing bodies an Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and 393 of 433 - 2 - WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the City and the District have negotiated the terms and conditions set forth in the Intergovernmental Agreement for Treated Water Service, attached hereto as Exhibit “A” and incorporated herein by this reference (the “Agreement”); and WHEREAS, in addition to updating and clarifying numerous aspects of the Water Delivery Agreement, the Agreement removes Soldier Canyon from party status, and provides that the District is responsible for ensuring that the water delivery obligations of the District are met; and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, Article XII, Section 6 of the Charter provides that the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees or charges for water and electricity, as will produce revenues sufficient to pay the cost of operation and maintenance of the utilities in good repair and working order, and for other enumerated purposes; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and 394 of 433 - 3 - WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE that the Board hereby approves the Agreement, and authorizes the President of the Board to execute the Agreement on behalf of the City Enterprise, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Resolution. Passed and adopted at a regular meeting of the Board of the City of Fort Collins Water Utility Enterprise held this 1st day of October, A.D. 2013. CITY OF FORT COLLINS, COLORADO, WATER UTILITY ENTERPRISE Mayor, Ex-Officio President ATTEST: City Clerk, Ex-Officio Secretary 395 of 433 Amended and Restated Water Delivery Agreement September 25, 2013 1 AMENDED AND RESTATED INTERGOVERNMENTAL AGREEMENT FOR THE DELIVERY OF POTABLE WATER This Amended and Restated Intergovernmental Agreement for the Delivery of Potable Water (“Water Delivery Agreement”) is made and entered into this 13th day of September, 2013, effective as of November 1, 2013, by and between the CITY OF FORT COLLINS, a Colorado municipal corporation, (hereinafter referred to as “the City”), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, an enterprise of the City (hereinafter referred to as “the City Enterprise”), the FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), and the FORT COLLINS- LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”) (all collectively referred to as the “Parties”). W I T N E S S E T H : WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water EXHIBIT A Amended and Restated Water Delivery Agreement September 25, 2013 2 transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995 (hereinafter referred to as “the Soldier Canyon IGA”), with the East Larimer County Water District (hereinafter referred to as “ELCO”) and the North Weld County Water District (hereinafter referred to as “NWCWD”); and WHEREAS, the Soldier Canyon IGA by its terms created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHEREAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (hereinafter referred to as “the Soldier Canyon Treatment Plant”); and WHEREAS, pursuant to C.R.S. Section 29-1-203(1), governmental entities in Colorado are authorized to cooperate or contract with one another to provide any function, service or Amended and Restated Water Delivery Agreement September 25, 2013 3 facility lawfully authorized to each of the cooperating or contracting governmental entities; and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) (both of which, together with this Agreement, are sometimes referred to collectively as the “Water Agreements”), to reflect the current needs and commitments of the parties; and Amended and Restated Water Delivery Agreement September 25, 2013 4 WHEREAS, the Water Agreements specify certain volumes, prices and delivery points that apply for the sharing and sale of potable water as set forth therein; and WHEREAS, in order to update the terms of service for the delivery of potable water, the parties have negotiated the terms and conditions set forth herein, which the parties agree amend and restate the Water Delivery Agreement and, to the extent of any conflict, amend and supersede the Water Sales Agreement; and WHEREAS, it is the intent of the parties, with the consent of Soldier Canyon, to remove Soldier Canyon as a party to the Water Delivery Agreement. NOW, THEREFORE, in consideration of the parties’ mutual promises and agreements contained herein, and other good and valuable consideration, the receipt and accuracy of which are hereby acknowledged, the parties hereto agree as follows: 1. Term of Agreement. The obligations of the parties under this Agreement shall be perpetual in duration and shall not expire unless terminated as provided in paragraph 10 or 11 below. 2. Delivery of Potable Water to the District. A. It is the understanding of the parties that due to the configuration of the District’s Transmission Facilities, and the manner in which potable water flows into the District’s System from the City’s Transmission Facilities, it is not necessary for the District to request deliveries from the City. Instead, through its operations, the District will coordinate with the City for the normal operation of its System so as to allow for delivery of potable water from the City’s System to the District’s System on an ongoing basis, at levels consistent with the terms of this Agreement and in accordance with the terms and conditions set forth herein. The District will Amended and Restated Water Delivery Agreement September 25, 2013 5 notify the City in advance of any infrastructure or operational changes in the District’s System the affect the interconnection of the systems covered under this Agreement, except in the event of emergency circumstances, in which case the District shall notify the City as early as reasonably possible of the emergency and related System changes. B. The City shall only be obligated to deliver water to the District to the extent it legally and physically has surplus potable water available after meeting all the needs of the customers of the City Water Utility and provided that it is reasonably practicable for the City to operate its System so as to provide water to the delivery points as requested and as specified in this Agreement; C. In no event, however, shall the City be obligated under this Agreement to deliver to the District more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year (a “Water Year”, for purposes of this Agreement, shall mean November 1 of a year to October 31 of the following year). Any deliveries under the Water Sales Agreement shall be accounted for before the application of the charges and delivery limits under this Agreement. Any deliveries made in excess of the deliveries provided for in this Agreement, and all deliveries to the Harmony Meter Station and the Fossil Ridge Meter Station, as defined in the Water Treatment Agreement, shall be considered deliveries under the Water Treatment Agreement. Deliveries under the Water Sales Agreement or the Water Treatment Agreement shall be separately accounted for and invoiced in accordance with the applicable terms and conditions, and shall be subject to the limitations set forth Amended and Restated Water Delivery Agreement September 25, 2013 6 therein; and D. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points: 1. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); 2. The existing connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). 3. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); 4. The existing connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way and Timberline Road (the “Timberline Meter Station”); and 5. A new connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the northwest corner of the intersection of Ziegler Road and Rock Creek Amended and Restated Water Delivery Agreement September 25, 2013 7 Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”). 