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Home My WebLink AboutCOUNCIL - COMPLETE AGENDA - 07/19/2011 - COMPLETE AGENDAKaren Weitkunat, Mayor Kelly Ohlson, District 5, Mayor Pro Tem Council Chambers Ben Manvel, District 1 City Hall West Lisa Poppaw, District 2 300 LaPorte Avenue Aislinn Kottwitz, District 3 Wade Troxell, District 4 Cablecast on City Cable Channel 14 Gerry Horak, District 6 on the Comcast cable system Darin Atteberry, City Manager Steve Roy, City Attorney Wanda Krajicek, City Clerk The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Assisted hearing devices are available to the public for Council meetings. Please call 221-6515 (TDD 224-6001) for assistance. REGULAR MEETING July 19, 2011 Proclamations and Presentations 5:30 p.m. A. Proclamation Declaring August as Carcinoid Cancer Awareness Month. B. Proclamation Declaring August 2, 2011as Neighborhood Night Out. C. Proclamation Declaring July 23, 2011 as National Day of the Cowboy. D. Proclamation Declaring July 20, 2011 as Women of Vision Day. E. Proclamation Declaring August 7, 2011 as Sister Mary Alice Murphy and Coworkers Day. Regular Meeting 6:00 p.m. PLEDGE OF ALLEGIANCE 1. CALL MEETING TO ORDER. 2. ROLL CALL. Page 2 3. AGENDA REVIEW: CITY MANAGER 4. CITIZEN PARTICIPATION (limited to 30 minutes) 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 21. 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. Anyone may request an item on this Calendar be “pulled” off the Consent Calendar and considered separately. Agenda items pulled from the Consent Calendar will be considered separately under Item No. 30, Pulled Consent Items. The Consent Calendar consists of: ! Ordinance on First Reading that are routine ! Ordinances on Second Reading that are routine ! Those of no perceived controversy ! Routine administrative actions. 6. Second Reading of Ordinance No. 076, 2011, Appropriating Unanticipated Revenue in the General Fund for the Purchase, Training and Ongoing Maintenance of the E911 and Emergency Dispatch Systems at Fort Collins Police Services Dispatch Center. Larimer Emergency Telephone Authority provides funds to the Fort Collins Police Services to be used for equipment and training to process E911 calls. This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates those funds. 7. Second Reading of Ordinance No. 077, 2011, Appropriating Unanticipated Revenue in the Light and Power, Water and Wastewater Funds for Capital Projects to Relocate Utility Facilities in the Mason Corridor Bus Rapid Transit Project and Transferring Existing Light and Power Appropriations into the Light and Power Utility Relocation Capital Project. This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates capital project funding for the Utilities to relocate existing electric, water and wastewater facilities to accommodate the Mason Corridor Bus Rapid Transit (BRT) Project. Light and Power will also supply power to the bus stations along the corridor. Individuals who wish to make comments regarding items scheduled on the Consent Calendar or wish to address the Council on items not specifically scheduled on the agenda must first be recognized by the Mayor or Mayor Pro Tem. Before speaking, please sign in at the table in the back of the room. The timer will buzz once when there are 30 seconds left and the light will turn yellow. The timer will buzz again at the end of the speaker’s time. Each speaker is allowed 5 minutes. If there are more than 6 individuals who wish to speak, the Mayor may reduce the time allowed for each individual. ! State your name and address for the record. ! Applause, outbursts or other demonstrations by the audience are not allowed ! Keep comments brief; if available, provide a written copy of statement to City Clerk Page 3 8. Second Reading of Ordinance No. 078, 2011, Appropriating Unanticipated Grant and Other Revenue in the Conservation Trust Fund for the Hughes Stadium Disc Golf Course. This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates an $85,000 awarded by Great Outdoors Colorado has awarded for the completion of the Hughes Stadium Disc Golf Course. The project involves the development of an 18-hole disc golf course at Hughes Stadium in conjunction with Colorado State University. The course is primarily located in the stormwater detention basin directly west of Overland Trail Road. The course will include new trees and shrubs, a new access road off County Road No. 42C, and the course tee areas and baskets. 9. Items Relating to Amendments to the Definitions in Article I of Chapter 26, the Electric Article of Chapter 26, and to Standards for Interconnection of Electric Generation Facilities. A. Second Reading of Ordinance No. 079, 2011, Making Certain Amendments to Chapter 26 of the City Code Pertaining to the Provision of Net Metering Service and Certain Definitions Related Thereto. B. Second Reading of Ordinance No. 080, 2011, Amending Various Provisions of the City Code and the Land Use Code Pertaining to the Definition of General Manager. C. Second Reading of Ordinance No. 081, 2011, Making Certain Amendments to Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. These Ordinances, unanimously adopted on First Reading on July 5, 2011, make minor revisions to the definitions section of Article I and to the Electric Article of Chapter 26 of the City Code and the Land Use Code. These revisions include updating the definition of General Manager, clarification regarding the provision of net metering service and clarification regarding authority to execute interconnection or parallel generation agreements on behalf of the City. Light and Power is also recommending adding clarifying language to the City’s indemnification and insurance requirements contained in the City’s Interconnection Standards. These standards govern operational and other requirements for interconnection generating facilities to the City’s electric distribution system. 10. Second Reading of Ordinance No. 082, 2011, Calling a Special Municipal Election to Be Held in Conjunction with the November 1, 2011 Larimer County Coordinated Election. This Ordinance, unanimously adopted on First Reading on July 5, 2011, calls a Special Municipal Election to be held in conjunction with the November 1, 2011 Larimer County Coordinated Election, and preserves the opportunity for Council to place initiated or referred issues on the November ballot. If Council decides to place any measures on the ballot it would need to do so no later than at its August 16 meeting. If Council does not take action by ordinance or resolution before the statutory deadline (September 2) to certify ballot language to Larimer County, the election will be cancelled and the provisions of this Ordinance will be of no further force and effect. This Ordinance does not submit a specific measure to the November 1, 2011 ballot. However, a group of citizens is currently circulating an initiative petition proposing a prohibition on the establishment, operation or licensing of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused product manufacturing within the city of Fort Collins. The deadline to submit the petition to the City Clerk’s Office is July 19, 2011. Adoption of this Ordinance is a required step in preserving the option for City Council to submit the initiated ordinance, and/or any other ballot measures that Council may desire, at the November 1, 2011 Coordinated Election. Page 4 11. Items Relating to the Access Road at Soapstone Prairie Natural Area. A. Second Reading of Ordinance No. 083, 2011, Authorizing the Transfer to Larimer County of Public Right-of-Way Easements Acquired by the City for the Reconstruction of Rawhide Flats Road. B. Second Reading of Ordinance, No. 084, 2011, Authorizing the Conveyance of Access Easements to Three Private Land Owners within the Soapstone Prairie Natural Area. To complete the process of improving Rawhide Flats Road, the City has requested that Larimer County vacate sections of road right-of-way that were abandoned in 2008 when the road was realigned and reconstructed by the City to provide access to Soapstone Prairie Natural Area. The County conditioned its approval of the road improvements on the City’s follow up to request this vacation in order to stop the unnecessary public use of the old abandoned road areas and to allow the land to revert to the surrounding landowner(s). Once the sections of right-of-way are vacated, the ownership will revert to the adjacent landowners. In connection with the vacation of the unneeded sections of right-of-way, the City is proposing to transfer to the County six new right-of-way easements that the City acquired to build the realigned portions of the improved road. This transfer will establish that the easements are held by Larimer County as public road easements for Rawhide Flats Road along with the other segments of the Road, and that the right-of-way being vacated is no longer needed. The City has also asked the County to vacate any remaining public road rights-of-way within Soapstone Prairie Natural Area. This action will establish that Rawhide Flats Road north of the Natural Area boundary line is a private road owned by the City for the sole purpose of providing access to Soapstone Prairie Natural Area. There are currently three property owners with in-holding properties within Soapstone Prairie Natural Area. When this section of Rawhide Flats Road is vacated, these owners will lose their legal access to their properties. In order to continue to provide these owners legal access to their property, the City will need to grant each owner an access easement from the boundary of the Natural Area to their property line. The access easements will follow the same alignment as the existing road on the Soapstone Prairie Natural Area. These Ordinances were unanimously adopted on First Reading on July 5, 2011. 12. Second Reading of Ordinance No. 085, 2011, Authorizing the Conveyance to Capstone Development Corporation of Three Easements on Stormwater Utility Property at Creekside Park. Capstone Development Corporation is planning a mixed use development. The project area is 10.4 acres and is located near Stuart Street and College Avenue. It fronts College Avenue around the Discount Tire property and continues to the west to the railroad. The project area is also at the rear of the Dairy Queen property. This mixed use development is for student housing and retail space. It will have two buildings, 221 dwelling units and 8,000 square feet of new retail space. The retail space will be the first floor of the building fronting on South College Avenue. This Ordinance, unanimously adopted on First Reading on July 5, 2011, authorizes a drainage easement for construction of a new flood control channel, a drainage easement for sheet flows from the adjoining property, and a temporary construction easement to construct a pedestrian trail and an underground stormwater pipe on City-owned property known as Creekside Park. 13. Second Reading of Ordinance No. 086, 2011, Authorizing the Conveyance to Solitaire Homes, LLC of a Public Trail Easement on City Property. Solitaire Homes, LLC is planning a 27 acre (approximately) development north and west of Laporte Avenue and Taft Hill Road, opposite the Poudre School District offices. This Ordinance, unanimously adopted on First Reading on July 5, 2011, authorizes a 438 square foot public trail easement from the City across City property managed by the Water Utility to facilitate a planned trail within the development. Page 5 14. First Reading of Ordinance No. 090, 2011, Appropriating General Fund Prior Year Reserves for the Affordable Housing Fund and Land Bank Program. City Council authorized expenditures in 2010 for Affordable Housing and the Land Bank Program. All of the authorized expenditures were not spent in 2010 because the projects for which the dollars were originally appropriated could not be completed during 2010. Reappropriation of $295,821 is necessary for completion of the projects in 2011. These unexpended monies lapsed into the General Fund balance at the end of 2010 and reflect no change in Council policies. 15. Items Relating to the Shields Street Bridge Replacement and LaPorte Avenue Bridge Replacement. A. Resolution 2011-058 Authorizing the Mayor to Enter into a Contract with the Colorado Department of Transportation for the Construction of the Shields Street Bridge Replacement and Laporte Avenue Bridge Replacement. B. First Reading of Ordinance No. 091, 2011, Appropriating Unanticipated Revenue from the Colorado Department of Transportation in the City Bridge Program Fund for the Shields Street Bridge Replacement and Laporte Avenue Bridge Replacement. The City of Fort Collins Engineering Department has been awarded three grants from the federally funded Colorado Off-System Bridge Program totaling $2,225,932. This funding contract between the City and Colorado Department of Transportation is for the replacement of two structurally deficient bridges owned by the City. The two bridges are Shields Street Bridge over Larimer Canal No. 2, and Laporte Avenue Bridge over the Arthur Ditch. 16. Items Relating to a Long-Term Solar Power Arrangement for the Water Treatment Facility. A. First Reading of Ordinance No. 092, 2011, Authorizing the Execution of a Power Purchase Agreement Contract with a Photovoltaic Provider at the Water Treatment Facility for a Term of Up to 20 Years. B. Resolution 2011-059 Authorizing a Revocable Permit to a Selected Solar Provider for the Use of the City Water Treatment Facility Property for a Solar Project. The Water Treatment Facility receives its electrical power from Xcel Energy. A solar power generation project, with a fixed electrical rate sold back to the City, allows the offset of a portion of electrical usage at the plant site. A third party Photovoltaic system developer will design, construct, operate and maintain for up to 20 years a solar power project. This Ordinance allows for a 20-year contract between the system developer and the City. The Resolution issues a revocable permit for use of a portion of land onsite of the Water Treatment Facility by the photovoltaic system developer. 17. Items Relating to Grass Height Restrictions and Updating Related City Code References. A. First Reading of Ordinance No. 093, 2011, Amending Article IV of Chapter 20 of the City Code Regarding Weeds, Grass and Rubbish. B. First Reading of Ordinance No. 094, 2011, Amending Article VII of Chapter 12 of the City Code Regarding Resource Conservation. In an effort to promote water conservation, lower greenhouse gas emissions, and provide options for Fort Collins residents who are interested in using water-wise turfgrass, these Code amendments will allow certain grass types to be exempt from the current six (6) inch height limit. The grass types that would be exempt are Blue Grama and Buffalo grass, and they would have a height limit of twelve (12) inches. Page 6 18. First Reading of Ordinance No. 095, 2011, Amending the Appeals Procedure Contained in Chapter 2, Article II, Division 3 of the City Code Relating to the Procedures for Hearing Appeals to the City Council. This Ordinance changes the timing for the scheduling of appeal hearings and for requesting site inspections and also amends the appeals procedure so as to allow the general public to participate in the appeal hearing and to allow Councilmembers who have filed an appeal to participate in deciding the appeal. 19. Resolution 2011-060 Amending the Rules of Procedure Governing the Conduct of City Council Meetings. This Resolution would amend the rules of procedure that govern the conduct of City Council meetings with regard to citizen comment during the Citizen Participation segment of the meetings. The 30- minute time limit that currently exists for the Citizen Participation segment of the meetings would be eliminated and two topics would be specified as not appropriate for comment: matters on the discussion agenda for the meeting and quasi-judicial matters. 20. Resolution 2011-061 Adopting the Recommendations of the Cultural Resources Board Regarding Fort Fund Disbursements. The Cultural Development and Programming and Tourism Programming accounts (Fort Fund) provide grants to fund community events. This resolution will adopt the recommendations from the Cultural Resources Board to disburse these funds. 21. Resolution 2011-062 Making Appointments to the Retirement Committee and the Women’s Commission. A vacancy currently exists on the Retirement Committee due to the resignation of Dick Burkhartzmeyer. Councilmembers Ben Manvel and Wade Troxell reviewed the applications on file. The interview team is recommending John Lindsay to fill the vacancy with a term to begin immediately and set to expire on December 31, 2011. A vacancy also exists on the Women’s Commission due to the resignation of Randi Nelson. Applications were solicited and Councilmembers Ben Manvel and Wade Troxell conducted interviews. The interview team is recommending Jan Hawn to fill the vacancy with a term to begin immediately and set to expire on December 31, 2012. END CONSENT 22. Consent Calendar Follow-up. This is an opportunity for Councilmembers to comment on items adopted or approved on the Consent Calendar. 23. Staff Reports. 24. Councilmember Reports. Page 7 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. 25. Items Relating to the Completion of the 2011 Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Activities Utilizing the Federal Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs, and the City’s Human Services Program. (staff: Ken Waido; 10 minute staff presentation; 45 minute discussion) A. Public Hearing and Resolution 2011-063 Approving the Programs and Projects that Will Receive Funds from the Federal Community Development Block Grant Program, the Home Investment Partnerships Program, and the City’s Human Services Program. B. Public Hearing and Resolution 2011-064 Approving the Fiscal Year 2011 Administration and Project Budgets for the Home Investment Partnerships Program. C. First Reading of Ordinance No. 096, 2011, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 097, 2011, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Home Investment Partnerships Fund. E. Public Hearing and Resolution 2011-065 Eliminating Restrictions on the Use of Affordable Housing Funds Currently Earmarked for the Acquisition of Former Rental Properties. Resolution 2011-063 will complete the 2011 spring cycle of the competitive process for allocating City financial resources to affordable housing programs/projects and community development activities by listing the specific programs/projects that will receive funding starting October 1, 2011. Ordinance No. 096, 2011, appropriates the City’s FY 2011 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD). Resolution 2011-064 establishes the major funding categories within the HOME Program for the FY 2011 program year, which also starts on October 1, 2011. Specific projects for the use of HOME funds will be determined in November as a result of the 2011 fall cycle of the competitive process. Ordinance No. 097, 2011, appropriates the City’s FY 2011 HOME Participating Jurisdiction Grant from HUD. Resolution 2011-065 eliminates the restriction on $60,000 of Affordable Housing Fund dollars that they be used for the acquisition of former rental Page 8 properties by first-time home buyers to allowing the funds to be used for the purchases of non-rental properties. 26. Items Relating to the Fort Collins Museum/Discovery Science Center Project. (staff: Mike Freeman, Marty Heffernan; 5 minute staff presentation; 15 minute discussion) A. Second Reading of Ordinance No. 087, 2011, Appropriating Prior Year Reserves in the General Fund for Transfer to the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Project. B. Second Reading of Ordinance No. 088, 2011, Appropriating Prior Year Reserves in the Water Fund for the Purpose of Providing a Loan to FCDM, Inc. for the Fort Collins Museum/Discovery Science Center Project. At the July 5, 2011 City Council meeting, Council adopted on First Reading, two ordinances which appropriate funding to continue construction on the new Fort Collins Museum/Discovery Science Center facility. Ordinance No. 087, 2011, adopted 5-2 (nays: Kottwitz, Ohlson) appropriates $1.5 million from General Fund reserves to the capital project. Council amended the original ordinance from $3 million to $1.5 million. Ordinance No. 088, 2011, adopted 6-1 (nays: Kottwitz) appropriates $875,000 from Water Fund reserves to the Non-profit Corporation as a loan for committed pledges towards building construction to be paid between 2011 and 2014. These ordinances will keep the museum project moving forward for several months and avoid a costly work stoppage. The building project is experiencing a $3,875,000 cash flow issue from two sources. The Downtown Development Authority (DDA) has committed $3 million for the building but funds are not currently available. The Non-profit Corporation has raised $4,561,916 of which $875,000 is in the form of pledges to be paid between 2011 and 2014. The two Ordinances allow construction to continue for several months. This additional time allows Council to consider the Building Community Choices reserve at the July 12 work session and other potential funding mechanisms; review the next few months of sales tax; and the DDA will receive its certification from the County in August, providing key data to determine when its $3 million commitment can be paid to the project. 27. Resolution 2011-066 Approving an Agreement Between the City and Avago Technologies US, Inc. to Provide Business Investment Assistance for the Building 4 Retrofit. (staff: Josh Birks; 5 minute staff presentation; 15 minute discussion) This Resolution approves a Business Investment Agreement between the City and Avago Technologies. The Agreement provides two performance based investments: (1) a one-time use tax rebate on manufacturing equipment purchased as part of the expansion; and (2) a personal property tax rebate on the same equipment for ten years. Both investments relate to revenues the City would not otherwise collect if the expansion did not occur within the City. The total investment package has a value of approximately $3.2 million and includes both local and state investments. The total value of the use tax and personal property constitutes $2.912 million of the package value. NOTE: The value of the package has increased since the Council Finance Committee briefing on July 5, 2011. The increase is due to additional investment in manufacturing equipment by Avago. 28. First Reading of Ordinance No. 098, 2011, Repealing and Reenacting Division 14, Article III of Chapter 2 of the Code of the City of Fort Collins Dissolving the Electric Board and Creating a New Energy Board. (staff: Brian Janonis; 5 minute staff presentation; 30 minute discussion) Decisions Council makes today can have a significant impact on our community’s ability to respond to changing conditions in the future. Council needs visionary and innovative advice regarding the community’s energy future as it relates to the Plan Fort Collins goals for a sustainable community. Council is in need of advice from subject matter experts not just in the electric engineering field but also other experts who are knowledgeable about such things as to how the electrification of transportation impacts carbon emissions and energy consumption. To this end, an Energy Board is being created to replace the Electric Board. The purpose of the Energy Board will be to take a systems approach to the City’s energy future looking out 10 years and beyond and to advise Council Page 9 on such matters. 29. Resolution 2011-067 Creating a Council Futures Committee. (staff: Darin Atteberry; 10 minute staff presentation; 30 minute discussion) At the Council retreat on May 6 and 7, 2011, Council indicated an interest in forming a Futures Committee, the purpose of which would be to develop a vision for the future of Fort Collins, using economic modeling and other information to help inform and establish a guide for Council to consider in making decisions about the future of the community. 30. Pulled Consent Items. 31. Other Business. a. Cancellation of Regular Council Meeting of August 2, 2011. b. Motion to Adjourn Meeting to July 26, 2011. 32. 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. urban renewal authority Karen Weitkunat, President City Council Chambers Kelly Ohlson, Vice-President City Hall West Ben Manvel 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Aislinn Kottwitz Wade Troxell Gerry Horak Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, Executive Director Steve Roy, City Attorney Wanda Krajicek, Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for assistance. URBAN RENEWAL AUTHORITY MEETING July 19, 2011 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Resolution No. 037 Adopting Policies and Procedures for the Fort Collins Urban Renewal Authority. (staff: Christina Vincent; 5 minute staff presentation; 15 minute discussion) In May 2010, the Urban Renewal Authority (URA) Board approved a thorough revision to the Policies and Procedures (Policies) from the original policies created in 2006. At the May 17, 2011 URA Board meeting, it was decided that the Policies should have more detail regarding green building practices and therefore should come back to the URA Board for more revisions. Staff received feedback at the June 14, 2011 work session to modify the language as proposed by the URA Board. These Policies are intended to give guidance to the eligible developments and objectives of the URA to applicants, staff, citizens and the URA Board for decision making purposes. 4. Other Business. 5. Adjournment. PROCLAMATION WHEREAS, carcinoid cancer is the result of changes in the gastrointestinal system which cause neuroendocrine cells to grow abnormally and form slow-growing, microscopic tumors, which, if untreated, can expand and create numerous serious symptoms and even cause death; and WHEREAS, carcinoid cancer is commonly misdiagnosed due to the symptomatic similarities to other maladies, including Irritable Bowel Syndrome, anxiety, and Crohns disease; and WHEREAS, the symptoms of carcinoid cancer include abdominal pain, swelling of the skin around the face and neck, wheezing, upset stomach, and some symptoms of heart failure, including breathlessness; and WHEREAS, by raising public awareness of carcinoid cancer, the State of Colorado and the City of Fort Collins seek to minimize the devastating effects of the illness among Coloradans; and WHEREAS, Poudre Valley Cancer Treatment and Research Center is committed to supporting carcinoid research and fostering excellence in cancer care; and WHEREAS, the Sixth Annual Run For Hope 5K will be held on July 22 and 23, 2011, to raise support for the Poudre Valley Cancer Treatment and Research Center and to provide funding for education and awareness of carcinoid cancer. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim August 2011 as CARCINOID CANCER AWARENESS MONTH and encourage the citizens of Fort Collins to become aware of this devastating disease and to participate in support for research to find a cure. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 19th day of July, A.D. 2011. __________________________________ Mayor ATTEST: _________________________________ City Clerk PROCLAMATION WHEREAS, the first Tuesday night in August is celebrated across the nation as National Night Out; and WHEREAS, the City of Fort Collins, in conjunction with this national event, is sponsoring a unique community building program on August 2 called “Neighborhood Night Out;” and WHEREAS, Neighborhood Night Out provides a exceptional opportunity for residents throughout the City to join their neighbors in promoting community and safe neighborhoods; and WHEREAS, the City of Fort Collins plays a vital role in assisting with neighborhood community building, crime prevention, and quality of life enhancement within Fort Collins by supporting “Neighborhood Night Out”; and WHEREAS it is essential that all citizens of Fort Collins be aware of the importance that their participation can have on the safety and enjoyment of their neighborhood; and WHEREAS, I, along with the entire City Council, encourage Fort Collins residents to help make our community a safe and enjoyable place to live, work, and play. NOW. THEREFORE, I Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim Tuesday, August 2, 2011, as NEIGHBORHOOD NIGHT OUT IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 19th day of July, A.D. 2011. __________________________________ Mayor ATTEST: _________________________________ City Clerk PROCLAMATION WHEREAS, pioneering men and women, known as cowboys, helped establish America’s frontiers; and WHEREAS, the cowboy archetype transcends gender, generations, ethnicity, geographic boundaries, and political affiliation; and WHEREAS, the cowboy embodies honesty, integrity, courage, compassion, and determination and the cowboy spirit exemplifies patriotism and strength of character; and WHEREAS the cowboy is an excellent steward of the land and its creatures; and WHEREAS, cowboy traditions have been part of the American landscape and culture since 1523, and today’s cowboys and cowgirls continue to strive to preserve and perpetuate this unique element of America’s heritage; and WHEREAS, the cowboy continues to be an important part of the economy through the work of approximately 656,500 ranches in all 50 states; and WHEREAS, the cowboy and his horse are a central figure in literature, art, film, poetry, photography, and music and the cowboy is a true American icon occupying a central place in the public’s imagination. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim July 23, 2011 as NATIONAL DAY OF THE COWBOY and I encourage our community to participate in the activities surrounding this event. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 19th day of July, A.D. 2011. __________________________________ Mayor ATTEST: _________________________________ City Clerk PROCLAMATION WHEREAS, women of vision have helped shape the past, present and future of life in our society; and WHEREAS, women of vision have come from diverse backgrounds and philosophies, from homes, churches, the arts, the medical community, education, athletics, government, and business; and WHEREAS, women of vision have applied their training, skills, innovation, creativity and leadership as writers, artists, actors, athletes, doctors, scientists, social and political activists, educators, inventors, wives and mothers to lead, influence and bring about positive change; and WHEREAS, the contributions of these women of vision have often been overlooked and undervalued; and WHEREAS, we stand at a time in history when the importance of vision, innovation, creativity and leadership has never been more critical to our society; and WHEREAS, we seek to provide an inclusive platform designed to ensure women’s voices, ideas and spirits continue to provide inspiration, leadership and encouragement; and WHEREAS, we seek to celebrate female visionaries and leaders and highlight them as role models for our community. NOW, THEREFORE, I, Karen Weitkunat, Mayor of the City of Fort Collins, do hereby proclaim July 20, 2011 to be WOMEN OF VISION DAY in Fort Collins and call upon our citizens to recognize the important contributions women of vision have made to improve the quality of life for all. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 19th day of July, A.D. 2011. __________________________________ Mayor ATTEST: _________________________________ City Clerk PROCLAMATION WHEREAS, Sister Mary Alice Murphy has been a community catalyst and supporter of the homeless of Northern Colorado for more than 30 years; and WHEREAS, Sister Mary Alice Murphy and her coworkers played a fundamental role in bringing initial awareness to Fort Collins about the realities of homelessness in Colorado; and WHEREAS, Sister Mary Alice Murphy and her coworkers developed relationships among business, faith, government and nonprofit leaders to comprehensively address homelessness in ways that had never been done before; and WHEREAS, Sister Mary Alice Murphy and her coworkers founded and/or inspired numerous organizations and initiatives to provide support to the homeless of Fort Collins, with objectives of preventing and ending homelessness: CARE Housing, Catholic Charities Northern of Colorado, The Sister Mary Alice Murphy Center for Hope, Hand-Up Cooperative, Homeless Day Services Initiative, Homelessness Prevention Initiative, Homeless Gear, and Homeward 2020; and WHEREAS, a foundation for the future has been laid due to the next generation staff and supporters systemically addressing local Fort Collins homelessness who are now carrying the torch, thanks to Sister Mary Alice Murphy’s guidance and direction; and WHEREAS, thousands upon thousands of lives of Northern Colorado’s most vulnerable have been greatly improved by the presence of Sister Mary Alice Murphy and her coworkers as we celebrate her 80th birthday. NOW, THEREFORE, I, Karen Weitkunat, Mayor of City of Fort Collins, do hereby proclaim August 7, 2011 as SISTER MARY ALICE MURPHY AND COWORKERS DAY to celebrate the incredible work and dedication of Sister Mary Alice Murphy for the city. IN WITNESS WHEREOF, I have hereunto set my hand and the seal of the City of Fort Collins this 19th day of July, A.D. 2011. __________________________________ Mayor ATTEST: _________________________________ City Clerk DATE: July 19, 2011 STAFF: Carol Workman AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 6 SUBJECT Second Reading of Ordinance No. 076, 2011, Appropriating Unanticipated Revenue in the General Fund for the Purchase, Training and Ongoing Maintenance of the E911 and Emergency Dispatch Systems at Fort Collins Police Services Dispatch Center. EXECUTIVE SUMMARY Larimer Emergency Telephone Authority provides funds to the Fort Collins Police Services to be used for equipment and training to process E911 calls. This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates those funds. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Carol Workman AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT First Reading of Ordinance No. 076, 2011, Appropriating Unanticipated Revenue in the General Fund for the Purchase, Training and Ongoing Maintenance of the E911 and Emergency Dispatch Systems at Fort Collins Police Services Dispatch Center. EXECUTIVE SUMMARY Larimer Emergency Telephone Authority provides funds to the Fort Collins Police Services to be used for equipment and training to process E911 calls. This Ordinance appropriates those funds. BACKGROUND / DISCUSSION The Larimer Emergency Telephone Authority (LETA) collects a monthly fee from all county telephone users to purchase equipment, train users and maintain equipment used to process E911 phone calls and dispatch appropriate emergency services providers. In 2003, LETA developed a formula for the anticipated annual budget for these services for each Public Safety Answering Point (Emergency Services Dispatch Center) based on number of dispatchers and the number of E911 telephone calls received in the center. Based on the formula, LETA provides the funds to the individual centers for payment of expenses. The 2011 amount is $14,961, based on 2010 expenditures for Fort Collins Police Services. In the same manner, a formula was developed for each Public Safety Answering Point (PSAP) for Emergency Medical Dispatch (EMD) based on the number of dispatchers and the number of EMD calls handled by the center. The 2011 amount of $27,477 is based on the 2010 expenditures for EMD for the Fort Collins Police Services. FINANCIAL / ECONOMIC IMPACTS This Ordinance appropriates the funds provided to the Fort Collins Police Services by LETA to purchase equipment, train users, maintain equipment for emergency services dispatching and pay for quality assurance audits of EMD related calls. The total amount to be appropriated to these two budgets is $42,438. This funding allows for continued training for employees in the Fort Collins Police Services Dispatch Center to include annual training on Emergency Medical Dispatching and auditing use of the EMD protocols, resulting in staff that is better trained and qualified to provide services to the community. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 076, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND FOR THE PURCHASE, TRAINING AND ONGOING MAINTENANCE OF THE E911 AND EMERGENCY DISPATCH SYSTEMS AT FORT COLLINS POLICE SERVICES DISPATCH CENTER WHEREAS, Larimer Emergency Telephone Authority (“LETA”) collects a monthly fee from Larimer County telephone users and allocates funds to purchase and maintain the equipment used to process E911 telephone calls, train users, and dispatch appropriate Emergency Services Providers; and WHEREAS, LETA distributes funds to each Emergency Services Dispatch Center based on the number of dispatchers and the number of E911 telephone calls received at that location; and WHEREAS, LETA also distributes funds to each Emergency Services Dispatch Center based on the number of dispatchers and the number of Emergency Medical Dispatch calls handled by that location; and WHEREAS, funding is based on 2010 expenditures, and for 2011 the City will receive a total amount of $42,438 from LETA (the “LETA Funds”); and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the LETA Funds, as described herein, will not cause the total amount appropriated in the General Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General Fund the sum of FORTY-TWO THOUSAND FOUR HUNDRED THIRTY-EIGHT DOLLARS (42,438) for expenditure in the General Fund for E911 and Emergency Medical Dispatch Systems at the Poudre Emergency Communications Center. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: July 19, 2011 STAFF: Steve Catanach Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 7 SUBJECT Second Reading of Ordinance No. 077, 2011, Appropriating Unanticipated Revenue in the Light and Power, Water and Wastewater Funds for Capital Projects to Relocate Utility Facilities in the Mason Corridor Bus Rapid Transit Project and Transferring Existing Light and Power Appropriations into the Light and Power Utility Relocation Capital Project. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates capital project funding for the Utilities to relocate existing electric, water and wastewater facilities to accommodate the Mason Corridor Bus Rapid Transit (BRT) Project. Light and Power will also supply power to the bus stations along the corridor. . STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Steve Catanach Jon Haukaas AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT First Reading of Ordinance No. 077, 2011, Appropriating Unanticipated Revenue in the Light and Power, Water and Wastewater Funds for Capital Projects to Relocate Utility Facilities in the Mason Corridor Bus Rapid Transit Project and Transferring Existing Light and Power Appropriations into the Light and Power Utility Relocation Capital Project. EXECUTIVE SUMMARY This Ordinance appropriates capital project funding for the Utilities to relocate existing electric, water and wastewater facilities to accommodate the Mason Corridor Bus Rapid Transit (BRT) Project. Light and Power will also supply power to the bus stations along the corridor. The Utilities are being viewed by the MAX/BRT Project as independent contractors and will be reimbursed by the MAX/BRT Project funds for the relocation expenses upon completion. The MAX/BRT Project will also pay for the cost of electric power supply to the bus stations. The Ordinance provides new capital appropriations in the Light Power Fund ($620,000), Water Fund ($625,000) and Wastewater Fund ($1,150,000) for the relocation work. Following completion of the construction, the Utilities will invoice the MAX/BRT Project based on actual costs and will receive the unanticipated revenue being appropriated by the Ordinance. In addition to electric duct bank relocation, Light and Power will use this opportunity to upgrade the capacity of the duct bank. These system upgrade costs have been budgeted in Light and Power’s existing 2011 lapsing appropriation. The Ordinance transfers $400,000 of the existing Light and Power lapsing budget into the new BRT electric relocation/upgrade capital project. The costs of the upgrade will not be reimbursed by the MAX/BRT Corridor Project. BACKGROUND / DISCUSSION This Ordinance appropriates the following funds related to utilities work to accommodate the Mason Corridor Bus Rapid Transit Project. The amounts shown are construction estimates. The MAX/BRT Corridor Project will pay the Utilities based on actual design and construction costs. Relocation work will not proceed until authorization is issued by the MAX/BRT project manager. $400,000 Light and Power Fund – New Capital Project Appropriation This portion of the appropriation is fifty percent of the $800,000 cost to relocate and upgrade existing electric facilities for the MAX/BRT Project Corridor Project. This phase will involve the relocation of the duct bank between Drake and Prospect. The duct bank is being relocated due to logistical conflicts with the Mason Street Corridor guide way. Construction on this phase is anticipated to be completed by year-end. This $400,000 expense will be reimbursed by the MAX/BRT Project funding. $400,000 Light and Power Fund – Transfer of Existing 2011 Appropriation The Light and Power Fund will bear fifty percent of the cost for the $800,000 upgrade and relocation because this project will enlarge capacity for the electric system as well as move the existing system to accommodate the MAX/BRT Project. This portion of the appropriation is to be transferred from the existing 2011 Light and Power appropriation into the new Light and Power capital project. There will be no reimbursement for this half of the expense. $220,000 Light and Power Fund - New Capital Project Appropriation This is the estimated cost to provide electric service to the bus stations along the MAX/BRT Project Corridor. This electric construction is planned for 2012 and 2013. One hundred percent of the station power costs will be reimbursed by MAX/BRT Project. COPY COPY COPY COPY July 5, 2011 -2- ITEM 13 $625,000 Water Fund - New Capital Project Appropriation $1,150,000 Wastewater Fund - New Capital Project Appropriation With the construction of the MAX/BRT Project beginning in 2011, the Utility is faced with as many as 18 separate locations where the MAX/BRT crosses or parallels existing water and sewer infrastructure. This will impact the integrity, serviceability, longevity and safety of the operation of both the Utility pipelines and the MAX/BRT. Because of potential negative impacts to the Utility infrastructure (both immediately and in the future) or future impacts to the MAX/BRT, this is the opportunity to improve, modify and/or protect the water and sewer lines before the BRT improvements are built. The project has a short lead time with design scheduled to be done by early fall and construction completed by early in 2012. One hundred percent of the Water and Wastewater Utility’s expenses will be reimbursed by MAX/BRT Project funding. FINANCIAL / ECONOMIC IMPACTS These projects facilitate the construction of the MAX/BRT Corridor Project which will enhance both public transportation and economic development opportunities. The Water and Wastewater Funds will be fully reimbursed for all expenses related to the project. The Light and Power Fund will be reimbursed for all but $400,000. The portion that will not be reimbursed was included in the 2011 budget for electric system upgrades. Aging infrastructure will be upgraded during the relocation improving the future reliability of the system for customers. ENVIRONMENTAL IMPACTS No significant impacts are anticipated for the relocation of facilities. Electric loads will increase slightly when the bus stations are operational. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its May 4, 2011 meeting, the Electric Board voted unanimously to recommend approval of the appropriation in the Light and Power Fund. At its May 26, 2011 meeting, the Water Board voted unanimously to recommend approval of the appropriation. ATTACHMENTS 1. Electric Board minutes, May 4, 2011 2. Water Board minutes, May 26, 2011 3. Electric Relocation Map 4. Water and Sewer Relocation Map ORDINANCE NO. 077, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE IN THE LIGHT AND POWER, WATER, AND WASTEWATER FUNDS FOR CAPITAL PROJECTS FOR UTILITY FACILITIES IN CONNECTION WITH THE MASON CORRIDOR BUS RAPID TRANSIT PROJECT AND TRANSFERRING EXISTING LIGHT AND POWER APPROPRIATIONS INTO THE LIGHT AND POWER UTILITY RELOCATION CAPITAL PROJECT WHEREAS, Utility Services currently has certain electric, water and wastewater infrastructure that needs to be either relocated, installed, or improved to accommodate the construction of improvements that are being installed for the Mason Corridor Bus Rapid Transit (“BRT Project”); and WHEREAS, for reasons independent of the BRT Project, certain other electric infrastructure also needs to be relocated, and the relocation work to be undertaken in connection with the BRT Project also provides an opportunity to generally upgrade the electric system infrastructure; and WHEREAS, the total cost of the work to relocate and upgrade the electric facilities is $800,000; and WHEREAS, the relocation portion of the work is considered an expense of the BRT Project, and Utility Services will be reimbursed for such work by the BRT Project fund in the amount of $400,000; and WHEREAS, the $400,000 needed for the electric system upgrades are not expenses to be charged to the BRT Project; and WHEREAS, the funds needed for such upgrades may be obtained by transferring existing appropriations from the Light and Power operating budget to the Light and Power Utility Relocation capital project budget; and WHEREAS, Utility Services will also be installing infrastructure that will provide electric service to the BRT stations and the cost of this work is $220,000, which cost will be reimbursed by the BRT Project; and WHEREAS, Utility Services also has existing water and wastewater infrastrucutre in the BRT Project corridor; and WHEREAS, because the BRT Project may impact the integrity of the water and wastewater infrastructure, and may negatively affect the ability to service the infrastructure, Utility Services desires to make improvements to the infrastructure prior to the construction of the BRT Project; and WHEREAS, the estimated total cost of the water and wastewater infrastructure improvements is estimated to be $1,775,000, which cost will be reimbursed by the BRT Project; and WHEREAS, Article V, Section 9, of the City Charter authorizes 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 the 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 that the purpose for which the transferred funds are to be expended remains unchanged; and WHEREAS, City staff has determined that the appropriation of the reimbursement amounts described herein will not cause the total amount appropriated in the Light and Power Fund, the Water Fund, or the Wastewater Fund to exceed the current estimate of actual and anticipated revenues to be received in the funds during the fiscal year; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated revenue in the Light and Power Fund the sum of FOUR HUNDRED THOUSAND DOLLARS ($400,000) for expenditure in the Light and Power Utility Relocation capital project account to relocate existing electric facilities in the Mason Corridor. Section 2. That the unexpended appropriated amount of FOUR HUNDRED THOUSAND DOLLARS ($400,000) is hereby authorized for transfer from the Light and Power operating budget to the Light and Power Utility Relocation capital project account to perform upgrades to electrical system infrastructure in the Mason Corridor. Section 3. That there is hereby appropriated from unanticipated revenue in the Light and Power Fund the sum of TWO HUNDRED TWENTY THOUSAND DOLLARS ($220,000) for expenditure in the Light and Power Utility Relocation capital project account to provide electric service to the BRT bus stations. Section 4. That there is hereby appropriated from unanticipated revenue in the Water Fund the sum of SIX HUNDRED TWENTY FIVE THOUSAND DOLLARS ($625,000) for expenditure in the Water Fund Distribution System Replacement capital project account to improve, modify and/or protect the water lines before the BRT Project improvements are built. Section 5. That there is hereby appropriated from unanticipated revenue in the Wastewater Fund the sum of ONE MILLION ONE HUNDRED FIFTY THOUSAND DOLLARS ($1,150,000) for expenditure in the Wastewater Fund Collection System -2- Replacement capital project account to improve, modify and/or protect the sewer lines before the BRT Project improvements are built. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- DATE: July 19, 2011 STAFF: Craig Foreman AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 8 SUBJECT Second Reading of Ordinance No. 078, 2011, Appropriating Unanticipated Grant and Other Revenue in the Conservation Trust Fund for the Hughes Stadium Disc Golf Course. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 5, 2011, appropriates an $85,000 awarded by Great Outdoors Colorado has awarded for the completion of the Hughes Stadium Disc Golf Course. The project involves the development of an 18-hole disc golf course at Hughes Stadium in conjunction with Colorado State University. The course is primarily located in the stormwater detention basin directly west of Overland Trail Road. The course will include new trees and shrubs, a new access road off County Road No. 42C, and the course tee areas and baskets. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Craig Foreman AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT Items Relating to the Hughes Stadium Disc Golf Course. A. Resolution 2011-053 Authorizing the City Manager to Enter Into a Grant Agreement with Great Outdoors Colorado for Funds for a Disc Golf Course at Hughes Stadium. B. First Reading of Ordinance No. 078, 2011 Appropriating Unanticipated Grant and Other Revenue in the Conservation Trust Fund for the Hughes Stadium Disc Golf Course. EXECUTIVE SUMMARY Great Outdoors Colorado has awarded the City an $85,000 grant for the completion of the Hughes Stadium Disc Golf Course. The project involves the development of an 18-hole disc golf course at Hughes Stadium in conjunction with Colorado State University. The course is primarily located in the stormwater detention basin directly west of Overland Trail Road. The course will include new trees and shrubs, a new access road off County Road No. 42C, and the course tee areas and baskets. BACKGROUND / DISCUSSION On February 15, 2011, Council adopted Resolution 2011-012, supporting the City’s grant application for the Hughes Stadium Disc Golf Course project. The need for another disc golf course in Fort Collins was well documented during the Parks and Recreation Policy Plan update which was adopted by Council in 2009. The popularity of disc golf has grown over the years and the course at Edora Park is overused, causing safety concerns for other park users and resource damage to trees and turf. Colorado State University has been working with the City to develop a course at Hughes Stadium. The University is committed to the course being developed in and around the stormwater detention pond near Overland Trail Road (see Attachment 1). The course design has been integrated into an improvement project CSU is constructing in 2011 on the grounds around the stadium. This partnership allows for efficiencies and cost savings related to the design effort and for construction costs on such items as the irrigation water delivery system, earthwork and landscaping. The construction of the disc golf course is planned for fall 2011. The new disc golf course at Hughes Stadium will allow some disc golf holes to be removed from Edora Park, thus helping reduce conflicts and safety concerns with other park users. FINANCIAL / ECONOMIC IMPACTS The project continues the strong and effective partnerships with Colorado State University. Construction of the disc golf course is estimated to cost $135,000. The funding source is the Conservation Trust Fund. The Great Outdoors Colorado grant amount is for $85,000. The grant funding is a repay available at the time of the completion of the project. Consequently, the grant reduces the Conservation Trust cost for the project to $48,700, and $1,300 in-kind donations from the Fort Collins Disc Golf Club and Bill Wright. Operation and maintenance funding for the project will be about $2,500 per year. This O&M cost is available starting with the 2011 Parks Maintenance budget. It is hopeful that the disc golf community can help with routine maintenance of the site through the City’s Adopt-A-Park program and thus reduce O&M costs. COPY COPY COPY COPY July 5, 2011 -2- ITEM 14 ENVIRONMENTAL IMPACTS Trees at the course will be watered by drip irrigation to reduce water usage and waste. Fairways will not be irrigated and will be identified using gravel paths rather than irrigated turf saving additional water usage. Use at the new course will reduce the over-use of the Edora Park course and help eliminate turf and tree damages at the park. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its January 26, 2011 meeting, the Parks and Recreation Board voted unanimously to recommend Council approve the acceptance of the grant. PUBLIC OUTREACH During the recent Parks and Recreation Policy Plan public process, the need for more disc golf courses to serve the community was identified as a priority. The new course is supported by the Fort Collins Disc Golf Club, CSU Administration and the CSU Disc Golf Club. The new course is being designed with the assistance of Bill Wright who is active in the disc golf community and has designed numerous courses. ATTACHMENTS 1. Location map 2. Parks and Recreation Board minutes, January 26, 2011 ORDINANCE NO. 078, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT AND OTHER REVENUE IN THE CONSERVATION TRUST FUND FOR THE HUGHES STADIUM DISC GOLF COURSE WHEREAS, the City has been awarded a grant in the amount of $85,000 (the “Grant”) from Great Outdoors Colorado (“GOCO”) for the completion of the Hughes Stadium Disc Golf Course; and WHEREAS, the project involves the development of an 18-hole disc golf course at Hughes Stadium in conjunction with Colorado State University; and WHEREAS, this partnership with Colorado State University allows for efficiencies and cost savings related to the design effort and for construction costs; and WHEREAS, the course will include new trees and shrubs, a new access road from County Road No. 42C, and the course tee areas and baskets; and WHEREAS, the total project will cost $135,000 and is funded from the following sources: Great Outdoors Colorado grant ($85,000), in-kind donations ($1,300), and Conservation Trust Fund Reserves ($48,700); and WHEREAS, Article V, Section 9, of the City Charter authorizes the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 9, of the City Charter authorizes 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. WHEREAS, City staff has determined that the appropriation of the grant and other revenue as described herein will not cause the total amount appropriated in the Conservation Trust Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from unanticipated revenue in the Conservation Trust Fund the sum of EIGHTY FIVE THOUSAND DOLLARS ($85,000) in grant revenue and ONE THOUSAND THREE HUNDRED DOLLARS ($1,300) consisting of in-kind donations, for expenditure in the Conservation Trust Fund for the completion of the Hughes Stadium Disc Golf Course. Section 2. That there is hereby appropriated from prior year reserves in the Conservation Trust Fund the sum of FORTY-EIGHT THOUSAND SEVEN HUNDRED DOLLARS ($48,700) for expenditure in the Conservation Trust Fund for the completion of the Hughes Stadium Disc Golf Course. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: July 19, 2011 STAFF: Steve Catanach Ginger Purvis AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 9 SUBJECT Items Relating to Amendments to the Definitions in Article I of Chapter 26, the Electric Article of Chapter 26, and to Standards for Interconnection of Electric Generation Facilities. A. Second Reading of Ordinance No. 079, 2011, Making Certain Amendments to Chapter 26 of the City Code Pertaining to the Provision of Net Metering Service and Certain Definitions Related Thereto. B. Second Reading of Ordinance No. 080, 2011, Amending Various Provisions of the City Code and the Land Use Code Pertaining to the Definition of General Manager. C. Second Reading of Ordinance No. 081, 2011, Making Certain Amendments to Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System. EXECUTIVE SUMMARY These Ordinances, unanimously adopted on First Reading on July 5, 2011, make minor revisions to the definitions section of Article I and to the Electric Article of Chapter 26 of the City Code and the Land Use Code. These revisions include updating the definition of General Manager, clarification regarding the provision of net metering service and clarification regarding authority to execute interconnection or parallel generation agreements on behalf of the City. Light and Power is also recommending adding clarifying language to the City’s indemnification and insurance requirements contained in the City’s Interconnection Standards. These standards govern operational and other requirements for interconnection generating facilities to the City’s electric distribution system. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Steve Catanach Ginger Purvis AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Items Relating to Amendments to the Definitions in Article I of Chapter 26, the Electric Article of Chapter 26, and to Standards for Interconnection of Electric Generation Facilities. A. First Reading of Ordinance No. 079, 2011, Making Certain Amendments to Chapter 26 of the City Code Pertaining to the Provision of Net Metering Service and Certain Definitions Related Thereto. B. First Reading of Ordinance No. 080, 2011, Amending Various Provisions of the City Code and the Land Use Code Pertaining to the Definition of General Manager. C. First Reading of Ordinance No. 081, 2011, Making Certain Amendments to Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System EXECUTIVE SUMMARY The Fort Collins Utilities Light and Power Department is proposing minor revisions to the definitions section of Article I and to the Electric Article of Chapter 26 of the City Code and the Land Use Code. These revisions include updating the definition of General Manager, clarification regarding the provision of net metering service and clarification regarding authority to execute interconnection or parallel generation agreements on behalf of the City. Light and Power is also recommending adding clarifying language to the City’s indemnification and insurance requirements contained in the City’s Interconnection Standards. These standards govern operational and other requirements for interconnection generating facilities to the City’s electric distribution system. BACKGROUND / DISCUSSION The Light and Power Department is proposing the following revisions to the Electric Article of the City Code and revisions to the Land Use Code. These revisions are primarily definitional in nature. 1. Title revision and appointment: General Manager of Utility Services or General Manager shall mean Utilities Executive Director or appointed designee of such Executive Director. Sec 26-391. “Definitions”. 2. Clarifying that “Net metering service” is available exclusively for a qualifying facility “using a qualifying renewable technology”. Sections 26-391, 465 through 468. Also included is an amendment specifically authorizing the Utilities General Manager or the Manager’s appointed designee to sign interconnection agreements or parallel generation agreements. Light and Power is also recommending adding clarifying language to the City’s indemnification and insurance requirements contained in the City’s Interconnection Standards. As currently written, the indemnification and insurance requirements in the Interconnection Standards allow for no flexibility where a governmental entity cannot by law indemnify the City and may elect to self-insure in accordance with Colorado law. By adding the following language, “except when the Operator is a governmental entity that self-insures in accordance with Colorado law”, the City’s Interconnection Standards will now allow for that flexibility. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. COPY COPY COPY COPY July 5, 2011 -2- ITEM 15 BOARD / COMMISSION RECOMMENDATION On May 4, 2011, the recommended amendments and revisions were presented to the Electric Board. The Board requested additional clarification to the City’s indemnification and insurance requirements in the agreement as it relates to the Utilities collaboration with CSU and the RDSI project. Staff explained that the interconnection requirements and the system protections installed by the Utilities are designed to protect the Utilities distribution system from any type of damage such as spikes. After a brief discussion clarifying CSU’s current position on indemnification and insurance in the Interconnection Agreement, the Board unanimously voted to recommend the City Council adopt the amendments to the City Code and the revisions to the City’s Interconnection Standards. ATTACHMENTS 1. Electric Board minutes, May 4, 2011 ORDINANCE NO. 079, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING CERTAIN AMENDMENTS TO CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS PERTAINING TO THE PROVISION OF NET METERING SERVICE AND CERTAIN DEFINITIONS RELATED THERETO WHEREAS, on February 2, 2010, City Council approved Ordinance No. 003, 2010, amending Chapter 26, Article VI of the City Code to allow for the provision of net metered electric service; and WHEREAS, City staff intends for net metered electric service to be made available only for those qualifying facilities that use a qualifying renewable technology as those terms are currently defined in the City Code; and WHEREAS, City staff believes that the head of Utilities Services should be authorized to execute valid interconnection or parallel generation agreements with customers who wish to interconnect qualifying facilities to the City’s electric distribution system; and WHEREAS, on May 4, 2011, the Fort Collins Electric Board reviewed and considered the proposed amendments to the City Code and voted unanimously to recommend that the City Council make such amendments. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the definition “Net metering service” contained in Section 26-391 of the Code of the City of Fort Collins is hereby amended to read as follows: Net metering service shall mean that service available to a customer- generator operating a qualifying facility using a qualifying renewable technology that is interconnected to the electric utility so that any electric energy generated by the qualifying facility in excess of that used by the qualifying facility is delivered to the electric utility system and used to offset metered energy received by the customer- generator during the billing period. Section 2. That the definition “Qualifying facility” contained in Section 26-391 of the Code of the City of Fort Collins is hereby amended to read as follows: Qualifying facility shall mean an electric-generating facility operated in parallel with the City of Fort Collins electric distribution system that has been inspected for compliance with the City of Fort Collins Utility Services Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System, has been issued a “Permit to Operate” by the City and is operated under a valid “Interconnection Agreement” or “Parallel Generation Agreement” executed on behalf of the City of Fort Collins by the General Manager. Section 3. That Section 26-464(o)(1) of the Code of the City of Fort Collins is hereby amended to read as follows: (o) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator’s qualifying facility meets the following two (2) criteria: . . . Section 4. That Section 26-465(q)(1) of the Code of the City of Fort Collins is hereby amended to read as follows: (q) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator’s qualifying facility meets the following two (2) criteria: . . . Section 5. That Section 26-466(r)(1) of the Code of the City of Fort Collins is hereby amended to read as follows: (r) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator’s qualifying facility meets the following two (2) criteria: . . . Section 6. That Section 26-467(u)(1) of the Code of the City of Fort Collins is hereby amended to read as follows: (u) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator’s qualifying facility meets the following two (2) criteria: . . . -2- Section 7. That Section 26-468(v)(1) of the Code of the City of Fort Collins is hereby amended to read as follows: (v) Net metering. (1) Net metering service is available to a customer-generator producing electric energy exclusively with a qualifying facility using a qualifying renewable technology when the generating capacity of the customer-generator’s qualifying facility meets the following two (2) criteria: . . . Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- ORDINANCE NO. 080, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING VARIOUS PROVISIONS OF THE CODE OF THE CITY OF FORT COLLINS AND THE FORT COLLINS LAND USE CODE PERTAINING TO THE DEFINITION OF GENERAL MANAGER WHEREAS, certain provisions in both the City Code and the Land Use Code contain references to the “General Manager of Utility Services” or “General Manager”; and WHEREAS, the title of the head of the Utility Services service area has been changed to “Utilities Executive Director”; and WHEREAS, the City Code and the Land Use Code need to be updated to reflect the current title of the head of Utilities Services. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Code of the City of Fort Collins is hereby amended by changing all current references to the “General Manager of Utility Services” or “General Manager” so as to read the “Utilities Executive Director.” Section 2. That the Fort Collins Land Use Code is hereby amended by changing all current references to the “General Manager of Utility Services” or “General Manager” so as to read “Utilities Executive Director.” Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 081, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING CERTAIN AMENDMENTS TO INTERCONNECTION STANDARDS FOR GENERATING FACILITIES CONNECTED TO THE FORT COLLINS DISTRIBUTION SYSTEM WHEREAS, on February 2, 2010, City Council approved and adopted Interconnection Standards for Generating Facilities Connected to the Fort Collins Distribution System (the “Standards”); and WHEREAS, the Standards as currently adopted do not allow sufficient flexibility in situations where a customer wishing to interconnect to the City electric distribution system is prohibited by law from indemnifying the City or where such customer is self-insured; and WHEREAS, on May 4, 2011, the Fort Collins Electric Board reviewed and considered proposed amendments to the Standards, section 9.0, in the form entitled “Updated Standards”, attached hereto as Exhibit “A” and incorporated herein by this reference, and voted unanimously to recommend that the City Council adopt the Updated Standards; and WHEREAS, the Updated Standards clarify that the indemnification requirements apply to the extent permitted by law and that the insurance requirements do not apply when the customer is a governmental entity that self-insures. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Updated Standards are hereby approved and adopted. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk UPDATED STANDARDS INTERCONNECTION STANDARDS FOR GENERATING FACILITIES (GF) CONNECTED TO THE FORT COLLINS DISTRIBUTION SYSTEM July 2011 January 2010 Deleted: January 2010 EXHIBIT A Rev 9.0 July 2011 2 EXHIBIT A Rev 9.0 July 2011 3 TABLE OF CONTENTS 1.0 SCOPE AND GENERAL REQUIREMENTS...................................................................................................5 1.1 SCOPE AND INTENT .................................................................................................................................................5 1.2 SYSTEM PHASE AND VOLTAGE................................................................................................................................5 1.3 SYSTEM RECLOSING................................................................................................................................................5 1.4 ISLANDING ..............................................................................................................................................................5 1.5 SYNCHRONIZING .....................................................................................................................................................6 1.6 IMPROPER OPERATION OF THE GF...........................................................................................................................6 1.7 SYSTEM CAPACITY LIMITATIONS ............................................................................................................................6 1.8 SUBMITTAL REQUIREMENT .....................................................................................................................................7 2.0 STANDARDS AND DEFINITIONS...................................................................................................................7 2.1 STANDARDS ............................................................................................................................................................7 2.2 DEFINITIONS .......................................................................................................................................................8 3.0 GF EQUIPMENT AND INSTALLATION REQUIREMENTS ......................................................................8 3.1 GENERAL REQUIREMENTS.......................................................................................................................................8 3.2 INTERCONNECTION DISCONNECT SWITCH...............................................................................................................9 3.3 DEDICATED TRANSFORMER AND ADDITIONAL PRIMARY PROTECTION...................................................................9 3.4 INTERRUPTING DEVICES REQUIRED ......................................................................................................................10 3.5 SYSTEM PROTECTIVE FUNCTIONS .........................................................................................................................10 3.6 MOMENTARY PARALLELING GENERATION FACILITIES .........................................................................................13 4.0 FACILITY GROUNDING ................................................................................................................................13 4.1 EQUIPMENT BONDING CONDUCTOR ......................................................................................................................14 4.2 SURGE PROTECTION ..............................................................................................................................................14 4.3 SYSTEM GROUNDING ............................................................................................................................................14 5.0 PREVENTION OF INTERFERENCE AND UNACCEPTABLE OPERATING CONDITIONS .............15 5.1 VOLTAGE REGULATION.........................................................................................................................................16 5.2 SYSTEM VOLTAGE.................................................................................................................................................16 5.3 SYSTEM FREQUENCY.............................................................................................................................................16 5.4 SYNCHRONIZATION ...............................................................................................................................................17 5.5 FLICKER ................................................................................................................................................................17 5.6 HARMONICS ..........................................................................................................................................................18 5.7 POWER FACTOR.....................................................................................................................................................18 6.0 MONITORING PROVISIONS.........................................................................................................................19 6.1 METERING.............................................................................................................................................................19 6.2 MONITORING AND CONTROL REQUIREMENTS .......................................................................................................19 7.0 TESTING ............................................................................................................................................................20 7.1 COMMISSIONING TESTS.........................................................................................................................................20 7.2 PERIODIC MAINTENANCE TESTS ...........................................................................................................................20 7.3 QUALIFIED PERSONNEL.........................................................................................................................................21 8.0 DESIGN CHANGES ..........................................................................................................................................21 9.0 LIABILITY AND INSURANCE.......................................................................................................................21 APPENDIX A-TYPICAL ONE-LINE INDUCTION GENERATOR BETWEEN 50KW AND 100KW ....................23 APPENDIX B-TYPICAL ONE-LINE INVERTER CONNECTED GENERATOR BELOW 1000KW. ....................24 APPENDIX C-TYPICAL ONE-LINE SYNCHRONOUS GENERATOR 50KW AND ABOVE ................................25 EXHIBIT A Rev 9.0 July 2011 4 APPENDIX D-TYPICAL ONE-LINE INDUCTION GENERATOR LARGER THAN 100KW.................................26 APPENDIX E-TYPICAL ONE-LINE INVERTER CONNECTED GENERATOR LARGER THAN 1000KW.......27 Formatted: Bullets and Numbering EXHIBIT A Rev 9.0 July 2011 5 Scope and General Requirements 1.1 Scope and Intent The requirements contained in this document apply to all generation sources connected to the FCU distribution system 5MW and below at any one location. Any and all connections to the FCU distribution system and any aspect of such connection are subject to FCU review and such connections shall not be permitted unless approved by FCU. The operation and design of any GF must meet all of the requirements contained in this document, any written agreement between FCU and the Operator, as well as any applicable requirements contained in Chapter 26 of the Fort Collins Municipal Code and Fort Collins Utilities Electric Service Rules and Regulations. Any location where the aggregate total generation exceeds 5MW may require additional study by FCU. This study will consider the specific feeder where the GF is proposed to be connected. If the addition of any GF causes the total amount of generation by all sources on that feeder to exceed 50% of the minimum load on that feeder, additional study by FCU is required and the requirements produced as a result of that study may exceed those in this document. If the GF source to be added is highly variable such as wind or solar, and the total amount of wind or solar generation by all sources on that feeder exceeds 13.3% of the feeder capacity, or if the total of all the wind or solar generation on any substation exceeds 13.3% of the substation transformer size, additional study by FCU is required and the requirements produced as a result of that study may exceed those in this document. Protection and safety devices are intended to provide protection for the FCU distribution system, FCU utility workers, FCU customers and the general public. Protective devices installed on the GF are designed to ensure that the fault current supplied by the GF will be interrupted in the event a fault occurs on the FCU distribution system. When a fault occurs, the GF must be designed to automatically disconnect from the FCU distribution system until the distribution system is restored to normal operation. Any source not explicitly described in this document will require special study before it is allowed to interconnect to FCU. 1.2 System Phase and Voltage The GF may interconnect to the system at any service voltage available at the site. Additional voltages may be arranged with FCU on a case-by-case basis, subject to FCU approval. If the site contains a three-phase system the GF equipment must be three-phase. If only a single phase service is available, a single-phase GF may be allowed. The maximum nameplate rating of all the single-phase generators at any GF shall not exceed 20 kVA if connected line-line. When the site contains a center-tapped single-phase service, machines may be connected between phase and the center-tapped neutral providing the maximum nameplate rating of the generator connected does not exceed 5 kVA. 1.3 System Reclosing Automatic reclosing is generally not utilized on the FCU distribution systems to clear temporary faults; however, in the cases and locations where automatic reclosing is used, the GF must be designed to ensure that the GF will disconnect from the distribution system in the event an automatic reclose occurs. Normally the GF will not be allowed to interfere with automatic reclosing where it exists; however, industry standards require that a GF must automatically disconnect from an islanded system within two seconds. If the existing reclosing interval is faster than two seconds FCU will reset it to accommodate the GF. 1.4 Islanding Islanding occurs when a GF becomes separated from the main generation source on a distribution system, but continues to independently serve a portion of the distribution system. GF’s shall be EXHIBIT A Rev 9.0 July 2011 6 equipped with protective devices and controls designed to prevent the generator from being connected to a de-energized distribution system. Islanding is not permitted on the FCU distribution system. 1.5 Synchronizing Synchronization of the GF with the FCU system must be done automatically. Any proposal to allow manual synchronization is subject to review and approval by FCU. All GF’s must use protective devices that prevent electrically closing a GF that is out of synchronization with the distribution system. FCU will under no circumstances be responsible or liable for any damage done due to an out of synchronization closure of a GF onto the system. Additionally, the Operator is responsible and liable for any damage done to the FCU system by any type of improper closing onto the system. 1.6 Improper Operation of the GF Operation and design of the GF must meet all the requirements contained in this document as well as any applicable requirements contained in the Fort Collins Municipal Code and the Fort Collins Utilities Electric Service Rules and Regulations and any written agreement between FCU and the Operator. Also, no GF operation will at any time be allowed to adversely impact the operation of the FCU system in any way. The GF must not produce adverse amounts of unbalanced currents or voltages; produce high or low voltages, or unacceptable frequencies; it must not inject DC or harmonics into the system beyond what is allowed by this document; or cause excessive operations of system voltage regulating devices such as load tap changers and voltage regulators. The GF must not adversely affect system grounding or ground fault protection. FCU will not normally interfere with the operation of any GF. However, when requested by FCU by telephone, in person, or in writing, the Operator must immediately stop operation and not resume operation until cleared by FCU to do so. If the Operator begins to operate the GF out of the ranges or conditions listed herein, the Operator must agree to cease operation until such a time as the GF Operator can demonstrate to FCU that it has remedied the problem and can once again operate the GF in compliance with these requirements. If usage of the GF causes unusual fluctuations or disturbances on, or interference with FCU’s system or other FCU customers, FCU shall have the right to require the GF to install suitable apparatus to reasonably correct or limit such fluctuation, disturbance or interference at not expense to FCU or other customers. 1.7 System Capacity Limitations The equipment installed by FCU to distribute power is limited in size and is normally sized for safe and efficient delivery of power. Adding generation to this system, especially generation supplied by renewable sources which normally have low capacity factors, may quickly overload the existing equipment. Care must be taken when adding generation to avoid damaging FCU equipment. Also, when system penetration levels of distributed generation becomes large enough, accidental islanding of sections of the system becomes possible, and additional protective devices or systems, such as transfer trip equipment, may be needed for safe operation of the FCU system. Whenever one or more of the following limitations are exceeded, FCU may need to conduct an additional study and FCU may require additional equipment. Additional study is required if: a) The rated aggregate generation kVA on any distribution transformer after the addition of the new GF equals or exceeds 100% of the rating of the transformer b) The rated aggregate generation kVA on any protective device or feeder from the point of interconnection to the substation transformer exceeds 13.3% of the rating of that protective device or feeder c) The rated aggregate generation kVA on any feeder or portion of a feeder equals or exceeds 50% of the existing annual minimum load on that feeder or feeder section EXHIBIT A Rev 9.0 July 2011 7 d) The proposed GF results in more than 90kW of single-phase generation on one phase of a feeder when both the new and existing generation are included e) The proposed GF includes an induction machine 300kW or greater, or an aggregate of 300kW of induction generators 1.8 Submittal Requirement The Operator shall submit in a timely manner, sufficient design and specification information relating to the facilities to be installed by the Operator. FCU shall be entitled to review and approve or disapprove these facilities prior to their installation and energization. The Operator agrees to incorporate any reasonable design changes requested by FCU prior to, during, or after installation of the GF’s facilities. FCU’s approval or acceptance of any design and specification information related to the GF to be installed shall not be construed as an endorsement of such engineering plans, specifications, or other information. The following drawings and other documents must be submitted to FCU for approval before any construction is begun. a) Single-line diagram of the facility showing the sizes of all equipment and the system protection planned b) Cut sheets on all equipment planned including inverters, generators, fuses, circuit breakers, switches, etc. c) Capability curves on all synchronous and doubly fed induction generators. d) Short circuit calculations. 2.0 Standards and Definitions 2.1 Standards In all cases the current edition of the following standards should be referred to in design of the power plant, choice of equipment, and interconnection design. a) ANSI C84.1 American National Standard for Electric Power Systems and Equipment- Voltage ratings (60 Hertz) b) IEEE Std. 18 IEEE Standard for Shunt Capacitors c) IEEE Std. 32 IEEE Standard Requirements, Terminology, and Test Procedures for Neutral Grounding Devices d) IEEE Std. 141: IEEE Recommended Practice for Electric Power Distribution for Industrial Plants e) IEEE Std. 142: IEEE Recommended Practice for Grounding of Industrial and Commercial Power Systems f) IEEE Std. 242: IEEE Recommended Practice for Protection and Coordination of Industrial and Commercial Power Systems g) IEEE Std. 519: Recommended Practices and Requirements for Harmonic Control in Electric Power Systems h) IEEE Std. 665: IEEE Standard for Generation Station Grounding i) IEEE Std. 1015: IEEE Recommended Practice for Applying Low-Voltage Circuit Breakers Used in Industrial and Commercial Power Systems j) IEEE Std. 1036: IEEE Standard for Application of Shunt Power Capacitors k) IEEE 1547 IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems l) IEEE 1547.1 IEEE Standard Conformance Test Procedures for Equipment Interconnecting Distributed Resources with Electric Power Systems m) IEEE 1547.2 IEEE Application Guide for IEEE Std. 1547, IEEE Standard for Interconnecting Distributed Resources with Electric Power Systems n) IEEE Std. C2: National Electrical Safety Code EXHIBIT A Rev 9.0 July 2011 8 o) IEEE Std. C37.06: IEEE Standard for AC High-Voltage Circuit Breakers rated on a Symmetrical Current Basis-Preferred Ratings and Required Capabilities. p) IEEE C37.012: IEEE Application Guide for Capacitor Current Switching for AC High- Voltage Circuit Breakers q) IEEE C37.66: IEEE Standard Requirements for Capacitor Switches for AC Systems (1kV thru 38kV). r) IEEE C37.90 IEEE Standard for Relays and Relay Systems Associated with Electric Power Apparatus s) IEEE C37.90.1 IEEE Standard for Surge Withstand capability (SWC) Tests for Relay and Relay Systems Associated with Electric Power Apparatus. t) IEEE C37.90.2 IEEE Standard for Withstand Capability of Relay Systems to Radiated Electromagnetic Interference from Transceivers u) IEEE C37.90.3 IEEE Standard Electrostatic Discharge Tests for Protective Relays v) IEEE C37.95 IEEE Guide for Protective Relaying of Utility-Consumer Interconnections w) IEEE Std. C37.102 IEEE Guide for AC Generator Protection x) IEEE Std C62.41: IEEE Recommended Practice on Surge Voltages in Low-Voltage AC Power Circuits y) NERC PRC-024-1: Generator Frequency and Voltage Protective Relays z) NFPA 70: National Electrical Code aa) UL 1741: Inverters, Converters, Controllers and Interconnection System Equipment for use with Distributed Energy Resources . 2.2 Definitions The following definitions will be used throughout this document. • ANSI-American National Standards Institute • FCU-Fort Collins Utility Services • GF-Generating facility • IEEE-Institute of Electrical and Electronic Engineers • KVA-Kilovolt-amps • KW-Kilowatt • MW-Megawatt • NEC-National Electrical Code • NEMA-National Electrical Manufacturers Association • NESC-National Electrical Safety Code • Operator-Generating facility owner and operator, successors, heirs, agents, employees, and assigns • PCC-Point of common coupling • UL-Underwriters Laboratories • VAR-Volt-Amps reactive (reactive power) 3.0 GF Equipment and Installation Requirements 3.1 General Requirements The installation of any GF shall meet the relevant requirements of the National Electrical Code (NEC) and the National Electrical Safety Code (NESC). Where required by the municipality, the Operator cleared to move forward with the installation must obtain all necessary building permits, pass all applicable building department inspections, and meet other applicable requirements including but not limited to municipal code and Fort Collins Electric Service Rules and Regulations. Unless otherwise modified in this document, the interconnection must meet the requirements of IEEE Std. 1547. Where the requirements of this document vary from the requirements of IEEE Std. 1547, this document governs. EXHIBIT A Rev 9.0 July 2011 9 The Operator shall be solely responsible for protecting the GF and all associated equipment from abnormal distribution system conditions such as outages, short circuits, voltage or frequency variations, or other disturbances. FCU will not install equipment for the protection of the GF generator or other equipment. The GF equipment must be designed and operated so that it is capable of properly synchronizing the generator to the system, maintaining safe operation of the generation equipment, detecting any unusual operating condition, and disconnecting the generator from the system anytime damage to the generator or other equipment may occur. The equipment protection provided by the Operator will prevent the GF from adversely affecting the distribution system's capability of providing reliable service to other FCU customers. The GF must automatically disconnect itself from the system anytime system conditions are outside the ranges described in this document and is not permitted to reconnect to the system until system conditions return to normal and are maintained within the normal range for a minimum of five (5) minutes. 3.2 Interconnection Disconnect Switch Each GF installation must include a manually operated, lockable, disconnect switch with a visual break. The disconnect switch must be visible and accessible at all times by FCU personnel to allow the GF to be disconnected safely during maintenance or outage conditions. In the case of a PV system this disconnect switch must be located next to the FCU electric meter. In all cases the disconnect switch must be rated to interrupt the maximum output of the generator and must be rated for the voltage and fault current requirements of the GF and must meet all applicable NEMA, UL, ANSI, IEEE, and NEC standards as well as local and state electrical codes. The disconnect switch shall be permanently labeled with text indicating that the switch is for the GF. The labeling shall also clearly indicate the open and closed position of the switch. The disconnect switch must be located on the output or load side of the GF such that the entire GF can be isolated from FCU distribution system. If the site contains several generators, a single disconnect switch may be used providing its rating is sufficient for all generators and opening it produces a visible open point between all generators and the FCU system. Other devices such as circuit breakers or fuses may be considered as a substitute for a disconnect switch if each of the following conditions is met: a) If a circuit breaker is used it is draw-out and capable of being locked into the disconnected position b) If a fuse is used it is capable of being removed from the bus to provide a visual open point c) The Operator or Operator’s agents are available at all times to disconnect and remove this breaker or fuses whenever requested by FCU All lock-out and tag-out capabilities must also be available for the devices used and must be assessable to FCU personnel. 3.3 Dedicated Transformer and Additional Primary Protection If the GF rating is greater than 50kW the GF must be connected to the FCU by a dedicated transformer. The transformer must meet FCU standards and design criteria. The transformer must be labeled according to FCU practices. Most interconnecting transformers on the FCU system are protected with fuses. However, if a GF is rated at 1500 kVA or above, FCU may determine the fuse protection is insufficient to properly protect the FCU system. In this case, FCU may require that a dedicated three-phase interrupting device such as a recloser must be added to the transformer high-voltage side along with necessary relaying.. Moreover, any GF whose connection to the FCU distribution system increases the aggregate generation on any feeder, transformer, or portion of a feeder to 1500 kVA or above is subject to a separate study by FCU, and FCU may require the addition of a three-phase protective device on the primary side of the system. EXHIBIT A Rev 9.0 July 2011 10 3.4 Interrupting Devices Required Circuit breakers or other interrupting devices located at the Point of Common Coupling (PCC) must be certified or "Listed" (as defined in Article 100, the Definitions Section of the National Electrical Code) as suitable for their intended application. This includes being capable of interrupting the maximum available fault current expected at their location. The Operator’s GF Facility and associated interconnection equipment must be designed so that the failure of any single device will not potentially compromise the safety and reliability of FCU’s distribution system. 3.5 System Protective Functions The protective functions and requirements contained in this document are designed to protect FCU’s distribution system and not specifically the Operator’s GF. The Operator is solely responsible for providing adequate protection for the GF and all associated equipment. The Operator’s protective devices must not impact the operation of other protective devices utilized on the FCU distribution system in a manner that would affect FCU's ability to provide reliable service to its customers. The GF’s protective functions must sense abnormal conditions and disconnect the GF from the FCU distribution system during abnormal conditions. All GFs must be capable of sensing line-line-line, line-line, and line-ground faults on the distribution feeder supplying the GF and must disconnect from the line to protect both the line from further damage and the generator from damage due to excessive currents or unusual voltages. The settings of these relays will be coordinated with FCU substation relaying. For induction machines speed matching must be done automatically and shall match speed to less that 5% before closing the associated breaker. The minimum protective functions needed for various types of generators, and other requirements for system protection are shown below. Any machine that is not included in one of the following categories must be individually considered by FCU. 3.5.1 Synchronous Machines above 50kW to 100kW a) Over and under voltage functions (27/59) b) Over current trip functions. (50/51) which may be included in a breaker trip-unit or a fuse. c) Ground fault protection (50/51G) d) Over and under frequency functions. (81O/U) e) Sync Check (25) f) Phase-sequence or negative sequence voltage (47) g) A function to prevent the GF from contributing to the formation of an unintended island and to prevent the GF from reconnecting with the distribution system under abnormal conditions is required. h) Relay settings and test reports will be submitted to FCU for review. FCU will determine if an on-site inspection is required. 3.5.2 Synchronous Machines 100kW to and including 1000kW a) Interrupting devices must be 3-phase circuit breakers with electrical operation. b) Relays must be utility grade (must meet IEEE Std.C37.90, C37.91, C37.92 and C37.93) and must be independent from the generator control devices. c) Over and under voltage functions (27/59) d) Voltage restrained over current trip functions. (50/51V) e) Ground fault protection (50/51G) f) Over and under frequency functions. (81O/U) g) Sync Check (25) h) Phase-sequence or negative sequence voltage (47) EXHIBIT A Rev 9.0 July 2011 11 i) Reverse power (32) j) A function to prevent the GF from contributing to the formation of an unintended island and to prevent the GF from reconnecting with the distribution system under abnormal conditions is required. k) Relay settings and test reports will be submitted to FCU for review. FCU will determine if an on-site inspection is required. 3.5.3 Synchronous Machines 1000kW to and including 5000kW a) Interrupting devices must be 3-phase circuit breakers with electrical operation. b) Relays must be utility grade (must meet IEEE Std.C37.90, C37.91, C37.92 and C37.93) and must be independent from the generator control devices. c) Over and under voltage functions (27/59) d) Voltage restrained over current trip functions. (50/51V) e) Ground fault protection (50/51G) f) Over and under frequency functions. (81O/U) g) Negative Sequence Current (46) h) Loss of Field (40) i) Sync Check (25) j) Phase-sequence or negative sequence voltage (47) k) Reverse power (32) l) A function to prevent the GF from contributing to the formation of an unintended island and to prevent the GF from reconnecting with the distribution system under abnormal conditions is required. m) Relay settings and test reports will be submitted to FCU for review. 3.5.4 Doubly-Fed Induction Machines above 50kW to 100kW a) Over and under voltage functions (27/59) b) Over current trip functions. (50/51) which may be included in a breaker trip-unit or a fuse. c) Ground fault protection (50/51G) which may be included in a breaker trip-unit or a fuse d) Phase-sequence or negative sequence voltage (47) e) Speed matching to within 5% (15) f) If it is determined that it is possible for the machine to self-excite in this installation, the GF must include a function to prevent the GF from contributing to the formation of an unintended island and to prevent the GF from reconnecting with the distribution system under abnormal conditions. If it is determined that the machine cannot self-excite, evidence must be provided to FCU proving that this is the case and anti-islanding protection is not required. If such evidence does not meet FCU approval, anti-islanding protection is required. g) Relay settings and test reports must be submitted to FCU for review. FCU will determine if an on-site inspection is required. 3.5.5 Doubly-Fed Induction Machines 100kW to 5000kW a) Interrupting devices must be 3-phase circuit breakers with electrical operation. b) Relays must be utility grade (must meet IEEE Std.C37.90, C37.91, C37.92 and C37.93) and must be independent from the generator control devices. c) Over and under voltage functions (27/59) d) Over current trip functions. (50/51) which may be included in a breaker trip-unit or a fuse. e) Ground fault protection (50/51G) which may be included in a breaker trip-unit or a fuse f) Phase-sequence or negative sequence voltage (47) g) Negative sequence current (46) h) Over and under frequency (81 O/U) i) Reverse power (32) j) Speed matching to within 5% (15) EXHIBIT A Rev 9.0 July 2011 12 k) If it is determined that it is possible for the machine to self-excite in this installation the GF must include a function to prevent the GF from contributing to the formation of an unintended island and to prevent the GF from reconnecting with the distribution system under abnormal conditions. If it is determined that the machine cannot self-excite, evidence must be provided to FCU proving that this is the case and anti-islanding protection is not required. If such evidence does not meet FCU approval, anti-islanding protection is required. l) Relay settings and test reports must be submitted to FCU for review. FCU will determine if an on-site inspection is required. 