3. Delivery of Potable Water to the City. It is the understanding of the Parties that the City’s need for delivery of potable water from the District has generally declined over time relative to the District’s need for potable water from the City. The Parties do not anticipate that the City will request water deliveries from the District to exceed any amounts beyond that necessary to offset or balance deliveries to the District under this Agreement. To the extent that the City desires that the District deliver potable water to the City, the City shall specifically request such delivery and designate the date, location and amount of water to be delivered, and the District shall deliver the potable water as requested, subject to the limitations set forth herein. The District shall only be entitled to credit for water requested by the City and actually delivered by the District pursuant to a City request. A. It is the understanding of the Parties that unplanned deliveries of water into the City’s Transmission Facilities have the potential to disrupt the functioning of the City’s System and operation of the City’s Water Treatment Plant. Water deliveries to the City other than those requested have the potential to disrupt the operation of the City’s Treatment Plant, and are not permitted. In the event that deliveries from the District to the City begin to exceed that necessary to balance previous deliveries from the City to the District, FCLWD shall immediately inform the Soldier Canyon Treatment Plant to reduce production into the Transmission Systems to a level that does not create a surplus to the City. B. In responding to the City’s request for the delivery of water, the District shall only be obligated to honor the City’s request to the extent it legally and physically has Amended and Restated Water Delivery Agreement September 25, 2013 8 surplus potable water available after meeting all the needs of its customers and provided that it is reasonably practicable for the District to operate its System so as to provide the water to the delivery points as requested and as specified in this Agreement. C. In no event, however, shall the District be obligated under this Agreement to deliver to the City more than twelve (12) million gallons of potable water in any given day or more than 1.75 billion (1,750,000,000) gallons of potable water in any Water Year; and D. For the purposes of water deliveries under this Agreement, all water deliveries from the District to the City shall be at one of the following delivery points: 1. The Cross-Tie; and 2. The Overland Pump Station. 4. Compensation for Water Delivered. No more than ten (10) days after the end of every month in each Water Year, and no more than fifteen (15) days after the end of every Water Year, for all annual charges, the City and the District shall perform an accounting to determine the amount of potable water delivered by each party to the other during the applicable billing period. The parties acknowledge and agree that the rates and charges established pursuant to this paragraph 4 incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. The charges shall be as set forth herein below, adjusted to exclude deliveries under the Water Sales Agreement, as described in paragraph 5 of the Water Sales Agreement, provided that the Water Sales Agreement remains in effect. No deliveries to the Harmony Meter Station or the Fossil Ridge Meter Station, as defined in the Water Treatment Amended and Restated Water Delivery Agreement September 25, 2013 9 Agreement, shall be considered deliveries under this Agreement or under the Water Sales Agreement. A. The District shall pay annual transmission charges to the City for delivery of water under this Agreement. 1. The District Enterprise shall pay annual transmission charges, as follows: a. Transmission charges at a rate of Six Thousand Seven Hundred and Fifty Dollars ($6,750.00) for each million gallons, or portion thereof, delivered to the Taft Hill Pumping Station on the day of the highest peak delivery during the preceding twelve (12) month period; and b. Transmission charges at a rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Ziegler Meter Station on the day of the highest peak delivery during the preceding twelve (12) month period; and c. Transmission charges at rate of Fourteen Thousand Seven Hundred and Fifty Dollars ($14,750.00) for each million gallons, or portion thereof, delivered to the Timberline Meter Station, on the day of the highest peak delivery during the preceding twelve (12) month period. 2. If the peak day for any of the above connections occurs on the same day that the District exceeds 12 million gallons of potable water delivered from the City, the excess over 12 million gallons, which will be charged at the Amended and Restated Water Delivery Agreement September 25, 2013 10 rate in the Water Treatment Agreement (which includes transmission charges) will be deducted from the peak day calculation. 3. No less frequently than after each Water Year, the City shall invoice the District Enterprise for the total transmission charges under this Agreement and the District Enterprise. In the City’s discretion, the City may from time to time modify the frequency of billings and payment of the transmission charges by providing no less than two (2) months advance written notice to the District. B. For all water delivered under this Agreement, in any given month within a Water Year that the respective amounts requested by and delivered to each of the parties differ by no more than twelve million (12,000,000) gallons (the “Carryover Limit”), then the calculation of applicable overage charges under this subparagraph B will be carried over and incorporated into the calculation and related billing for overage charges for the succeeding month. In any month that the respective amounts requested by and delivered to each of the parties, adjusted by any carryover from the preceding month as set forth above, differ by more than the Carryover Limit, the party receiving the greater amount (the “Owing Party”) shall owe this difference to the other party (the “Owed Party”) compensation for the difference between the amount delivered and amount received by that party (the “Overage”) as described in paragraph C below: C. It is the intent of the Parties to adjust the rate payable for an Overage over approximately a three year period. The City is projecting rate increases of 4% annually over the next several years. The rate shall become equal to the full Amended and Restated Water Delivery Agreement September 25, 2013 11 treatment charges of the City beginning in calendar year 2017. For deliveries in all calendar years after 2017, the rate for overage charges shall be adjusted annually on a calendar year basis at a rate consistent with the overall rate increase to the entire customer base of the City. 1. The schedule to step into the full rate shall be as follows: a. For deliveries in the remainder of calendar year 2013 and the full calendar year 2014, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Thirty-Five and Zero Hundredths Cents ($1.3500) per thousand gallons of metered flows. b. For deliveries in calendar year 2015, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of One Dollar and Sixty-Nine and Twenty Hundredths Cents ($1.6920) per thousand gallons of metered flows. c. For deliveries in calendar year 2016, treatment charges shall be due from the Owing Party to the Owed Party on the Overage calculated at the rate of Two Dollar and Three and Thirty-Eight Hundredths Cents ($2.0338) per thousand gallons of metered flows. 2. Such compensation shall be paid within thirty (30) days after the issuance of the related invoice by the Owed Party and it shall be paid by the City Enterprise or the District Enterprise, as applicable, solely from the net revenues of their respective water utilities. D. Financial obligations of the City in this paragraph 4 are intended and deemed to be Amended and Restated Water Delivery Agreement September 25, 2013 12 the legal obligation of the City Enterprise, and financial obligations of the District in this paragraph 4 are intended and deemed to be the legal obligation of the District Enterprise. E. It is the intent of the parties that overages or imbalances in water delivery amounts will be reconciled on a monthly basis, and no balances will be carried forward from Water Year to Water Year. 5. Water Quality. All potable water delivered to the City by the District and by the District to the City under this Agreement shall meet or exceed all quality standards for potable water that are required by the Environmental Protection Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health and Environment (hereinafter referred to as “the CDPHE”)(hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the party delivering the water up to the point of delivery and upon the party receiving the water after the point of delivery. In the event the EPA CDPHE imposes a water quality standard on the City or the District that is stricter than the standard required of the other, each party shall be required to meet that stricter standard for all potable water it delivers under this Agreement. In the event the City or the District discovers that any water delivered, being delivered or to be delivered by it under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. Regardless of the foregoing, if at any time and for any reason the City or the District has a good faith concern about whether the potable water to be delivered or being delivered to it under this Agreement meets all of the Water Quality Standards, it may refuse Amended and Restated Water Delivery Agreement September 25, 2013 13 to accept such water. Such refusal shall not be considered as a breach of or default under this Agreement. The City and the District further agree to notify the other party in writing of any proposed change to their respective water treatment processes before implementing such change if it could affect the quality of potable water delivered under this Agreement. 6. Metering and Infrastructure. In order to accurately account for the potable water delivered under this Agreement, metering, recording and telemetry devices shall be installed and maintained at the points of delivery specified in this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation Amended and Restated Water Delivery Agreement September 25, 2013 14 said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Water Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds the allowed twelve million (12,000,000) gallons, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection systems. 7. Maintenance and Repairs. If the City or the District anticipates that any scheduled maintenance or repair of its respective facilities could significantly interfere with the delivery of potable water under this Agreement, that party shall give the other party, if reasonably practicable, at least seven (7) calendar days prior written notice of the scheduled maintenance or repairs. Also, when reasonably practicable, the City and the District shall attempt to schedule such maintenance and repairs during periods of low demand by the other party for potable water under this Agreement. If, however, an unscheduled interruption of service under this Agreement occurs and in order to restore such service it is necessary to make repairs to the affected facilities, the party whose facilities are affected shall promptly notify the other party of the problem and proceed with due diligence to make the needed repairs. 8. District’s Obligations with respect to Soldier Canyon Filter Plant (Soldier Canyon). The parties acknowledge and agree that the District may perform its obligations under this Agreement through Soldier Canyon to the extent they involve or relate to the delivery of water to Amended and Restated Water Delivery Agreement September 25, 2013 15 the City, including, without limitation: (a) satisfying the Water Quality Standards and the testing, monitoring and reporting requirements and standards set forth in paragraph 5, above; (b) furnishing, installing and maintaining metering, recording and telemetry devices at the Soldier Canyon Treatment Plant pursuant to paragraph 6, above; and (c) physically controlling the delivery of water to the City in accordance with paragraph 3, above., provided, however, that the District will remain responsible for satisfactory performance of its obligations as a condition of the enjoyment by the District of the benefits of this Agreement. 9. Future Cooperative Intergovernmental Agreements. The parties acknowledge that the City and the District are currently in the process of evaluating opportunities for future coordination, collaboration and shared services in order to provide efficient and cost-effective services to their respective customers. Accordingly, the parties acknowledge that the arrangements set forth in this Agreement may be superseded or modified in the future to reflect the outcome of those efforts. 10. Termination for Breach. Both the City and the District may terminate this Agreement upon a material breach by the other party of any term or condition of this Agreement if such breach continues for a substantial and unreasonable period of time, but in any event if the breach has continued for a period of sixty (60) days after receipt by the breaching party from the non- breaching party of a written notice of the existence of such breach. Notwithstanding any provision contained herein to the contrary, in no event shall the City or the District terminate this Agreement if the party at fault proceeds, after receiving said notice, with due diligence to correct or rectify the material breach regardless of the duration of such breach. Termination of this Agreement shall not, however, be the sole remedy of either party and any exercise of this right to terminate shall not preclude the pursuit of any other remedy available in law or in equity to the Amended and Restated Water Delivery Agreement September 30, 2013 16 non-breaching party. 11. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by either party upon the provision of written notice of termination no less than ten (10) five (5) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. 12. Force Majeure. Notwithstanding anything contained herein to the contrary, it is agreed that in the event and to the extent that fire, flood, earthquake, natural catastrophe, explosion, accident, war, illegality, act of God, or any other cause beyond the control of any party hereto, or strikes or labor troubles (whether or not within the power of the party affected to settle the same) prevents or delays performance by any party to this Agreement, such party shall be relieved of the consequences thereof without liability, so long as and to the extent that performance is prevented by such cause; provided, however, that such party shall exercise due diligence in its efforts to resume performance within a reasonable period of time. 13. Cooperation of the Parties. The City and the District acknowledge that it is difficult to anticipate all of the activities, situations and other factors which may be relevant to them in satisfying their respective obligations under this Agreement. Therefore, the parties acknowledge that it will be necessary for them to cooperate with each other relative to any such unforeseen situations. In furtherance thereof, the City and the District agree that at the end of every Water Year, their representatives shall meet to discuss, in good faith, any modifications that any party Amended and Restated Water Delivery Agreement September 25, 2013 17 believes necessary or appropriate to this Agreement in order to avoid an inequitable situation. In the event that the parties shall mutually agree to any such modification, it shall only be effective if set forth in writing and signed by all of the parties hereto. 14. Governing Law and Enforceability. This Agreement shall be construed in accordance with the laws of the State of Colorado. In addition, the parties hereto recognize that there are legal constraints imposed upon the City and the District by the constitutions, statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by the City Charter and City Code, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall any of the parties hereto exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 15. Indemnification. A. In connection with the City’s performance of its obligations under this Agreement, the City agrees, to the extent permitted by law, to indemnify and hold harmless the District, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the City, or of its officers or employees, provided that such act or omission by the City’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the City agrees, to the extent permitted by law, to indemnify the District, and their respective officers and employees, from all costs and expenses related to defending such liabilities, Amended and Restated Water Delivery Agreement September 25, 2013 18 claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees whether or not any such liabilities, claims and demands are groundless, frivolous, false or fraudulent. B. In connection with the District’s performance of its obligations under this Agreement, the District agrees, to the extent permitted by law, to indemnify and hold harmless the City, and their respective officers and employees, against all liabilities, claims and demands which arise from any negligent act or omission of the District, or of its officers or employees, provided that such act or omission by the District’s officers or employees occurred during the performance of their duties and within the scope of their employment. In addition, the District agrees, to the extent permitted by law, to indemnify the City, and their respective officers and employees, from all costs and expenses related to defending such liabilities, claims and demands, including but not limited to, litigation costs and reasonable attorney’s fees, whether or not such liabilities, claims and demands are groundless, frivolous, false or fraudulent. To the extent the District will rely on third parties, such as Soldier Canyon, to carry out elements of the District’s performance hereunder, the District shall be responsible for ensuring any such third parties provide adequate insurance, warranties and performance to protect the City from loss or damage from any such performance, and the District shall be liable to the City for claims, demands or losses of or by the City that are not cured or remedied by, or for which the District has not secured full recourse for the benefit of the City against such third parties. Amended and Restated Water Delivery Agreement September 25, 2013 19 16. Inspection of Records. Each party agrees to allow each of the other parties to this Agreement to inspect and copy at reasonable times, with reasonable advance notice, all of its relevant records needed by any other party to verify the quantities of potable water delivered under this Agreement and to verify compliance with the standards and requirements of this Agreement. 