3.5.6 Induction Machines above 50kW to 100kW a) Over and under voltage functions (27/59) b) Over current trip functions. (50/51) which may be included in a breaker trip-unit or a fuse. c) Ground fault protection (50/51G) which may be included in a breaker trip-unit or a fuse d) Phase-sequence or negative sequence voltage (47) e) Speed matching to within 5% (15) f) If it is determined that it is possible for the machine to self-excite in this installation the GF must include a function to detect and trip the unit during a self excited condition. This will prevent system over voltages and also prevent the GF from contributing to the formation of an unintended island. If it is determined that the machine cannot self-excite, evidence must be provided to FCU proving that this is the case and this protection is not required. If such evidence does not meet FCU approval, anti-islanding protection is required. g) Relay settings and test reports must be submitted to FCU for approval. FCU will determine if an on-site inspection is required. 3.5.7 Induction Machines 100kW to 5000kW a) Interrupting devices must be 3-phase circuit breakers with electrical operation. b) Relays must be utility grade (must meet IEEE Std.C37.90, C37.91, C37.92 and C37.93) and must be independent from the generator control devices. c) Over and under voltage functions (27/59) d) Over current trip functions. (50/51) which may be included in a breaker trip-unit or a fuse. e) Ground fault protection (50/51G) which may be included in a breaker trip-unit or a fuse f) Phase-sequence or negative sequence voltage (47) g) Negative sequence current (46) h) Over and under frequency (81 O/U) i) Reverse power (32) j) Speed matching to within 5% (15) k) If it is determined that it is possible for the machine to self-excite in this installation the GF must include a function to detect and trip the unit during a self excited condition. This will prevent system over voltages and also prevent the GF from contributing to the formation of an unintended island. If it is determined that the machine cannot self-excite, evidence must be provided to FCU proving that this is the case and this protection is not required. If such evidence does not meet FCU approval, anti-islanding protection is required. l) Relay settings and test reports will be submitted to FCU for review. FCU will determine if an on-site inspection is required. 3.5.8 Inverter Connected Systems 1000 kW and Below This may include photovoltaic systems (PV), some wind turbines, fuel cells, microturbines and all other machines that deliver their power to the utility system via an inverter or converter utilizing power electronics. EXHIBIT A Rev 9.0 July 2011 13 a) The Inverter must be tested to meet IEEE 1547, and IEEE 1547.1. One way to meet this requirement is to be tested to UL1741. However, it is not required that this testing be done by Underwriters Laboratories. Any recognized testing lab which confirms that the inverter meets IEEE 1547, and IEEE 1547.1 is satisfactory. If the inverter does not carry a UL sticker, FCU must be supplied with a letter from the manufacturer or an independent testing laboratory stating the inverter has been tested and meets the above IEEE standards. b) FCU will require over current trip functions (50/51) which may be included in a breaker trip-unit or a fuse. This device must be separate from the inverter control system and internal disconnect device. c) FCU will determine if an on-site inspection is required to observe calibration and testing of the inverter functions. 3.5.9 Inverter Connected Systems above 1000 kW to 5000kW This may include photovoltaic systems (PV) some wind turbines, fuel cells, microturbines and all other machines that deliver their power to the utility system via an inverter or converter utilizing power electronics. a) The Inverter must be tested to meet IEEE 1547, and IEEE 1547.1. One way to meet this requirement is to be tested to UL1741. However, it is not required that this testing be done by Underwriters Laboratories. Any recognized testing lab which confirms that the inverter meets IEEE 1547, and IEEE 1547.1 is satisfactory. If the inverter does not carry a UL sticker, FCU must be supplied with a letter from the manufacturer or an independent testing laboratory stating the inverter has been tested and meets the above IEEE standards. b) FCU will require over current trip functions (50/51) which may be included in a breaker trip-unit or a fuse. This device must be separate from the inverter control system and internal disconnect device. c) Ground fault protection (50/51G) which may be included in a breaker trip unit. This device must be separate from the inverter control system and internal disconnect device. d) Over and under frequency (81 O/U). This device must be separate from the inverter control system and internal disconnect device. e) Over and under voltage functions (27/59). This device must be separate from the inverter control system and internal disconnect device. f) FCU will determine if an on-site inspection is required to observe calibration and testing of the inverter and relay functions. 3.5.10 All machines above 5000kW Any type of GF of this size must be studied and considered individually by FCU. 3.6 Momentary Paralleling Generation Facilities At times an Operator may decide to install a system that may operate parallel to the FCU system only momentarily (normally less than 0.1 seconds). With FCU’s approval, the transfer switch or system used to transfer the Operator’s loads from FCU’s distribution system to the Operator’s GF may be used in lieu of the protective functions required for parallel operation. 4.0 Facility Grounding In all cases the GF grounding system must not adversely impact FCU grounding or ground fault protective relaying. The GF grounding must not cause high voltages to occur under any condition either normally occurring or occurring during a system fault such as allowing high voltages to exist on the un-faulted phases during a single-line-to-ground fault. EXHIBIT A Rev 9.0 July 2011 14 4.1 Equipment Bonding Conductor The Operator must install an equipment-grounding conductor, in addition to the ungrounded conductors and grounded conductor (neutral), between the GF and the distribution system. The grounding conductor must be permanent, electrically continuous, and must be capable of safely carrying the maximum fault current that could be imposed it by the systems to which it is connected. Additionally, the equipment-grounding conductor must be of sufficiently low impedance to facilitate the operation of over current protection devices under fault conditions. All conductors shall comply with the National Electrical Code (NEC). The GF must not be designed or implemented such that the earth becomes the sole fault current path. 4.2 Surge Protection It is strongly recommended but not required that a surge protective device (SPD) be utilized to protect GF equipment. 4.3 System Grounding FCU maintains an effectively grounded distribution system and requires that all GFs be designed to contribute to an effectively grounded system. Effective grounding prevents the occurrence of excessively high voltages during ground faults and protects existing FCU equipment. Effective grounding of the GF may desensitize existing FCU ground fault protection, which could require FCU ground fault relay settings changes or modifications in the design of the GF. The transformer supplied to interconnect the GF voltage to the FCU system will normally be a grounded-wye to grounded-wye transformer. This connection will not provide a grounding source by itself and will not provide an effectively grounded system from the GF side of the interconnection unless effective grounding of GF is provided. When designing the grounding system for the GF, the designer should consider the condition that will result when a ground fault occurs on the line serving the GF. This ground fault would be cleared on the FCU side of the line by opening a breaker or recloser in the FCU substation. This will result in momentarily islanding the line on the GF until it opens its breaker. Under this condition, where the line is islanded and being supplied by the GF, the system must remain effectively grounded. Effective grounding shall be defined by IEEE Std.142 which states that to be considered effectively grounded both of the following two conditions must be met: a) The ratio of zero-sequence reactance to positive-sequence reactance (X0/X1) must be positive and three or less. b) The ratio of zero-sequence resistance to positive-sequence reactance (R0/X1) must be positive and less than 1. The GF system equivalent (Thevenin equivalent) impedance must meet the criteria for effective grounding stated above. The networks used in determining this impedance, and other fault current calculations for the plant, will include the positive, negative, and zero sequence networks of the step- up transformer connected to the FCU system, all other transformers between the generator and the point of common coupling, the generator subtransient, positive, negative and zero sequence values, the neutral grounding device for the generator, the grounding transformer and neutral grounding device (if used) and any significant cable runs. The GF shall maintain an effectively grounded system under normal operating conditions while operating in connection with FCU lines. The short circuit contribution ratio (SCCR) of the GF is defined as the ratio of the GF short circuit contribution to FCU’s contribution to a short circuit (IscGF/IscFCU) for either a three-phase or single- line-to ground fault measured at the high voltage side of the transformer stepping up from the generation voltage to the FCU voltage. The GF must be grounded in such a way that the SCCR for a line-ground fault calculated at the high voltage side of the transformer connecting the GF to FCU is less than 3% while still achieving effective grounding as defined above. If this SCCR ratio is greater than 3% FCU must do a study to EXHIBIT A Rev 9.0 July 2011 15 determine if re-setting ground fault relays on the existing FCU system is required. In rare cases connecting a certain GF to a particular feeder may not be practical due to protection issues or special protection techniques may be needed to make the connection safe. Proper grounding of the GF can be achieved in a number of ways. FCU may at its discretion accept any of the following methods: a) Solidly grounding the generator or installing a solidly grounded grounding transformer (zig-zag or grounded wye-delta transformer). While a solidly grounded generator is acceptable to FCU if all other requirements are met, it must be used with care. ANSI standards generally require that for a synchronous generator the ground fault current must be limited to the three-phase fault current. This usually requires a resistance or reactance be used for grounding the generator neutral. Also, a solidly grounded generator may conduct large amounts of harmonic currents. There may be some unbalanced voltage at the terminals of the generator. This can cause circulating current through the generator if it is solidly grounded which may make de-rating of the generator necessary. If a solidly grounded system is used the designer must consider and plan for all issues that may result. b) Resistance grounding. A resistance grounded generator or grounding transformer with a resistance placed between neutral and ground may be used if it meets the requirements of effective grounding. c) Reactance grounding. A reactance grounded generator or grounding transformer with a reactor between the transformer neutral and ground may be used if it meets the requirements of effective grounding. d) Other methods may be suggested for consideration by FCU. If the Operator desires to generate at the FCU primary voltage and to connect the generators directly to the FCU system without the use of an interconnecting transformer, FCU must first conduct a study of the connection. FCU will determine, as a result of the study, the grounding and other requirements necessary for this type of connection. 5.0 Prevention of Interference and Unacceptable Operating Conditions The Operator must not operate the GF in any way that causes a system disturbance or that superimposes a voltage or current upon FCU’s distribution system that results in interference with FCU operations, service to FCU’s customers, or other FCU equipment and facilities. When FCU suspects that interference with electric service to other FCU customers is occurring, and such interference exceeds FCU Standards, FCU reserves the right at its expense to install special test equipment as may be required to perform a disturbance analysis and monitor the operation of the GF to evaluate the quality of power produced. If the GF is demonstrated to be the source of the interference, and it is demonstrated that the interference produced exceeds FCU Standards or generally accepted industry standards, FCU may, without liability, disconnect the GF from the FCU distribution system.It shall be the responsibility of the Operator to eliminate any interference caused by the GF and the Operator must diligently pursue and take corrective action, at the Operator’s own expense, to eliminate undesirable interference caused by the GF. The GF will be reconnected to the FCU system only after the Operator demonstrates to the satisfaction of FCU that the cause of the interference has been remedied. The Operator’s protective devices must prevent the GFs from contributing to an island. If the FCU feeder to which the GF is connected is de-energized for any reason, the GF must sense this and disconnect itself within 2 seconds of the de-energization of the feeder. EXHIBIT A Rev 9.0 July 2011 16 5.1 Voltage Regulation The GF shall not actively regulate the voltage at the point of common coupling (PCC) unless the effects of this are first reviewed and approved by FCU. If a study has been done by FCU which determines that it is advantageous for a GF to actively control its voltage, FCU will inform the Operator and the Operator will be required to control the GF’s terminal voltage. 5.2 System Voltage The voltage operating range limits for GFs shall be used as a protection function that responds to abnormal conditions on FCU’s distribution system. The FCU voltage operating range is normally - 95% to 105% of the nominal voltage at the electrical service point, and 92% to 105% of nominal voltage at the utilization point, as required by ANSI C84.1. All GFs must be capable of operating within the voltage range normally experienced on FCU’s distribution system. Ocassional excursions outside this range may occur, and tripping of the GF is not suggested until the voltage range is less than 88% or more than 110% of the nominal voltage. The operating range and GF protection shall be selected in a manner that minimizes nuisance tripping between 88% and 110% of nominal voltage. GFs must not energize or, after a trip, re-energize FCU’s circuits whenever the voltage at the PCC deviates from the allowable voltage operating range allowed by ANSI C84.1 Table 1 voltage range (95-105% of nominal voltage at the service or 92-105% of nominal voltage at the utilization point). Whenever the FCU distribution system voltage at the PCC varies from normal (nominally 120 volts) by the amounts as set forth in Table 5-1 the GF’s protective functions shall disconnect the generator(s) from the FCU distribution system with delay times no longer than those shown. Table 5-1: Voltage trip settings. (Adapted from IEEE 1547-2003 and ANSI C84.1-2006) Voltage at Point of Common Coupling (% of base Voltage) Maximum Tripping Time Delay (seconds/cycles) V-PCC < 50% 0.16 / 10 50% < V-PCC < 88% 2.0 / 120 92% < V-PCC < / 105% Normal operating range 110% < V-PCC < 120% 1.0 / 60 120% < V-PCC 0.16 / 10 5.3 System Frequency The GF shall operate in synchronism with the FCU distribution system. Whenever FCU’s distribution system frequency at the PCC varies from normal (nominally 60 Hertz) by the amounts as set forth in Table 5-2 the GF’s protective functions shall disconnect the generator(s) from the FCU distribution system with delay times no longer than those shown. Table 5-2: Frequency Settings (Adapted from IEEE 1547-2003 and NERC PRC-024-1) GF Facility Size Frequency (Hz) Maximum Tripping Time Delay (sec./cycles) GF<59.3 0.16/10 59.3 ≤ GF ≤ 60.5 Continuous Operation GF 30kW or Less GF>60.5 0.16/10 GF<57.8 0.16/10 57.8 ≤ GF ≤ 58.0 4/240 58.0 < GF ≤ 58.5 40/2,400 GF > 30kW 58.5 < GF ≤ 59.0 200/12,000 EXHIBIT A Rev 9.0 July 2011 17 59.0 < GF < 59.5 1,800/108,000 59.5 ≤ GF ≤ 60.5 Continuous Operation 60.5 < GF ≤ 61.5 600/36,000 61.5 < GF 0.16/10 Unless some other anti-islanding scheme is employed, the GF should disconnect due to low frequency resulting from islanding the feeder load on the GF. The frequency settings must be adjusted to insure that, during the lowest loading level on the feeder, the resulting frequency change of the GF when it is islanded with those feeder loads , should cause the under frequency relaying to disconnect the the generators within two seconds. 5.4 Synchronization Synchronous machine automatic synchronizers and sync-check relays must be set as shown in Table 5-3. Table 5-3: Synchronizer/sync check relay settings. (Adapted from IEEE 1547-2003) Rating of GF (kVA) Maximum Slip Rate (Hz) Maximum Voltage Difference (%V) Maximum Phase Angle Difference (deg). 0-500 0.3 10 20 500-1500 0.2 5 10 1500 and above 0.1 3 10 5.5 Flicker Any voltage flicker at the PCC caused by the GF should not exceed the limits defined by the “Maximum Borderline of Irritation Curve” identified in IEEE 519, IEEE 141, and IEE 1453. This limit is shown in Figure 5-1. This requirement is necessary to minimize the adverse voltage effects which may be experienced by other customers on the FCU distribution system due to the operation of the GF. Induction generators may only be connected to the system and brought up to synchronous speed (as an induction motor) if these flicker limits are not exceeded. EXHIBIT A Rev 9.0 July 2011 18 Figure 5-1: Allowable voltage flicker vs. time (reproduced from IEEE Std. 141). 5.6 Harmonics Harmonic distortion measured at the PCC must be in compliance with IEEE 519 and IEEE 1547. Harmonic current injection limits are shown in Table 5-4. Table 5-4: Maximum harmonic current distortion as a percentage of fundamental frequency at the point of common coupling. (Adapted from IEEE 1547-2003) Individual Harmonic Order h (Odd Harmonics Only) h<11 11≤h<17 17≤h<23 23≤h<35 35≤h TDD 4.0 2.0 1.5 0.6 0.3 5.0 The even harmonic limits must be 25% of those shown in Table 5-4. GF’s must not inject direct current greater than 0.5% of rated output into the FCU distribution system. Any device causing a DC offset such as a half-wave converter shall not be allowed. 5.7 Power Factor The power factor at the point of common coupling (PCC) with FCU (the low voltage terminals of the transformer connecting the GF to FCU) shall always remain within 0.95 lagging (VARs going into the site) to 0.95 leading (Vars going out of the site). The only exception to this requirement is a GF consisting of an inverter connected generator 10 kW or less. For this exception it is expected that the site power factor will deteriorate anytime the GF is operating, and FCU will provide the VARs needed at the site. However the site power factor must be maintained such that it would remain within the limits stated above if the GF was not operating and, as a result, the power factor was allowed to revert to the value it had before the GF was added. EXHIBIT A Rev 9.0 July 2011 19 a) Each synchronous generator in a GF shall be capable of operating at any point within a power factor range of 0.95 leading (Vars going into the generator) to 0.95 lagging (Vars going out of the generator). Synchronous generators should automatically control power factor and should be set to deliver VARs to the system as needed to keep the power factor at the PCC with FCU to the range required by this section. For generators other than synchronous generators, operation outside this power factor range is acceptable provided the cumulative power factor of the customer’s entire facility is kept within the range noted. This may be done using capacitor banks, controlling the inverter settings, adding static VAR compensators (SVC) or synchronous condensers, or other means agreeable to both the GF and FCU. If capacitor banks are used they shall be sized and installed per IEEE Stds. 18, 1036, C37.012, C37.06, C37.66, and 1015. Capacitors may need to be stepped and switched to meet the power factor requirements above. Before the addition of capacitors the GF should completely study the effects of the capacitor additions on the resonance conditions and harmonic values that will result. If the GF’s addition of capacitors causes adverse resonance or harmonics effects on FCU’s system, the GF shall be required to pay for any modifications needed to mitigate the problem. 6.0 Monitoring Provisions The following monitoring and metering requirements must be met by any Operator connecting a GF to the FCU system. . 6.1 Metering GFs larger than 10kW and less than or equal to 100 kW require a minimum of a form 9s metering installation. GFs larger than 100 kW will require revenue metering capable of recording the following components: a) Time of use (TOU) b) Harmonic measuring capability c) Four quadrant capability d) MV90 capable e) Form 9S f) The revenue meter must measure the aggregate load of the Operator’s facility including the GF. 6.2 Monitoring and Control Requirements Each non-inverter connected generating facility of 100 kW or larger shall be required, at the discretion of FCU, to have FCU supplied equipment that will be used for monitoring and control of the facility. The Operator shall be responsible for all hardware, software, and any installation costs of FCU provided equipment associated with the co-gen installation. FCU will provide a remote monitoring and control equipment enclosure containing the following equipment at the Operator’s expense: • 900 MHZ spread spectrum radio • SEL 351 relay • Terminal blocks as required • Various control switches, CT blocks, etc as required EXHIBIT A Rev 9.0 July 2011 20 • UPS power supply with battery backup A YAGI antenna will be provided and shall be installed by the Operator at a location designated by FCU. The Operator will be responsible for installing the antenna coax specified by FCU. The Operator must use a certified installer to terminate the coax. The Operator shall also be responsible for mounting the equipment enclosure. The monitoring and control system shall be designed to allow FCU to perform the following: • Trip the generator breaker for unstable system conditions such as frequency, voltage and fault conditions • Place a HOT LINE TAG on the generator breaker that would block its close circuit to prevent its closing • Initiate a generator startup thru SCADA for future power dispatching by FCU (This would normally be blocked locally unless requested by the Operator.) • Monitor the generator breaker status to determine if the generator is on or off line • Monitor generator output power(real and reactive), voltage, harmonics etc. (This will require current and voltage inputs from the GF equipment.) The GF Operator must provide all the necessary interface design to accomplish the functions listed above. The GF Operator must submit drawings of the proposed design to FCU for review. 7.0 Testing 7.1 Commissioning Tests In addition to any commissioning tests required by the owner of the GF or manufacturer of equipment used, the following tests must be performed before operation of the GF. The Operator must notify FCU two weeks in advance of the time of the testing so that a FCU representative may observe any tests required by FCU. a) Visual inspection to ensure proper grounding. b) Visual inspection shall confirm the presence of the isolation device described in section 3.2 and the device shall be tested for operation. c) Trip tests must be performed to prove each device which is required to trip any breaker is capable of doing so. d) Relays or protective functions provided by the generator manufacture must be tested and relay test reports must be made available to FCU. All of the functions required in Section 3.5 must be tested. Inverter connected devices tested by an independent testing laboratory as required in Section 3.5 are not be required to perform this test. e) In the case of a synchronous generator the Operator must prove that the generator is connected to the system with the proper phase rotation and that all three phases of generator voltage match those of the system at the same instant in time. This test is commonly known as “phasing out” the generator. f) In the case of a synchronous generator the Operator must prove that the generator synchronizer and sync check relay is capable of connecting the generator to the system properly and in synchronism. This test must be done before the generator is allowed to actually connect to the system. g) The ability of the control system to disconnect the generator within two seconds in the event of islanding must be tested. 7.2 Periodic Maintenance Tests An Operator must maintain his or her equipment in good order and in compliance with all manufacturers suggested periodic maintenance. If it is discovered that an Operator is not properly maintaining his or her equipment, FCU may disconnect the GF until such time that the Operator can prove that he or she has provided all required maintenance needed to allow the GF to operate properly and safely. EXHIBIT A Rev 9.0 July 2011 21 FCU reserves the right to inspect the GF equipment whenever it appears the GF is operating in a manner that is hazardous to the FCU system. Functional testing must be performed every year to prove the proper operation of the isolation device and all breakers and relays. For all GFs consisting of synchronous machines with aggregate ratings of larger than 1000kW, no less than once every three years all protective functions must be re-tested and calibrated to prove their operation complies with the requirements contained in this document. The Operator must maintain written records of these tests and these records will be made available to FCU on request. Battery systems used for generator control or protective relaying must be maintained and periodically tested as suggested by the battery manufacturer. 7.3 Qualified Personnel All testing and calibration shall be done by qualified personnel. FCU will provide a list of contractors qualified to provide this service. 8.0 Design Changes After the GF begins operation any design changes, such as the addition of more generation, must be submitted to FCU for review. Protective devices or any other requirements listed in this document must not be modified or their settings changed without approval of FCU. 9.0 Liability and Insurance In no event shall FCU be held responsible for the safety, reliability, design, or protection of the GF. Compliance with these interconnection standards does not mean the GF is safe to operate and the Operator is solely responsible for making a determination about whether the GF is safe to operate. Nothing herein shall be construed to create any duty to, any standard of care with reference to, or any liability to any person who is not a party to an arrangement or agreement between FCU and the Operator pursuant to these requirements. FCU is not liable for damages caused to the facilities, improvements or equipment of the Operator by reason of the operation, faulty operation or non- operation of FCU facilities. To the extent permitted by law, tThe Operator shall be solely responsible for and shall defend, indemnify and hold FCU harmless from and against any and all claims or causes of action for personal injury, death, property damage, loss or violation of governmental laws, regulations or orders, which injury, death, damage, loss or violations occurs on or is caused by operation of equipment or facilities on the Operator’s side of the point of connection. Notwithstanding the above and to the extent permitted by law, the Operator shall be solely responsible for and shall defend, indemnify and hold harmless FCU from and against any and all claims or causes of action for personal injury, death, property damage or loss or violation of governmental laws, regulations or orders, wherever occurring, which injury, death, damage, loss or violation is due solely to the acts of omissions of such Operator, including but not limited to the use of defective equipment or faulty installation or maintenance or equipment by such party. However, nothing contained in this section shall be construed as relieving or releasing either party from liability or personal injury, death, property damage or loss, or violation of governmental laws, regulations or orders, wherever occurring, resulting from its own negligence or the negligence of any of its officers, servants, agents or employees. In the event of concurrent negligence, liability shall be apportioned between the parties according to each party’s respective fault. Neither the Operator nor FCU shall be liable to the other or any other third party, in contract or in tort or otherwise, for loss of use of equipment and Deleted: T Deleted: EXHIBIT A Rev 9.0 July 2011 22 related expenses, expense involving cost of capital, claims of customers of FCU or the Operator, as applicable, loss of profits or revenues, cost of purchase or replacement power, or any indirect, incidental or consequential loss or damage whatsoever. The Operator shall pay all costs that may be incurred by FCU in enforcing the indemnity described herein. Each party’s liability to the other party for any loss, cost, claim, injury, liability, or expense, including reasonable attorney’s fees, relating to or arising from any act or omission in its performance of this agreement, shall be limited to the amount of direct damage actually incurred. In no event shall either party be liable to the other party for any indirect, incidental, special, consequential, or punitive damages of any kind whatsoever. For systems of ten kW or more, the Operator, at its own expense, except when the Operator is a governmental entity that self-insures in accordance with Colorado law, shall secure and maintain in effect during connection of its GF to the FCU system, liability insurance with a combined single limit for bodily injury and property damage of not less than $300,000 (Three Hundred Thousand Dollars) each occurrence. Such liability insurance shall not exclude coverage for any incident related to the subject GF or its operation. Except when the Operator is a governmental entity that self-insures in accordance with Colorado law, FCU shall be named as an additional insured under the liability policy. For systems above 500 kW and up to one megawatt, the Operator, at its own expense, except when the Operator is a governmental entity that self-insures in accordance with Colorado law, shall secure and maintain in effect during connection of its GC to the FCU system, liability insurance with a combined single limit for bodily injury and property damage of not less than $2,000,000 (Two Million Dollars) for each occurrence. Insurance coverage for systems greater than one megawatt shall be determined on a case-by-case basis by FCU and shall reflect the size of the installation and the potential for system damage. Any insurance policy required herein shall include that written notice be given to FCU at least 30 days prior to any cancellation or reduction of any coverage. Such liability insurance shall provide, by endorsement to the policy, that FCU shall not by reason of its inclusion as an additional insured incur liability to the insurance carrier for the payment of premium of such insurance. A copy of the liability insurance certificate must be received by FCU prior to GF operation. Certificates of insurance evidencing the requisite coverage and provision(s) shall be furnished to FCU prior to date of interconnection of the generation system. FCU shall be permitted to periodically obtain proof of current insurance coverage from the Operator in order to verify proper liability insurance coverage. The Operator will not be allowed to commence or continue interconnected operations unless evidence is provided that satisfactory insurance coverage is in effect at all times. EXHIBIT A Rev 9.0 July 2011 23 APPENDIX A-TYPICAL ONE-LINE INDUCTION GENERATOR BETWEEN 50KW AND 100KW EXHIBIT A Rev 9.0 July 2011 24 APPENDIX B-TYPICAL ONE-LINE INVERTER CONNECTED GENERATOR BELOW 1000KW. EXHIBIT A Rev 9.0 July 2011 25 APPENDIX C-TYPICAL ONE-LINE SYNCHRONOUS GENERATOR 50KW AND ABOVE EXHIBIT A Rev 9.0 July 2011 26 APPENDIX D-TYPICAL ONE-LINE INDUCTION GENERATOR LARGER THAN 100KW EXHIBIT A Rev 9.0 July 2011 27 APPENDIX E-TYPICAL ONE-LINE INVERTER CONNECTED GENERATOR LARGER THAN 1000KW EXHIBIT A DATE: July 19, 2011 STAFF: Wanda Krajicek AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 10 SUBJECT Second Reading of Ordinance No. 082, 2011, Calling a Special Municipal Election to Be Held in Conjunction with the November 1, 2011 Larimer County Coordinated Election. EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on July 5, 2011, calls a Special Municipal Election to be held in conjunction with the November 1, 2011 Larimer County Coordinated Election, and preserves the opportunity for Council to place initiated or referred issues on the November ballot. If Council decides to place any measures on the ballot it would need to do so no later than at its August 16 meeting. If Council does not take action by ordinance or resolution before the statutory deadline (September 2) to certify ballot language to Larimer County, the election will be cancelled and the provisions of this Ordinance will be of no further force and effect. This Ordinance does not submit a specific measure to the November 1, 2011 ballot. However, a group of citizens is currently circulating an initiative petition proposing a prohibition on the establishment, operation or licensing of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused product manufacturing within the city of Fort Collins. The deadline to submit the petition to the City Clerk’s Office is July 19, 2011. Adoption of this Ordinance is a required step in preserving the option for City Council to submit the initiated ordinance, and/or any other ballot measures that Council may desire, at the November 1, 2011 Coordinated Election. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Wanda Krajicek AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 16 SUBJECT First Reading of Ordinance No. 082, 2011, Calling a Special Municipal Election to Be Held in Conjunction with the November 1, 2011 Larimer County Coordinated Election. EXECUTIVE SUMMARY This Ordinance calls a Special Municipal Election to be held in conjunction with the November 1, 2011 Larimer County Coordinated Election, and preserves the opportunity for Council to place initiated or referred issues on the November ballot. If Council decides to place any measures on the ballot it would need to do so no later than at its August 16 meeting. If Council does not take action by ordinance or resolution before the statutory deadline (September 2) to certify ballot language to Larimer County, the election will be cancelled and the provisions of this Ordinance will be of no further force and effect. This Ordinance does not submit a specific measure to the November 1, 2011 ballot. However, a group of citizens is currently circulating an initiative petition proposing a prohibition on the establishment, operation or licensing of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused product manufacturing within the city of Fort Collins. The deadline to submit the petition to the City Clerk’s Office is July 19, 2011. Adoption of this Ordinance is a required step in preserving the option for City Council to submit the initiated ordinance, and/or any other ballot measures that Council may desire, at the November 1, 2011 Coordinated Election. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 082, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD IN CONJUNCTION WITH THE NOVEMBER 1, 2011 LARIMER COUNTY COORDINATED 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 such measure, to have the same considered by the electors of the City at the polls; and WHEREAS, an initiative petition proposing a ballot measure that would prohibit the establishment, operation or licensing of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused product manufacturing within the City of Fort Collins has been approved for circulation and is due to be filed with the City Clerk’s Office on July 19, 2011; and WHEREAS, said petition requests a special election on November 1, 2011; and WHEREAS, while the City Council may, by resolution, submit any question or proposed ordinance or resolution, or submit any initiative or referendum measure, to a vote of the people at a special election at any time prior to the statutory deadline to certify ballot content to the County Clerk, the decision to call a special election must be made by ordinance at an earlier date; and WHEREAS, for the foregoing reasons, the City Council wishes to call a special municipal election on November 1, 2011, to be held in conjunction with the Larimer County Coordinated Election, for the purpose of submitting to the electorate of the City any ballot issues approved by the City Council prior to the deadline for certifying ballot content to the Larimer County Clerk and Recorder. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That a Special Municipal Election in the City is hereby called for Tuesday, November 1, 2011, which shall be held in conjunction with the Larimer County Coordinated Election and conducted in such form as shall be determined by the Larimer County Clerk and Recorder. Section 2. That the provisions of the Uniform Election Code of 1992 are hereby adopted with respect to the conduct of said election in lieu of the provisions of the Municipal Election Code of 1965. Section 3. That, notwithstanding any provision in the State Statutes to the contrary, the City Council may, by resolution, submit to the voters at said election any citizen-initiated or City- initiated measure that complies with the requirements of the City Charter, irrespective of the nature of such measure. Section 4. That the City Clerk is hereby directed to certify the ballot content for the Special Municipal Election to the Larimer County Clerk no later than September 2, 2011. Section 5. That the City Manager is hereby authorized to enter into an intergovernmental agreement with Larimer County for conduct of the election, pursuant to Section 1-7-116(2) of the Colorado Revised Statutes. Section 6. That, in the event that the City Council does not take action by ordinance or resolution prior to September 2, 2011 to submit any ballot measures to the voters at the November 1, 2011 Larimer County General Election, the election provided for herein shall be cancelled and the provisions of this Ordinance shall be of no further force and effect. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. Mayor ATTEST: City Clerk Passed and adopted on final reading this 19th day of July, A.D. 2011. Mayor ATTEST: City Clerk DATE: July 19, 2011 STAFF: Lindsay Kuntz Mark Sears AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 11 SUBJECT Items Relating to the Access Road at Soapstone Prairie Natural Area. A. Second Reading of Ordinance No. 083, 2011, Authorizing the Transfer to Larimer County of Public Right-of- Way Easements Acquired by the City for the Reconstruction of Rawhide Flats Road. B. Second Reading of Ordinance, No. 084, 2011, Authorizing the Conveyance of Access Easements to Three Private Land Owners within the Soapstone Prairie Natural Area. EXECUTIVE SUMMARY To complete the process of improving Rawhide Flats Road, the City has requested that Larimer County vacate sections of road right-of-way that were abandoned in 2008 when the road was realigned and reconstructed by the City to provide access to Soapstone Prairie Natural Area. The County conditioned its approval of the road improvements on the City’s follow up to request this vacation in order to stop the unnecessary public use of the old abandoned road areas and to allow the land to revert to the surrounding landowner(s). Once the sections of right-of-way are vacated, the ownership will revert to the adjacent landowners. In connection with the vacation of the unneeded sections of right- of-way, the City is proposing to transfer to the County six new right-of-way easements that the City acquired to build the realigned portions of the improved road. This transfer will establish that the easements are held by Larimer County as public road easements for Rawhide Flats Road along with the other segments of the Road, and that the right-of-way being vacated is no longer needed. The City has also asked the County to vacate any remaining public road rights-of-way within Soapstone Prairie Natural Area. This action will establish that Rawhide Flats Road north of the Natural Area boundary line is a private road owned by the City for the sole purpose of providing access to Soapstone Prairie Natural Area. There are currently three property owners with in-holding properties within Soapstone Prairie Natural Area. When this section of Rawhide Flats Road is vacated, these owners will lose their legal access to their properties. In order to continue to provide these owners legal access to their property, the City will need to grant each owner an access easement from the boundary of the Natural Area to their property line. The access easements will follow the same alignment as the existing road on the Soapstone Prairie Natural Area. These Ordinances were unanimously adopted on First Reading on July 5, 2011. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Lindsay Kuntz Mark Sears AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT Items Relating to the Access Road at Soapstone Prairie Natural Area. A. First Reading of Ordinance No. 083, 2011, Authorizing the Transfer to Larimer County of Public Right-of-Way Easements Acquired by the City for the Reconstruction of Rawhide Flats Road. B. First Reading of Ordinance, No. 084, 2011, Authorizing the Conveyance of Access Easements to Three Private Land Owners within the Soapstone Prairie Natural Area. EXECUTIVE SUMMARY To complete the process of improving Rawhide Flats Road, the City has requested that Larimer County vacate sections of road right-of-way that were abandoned in 2008 when the road was realigned and reconstructed by the City to provide access to Soapstone Prairie Natural Area. The County conditioned its approval of the road improvements on the City’s follow up to request this vacation in order to stop the unnecessary public use of the old abandoned road areas and to allow the land to revert to the surrounding landowner(s). Once the sections of right-of-way are vacated, the ownership will revert to the adjacent landowners. In connection with the vacation of the unneeded sections of right- of-way, the City is proposing to transfer to the County six new right-of-way easements that the City acquired to build the realigned portions of the improved road. This transfer will establish that the easements are held by Larimer County as public road easements for Rawhide Flats Road along with the other segments of the Road, and that the right-of-way being vacated is no longer needed. The City has also asked the County to vacate any remaining public road rights-of-way within Soapstone Prairie Natural Area. This action will establish that Rawhide Flats Road north of the Natural Area boundary line is a private road owned by the City for the sole purpose of providing access to Soapstone Prairie Natural Area. There are currently three property owners with in-holding properties within Soapstone Prairie Natural Area. When this section of Rawhide Flats Road is vacated, these owners will lose their legal access to their properties. In order to continue to provide these owners legal access to their property, the City will need to grant each owner an access easement from the boundary of the Natural Area to their property line. The access easements will follow the same alignment as the existing road on the Soapstone Prairie Natural Area. BACKGROUND / DISCUSSION To provide access to Soapstone Prairie Natural Area, the Natural Areas Program (NAP) reconstructed Rawhide Flats Road to meet the required County road standards. Prior to the reconstruction, the road went through several natural drainage channels. County road standards required the City to realign Rawhide Flats Road in several locations, out of the drainage ways and away from the existing right-of-way. The realignment of the road required the City to acquire six new public right-of-way easements from private property owners. At the time of approval of the new road, the County conditioned its approval on future vacation of the obsolete sections of the old right-of-way. City staff plans to initiate the process of requesting that the County Commissioners vacate the abandoned road rights- of-way in an effort to stop the public use of these old road areas and to allow the land to revert to the surrounding landowner(s). The old road was removed, reseeded with native grass seed, and fenced off. However, neighboring residents have removed the fences and resumed driving across these abandoned rights-of-way, since, technically, they are still public road rights-of-way. City staff is recommending that the City transfer these six right-of-way easements to Larimer County, to establish that these new easement areas are held by Larimer County as public road easements for Rawhide Flats Road, and to affirm that the sections of right-of-way being vacated are no longer needed. COPY COPY COPY COPY July 5, 2011 -2- ITEM 17 The NAP has acquired all the land north of the Natural Area boundary line shown on Attachment 2, with the exception of three privately owned in-holdings. The NAP is requesting the County Commissioners vacate all remaining public rights-of-way, including prescriptive rights, across the land now known as Soapstone Prairie Natural Area. Vacating this right-of-way will establish that Rawhide Flats Road north of the Natural Area boundary line is a private road owned by the City for the sole purpose of providing access to Soapstone Prairie Natural Area. City staff is recommending that the City grant individual access easements to each of the three privately held in-holdings to maintain their ability to legally access their properties across the lower portion of Soapstone Prairie Natural Area. Once the Ordinances have passed, the City will grant the access easements to the private in-holding owners contingent upon the road vacation, initiate the road vacation process with the County, and transfer the six right-of-way easements to the County. ENVIRONMENTAL IMPACTS The abandoned portion of Rawhide Flats Road was reseeded to native grasses and forbs during the construction project. Also, three new stream crossings were constructed as part of the new road construction thereby eliminating three low water crossings. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. BOARD / COMMISSION RECOMMENDATION On June 8, 2011, the Land Conservation and Stewardship Board voted unanimously to approve the recommendation that City Council approve an ordinance authorizing transfer of the six new public right-of-way easements to the County and three access easements to the private in-holding property owners. PUBLIC OUTREACH Property owners surrounding the affected area of Rawhide Flats Road were contacted by mail detailing the City’s plans of vacating the old right-of-way areas. This information also included a detailed map showing the proposed road vacations. ATTACHMENTS 1. Vicinity Map - Soapstone Prairie Natural Area 2. Map of Access Easements and Right of Way Areas to Be Conveyed 3. Map of Right-of-Way to Be Vacated 4. Land Conservation and Stewardship Board Minutes, June 8, 2011 ORDINANCE NO. 083, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE TRANSFER TO LARIMER COUNTY OF PUBLIC RIGHT OF WAY EASEMENTS ACQUIRED BY THE CITY FOR THE RECONSTRUCTION OF RAWHIDE FLATS ROAD WHEREAS, in 2008, the City reconstructed Rawhide Flats Road (the “Road”), located in northern Larimer County, to provide better access to Soapstone Prairie Natural Area; and WHEREAS, in order to meet the County’s road standards the City was required to realign portions of the Road; and WHEREAS, in connection with the County’s approval of the City’s improvements to the Road, the County conditioned its approval on the eventual vacation of the portions of the Road that would be abandoned under the new alignment; and WHEREAS, the City obtained six right-of-way easements totaling approximately 33.5 acres from neighboring property owners in order to realign the Road (the “Easements”); and WHEREAS, the City has asked Larimer County to vacate the portions of the old road right- of-way that were abandoned in the realignment and are no longer being used for the Road; and WHEREAS, in conjunction with the County’s vacation process, City staff would like to transfer the Easements to the County in order to appropriately establish that these new sections of the Road are County road right-of-way like the rest of the Road, and to ensure that the portions of the right-of-way being vacated by the County are no longer needed; and WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the transfer of the Easements, as set forth herein, is in the best interests of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to transfer the Easements to the County on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 084, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE OF ACCESS EASEMENTS TO THREE PRIVATE LAND HOLDERS WITHIN THE SOAPSTONE PRAIRIE NATURAL AREA WHEREAS, the City is the owner of certain real property located in northern Larimer County known as Soapstone Prairie Natural Area (the “Natural Area”); and WHEREAS, the City is planning to ask Larimer County to vacate all public rights-of-way, including any prescriptive rights, that may remain within the boundaries of the Natural Area, in order to ensure that any roads within the Natural Area, including the northern extension of Rawhide Flats Road north of the Natural Area’s southern boundary, are private roads owned by the City for the sole purpose of providing access to the Natural Area; and WHEREAS, there are currently three privately-owned parcels of land that are inholdings within the Natural Area (the “Properties”); and WHEREAS, upon the County’s vacation of the public rights-of-way within the Natural Area, the Properties would no longer be legally accessible; and WHEREAS, therefore, in order to provide a substitute means of access to the Properties, City staff is recommending that the City grant the property owners access easements across a portion of the City’s access road; and WHEREAS, the proposed access easements are described on Exhibit A, attached and incorporated herein by reference (the “Access Easements”); and WHEREAS, the Access Easements would be contingent upon the vacation of the existing road right-of-way, and would not give the owners of the Properties more rights to use or access City property than they have prior to the vacation; and WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the Easements, as set forth herein, is in the best interests of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Easements on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of the Easements, as long as such changes do not materially increase the size or change the character of the Easements. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk EXHIBIT A Easement 1, City to the owner of E ½ of NE ¼ of Section 11, Township 11 North, Range 69 West of the 6th P.M., being Larimer County Assessor’s Schedule Number R0599662, LESS approximately 44 acres west of easterly side of existing road extending north as or from County Road 15 in the East ½ of the Northeast ¼ of Section 11, Township 11 North, Range 69 West of the 6th Prime Meridian, Larimer County, Colorado, and NW ¼ of Section 7, Township 11 North, Range 68 West of the 6th P.M., being Larimer County Assessor’s Schedule Number R0300381, and SW ¼ of Section 7, Township 11 North, Range 68 West of the 6th P.M., being Larimer County Assessor’s Schedule Number R0599603, and W ½ of NE ¼ & W ½ of SE ¼ of Section 7, Township 11 North, Range 68 West of the 6th P.M., being Larimer County Assessor’s Schedule Number R0599557, and all Section 12, Township 11 North, Range 69 West of the 6th P.M., being Larimer County Assessor’s Schedule Number R0599697, Larimer County, State of Colorado (Kurt E. and Nancy Zimmerman): A perpetual, non-exclusive access easement on, over, under and across Grantor’s Property, from the south section line of Secs. 13 and 14, T11N, R69W to the north section line of Secs. 11 and 12, T11N, R69W along the existing improved roadway, as the same now exists or may hereafter be moved or modified. Easement 2, City to the owner of E ½ of NW ¼ of Section 13, Township 11 North, Range 69 West of the 6th P.M., Larimer County, Colorado (Janalee McEwen Bowler): A perpetual, non-exclusive access easement on, over, under and across Grantor’s Property, from the south section line of Secs. 13 and 14, T11N, R69W to the north section line of Secs. 11 and 12, T11N, R69W along the existing improved roadway, as the same now exists or may hereafter be moved or modified. Easement 3, City to the owner of S½ of SE ¼ of Section 11, Township 11 North, Range 69 West of the 6th P.M., Larimer County, Colorado. (Kelly Noonan): A perpetual, non-exclusive access easement on, over, under and across Grantor’s Property, from the south section line of Secs. 13 and 14, T11N, R69W to the north line of the S ½ of the SE ¼ of Sec. 11, T11N, R69W along the existing improved roadway, as the same now exists or may hereafter be moved or modified. DATE: July 19, 2011 STAFF: Helen Matson, Brian Varella Glen Schleuter AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 12 SUBJECT Second Reading of Ordinance No. 085, 2011, Authorizing the Conveyance to Capstone Development Corporation of Three Easements on Stormwater Utility Property at Creekside Park. EXECUTIVE SUMMARY Capstone Development Corporation is planning a mixed use development. The project area is 10.4 acres and is located near Stuart Street and College Avenue. It fronts College Avenue around the Discount Tire property and continues to the west to the railroad. The project area is also at the rear of the Dairy Queen property. This mixed use development is for student housing and retail space. It will have two buildings, 221 dwelling units and 8,000 square feet of new retail space. The retail space will be the first floor of the building fronting on South College Avenue. This Ordinance, unanimously adopted on First Reading on July 5, 2011, authorizes a drainage easement for construction of a new flood control channel, a drainage easement for sheet flows from the adjoining property, and a temporary construction easement to construct a pedestrian trail and an underground stormwater pipe on City-owned property known as Creekside Park. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Helen Matson, Brian Varella, Glen Schlueter AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT First Reading of Ordinance No. 085, 2011, Authorizing the Conveyance to Capstone Development Corporation of Three Easements on Stormwater Utility Property at Creekside Park. EXECUTIVE SUMMARY Capstone Development Corporation (“Capstone”) is planning a mixed use development. This Project area is 10.4 acres and is located near Stuart Street and College Avenue. It fronts College Avenue around the Discount Tire property and continues to the west to the railroad. The project area is also at the rear of the Dairy Queen property. This mixed use development is for student housing and retail space. It will have two buildings, 221 dwelling units and 8,000 square feet of new retail space. The retail space will be the first floor of the building fronting on South College Avenue. For this development, Capstone has requested that the City grant Capstone a drainage easement for construction of a new flood control channel, a drainage easement for sheet flows from the adjoining property, and a temporary construction easement to construct a pedestrian trail and an underground stormwater pipe on City-owned property known as Creekside Park. BACKGROUND / DISCUSSION Capstone has been working on this project for a number of years. The project site is currently located in a FEMA regulatory floodway and flood fringe on Spring Creek. Chapter 10 of the Fort Collins City Code does not allow new residential structures in the floodway. To utilize more of its project site, the developer opted to revise flood hazard boundaries. Capstone submitted plans to the City and to the Federal Emergency Management Agency (FEMA), and received a Conditional Letter of Map Revision (CLOMR) from both agencies to move forward with all facets of its project. The floodplain boundaries will be modified through engineered solutions with these CLOMR improvements when completed. With these floodplain changes, Capstone will be able to construct two buildings outside the CLOMR- revised floodway and flood fringe. Capstone has requested that the City grant three easements: a drainage easement for a flood control channel that routes offsite floodwater along the western edge of its site, a drainage easement for local (onsite) runoff and a temporary construction easement for construction of a trail connection and a storm sewer pipe improvement. These easements are located in the low use and low maintenance area of Creekside Park (“Park”). The City’s Stormwater Utility (“Utilities”) purchased this property in 1989 for Spring Creek Improvements. Utilities remain the owner of this property; however, the Parks Department maintains this area as Creekside Park. Details of easement requests are below: Flood Control Channel Easement The flood control channel is required for the project and is part of Capstone’s approved CLOMR. The main purpose of this channel is to contain flood flows that overtop the railroad in 100 year storm events. This channel will also handle off-site flows as well as flows from this project. The flows from the channel will be returned to the main channel at Spring Creek in Creekside Park. The proposed flood control channel runs the length of the Capstone’s property and is over 40 feet wide at its base. There may be a concrete trickle pan in the center of it, and has high performance turf reinforcement mat (TRM) along the rest of the bottom of the channel and the sides over most of Capstone’s property. The channel’s slope decreases substantially as it reaches the Park and it is anticipated that the channel will be dry most of the time. Capstone will be performing flood control channel grading within the Park. When this grading is complete, this area of the Park will be very flat and will not be an active swale except during rainfall events. Capstone may also construct a concrete trickle pan to control the grade, and will install a buried riprap pad at the confluence with COPY COPY COPY COPY July 5, 2011 -2- ITEM 18 the Spring Creek channel. On top of this buried riprap, Capstone will reseed this area in native grasses, as specified in the CLOMR. Capstone will also provide temporary irrigation until the grasses are established. The flood control channel is located at the northwest corner of the Park and is shown in blue on the attached Diagram of Proposed Creekside Park Easements (Attachment 2). The easement is approximately 140 feet wide and contains 8,785 square feet. Sheet Flow Easement The next easement is a sheet flow easement (shown in yellow on Attachment 2). It is directly east of the flood control channel easement and is approximately 160 feet at its widest area and contains 8,140 square feet. This easement is being requested to handle developed runoff from the south parking lot of the Project onto the City’s property to Spring Creek. In the current condition, there is a concrete pan on the Capstone property that takes concentrated flows directly onto the Park. These flows as well as the pedestrian and bike use without a trail has caused erosion at the Park. The Project plans to mitigate adverse impacts from the change in runoff rate and volume. The south parking lot of the Project will be constructed with one foot wide curb cuts at nine feet on center to uniformly distribute the surface runoff to the area south of the curb. As per Best Management Practices (BMP’s), this runoff will then cross a landscape area (the grass buffer) approximately sixty feet wide before the sheet runoffs enter the Park. Grass buffers are densely vegetated strips of grass designed to accept sheet flows from upgradient development. Flows will be distributed in a uniform manner over the width of the buffer, which is preferred over concentrated flows. The grass buffer on the Capstone property will be planted with a Native Prairie Mix and when mature will provide vegetative coverage greater than 80%. Erosion and sediment control measures on upgradient disturbed areas will be maintained to prevent excessive sediment to the grass buffer. The appearance of the Park at this location will remain as it is today. No construction will take place on the easement area for this Project. Temporary Construction Easement (“TCE”) This easement is required for Capstone to construct improvements on the City’s property. Capstone has a trail through its Project which will connect to the Spring Creek Trail near the bridge in Creekside Park. Capstone will construct the trail connection to the City’s specifications. Once constructed, this trail connection will become part of the City’s trail system and will be maintained by the City. There is an old stormwater pipe under the railroad to Capstone’s property. The City has requested that Capstone extend and improve this pipe to flow to Spring Creek. The extended pipe (30-inch diameter or equivalent) will enter the Park upstream of the existing pedestrian bridge and go to Spring Creek. Once the extension is completed, this pipe will be a public pipe owned by the City. The City will be responsible for maintenance of this public pipe. Capstone will be responsible to restore the Park property to its current condition once its construction is complete. The temporary easement area is 9,342 square feet and is the red area on the attached Diagram. FINANCIAL / ECONOMIC IMPACTS Real Estate Services utilized appraisals obtained for adjacent properties for the Mason BRT project to determine the value of these easements. The City property has physical limitations including Spring Creek and the associated buffers and the trail system, which affect the value. The resulting values are: Flood Control Swale Easement $8,785 Sheet Flow Easement 3,258 Temporary Construction Easement 437 Easement Processing Fee - RES 1,000 Total $13,480 COPY COPY COPY COPY July 5, 2011 -3- ITEM 18 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. Utilities staff has reviewed the request and has not identified any concerns. BOARD / COMMISSION RECOMMENDATION At its June 16, 2011 meeting, the Water Board voted 8-1, to recommend that the Council approve the easement requests from Capstone Development Corporation. ATTACHMENTS 1. Location Map 2. Diagram of Proposed Creekside Park Easements 3. Photo of Area of Impact for each Easement 4. Water Board minutes, June 16, 2011 ORDINANCE NO. 085, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE TO CAPSTONE DEVELOPMENT CORPORATION OF THREE EASEMENTS ON STORMWATER UTILITY PROPERTY AT CREEKSIDE PARK WHEREAS, the City owns a parcel of land in the 1800 block of South College Avenue known as Creekside Park (the “City Property”); and WHEREAS, the City Property was purchased by the City’s Stormwater Utility for Spring Creek improvements and is managed by the Parks Department; and WHEREAS, Capstone Development Corporation (“Capstone”) is in the process of developing a mixed use development with student housing and retail space north of the Property near Stuart Street and South College Avenue (“the Project”) and WHEREAS, the property on which the Project would be built (the “Project Property”) is currently in the Spring Creek floodway and Chapter 10 of the City Code does not allow new residential structures in the floodway; and WHEREAS, Capstone chose to revise the flood hazard boundaries of the Project Property in order to remove it from the floodway, and has received from the City and the Federal Emergency Management Agency a Conditional Letter of Map Revision (CLOMR) to proceed with the Project; and, WHEREAS, as part of the CLOMR, Capstone is required to construct a flood control channel to carry flows across the Project Property to the Spring Creek channel; and WHEREAS, to facilitate the operation of this channel Capstone is requesting from the City a permanent non-exclusive easement on the City Property approximately 8,785 square feet in area to channel water across the City Property to Spring Creek during rainfall events (the “Channel Easement”); and WHEREAS, the location of the proposed Channel Easement is shown and described on Exhibit “A”, attached and incorporated herein by this reference; and WHEREAS, as part of its Project, Capstone has also requested a permanent, non-exclusive easement on the City Property approximately 8,140 square feet in area to move sheet flows of storm runoff from a parking lot on the Project Property across the City Property to Spring Creek (the “Sheet Flow Easement”); and WHEREAS, the location of the proposed Sheet Flow Easement is shown and described on Exhibit “B”, attached and incorporated herein by this reference; and WHEREAS, as part of its Project, Capstone has also requested a Temporary Construction Easement on the City Property approximately 9,342 square feet in area to construct a trail connection and a stormwater pipe (the “Temporary Construction Easement”); and WHEREAS, the location of the proposed Temporary Construction Easement is shown and described on Exhibit “C”, attached and incorporated herein by this reference; and WHEREAS, City staff has evaluated the potential impacts of the proposed Easements and does not believe that the Channel Easement, the Sheet Flow Easement or the Temporary Construction Easement would interfere with the intended use of the City Property, either as part of the City’s stormwater utility system or as a park; and WHEREAS, Capstone has agreed to pay the City $12,480 for the Easements and $1,000 for processing its easement request; and, WHEREAS, at its regular meeting on June 16, 2011, the Water Board reviewed the proposed Easements and recommended that the City Council authorize their conveyance; and WHEREAS, Section 23-111(a) of the City Code provides that the City Council is authorized to sell, convey or otherwise dispose of any and all interests in real property owned by the City, provided that the City Council first finds, by ordinance, that such sale or other disposition is in the best interest of the City; and WHEREAS, with respect to property that is part of the City’s water or utility systems, Section 23-111(b) of the City Code requires that the City Council also find that the disposition will not materially impair the viability of the particular utility system as a whole and that it will be for the benefit of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the Easements, as set forth herein, is in the best interests of the City, will not impair the viability of the stormwater system, and will be for the benefit of the citizens of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Easements to Capstone on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of the Easements, as long as such changes do not materially increase the size or change the character of the Easements. -2- Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- DATE: July 19, 2011 STAFF: Jon Haukaas Patrick Rowe AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 13 SUBJECT Second Reading of Ordinance No. 086, 2011, Authorizing the Conveyance to Solitaire Homes, LLC of a Public Trail Easement on City Property. EXECUTIVE SUMMARY Solitaire Homes, LLC is planning a 27 acre (approximately) development north and west of Laporte Avenue and Taft Hill Road, opposite the Poudre School District offices. This Ordinance, unanimously adopted on First Reading on July 5, 2011, authorizes a 438 square foot public trail easement from the City across City property managed by the Water Utility to facilitate a planned trail within the development. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Jon Haukaas Patrick Rowe AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT First Reading of Ordinance No. 086, 2011, Authorizing the Conveyance to Solitaire Homes, LLC of a Public Trail Easement on City Property. EXECUTIVE SUMMARY Solitaire Homes, LLC (the “Developer”) is planning a 27 acre (approximately) development north and west of Laporte Avenue and Taft Hill Road, opposite the Poudre School District offices. To facilitate a planned trail within the development, the Developer requests a 438 square foot public trail easement from the City across City property managed by the Water Utility. The City property is approximately 1,750 square foot. in size and is the site of a Water Utility valve vault. BACKGROUND / DISCUSSION Sanctuary West is a proposed development currently in the final stages of planning review. The development will occupy 27 acres and include 112 residential units. The development is located west of Taft Hill Road and north of Laporte Avenue, opposite the Poudre School District offices (Attachment 1). In order to satisfy a planning connectivity requirement, the development will include a public trail to connect the planned Sanctuary West Development to the existing Green Acres subdivision. The proposed alignment of the trail is located entirely on the development with the exception of a small area (438 square foot) that would cross a portion of City property managed by the Water Utility. The requested easement will allow the developer to avoid increased construction and engineering costs that would result from this portion of the trail falling within a drainage channel should the developer have to relocate the proposed trail. As such, the Sanctuary West Development is requesting a 438 square foot public trail easement from the City. The larger City property that this 438 square foot easement would encumber is approximately 1,750 square foot in size and is the location of a Water Utility valve vault. The valve vault houses gate valves and a control valve on the 27-inch water main that passes through the area. The vault is a typical size and configuration and is secured. Utilities staff has reviewed the plan for the proposed trail access easement and has identified no negative impacts to the Water Utility property as a result of the new easement. FINANCIAL / ECONOMIC IMPACTS Solitaire Homes, LLC will compensate the City of Fort Collins the fair market value of the easement (as determined by the City’s Real Estate Services Department) and a $1,000 processing/administration fee. Using the “across the fence” value methodology, Real Estate Services has calculated the fair market value of the easement to be a $500 (the easement size and adjacent land values support a value less than this amount, but $500 will be utilized as a nominal value). Although the trail will be open to the public, the trail improvements will be owned and maintained by the Sanctuary West development. ENVIRONMENTAL IMPACTS The easement area will be developed consistent with an 8-foot trail, and areas within the easement area disturbed but not improved will be restored to a like or better condition. COPY COPY COPY COPY July 5, 2011 -2- ITEM 19 STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION At its May 26, 2011 meeting, the Water Board recommended by unanimous vote that Council consider approval of the proposed trail easement requested for the Sanctuary West Development, consistent with staff’s recommendation. ATTACHMENTS 1. Location Map 2. Water Board Meeting Minutes, May 26, 2011 3. Easement Area Plan Sketch and Photo ORDINANCE NO. 086, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE CONVEYANCE TO SOLITAIRE HOMES, LLC OF A PUBLIC TRAIL EASEMENT ON CITY PROPERTY WHEREAS, the City is the owner of a parcel of real property located in the area of LaPorte Avenue and Taft Hill Road in Fort Collins, Colorado, identified in County records as parcel number 97091-03-927 (the “Property”); and WHEREAS, the Property is approximately 1750 square feet in size and is managed by the Water Utility as the site of a valve vault; and WHEREAS, Solitaire Homes, LLC (the “Developer”) is planning a 27 acre development adjacent to the Property called Sanctuary West (the “Development”); and WHEREAS, as a condition of approving the Development, the City is requiring the Developer to provide a trail connecting the Development to another nearby subdivision; and WHEREAS, the Developer has requested from the City a 438 square foot public trail easement on the Property for the purpose of constructing the trail (the “Easement”); and WHEREAS, the location of the proposed Easement is described on Exhibit “A”, attached and incorporated herein by reference (the “Easement Area”); and WHEREAS, the proposed trail would be open to the public but the Developer would own and maintain the trail improvements; and WHEREAS, the Developer would pay the City $500 for the value of the Easement Area and $1,000.00 as an administrative fee to cover the costs of processing the easement request; and WHEREAS, City Utility staff has identified no negative impacts to the Property resulting from the grant of the proposed Easement; and WHEREAS, Section 23-111(a) of the City Code states that the City Council is authorized to sell, convey, or otherwise dispose of any and all interests in real property owned in the name of the City, provided that the Council first finds, by ordinance, that such sale or other disposition is in the best interests of the City; and WHEREAS, Section 23-111(b) of the City Code states that, with respect to real property which is a part of the City’s water or utility systems, the City Council must also find that the disposition will not materially impair the viability of the particular utility system as a whole and that it will be for the benefit of the citizens of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the conveyance of the Easement on the Property to the Developer as provided herein is in the best interests of the City, will not impair the viability of the City’s Water Utility system as a whole, and will be for the benefit of the citizens of the City. Section 2. That the Mayor is hereby authorized to execute such documents as are necessary to convey the Easement to the Developer on terms and conditions consistent with this Ordinance, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines are necessary or appropriate to protect the interests of the City, including, but not limited to, any necessary changes to the legal description of the Easement, as long as such changes do not materially increase the size or change the character of the Easement. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Exhibit "A" Page 1 of 2 Exhibit "A" Page 2 of 2 DATE: July 19, 2011 STAFF: Ken Waido AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT First Reading of Ordinance No. 090, 2011, Appropriating General Fund Prior Year Reserves for the Affordable Housing Fund and Land Bank Program. EXECUTIVE SUMMARY City Council authorized expenditures in 2010 for Affordable Housing and the Land Bank Program. All of the authorized expenditures were not spent in 2010 because the projects for which the dollars were originally appropriated could not be completed during 2010. Reappropriation of $295,821 is necessary for completion of the projects in 2011. These unexpended monies lapsed into the General Fund balance at the end of 2010 and reflect no change in Council policies. BACKGROUND / DISCUSSION The following items have historically been included in the Ordinance Appropriating Prior Year Reserves, but were inadvertently omitted when this ordinance (Ordinance No. 042, 2011) was considered by Council on April 19, 2011. Money from the City’s Affordable Housing Fund (AHF) was not approved for allocation to various agencies by the City Council until completion of the fall cycle of the competitive process in November 2010. In many cases, the City’s funding represents the first dollars committed to specific projects, then agencies seek additional funding from sources such as the Colorado Division of Housing, the Colorado Housing Finance Authority, or the Federal Home Loan Bank. City funds are not given final commitment nor are contracts signed until the City is reasonably assured the projects have the necessary financial support to be completed. Therefore, the affordable housing funds in the amount of $284,382 for these agencies need to be re-appropriated to fulfill the City’s commitment to provide funding for their specific projects. The Land Bank Program is a self-sustaining program in that rental income from the Land Bank properties provides a source of funds for routine maintenance and/or necessary or emergency repairs. The repairs and maintenance of these properties could not be completed by year-end. Staff is requesting that the unspent funds in the amount of $11,439 be re-appropriated back into the Land Bank Program so that the repairs and maintenance can be completed as needed. FINANCIAL / ECONOMIC IMPACTS This Ordinance increases 2011 appropriations by $295,821 in the General Fund. This appropriation represents the amounts budgeted in 2010 that could not be spent or encumbered at year-end. The appropriations are from General Fund 2010 prior year reserves. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 090, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR THE AFFORDABLE HOUSING AND LAND BANK PROGRAMS WHEREAS, the City Council allocated Affordable Housing funds to various agencies during the fall cycle of the competitive process in November 2010; and WHEREAS, Affordable Housing appropriations that were not expended at the end of 2010 lapsed into the General Fund reserves and City staff recommends that the City Council appropriate those funds to fulfill the City’s commitment to provide for the Affordable Housing program projects; and WHEREAS, unexpended appropriations for Land Bank property repairs and maintenance also lapsed at the end of 2010 into General Fund reserves and need to be appropriated into 2011 so the repairs can be completed as needed; and WHEREAS, Article V, Section 11 of the City Charter requires that all appropriations unexpended or unencumbered at the end of the fiscal year lapse to the applicable general or special fund, except that appropriations for capital projects and federal or state grants do not lapse until the completion of the capital project or until the expiration of the federal or state grant; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the sum of TWO HUNDRED NINETY-FIVE THOUSAND EIGHT HUNDRED TWENTY-ONE DOLLARS ($295,821) for the following purposes: Affordable Housing Program $ 284,382 Land Bank Program 11,439 Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: July 19, 2011 STAFF: Jin Wang Rick Richter AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 15 SUBJECT Items Relating to the Shields Street Bridge Replacement and LaPorte Avenue Bridge Replacement. A. Resolution 2011-058 Authorizing the Mayor to Enter into a Contract with the Colorado Department of Transportation for the Construction of the Shields Street Bridge Replacement and Laporte Avenue Bridge Replacement. B. First Reading of Ordinance No. 091, 2011, Appropriating Unanticipated Revenue from the Colorado Department of Transportation in the City Bridge Program Fund for the Shields Street Bridge Replacement and Laporte Avenue Bridge Replacement. EXECUTIVE SUMMARY The City of Fort Collins Engineering Department has been awarded three grants from the federally funded Colorado Off-System Bridge Program totaling $2,225,932. This funding contract between the City and Colorado Department of Transportation is for the replacement of two structurally deficient bridges owned by the City. The two bridges are Shields Street Bridge over Larimer Canal No. 2, and Laporte Avenue Bridge over the Arthur Ditch. BACKGROUND / DISCUSSION Bridges are an important element of the roadway network. An inadequate bridge can cause various capacity and safety problems on roadways. A road will not be able to function if it is disconnected because of a bridge that has failed. Based on federal bridge inspection standards, both the Shields Street Bridge and the Laporte Avenue Bridge are identified as structurally deficient. This means that both bridges are in advanced stages of deterioration and do not have the desired load carrying capacities. Replacing these bridges will eliminate unsafe situations which could potentially result in property damage and loss of life. FINANCIAL / ECONOMIC IMPACTS The City was awarded three grants from federally funded Colorado Off-System Bridge Program totaling $2,225,932. These grants are for replacement of two qualifying bridges, Shields Street Bridge near Rolland Moore and the Laporte Avenue Bridge. Shields Street Bridge was scheduled to be funded with 2011 Keep Fort Collins Great (KFCG) monies and Laporte Avenue Bridge was scheduled for 2012 KFCG funding. The federal grant award has presented the opportunity to offset the 2011 KFCG allocation, and use those funds for the design of two other high priority bridge projects, as well as the construction of the Laporte Avenue Bridge in 2011. Planning, Development & Transportation is planning to reassign KFCG dollars initially intended for the Shields Street Bridge project to the design of the Prospect and West Mulberry bridge projects, and to accelerate construction of the Laporte Avenue Bridge project. The estimated total cost of Shields Street Bridge Replacement and Laporte Avenue Bridge Replacement Project is $3,136,131, which is to be funded as follows: Federal Funds $2,225,932 Local Agency Matching Funds (2011 BFO Offer 146.14) $ 556,483 Local Agency Overmatch Funds (2011 BFO Offer 146.14) $ 353,716 Total Project Funds $3,136,131 The two bridges are classified as structurally deficient. These bridges are failing and need to be replaced. If allowed to fail, an emergency bridge replacement can cost up to 50% more than a planned bridge replacement. The proactive completion of both bridge replacements will provide continued accessibility to businesses, parks and residences. July 19, 2011 -2- ITEM 15 ENVIRONMENTAL IMPACTS The project will have a positive impact on long term air quality. Vehicles that are currently restricted by the bridge weight limit posted will be able to drive over the replacement bridge, instead of using a longer alternative route, thus reducing greenhouse gas emission. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION The Transportation Board was briefed on both Bridges Replacement Projects, most recently in February 2011, and will receive updates as the project progresses. PUBLIC OUTREACH The Project Team has met with property owners adjacent to the bridge. The Team is also working with utility companies that have services over or under the existing bridge. Public outreach will be intensified prior to, and during, construction of the replacement bridges. ATTACHMENTS 1. Project Area Map 2. Transportation Board minutes, February 16, 2011 RESOLUTION 2011-058 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO ENTER INTO A CONTRACT WITH THE COLORADO DEPARTMENT OF TRANSPORTATION FOR THE CONSTRUCTION OF THE SHIELDS STREET BRIDGE REPLACEMENT AND LAPORTE AVENUE BRIDGE REPLACEMENT WHEREAS, the City Council is aware of the importance of bridges as an element of the roadway network and that inadequate bridges can cause capacity and safety problems on roadways; and WHEREAS, federal bridge inspection standards indicate that the Shields Street bridge and the Laporte Avenue bridge are structurally deficient; and WHEREAS, the replacement of these bridges was scheduled to be funded with 2011 Keep Fort Collins Great funds (Shields Street Bridge) and 2012 Keep Fort Collins Great funds (Laporte Avenue Bridge) and sufficient funds for this purpose have been appropriated in the 2011 amended appropriations ordinance; and WHEREAS, the City has been awarded grants from federally funded “Colorado Off-System Bridge Program” funds in the amount of $2,225,932 for the replacement of the Shields Street and Laporte Avenue Bridges, which grants would make the Keep Fort Collins Great funds available for other purposes; and WHEREAS, the estimated total costs of replacing the Shields Street and Laporte Avenue bridges is $3,136,131; and WHEREAS, the City Council has determined that local agency matching funds in the amount of $556,483 and additional local funds (“overmatch funds”) in the amount of $353,716 are appropriated and available and should be utilized in conjunction with the grant funds to complete the replacement of the Shields Street and Laporte Avenue bridges; and WHEREAS, following public outreach and consultation with the Transportation Board, the City Council has determined that it is in the best interests of the City that the Mayor enter into a contract with the Colorado Department of Transportation (CDOT) for the construction of the Shields Street and Laporte Avenue bridge replacement projects. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to enter into a contract with CDOT in substantially the form shown on Exhibit “A” attached hereto and incorporated herein by this reference, for the construction of the Shields Street and Laporte Avenue bridge replacement projects at a total cost of $3,136,131, of which $2,225,932 will be paid from the federal funds that are being made available by CDOT, $556,483 will be made available in the form of local agency matching funds, and $353,716 in the form of local overmatch funds. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July, A.D. 2011. Mayor ATTEST: City Clerk EXHIBIT A ORDINANCE NO. 091, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE IN THE CAPITAL PROJECTS FUND FOR THE CITY BRIDGE PROGRAM PROJECT WHEREAS, the City has been awarded three grants from the Colorado Department of Transportation federally funded Colorado Off-System Bridge Program totaling $2,225,932; and WHEREAS, these three grants are for the replacement of the Shields Street Bridge over Larimer Canal No. 2 near Rolland Moore Park and the Laporte Avenue Bridge over Arthur Ditch; and WHEREAS, based on federal bridge inspection standards, both the Shields Street Bridge and the Laporte Avenue Bridge are in advanced stages of deterioration and have been identified as structurally deficient because they do not have the desired load carrying capacities; and WHEREAS, the total estimated cost of the Shields Street Bridge Replacement and the Laporte Avenue Bridge Replacement is $3,136,131which will be funded by federal grants ($2,225,932) and 2011 existing appropriations of ($910,199) which will fund the required match; and WHEREAS, the City Council has adopted Resolution 2011-058 authorizing the City to enter into a contract with the Colorado Department of Transportation for the construction of the Shields Street Bridge Replacement and the Laporte Avenue Bridge Replacement; 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 have determined that the appropriation of the revenue as described herein will not cause the total amount appropriated in the Capital Projects Fund to exceed the current estimate of actual and anticipated revenues during fiscal year 2011. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from unanticipated revenue in the Capital Projects Fund the sum of TWO MILLION TWO HUNDRED TWENTY-FIVE THOUSAND NINE HUNDRED THIRTY-TWO DOLLARS ($2,225,932) for expenditure in the Capital Projects Fund for the City Bridge Program Project. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk DATE: July 19, 2011 STAFF: Jim O’Neill Lisa Voytko, Steve Catanach AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 16 SUBJECT Items Relating to a Long-Term Solar Power Arrangement for the Water Treatment Facility. A. First Reading of Ordinance No. 092, 2011, Authorizing the Execution of a Power Purchase Agreement Contract with a Photovoltaic Provider at the Water Treatment Facility for a Term of Up to 20 Years. B. Resolution 2011-059 Authorizing a Revocable Permit to a Selected Solar Provider for the Use of the City Water Treatment Facility Property for a Solar Project. EXECUTIVE SUMMARY The Water Treatment Facility receives its electrical power from Xcel Energy. A solar power generation project, with a fixed electrical rate sold back to the City, allows the offset of a portion of electrical usage at the plant site. A third party Photovoltaic system developer will design, construct, operate and maintain for up to 20 years a solar power project. This Ordinance allows for a 20-year contract between the system developer and the City. The Resolution issues a revocable permit for use of a portion of land onsite of the Water Treatment Facility by the photovoltaic system developer. BACKGROUND / DISCUSSION The Water Treatment Facility is located in Larimer County and as such, receives its electrical power from Xcel Energy instead of City Light and Power. Xcel Energy has a Solar Rewards program that gives third party entities rebates and renewable energy credits for solar power generation. The City cannot take full advantage of the rebates and credits, and instead, selects through a competitive process, a photovoltaic (PV) system developer who designs, constructs, operates and maintains the solar system, and sells the power generated to the City, based on a negotiated fixed rate, through a power purchase agreement. The City received nine proposals, interviewed three firms, and is in the process of negotiating a power purchase agreement with the selected solar system developer. The proposed solar system will generate approximately 145,000 kWh per year. This system is not sized to supply the entire electrical demand for the Water Treatment Facility, but will contribute significantly to the energy savings at the plant. This power purchase agreement is a 20-year contract between the PV system developer and the City. The City Code provides that a multi-year contract for a period of 5 years must be authorized by ordinance. The advantages of the power purchase agreement are: • Fixed rate of electricity throughout the 20-year term, based on a negotiated initial price. • The power generated will only be sold to the City at the Water Treatment Facility. • No upfront capital costs for the City. • No operation and maintenance costs for the duration of the contract • Renewable energy on site to help attain the City’s sustainability goals. • Ability to purchase the system, at fair market value, after year 5, if desired. The Resolution authorizes the execution of a revocable permit to the Photovoltaic System Developer for the solar project. It addresses the project site at the Water Treatment Facility site and its use by the PV system developer to construct the solar system. The City Charter allows Council to grant a permit at any time for the use or occupation of any public place. July 19, 2011 -2- ITEM 16 The site where the solar project will be located is within the security of the water treatment facility, and on raw land that is not currently in use by the plant processes. FINANCIAL / ECONOMIC IMPACTS The Water Treatment Facility utilizes electricity to treat drinking water for its customers. The power purchased from the solar developer will offset a portion of that electrical power demand that must be purchased from Xcel Energy. The advantage is the fixed rate of this portion of the power versus the expected increases in electrical costs from Xcel. Over the 20-year term of the power purchase agreement, the estimated savings is $108,000. ENVIRONMENTAL IMPACTS This project will not impact the quantity and quality of drinking water produced. By replacing utility electricity with renewable solar power, the Water Treatment Facility will continue to work towards the City’s internal sustainability goal of reducing energy consumption by 20% of the 2005 baseline by 2020, and demand peak use by 15% by 2020. STAFF RECOMMENDATION Staff recommends adoption of the Resolution and the Ordinance on First Reading. ATTACHMENTS 1. Location map for the Solar Project area ORDINANCE NO. 092, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXECUTION OF A POWER PURCHASE AGREEMENT CONTRACT WITH A PHOTOVOLTAIC PROVIDER AT THE WATER TREATMENT FACILITY FOR A TERM OF UP TO 20 YEARS WHEREAS, the City’s Water Treatment Facility is located in Larimer County, and it receives electrical power service from Xcel Energy; and WHEREAS, the availability of solar power rebates from Xcel Energy provides an incentive for a photovoltaic (“PV”) supplier to design, construct, operate and maintain a photovoltaic system at the Water Treatment Facility at relatively low cost to the City; and WHEREAS, the Purchasing Agent has issued a Request for Proposals for a PV supplier, and is in the process of negotiating and completing the arrangements for the desired system, which would be installed on vacant property owned by Utilities as part of the Water Treatment Plant property; and WHEREAS, given the investment required to design and construct the PV system, staff has proposed that the City enter into a contract with the PV supplier to sell power to the Water Treatment Facility for a period of up to 20 years; and WHEREAS, the proposed arrangement would allow the City to implement an on-site renewable energy project at the Water Treatment Plant with no up-front capital costs; and WHEREAS, under the proposed arrangement, the City would purchase the power generated by the system at a fixed rate that is lower than the current Xcel Energy rate; and WHEREAS, this would result in a predictable and reduced cost of electricity over the 20- year contract; and WHEREAS, the proposed arrangement would also provide that the City would be entitled to purchase the solar project from the PV supplier after the fifth year of the agreement, at a calculated fair market value; and WHEREAS, this project would assist the City in meeting its internal sustainability goal of reducing electrical usage by 20 percent by the year 2020; and WHEREAS, pursuant to Section 8-186 of the City Code the Purchasing Agent must obtain approval of the City Council by ordinance in order to enter into any contract with a term longer than five years in length. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Purchasing Agent is hereby authorized to enter into a 20-year power purchase agreement with the chosen PV supplier consistent with the terms of this Ordinance, together with such additional terms and conditions as the Purchasing Agent, in consultation with the City Manager and City Attorney, determines to be a necessary or appropriate to protect the interests of the City or advance the purposes set forth in this Ordinance. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk RESOLUTION 2011-059 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING A REVOCABLE PERMIT TO A SELECTED SOLAR PROVIDER FOR THE USE OF THE CITY WATER TREATMENT FACILITY PROPERTY FOR A SOLAR PROJECT WHEREAS, the City is the owner of a certain parcel of real property located at the City’s Water Treatment Facility in Larimer County, Colorado, which parcel is described on Exhibit “A”, attached and incorporated herein by this reference (the “Property”); and WHEREAS, the City wishes to enter into a power purchase agreement for up to 20 years with a photovoltaic system developer selected through a competitive purchasing process (“Developer”), to install a solar system on the Property and provide renewable solar energy to the Water Treatment Facility; and WHEREAS, the Developer would install the solar system on vacant land at the Water Treatment Facility that is currently not used for plant or City purposes; and WHEREAS the Developer would design, construct, own, operate and maintain the solar system, and would need access to the Property during construction and during the 20-year contract period for maintenance and periodic equipment replacement; and WHEREAS, as part of the power purchase agreement with the Developer, City staff is recommending that the City Council grant the Developer a revocable permit for access to and use of a portion of the Property identified on Exhibit “B”, attached and incorporated herein by this reference (the “Permit Area”); and WHEREAS, City staff believes that the solar system will not interfere with or adversely affect the Property; and WHEREAS, as a condition of the revocable permit, the Developer would be required to repair any damage to the Property caused by Developer’s activities; and WHEREAS, Article XI, Section 10 of the City Charter authorizes the City Council to permit the use of occupation of any street, alley, or public place, provided that such permit shall be revocable by the City Council at its pleasure, whether or not such right to revoke is expressly reserved in such permit. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Manager is hereby authorized to execute such documents as are necessary to grant a revocable permit to the Developer as part of a power purchase agreement, consistent with the terms of this Resolution, together with such additional terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or to effectuate the purposes of this Resolution, including any necessary corrections to the legal descriptions thereof that do not result in a material increase or change in character of the Permit Area. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk Exhibit “A” Page 1 of 1 City Property Description Parcel Number: 97070-00-913 Legal Description (Per County Assessor’s Records): PAR IN NE 7-7-69, AND NW 8-7-69, COM AT E 1/4 COR SEC 7, N 0 42' E ALG E LN NE 702.80 FT TPOB; N 85 55' 45" W ALG NRLY ROW LAPORTE AVE 1288.85 FT, N 0 42' 30" E ALG WRLY ROW OF A PAR DESC AT RECP NO. 852366 460.99 FT; N 89 16' 32" E ALG SRLY LN OF PAR DESC AT RECP NO. 573867 1286.95 FT; S 0 42' W ALG ERLY ROW LN OF PAR DESC AT RECP NO. 852366 320.92 FT; TH ALG SRLY LN OF PAR DESC AT RECP NO. 355173 S 85 56' E 619.33 FT; TH S 29 27' 15" E 298.66 FT; TH ALG NRLY ROW LN OF LAPORTE AVE N 85 49' W 767.90 FT; N 85 55' 45" W 1.80 FT TPOB DATE: July 19, 2011 STAFF: Laurie D’Audney Beth Sowder AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT Items Relating to Grass Height Restrictions and Updating Related City Code References. A. First Reading of Ordinance No. 093, 2011, Amending Article IV of Chapter 20 of the City Code Regarding Weeds, Grass and Rubbish. B. First Reading of Ordinance No. 094, 2011, Amending Article VII of Chapter 12 of the City Code Regarding Resource Conservation. EXECUTIVE SUMMARY In an effort to promote water conservation, lower greenhouse gas emissions, and provide options for Fort Collins residents who are interested in using water-wise turfgrass, these Code amendments will allow certain grass types to be exempt from the current six (6) inch height limit. The grass types that would be exempt are Blue Grama and Buffalo grass, and they would have a height limit of twelve (12) inches. BACKGROUND / DISCUSSION City Code Section 20-42 requires that all weeds and grasses (except “ornamental” grasses which cannot exceed twenty (20) percent of the landscape) be kept to a maximum of six inches in height. In recent years, staff has heard from citizens who would like to grow certain types of water-wise turfgrass. Some of these grasses need to grow higher than six (6) inches in order to thrive. It is currently against City Code to have a yard of any grass or weeds in excess of six (6) inches. During the past growing season, Code Compliance Inspectors have sent violation notices to properties using water-wise turfgrass species that were exceeding the height limit. This brought to light inconsistencies with the City’s messages encouraging conservation and how the weed/grass height code is enforced. Staff discussions and research included looking at what other communities are doing regarding weed/grass height limits, the allowance of certain native grasses, and the encouragement of water conservation through landscape decisions. Staff also examined current policies and sought the advice of local experts. Current City policies, as well as proposed policies in Plan Fort Collins, include strong messages to encourage water conservation and to require quality and ecologically sound landscape design. Colleagues at both Colorado State University and the Larimer County Extension Offices agreed that water conserving landscapes should be encouraged, and they provided their input regarding which grasses should be exempt from the six (6) inch height limit. Staff recommends amending Code Section 20-42 to provide an exemption for “water-wise turfgrass,” which includes Blue Grama and Buffalograss, to exceed the six (6) inch height limit but not to exceed twelve (12) inches. Additionally, staff recommends amending the Resource Conservation Ordinance, Code Section 12-120, to include these water-wise turfgrasses as part of the Xeriscape Landscaping definition. This would prohibit homeowner associations from restricting the use of these grasses. These grasses would also be exempt from the “ornamental grass” landscape section. During the review and discussions of these ordinances, staff also found some areas in need of minor updates. The recommended amendments include: changing the title in Article IV of Chapter 20 to “Weeds, Grass, Refuse, and Rubbish”; changing the title of Code Section 20-42 to “Weeds, unmowed grasses, refuse, and rubbish nuisances prohibited”; adding wild rye grasses to the list of “ornamental grasses”; adding a definition of grass; updating the weed list; adding “public right-of-way or other public property” to the section prohibiting the deposit or accumulation of refuse, rubbish, or storage of materials within or upon these public areas; and adding “buffer zone for natural habitat” as an exemption from the weed/grass height requirements. July 19, 2011 -2- ITEM 17 FINANCIAL / ECONOMIC IMPACTS These Code amendments will not have a financial impact on the City of Fort Collins. There could be a cost savings for residents directly related to using less water. ENVIRONMENTAL IMPACTS Positive environmental impacts include water conservation, lower greenhouse gas emissions from less mowing, improved water quality from having less water runoff into the storm drain, and less pesticides and fertilizers. STAFF RECOMMENDATION Staff recommends adoption of these Ordinances on First Reading. PUBLIC OUTREACH If adopted, these Code amendments will be communicated to the public in several ways including: • Neighborhood News and CityNews newsletters • Education through Xeriscape and water-wise classes • Coloradoan article • Spotlight on the City’s website • Email distributions to homeowner’s associations and neighborhood group contacts ATTACHMENTS 1. Examples/Photos of Blue Grama Photos of grass types to be exempted from the current 6-inch height limit ORDINANCE NO. 093, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE IV OF CHAPTER 20 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING WEEDS, GRASS AND RUBBISH WHEREAS, Section 20-42 of the City Code requires that all weeds and grasses, with the exception of ornamental grasses consuming not more than twenty percent of the landscape, be kept to a maximum of six inches in height; and WHEREAS, in recent years, City staff has heard from citizens who would like to grow water-wise turfgrass, which requires a growth height of more than six inches to thrive; and WHEREAS, staff has researched water-wise turfgrass in collaboration with colleagues at both Colorado State University and the Larimer County Extension Offices and has concluded that Section 20-42 should be amended to provide an exception for water-wise turfgrass, including Blue Grama and Buffalograss, so as to allow such grasses to exceed six inches in height; and WHEREAS, staff has also concluded that Blue Grama and Buffalograss should be excluded from the definition of “ornamental grasses” under Section 20-42 so as to allow them to exceed twenty percent of the landscape; and WHEREAS, allowing Blue Grama and Buffalograss to exceed a height of more than six inches and to exceed more than twenty percent of the landscape would be consistent with the City’s message of encouraging water conservation and requiring quality and ecologically sound landscape design; and WHEREAS, staff has also proposed that the mowing of grasses in areas established as natural habitat or other such features pursuant to the Land Use Code be regulated according to the applicable provisions of the Land Use Code; and WHEREAS, staff has identified other minor amendments that should be made to City Code Sections 20-41 and 20-42 relating to weeds, grass and rubbish, including clarification of the scope of the prohibition against depositing or storing materials on adjacent open areas and public properties. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 20-41 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition entitled “Grass” which shall read in its entirety as follows: Grass shall mean any monocot plants of the family Poaceae, excluding any plants that are weeds, as that term is defined hereinafter. Section 2. That the definition “Ornamental grasses” contained in Section 20-41 of the Code of the City of Fort Collins is hereby amended to read as follows: Ornamental grasses shall mean any of the following grasses: yellow foxtail (Alopecurus pratensis), blue or western wheatgrass (Agropyron smithii or Pascopyrum smithii), big bluestem (Andropogon gerardii), bulbous oatgrass (Arrhenatherum elatius), sideoats grama (Bouteloua curtipendula), blue grama (Bouteloua gracilis or Chrondrosum gracile), rattlesnake or quaking grass (Briza media), feather reed grass (Calamagrostis acutiflora or C. arundinacea), northern sea oats (Chasmanthium latifolium), pampas grass (Cortaderia selloama), lemon grass (Cymbopogon citratus), tufted hair grass (Deschampsia caespitosa), blue lyme grass (Elymus arenarius), Canada wild rye (Elymus canadensis), bottlebrush squirreltail (Elymus elymoides), sand love grass (Eragrotis trichodes), ravenna or plume grass (Erianthus ravennae or Saccharum ravennae), blue fescue (Festuca cinerea, F. ovina or F. glauca), variegated mannagrass (Glyceria maxima variegata), blue oatgrass (Helictotrichon sempervirens), needle-n-thread (Hesperostipa comata), New Mexico feathergrass (Hesperostipa neomexicana), velvet grass (Holcus lanatus), foxtail barley (Hordeum jubatum), Japanese blood grass (Imperata cylindrica), junegrass (Koeleria cristata, K. gracilis or K. macrantha), woodrush (Leymus spp. or Luzula spp.), Great Basin wild rye (Leymus cinereus), hairy melic grass (Melica ciliata), giant Chinese silvergrass (Miscanthus floridulus or M. giganeus), Japanese silvergrass (Miscanthus oligostachys), silver banner grass (Miscanthus sacchariflorus), maiden grass or silvergrass (Miscanthus sinensis), moor grass (Molina caerulea), muhly grass (Muhlenbergia spp.), green needlegrass (Nassella viridula), Indian ricegrass (Oryzopis hymenoides or Achnatherum hymenoides), switchgrass (Panicum virgatum), feathergrass (Pennisetum alopecuroides), tender fountain grass (Pennisetum setaceum), feather top (Pennisetum villosum), ruby grass (Rychelytrum neriglume), little bluestem (Schizachyrium scoparium or Andropogon scoparius), autumn moorgrass (Sesleria autumnalis), Indian grass (Sorghastrum nutans or S. avenaceum), cord grass (Spartina spp.), frost or graybeard grass (Spodiopogon spp.), prairie dropseed (Sporobolus heterolepis) and any other species of grass approved by the City Manager that is customarily used for ornamental purposes and not as a turf grass. Section 3. That Section 20-41 of the Code of the City of Fort Collins is hereby amended by the addition of a new definition entitled”Water-wise” which shall read in its entirety as follows: Water-wise turfgrass shall mean blue grama (Bouteloua gracilis or Chrondrosum gracile) or buffalo grass (Buchloe dactyloides). Section 4. That Section 20-42 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 20-42. Weeds, unmowed grasses, refuse and rubbish nuisances prohibited. -2- (a) All weeds, brush piles, or unmowed grasses required to be mowed under Subsection (c) of this Section, refuse and rubbish on a property within the City are hereby declared to be a nuisance and a menace to the health and safety of the inhabitants of the City. (b) It is shall be unlawful for the owner or occupant of any property to permit refuse, or rubbish or brush piles to accumulate on any part of the property. All refuse shall be stored for prompt disposal on the premises in refuse containers, and the storage area shall be kept free of loose refuse. Any refuse or rubbish which by its nature is incapable of being stored in refuse containers may be neatly stacked or stored for prompt disposal. The number and size of refuse containers shall be sufficient to accommodate the accumulation of refuse from the property. Containers shall be secured and placed where they are screened from view of the street and are not susceptible to being spilled by animals or wind or other elements. (c) It shall be unlawful for the owner or occupant of any property to permit weeds to grow upon such property to a height of more than six (6) inches. (cd) Except as is provided in Subsection (de), (f) or (g) of this Section, it is unlawful for the owner or occupant of any property to permit weeds and grasses to grow upon such property to a height of more than six (6) inches; provided, however, that this Subsection (c) shall not be applicable to any ornamental grass so long as it is used solely, or in combination with any other ornamental grass or grasses, as a supplement to the property's overall landscaped area and does not constitute in square footage more than twenty (20) percent of the property's overall landscaped area. (de) It isshall be unlawful for the owner of any open area, ditch, ditch right-of-way or railroad right-of-way to allow the growth of weeds or grasses other than those grown for agricultural purposes upon such open area, ditch or right-of- way in excess to grow to a height of more than twelve (12) inches in height. (f) It shall be unlawful for the owner or occupant of any property to allow grasses in any area planted predominantly in water-wise turfgrass to grow to a height of more than twelve (12) inches. (g) Notwithstanding any other provisions of this Section which may be construed to the contrary, the owner or occupant of any property that includes an area that has been established as a natural habitat or feature pursuant to Section 3.4.1 (D) of the Land Use Code, or a buffer zone for natural habitat or feature pursuant to Section 3.4.1 (E) of the Land Use Code, which area is managed and maintained in accordance with specific conditions established in a site-specific development plan or development agreement, shall not be required to mow said areas other than as required in such development plan or agreement. (eh) It isshall be unlawful for the owner or occupant of any property to permit the -3- growth of noxious weeds as designated by the Colorado Weed Law or Larimer County Weed District, regardless of height. (fi) No person shall cause or allow the disposal of refuse or rubbish by burning except in an incinerator that is designed for such purpose and pursuant to an operating permit from the State Department of Public Health and Environment. In no event may rubbish or refuse be burned in a stove or fireplace except for clean, dry, untreated wood. (gj) No person shall, for a period longer than twenty-four (24) hours at any one (1) time, store or permit to remain on any business, commercial or industrial premises owned or occupied by such person, any manure, refuse, animal or vegetable matter or any foul or noxious liquid waste which is likely to become putrid, offensive or injurious to the public health, safety or welfare. (hk) No owner or occupant of any premises which are adjacent to any portion of any open area, vacant lot, ditch, detention pond, storm drain, or watercourse, or public right-of-way or other public property, nor any other person, shall cause the deposit or accumulation of refuse, or rubbish, or storage of any materialthe deposit, accumulation or storage of materials, chattels, or fixtures other than those ordinarily attendant upon the use for which the premises are legally intended, within or upon such adjacent areas. (il) The property owners and the prime contractors in charge of any construction site shall maintain the construction site in such a manner that refuse and rubbish will be prevented from being carried by the elements to adjoining premises. All refuse and rubbish from construction or related activities shall be picked up at the end of each workday and placed in containers which will prevent refuse and rubbish from being carried by the elements to adjoining premises. (jm) The accumulation of refuse and rubbish which constitutes or may create a fire, health or safety hazard or harborage for rodents is unlawful and is hereby declared to be a nuisance. (kn) The owner or occupant of any premises within the City, whether business, commercial, industrial or residential premises, shall maintain the property in a neat, tidy, methodical, systematic, clean and orderly condition, permitting no deposit or accumulation of materials other than those ordinarily attendant upon the use for which the premises are legally intended. If a property is used for a purpose (including, without limitation, a junkyard) which, by its fundamental nature, cannot be maintained as required above, then, in lieu thereof, such property, or any affected portion thereof, shall be completely screened from public view and from the view of any abutting property that is used for residential purposes. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. -4- _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -5- ORDINANCE NO. 094, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING ARTICLE VII OF CHAPTER 12 OF THE CODE OF THE CITY OF FORT COLLINS REGARDING RESOURCE CONSERVATION WHEREAS, on this same date, the City Council has adopted on first reading Ordinance No. 093 , 2011, which amends Chapter 20, Article IV City Code pertaining to weeds, grass and rubbish; and WHEREAS, the effect of these amendments is to allow water-wise turfgrass, including Blue Grama and Buffalograss, to exceed the six inch height limit contained in City Code Section 20-42; and WHEREAS, City staff has recommended that Section 12-120 of the City Code also be amended to include these water-wise turfgrasses as part of the Xeriscape landscaping definition, thereby prohibiting homeowner associations from restricting the use of these grasses; and WHEREAS, in addition, staff has developed an updated and improved definition of the term Xeriscape landscaping and has recommended that Section 12-120 be amended to reflect this improved language. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the definition of “Xeriscape landscaping” contained in Section 12-120 of the Code of the City of Fort Collins is hereby amended to read as follows: Xeriscape landscaping shall mean any or all of the followinglandscaping planned, designed, installed and maintained so as to create a landscape that is sustainable in Colorado’s semi-arid climate, based on seven basic principles: (1) Preparation of a plan identifying major elements of the landscape, including structures and plantings and characteristics influencing water requirements; (2) Soil improvements appropriate to optimize absorption and release of water for plantings given the soils present; (3) Use of efficient watering systems and practices to supplement water naturally supplied to plantings, as appropriate; (14) Grouping plants with similar light and water requirements together on the same irrigation zonesin an area that matches these requirements; (5) Use of appropriate mulches to keep plant roots cool, prevent soil from crusting, minimize evaporation and reduce weed growth; (26) Limiting high irrigationLimiting the use of turf and plantings to appropriate high-use areas with highwith high water requirements, with consideration of visibility and functional needs, and incorporating water-efficient alternative species, specifically including, but not limited to, water-wise turfgrasses, as defined in Section 20-41; (7) Providing appropriate water, pruning and fertilization, pest control and other maintenance to preserve the sustainability and health of the landscape. (3) Use of low-water demanding plants and turf; (4) Use of efficient irrigation systems; (5) Use of mulches. Xeriscape landscaping shall not include artificial turf or plants; mulched (including gravel) beds or areas without landscape plant material; paving of areas not required for walkways, patios, or plazas or parking areas; bare ground; or weed- covered or weed-infested surfaces. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -2- Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- DATE: July 19, 2011 STAFF: Steve Roy AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 18 SUBJECT First Reading of Ordinance No. 095, 2011, Amending the Appeals Procedure Contained in Chapter 2, Article II, Division 3 of the City Code Relating to the Procedures for Hearing Appeals to the City Council. EXECUTIVE SUMMARY This Ordinance changes the timing for the scheduling of appeal hearings and for requesting site inspections and also amends the appeals procedure so as to allow the general public to participate in the appeal hearing and to allow Councilmembers who have filed an appeal to participate in deciding the appeal. BACKGROUND / DISCUSSION The City Code establishes a procedure whereby the final decisions of boards, commissions and other decision makers can be appealed to the City Council. The current appeals procedure requires the City Clerk to schedule the hearing on an appeal no less than thirty nor more than sixty calendar days after the filing of the notice of appeal. The thirty-day period within which the hearing on an appeal must be scheduled can be limiting when the City Clerk is attempting to schedule a date that is mutually acceptable to the parties-in-interest, as well as feasible in light of other items to be considered by the Council at any particular meeting within said period. This Ordinance would require that the date of the hearing be set as expeditiously as possible, but no more than one hundred twenty calendar days after the date of filing of the notice of appeal. In addition, it would amend Section 2-55 pertaining to site inspections so as to change the period of time within which a Councilmember needs to request a site inspection. Also, at a City Council work session on June 14, 2011, the Council directed staff to prepare for its consideration two additional changes. The first of these would allow the public to participate in appeal hearings. The second would allow a Councilmember to participate in deciding an appeal even when he or she has filed the appeal under Section 2-49(4) of the Code. Presently, Section 2-48(c) prohibits Councilmembers who file an appeal from participating in deciding the appeal. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 095, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE APPEALS PROCEDURE CONTAINED IN CHAPTER 2, ARTICLE II, DIVISION 3 OF THE CODE OF THE CITY OF FORT COLLINS RELATING PROCEDURES FOR HEARING APPEALS TO THE CITY COUNCIL WHEREAS, Chapter 2, Article II, Division 3 of the City Code establishes a procedure whereby the final decisions of boards, commissions and other decision makers can be appealed to the City Council (the “Appeals Procedure”); and WHEREAS, the Appeals Procedure currently requires the City Clerk to schedule the hearing on an appeal so that the hearing is held no less than thirty nor more than sixty calendar days after the filing of the notice of appeal; and WHEREAS, the thirty-day period within which the hearing on an appeal must be scheduled often makes it difficult for the City Clerk to accommodate the schedules of parties-in-interest and, at the same time, allow sufficient time for the City Council to consider the other items on the agenda at any particular meeting within said period; and WHEREAS, City staff believes that these scheduling issues can be alleviated by expanding the period of time within which appeal hearings may be scheduled; and WHEREAS, the Appeals Procedure relating to the inspection of the site of a project development plan or other proposal that is the subject of an appeal requires that a Councilmember wishing to inspect the site notify the City Manager no later than ten days prior to the date of the hearing on the appeal if he or she wishes to conduct a site visit; and WHEREAS, this provision, when read in conjunction with the requirement that the appellant and all parties-in-interest be notified of the site visit no less than five days prior to the date of the hearing on the appeal, unduly compresses the period of time during which the City Council may conduct a site visit; and WHEREAS, the City Council has determined that the extension of time within which the City Council may schedule an appeal, and the proposed amendments to the provisions relating to site visits, are in the best interests of the City; and WHEREAS, at a work session held on June 14, 2011, the City Council discussed several other possible changes to the Appeals Procedure and, at the conclusion of that discussion, directed staff to prepare two additional amendments for Council’s consideration; and WHEREAS, the first such amendment would allow members of the general public, as well as parties-in-interest, to comment at the hearing on the merits of an appeal and the second would allow Councilmembers who file an appeal to participate in deciding the appeal; and WHEREAS, the City Council has determined that these additional amendments are also in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 2-48(c) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 2-48. Appeal of final decision permitted; effect of appeal; grounds for appeal. . . . (c) Appeals filed by members of the City Council need not include specific grounds for appeal, but shall include a general description of the issues to be considered on appeal. Upon the filing of any such appeal, the director of the affected City service area shall identify the specific Code provisions that may pertain to the issues raised by such appeal and shall provide such information to the City Clerk prior to the date that the notice of hearing on the appeal is to be mailed by the City Clerk to parties-in-interest under § 2-54. Said information shall then be mailed to the parties-in-interest together with the notice of hearing. Councilmembers who file an appeal shall not participate in deciding the appeal. Such Councilmembers may, however, participate in the appeal hearing in the same manner as other appellants, notwithstanding the provisions of Paragraph 2-568(c)(2)Councilmembers who file an appeal may participate in hearing such an appeal in the same manner as they participate in hearing appeals filed by other parties-in-interest. Section 2. That Section 2-54 of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 2-54. Scheduling of the hearing. (a) In the event of an appeal, the City Clerk shall schedule a date for hearing the appeal no less than thirty (30) noras expeditiously as possible, but no more than sixty (60)one hundred twenty (120) calendar days after the date of filing of the notice of appeal. Written notice of the date, time and place of the hearing shall be mailed by the City Clerk to the appellant and all other parties-in-interest no less than ten (10) calendar days prior to the date of said hearing. Said notice shall also include a copy of the notice of appeal or amended notice of appeal, as applicable, and shall inform the parties-in-interest of the period of time within which additional issues may be identified under § 2-56. (b) Any written materials that any party-in-interest may wish the City Council to consider in deciding the appeal and that fall within the exception to new evidence contained in Paragraph 2-57(b)(1) shall be submitted to the City Clerk no later than 12:00 p.m. on the Wednesday immediately preceding the date upon which the -2- hearing on the appeal is scheduled to be held. Such materials shall then be included by the City Clerk in the agenda materials pertaining to the appeal. Section 3. That Section 2-55 of the Code of the City of Fort Collins is amended to read as follows: Sec. 2-55. Site visitsinspection/no ex parte contacts. (a) If a Councilmember wishes to inspect the site of a project development plan or other proposal that is the subject of an appeal, he or she may, no later than ten (10) days prior to the date of the hearing on the appealafter the filing of the notice of appeal, request that the City Manager schedule such inspection. Upon receipt of such a request, the City Manager shall forthwith schedule the inspection for a date and time when he or she believes that thea majority of the Councilmembers wishing to inspect the site will be able to attend. The City Clerk shall, no less than five (5) days prior to the date of the hearing on the appealsite inspection, mail notice of the proposed sitesuch inspection to the appellant and to all parties-in-interest to whom notice of the appeal hearing was sent by the City Clerk under Subsection 2-54(a) of this Article. The appellant and all other parties-in-interest shall be entitled to attend such inspection, along with any members of City staff whose presence is requested by the City Manager. Any Councilmembers conducting a site inspection under this provision shall, at the hearing on the appeal, state on the record any observations they made or conversations they had at the site which they believe may be relevant to their determination of the appeal. The requirements of this provision shall not apply to observations made of the site by Councilmembers during the course of their travels within public rights-of-way adjacent to the site, but only to site inspections conducted for the express purpose of gathering additional information that may assist them in determining the appeal. (b) In order to afford all parties-in-interest a fair opportunity to respond to the information upon which the City Council is to base its decision on appeal, and in order to preserve the impartiality of Councilmembers hearing the appeal, all Councilmembers who intend to participate in hearing the appeal shall, to the extent reasonably possible, avoid communications with parties-in-interest and members of the general public regarding the merits of the appeal prior to the hearing on the appeal. Section 4. That Section 2-56(a) of the Code of the City of Fort Collins is hereby amended to read as follows: Sec. 2-56. Procedure at the hearing. (a) At the hearing on the appeal by the City Council, the presentation of argument on the merits of the appeal shall be made in the following order, subject to such limitations in time and scope as may be imposed at the discretion of the Mayor: -3- (1) Explanation of the nature of the appeal and presentation by City staff; (2) Comments by Councilmembers who have visitedinspected the site pursuant to Subsection 2-55(a); (3) Presentation of argument by the appellant and any party-in-interest and/or other member of the public in support of the appeal; (4) Presentation of argument by any party-in-interest and/or other member of the public who is an opponent of the appeal; (5) Rebuttal presentation by the appellant and any party-in-interest and/or other member of the public in support of the appeal; (6) Rebuttal presentation by any party-in-interest and/or other member of the public who is an opponent of the appeal; . . . Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -4- Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -5- DATE: July 19, 2011 STAFF: Steve Roy AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 19 SUBJECT Resolution 2011-060 Amending the Rules of Procedure Governing the Conduct of City Council Meetings. EXECUTIVE SUMMARY This Resolution would amend the rules of procedure that govern the conduct of City Council meetings with regard to citizen comment during the Citizen Participation segment of the meetings. The 30-minute time limit that currently exists for the Citizen Participation segment of the meetings would be eliminated and certain topics would be specified as not being appropriate for comment during that portion of the meeting: matters on the discussion agenda for the meeting and quasi-judicial matters. BACKGROUND / DISCUSSION Since 2003, the Council has conducted its meeting under rules of procedure that govern the length of meetings, citizen comment, Council questions and debate, and basic rules of order. The rules relating to citizen comment during the Citizen Participation segment of the meetings state that such comment will be limited to a total of 30 minutes. Over recent years, the practice has been to allow all citizens who wish to comment to do so, subject to limits on the amount of time that each citizen may speak. That time limit depends on the number of speakers. In order to conform this portion of the rules to the current practice, the Resolution would eliminate the 30-minute overall time limit. In addition, the Resolution would clarify the topics that are appropriate for comment by citizens under this segment of the meeting. The first clarification is that comment is not permitted on matters that will be addressed later in the meeting as part of the discussion agenda for the meeting. The second is that comment is not permitted on quasi- judicial matters that may in the future be considered by the Council during an appeal. The reason for this second clarification is twofold. First, quasi-judicial matters must be decided solely on the basis of the information that is provided to the original decision maker at a public hearing held for that purpose. To respect that requirement, comments made to the Council by citizens at a regular Council meeting would have to be transcribed and submitted to the decision maker for consideration at the quasi-judicial hearing so that all parties directly affected by the decision could be made aware of the comments and have an opportunity at the hearing to respond to them. In addition, the Council must remain impartial if it is to hear an appeal of the original decision makers’ decision. Comments made during Citizen Participation may compromise the Council’s impartiality if the matter addressed by the citizens later comes to the Council on appeal. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. RESOLUTION 2011-060 OF THE COUNCIL OF THE CITY OF FORT COLLINS AMENDING THE RULES OF PROCEDURE GOVERNING THE CONDUCT OF CITY COUNCIL MEETINGS WHEREAS, the City Council has previously adopted rules of procedure governing the conduct of City Council meetings (the “Rules of Procedure”); and WHEREAS, the City Council wishes to amend Section 3a of the Rules of Procedure dealing with citizen comment so as to eliminate the 30-minute time limit that currently exists for the Citizen Participation segment of the Council meetings and to clarify the topics that are appropriate for citizen comment. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the following revised rules governing the conduct of all regular City Council meetings are hereby adopted by the City Council: Section 1. Order of Business. Council business shall be conducted in the following order: Proclamations and Presentations. (Prior to the meeting) Pledge of Allegiance Call Meeting to Order Roll Call Citizen Participation Citizen Participation Follow-up Agenda Review Consent Calendar Consent Calendar Follow-up Staff Reports Councilmember Reports Items Needing Individual Consideration Pulled Consent Items Other Business Adjournment Section 2. Length of Meetings a. Council meetings will begin precisely at 6:00 p.m. Proclamations will be presented prior to the meeting at approximately 5:30 p.m. or such earlier time as may be necessary in order for the presentation of proclamations to end by 6:00 p.m. b. No more than two (2) ten-minute breaks will be planned per meeting. All Councilmembers and staff will return to their seats in the Council Chambers at the conclusion of each ten-minute break. The Mayor will resume the meeting at the prescribed time. c. 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 the Council, will be continued to the next regular Council meeting and will be placed first on the discussion agenda for such meeting. Section 3. Citizen Comment. a. Up to thirty (30) minutes will be allowed for citizen comment during the “Citizen Participation” segment of each meeting. During the “Citizen Participation” segment of each meeting, citizen comment will be allowed on matters of interest or concern to citizens other than the following: (1) items to be considered by the City Council under the discussion agenda for that night’s meeting; (2) quasi-judicial matters that may be the subject of future consideration by the City Council on appeal from a City board or commission or other decision maker. A maximum of five (5) minutes will be allowed per speaker. In order to determine the actual amount of time to be allotted to each speaker, the Mayor will ask for a show of hands by all persons intending to speak. If the number of persons intending to speak is more than six (6), the Mayor will shorten the allotted time in order to allow as many people as possible to address the Council. within thirty (30) minutes. b. Citizen input will be received with regard to: (i) each item on the discussion agenda, (ii) each item pulled from the consent agenda, and (iii) any item that is addressed by formal Council action under the “Other Business” segment of the meeting that may directly affect the rights or obligations of any member of the general public. Such citizen input will be permitted only once per item regardless of the number of motions made during Council’s consideration of the item. -2- c. The time limits for individual citizen comments regarding agenda items will be established by the Mayor prior to each such item. In order to determine the amount of time to be allotted to each speaker, the Mayor will ask for a show of hands by all persons intending to speak to the item. If the number of persons indicating an intent to speak to an item is twelve (12) or less, each speaker will generally be allowed five (5) minutes. If the number of persons indicating an intent to speak to an item is thirteen (13) or more, each speaker will generally be limited to three (3) minutes per item. However, the Mayor may increase or decrease the time limits per speaker as he or she deems necessary to facilitate the City Council’s understanding of the item, or to allow the Council to consider and act upon the item in a timely fashion. d. Any determination of the Mayor with regard to the foregoing time limits may be overridden by a majority vote of the Council. Section 4. Council Questions and Debate. Council questions and debate regarding an agenda item will occur immediately following citizen input and prior to entertaining any main motion related to the item. Except when raising a point of order, Councilmembers seeking to ask questions or participate in debate will do so only when called upon by the Mayor. The Mayor may limit or curtail questions or debate as he or she deems necessary for the orderly conduct of business, except as overridden by a majority of Councilmembers present and voting, pursuant to a point of order. No Councilmember will speak to an item more than once until all other Councilmembers have had an opportunity to be heard. Section 5. Basic Rules of Order. The following commonly used rules of order will govern the conduct of City Council business. Except as specifically noted, all motions require a second. These rules of order are based upon Robert’s Rules of Order Newly Revised and have been modified as necessary to conform to existing practices of the Council and to the requirements of the City Charter. For example, while a two-thirds vote is necessary for the passage of some of the motions listed below under Robert’s Rules of Order, all motions of the Council, except a motion to go into executive session or a motion to adopt an emergency ordinance, may be adopted upon approval of a majority vote of the members present at a Council meeting, pursuant to Art. II, Sec. 11 of the City Charter. If there is a question of procedure not addressed by these rules, reference shall be made to Robert’s Rules of Order for any needed clarification or direction. In the event of any conflict between these rules of order and Robert’s Rules of Order, these rules of order shall prevail. In the event of any conflict between these rules of order or Robert’s Rules of Order and the City Charter or City Code provisions, the City Charter or City Code provision shall prevail. -3- Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk -4- DATE: July 19, 2011 STAFF: Jill Stilwell AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 20 SUBJECT Resolution 2011-061 Adopting the Recommendations of the Cultural Resources Board Regarding Fort Fund Disbursements. EXECUTIVE SUMMARY The Cultural Development and Programming and Tourism Programming accounts (Fort Fund) provide grants to fund community events. This resolution will adopt the recommendations from the Cultural Resources Board to disburse these funds. BACKGROUND / DISCUSSION The Fort Fund program, established in 1989, disburses funds from the City’s Cultural Development and Programming Account and the Tourism Account in accordance with the provisions of Section 25-244 of the City Code, where 25% of the revenue from the lodging tax is utilized for this program. Local non-profit organizations may apply to Fort Fund for cultural event support. The City Council-appointed Cultural Resources Board reviews grant applications based on approved guidelines and makes recommendations for Fort Fund disbursements to City Council, pursuant to Ordinance No. 28, 1992 and Section 2-203 (3) of the City Code. Fort Fund grants support events that enrich the cultural life of the community, promote local heritage and diversity, provide opportunities for cultural participation, help define Fort Collins as a cultural center and tourist destination, have wide appeal for a significant part of the community, and promote the general welfare of the City’s inhabitants. Fort Fund consists of a three-tiered funding system: Tier #1 was established as an annual programming fund for organizations whose primary purpose is to present three or more public events annually. These groups may apply for funding from Tier #1 each April. Tier #2 allows organizations that are not eligible for Tier #1 support to apply for funding of events. Applications for support from Tier #2 are accepted each January and June. The Cultural Innovation Fund (CIF) Tier (formerly Tier #4) was established to further the goal of making Fort Collins a cultural center and destination. The CIF Tier grants address a need in the cultural activity of Fort Collins, perpetuate the Tourism Fund by generating over night stays in local hotels, and/or develop new arts, cultural, or heritage tourism activities that have the potential to impact Fort Collins’ cultural and economic growth. Organizations may apply for funding from the CIF Tier each April. June 2011 Funding Session At its June 29, 2011 regular meeting, the Cultural Resources Board reviewed applications submitted for Tier #2 funding. The Cultural Resources Board reviewed 26 applications with total requests equaling $322,762. The following table summarizes the amount and sources of available funds in 2011: FY 2011 AVAILABLE FUNDING AMOUNT SOURCE $195,146 FY 2011 Cultural Development and Programming Account (Fund 1) $70,672 FY 2011 Tourism Programming Account (Fund 2) $265,818 Total Funding Available for 2011 July 19, 2011 -2- ITEM 20 FUNDS ALLOCATED TO JUNE 2011 FUNDING SESSION 17% % of Total FY 2011 Funds allocated to the June Funding Session $55,518 Total Funds Allocated to the June Funding Session $27,846 Amount from Cultural Development and Programming Account (Fund 1) $27,672 Amount from Tourism Programming Account (Fund 2) The Cultural Resources Board scored each application using the eleven Funding Criteria outlined in the Fort Fund Guidelines (attachment 1) and discussed each application at the meeting. The Board discussion is outlined in the June 29, 2011 draft minutes (attachment 2). The Board is recommending disbursement of $26,200 from the City’s Cultural Development and Programming account and $10,000 from the Tourism Programming account, totaling $36,200 to 17 applicants as outlined in Exhibit A to the Resolution. The requests totaled $68,815 and $55,518 was available. Of the total amount requested and considered, 53% is being recommended for funding with available funds. The following table summarizes the utilization of funds from all sources. Recommended Funding % of Total Category $26,200 47% Cultural Development and Programming Account $10,000 18% Tourism Programming Account $19,318 35% Unallocated $55,518 100.0% Funds Allocated for June Funding Session The $19,318 of unallocated funds will be carried over to the 2012 funding sessions. FINANCIAL / ECONOMIC IMPACTS The Fort Fund program, established in 1989, disburses funds from the City’s Cultural Development and Program Account and the Visitor Events Account in accordance with the provisions of Section 25-244 of the City Code, where 25% of the revenue from the lodging tax is designated for this use. Local non-profit organizations may apply to Fort Fund for cultural event support and must match the grant amount. These funds were budgeted and appropriated in the 2011 budget. The non-profit arts are a $15.9 million industry in Fort Collins (Arts & Economic Prosperity III - Americans for the Arts). By awarding these grants, the City is partnering with 17 organizations to leverage a variety of cultural events that contribute to this economic impact and add to the community’s quality of life. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION The Cultural Resources Board presents recommendations as to which events should receive funding from the available Cultural Development and Programming and Tourism Accounts. Exhibit A to the Resolution lists the allocations recommended by the CRB to the City Council for Tier 2. The Cultural Resources Board recommends adoption of the Resolution, as reflected in the attached June 29, 2011 meeting minutes. ATTACHMENTS 1. Fort Fund Guidelines 2. Cultural Resources Board minutes (Draft), June 29, 2011 1 2 3 4 5 6 7 8 9 10 Cultural Resources Board Lincoln Center 417 W. Magnolia St Fort Collins, CO 80521 970.221-6735 970.221-6373 – fax . DRAFT CULTURAL RESOURCES BOARD MINUTES Regular Meeting – Wednesday, June 29, 2011 5:00 p.m. Webster House, 301 E. Olive Street, Fort Collins, CO 80521 Council Liaison: Aislinn Kottwitz Staff Liaison: Jill Stilwell Chairperson: Jan Gilligan Phone: 224-2481 (h) Vice-Chair: Chris Clemmer A regular meeting of the Cultural Resources Board was held on Wednesday, June 29, 2011 at 5:00 p.m. The following members were present: Board Members present: Janet Gilligan, Carol Ann Hixon, Sue Beck-Ferkiss John Hayes, Patrick Moran, Chris Clemmer, Diane Gaede Board Members absent: none Staff Members present: Jill Stilwell, Gail Budner Guests Present: none I. Call to Order: 5:15 p.m. - Ms. Jan Gilligan II. Consideration of agenda: No changes III. Consideration and approval of minutes from May 26, 2011. Ms. Beck-Ferkiss made a motion to accept the minutes as amended. Mr. Moran seconded the motion. The motion passed unanimously. IV. Public input: None V. Fall grant writing seminar: The Board confirmed October 10th from 4:00 p.m. to 5:30 p.m. as the date that they would like to conduct a seminar on How to Apply for a Fort Fund Grant for current and future Fort Fund applicants. They will review the new criteria, guidelines, and applications with the attendees and apprise them of their expectations when considering funding awards. VI. Fort Fund - Discussion and funding recommendations: Mr. Clemmer abstained from scoring the Discovery Science Center application. His new toy company, BeginAgain will be working with the new Museum Discovery Center on potential programs which may include brand presence on site. He requested information regarding the Board members responsibility and the proper procedure when dealing with this situation. Ms. Budner will include “Conflict of Interest” forms in future Fort Fund binders for the Board members. Ms. Beck-Ferkiss requested that an additional line be added to the applications requiring the name of the organization that the non profit status is currently registered under. Prior to reviewing and awarding grant monies to the Fort Fund applicants, the Board discussed the quality and eligibility of the applications and the available budget for this session. The Board then reviewed 19 Tier 2 applications and developed their recommendations for funding as outlined below and on the attached spreadsheet: ARCINDA: JAVA and Beyond…an Ultimate in Diversity Location: Bas Bleu Theatre, May 15, 2012 The event includes a workshop session about Indonesian culture, a demo on playing Gamelan, a children's program and a stage performance of Indonesian Gamelan and Javanese Music. This event was not recommended for funding due to the applications low score. Amount Requested: $1,300 Amount Recommended: 0 Colorado All State Orchestra: Colorado All State Orchestra Location: CSU and the Lincoln Center, February 9-11, 2012 The event provides the opportunity for those students who have auditioned from around the state, the chance to come together for a week-end of making orchestral music. Amount Requested: $3,155 Amount Recommended: $1,000 Discovery Science Center: New Museum Celebration Events Location: New Museum, November 4, 2011 - May 4, 2012 Three planned events will be open to the community to highlight and celebrate the opening of the new museum facility. Amount Requested: $5,000 Amount Recommended: $3,000 Elderhaus Day Program, Inc.: Elderhaus Senior Prom Location: Poudre High School, January 20, 2012 This annual event is intended to bridge life-span and bring together different generations who may have different abilities. Amount Requested: $2,435 Amount Recommended: $500 Eracism Film Series Committee: Eracism Film and Discussion Series Location: Poudre River Library District, Main & Council Tree Branches and the Northside Aztlan Center, September 21- October 5, 2011 The purpose of this series is to create an awareness of issues of race as they exist specifically in Colorado and Fort Collins and to help "erase racism" by addressing common concerns faced by many. Amount Requested: 1,200 Amount Recommended: $ 500 Fort Collins Children's Theatre: Rodgers & Hammerstein's "Cinderella" Location: Lincoln Center, November 18-20, 2011 This event will have a cast of children and adults, plus a live orchestra to attract an audience of all ages and to raise the level of live community musical theatre in the Fort Collins area. Amount Requested: $5,000 Amount Recommended: $3,000 Fort Collins Figure Skating Club: 2012 Midwestern Sectional Figure Skating Championships Location: Edora Pool and Ice Center (EPIC), November 15-19, 2011 This event is a major sporting event. It is sanctioned by U.S. Figure Skating and is the second level of qualifying competitions leading to the national championship. Amount Requested: 5,000 Amount Recommended: $3000 Lincoln Center Support League: Lincoln Center Grand Re-opening Week-end Location: Lincoln Center, September 16-17, 2011 After being closed for more than a year, the newly renovated and expanded Lincoln Center will reopen with two special events (ArtWear and The MidTown Men) over one grand reopening week- end. Amount Requested: $5,000 Amount Recommended: $3,500 Fort Collins Museum of Art: Week of Fire: A Celebration of the American Studio Glass Movement Location: Fort Collins Museum of Art, March 11-12, 2012 This will be the only event of it's kind in Colorado and will include a week-end of lectures, tours, demonstrations and panel discussions on glass art. Amount Requested: $4,000 Amount Recommended: $2,500 Fort Collins Reads: Fort Collins Reads 2011 Location: Fort Collins Hilton, November 12, 2011 This is a one book city program that selects a book and promotes its reading and discussion. The major event will include a talk by the Pulitzer Prize winning author of March. Amount Requested: $5,000 Amount Recommended: $3,000 Fort Collins Symphony Association: Silent Film Night - November 2011 and St Patrick’s Day Parade – March 17, 2017 Location: Everyday Joe's and CFC's parade route The Symphony will host an event where they recreate a small local orchestra which used to provide music for accompanying movies before talkies. They will also participate in the St. Patrick's Day Parade. Amount Requested: $1,700 Amount Recommended: $1,000 Fort Collins Symphony Guild: The 2012 Musical Zoo Location: Either Timberline Church or RMHS, February 25 or 26, 2012 This event is designed for children, especially those between the age of 3 to 10. It showcases musicians playing instruments in a petting zoo, in ensembles, and in an orchestra. Amount Requested: $4,000 Amount Recommended: $3,200 Friends of the Gardens on Spring Creek: Garden of Lights Location: The Gardens on Spring Creek, December 2-31, 2011 This is an annual holiday light display where visitors stroll through the gardens while enjoying live holiday music, treats, visits from Santa and other activities. Amount Requested: $5,000 Amount Recommended: $3,500 Friends of Larimer County Parks and Open Lands: Northern Colorado Birding Fair Location: Fossil Creek Reservoir Regional Open Space, September 24, 2011 The Fair is a free day of fun and learning of all ages where visitors can celebrate the sights and sounds of wild birds in the region. Amount Requested: $3,975 Amount Recommended: $2,000 Holy Family Church: Holy Family Fiesta 2011 Location: Holy Family Church, August 5-7, 2011 The Fiesta is an annual event that celebrates the founding of the Church and the Holy Family and also the Hispanic/Latin culture. This event was not recommended for funding as it did not meet the eligibility requirements. Amount Requested: $5,000 Amount Recommended: $0 IBM Ring 250/The Presto-Digitators: Magic In The Rockies 2011 Magic Convention Location: Old Town Square, Marriott, Lincoln Center, September 7-11, 2011 This regional magic convention is open to the public and features some of the world's greatest magicians. Amount Requested: $5,000 Amount Recommended: $3,500 Opera Fort Collins Guild: Songs in Summer Location: The Hixon Residence, August 4, 2011 This event is a fundraiser with selections from operas and operettas being sung in an outdoor setting. Amount Requested: $1,700 Amount Recommended: $1,000 Rocky Mountain Raptor Program: Celebrate Kids at "A Playday For the Raptors" Location: Edora Park, September 17, 2011 This event is filled with numerous activities, exhibits and interactive demonstrations geared to families spending time together outdoors. Amount Requested: $2,500 Amount Recommended: $500 Team Fort Collins: Down For Life Hip Hop Expo Location: Northside Aztlan Community Center, March 3, 2012 The on-going purpose of this event is to provide healthy alternative activities to local youths and to promote making fun, healthy choices. It includes local performances and one 'big name' performer. Amount Requested: $2,800 Amount Recommended: $1,500 Total Funding Requested by Applicants: $68,765 Total Funding Recommended for disbursement by CRB: $36,200 Total Unfunded Balance: $32,565 % of Requests Funded: 53% Ms. Hixon made a motion to submit these recommendations for Fort Fund disbursements to City Council as outlined below Dr. Gaede seconded the motion. The motion passed unanimously. VII. Fort Fund applicant change request: The Board reviewed a memo from the Fort Collins Wind Symphony regarding a change in their funded season event schedule. Ms. Beck-Ferkiss motioned that no changes in funding were necessary for them to fulfill their contractual obligations. Ms. Hixon seconded the motion. The motion passed unanimously. The Board reviewed and discussed an e-mail sent to Ms. Stilwell from Walt Jones with the CSU Theatre Program regarding an ineligible event that they had previously applied for. The Board requested additional information regarding the funding received by Lambda Community Center in January for an event that was partially cancelled. Ms. Budner will follow up with the organization to determine if they have met their contractual obligations and report back to the Board at the July meeting. VIII. Other Business: Ms. Stilwell reported on the status of the Lincoln Center renovation and the time line for its soft and grand re-opening. Ms. Stilwell also reported on the status of the Museum Discovery Center and dispelled the current misconceptions surrounding the funding for the facility. A review of the funding situation will be on the agenda at the July 5th City Council meeting. Ms. Stilwell will report on the Council’s position at the July meeting. IX. Past Fort Fund events: none X. Adjournment: 7:20 p.m. Respectfully submitted, Gail Budner Administrative Clerk II RESOLUTION 2011-061 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE RECOMMENDATIONS OF THE CULTURAL RESOURCES BOARD REGARDING FORT FUND DISBURSEMENTS WHEREAS, the City disburses funds from the City’s Cultural Development and Programming Account and Tourism Programming Account in accordance with the provisions of Section 25-244 of the City Code through its Fort Fund Program; and WHEREAS, the City’s Cultural Resources Board reviews applications for Fort Fund monies and makes recommendations to the City Council in accordance with the provisions set forth in Section 2-203(3) of the City Code, and in accordance with the administrative guidelines for the Fort Fund program (the “Fort Fund Guidelines”); and WHEREAS, pursuant to Section 25-244 of the City Code, the Cultural Development and Programming Account was established for the purpose of funding cultural development and programming activities and the Tourism Programming Account was established for the purpose of funding tourist-related special events; and WHEREAS, at its regular meeting on June 29, 2011, the Cultural Resources Board recommended funding for various proposals as set forth on Exhibit “A”, attached and incorporated herein by this reference, based upon the criteria and considerations set forth in Section 2-203 and the Fort Fund Guidelines; and WHEREAS, the proposals recommended by the Cultural Resources Board provide a public benefit to the Fort Collins community by supporting cultural development and programming activities, and promote the utilization of public accommodations within the City; and WHEREAS, the City Council wishes to adopt the recommendations of the Cultural Resources Board. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that funds in the total amount of TWENTY SIX THOUSAND TWO HUNDRED DOLLARS ($26,200.00) in the City’s Cultural Development and Programming Account and TEN THOUSAND DOLLARS ($10,000.00) in the City’s Tourism Programming Account be distributed in accordance with the recommendations of the Cultural Resources Board as set forth on Exhibit “A”. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk Fort Fund Tier 1 PERCENT OF FUNDING UNFUNDED REQUEST APPLICANT PROPOSED EVENT/DATE REQUEST FUND 1 FUND 2 BALANCE FUNDED ARCINDA* JAVA and Beyond…an Ultimate in Diversity Location: Bas Bleu Theatre May 15, 2012 The event includes a workshop session about Indonesian culture, a demo on playing Gamelan, a children's program and a stage performance of Indonesian Gamelan and Javanese Music $1,300 $0 $0 $1,300 0% Colorado All State Orchestra Colorado All State Orchestra Location: CSU and the Lincoln Center February 9-11, 2012 The event provides the opportunity for those students who have auditioned from around the state, the chance to come together for a week-end of making orchestral music. $3,155 $0 $1,000 $2,155 32% Discovery Science Center New Museum Celebration Events Location: Fort Collins Museum of DiscoveryNovember 4, 2011 - May 4, 2012 Three planned events will be open to the community to highlight and celebrate the opening of the new museum facility . $5,000 $3,000 $0 $2,000 60% Elderhaus Day Program, Inc. Elderhaus Senior Prom Location: Poudre High School January 20, 2012 This annual event is intended to bridge life-span and bring together different generations who may have different abilities. $2,435 $500 $0 $1,935 21% Eracism Film Series Committee Eracism Film and Discussion Series Location: Poudre River Library District, MainSeptember 21- October 5, 2011 Council Tree branches, and the Atzlan Center The purpose of this series is to create an awareness of issues of race as they exist specifically in Colorado and Fort Collins and to help "erase racism" by addressing common concerns faced by many. $1,200 $500 $0 $700 42% Fort Collins Children's Theatre Rodgers & Hammerstein's "Cinderella" Location: Lincoln Center November 18-20, 2011 This event will have a cast of children and adults, plus a live orchestra to attract an audience of all ages and to raise the level of live community musical theatre in the Fort Collins area. $5,000 $3,000 $0 $2,000 60% Fort Collins Figure Skating Club 2012 Midwestern Sectional Figure Skating Location: Edora Pool and Ice Center (EPIC)Championships November 15-19, 2011 This event is a major sporting event. It is sanctioned by U.S. Figure Skating and is the second level of qualifying competitions leading to the national championships. $5,000 $0 $3,000 $2,000 60% Lincoln Center Support League Lincoln Center Grand Re-opening Week-end Location: Lincoln Center September 16-17, 2011 After being closed for more than a year, the newly renovated and expanded Lincoln Center will reopen with two special events (ArtWear and The MidTown Men) over one grand reopening week-end. $5,000 $3,500 $0 $1,500 70% Fort Collins Museum of Art Week of Fire: A Celebration of the American Location: Fort Collins Museum of Art Studio Glass Movement March 11-12, 2012 This will be the only event of it's kind in Colorado and will include a week-end of lectures, tours, demonstrations and panel discussions on glass art. $4,000 $0 $2,500 $1,500 63% EXHIBIT A CULTURAL RESOURCES BOARD'S RECOMMENDATION Fort Fund Grant Program April 2011 PERCENT OF FUNDING UNFUNDED REQUEST APPLICANT PROPOSED EVENT/DATE REQUEST FUND 1 FUND 2 BALANCE FUNDED Fort Collins Reads Fort Collins Reads 2011 Location: Fort Collins Hilton November 12, 2011 This is a one book city program that selects a book and promotes its reading and discussion. The major event will include a talk by the Pulitzer Prize winning author of March. $5,000 $3,000 $0 $2,000 60% Fort Collins Symphony Association Silent Film Night - November 2011 Location: Everyday Joe's and CFC's paradeSt. Patrick's Day Parade - March 17, 2012 The Symphony will host an event where they recreate a small local orchestra which used to provide music for accompanying movies before talkies. They will also participate in the St. Patrick's Day Parade. $1,700 $1,000 $0 $700 59% Fort Collins Symphony Guild The 2012 Musical Zoo Location: Either Timberline Church or RMH February 25 or 26, 2012 This event is designed for children, especially those between the age of 3 to 10. It showcases musicians playing instruments in a petting zoo, in ensembles, and in an orchestra. $4,000 $3,200 $0 $800 80% Friends of the Gardens on Garden of Lights Spring Creek December 2-31, 2011 Location: The Gardens on Spring Creek This is an annual holiday light display where visitors stroll through the gardens while enjoying live holiday music, treats, visits from Santa and other activities. $5,000 $3,500 $0 $1,500 70% Friends of Larimer County Parks and Northern Colorado Birding Fair Open Lands September 24, 2011 Location: Fossil Creek Reservoir Regional Open Space The Fair is a free day of fun and learning of all ages where visitors can celebrate the sights and sounds of wild birds in the region. $3,975 $2,000 $0 $1,975 50% Holy Family Church* Holy Family Fiesta 2011 Location: Holy Family Church August 5-7,2011 The Fiesta is an annual event that celebrates the founding of the Church and the Holy Family and also the Hispanic/Latin culture. $5,000 $0 $0 $5,000 0% IBM Ring 250/The Presto-Digitators Magic In The Rockies 2011 Magic Convention Location: Old Town Square, Marriott, LincolSeptember 7-11, 2011 This regional magic convention is open to the public and features some of the world's greatest magicians. $5,000 $0 $3,500 $1,500 70% Opera Fort Collins Guild Songs in Summer Location: The Hixon Residence August 4, 2011 This event is a fundraiser with selections from operas and operettas being sung in an outdoor setting. $1,700 $1,000 $0 $700 59% Rocky Mountain Raptor Program Celebrate Kids at "A Playday For the Raptors" Location: Edora Park September 17, 2011 This event is filled with numerous activities , exhibits and interactive demonstrations geared to families spending time together outdoors. $2,500 $500 $0 $2,000 20% Team Fort Collins Down For Life Hip Hop Expo Location: Northside Aztlan Community Cen March 3, 2012 The on-going purpose of this event is to provide healthy alternative activities to local youths and to promote making fun, healthy choices. It includes local performances and one 'big name' performer. $2,800 $1,500 $0 $1,300 54% Total Funding Requested by Applicants $68,765 Total Funding Recommended for disbursement by CRB $26,200 $10,000 Total Unfunded Balance $32,565 % of Requests Funded 53% *These events were not recommended for grants due to their ineligibilty or to low scores. Scores are based on application materials and Fort Fund's "Criteria for Funding." CULTURAL RESOURCES BOARD'S RECOMMENDATION DATE: July 19, 2011 STAFF: Wanda Krajicek AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 21 SUBJECT Resolution 2011-062 Making Appointments to the Retirement Committee and the Women’s Commission. EXECUTIVE SUMMARY A vacancy currently exists on the Retirement Committee due to the resignation of Dick Burkhartzmeyer. Councilmembers Ben Manvel and Wade Troxell reviewed the applications on file. The interview team is recommending John Lindsay to fill the vacancy with a term to begin immediately and set to expire on December 31, 2011. A vacancy also exists on the Women’s Commission due to the resignation of Randi Nelson. Applications were solicited and Councilmembers Ben Manvel and Wade Troxell conducted interviews. The interview team is recommending Jan Hawn to fill the vacancy with a term to begin immediately and set to expire on December 31, 2012. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. RESOLUTION 2011-062 OF THE COUNCIL OF THE CITY OF FORT COLLINS MAKING AN APPOINTMENTS TO THE RETIREMENT COMMITTEE AND THE WOMEN’S COMMISSION WHEREAS, a vacancy currently exists on the Retirement Committee due to the resignation of Dick Burkhartzmeyer; and WHEREAS, a vacancy currently exists on the Women’s Commission due to the resignation of Randi Nelson; 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 current vacancies on the boards and commissions hereinafter indicated, with terms to begin immediately and to expire as set forth after each name: Retirement Committee Expiration of Term John Lindsay December 31, 2011 Women’s Commission Expiration of Term Jan Hawn December 31, 2012 Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk DATE: July 19, 2011 STAFF: Ken Waido AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 25 SUBJECT Items Relating to the Completion of the 2011 Spring Cycle of the Competitive Process for Allocating City Financial Resources to Affordable Housing and Community Development Activities Utilizing the Federal Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Programs, and the City’s Human Services Program. A. Public Hearing and Resolution 2011-063 Approving the Programs and Projects that Will Receive Funds from the Federal Community Development Block Grant Program, the Home Investment Partnerships Program, and the City’s Human Services Program. B. Public Hearing and Resolution 2011-064 Approving the Fiscal Year 2011 Administration and Project Budgets for the Home Investment Partnerships Program. C. First Reading of Ordinance No. 096, 2011, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Community Development Block Grant Fund. D. First Reading of Ordinance No. 097, 2011, Appropriating Unanticipated Revenue and Authorizing the Transfer of Appropriations Between Program Years in the Home Investment Partnerships Fund. E. Public Hearing and Resolution 2011-065 Eliminating Restrictions on the Use of Affordable Housing Funds Currently Earmarked for the Acquisition of Former Rental Properties. EXECUTIVE SUMMARY Resolution 2011-063 will complete the 2011 spring cycle of the competitive process for allocating City financial resources to affordable housing programs/projects and community development activities by listing the specific programs/projects that will receive funding starting October 1, 2011. Ordinance No. 096, 2011, appropriates the City’s FY 2011 CDBG Entitlement Grant from the Department of Housing and Urban Development (HUD). Resolution 2011- 064 establishes the major funding categories within the HOME Program for the FY 2011 program year, which also starts on October 1, 2011. Specific projects for the use of HOME funds will be determined in November as a result of the 2011 fall cycle of the competitive process. Ordinance No. 097, 2011, appropriates the City’s FY 2011 HOME Participating Jurisdiction Grant from HUD. Resolution 2011-065 eliminates the restriction on $60,000 of Affordable Housing Fund dollars that they be used for the acquisition of former rental properties by first-time home buyers to allowing the funds to be used for the purchases of non-rental properties. BACKGROUND / DISCUSSION Resolution 2011-063 establishes which programs and projects will receive funding with CDBG funds for the FY 2011 program year (including funds from the Entitlement Grant and Program Income), which starts on October 1, 2011; which programs and projects will receive funding from carry-over funds from the HOME Program; and which programs will receive funding from the City’s 2011 Human Services Program. The CDBG Commission presents to the City Council a list of recommendations as to which programs and projects should receive funding. The following table summarizes the total amount and sources of all available CDBG, HOME, and City funds for distribution during the spring cycle of the competitive process: July 19, 2011 -2- ITEM 25 AMOUNT SOURCE $923,469 FY 2011 CDBG Entitlement Grant 61,815 FY 2011 CDBG Program Income 8,883 Prior Year’s CDBG Program Income 191,338 FY 2010 Unprogrammed CDBG Funds 211,906 FY 2010 Unprogrammed HOME Funds 102,381 FY 2010 Unprogrammed HOME CHDO Funds 25,328 FY 2004 Unprogrammed HOME Funds 389,601 2011 City Human Services Program 150,733 2011 City Human Services KFCG Funds $2,065,454 Total Funding Available Unprogrammed funds are funds from previous years that have yet to be allocated to specific programs or projects. Program Income includes repayments from rehabilitation loans and home buyer assistance loans along with repayments from development loans. Community Housing Development Organization (CHDO) funds are HOME funds that need to be reserved for allocation to agencies which qualify as CHDOs including the Fort Collins Housing Corporation, CARE Housing, and Neighbor-to-Neighbor, Inc.. The FY 2011 CDBG Entitlement Grant and CDBG Program Income totals $994,167. HUD regulations limit a maximum of 20% of these funds, or $198,832, for planning and program administrative purposes. The following table summarizes the amount and sources of available funds for planning projects and CDBG Program administrative costs: Funding for Planning and CDBG Program Administration AMOUNT SOURCE $184,693 20% of the FY 2011 CDBG Entitlement Grant 12,363 20% of FY 2011 CDBG Program Income 1,776 20% of Prior Year’s CDBG Program Income $198,832 Total Funding Available for Planning and CDBG Program Administration HUD regulations limit a maximum of 15% of the FY 2011 CDBG funds and CDBG Program Income, or $149,124 for use in the Public Services category. The City’s 2011 Human Services Program adds $389,601 and Human Services Program KFCG funds adds an additional $150,733, for use in the category, for a total of $689,458 of available funding. The following table summarizes the amount and sources of available funds for public/human service proposals: Funding for Public/Human Services AMOUNT SOURCE $138,520 15% of the FY 2011 CDBG Entitlement Grant 9,272 15% of FY 2011 CDBG Program Income 1,332 15% of Prior Year’s CDBG Program Income 389,601 2011 City Human Services Program 150,733 2011 City Human Services KFCG Funds $689,458 Total Funding Available for Public/Human Services Proposals Considering the set-asides for Planning and Administration and Public/Human Services presented above, the balance of the FY 2011 CDBG Entitlement Grant and CDBG Program Income amounts, or $646,211, plus $191,338 of unprogrammed FY 2010 CDBG funds, $211,906 of unprogrammed FY 2010 HOME funds, $102,381 of unprogrammed FY 2010 HOME CHDO funds, and $25,328 of unprogrammed FY 2004 HOME CHDO funds, provide an amount of $1,177,164 available for allocation to affordable housing proposals. The following table summarizes the amount and sources of available funds for affordable housing proposals: July 19, 2011 -3- ITEM 25 Funding for Affordable Housing AMOUNT SOURCE $600,256 FY 2011 CDBG Entitlement Grant 40,180 FY 2011 CDBG Program Income 5,775 Prior Year’s CDBG Program Income 191,338 FY 2010 Unprogrammed CDBG Funds 211,906 FY 2010 Unprogrammed HOME Funds 102,381 FY 2010 Unprogrammed HOME CHDO Funds 25,328 FY 2004 Unprogrammed HOME CHDO Funds $1,177,164 Total Funding Available for Affordable Housing Proposals The City received 31 applications for funding and a staff administration request as part of the 2011 spring cycle of the competitive process requesting a total of $2,678,987. The total amount of funds available from all sources is $2,065,454. The total of application requests is, thus, $613,533 more than the amount of available funding. Also, HUD regulation limitations within the Public Services category results in a total of $260,697 more in requests than available funds for the category. Unfortunately, funds in the Planning and Administration and Affordable Housing categories can not be used to fund any Public Service applications. The following table summarizes the amount of funding requests compared to the amount of funding available for each of the major funding categories. Category Number of Applications Requested Funding Available Funding Request-Available Difference Affordable Housing 3 $1,530,000 $1,177,164 -$352,836 Public Services 28 $950,155 $689,458 -260,697 Administration - $198,832 $198,832 0 Totals 31 $2,678,987 $2,065,454 $-613,533 Removing Restrictions on the Use of Affordable Housing Funds in the Home Buyer Assistance Program The City’s Home Buyers Assistance (HBA) Program uses funding from the HOME and CDBG federal grants and the City’s Affordable Housing Fund (AHF). In the past, normal assistance has been split with 50% coming from the HOME Program and 50% coming from the CDBG Program (federal regulations limit the use of CDBG funds to be no more than 50% of the total assistance). The City’s AHF dollars have been earmarked for assistance to families wishing to purchase former rental housing units (for the use of federal funds, federal regulations require rental units to be vacant for three months in order to avoid displacement concerns and relocation payments). With the change in federal HOME regulations, it is now basically impossible to continue using HOME funds as the 50% match to CDBG funds in providing down payment and closing cost assistance in the HBA Program. Staff is suggesting that the City change its policy regarding the use of the AHF in the HBA program, eliminating the condition that they be used only for the acquisition of former rental units and allowing the funds to be used for any home purchase. Staff’s request is to remove the “former rental unit only” restriction for $60,000 of AHF dollars already approved through the competitive process for the HBA. This $60,000 could then be used to match $60,000 of CDBG funds already allocated to the HBA Program. This would still leave $84,000 of AHF to assist first-time home buyers wishing to purchase former rental units. Without the ability to use AHF as a match, assistance in the HBA would be limited to CDBG funds, or only half the amount of assistance families would need to acquire a new home. Stated another way, without a 50% match to CDBG funds, families would need to have between $4,000 and $5,000 of their own money to buy a home – not many low- income families have that amount of funds available. The CDBG Commission discussed this issue at its monthly meeting on February 10, 2011, and voted unanimously to recommend the requested change in the use of AHF dollars (see Attachment 8). The Affordable Housing Board discussed this issue at its monthly meeting on March 3, 2011, and voted unanimously to recommend the requested change in the use of AHF dollars (see Attachment 9). Resolution 2011-065 would eliminate the restrictions on the use of $60,000 of Affordable Housing Funds currently earmarked for the acquisition of former rental properties and permit the funds to be used for the acquisition of any home by a first-time home buyer. July 19, 2011 -4- ITEM 25 FINANCIAL / ECONOMIC IMPACTS The Community Development Block Grant (CDBG) Program, and the Home Investment Partnership (HOME) Program provide federal funds from the Department of Housing and Urban Development (HUD) to the City of Fort Collins which can be allocated to housing and community development related programs and projects, thereby, reducing the demand on the City’s General Fund Budget to address such needs. The total amount of CDBG funds available for allocation during FY 2011 is $1,185,505, while the total amount of HOME funds for FY 2011 is $644,352. Together, the CDBG and HOME programs provide $1,829,857 of federal funds to the City. The City’s General Fund does contribute $389,601 in the Human Services Program and $150,733 of KFCG funds for allocation during the spring cycle, and $325,024 of Affordable Housing Fund dollars for the fall cycle of the competitive process. Through the provision of affordable housing, more of Fort Collins’ work force can reside within the community. This means there is an available labor pool within the city, which is a positive benefit to economic sustainability. Public/human service programs contribute to economic sustainability by providing such programs as job training and child care, so workers can maintain their employment. ENVIRONMENTAL IMPACTS Affordable housing programs help provide for a healthy environment. By offering affordable housing options for lower income people, more of Fort Collins’ work force can live in the community instead of being forced to live outside the community and commute into the city for work. This helps reduce traffic congestion and, thus, improves air quality. Affordable housing developers, including for-profit and non-profit agencies, are utilizing green building practices. Green building practices are being used in both new construction and major rehabilitation of existing housing unit projects. These practices include geo-thermal applications and other energy saving techniques. All affordable housing projects utilizing CDBG and HOME funds are required to pass a HUD environmental review which covers such items as noise impacts, floodplains, hazardous materials, etc. STAFF RECOMMENDATION Staff recommends adoption of the Resolutions and the Ordinances on First Reading. BOARD / COMMISSION RECOMMENDATION Community Development Block Grant (CDBG) Commission Recommendations The CDBG Commission presents recommendations as to which programs and projects should receive funding from the available funding sources presented above, including CDBG funds and the Human Services Program (HSP). The following tables present the allocations recommended by the Commission to the City Council within each major category: Planning and Administration Applicant Project/Program Request and Recommendation Source(s) of Funding Unfunded Balance Percent of Request Funded AD-1 City of Fort Collins CDBG Administration Request $198,832 Recommendation $198,832 $198,832 FY 2011 CDBG Entitlement Grant CDBG Program Income $0 100% July 19, 2011 -5- ITEM 25 Affordable Housing Applicant Project/Program Request and Recommendation Source(s) of Funding Unfunded Balance Percent of Request Funded HO-1 Fort Collins Housing Authority – Land Acquisition Request $350,000 Recommendation $0 $0 $350,000 0% HO-2 Fort Collins Housing Corporation & Cornerstone – Legacy Senior Residences Request $430,000 Recommendation $427,164 $87,549 FY 2010 CDBG $211,906 FY 2010 HOME $102,381 FY 2010 CHDO $25,328 FY 2004 CHDO $2,836 99% HO-3 Merten – Union Place Request $750,000 Recommendation $750,000 $600,256 FY 2011 CDBG $40,180 FY 11 CDBG PI $5,775 CDBG PI $103,789 FY 2010 CDBG $0 100% All funding recommendations in the Affordable Housing category are in the form of a “Due on Sale Loan + 5% Simple Interest.” Public Service Applicant Project/Program Request and July 19, 2011 -6- ITEM 25 Applicant Project/Program Request and Recommendation Source(s) of Funding Unfunded Balance Percent of Request Funded PS-7 Center for Family Outreach – Diversion Program for Youth/Parents Request $17,500 Recommendation $0 $0 $17,500 0% PS-8 Childsafe Research & Treatment Foundation – Child Abuse Program Request $30,000 Recommendation $0 $0 $30,000 0% PS-9 Crossroads Safehouse: Advocacy Program Request $99,216 Recommendation $42,202 $16,469 (HSP grant) $25,733 (HSP KFCG grant) $57,014 43% PS-10 Disabled Resource Services: Access to Independence Program Request $28,442 Recommendation $28,442 $28,442 (HSP grant) $0 100% PS-11 Education and Life Training Center: Employment Skills Training Request $22,009 Recommendation $19,483 $19,483 (CDBG grant) July 19, 2011 -7- ITEM 25 Applicant Project/Program Request and Recommendation Source(s) of Funding Unfunded Balance Percent of Request Funded PS-21 Northern Colorado AIDS Project - Client Services Request $29,500 $24,500 (HSP grant) $5,000 83% PS-22 Project Self- Sufficiency: Services for Single-Parent Families $33,000 Recommendation $22,000 $22,000 (HSP KFCG grant) $11,000 67% PS-23 Rehabilitation and Visiting Nurse Association: Home Health Care Scholarships Request $35,000 Recommendation $35,000 $9,049 (CDBG grant) $25,951 (HSP grant) $0 100% PS-24 Respite Care: Sliding Scale Fee Tuition Assistance Request $30,000 Recommendation $30,000 $30,00 (HSP grant) $0 100% PS-25 Suicide Resource Center – R.A.P.P & Hope for Today Programs Request $3,000 Recommendation $3,000 $3,000 (HSP KFCG grant) July 19, 2011 -8- ITEM 25 Amount Source $599,259 FY 2011 HOME Participating Jurisdictions Grant 45,093 FY 2011 HOME Program Income $644,352 Total HUD regulations allow a maximum of 10% of the HOME grant, or $59,925, and certain portions of eligible Program Income, or $5,992, for a total of $65,917, for program administrative purposes. HUD regulations also require a 15% set-aside of the HOME Grant, or $89,888, for Community Housing Development Organizations (CHDOs). The following table summarizes the distribution of HOME funding. Recommended Funding % of Total Category $65,917 10.2% HOME Program Administration 89,888 14.0% Community Housing Development Organizations 488,547 75.8% Other Affordable Housing Projects $644,352 100.0% Total PUBLIC OUTREACH HUD regulations require a 30-day public comment period on the proposed allocation of CDBG and HOME funds as recommended by the CDBG Commission. Staff placed an ad in the Coloradoan newspaper presenting the list of recommended funding for programs/projects and indicated the public comment period would start on May 13, 2011, and end on June 13, 2011. No public comments were received. ATTACHMENTS 1. Background and Summary of the CDBG Commission’s Recommendations for Funding 2. Background Information on the Competitive Process 3. Affordable Housing Board’s Comments 4. Background Information on the CDBG and HOME Federal Programs 5. CDBG Commission’s Funding Recommendations, Meeting Minutes May 12, 2011 6. Focus Questions for CDBG Commission Decision Making 7. Formulation of Funding Recommendations Session 8. CDBG Commission minutes, February 10, 2011 9. Affordable Housing Board minutes, March 3, 2011 10. PowerPoint Presentation ATTACHMENT 1 BACKGROUND AND SUMMARY OF CDBG COMMISSION’S RECOMMENDATIONS FOR FUNDING At the July 19, 2011, regular City Council meeting, the Council will be conducting a public hearing and consider the adoption of a resolution establishing which programs and projects will receive funding with Community Development Block Grant (CDBG), Home Investment Partnership (HOME), and City Human Services Program funds for the FY 2011 Program year, which starts on October 1, 2011. The resolution establishing which programs and projects will receive funds represents the culmination of the spring cycle of the Competitive Process approved in January 2000 by the Council for the allocation of the City’s financial resources to affordable housing programs/projects and community development activities. Additional background material about the Competitive Process is included in Attachment 2. Since early January of this year, the CDBG Commission and members of the City staff’s Affordable Housing and Human Services program Team have conducted public hearings to assess community development and housing needs in Fort Collins, conducted technical assistance training workshops for applicants, and solicited applications for funding. The City’s Affordable Housing Board reviewed the written applications for affordable housing projects and forwarded comments on the proposals to the CDBG Commission. See Attachment 3 for a copy of the Board’s comments sent to the CDBG Commission. The CDBG Commission, in addition to reviewing the written applications, personally interviewed each applicant, analyzed the applications, and formulated a list of recommendations to the City Council as to which programs and projects should receive funding. The Commission also considered the funding guidelines contained in the Affordable Housing Strategic Plan 2010-2014 report adopted by the Council in July 2010. These guidelines include: • HOME funds should generally be allocated as follows: 90% for Housing programs and projects and 10% for Program Administration. HUD HOME Program regulations also require the City to set aside 15% for Community Housing Development Organization (CHDO) projects and allow an allocation of 5% for CHDO operations; • CDBG funds should generally be allocated as follows: 65% for Housing programs and projects. HUD CDBG Program regulations also permit up to a maximum of 15% for Public Services, and up to a maximum of 20% for Planning and Program Administration. The CDBG and HOME Programs are ongoing grant administration programs funded by the Department of Housing and Urban Development (HUD). The City of Fort Collins has received CDBG Program funds since 1975 and HOME Program funds since 1994. The City is an Entitlement recipient of CDBG funds and a Participating Jurisdiction recipient of HOME funds, meaning the City is guaranteed a certain level of funding each year. The level of funding is 1 dependent on the total amount of funds allocated to the programs by Congress and on a formula developed by HUD, which includes data on total population, minorities as a percentage of population, income levels, housing stock conditions, etc. Additional background information on the City's HOME and CDBG Programs are presented in Attachment 4. The Human Services Program (HSP) was formerly the Community Partnership Program, a joint human services funding venture between the City of Fort Collins and Larimer County. Historically administered by the County, the City’s funding portion of the program switched to internal administration as a result of the 2006 Budgeting for Outcomes (BFO) process. In a focus towards streamlining government processes, improving customer service, and fine tuning desired results, the Human Services Program has been folded into the spring cycle of the City’s semi-annual Competitive Process, which manages a variety of funding streams. Funding awarded to programs target households in Fort Collins whose incomes are at 80% or below of Area Median Income (AMI). Those monies help fill other funding gaps, and lower the cost of housing and other basic services for our community citizens who are most vulnerable and in need. By empowering and stabilizing families, these funds strengthen and improve the fundamental building blocks of Fort Collins – neighborhoods. AVAILABLE FUNDS The following table summarizes the amount and sources of all available CDBG and City funds for distribution during the spring cycle of the competitive process: Available Funding AMOUNT SOURCE $923,469 FY 2011 CDBG Entitlement Grant 61,815 FY 2011 CDBG Program Income 8,883 Prior Year’s CDBG Program Income 191,338 FY 2010 Unprogrammed CDBG Funds 211,906 FY 2010 Unprogrammed HOME Funds 102,381 FY 2010 Unprogrammed HOME CHDO Funds 25,328 FY 2004 Unprogrammed HOME Funds 389,601 2011 City Human Services Program 150,733 2011 City Human Services KFCG Funds $2,065,454 Total Funding Available Unprogrammed funds are funds from previous years that have yet to be allocated to specific programs or projects. Program Income includes repayments from rehabilitation loans and home buyer assistance loans along with repayments from development loans. Community Housing Development Organization (CHDO) funds are HOME funds that need to be reserved for allocation to agencies which qualify as CHDOs including the Fort Collins Housing Corporation, CARE Housing, and Neighbor-to-Neighbor, Inc. 2 SELECTION PROCESS The selection process for the City's FY 2011 Spring Competitive Process began on January 13, 2011, when the CDBG Commission held a public hearing to obtain citizen input on community development and affordable housing needs. The Advance Planning Department placed legal advertisements in local and regional newspapers starting in January to solicit requests for housing and community development projects for FY 2011. The application deadline was Thursday February 17, 2011. The Competitive Process utilizes an on-line application (ZoomGrants). At the close of the deadline the City received 31 applications and a staff program administration proposal requesting a total of approximately $2.7 million. On March 10, 2011, copies of the housing applications were distributed to the Affordable Housing Board and copies of all applications were distributed to the CDBG Commission. On Friday March 25, 2011, the Affordable Housing Board conducted a special meeting to review the affordable housing proposals and formulate a priority listing of the applications (see Attachment 3). On Tuesday March 29, Wednesday March 30, and Thursday March 31, the Commission met to hear presentations and ask clarification questions from each applicant. The Commission then met on Thursday May 12 for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded for the FY 2011 program year. At this meeting the Commission reviewed the written applications, the applicant's verbal presentation, the information provided during the question and answer session, and reviewed the performance of agencies who received funding in other previous years. The Commission then worked on the formulation of their list of recommendations. CDBG COMMISSION'S LIST OF RECOMMENDATIONS In addition to HUD funding limitations (20% for Planning and Administration and 15% for Public Services), the Commission had to decide which applicants presented programs and projects which best fit the City's needs and follow the funding priorities contained in the Affordable Housing Strategic Plan 2010-2014. Listed below is a summary of each applicant's initial request for funding and the Commission's list of recommendations. PLANNING AND ADMINISTRATION AD-1 CITY OF FORT COLLINS CDBG ADMINISTRATION Request: $198,832 Recommendation: $198,832 FY 2011 CDBG Entitlement Grant and Program Income The CDBG Program Administration budgets covers salary and benefits for two program administrators (total of 1.2 FTEs), an Administrative Assistant (1.0 FTE), the Chief Planner (.50 FTE), and the Advance Planning Department Director (.05 FTE), and operating expenses for the program. 3 AFFORDABLE HOUSING APPLICATIONS HO-1 HO-1 CITY OF FORT COLLINS HOUSING AUTHORITY – LAND ACQUISITION Request: $350,000 due on sale loan/5% simple interest on principal Recommendation: $0 The FCHA is requesting funding to purchase 10 acres of the Spring Creek Farms Overall Development Plan (ODP). The site will eventually provide a total of 120 units of affordable housing for families with incomes between 30% and 60% of Area Median Income (AMI). Phase I will consist of 60 units, with 73% of the units (44 of the 60 unit total) for families earning less than 50% AMI. The project will be built using "Green" building concepts. HO-2 FORT COLLINS HOUSING CORPORATION & CORNERSTONE – LEGACY SENIOR RESIDENCES Request: $430,000 due on sale loan/ 5% simple interest on principal Recommendation: $427,164 Component parts of the funding: $ 87,549 Unprogrammed FY 10 CDBG 211,906 Unprogrammed FY 10 HOME 102,381 Unprogrammed FY 10 HOME 25,328 Unprogrammed FY 04 HOME Legacy Senior Residences is a joint venture between the Fort Collins Housing Corporation and Cornerstone Associates, LLC to provide affordable senior housing in downtown Fort Collins. The applicant wishes to utilize funding for specific costs related to the development of a new- construction 72 unit affordable senior complex to be located at 411 Linden. According to the application, the funds will be used for the following project-specific costs: on-site infrastructure, engineering and construction costs related to “Green” development. HO-3 MERTEN – UNION PLACE Request: $750,000 due on sale loan/ 5% simple interest on principal Recommendation: $750,000 Component parts of the funding: $600,256 FY 2011 CDBG Entitlement Grant 40,180 FY 2011 Program Income 5,775 Prior Years CDBG Program Income 103,789 Unprogrammed FY 10 CDBG Union Place will be a 100% affordable senior housing community located on W. Willox Lane. All homes will be available to seniors with income between 30% and 60% of AMI. The project is being built using renewal energy resources and is striving to be a LEED certified development. 4 PUBLIC SERVICE APPLICATIONS PS-1: B.A.S.E. CAMP: SLIDING SCALE FEE TUITION & TRANSPORTATION ASSISTANCE Request: $57,000 Recommendation: $57,000 FY 2011 CDBG Grant B.A.S.E. Camp is a before- and after-school child care service, and also provides full-day care for “school-out” days and the 11-week summer break. This application requests funding to cover the gaps created when serving low-income families with reduced fees. PS-2 BOYS AND GIRLS CLUB: AFTER-SCHOOL AND SCHOOL-BREAK CHILD CARE AND YOUTH ACTIVITIES Request: $19,892 Recommendation: $18,644 2011 City Human Services Program The Boys and Girls Club has requested assistance for its long-standing after-school and summer care program. The Club charges an annual fee of only $5 and provides activities for a wide age- range of kids. This application requests $19,892 to supplement the salaries of 20% of the Program Directors and 10% of the Junior Staff. PS-3 CARE HOUSING: SUPPORTIVE SERVICES Request: $25,000 Recommendation: $0 CARE Housing is requesting assistance to provide supportive services to their residents and the community. Examples of the services proposed are classes in financial literacy, job seeking, nicotine addiction and parenting. Funding would be used to provide half the salary of a full-time staff person who would arrange and coordinate the services provided by other community partners. PS-4 COURT APPOINTED SPECIAL ADVOCATES (CASA) – PROJECT SUPPORT Request: $14,976 Recommendation: $ 9,360 2011 City Human Services Program CASA provides trained community advocates for children who have been abused and/or neglected by their parents. CASA is requesting assistance with 24% of the salary and benefits for two CASA case supervisors who provide training and supervision to the children’s advocates. PS-5 CATHOLIC CHARITIES: SENIOR SERVICES Request: $12,000 Recommendation: $11,331 2011 City Human Services Program Senior Outreach Services provides assistance to at-risk elderly with the goal of enabling them to remain as independent as possible. Funding would cover 28% of the salary and benefits of one full-time case manager. 5 PS-6 CATHOLIC CHARITIES: THE MISSION SHELTER AND SUPPORTIVE SERVICES Request: $75,000 Recommendation: $40,000 FY 2011 CDBG Grant Catholic Charities’ shelter provides shelter, food, case management, resource referrals, and benefits application assistance in support of the homeless and near homeless. This application requests City funds of $75,000 to cover 65% of the salaries ($109,464) of the overnight staff (2.8 FTE total), 30% of case management staff ($64,000, 1.375 FTE) and 25% of the shelter director’s salary ($41,900). PS-7 CENTER FOR FAMILTY OUTREACH: DIVERSION PROGRAM FOR YOUTH/PARENTS Request: $17,500 Recommendation: $0 The Center for Family Outreach provides early intervention for youth ages 10 to 18 (and their parents) who are experiencing risky behaviors such as alcohol use and drugs. Funding requested would partially cover the salary for one case manager to implement the Diversion Program. PS-8 CHILDSAFE: CHILD ABUSE TREATMENT PROGRAM Request: $30,000 Recommendation: $0 ChildSafe provides treatment to children who have been sexually abused and adults molested as children. Funding requested would provide treatment scholarships for 62 children and adults who are low income. PS-9 CROSSROADS SAFEHOUSE: ADVOCACY PROGRAM Request: $99,216 Recommendation: $42,202 Component parts of the funding: $16,469 2011 City Human Services Program 25,733 2011 City Human Services Program KFCG Funds Crossroads provides services and outreach to abused adults at both a safehouse shelter and an outreach center. This application requests City funds of $99,216 to fund 35% of all advocates’ salaries. PS-10 DISABLED RESOURCE SERVICES: ACCESS TO INDEPENDENCE Request: $28,442 Recommendation: $28,442 2011 City Human Services Program The ATI Program provides supportive case management and community assistance to increase the independence of severely disabled adults. This application requests $28,442 to pay for a portion of four case managers’ salaries. 6 PS-11 ELTC: EMPLOYMENT SKILLS TRAINING Request: $22,009 Recommendation: $19,483 FY 2011 CDBG Grant The Employment Skills Training program provides a variety of fast-track coursework and life skills training to low-income adults. This application requests $22,009 to cover the partial salaries of part-time instructors who provide direct service in four major education areas. PS-12 ELDERHAUS: MINDSET THERAPY CENTER ACTIVITY PROGRAM Request: $23,592 Recommendation: $23,592 FY 2011 CDBG Grant Mindset provides at-risk elderly and/or disabled adults with activities which enhance their ability to function independently. It also provides a respite for caregivers. This application seeks City funding of $23,592 to supplement the salaries of the Lead Program Director and one of three Program Directors. PS-13: FAMILY CENTER: SLIDING SCALE FEE TUITION ASSISTANCE Request: $30,000 Recommendation: $30,000 2011 City Human Services Program The Family Center provides affordable child care for infants, toddlers and preschool-aged children. This application requests $30,000 to provide scholarships for low- income households. PS-14 FOOD BANK FOR LARIMER COUNTY: KIDS CAFE PROGRAM Request: $21,000 Recommendation: $21,000 2011 City Human Services Program Kids Cafe provides meals for children ages 3 to 18 who are at risk of hunger. Meals are provided without regard to the income of the child’s family, but the sites where the meals are provided contain schools with the highest eligibility rates for free or reduced priced lunches. This application requests $22,000 to cover the partial salary of the Kids Cafe Manager and driver. PS-15 HOMELESSNESS PREVENTION INITIATIVE: EMERGENCY RENT ASSISTANCE Request: $45,000 Recommendation: $45,000 2011 City Human Services Program KFCG Funds Emergency Rent Assistance provides temporary funding to cover the cost of rent for families facing eviction. This application requests $45,000 to cover one-time assistance towards rent for 489 individuals (or approximately 163 households). 7 PS-16 LARIMER CENTER FOR MENTAL HEALTH: COMMUNITY DUAL DISORDERS TREATMENT (CDDT) Request: $27,082 Recommendation: $14,000 2011 City Human Services Program The CDDT is a collaboration of Larimer Center for Mental Health, the Health District of Northern Larimer County and the Fort Collins Housing Authority which combines intensive case management and therapeutic services with housing assistance for persons with severe mental illness and severe substance abuse disorders. The request would cover 50% of the cost for a therapist for one year. (Note: the City also funds a portion of the rental assistance through a 2009 grant for Tenant Based Rental Assistance.) PS-17 LARIMER CENTER FOR MENTAL HEALTH: EMPLOYMENT ASSISTANCE AT THE MURPHY CENTER Request: $16,012 Recommendation: $0 The Larimer Center for Mental Health’s Employment Assistance Program at the Murphy Center provides specialized case management to clients seeking employment or seeking to improve their current employment situation. The request would cover 43% of the salary cost for a full-time Employment Case Manager for one year. PS-18 MATTHEWS HOUSE: TRANSITION PROGRAM Request: $27,639 Recommendation: $27,639 2011 City Human Services Program The Matthews House intensively works with at-risk, homeless, and abused youth, ages 16-21, transitioning them to become contributing adult community members. Case management, independent living skills, and aftercare are offered towards achieving self-sufficiency. The request of $27,639 is for 50% of two FT case manager salaries. City funds would be used for case management for youth who do not come to the program through any contract basis (e.g. homeless youth). PS-19 NEIGHBOR TO NEIGHBOR: HOUSING COUNSELING Request: $69,205 Recommendation: $40,175 Component parts of the funding: $10,175 2011 City Human Services Program 30,000 2011 City Human Services Program KFCG Funds Housing Counseling consists of the following services: Emergency Rent Assistance Counseling, Pre-rental Counseling, Landlord/Tenant Counseling, Pre-purchase Counseling/Homebuyer Classes and Training, Mortgage Default Counseling and Reverse Mortgage Counseling. Neighbor to Neighbor has requested $69,205 in funding to fully fund one full-time Rental Housing Counselor and 70% of the salary for the full-time Foreclosure Prevention Counselor. 