17. Assignment. This Agreement shall not be assigned by any of the parties hereto without the prior written consent of all the other parties hereto, each in its sole discretion. 18. Default/Remedies/Immunity. If any party fails to comply with the provisions of this Agreement, the other party or parties, after providing written notification to the noncomplying party and upon the failure of the noncomplying party or parties to achieve compliance within thirty (30) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, or actual damages, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party or parties shall be entitled to payment by the defaulting party or parties of actual attorneys’ fees and costs incurred. Nothing in this paragraph 18 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. Amended and Restated Water Delivery Agreement September 25, 2013 20 19. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of law principles, will be applied in the interpretation, execution and enforcement of this Agreement. 20. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: District: District Manager Fort Collins-Loveland Water District 5150 Snead Dr. Fort Collins, CO 80525 City: Utilities Executive Director City of Fort Collins P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 21. Complete Agreement. To the extent provided herein, this Agreement supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. Amended and Restated Water Delivery Agreement September 25, 2013 21 22. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 23. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 24. Waiver. No waiver or delay of enforcement by any of the parties hereto of any of the terms and conditions of this Agreement shall be deemed to be or shall be construed as a waiver of any other term or condition, nor shall a waiver of any breach of this Agreement be deemed to constitute a waiver of any subsequent breach of the same provision of this Agreement. 25. Construction. This Agreement shall be construed according to its fair meaning and as if it was prepared by all the parties hereto and shall be deemed to be and contain the entire agreement between the parties hereto. There shall be deemed to be no other terms, conditions, promises, understandings, statements or representations, expressed or implied, concerning this Agreement, unless set forth in writing and signed by all of the parties hereto. Paragraph headings in this Agreement are for convenience of reference only and shall in no way define, limit or prescribe the Amended and Restated Water Delivery Agreement September 25, 2013 22 scope or intent of any provision of this Agreement. 26. Severability. If any provision of this Agreement, or the application of such provision to any person, entity or circumstance, shall be held invalid, the remainder of this Agreement, or the application of such provision to persons, entities or circumstances other than those in which it was held invalid, shall not be affected. 27. Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, as of November 1, 2013. IN WITNESS WHEREOF the Parties have each executed this Agreement as of the date and year first above written. THE CITY OF FORT COLLINS, COLORADO, A Municipal Corporation ATTEST: By: Karen Weitkunat, Mayor ___________________________ City Clerk APPROVED AS TO FORM: ____________________________ Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE, An Enterprise of the City ATTEST: By: Karen Weitkunat, President ___________________________ City Clerk Amended and Restated Water Delivery Agreement September 25, 2013 23 FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: _______________, President ___________________________ _______________, Secretary FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: ___________________, President ___________________________ ________________, Secretary By its signature below, the Soldier Canyon Filter Plant agrees that it is no longer a party to this Agreement and has no further rights or responsibilities hereunder. SOLDIER CANYON FILTER PLANT, A Governmental Entity Created by Intergovernmental Agreement ATTEST: By: _____________________, President ___________________________ ___________________, Secretary - 1 - RESOLUTION NO. 009 OF THE BOARD OF THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE AUTHORIZING THE PRESIDENT OF THE BOARD TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICES WITH THE FORT COLLINS-LOVELAND WATER DISTRICT, THE FORT COLLINS-LOVELAND WATER DISTRICT ENTERPRISE, AND THE CITY OF FORT COLLINS WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water utility which acquires, treats, transmits and distributes potable water (hereinafter referred to as “the City Water Utility”); and WHEREAS, in doing so, the City owns and the City Water Utility operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (hereinafter referred to as “the City’s Treatment Plant”); and WHEREAS, the City Water Utility distributes potable water to its customers through a variety of water transmission facilities located within the City (hereinafter referred to as “the City’s Transmission Facilities”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water utility which distributes potable water through a variety of water transmission facilities located within Larimer County, Colorado (hereinafter referred to as “the District’s Transmission Facilities”); and WHEREAS, the City and the District have been exploring the possibility of sharing the use of their respective water facilities in order to avoid expensive duplication of these facilities, as well as to find ways to optimize the use of their respective water resources; and WHEREAS, the City and the District have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999 (“Water Delivery Agreement”), which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers; and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and 419 of 433 - 2 - WHEREAS, it is in the mutual interests of the City and the District to establish updated arrangements for the delivery of potable water by amending and updating the Water Delivery Agreement, to reconcile and coordinate the terms of this Agreement with the Water Sales Agreement, and to separately enter into an Intergovernmental Agreement for Water Treatment Service (“Water Treatment Agreement”) to reflect the current needs and commitments of the parties; and WHEREAS, the terms and conditions pursuant to which the City and the District would exchange potable water are set forth in the AAmended and Restated Intergovernmental Agreement for the Delivery of Potable Water,@ a copy of which is attached hereto as Exhibit AA@ and incorporated herein by reference (the AAgreement@); and WHEREAS, the Agreement provides for its retroactive application to June 1, 2013, incorporating new rates and raw water requirements, and other terms and conditions; and WHEREAS, pursuant to C.R.S. '29-1-203(1), the City and the District are authorized to cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of them; and WHEREAS, Article II, Section 16 of the Charter of the City of Fort Collins (“Charter”) additionally provides that the City Council may, by resolution or ordinance, enter into contracts with other governmental bodies to furnish governmental services and make charges for such services, or enter into cooperative or joint activities with other governmental bodies; and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to the Agreement solely for the purpose of entering into any multi-year fiscal obligation imposed under this Agreement; and WHEREAS, the City Enterprise is authorized in Section 26-43 of the Code of the City of Fort Collins to enter into contracts relating to the City’s water system. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF THE CITY OF FORT COLLINS WATER UTILITY ENTERPRISE that the Board hereby approves the Agreement, and authorizes the President of the Board to execute the Agreement on behalf of the Water Utility Enterprise, in substantially the form attached hereto as Exhibit “A”, together with such modifications and additions as the City Manager, in consultation with the City Attorney, determines necessary and appropriate to protect the interests of the City or further the purposes of this Resolution. 420 of 433 - 3 - Passed and adopted at a regular meeting of the Board of the City of Fort Collins Water Utility Enterprise held this 1st day of October, A.D. 2013. CITY OF FORT COLLINS, COLORADO, WATER UTILITY ENTERPRISE Mayor, Ex-Officio President ATTEST: City Clerk, Ex-Officio Secretary 421 of 433 IGA FOR WATER TREATMENT September 30, 2013 1 INTERGOVERNMENTAL AGREEMENT FOR WATER TREATMENT SERVICE CAPACITY BETWEEN THE CITY OF FORT COLLINS, COLORADO AND THE FORT COLLINS-LOVELAND WATER DISTRICT This AGREEMENT is entered into made this _____ day of ____________, 2013, by and between the CITY OF FORT COLLINS, Colorado, a home rule municipality (the "City"), the CITY OF FORT COLLINS WATER UTILITY ENTERPRISE (the "City Enterprise") (together referred to hereinafter as "Fort Collins") the FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of Colorado, (hereinafter referred to as “the District”), the FORT COLLINS- LOVELAND WATER DISTRICT ENTERPRISE, an enterprise of the District (hereinafter referred to as “the District Enterprise”). Collectively Fort Collins and the District may be referred to herein as “Parties” or each a “Party.” WHEREAS, pursuant to Article XIV, Section 18 of the Constitution of the State of Colorado, Article II, Section 16 of the Charter of the City of Fort Collins, and Section 29-1-203(1) and Section 32-1-1001 of the Colorado Revised Statutes, the Parties may cooperate or contract with one another to provide any function, service or facility lawfully authorized to each of the cooperating or contracting units of government; and WHEREAS, the City is a home rule municipality organized and existing under Colorado law that owns a water system through which it treats, transmits and distributes potable water (the “City Water System”); and WHEREAS, as part of the City Water System, Fort Collins operates a water treatment plant located at 4316 LaPorte Avenue, Fort Collins, Colorado (the “City Treatment Plant”); and WHEREAS, the District is a special district organized and existing under Colorado law that also operates a water system (the “District Water System”) to distribute potable water through a variety of water transmission facilities located within Larimer County, Colorado (“District Transmission Facilities”); and WHEREAS, the City Enterprise and the District Enterprise were created by the City and the District, respectively, in order to comply with the provisions of Section 20, Article X of the Colorado Constitution and Article 45.1 of Title 37 of the Colorado Revised Statutes in order to permit the City and the District, acting through their respective enterprise, to issue revenue bonds and enter into multi-year fiscal obligations in connection with their operation of a water utility; and WHEREAS, the City Enterprise and the District Enterprise are made parties to this Agreement solely for the purpose of entering into any multi-year fiscal obligation required under this Agreement; and IGA FOR WATER TREATMENT September 25, 2013 2 WHEREAS, the District has previously entered into that certain “Amended Intergovernmental Agreement” dated December 9, 1995, (the “Soldier Canyon IGA”) with the East Larimer County Water District (“ELCO”) and the North Weld County Water District (“NWCWD”); and WHEREAS, the Soldier Canyon IGA created Soldier Canyon as a separate governmental entity pursuant to C.R.S. Section 29-1-203; and WHER EAS, the Soldier Canyon IGA provides that Soldier Canyon shall be responsible for the operation, maintenance and management of the water treatment plant located at 4424 LaPorte Avenue, Fort Collins, Colorado, which is jointly owned by the District, ELCO and NWCWD (the “Soldier Canyon Treatment Plant”); and WHEREAS, the parties, together with Soldier Canyon, have previously entered into that certain Intergovernmental Agreement for Delivery of Potable Water, dated January 19, 1999, which provides for the delivery of treated water by the City and the District to each other on demand, as available, to meet day-to-day demands for delivery of potable water to their respective customers, and WHEREAS, the parties to the said Intergovernmental Agreement for Delivery of Potable Water have, as of November 1, 2013, adopted revisions to the same, entitled Amended and Restated Intergovernmental Agreement for Delivery of Potable Water (“Water Delivery Agreement”); and WHEREAS, the City and the District have also previously entered into that certain Intergovernmental Agreement for the Sale and Delivery of Potable Water dated April 16, 2001, as amended on July 11, 2006 (the “Water Sales Agreement”), which Water Sales Agreement provides for the City to sell and deliver potable water to the District in order for the District to provide potable water to District customers in approved subdivisions and developments that have been annexed into the City; and WHEREAS, in addition to the arrangements in the above-described agreements, it is the desire of the District to purchase from Fort Collins the capability to procure water treatment service consistent with Article XII, Section 4 of the Charter of the City of Fort Collins; and WHEREAS, accordingly, the parties have negotiated the terms and conditions set forth in this Intergovernmental Agreement for Treated Water Service. NOW, THEREFORE, in consideration of the promises, the mutual covenants and agreements herein contained, the service to be rendered by Fort Collins and the payments to be made by the District as well as transfer of certain raw water owned by the District to be made by the District to Fort Collins as herein set forth, and the satisfactory performance of all conditions and requirements set forth herein, it is hereby agreed by and between the parties as follows: IGA FOR WATER TREATMENT September 30, 2013 3 1. City Code. All terms and conditions of water treatment service between the District and Fort Collins will be as described in this Agreement and the City of Fort Collins City Code. 2. Term. This Agreement shall be effective as of January 1, 2014 (the “Effective Date”) the date of signing by all parties, and shall continue in effect until terminated in accordance with paragraph 10, hereinafter, by court order or by operation of law. 3. Services Provided. Fort Collins agrees to sell and provide water treatment service to delivery points from the City Water System to the District Transmission Facilities that are described below in paragraph 4. The Parties agree that the District will be solely responsible for any expenses or costs associated with the connections. The provision of such water treatment service by Fort Collins to the District is expressly contingent upon payment by the District for service, transfer of raw water as more fully described in paragraph 8 below, and the District’s compliance with regulatory requirements applicable to the delivery of potable water. Further, any obligation by Fort Collins to provide water treatment service to the District is subject to reductions, restrictions, limitations and surcharges, if any, that the City may establish in the future to manage its water supply or water system capacity that may be imposed on any other customer of the City. 4. Points of Delivery. For the purposes of water deliveries under this Agreement, as well as water sales under the Water Sales Agreement, all water deliveries from the City to the District shall be at one of the following delivery points, as shown on Exhibit A, attached hereto and incorporated herein by this reference: A. The cross-tie connection between the City’s Treatment Plant and the Soldier Canyon Treatment Plant located at the City’s Treatment Plant (the “Cross-Tie”); B. The connection between the District’s Transmission Facilities and the City’s Transmission Facilities located in Fort Collins, Colorado, together with associated pumping facilities, north of the intersection of Elizabeth St and Overland Trail (the “Overland Pump Station”). C. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, at the southeast corner of the intersection of Harmony Road and Taft Hill Road (the “Southwest Delivery Point;” also referred to as the “Taft Hill Pumping Station”); D. The connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southwest corner of the intersection of Willow Springs Way/Kechter Road and Timberline Road (the “Timberline Meter Station”); IGA FOR WATER TREATMENT September 25, 2013 4 northwest corner of the intersection of Ziegler Road and Rock Creek Drive (the “Southeast Delivery Point;” also referred to as the “Ziegler Meter Station”); F. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the southeast corner of the intersection of Ziegler Road and Harmony Road and metered approximately 900 feet to the east (the “Harmony Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. G. A connection between the City’s Transmission Facilities and the District’s Transmission Facilities located in Fort Collins, Colorado, near the Rock Creek Drive entrance to Fossil Ridge High School east of the intersection of Ziegler Road and Rock Creek Drive (the Fossil Ridge Meter Station”), to be constructed pursuant to plans and specifications reasonably satisfactory to the City. 5. Integration with Deliveries Under Existing Agreements. The respective obligations of the District and the City hereunder are independent of deliveries or sales of potable water under existing agreements between Fort Collins and the District. As of the effective date of this Agreement, Fort Collins provides potable water to the District at the delivery points described above in subparagraphs A through E pursuant to the Water Sales Agreement and the Water Delivery Agreement (the “Existing Agreements”). All water delivered to the Harmony Meter Station and the Fossil Ridge Meter Station is deemed to have been delivered under this Water Treatment Agreement. It is the parties’ intent that deliveries of water under the Existing Agreements shall be determined, invoiced and subject to the terms and limitations set forth in those agreements, and that the water treatment services to be provided to the District hereunder shall be supplemental to the deliveries and sales provided thereunder. 6. Maximum service limit. Fort Collins will treat water for the District at a maximum rate of 1.825 billion (1,825,000,000) gallons during any Water Year and not to exceed 5 million (5,000,000) gallons per day. For the purposes of this Agreement, a Water Year is intended to mean the period starting November 1 of a given calendar year and extending through October 31 of the following calendar year. This maximum service limit has been determined based upon the District’s agreement to pay Water Plant Investment Fees as described in paragraph 7 below. The maximum amount of water treatment service identified herein will not increase unless and until, upon the written request of the District, Fort Collins at its sole discretion elects to increase the amount of annual water treatment service, additional plant investment fees and any other applicable fees or charges are paid, and the Parties execute a written addendum to this Agreement. 7. Payment for Service. In exchange for the water treatment services provided to the District as described in paragraph 3, the District shall pay to Fort Collins each of the fees and charges set forth in this Agreement and shall transfer raw water to Fort Collins as more fully described in paragraph 8 below. The fees and charges for water treatment service set forth herein shall be as established by Fort Collins from time IGA FOR WATER TREATMENT September 30, 2013 5 Fort Collins as more fully described in paragraph 8 below. The fees and charges for water treatment service set forth herein shall be as established by Fort Collins from time to time as more fully described below. The initial rates and charges are outlined below. Fort Collins approves its rate modifications in October/November of each year with the effective date the immediately following January 1. Fort Collins shall include the District in all rate adjustment communications provided to other customers and Key Accounts of the Utility. A. The approach used to determine the level for the District’s permanent allocation of water treatment service is based on Water Plant Investment Fees paid by the District. The District shall pay Water Plant Investment Fees at a rate consistent with the fee amount determined to be appropriate by Fort Collins in its annual or semi-annual review of such fees conducted most recent to the time at issue. The Water Plant Investment Fee for the District at the time of execution of this Agreement is $2.52 per gallon of peak day use. Fort Collins’ obligation to provide water treatment services pursuant to this paragraph 7A is contingent upon payment of Water Plant Investment Fees. Payment of such fees will not allow the District to increase the maximum service limit without amendment of this Agreement as described in paragraph 6. B. The Water Plant Investment Fee shall be Twelve million Six hundred thousand dollars ($12,600,000). The District will pay the City Two million Five hundred Twenty thousand dollars ($2,520,000) prior to any deliveries under this Agreement, but in no event later than January 15, 2014upon approval of this agreement. The remainder of the Water Plant Investment Fee, Ten million Eight thousand dollars ($10,080,000) shall be amortized over a period of twenty (20) years at an annual percentage rate of five percent (5%). Payments shall be made on a monthly basis in the amount of Sixty- six thousand Five hundred and twenty-four dollars ($66,524). C. The negotiated rate for all deliveries during calendar year 2013, after the effective date of this Agreement, the District will pay Fort Collins a for water treatment and transmission service israte of $2.1093 per one thousand gallons. Fort Collins may adjust the water treatment service rate for years after 2013 in accordance with the results of any cost of service study Fort Collins may conduct or in accord with overall rate changes made by the City Council of Fort Collins to the entire customer base of the City. The parties acknowledge and agree that the water treatment and transmission charges established pursuant to this subparagraph incorporate surcharges, payments in lieu of taxes, and other similar additional charges at the rates established generally for City Utility customers, which will not be separately charged to the District. D. Fort Collins may apply any other direct and indirect charges for incidental services requested by the District and normally applied for water treatment service as provided in Section 26-712 of the City Code. IGA FOR WATER TREATMENT September 25, 2013 6 1. The quantity delivered through the “Harmony Meter Station” described in Section 4.F. above; 2. The quantity delivered through the “Fossil Ridge Meter Station” described in Section 4.G. above; and 3. The quantity transferred daily under the Water Delivery Agreement in excess of the limits set forth in the Water Delivery Agreement. 8. Additional Requirements for Water Service. As a condition of receiving the water treatment service provided hereunder, the District agrees to transfer water from the Colorado Big-Thompson Project (“CBT”) as follows: A. The District will assign to Fort Collins CBT raw water in an amount equal to the volume of water treated by Fort Collins for the District under this Agreement (the “Raw Water Amount”). The transfer of the Raw Water Amount for each month shall take place no later than ten (10) days after the end of such previous calendar month. B. In the event that Fort Collins or the District have reason to expect a significant change in the District’s level of treated water demand or other extraordinary occurrences affecting water supplies or water demands during the Water Year, the parties will cooperate in an effort to make additional transfers and accomplish any operational adjustments that may need to be made, at no cost to the City. C. All transfers of CBT water shall be made in accordance with rules established by the Northern Colorado Water Conservancy District (“NCWCD”). D. The District agrees that all treated water provided to the District hereunder shall be used in accordance with the applicable rules, policies and other requirements of the NCWCD. 9. Metering/Infrastructure. Metering, recording and telemetry devices shall be installed and maintained at the District’s expense at the points of delivery specified in this Agreement in a manner satisfactory to Fort Collins, so as to accurately account for the treated water provided to the District under this Agreement. The City and the District agree to share with each other the data from their respective metering devices. A. The City may freely inspect each meter and metering point for any delivery point for water under this Agreement in its discretion. The City may provide testing and calibration of meters as it determines necessary to maintain accurate meter readings. B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately IGA FOR WATER TREATMENT September 30, 2013 7 B. The parties acknowledge and agree that metering of flows at each of the delivery points is critical for the effective operation of this Agreement. In the event that a District-owned meter is not properly functioning to accurately measure flows, the parties agree to first attempt to cooperatively determine the flow estimation. If agreement on estimation cannot be reached, the City reserves the right to close or require the District to close the affected connection between the District’s System and the City’s System, until such time as a meter that will accurately measure the flows at that delivery point is installed and operable. C. In order to enhance the efficiency and reliability of the metering of deliveries, the Parties agree that the City may, at its option, install new meters at the delivery points that will measure real-time usage. If installed by the City, upon installation said meters will be operated and maintained by the City. The flow information from these meters will be used for determining the volumes of water delivered to the District and in the water accounting, instead of the water meters currently installed and owned by the District, which will no longer be in use under the Existing Agreements. In the event that a dispute regarding volumes delivered for a monthly or annual billing as to an amount that exceeds 2% of the metered volumes, the City agrees to calibrate the meter at that time (if not in the usual maintenance schedule). The City will provide volume information in real time to the District in a format compatible with the District’s data collection system. In such event the District will no longer be obligated to operate and maintain its own meters in such locations for the purposes of this Agreement. 