8 PS-20 NEIGHBOR TO NEIGHBOR: EMERGENCY RENT ASSISTANCE Request: $25,000 Recommendation: $25,000 2011 City Human Services Program KFCG Funds Neighbor to Neighbor’s Emergency Rent Assistance (ERA) Program provides rent assistance and first month’s rent for residents who need financial assistance to maintain housing. N2N has requested $25,000 in funding to subsidize 200 persons (75 households). PS-21 NORTHERN COLORADO AIDS PROJECT: CLIENT SERVICES Request: $29,500 Recommendation: $24,500 2011 City Human Services Program The Case Management and Homeless Prevention Programs help families and individuals coping with HIV/AIDS retain their household stability and health as their ability to be financially independent diminishes. NCAP has requested $29,500. Of that, $14,000 will supplement the salaries of Direct Service Providers (five total employed). The remainder will be distributed as follows: Food Bank -- $3,500; Housing Assistance -- $4000; Emergency Assistance (utility payments, emergency care, etc.) -- $4000; Medical/Prescriptions -- $4,000. PS-22 PROJECT SELF-SUFFICIENCY: SERVICES FOR SINGLE-PARENT FAMILIES Request: $33,000 Recommendation: $22,000 2011 City Human Services Program The mission of Project Self-Sufficiency is to assist single parents in their efforts to build and maintain strong, healthy families, achieve economic independence, and become free from community and government assistance. They have requested $33,000 to pay 16.5% of the salaries and benefits for three PS-S Advisors (representing 20 advisor hours/week) who work with program participants living in Fort Collins. PS-23 REHABILITATION AND VISITING NURSE ASSOCIATION: HOME HEALTH CARE SCHOLARSHIPS Request: $35,000 Recommendation: $35,000 Component parts of the funding: $ 9,049 FY 2011 CDBG Grant 25,951 2011 City Human Services Program RVNA provides home care services, skilled and unskilled, as well as acute and long-term care in the client’s home. Services include nursing, physical therapy, occupational therapy, speech therapy, medical social services, certified nurse aide service, personal care service and homemaking services. RVNA has requested $35,000 of Public Service funds to pay for both skilled and unskilled service for low-income clients. 9 PS-24 RESPITE CARE: SLIDING SCALE FEE TUITION ASSISTANCE Request: $30,000 Recommendation: $30,000 2011 City Human Services Program Respite Care offers day and overnight care as a service for families who have children (up to age 21) with developmental disabilities. Public Service funds of $30,000 are being requested to help with childcare scholarship assistance for low-income families. PS-25 SUICIDE RESOURCE CENTER: R.A.P.P. PROGRAM AND HOPE FOR TODAY PROGRAM Request: $3,000 Recommendation: $3,000 2011 City Human Services Program KFCG Funds The Suicide Resource Center’s R.A.P.P. Program and Hope for Today Program provides education and awareness for middle and high school populations to recognize mental health disorders and suicidal behavior and provides the tools to seek help for those in need. The request would pay for printing costs for the materials and resources needed for the programs. PS-26 TEACHING TREE: SLIDING SCALE FEE TUITION ASSISTANCE Request: $60,000 Recommendation: $60,000 2011 City Human Services Program Teaching Tree provides full-day early child care and education programs. $60,000 is being requested to subsidize the difference between the parent fee and the actual cost of care for 55 children in low-income families. PS-27 VOLUNTEERS OF AMERICA: HOME DELIVERED MEAL PROGRAM Request: $29,200 Recommendation: $29,200 2011 City Human Services Program Volunteers of America, in a program that targets low-income and minority seniors, delivers 5 to 7 free, nutritious frozen meals per week to homebound and geographically isolated members of our community. The requested $29,200 in funding would supplement the actual cost of meals provided for 10,000 regular meals. PS-28 WOMEN’S RESOURCE CENTER: DENTAL CONNECTIONS Request: $44,890 Recommendation: $32,890 2011 City Human Services Program WRC’s Dental Connections Program is a new program that will provide oral health care to low income people and others who face specific barriers to care. The Program is a collaboration of the Dental Health Partnership, area health-care providers, human service agencies and others which will manage the provision of care to underserved individuals. The request of $44,890 will pay for 60% of the salary and benefits of the Dental Specialist, fees to dental labs and reimbursements to dental providers. 10 11 A summary of the Commission's funding recommendations by category is presented in the following table: Recommended Funding % of Total Category $1,177,164 57.0% Affordable Housing 689,458 33.4% Public Services 198,832 9.6% CDBG Administration $2,065,454 100.0% Total The CDBG Commission has recommended all (100%) of the available funding amount of $2,065,435 be allocated. The Commission has recommended that one of the three affordable housing proposals receive full funding; one to receive 99% of its request; while the third proposal is recommended for no funding. The Commission has recommended that 13 of the 28 public service proposals receive full funding; 11 proposals receive partial funding (ranging from 43% to 94%); and 4 proposals receive no funding. The justifications for the Commission’s recommendations can be found in Attachment 5, Minutes of the May 12, 2011 meeting. Attachment 6 contains the focus questions used by the Commission to review the applications. Attachment 7 contains information on how the Commission’s session where they formulate their funding recommendations was to be conducted. ATTACHMENT 2 Background Information on the Competitive Process for the Allocation of City Financial Resources to Affordable Housing Programs/Projects and Other Community Development Activities In February of 1999, the City Council approved the Priority Affordable Housing Needs and Strategies report, which contained the following strategy: Change from an administrative funding mechanism...to a competitive application process for the Affordable Housing Fund. Between September and November of 1999, a subcommittee consisting of members from the Affordable Housing Board and the Community Development Block Grant (CDBG) Commission met with staff to review issues and develop options for establishment of a Competitive Process. In addition, the staff solicited ideas from existing affordable housing providers. The subcommittee established the following Mission Statement for their work: Develop a competitive application process and establish a set of shared criteria for the allocation of the City’s financial assistance resources to affordable housing projects/programs that address the City’s priority affordable housing needs. Competitive Process Five options for a Competitive Process were reviewed and discussed by the subcommittee. The subcommittee reached a general consensus to support a Competitive Process that involved both the Affordable Housing Board and the CDBG Commission. The option selected would have the Affordable Housing Board providing recommendations to the City Council in regards to affordable housing policy. In addition, the option would have the Affordable Housing Board reviewing all affordable housing applications for CDBG, HOME and Affordable Housing funds. The Board would then provide a priority listing of proposals to the CDBG Commission. The CDBG Commission would then make the final recommendations to the City Council for funding. Funding Cycles The subcommittee also agreed that there should be two funding cycles per year, one in the spring and the other in the fall. CDBG Program funds would be allocated in the spring to affordable housing programs/projects and other community development activities (public services, public facilities, etc.). HOME Program and Affordable Housing funds would be allocated in the fall primarily to affordable housing programs/projects. 1 The staff and subcommittee agreed that overlaying the new process and cycles would be heightened staff technical assistance to applicants. Both the subcommittee and staff recognize that a semi-annual process will require additional meetings by both the CDBG Commission and Affordable Housing Board, and will require more time from current City staff, and increase the City Council’s involvement. Schedule The subcommittee also discussed two alternative schedules for the funding cycles. The option selected incorporates a spring cycle that starts in January and ends in May, and a fall cycle that starts in July and ends in November. Review Criteria The subcommittee also discussed and agreed to a new set of review criteria to be used to rank proposals. The criteria are divided into the following five major categories: 1. Impact/Benefit 2. Need/Priority 3. Feasibility 4. Leveraging Resources 5. Capacity and History The Impact/Benefit criteria provide greater rewards to proposals that target lower income groups and provide longer benefits. The Need/Priority criteria help assure the proposal meets adopted City goals and priorities. The Feasibility criteria reward projects for timeliness and documented additional funding. The Leveraging Resources criteria reward proposals which will return funds to the City (loans) and for their ability to leverage other resources. And, the Capacity and History criteria help gage an applicant’s ability to do the project and reward applicants that have completed successful projects in the past (have good track records).See next page for a detailed criteria scoring sheet. Application Forms Two new application forms have also been developed. One form would be used for Housing proposals while to other form would be used for Non-Housing Proposals (public services, public facilities, etc.). City Council Adoption On January 18, 2000, the City Council approved Resolution 2000-13, formally adopting the Competitive Process for the allocation of City financial resources to affordable housing programs/projects and community development activities and the component parts discussed above. 2 3 RANKING CRITERIA The ranking criteria are divided into five major categories. Each category is given a total number of points that has been weighed according to its importance with respect to local and federal priorities. Impact/Benefit (maximum 30 points) 1. Primarily targets low income persons? (0-10) (all units 0-30% of AMI = 10 pts; at least half of the units at or below 30% of AMI and the remaining units at 31-50% of AMI = 8 pts; at least half of the units at 31-50% of AMI and at least half of the units at 51-60% of AMI = 6 pts; at least half of the units at 51-60% of AMI and half the units at 61-80% of AMI = 4 pts; all units between 61-80% AMI = 2 pts) 2. Project produces adequate community benefit related to cost? (0-5) 3. Does the project provide assistance for persons to gain self-sufficiency or maintain independence, or serve a special population? (0-5) 4. Does the project provide long-term benefit or affordability? (0-10) (1-10 yrs = 3 pts, 11-19 yrs = 6 pts, 20 - 30 yrs = 8 pts, permanent = 10 pts) Sub-total 0 Need/Priority (maximum 15 points) 1. Meets a Consolidated Plan priority? (0-5) 2. Project meets goals or objectives of City Plan and Priority Needs and Strategies study? (0-5) 3. Has the applicant documented efforts to secure other funding? (0-5) Sub-total 0 Feasibility (maximum 15 points) 1. The project will be completed within the required time period? (0-3) 2. Project budget is justified? (Costs are documented and reasonable.) (0-4) 3. The level of public subsidy is needed? (Private funds are not available.) (0-4) 4. Has the applicant documented efforts to secure other funding? (0-4) Sub-total 0 Leveraging Resources (maximum 20 points) 1. Does the project allow the reuse of our funding? (0-10) A. Principal and interest (30 - year amortization or less) 10 points B. Principal and no interest or principal and balloon payment (repayment) 6 points C. Due-on-sale loan 4 points 2. Project leverages other financial resources? (Including in-kind) (0-10) A. Less than 1:1 0 points B. 1:1 to 1:3 4 points C. 1:4 to 1:6 7 points D. More than 1:7 10 points Sub-total 0 Capacity and History (maximum 20 points) 1. Applicant has the capacity to undertake the proposed project? (0-10) 2. If previously funded, has the applicant completed prior projects and maintained regulatory compliance? (0-10) 3. If new, applicant has capacity to maintain regulatory compliance? (0-20) Sub-total 0 GRAND TOTAL 0 ATTACHMENT 3 TO: CDBG Commission Members FM: Fort Collins Affordable Housing Board SUBJECT: Spring 2011 Competitive Process The Affordable Housing Board met on March 25, 2011, to prepare a listing of priority affordable housing proposals that have submitted requests for funding through the spring cycle of the competitive process. The following is the Board’s priority listing: 1. HO-1, Merten, Inc. – Union Place 2. HO-2 Fort Collins Housing Corporation/Cornerstone – Legacy Senior Residences 3. HO-3, Fort Collins Housing Authority – Land Acquisition, Spring Creek Farms ODP The Board members were unanimous in ranking HO-3 their top priority and there was great distance between it and the second and third rankings. While HO-2 was ranked #2, there were a lot of concerns with the proposal and the same can be said of HO-1. Some Board members could not decide between HO-2 and HO-3, both were low priorities in the context of the competitive process. The following table presents the Board’s listing of priority projects, the applicant’s initial funding request, and the CDBG Commission’s funding recommendation. AHB’s Ranking of Priority Projects Project Applicant’s Initial Funding Request CDBG Commission’s Recommendation Unfunded Balance 1 HO-3, Merten, Inc. – Union Place $750,000 $750,000 $0 2 HO-2 Fort Collins Housing Corporation/Cornerstone – Legacy Senior Residences $430,000 $427,164 $2,836 3 HO-1, Fort Collins Housing Authority – Land Acquisition, Spring Creek Farms ODP $350,000 $0 $350,000 ATTACHMENT 4 BACKGROUND INFORMATION on the COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM CDBG PROGRAM NATIONAL OBJECTIVES The primary objective of the CDBG Program is the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low and moderate income. Programs and projects funded with CDBG funds must address at least one of the following three broad National Objectives: (1) provide a benefit to low or moderate income households or persons, (2) eliminate or prevent slum and blight conditions, or (3) meet urgent community development needs which pose an immediate and serious threat to the health and welfare of the community. Presented below is a comparison of City CDBG expenditures for programs and projects categorized according to the National Objectives. HUD regulations require at least 70% of CDBG funds be used for activities that primarily benefit low and moderate-income persons. National Objectives Low/Moderate Income Benefit Slum/Blight Elimination Urgent Need National Average 90% 10% 0% City Expenditures for: 2010 100% 0% 0% 2009 100% 0% 0% 2008 100% 0% 0% 2007 100% 0% 0% 2006 100% 0% 0% 2005 100% 0% 0% 2004 100% 0% 0% 2003 100% 0% 0% 2002 100% 0% 0% 2001 100% 0% 0% CDBG PROGRAM ELIGIBLE ACTIVITIES CDBG funds can be used on a wide range of activities including: (1) acquiring deteriorated and/or inappropriately developed real property (including property for the purpose of building new housing); 1 (2) acquiring, constructing, rehabilitating or installing publicly owned facilities and improvements; (3) restoration of historic sites; (4) beautification of urban land; (5) conservation of open spaces and preservation of natural resources and scenic areas; (6) housing rehabilitation can be funded if it benefits low and moderate income people; and (7) economic development activities are eligible expenditures if they stimulate private investment of community revitalization and expand economic opportunities for low and moderate income people and the handicapped. Certain activities are ineligible, under most circumstances, for CDBG funds including: (1) purchase of equipment, (2) operating and maintenance expenses including repair expenses and salaries, (3) general government expenses, (4) political and religious activities, and (5) new housing construction. 2 BACKGROUND INFORMATION on the HOME INVESTMENT PARTNERSHIP PROGRAM HOME INVESTMENT PARTNERSHIP PROGRAM GUIDELINES (Adopted by the Fort Collins City Council, July 18, 1995) PURPOSE: The purpose of the Home Investment Partnership (HOME) Program is to increase the supply of decent, safe, and affordable housing in the City of Fort Collins for an extended period of time. All of the HOME funds must benefit low and very low income households which are defined by the Department of Housing and Urban Development as having a total household income not exceeding 80% of the median household income for the Fort Collins area. ELIGIBLE PROJECTS: HOME funds must be used in the following ways: 1. DIRECT HOUSING ASSISTANCE: Down payment assistance: To help low-income individuals to purchase housing for their principal residence. Applicants must meet income guidelines of no more than 80% of the current median household income for the Fort Collins area and will be required to attend a homebuyer workshop. Assistance is in the form of zero percent deferred loan up to a maximum of $10,000 to help cover downpayment and closing cost expenses. The funding is repaid with a 5% simple interest charge when the property is sold or transferred out of the buyer’s name. Restrictions will apply which will assure the property remains affordable. This is accomplished by the “recapturing” of the HOME investment. Tenant based rental assistance: To help low-income households avoid eviction and homelessness, TBRA provides up to two years of housing subsidy and case management services to stabilize households and put them on the road to self-sufficiency. 2. NEW CONSTRUCTION of units for homeownership as well as rental occupancy targeted for low-income individuals and families which are developed, sponsored, or owned by community housing development organizations (CHDOs), non-profit agencies, and for-profit developers. 3. ACQUISITION of undeveloped, or developed, land resulting in the development or purchase of units for homeownership as well as rental occupancy. All regulations regarding income guidelines, purchase price limitations, resale limitations, rental rates, etc., will apply to acquisition projects. 3 4 ELIGIBLE PROPERTY TYPES: Eligible property types for purchase include both existing property or newly constructed homes. Eligible property includes a single-family property, a condominium unit, a manufactured home (including mobile homes on a permanent foundation), or a cooperative unit. For purposes of the HOME program, homeownership means: (1) ownership in fee simple title, or (2) a 99 year leasehold interest, or (3) ownership or membership in a cooperative, or (4) an equivalent form of ownership which has been approved by the Department of Housing and Urban Development. The value and purchase price of the HOME assisted property to be acquired must not exceed 95% of the area median purchase price for that type of housing as established by HUD. RECAPTURE RESTRICTIONS WILL APPLY. (The value must be verified by a qualified appraiser or current tax assessment.) Initial purchase price limit established by HUD is currently $212,015. HOME PROGRAM PRIORITIES The 2005-2009 Consolidated Plan identifies the following priorities for housing related needs: 1. Stimulate housing production for very low, low and moderate income households. 2. Increase home ownership opportunities for very low, low and moderate income households. 3. Increase the supply of public housing for families and those with special needs. Implementation and funding of activities to address these priorities will come, in part, from the City of Fort Collins HOME Investment Partnership Program. ATTACHMENT 5 2011 FUNDING RECOMMENDATIONS COMMUNITY DEVELOPMENT BLOCK GRANT Draft Minutes Meeting held Thursday, May 12, 2011 6:00 p.m. – 8:10 p.m. 218 North College Avenue Fort Collins, Colorado ___________________________________________________________________ CDBG Commission Members Present: Kay Rios, Chair Jeffrey Taylor, Vice-Chair Robert Browning Emily Sander Catherine Costlow Jamaal Curry Kristin Stephens Gordon Coombes Members Absent: Jennifer Wagner Staff Attending: Ken Waido Sharon Thomas Julie Smith Heidi Phelps Gail Neben Citizens/Guests Attending: Bill Stout: Women's Resource Center Jim Becker: Health District Annette Zacharias: Women's Resource Center Tracy Mead: ELTC Jerri Howe: Matthews House Kim Larsen: Catholic Charities Vicki Lutz: Crossroads Safehouse, Inc. Chadrick Martinez: Fort Collins Housing Authority Julie Brewen: Fort Collins Housing Authority 1 Call to Order: Meeting was called to order by Kay Rios, CDBG Commission Chair, at 6:00 PM. Citizen Comments: No comments Meeting Purpose and Ground Rules: The purpose of the meeting was for the CDBG Commission to formulate their funding recommendations to the City Council on the applications received by the City requesting financial assistance through the spring cycle of the competitive process. Rios: Requested Commission members to speak up, clearly and plainly. When a motion is made, state why you came to that specific determination. The second to the motion will also state their reasons, or say “ditto” if the reasons are the same. Application Deliberations: Public Service Category: PS-1: B.A.S.E. CAMP: SLIDING SCALE FEE TUITION & TRANSPORTATION ASSISTANCE Request: $57,000 Recommendation: $57,000 FY 2011 CDBG Grant Browning made a motion for PS-1 B.A.S.E. Camp for full funding at $57,000. Stephens seconded. Browning Reason: This program keeps people employed and they make sure kids are taken care of before and after school. It is a good program. Stephens ditto. Discussion: Curry: I agree and they have winter and spring break programs as well. There are 11 weeks of summer camp and this keeps kids safe and supplements their homework. It is a year round service. Rios: At their cost, it is one of the best deals you can find. Taylor: I like it. It is at 22 sites throughout the community. Vote unanimous. Motion passes. 2 PS-2 BOYS AND GIRLS CLUB: AFTER-SCHOOL AND SCHOOL-BREAK CHILD CARE AND YOUTH ACTIVITIES Request: $19,892 Recommendation: $18,644 2011 City Human Services Program Grant Costlow made a motion for PS-2 Boys and Girls Club for full funding at $19,892. Curry seconded. Costlow Reason: After school programs allow kids to be safe and learn, and it allows parents to work and have a good place for kids to go. Curry: I agree, and it provides low cost child care. It is only $5 a year. Discussion: Taylor: I would support reduced funding. Friendly amendment made for $18,644. Costlow seconded. Taylor Reason: This amount increases funding over prior years for inflation. Vote unanimous. Motion passes. PS-3 CARE HOUSING: SUPPORTIVE SERVICES Request: $25,000 Recommendation: $0 Taylor made a motion for PS-3 CARE: Program Support for no ($0) funding. Browning seconded. Taylor Reason: The service providers appear to be making arrangements so it is not necessary to add an additional layer of management. I thought the services were supposed to be provided anyway. They have failed to accomplish it. Discussion: Browning: We are short $260,000 for the requests received, so I am not supporting a new program. Vote unanimous. Motion passes. PS-4 COURT APPOINTED SPECIAL ADVOCATES (CASA) – PROJECT SUPPORT Request: $14,976 Recommendation: $ 9,360 2011 City Human Services Program Grant Rios made a motion for PS-4 CASA: Program Support for full funding at $14,976. Browning seconded. 3 Rios Reason: CASA services have grown 83% in the last 5 years. Browning: This gives an advocate for kids who are hurt and confused to get through the court system. Discussion: Coombes: I have experience as the parent of a foster child. I think there are other resources, and I don't see the most effectiveness out of CASA. I would support reduced funding. Vote 4 for and 4 opposed. Motion fails. Coombes made a motion for PS-4 CASA for funding to a reduced amount to support 1 full time employee at $9,360. Taylor seconded. Coombes Reason: I have no additional comments from the previous motion. Discussion: Taylor: This is a good program and they have good success. I believe my reasons stated previously are still valid. Vote unanimous. Motion passes. PS-5 CATHOLIC CHARITIES: SENIOR SERVICES Request: $12,000 Recommendation: $11,331 2011 City Human Services Program Grant Rios made a motion for PS-5 Catholic Charities: Senior Outreach for full funding at $12000. Motion fails for lack of a second. Rios made a motion PS-5 Catholic Charities: Senior Outreach Program at $10,000. Taylor second. Rios Reason: The amount of work is large for such a small amount of money we are looking at. The numbers are increasing due to the baby boomers age group. Last year we only gave $7000. This is not a duplicated service, and a small amount for what they do. Vote 5 for and 2 opposed. Motion passes. Rios made a motion PS-5 Senior Outreach to add $1,331 to the $10,000 raising it to $11,331. Stephens seconds. Rios Reason: For the numbers they deal with and the increases they will see, in terms of AMI, it 4 is a good place to put our money. Stephens ditto. Discussion: Curry: I have a question about the rental assistance. Do they help with that? Phelps: Not directly. Taylor: This funding is for the person in case management. Vote 7 for and 1 opposed. Motion passes. PS-6 CATHOLIC CHARITIES: THE MISSION SHELTER AND SUPPORTIVE SERVICES Request: $75,000 Recommendation: $40,000 FY 2011 CDBG Grant Costlow made a motion PS -6 Catholic Charities: The Mission Shelter and Supportive Service reduced to $60,000. Rios seconds. Costlow Reason: This is our main shelter for the homeless. It is a well run operation and it serves a community need. This amount is more than the funding from last year, but not near enough. Discussion: Stephens: How did you come to this number? Taylor: We funded $29,500 last year didn't we? Waido: They requested $55,000 last year. Taylor: I won't support it at that level because in the past we have supported less. It is a good organization, but it should not support higher than last year. Rios: I will vote against funding at that level. Curry: I would start at $30,000. Costlow: I would fund at $40,000. Rios: I would support the $40,000. Costlow: I amend the motion for PS- 6 Catholic Charities: The Mission Shelter and Supportive 5 Service reduced to $40,000. Rios seconded. Vote unanimous. Motion passes. PS-7 CENTER FOR FAMILTY OUTREACH: DIVERSION PROGRAM FOR YOUTH/PARENTS Request: $17,500 Recommendation: $0 Browning made a motion for PS-7 Center for Family Outreach: Diversion Program for Youth/Parents for no ($0) funding. Rios seconded. Browning Reason: This is a new program, but I have a bad feeling paying salaries in a new program. They are not established enough to pay salaries. This is about setting a precedent on paying salaries rather than a comment on the program. Rios ditto. Vote unanimous. Motion passes. PS-8 CHILDSAFE: CHILD ABUSE TREATMENT PROGRAM Request: $30,000 Recommendation: $0 Coombes made a motion for PS-8 ChildSafe Research & Treatment Foundation for full funding at $30,000. Motion fails for lack of a second. Browning made a motion for PS-8 ChildSafe Research & Treatment Foundation for $12,000. Coombes seconded. Browning Reason: I have a problem with full funding, but I want to see the money limited to kids in abuse situations. I am not convinced that we should spend money on adults. They sometimes have problems first, or they just blame it on childhood abuse. Coombes: I agree to give some funding. It is a valuable program. I would like to see more in that direction. They are caring for kids in childhood which helps reduce the drain on society later. It is very important to get at them at an early age. Discussion: Taylor: This program is great, but I don't support funding. This is a good organization and they are 25 years in service. In the application they state that all clients get treatment even if they can't pay. However, this is not a place for our funding. 6 Vote 4 for and 4 opposed. Motion fails. Taylor made a motion for PS-8 ChildSafe Research & Treatment Foundation: Child Abuse Program for no ($0) funding. Rios seconded. Taylor Reason: It is worthwhile for the community, but they should not get money from the City at this point. Rios ditto. Discussion: Browning: I think the argument that they would leave no patient untreated is commendable. But sometimes an organization collapses due to lack of funding. I won't support $0 funding. Vote 4 for and 4 opposed. Motion fails. Taylor made a motion PS-8 for ChildSafe Research & Treatment Foundation for no ($0) funding. Rios seconds. Taylor Reason: My position has not changed. This is a duplicated service. Rios ditto. Vote 5 for and 3 opposed. Motion passes. PS-9 CROSSROADS SAFEHOUSE: ADVOCACY PROGRAM Request: $99,216 Recommendation: $42,202 Component parts of the funding: $16,469 2011 City Human Services Program Grant $25,733 2011 City Human Services Program KFCG Funds Grant Browning made a motion for PS-9 Crossroads Safehouse: Advocacy Program for no ($0) funding. Rios seconded. Browning Reason: I supported this last year. But we are low on money this year. It appears the application is for extras. It is a shelter and the salary is for a youth coordinator as a priority. Rios ditto. Discussion: Stephens: I disagree. I don't want to not support them at all when they serve a large number of people, and I think it is necessary. Many children are being supported. I would support a smaller funding. 7 Curry: Would you support $51,042? Stephens: I would support to stay in that range and to support some priorities. At least the 1-1A and 1B for youth advocates. This adds up to $30,114. Stephens: I make a friendly amendment for $30,114. Rios seconds. Vote unanimous. Motion passes. Stephens made a motion to add $12,088 to PS-9 Crossroads Safehouse raising it to $42,202. Taylor seconded. Stephens Reason: This is closer to what we gave them in the last few years, and this is a way to help them out for one more salary. Discussion: Taylor: I think we should not look at the percentage, but look at the bottom line. This is not a duplicated service. Staffing is such that they know their priorities and they know what people they need. Vote 7 for and 1 opposed. Motion passes. PS-10 DISABLED RESOURCE SERVICES: ACCESS TO INDEPENDENCE Request: $28,442 Recommendation: $28,442 2011 City Human Services Program Grant Browning made a motion for PS-10 Disabled Resource Services: Access to Independence for full funding at $28,442. Rios seconded. Browning Reason: This is a good program and it provides a service to people not normally served. This is a growing part of the population. The client base will go up. Rios: They do have a closet of things that they rent that would cost the client a lot. This service is not duplicated. Vote 5 for and 3 opposed. Motion passes. PS-11 ELTC: EMPLOYMENT SKILLS TRAINING Request: $22,009 Recommendation: $19,483 FY 2011 CDBG Grant Rios made a motion for PS-11 Education Life Training Center (ELTC): Employment Skills 8 Training for $22,009. Costlow second. Rios Reason: I think what they are offering is not duplicated, and they already have it in place. They have a good track record and a strong organization. Costlow ditto. They also provide training for people to get more skills when their career has been disrupted or discontinued. Discussion: Browning: I do not support full funding. I have not been convinced the funding pays back as living wage jobs. It is a feel good thing. Curry: I would accept an amendment. Rios: I won't accept an amendment. I disagree that it is a feel good service. The skills training fills a gap in having those skills which are basic. We should give people options to change their career path if it has been disrupted or discontinued. Taylor: I would support a reduced amount. It eliminates a transitional person. In the past it has not been funded. They do not need a transitional person. I suggest $19,483. This supports the GED program and the ESL program. Curry: That is more than last year. Taylor: I will make a friendly amendment for $19,483. Costlow seconds. Vote 6 for and 2 opposed. Motion passes. PS-12 ELDERHAUS: MINDSET THERAPY CENTER ACTIVITY PROGRAM Request: $23,592 Recommendation: $23,592 FY 2011 CDBG Grant Browning made a motion for PS-12 Elderhaus: Mindset Therapy Center Activity Program for full funding at $23,592. Costlow seconded. Browning Reason: This is another way to keep people employed when family members need extra care. It has a good record over the years. Costlow ditto. The biggest benefit is to give caregivers time off. Discussion: Curry: Without them 70% of the people would be in care homes. 9 Vote unanimous. Motion passes. PS-13: FAMILY CENTER: SLIDING SCALE FEE TUITION ASSISTANCE Request: $30,000 Recommendation: $30,000 2011 City Human Services Program Grant Browning made a motion for PS-13 Family Center: Sliding Fee Tuition Scholarship Program for full funding at $30,000. Rios seconded. Browning Reason: Ditto my comments before. It will keep people working. Sander: There are low-income families in the northern part of town. This is another program with infant care. Curry: They made some changes in CCAP as well. Vote unanimous. Motion passes. PS-14 FOOD BANK FOR LARIMER COUNTY: KIDS CAFE PROGRAM Request: $21,000 Recommendation: $21,000 2011 City Human Services Program Grant Taylor made a motion for PS-14 Food Bank for Larimer County: Kids Cafe Program for full funding at $21,000. Browning seconded. Taylor Reason: Good pay back for the buck, federal funds and other sources will cover most of the funding. Browning: Same reasons as stated previously. This helps accomplish that. Vote unanimous. Motion passed. PS-15 HOMELESSNESS PREVENTION INITIATIVE: EMERGENCY RENT ASSISTANCE Request: $45,000 Recommendation: $45,000 2011 City Human Services Program KFCG Grant Taylor made a motion for PS-15 Homelessness Prevention Initiative Emergency Rent Assistance for full funding at $45,000. Motion failed for lack a second. Costlow makes a motion PS-15 Homelessness Prevention Initiative: Emergency Rent Assistance at $40,000. Motion fails for lack of a second. 10 Taylor makes a motion for PS-15 HPI for full funding at $45,000. Curry seconded. Taylor Reason: This service is not duplicated. They help the stability for housing. They leverage volunteers at different sites within the city. City funding represents 20% and the rest comes from elsewhere. Curry: I am open to a reduction of the full funding. I would go to $40,000. This would be consistent with last year. Taylor: I won't accept a friendly amendment. This serves a lot of people and it is a good thing. Vote 5 for and 3 opposed. Motion passes. PS-16 LARIMER CENTER FOR MENTAL HEALTH: COMMUNITY DUAL DISORDERS TREATMENT (CDDT) Request: $27,082 Recommendation: $14,000 2011 City Human Services Program Grant Costlow made a motion for PS-16 Larimer Center for Mental Health: Community Dual Disorder Treatment for $14,000. Taylor seconds. Costlow Reason: This is a good program that ties into community goals. They are a collaborator with other organizations. And, they work with a chronic group of homeless or for those who need help that don't have any other resources. Taylor: They have stressed stabilized housing for them. That is what the City is looking at. And, part of the funds were for Affordable Housing and keeping people in homes. It is good for us to support this as a community. The need has increased with the economy. I would not support it ongoing, but it is valuable right now. As of March 31 of this year there was a 68% reduction which is impressive. Vote unanimous. Motion passes. PS-17 LARIMER CENTER FOR MENTAL HEALTH: EMPLOYMENT ASSISTANCE AT THE MURPHY CENTER Request: $16,012 Recommendation: $0 Costlow made a motion for PS-17 Larimer Center for Mental Health: Employee Assistance- Murphy Center for no ($0) funding. Sander seconded. Costlow Reason: The only reason is that this service is duplicated with ELTC and the Resource Center. 11 Sander ditto. They could partner with Larimer Learning Center and they can't serve very low income levels. Vote 7 for and 1 opposed. Motion passes. PS-18 MATTHEWS HOUSE: TRANSITION PROGRAM Request: $27,639 Recommendation: $27,639 2011 City Human Services Program Grant Sander made a motion for PS-18 Matthews House Transition Program for full funding at $27,639. Coombes seconded. Sander Reason: This is an underserved population and it is serving people and keeping them from bad situations. That age group is not served by anyone else. Coombes: This helps kids transitioning into productive members of society. It gives them tools to be on their own and sustain themselves. Discussion: Taylor: They have a 94% success rate. They do good leverage with volunteers and multiply the good effect. Rios: 50% of the clients are from foster care. Taylor: This is a group that can get into a lot of trouble. Vote 7 for and one abstention. Motion passes. PS-19 NEIGHBOR TO NEIGHBOR: HOUSING COUNSELING Request: $69,205 Recommendation: $40,175 Component parts of the funding: $10,175 2011 City Human Services Program Grant $30,000 2011 City Human Services Program KFCG Grant Taylor made a motion for PS-19 Neighbor to Neighbor: Housing Counseling for $40,175. Curry seconded. Taylor Reason: Provides funding for their number one priority of a housing counselor. It arranges assistance for home ownership programs. Their other requests for state and federal funds are for homes in foreclosure. I would like to keep funding where it has been in the past. 12 Discussion: Browning: I have a question. Where did the $40,175 come from when $40,160 would represent one counselor? Taylor: I was rounding it up. Vote 7 for and 1 opposed. Motion passes. PS-20 NEIGHBOR TO NEIGHBOR: EMERGENCY RENT ASSISTANCE Request: $25,000 Recommendation: $25,000 2011 City Human Services Program KFCG Grant Taylor made a motion for PS-20 Neighbor to Neighbor Rent Assistance for full funding at $25,000. Costlow seconded. Taylor Reason: They help people with incomes at 80% below median, 150 were 0-30% AMI and it provides security in housing. Costlow ditto. Vote unanimous. Motion passes. PS-21 NORTHERN COLORADO AIDS PROJECT: CLIENT SERVICES Request: $29,500 Recommendation: $24,500 2011 City Human Services Program Browning made a motion for PS-21 Northern Colorado Aids Project: Client Services for full funding at $29,500. Motion fails for lack of a second. Rios made a motion for PS-21 Northern Colorado Aids Project: Client Services at $24,500 Curry seconded. Rios Reason: They are dealing with a population who needs the service, and we funded them last year. I would like to see it be consistent. Curry ditto. Vote unanimous. Motion passes. PS-22 PROJECT SELF-SUFFICIENCY: SERVICES FOR SINGLE-PARENT FAMILIES Request: $33,000 Recommendation: $22,000 2011 City Human Services Program KFCG Grant Rios made a motion for PS-22 Project Self-Sufficiency for full funding at $33,000. 13 Taylor seconded. Rios Reason: This offers opportunities that are not offered anywhere else. This is a make or break situation for people. Discussion: Coombes: This helps single parents work and gives a single parent resources. Costlow: I will not support it at the full amount. I looked at the whole budget and this is to fund two full time positions. I would accept $22,000. Rios: I make a friendly amendment to fund $22,000, Coombes: I support the amendment. Vote 7 for and 1 opposed. Motion passes. PS-23 REHABILITATION AND VISITING NURSE ASSOCIATION: HOME HEALTH CARE SCHOLARSHIPS Request: $35,000 Recommendation: $35,000 Component parts of the funding: $ 9,049 FY 2011 CDBG Grant $25,951 2011 City Human Services Program Rios made a motion for PS-23 RVNA: Home Health Care Scholarships for full funding at $35,000. Browning seconded. Rios Reason: I am in favor of home health care scholarships to get the kind of help to keep someone at home with a higher level of care. Browning ditto. Vote unanimous. Motion passes. PS-24 RESPITE CARE: SLIDING SCALE FEE TUITION ASSISTANCE Request: $30,000 Recommendation: $30,000 2011 City Human Services Program Grant Browning made a motion for PS-24 Respite Care: Sliding Scale Fee Tuition Assistance for full funding at $30,000. Stephens seconded. Browning Reason: My reason is the same reason as before. It will keep them working and take care of mostly kids. 14 Stephens: They care for kids that are harder to find daycare for. They are special needs kids. Discussion: Curry: They don't receive state or federal funding and they are the only 24-hour respite care in Larimer County. Sander: They have seen a 24% increase since last year due to both parents working. Taylor: Part of this is that general question of thinking where we are going with the funding. We have benefit of funds being available. We have it this time we might not going forward. We need to be cautious about funding and be aware of this. Out of all of the counties in the state there are only two programs, this one and Denver metro. We are funding something unique to our community. But, I won't be voting for full funding. Vote 5 for and 2 opposed. Motion passes. PS-25 SUICIDE RESOURCE CENTER: R.A.P.P. PROGRAM AND HOPE FOR TODAY PROGRAM Request: $3,000 Recommendation: $3,000 2011 City Human Services Program KFRC Grant Browning made a motion for PS-25 Suicide Resource Center: R.A.P.P. & Hope for Today Programs for $3,000. Coombes seconded. Browning Reason: I work with them and they provide a good service and the publications help reduce the business, and it goes into the schools. Discussion: Curry: It is a good program and it is not a lot of money. It is a good program in Larimer County. Vote unanimous. Motion passes. PS-26 TEACHING TREE: SLIDING SCALE FEE TUITION ASSISTANCE Request: $60,000 Recommendation: $60,000 2011 City Human Services Program Grant Browning made a motion for PS-26 Teaching Tree Sliding Scale Fee Tuition Assistance for full funding at $60,000. Stephens seconded. Browning Reason: Again, this will keep people employed and keep kids safe. Stephens ditto. 15 Discussion: Stephens: They do good quality infant care also. They are serving a need not duplicated in the City. Taylor: They do have about 40% of the parents paying full fees. Vote Unanimous. Motion passes. PS-27 VOLUNTEERS OF AMERICA: HOME DELIVERED MEAL PROGRAM Request: $29,200 Recommendation: $29,200 2011 City Human Services Program Grant Browning made a motion for PS-27 Volunteers of America: Home Delivered Meal Program for full funding at $29,200. Costlow second. Browning Reason: This keeps people in housing and it is a good alternative to a nursing home, and it keeps people in food who would not normally eat. Costlow ditto. Discussion: Taylor: It is also another well-check for people that they wouldn't have gotten otherwise. Curry: 91% could not get meals without this program. Vote unanimous. Motion passes. PS-28 WOMEN’S RESOURCE CENTER: DENTAL CONNECTIONS Request: $44,890 Recommendation: $32,890 2011 City Human Services Program Grant Browning made a motion for PS-28 Women's Resource Center for full funding at $44,890. Rios seconded. Browning Reason: I think it is a good program and it hits a segment not normally served. They get a good bang for the buck. Rios ditto. Discussion: Curry: This wasn't funded last year, but it is not new. Taylor: Funding was under the Dental Assistance Program and they re-packaged it for broader 16 support. They are doing a larger networking piece with volunteer efforts. Phelps: For clarification last year was solely dental. This year is for a larger community dental collaborative. The amount of $12,000 of funding is for reimbursements and the balance would be to people administrating the program. Curry: I would support $12,000 for each. Taylor: I would not vote for full funding. I would fund all but dental provider reimbursements. This is something they are already doing as in-kind funding. Costlow: I would support if it is rounded to $33,000, otherwise $32,890. Stephens: I would support that, too. Browning: I want the vote for full funding. Vote 1 for and 7 opposed. Motion fails. Taylor made a motion for PS-28 for funding at $36,890 for seed money, but not the full amount of $44,890. Rios seconded. Taylor Reason: This is a great program and they are starting to leverage it as something new. It is better described as a product for men and women. I want to give seed money to help them accomplish this and not rely on staff people. Vote 3 for and 5 opposed. Motion fails. Stephens makes a motion for PS-28 Dental Connections for $32,890. Taylor seconded. Stephens Reason: This motion seems cleaner. Taylor ditto. Discussion: Browning: We should specify which part we don't want to fund. That it is conditional in the contract. Stephens: We do not want to fund the dental provider reimbursements for $12,000. Taylor: I would accept this clarification. Vote unanimous. Motion passes. 17 FINAL APPROVAL OF PUBLIC SERVICE PROPOSALS Rios: Are all of you comfortable with where we are? Have we missed anything or need to discuss anything? No comments. Rios: If we are all in agreement we need a motion to approve the decisions. Curry: I make a motion to approve the Public Service allocations as previously discussed. Browning seconded. Vote unanimous. Motion passes. Browning: I request that PS-6, -9, -15, -19 and -20 go on the list in special categories with Council because they are housing projects. Phelps: Also, we are getting feedback from the Council that the KFCG money is being watched closely. This is because of the rate of expenditure. Waido: The funds from KFCG are of special interest to the Council. They are requesting monthly reports. At the end of the year it will all lapse and the money left over will be re- appropriated by the Council. The only difference between KFCG and other funds is that the Council will scrutinize the KFCG money more. Rios: We want to keep track of the housing related projects. Waido: That is the $100,000 from KFCG that had the Affordable Housing/Human Services line item tag. The Affordable Housing Board was satisfied that they are by HUD definitions public service programs, but are actually housing programs. Affordable Housing Category: HO-3 MERTEN – UNION PLACE Request: $750,000 due on sale loan/ 5% simple interest on principal Recommendation: $750,000 Component parts of the funding: $600,256 FY 2011 CDBG Entitlement Grant 40,180 FY 2011 Program Income 5,775 Prior Years CDBG Program Income 103,789 Unprogrammed FY 10 CDBG Curry made a motion for HO-3 for full funding at $750,000. Browning seconded. Curry Reason: Some of the pros are: this is a good site for seniors near mass transit and a grocery store. 18 Browning ditto. Taylor: For clarification they are committing to 20 years of affordability. Their presentation said this is negotiable. Waido: At the time of their interview they had a pending tax credit application. They did not receive a tax credit allocation. If they had, they would have had a 30-year affordability restriction. If the Commission wants to, recommended funding can be contingent on a different affordability period, staff would negotiate that. Taylor: We will be running out of opportunities. I would like to see a longer time period. Same thing on this one. Would support with that condition. Phelps: It is hard for us to get into an ideological discussion. This is a huge issue. It sounds great, but after year 2015 we get into the liability of the project and upkeep complications. 20 years is standard for homes and the City. Some question that 20 years is too long. This is something that needs a more thorough conversation on the pros and cons before we make a statement. Costlow: Once it expires can we do it again? Waido: Donna Merten can go back for tax credits. We would need some leverage to extend it. The Affordable Housing Strategic Plan has a work plan item to look at extending the City’s 20- year minimum to 40 years. There has been some discussion with some developers. One thought the minimum should go to permanent affordability. Taylor: Is this part of the recommendation or would it not make sense to include it? Costlow: Where is 48% of the project funding coming from? Waido: They are in negotiations for equity contributions from a company in Illinois. I have not heard if they have officially jumped on board. I just found out about the tax credits last week. We won't contract until it is ready to go. Rios: We have a motion to fund HO-3 at the requested amount of $750,000. Vote unanimous. Motion passes. 19 HO-2 FORT COLLINS HOUSING CORPORATION & CORNERSTONE – LEGACY SENIOR RESIDENCES Request: $430,000 due on sale loan/ 5% simple interest on principal Recommendation: $427,164 Component parts of the funding: $ 87,549 Unprogrammed FY 10 CDBG 211,906 Unprogrammed FY 10 HOME 102,381 Unprogrammed FY 10 HOME CHDO 25,328 Unprogrammed FY 04 HOME CHDO Browning made a motion HO-2 Fort Collins Housing Corp: Legacy Senior Housing at the full amount of $430,000. Curry seconded. Browning Reason: This is a good project even though they have some problems coming up, and I would like to encourage them to go forward. Curry: There is a good number of units below 30% of AMI. Taylor: We are the first in. Rios: I am bothered that it is the same application as previous and we are not getting answers to the questions. $290,000 in 2010 was listed as not being funded. Vote 5 for and 3 opposed. Motion passes. Waido: The Commission has over spent the available funds for housing. Phelps: As a note $25,328 must be spent by September 26, 2011. Two housing projects are eligible for this. Rios: Let’s deal with HO-1 and come back to reduce funding amounts Phelps: We are waiting on the environmental piece. We can't do a contract until the environmental is completed. We could do a separate mini-contract on the CHDO money. If we could make it happen by September. 28, 2011 great, if not, the City will lose the money. Taylor: This is not part of the motion. Thomas: You are $2,836 over now. Rios moves to take money out of HO-2. Curry seconded. Rios Reason: Reason is the same as stated before. 