10. Termination/Transfer. This Agreement shall continue in effect for so long as Fort Collins continues to provide treated water unless and until terminated: 1) by operation of law; or 2) by the District upon the provision of written notice of termination to Fort Collins no less than ten (10) five (5) years in advance of the date of termination; 3) by mutual agreement of the parties or 4) in the event Fort Collins discontinues operation of its treated water system. The parties acknowledge and agree that the obligations of Fort Collins may be assigned or transferred by Fort Collins to any successor-in-interest capable of providing water service consistent with the terms of the Agreement and all applicable laws. In no event shall the District be entitled to a refund of fees or charges paid to Fort Collins hereunder. Capacity of Treated Water purchased by the District at the time of termination shall be adjusted to reflect the sum of amortized payment received by the City. 11. District Information. The District agree to cooperate with Fort Collins to provide such information as Fort Collins may require in order to reconcile the records of Fort Collins and the District, and request information in order to confirm the nature, extent and circumstances of water treatment service utilized or accessed by the District or connected to the Fort Collins water system. The parties acknowledge that all or portions of the information provided hereunder may constitute confidential information pursuant to the Colorado Open Records Act or other applicable law, and agree that Fort Collins shall, as a condition of receipt of such information, protect the same from public disclosure to the extent required by law. IGA FOR WATER TREATMENT September 25, 2013 8 Agency (hereinafter referred to as “the EPA”), the Colorado Department of Public Health and Environment (hereinafter referred to as “the CDPHE”) (hereinafter referred to collectively as “the Water Quality Standards”). Responsibility for ensuring that the Water Quality Standards are met for water delivered under this Agreement shall rest upon the City up to the point of delivery and upon the District after the point of delivery. In meeting the Water Quality Standards, the City and the District agree to comply with all monitoring, testing, reporting and consumer notification requirements established by the EPA and the CDPHE for potable water for their respective systems. In the event the City or the District discovers that any water delivered, being delivered or to be delivered under this Agreement does not meet in any respect the Water Quality Standards, it shall immediately notify the other party of the problem by telephone, followed by written notice of the problem. 13. Force Majeure. Fort Collins shall provide the services as set forth herein, subject to the general requirements applicable to the Fort Collins water system by law, including the Code of the City of Fort Collins, as the same may from time to time be modified or amended. Fort Collins shall not be liable for any failure, default or delay in any service provided for under this Agreement caused by strikes, acts of God, unavoidable accidents or contingencies of any nature whatsoever beyond its control. 14. Default/Remedies. If either party fails to comply with the provisions of this Agreement, the other party, after providing written notification to the noncomplying party and upon the failure of the noncomplying party to achieve compliance within ninety (90) days, may seek all such remedies as are available under Colorado law, including but not limited to termination of this Agreement, actual damages, specific performance and injunctive relief, or forfeiture of investment and all rights by the District to further service by Fort Collins, as applicable, but excluding any exemplary and/or consequential damages. In the event litigation is required to enforce this Agreement, the prevailing party(ies) shall be entitled to payment by the defaulting party of its actual attorneys’ fees and costs incurred. Nothing in this paragraph 14 or any other provision of this Agreement shall, however, be construed as a waiver of the notice requirements, defenses, immunities, and limitations any of the Parties may have under the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq., or any other defenses, immunities, or limitations of liability available by law. The duties and obligations imposed by this Agreement and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to them which are otherwise imposed by law or regulation, and the provisions of this paragraph will be as effective as if repeated specifically in the Agreement in connection with each particular duty, obligation, right, and remedy to which they apply. 15. Applicable Law. The laws of the State of Colorado and rules and regulations issued pursuant thereto, except for choice of laws principles, will be applied in the interpretation, execution and enforcement of this Agreement. Any provision of this Agreement, whether or not incorporated herein by reference, which provides for arbitration by an extra-judicial body or person or which is otherwise in conflict with said laws, rules and regulations will be considered null and void. In addition, the parties IGA FOR WATER TREATMENT September 25, 2013 9 hereto recognize that there are legal constraints imposed upon them by the constitution, statutes, and rules and regulations of the State of Colorado and of the United States, and imposed upon them by their respective governing statutes, charters, ordinances, rules and regulations, and that, subject to such constraints, the parties intend to carry out the terms and conditions of this Agreement. Notwithstanding any other provision of this Agreement to the contrary, in no event shall either of the parties exercise any power or take any action which shall be prohibited by applicable law. Whenever possible, each provision of this Agreement shall be interpreted in such a manner so as to be effective and valid under applicable law. 16. Notices. Other than invoice billings which may be sent by first class mail or electronic mail, any notice, request, demand, consent or approval, or other communication required or permitted hereunder will be in writing and may be personally delivered, or deposited in the United States mail or accepted for delivery by an overnight delivery service, with proper postage and address as follows: To the District District Manager or the District Fort Collins-Loveland Water District Enterprise: 5150 Snead Dr. Fort Collins, CO 80525 To the City: Utilities Executive Director or the City City of Fort Collins Enterprise P.O. Box 580 700 Wood Street Fort Collins, CO 80522-0580 Any party hereto may at any time designate a different person or address for purposes of receiving notice by so informing the other parties in writing. Notice shall be deemed effective upon actual receipt thereof, or three (3) days after being deposited in the United States mail or accepted by an overnight delivery service, whichever first occurs. 17. Complete Agreement. This Agreement, including all exhibits, supersedes any and all prior written or oral agreements and there are no covenants, conditions, or agreements between the parties except as set forth herein. No prior or contemporaneous addition, deletion, or other amendment hereto will have any force or affect whatsoever unless embodied herein in writing. 18. No Third Party Beneficiary. The terms and conditions of this Agreement, and all rights of action relating thereto, are strictly reserved to the parties, and nothing in this Agreement shall give or allow any claim or right or cause of action whatsoever by any other person not included in this Agreement. Any person and/or entity, other than the parties receiving services or benefits under this Agreement, shall be deemed an incidental beneficiary only. 19. No Improper Acts. The signatories aver that to their knowledge, no officer or employee of their respective entities has taken any action in connection with IGA FOR WATER TREATMENT September 25, 2013 10 the negotiation or approval of this Agreement that constitutes a violation of Colorado law, including but not limited to the abuse of fiduciary duty to the people of the State of Colorado, failure to properly disclose any conflict of interest in the service or property described herein, or failure to comply with the requirements of Section 24-18-109 and Section 32-1-902 of the Colorado Revised Statutes, as they may from time to time be amended or renumbered. 20. No Waiver. The waiver or delay of enforcement of one or more terms of this Agreement shall not constitute a waiver of the remaining terms. The waiver or delay in enforcement regarding any breach of this Agreement shall not constitute a waiver of any terms of the Agreement. 21. Relationship of Parties. This Agreement does not create and shall not be construed as creating a relationship of joint ventures, partners, or employer-employee, between the Parties. The Parties intend that this Agreement be interpreted as creating an independent contractor relationship. Pursuant to that intent, it is agreed that the conduct and control of the duties required by the Agreement shall lie solely with each Party respectively, and each Party shall be free to exercise reasonable discretion in the performance of its individual duties under this Agreement. Neither Party shall, with respect to any activity, be considered an agent or employee of the other Party. 22. Modification of Agreement. This Agreement may be modified, amended, changed or terminated, except as otherwise provided herein, in whole or in part, only by an agreement in writing duly authorized and executed by both Parties. No consent of any third party shall be required for the negotiation and execution of any such agreement. 23. Assignment. No transfer or assignment of this Agreement or of any rights hereunder shall be made by either Party without the prior written consent of the other, which consent shall not be unreasonably withheld. 24. Severability. In the event any court of competent jurisdiction shall hold any provision of this Agreement invalid or unenforceable, such holding shall not invalidate or render unenforceable any other provision hereof. 25. Venue For Enforcement Actions. In the event of a dispute between the parties which results in litigation, the exclusive venue for such action shall be the District Court in and for the County of Larimer, State of Colorado. 26. Instruments of Further Assurance. The Parties each covenant that they will do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged, and delivered, such acts, instruments, and transfers as may be reasonably required for the performance of their obligations hereunder. 27. Binding Agreement. The terms, provisions and covenants of this agreement shall be binding upon the parties hereto, their successors and assigns. IGA FOR WATER TREATMENT September 25, 2013 11 IN WITNESS WHEREOF, the said City has caused this agreement to be executed by its Mayor, attested to by its City Clerk with the corporate seal of said City hereunto affixed, the said District have caused this agreement to be executed by its president, and the City Enterprise and the District Enterprise have each cause this agreement to be executed by its respective president, as of the day and year first above written, in duplicate. THE CITY OF FORT COLLINS A Municipal Corporation By: __________________________ Mayor ATTEST: APPROVED AS TO FORM: _________________________ ________________________ City Clerk Deputy City Attorney CITY OF FORT COLLINS WATER UTILITY ENTERPRISE An Enterprise of the City By: __________________________ Enterprise President ATTEST: _____________________ Enterprise Secretary FORT COLLINS-LOVELAND WATER DISTRICT, A Political Subdivision of the State of Colorado ATTEST: By: , President ___________________________ , Secretary IGA FOR WATER TREATMENT September 25, 2013 12 FORT COLLINS - LOVELAND WATER DISTRICT ENTERPRISE, An Enterprise of the District ATTEST: By: , President ___________________________ , Secretary should be enhanced to match quality of MAX stations, and fi t within recommended streetscape palette for Midtown. • Keep parking subordinate by encouraging developments to locate parking behind structures, and use structured parking as an incentive for increased density. The Framework Map The Framework Map (left) is a graphical representation of the high-level design concepts and recommendations of the Midtown Plan. The promenade is envisioned as a grand public space adjacent to MAX to be used solely by bikes and pedestrians. Existing and new development is encouraged to front onto the promenade, thus creating a second entrance for businesses or new residential in the corridor. Midtown Public Workshop image – A “game piece” activity took place at a November, 2012 workshop where residents cut out various conceptual land typologies and placed them on maps to envision what redevelopment scenarios could look like. 170 of 433 • Minor open spaces, e.g., small courtyards, plazas, dining areas, should be distributed throughout the corridor: − Network, accessible to general public and connected to larger pedestrian/bike network. − Built and managed by private owners. Development and Design Principles • Support increased density, particularly near MAX stations. • Locate buildings along street edges and parking on the interior of sites. • Give pedestrian circulation highest priority when designing site layout. • A variety of parcel sizes and development prototypes can and should play a role in the revitalization of Midtown. New development should consist of both large-parcel, mixed-use projects and smaller, nuance site designs that will add to the overall character and charm of the corridor. • New development can be phased to allow funds to be secured and projects to be built realistically over time. • Sidewalks, promenades and other pedestrian paths should be designed to invite their use through thoughtful planning and design. • Incorporate art and creative design elements onto buildings and in other spaces viewed by the public. • Projects should be environmentally sensitive in their site design and layout. • Buildings should maximize energy efficiency and conservation, which includes addressing lighting, ventilation, alternative energy sources, and solar access. Implementation • Implementing the Plan will take proactive efforts, which must also be responsive and react to new opportunities and changing conditions as they arise. • Both the public and private sectors must share in the responsibility of implementation, e.g., funding. Vision Midtown will be a vital corridor with a mix of uses and activities that serve a broad spectrum of the community. It will have a distinct identity that distinguishes it from other parts of the city and should be a destination in its own right. Streets will be inviting to pedestrians, and public art and civic facilities will be located throughout the area. Midtown is envisioned as an urban area with higher densities. It will be an economic generator that is conveniently accessible from abutting residential areas, while continuing to serve the community as a whole. On-site swales act as creative stormwater management techniques and could provide pleasant landscape amenities. Street Street MAX Street Street Street Illustration of a conceptual redevelopment showing direct pedestrian connection to a MAX station, aligning buildings to the streets, and locating parking internally on the site. Plazas could serve as an entryway to residential buildings, or as a resting place for buildings’ employees. They should provide places for people to sit and feel welcoming to the general public, and use natural amenities such as water features and pleasant landscaping. Use outdoor dining areas and sidewalk cafes to animate public space in Midtown. ATTACHMENT 1 169 of 433 to hold AS the IS, City WITH harmless ALL from made and this against information all damage, available. loss, Independent or liability arising verification from any of all use data of contained this map product, herein should in consideration be obtained of by the any City's users having of these liability, products, whether or direct, underlying indirect, data. or consequential, The City disclaims, which and arises shall or not may be arise held from liable these for any map and products all damage, or the loss, use thereof or by any person or entity. Printed: September 16, 2013 Water Main Replacements Buildings Parcels 0 500 1,00F0eet Scale 1:6,000 © ATTACHMENT 1 55 of 433