20 Curry: HO-2 is too close to the railroad tracks. Rios: I move to take $2,836 from Legacy Senior Housing which makes it $427,164. Vote unanimous. Motion passes. HO-1 FORT COLLINS HOUSING AUTHORITY – LAND ACQUISITION Request: $350,000 due on sale loan/5% simple interest on principal Recommendation: $0 Rios made a motion for HO-1 for no ($0) funding. Coombes seconded. Rios Reason: This is a questionable location and the land cost amount seems to be high. Coombes ditto. Vote unanimous. Motion passes FINAL APPROVAL OF AFFORDABLE HOUSING PROPOSALS Rios: Is there any discussion on the funding recommendations? Taylor: I move to accept the recommendations. Stephens seconds. Vote unanimous. Motion passes. CDBG and HOME Administration Budgets: Waido: At the time staff submitted the applications we did not know the grant amounts. The CDBG administration request is for 20% of grant and Program Income at $198,832. HOME administration is 10% at $65,911. We need two separate motions. Curry: What is the $198,832 for? Waido: CDBG Program administrative costs, salaries and operating expenses. Costlow: And the $65,911? Waido: HOME Program administrative costs, salaries and operating expenses. Taylor: What do you want a motion on? Waido: Approval of Administration funding at $65,911 for the HOME Program and $198,832 for CDBG. 21 22 Taylor: Moved for approval of the proposed administrative budgets. Stephens seconded. Vote unanimous. Motion passes. Other No other items. Adjournment: The meeting was adjourned by Rios at 8:10 PM. ATTACHMENT 6 Focus Questions for CDBG Commission Decision Making Public Service Category “The Big Framework” • One of the three main national objectives for CDBG funds is “benefit to low and moderate income persons or households.” • Historically, the City’s Human Service Program funds have been used for various services benefiting primarily low and moderate income persons in Fort Collins. Questions: 1) Is it serving the lower end income levels? 2) How many is it serving? 3) Is there a majority of Fort Collins area residents being served? 4) Is it a good cost/unit (understanding that the cost of case management is more than the cost of a hot meal)? 5) Who else needs to be stepping up to the plate in terms of funding or service (volunteers)? 6) Maslow’s Hierarchy: Is it a more “feel-good service”, or is it critical in terms of: a) Food, shelter or other basic needs b) Health and safety issues c) Serving a special population, or d) Self-sufficiency or major empowerment (teaching to fish vs. giving a fish)? 7) Is there anyone else in the community who can or is serving this need (i.e., trying to avoid duplication of service)? 8) Is City money being used as “gap financing”, match money, or seed money? 9) Is this a program/project where City $ is really making a difference for, i.e., -- it’s nobody else’s “baby” or there’s been a critical cut in funding? 10) Has project/program been aggressively seeking other funding sources? ATTACHMENT 7 City of Fort Collins Community Development Block Grant (CDBG) Commission Formulation of Funding Recommendations Session The CDBG Commission has prepared this hand-out to help you to understand how the Commission’s meeting for the purpose of formulating funding recommendations to the City Council is conducted. It is the Commission’s wish that our methodology be understandable to even the most casual observers. As you might imagine, the entire process is complex and time- consuming, especially given that grant requests greatly exceed the amount of available funding. City Staff will prepare an electronic matrix showing each application, the funding requested, and the total funds available. The Commission will discuss the pros and cons of every application. The order which applications are discussed is not important and there is no danger of ‘running out’ of funds before all applications are fully discussed. There will be preliminary funding motions made, seconded, and approved throughout the process and these recommendations will be added into the matrix. It must be emphasized that the matrix is a working document, and any figures used, whether they be for full, partial, or zero funding, are for discussion purposes only. It is also possible that the total funds listed in the matrix might exceed the total of funds available at this point of the process. After each application has been discussed, the Commission will start to adjust the matrix to start producing its recommendation for funding to Council. Funding contained on the matrix may be drastically changed in either a positive or negative manner during this part of the process. When the Commission agrees on the matrix as indicated by a motion to accept it, a second to the motion, and a positive majority vote, the process is over and the recommendation will be forwarded to the Council. While the Commission’s main purpose is to provide Council with the best funding alternative, the Commission is also sensitive that the funds being recommended for expenditure are taxpayer- provided. For this reason, it is entirely possible that not all funds will be recommended for expenditure, even if there are some applicants recommended for zero, or reduced, funding. The last point to be made is while this meeting is open to the public, to be fair to applicants who are not present at the meeting, no public comments will be taken. 1 1 2011 SPRING CYCLE of the COMPETITIVE PROCESS Allocating City Financial Resources to Affordable Housing Projects and Public/Human Service Programs 2 THE ALLOCATION PROCESS • Staff – Train applicants for the on-line application submittal (ZoomGrants) – Provide 1-on-1 technical assistance to every applicant (mandatory meeting) • Affordable Housing Board – Review written affordable housing proposals – Provide priority ranking and comments on AH proposals to CDBG Commission ATTACHMENT 10 2 3 THE ALLOCATION PROCESS • CDBG Commission – Review written proposals – Interview each applicant – Provide dollar amount funding recommendations to the City Council • City Council – Conduct a Public Hearing – Make final decision on funding allocations 4 AVAILABLE FUNDING $339,615 HOME Program $2,065,454 Total $150,733 Human Services KFCG Funds $389,601 Human Services Program $1,185,505 CDBG Program AMOUNT SOURCE 3 5 FUNDING FOR CATEGORIES AMOUNT CATEGORY $1,177,164 Affordable Housing $689,458 Public/Human Services $198,832 Program Administration 6 REQUESTED - AVAILABLE Totals $2,678,987 $2,065,454 - $613,533 Program $198,832 $198,832 $0 Admin Public/Human $950,155 $689,458 - $260,697 Services Affordable $1,500,000 $1,177,164 - $352,836 Housing AVAILABLE DIFFERENCE FUNDING REQUESTED FUNDING CATEGORY 4 7 FUNDING RECOMMENDATIONS • Affordable Housing – 1 proposal at 100% of its request – 1 proposal at 99% of its request – 1 proposal for no ($0) funding • Public/Human Service – 13 of 28 at 100% of their requests – 11 of 28 at 43% - 94% of their requests – 4 of 28 for no ($0) funding 8 FUNDING RECOMMENDATIONS $2,065,454 100.0% Totals Program Administration $198,832 9.6% Public/Human Services $689,458 33.4% $1,177,164 57.0% Affordable Housing PERCENT CATEGORY OF TOTAL RECOMMENDED FUNDING 5 9 HOME BUYER ASSISTANCE • Previous Assistance – 50% from HOME Program – 50% from CDBG Program (CDBG limit 50%) • Use of Affordable Housing Funds – Former Rental Properties • Request for Policy Change ($60,000) – 50% from CDBG Program – 50% from the Affordable Housing Fund RESOLUTION 2011-063 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE PROGRAMS AND PROJECTS THAT WILL RECEIVE FUNDS FROM THE FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIPS PROGRAM AND THE CITY’S HUMAN SERVICES PROGRAM WHEREAS, the Community Development Block Grant (CDBG) Program and the Home Investment Partnerships (HOME) Program are ongoing grant administration programs funded by the Department of Housing and Urban Development (HUD); and WHEREAS, the City has received CDBG Program funds since 1975 and HOME Program funds since 1994; and WHEREAS, the City Council has budgeted General Fund dollars in the Human Services Program and the Affordable Housing Fund for use in assisting affordable housing programs and projects and community development activities; and WHEREAS, on January 18, 2000, the City Council approved Resolution 2000-13, formally adopting a competitive process for the allocation of City financial resources to affordable housing programs and projects and community development activities; and WHEREAS, since January 2011, the CDBG Commission has held a public hearing to obtain citizen input on community development and affordable housing needs, and has heard presentations and asked clarification questions from each applicant that submitted a proposal to the City requesting funding; and WHEREAS, on May 12, 2011, the CDBG Commission held a special meeting for the purpose of preparing a recommendation to the City Council as to which programs and projects should be funded with the FY 2011 CDBG Entitlement Grant and CDBG Program Income, Prior Year’s CDBG Program Income, the use of Unprogrammed FY 2010 CDBG funds, Unprogrammed FY 2010 HOME funds, Unprogrammed FY 2010 HOME CHDO funds, Unprogrammed FY 2004 HOME funds, and the utilization of funds from the City’s 2011 Human Services Program; and WHEREAS, the City Council has considered the recommendation of the CDBG Commission and has determined that the City’s 2011 allocation should be made as set out in this Resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that City staff is hereby authorized to submit an application to HUD as follows: PLANNING AND ADMINISTRATION FY 11 CDBG Entitlement Grant and CDBG Program Income $198,832 City of Fort Collins: CDBG Administration AFFORDABLE HOUSING FY 11 CDBG Entitlement and CDBG Program Income $646,211 Merten Homes – Union Place FY 10 CDBG Unprogrammed Funds $103,789 Merten Homes – Union Place 87,549 FCHC – Legacy Senior Residences FY 10 HOME Unprogrammed Funds $211,906 FCHC – Legacy Senior Residences FY 10 HOME Unprogrammed CHDO Funds $102,381 FCHC – Legacy Senior Residences FY 04 HOME Unprogrammed CHDO Funds $25,328 FCHC – Legacy Senior Residences PUBLIC SERVICES FY 11 CDBG Entitlement Grant and CDBG Program Income $57,000 BASE Camp: Sliding Scale Fee Tuition Assistance 40,000 CC: The Mission Shelter & Supportive Services 23,592 Elderhaus: Mindset Therapy Center Activity Program 19,480 ELTC: Employment Skills Training 9,049 RVNA: Home Health Care Scholarships 2011 Human Services Program $18,644 Boys & Girls Club After School Program 9,360 CASA – Program Support 11,331 CC: Senior Outreach 16,469 Crossroads Safehouse: Advocacy Program 28,442 DRS: Access to Independence (ATI) Program 30,000 Family Center: Sliding Scale Fee Tuition Assistance 21,000 Food Bank for Larimer County: Kids Café 14,000 Larimer Center for Mental Health – Dual Disorders Treatment 27,639 Matthews House – Transition Program 24,500 NCAP: Client Services & Homelessness Prevention Program 10,175 Neighbor-to-Neighbor: Housing Counseling 25,951 RVNA: Home Health Care Scholarships 30,000 Respite Care: Sliding Scale Fee Tuition Assistance 60,000 Teaching Tree: Sliding Scale Fee Tuition Assistance 29,200 VOA: Home Delivered Meal Program 32,890 WRC: Dental Care Assistance Program -2- 2011 Human Services Program KFCG Funds $25,733 Crossroads Safehouse: Advocacy Program 45,000 Homelessness Prevention Initiative: Emergency Rent Assistance 30,000 Neighbor-to-Neighbor: Housing Counseling 25,000 Neighbor-to-Neighbor: Emergency Rent Assistance 22,000 Project Self-Sufficiency: Services for Single Parents 3,000 Suicide Resource Center: R.A.P.P. & Hope for Today Programs Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk -3- RESOLUTION 2011-064 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE FISCAL YEAR 2011 ADMINISTRATION AND PROJECT BUDGETS FOR THE HOME INVESTMENT PARTNERSHIPS PROGRAM WHEREAS, the purpose of the Home Investment Partnerships (HOME) Program is to increase the supply of decent, safe, and affordable housing in the City of Fort Collins for an extended period of time; and WHEREAS, the City’s Consolidated Plan identifies the following priorities for housing related needs: (1) stimulating housing production for very low, low and moderate income households, (2) increasing home ownership opportunities for very low, low and moderate income households, and (3) increasing the supply of public housing for families and those with special needs; and WHEREAS, specific projects for the use of HOME funds will be determined by the City Council in November following the fall funding cycle of the competitive process for the allocation of the City’s financial resources to affordable housing programs and projects and community development activities. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that City staff is hereby authorized to submit the FY 2011 Home Investment Partnerships Program application as follows: HOME Grant Category $488,547 Affordable Housing Projects 89,888 Community Housing Development Organization Set-Aside 65,917 Program Administration $644,352 Total Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk ORDINANCE NO. 096, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE AND AUTHORIZING THE TRANSFER OF APPROPRIATIONS BETWEEN PROGRAM YEARS IN THE COMMUNITY DEVELOPMENT BLOCK GRANT FUND WHEREAS, the City will receive in federal fiscal year 2011-2012 unanticipated revenue in the form of federal Community Development Block Grant (“CDBG”) funds totaling $923,469; and WHEREAS, the City will also receive unanticipated CDBG Program income in the 2011- 2012 federal fiscal year in the amount of $61,815 and has received unanticipated CDBG Program income in the 2010-2011 federal fiscal year in the amount of $8,883; and WHEREAS, unexpended funds are also available from the CDBG Program from prior fiscal years in the amount of $191,338; and WHEREAS, by adoption of Resolution 2011-063 the City Council approved the 2011 Community Development Block Grant Program; and WHEREAS, by adoption of Resolution 2011-064 the City Council authorized the City Manager to transmit for approval the 2011 Fort Collins Consolidated Annual Action Plan to HUD as required to receive the grant funds; and WHEREAS, Article V, Section 9, of the City Charter permits City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpected and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the funds were initially appropriated no longer exists; and WHEREAS, Article V, Section 11, of the City Charter provides that federal grant appropriations shall not lapse if unexpended at the end of the budget year until the expiration of the federal grant; and WHEREAS, City staff has determined that the appropriation of all unanticipated CDBG grant and program revenue as described herein will not result in total appropriations in excess of the current estimate of actual and anticipated revenues for fiscal year 2011. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from unanticipated revenue in the federal fiscal year 2011-2012 into the Community Development Block Grant Fund, the sum of NINE HUNDRED TWENTY-THREE THOUSAND FOUR HUNDRED SIXTY-NINE DOLLARS ($923,469), upon receipt thereof for federal fiscal year 2011-2012 Community Development Block Grant Funds. Section 2. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof into the Community Development Block Grant Fund, the sum of SEVENTY THOUSAND SIX HUNDRED NINETY-EIGHT DOLLARS ($70,698), for approved Community Development Block Grant projects. Section 3. That the unexpended and unencumbered amount of ONE HUNDRED NINETY-ONE THOUSAND THREE HUNDRED THIRTY-EIGHT DOLLARS ($191,338) is hereby authorized for transfer from the 2010-2011 Community Development Block Grant Program to the 2011-2012 Community Development Block Grant Program and appropriated therein. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk ORDINANCE NO. 097, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED REVENUE AND AUTHORIZING THE TRANSFER OF APPROPRIATIONS BETWEEN PROGRAM YEARS IN THE HOME INVESTMENT PARTNERSHIPS FUND WHEREAS, the Home Investment Partnership Program (the “HOME Program”) was authorized by the National Affordable Housing Act of 1990 to provide funds in the form of Participating Jurisdiction Grants for a variety of housing-related activities which would increase the supply of decent, safe, and affordable housing; and WHEREAS, on March 1, 1994, the City Council adopted Resolution 1994-092 authorizing the Mayor to submit to the Department of Housing and Urban Development (“HUD”) a notification of intent to participate in the HOME Program; and WHEREAS, on May 26, 1994, HUD designated the City as a Participating Jurisdiction in the HOME Program, allowing the City to receive an allocation of HOME Program funds as long as Congress re-authorizes and continues to fund the program; and WHEREAS, the City has been notified by HUD that the City’s HOME Participating Jurisdiction Grant for the federal fiscal year 2011-2012 is $599,259; and WHEREAS, the City will also receive unanticipated HOME Program income in the 2011- 2012 federal fiscal year in the amount of $45,093; 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, do not exceed the then current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, Article V, Section 10, of the Charter authorizes the City Council to transfer by ordinance any unexpected and unencumbered amount or portion thereof from one fund or capital project to another fund or capital project, provided that the purpose for which the funds were initially appropriated no longer exists; and WHEREAS, City staff has determined that the appropriation of the HOME Program funds as described herein will not cause the total amount appropriated in the HOME Program Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during the 2011 fiscal year; and WHEREAS, Article V, Section 11, of the City Charter provides that federal grant appropriations shall not lapse if unexpended at the end of the fiscal year until the expiration of the federal grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from unanticipated revenue in the federal fiscal year 2011-2012 in the HOME Program Fund the sum of FIVE HUNDRED NINETY-NINE THOUSAND TWO HUNDRED FIFTY-NINE DOLLARS ($599,259), upon receipt from federal fiscal year 2011-2012 HOME Participating Jurisdiction Grant Funds. Section 2. That there is hereby appropriated for expenditure from unanticipated program income revenue, upon receipt thereof, in the HOME Program Fund the sum of FORTY-FIVE THOUSAND NINETY-THREE DOLLARS ($45,093), for approved HOME Program projects. Section 3. That the unexpended and unencumbered amount of THREE HUNDRED FOURTEEN THOUSAND TWO HUNDRED EIGHTY-SEVEN DOLLARS ($314,287) is hereby authorized for transfer from the 2010-2011 HOME Program projects to the 2011-2012 HOME Program and appropriated therein. Section 4. That the unexpended and unencumbered amount of TWENTY-FIVE THOUSAND THREE HUNDRED TWENTY-EIGHT DOLLARS ($25,328) is hereby authorized for transfer from the 2004-2005 HOME Program projects to the 2011-2012 HOME Program and appropriated therein. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk RESOLUTION 2011-065 OF THE COUNCIL OF THE CITY OF FORT COLLINS ELIMINATING RESTRICTIONS ON THE USE OF AFFORDABLE HOUSING FUNDS CURRENTLY EARMARKED FOR THE ACQUISITION OF FORMER RENTAL PROPERTIES WHEREAS, the City’s Homebuyer Assistance (HBA) Program uses funding from federal Home Investment Partnership Program (HOME) and Community Development Block Grant Program (CDBG) grants, as well as money from the City’s Affordable Housing Fund (AHF), to help eligible households purchase housing by providing loans to cover downpayment and closing costs; and WHEREAS, on November 17, 2009, the City Council approved Resolution 2009-103, approving programs and projects that would receive funds from CDBG, HOME, and the AHF; and WHEREAS, Resolution 2009-103 designated $100,000 in AHF funds to be spent on the HBA program, with the limitation that the AHF funds be used for assistance in purchasing former rental properties; and WHEREAS, in most other cases, homebuyer assistance has been split with 50% of the funds coming from the HOME program and 50% coming from the CDBG program; and WHEREAS, due to recent changes in federal regulations regarding how HOME funds may be used, HOME funds can no longer be used as the 50% match to the CDBG funds; and WHEREAS, City staff would like the flexibility to use $60,000 of the AHF funds approved in Resolution 2009-103 to assist in the purchase of properties other than former rental units in place of the HOME funds, and is requesting that the City Council remove the “former rental properties” restriction with regard to that portion of the AHF funds; and WHEREAS, the CDBG Commission, at its regular meeting on February 10, 2011, and the Affordable Housing Board, at its regular meeting on March 3, 2011, voted unanimously to recommend the requested change in the use of these AHF funds. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that $60,000 in Affordable Housing Fund dollars approved by the Council to be expended on homebuyer assistance for former rental properties pursuant to Resolution 2009-103 shall no longer be earmarked specifically for the purchase of former rental properties, and may be used for any home purchase as part of the City’s Homebuyer Assistance Program. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk DATE: July 19, 2011 STAFF: Mike Freeman Marty Heffernan AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 26 SUBJECT Items Relating to the Fort Collins Museum/Discovery Science Center Project. A. Second Reading of Ordinance No. 087, 2011, Appropriating Prior Year Reserves in the General Fund for Transfer to the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Project. B. Second Reading of Ordinance No. 088, 2011, Appropriating Prior Year Reserves in the Water Fund for the Purpose of Providing a Loan to FCDM, Inc. for the Fort Collins Museum/Discovery Science Center Project. EXECUTIVE SUMMARY At the July 5, 2011 City Council meeting, Council adopted on First Reading, two ordinances which appropriate funding to continue construction on the new Fort Collins Museum/Discovery Science Center facility. Ordinance No. 087, 2011, adopted 5-2 (nays: Kottwitz, Ohlson) appropriates $1.5 million from General Fund reserves to the capital project. Council amended the original ordinance from $3 million to $1.5 million. Ordinance No. 088, 2011, adopted 6-1 (nays: Kottwitz) appropriates $875,000 from Water Fund reserves to the Non-profit Corporation as a loan. These ordinances will keep the museum project moving forward for several months and avoid a costly work stoppage. The building project is experiencing a $3,875,000 cash flow issue from two sources. The Downtown Development Authority (DDA) has committed $3 million for the building but funds are not currently available. The Non-profit Corporation has raised $4,561,916 of which $875,000 is in the form of pledges to be paid between 2011 and 2014. The two Ordinances allow construction to continue for several months. This additional time allows Council to consider the Building Community Choices reserve at the July 12 work session and other potential funding mechanisms; review the next few months of sales tax; and the DDA will receive its certification from the County in August, providing key data to determine when its $3 million commitment can be paid to the project. BACKGROUND / DISCUSSION Through Council’s support, the Fort Collins Museum and the Discovery Science Center (DSC) joined together to create an exceptional new museum experience and facility. In 2005, Council included the new museum in the Building on Basics (BOB) capital program, which received strong voter support. BOB provided $6.183 million for the project and required DSC to provide at least $3.6 million in matching funds. The DSC (which has transitioned into the Museum Non-Profit Corporation (NPC)) has raised more than $8 million to date, far exceeding their original $3.6 million commitment. BOB also provides $200,000 annually for seven years for operation and maintenance of the new facility. The BOB operations and maintenance dollars will end after seven years of operations. The current plan to replace these funds is to continue to build the institutional endowment over the next seven years to generate enough income to cover the $200,000 BOB operations and maintenance dollars. BUILDING The building construction project is experiencing a $3,875,000 cash flow problem. Two significant sources of funding are currently not available to pay into the construction project, which began on August 16, 2010 and is slated for completion in November 2011. Council adopted on First Reading Ordinance No. 087, 2011, for $1.5 million and Ordinance No. 088, 2011, for $875,000, totaling $2,375,000 to keep the museum project moving forward for several months and avoid a costly work stoppage. July 19, 2011 -2- ITEM 26 To default on a construction contract would have an impact on the City’s bond rating, and could have a significant impact on the City’s reputation with contractors with the potential result of fewer firms willing to bid to the City and increased bids on future projects. The Downtown Development Authority (DDA) committed $3 million for the building but the funds are not currently available. The DDA is exploring funding options but will not have the funding in 2011. The Museum Non-profit Corporation (NPC) has committed $4,561,916 to the museum building, with $875,000 of that amount in the form of pledges. These pledges will be paid between 2011 and 2014 and are not available to fund the project now. Ordinance No. 087, 2011 appropriates $1.5 million from the General Fund to the capital project. Council amended the Ordinance for Second Reading from $3 million to $1.5 million. This funding covers half of the DDA’s $3 million commitment, but is not a loan to the DDA. The DDA will receive its certification from the County in August, providing key data to determine when and how the DDA will issue bonds for this and other upcoming DDA projects. It is possible the City could be the purchaser of the DDA’s bonds. The remaining $1.5 million will be needed in several months to complete the construction project. On First Reading, Council asked if the funding source could be a source other than the General Fund. Building Community Choices remaining balance is another possible source. Ordinance No. 088, 2011, approves an $875,000 loan to the NPC to cover pledges made to the project. The loan details are attached as an Exhibit to the Ordinance, and include a 3.5% interest rate (prime rate of 3.25% plus .25%) with a payout schedule starting in 2012 and ending in 2014. EXHIBITS Council did not adopt on First Reading, Ordinance No. 089, 2011, to loan the NPC an additional $1.2 million to cover pledges designated specifically for fabrication of exhibits for the new facility. There are eleven themed areas in the master exhibit plan. Three themed areas are funded through designated donations that have been paid: music and sound, science, and natural areas. The $1.2 million for the remaining zones is in the form of pledges to be paid between 2012 and 2017. NPC continues to explore private bridge loans to cover the pledges. Interest rates will be higher than what the City could provide, which will decrease the amount of funding available for exhibit fabrication. If a loan cannot be secured, the remaining zones will be phased into the gallery as pledges are paid, between 2012 and 2017. Council asked if staff would be adding to the bottom line of the total exhibit costs if the exhibits were phased in over time. The bottom line will see a 10 – 20% increase by phasing the exhibits. The percentage moves toward 20% as the phases are spread farther apart over time. On First Reading, Council requested a list of the top 4 or 5 operation and maintenance costs, besides staffing, for the new facility. These items include: • Utilities – estimated at $42,600 annually (based on modeling projections that could change according to the actual use of the building and future costs of utilities) • Custodial, trash and recycling – estimated at $59,000 • Maintenance and repair – estimated at $55,000 year one (Primarily HVAC, electrical, preventive maintenance inspections, filters, etc. not covered under warranty. This number will ratchet up as warranties expire and the building begins to age) • Grounds maintenance/snow removal - estimated at $18,500 Council also directed staff to fill all three available City appointed seats on the NPC Board. Staff will work with the City Manager to appoint the two vacant seats as soon as possible. FINANCIAL / ECONOMIC IMPACTS Ordinance No. 087, 2011, appropriates $1,500,000 in the General Fund to cover construction of the Museum building. The DDA’s pledge has already been appropriated in the Capital Projects fund, however the project is underway and it is unable to make payment at this time. To fund its pledge, the DDA plans to seek external financing. In that scenario the amount of available reserves in the General Fund at the end of 2012 are forecasted to exceed the policy minimum by $7,500,000. If, however, the DDA July 19, 2011 -3- ITEM 26 instead asks the City for a loan, and the loan is granted, available reserves above the policy minimum will be $4.5 million. Ordinance No. 088, 2011 authorizes $875,000 in the Water Fund to be loaned to the NPC. The NPC building commitments have already been appropriated in the project, however the project is underway and they are unable to make payment at this time. The NPC has building pledges equal to their commitment but the pledges will come in installments through 2014. The Water fund currently has reserves that exceed its policy minimums allowing it to make this loan. The proposed terms are 3.5% annual interest and $875,000 in principal to be paid according to the loan agreement. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on Second Reading. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - July 5, 2011 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: July 5, 2011 STAFF: Mike Freeman AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 27 SUBJECT Items Relating to the Fort Collins Museum/Discovery Science Center Project. A. First Reading of Ordinance No. 087, 2011, Appropriating Prior Year Reserves in the General Fund for Transfer to the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Project. B First Reading of Ordinance No. 088, 2011, Appropriating Prior Year Reserves in the Water Fund for the Purpose of Providing a Loan to FCDM, Inc. for the Fort Collins Museum/Discovery Science Center Project. C. First Reading of Ordinance No. 089, 2011 Appropriating Prior Year Reserves in the Water Fund for the Purpose of Providing a Loan to FCDM, Inc. for the Exhibits of the Fort Collins Museum/Discovery Science Center Project and Appropriating Unanticipated Revenue in the Capital Projects Fund. EXECUTIVE SUMMARY $3,875,000 in funding for the new Fort Collins Museum/Discovery Science Center is needed now to complete the building. Completion is scheduled for November 2011. The Downtown Development Authority (DDA) has committed $3 million for the building, but the funds are not currently available. The DDA is exploring funding options but will not have the funding in 2011. Adoption of Ordinance No. 087, 2011, will appropriate $3 million from General Fund reserves for the museum project to complete the building. The DDA plans to reimburse the City for the $3 million through financing provided by the City or from other funds secured by the DDA. The Non-Profit Corporation (NPC) has committed $4,761,916 to the museum building, with $875,000 of that amount in the form of pledges to be paid between 2012 and 2014. The NPC is working to obtain a private loan for the $875,000 but the financing will be costly and difficult to obtain. Adoption of Ordinance No. 088, 2011, will appropriate $875,000 from reserves in the Water Fund to complete the building. These funds will be transferred to the Capital Project Fund account for the museum in the form of a loan to the NPC. The anticipated loan terms include an interest rate of 3.5% and a maturity date of December 31, 2014. The loan will be evidenced by a loan and security agreement and corresponding promissory note. The NPC has raised $3.617 million for museum exhibits, with $1.2 million in the form of pledges to be paid in future years (2011-2017). The new museum will open with a nice, but somewhat limited exhibit experience without a bridge loan for the $1.2 million in exhibit pledges. Some exhibits will be postponed, and other exhibits will be more static, without the depth of knowledge or interactive technology that will be possible once the future year pledge money becomes available. Adoption of Ordinance No. 089, 2011, will appropriate $1.2 million from Water Fund reserves for museum exhibits. These funds will be transferred to the Capital Project Fund account for the museum in the form of a loan to the NPC. The anticipated loan terms include an interest rate of 3.75% and a maturity date of December 31, 2017. The loan will be evidenced by a loan and security agreement and corresponding promissory note. BACKGROUND / DISCUSSION PROJECT FUNDING Through Council’s support, the Fort Collins Museum and the Discovery Science Center (DSC) joined together to create an exceptional new museum experience and facility. In 2005, Council included the new museum in the Building on Basics (BOB) capital program, which received strong voter support. BOB provided approximately $6.183 million for the project and required DSC to provide at least $3.6 million in matching funds. BOB also provides $200,000 annually COPY COPY COPY COPY July 5, 2011 -2- ITEM 27 for seven years for operation and maintenance of the new facility. The DSC (which, along with the Museum Advisory Board, has transitioned into the Museum Non-Profit Corporation (NPC)) has raised approximately $8.879 million to date, far exceeding its original $3.6 million commitment. In addition to BOB funding, approximately $6.529 million has been provided from other public sources as follows: • City Natural Resources: $ 1,000,000 (building $265,113 / exhibits $734,887) • Art in Public Places (Utility Project): $ 435,000 • City land donation: $1,730,000 • Department of Local Affairs: $ 200,000 • Colorado Department of Public Health and Environment: $ 75,000 • Downtown Development Authority: $3,000,000 • Estate Gift to the Fort Collins Museum $ 89,000 Other Public Funding $6,529,000 Building on Basics $6,183,000 NPC $8,879,000 Together, public and private contributions to the project total: $21,591,000. Based on these funding commitments, the City sought and secured Council’s approval to appropriate $15,109,666 for the exhibit master plan, and design and construction of the new museum, as follows: $6,183,750 from BOB $3,275,000 ($3 million DDA; $200,000 DOLA; $75,000 grant, Ordinance No.130, 2009) $4,561,916 from the NPC (Ordinance No. 117, 2010) $ 89,000 from Estate Gift (Ordinance No. 101, 2009) $1,000,000 from City Natural Areas Program Allocation of Appropriated Funds $13,218,105 Building $ 1,891,561 Exhibit Master Plan and Natural Areas Exhibits BUILDING FUNDS On January 27, 2010, after completion of the Request for Proposal process, the City entered into a design/build contract with Oz Architecture and Hensel Phelps for $11,400,000. On December 28, 2010, Change Order #1 was issued for $577,347 which increased the building square footage from 39,905 to 46,928. Additionally, Change Order #2 was issued May 4, 2011, for $159,824 for various additional items incorporated into the contract. This brought the contract total to $12,137,171. Remaining appropriated building funds were used for soft costs (fees, environmental tests/services, project management etc.). Building construction began in earnest on August 16, 2010 after completion of the development review process and resolution of a land title issue with railroad right-of-way that required a re-design of a storm water quality pond. Completion of the building is expected in November 2011. As of June 30, 2011, the City has paid $8,754,611 to the contractor for work performed. Additional payments of $3,382,560 are anticipated to complete the building as follows: July 31 $786,000 August 31 $672,560 September 30 $603,500 October 31 $493,500 November 30 $440,000 December 31 $387,000 All available funding for the building has been expended. Consequently, the design/build contract is short by $3,382,560. COPY COPY COPY COPY July 5, 2011 -3- ITEM 27 DDA FUNDING: The $3 million anticipated funding from the DDA is not currently available. The history of the DDA commitment of the funding is as follows: • April 2004: DDA Board approves $1 million for the museum project. • May 2009: DDA Board approves an additional $2 million for the project, with construction anticipated to begin in 2010. • June 2010: DDA and City Finance begin negotiations of terms with Great Western Bank for a 2010 bond issuance and determine capacity is not available to fund the museum commitment in the 2010 bond series. • July 2010: DDA inquires of City project staff as to when the $3 million is required, indicating DDA had to limit the bond principal amount in 2010 and needs to include the museum commitment in its 2012 bond issuance, and suggests working together on some temporary solutions. Staff responds that DDA funds are needed in 2011, but does not take action to identify solutions. • March 2011: DDA is notified by City that project has a funding deficit and needs DDA funds. DDA begins investigating options to fund the $3 million commitment but confirms that funds will not be available in 2011. NPC BUILDING FUNDS The NPC has committed $4,761,916 to the building, with $875,000 of that amount in the form of pledges that will be paid over the next few years. The $875,000 is needed in 2011 to complete the building. The NPC has been working to secure a bridge loan from private lenders for the $875,000, but the tight credit market has made this very challenging and expensive. Annual interest payments in excess of $50,000 are expected. The NPC is committed to bridging the $875,000 in 2011 so the building can be completed. However, if the City provides the funding it would save the project considerable expense and assure timely completion (contingent on resolving the DDA funding problem). The outstanding building pledges are from very reliable organizations, as follows: The Griffin Foundation: $400,000 ($100,000 annually 2011-2014) Woodward: $250,000 in 2012 The Gates Family Foundation: $250,000 in 2013 The Boettcher Foundation: $ 75,000 in 2013 Staff has investigated options for reducing the building expense. Unfortunately, the building project is too far along to afford any significant savings. Staff has already made $300,000 worth of reductions to keep the project within the original budget. Additional reductions would require portions of the building to be unfinished. APPROPRIATION FOR BUILDING Adoption of Ordinance No. 087, 2011, appropriates $3,000,000 from General Fund reserves for the museum project to complete the building. The DDA will reimburse the $3 million by obtaining private financing, or through financing provided by the City, as approved by Council. Adoption of Ordinance No. 088, 2011 appropriates $875,000 from Water Fund reserves to be loaned to the NPC for the museum project to complete the building. CONTRACT IMPLICATIONS If the City fails to make a payment, the City may be in default under the contract. COPY COPY COPY COPY July 5, 2011 -4- ITEM 27 NPC EXHIBIT FUNDS $2.975 million for exhibits has been raised by the NPC. These funds have been restricted by the donors for exhibits and cannot be used for the building. $1.2 million in exhibit donations will be paid in future years as follows: The Bohemian Foundation: $250,000 in late 2011 The Schatz Foundation: $250,000 in 2012 Woodward: $200,000 in 2014 Anonymous Donor: $500,000 ($100,000 annually 2013-2017) The new museum will open with a nice, but somewhat limited exhibit experience absent a bridge loan for the future year exhibit pledges. For example, the early childhood area would not be in place; the live animal exhibit would include only the City’s modest current collection; the bike exhibit would have to wait; and the Flood Theater exhibit would be postponed. Additionally, many exhibits will be more static, without the depth of information or interactive technology that will be possible once the future pledge funds become available. In contrast, three areas (Natural Areas, Science Experience, and Music and Sound) will be fully executed on opening day because they are funded by donations specifically designated for these exhibits. APPROPRIATION FOR EXHIBITS Adoption of Ordinance No. 089, 2011, appropriates $1.2 million from Water Fund reserves to be loaned to the NPC for Museum exhibits and appropriates the same amount in the Capital Projects Fund. THE DIGITAL DOME The Digital Dome Theater is the capstone element of the Museum of Discovery. It provides a 360 degree immersive experience for the exploration of astronomy, music, earth and climate science, art, cultural history, presentations, and events. A $2 million campaign is underway to fund the dome and $500,000 has been raised with $350,000 in the form of future year pledges. The NPC is working to secure a private bridge loan for the $350,000 so the infrastructure for the dome can be completed by the on-site building contractor. Completing this work in the future would be much more ($125,000 to $200,000) expensive. No Council action is being requested regarding the Digital Dome. FINANCIAL / ECONOMIC IMPACTS Adoption of Ordinance No. 087, 2011 appropriates $3,000,000 in the General Fund to cover construction of the Museum building. The DDA’s pledge has already been appropriated in the Capital Projects Fund, however the project is underway and they are unable to make payment at this time. To fund its pledge, the DDA plans to seek external financing. In that scenario the amount of available reserves in the General Fund at the end of 2012 are forecasted to exceed the policy minimum by $7,500,000. If however the DDA instead asks the City for a loan, and the loan is granted, available reserves above the policy minimum will be $4,500,000. Adoption of Ordinance No. 088, 2011 authorizes $875,000 in the Water Fund to be loaned to the NPC. The NPC building commitments have already been appropriated in the project, however the project is underway and they are unable to make payment at this time. The NPC has building pledges equal to their commitment but the pledges will come in installments through 2014. The Water Fund currently has reserves that exceed their policy minimums allowing them to make this loan. The proposed terms are 3.5% annual interest and $875,000 in principal to be paid according the loan agreement. Adoption of Ordinance No. 089, 2011 authorizes $1,200,000 in the Water Fund to be loaned to the NPC, and appropriates the same amount in the Capital Projects Fund for exhibits in the Museum. The NPC has received exhibit pledges of $1,200,000 but the pledges will come in installments through 2017. The Water Fund currently has reserves that exceed their policy minimums allowing them to make this loan. The proposed terms are 3.75% annual interest and $1,200,000 in principal to be paid according the loan agreement. COPY COPY COPY COPY July 5, 2011 -5- ITEM 27 Utilities anticipates that significant capital project needs in the future and ongoing systemic adjustment of Water Utility revenues and operating costs may necessitate water rate increases in the future. The proposed loan of Water Fund reserves is not expected to create additional need for rate increases or to cause the reserves to fall below required levels, assuming that staff-projected rate increases are implemented. The Ordinance provides that it is the Council’s intent that in the event that unexpected capital projects needs or timing results in an increased need for reserves in the Water Fund, the Council would provide replacement funds in order to repay the loan to the Water Fund to meet that need. STAFF RECOMMENDATION Staff recommends adoption of the Ordinances on First Reading. ATTACHMENTS 1. Powerpoint presentation. 2. Downtown Development Authority memo ORDINANCE NO. 087, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR TRANSFER TO THE CAPITAL PROJECTS FUND FOR THE FORT COLLINS MUSEUM/DISCOVERY SCIENCE CENTER PROJECT WHEREAS, on November 1, 2005, Fort Collins voters passed Ordinance No. 092, 2005, approving the “Building on Basics” (“BOB”) tax for certain capital projects; and WHEREAS, $6,000,000 was included in the BOB capital project program for construction of a new combined-use facility for the Fort Collins Museum/Discovery Science Center (the “Project”); and WHEREAS, the City and Discovery Center, a Colorado non-profit corporation, d/b/a/ Discovery Science Center, now officially known as FCDM, Inc. (the “NPC”), entered into an operating agreement for the construction and operation of the Project; and WHEREAS, the Project will be jointly owned, managed and funded by the City and the NPC; and WHEREAS, the City Council, through various appropriation ordinances, has previously appropriated $15,109,666 for the construction of the Project, which appropriations include $3,000,000 in anticipated revenues from the Downtown Development Authority (“DDA”); and WHEREAS, in January 2010, the City entered into a design-build contract for the construction of the Project and construction commenced in August 2010; and WHEREAS, construction on the Project is continuing and the Project will incur additional construction costs through December 31, 2011; and WHEREAS, the DDA expected that its $3,000,000 commitment to the Project, which has been approved by the DDA Board of Directors, would be funded with proceeds from its 2010 bond issuance; and WHEREAS, because of market conditions and state legislation that had the effect of lowering the DDA’s tax revenue, the DDA was not able to issue bonds in an amount sufficient to generate the funds needed to meet its obligation to the Project; and WHEREAS, the DDA is continuing its efforts to obtain financing for its share of the funding shortfall so that the City can be repaid and the funds advanced by this ordinance restored to the General Fund reserve account as soon as possible; and WHEREAS, as a result of the inability of the DDA to provide $3,000,000 in time to meet the Project’s construction schedule, the Project’s capital project account does not have sufficient funds to cover the remaining construction costs of approximately $3,382,560 that are likely to be incurred by the City to complete the Project; and WHEREAS, in order to avoid delaying the opening of the Project, and to avoid the potentially significant and additional contract expenses that may result if construction of the Project is suspended, the City Council believes that it is in the best interest of the City to appropriate from General Fund reserves the amount of $3,000,000$1,500,000 to be used for construction of the Project; and WHEREAS, the funds appropriated by this Ordinance, in combination with the funds made available to the Project by the City’s loan to the NPC, which the City Council has approved through the adoption of Ordinance No. 088, 2011, will fund the construction costs of the Project through the end of September 2011; and WHEREAS, City Council desires additional information and discussion as to the possible sources for the additional funds that will be needed to pay the remaining costs to complete the Project; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from prior year reserves in the General Fund the total sum of THREE MILLION DOLLARS ($3,000,000)ONE MILLION FIVE HUNDRED THOUSAND DOLLARS ($1,500,000) to be transferred to the Capital Projects Fund for expenditure in the Fort Collins Museum/Discovery Science Center capital project. Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _________________________________ City Clerk -2- Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- ORDINANCE NO. 088, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE WATER FUND FOR THE PURPOSE OF PROVIDING A LOAN TO FCDM, INC. FOR THE FORT COLLINS MUSEUM/DISCOVERY SCIENCE CENTER PROJECT WHEREAS, on November 1, 2005, Fort Collins voters passed Ordinance No. 092, 2005, approving the “Building on Basics” (“BOB”) tax for certain capital projects; WHEREAS, $6,000,000 was included in the BOB capital project program for construction of a new combined–use facility for the Fort Collins Museum/Discovery Science Center (“Project”); and WHEREAS, the City and Discovery Center, a Colorado non-profit corporation, d/b/a Discovery Science Center, now officially know as FCDM, Inc. (the “NPC”), entered into an operating agreement for the construction and operation of the Project; and WHEREAS, the Project will be jointly owned, managed, and funded by the City and the NPC; and WHEREAS, the City Council, through various appropriation ordinances, has previously appropriated $15,109,666 for the construction of the Project, which appropriations include $4,561,916 in anticipated revenues raised by the NPC and its predecessor; and WHEREAS, in January 2010, the City entered into a design–build contract for the construction of the Project and construction commenced in August 2010; and WHEREAS, construction on the Project is continuing and the Project will incur additional construction costs through December 31, 2011; and WHEREAS, $875,000 of the NPC funds previously appropriated by the City Council for construction of the Project is in the form of donor pledges that are to be paid between 2011 and 2014, so the majority of these donor funds are not available at this time to be applied to the remaining construction costs of the Project; and WHEREAS, the $875,000 in NPC funds is needed to help cover the remaining construction costs that are likely to be incurred by the City to complete the Project; and WHEREAS, in order to avoid delaying the opening of the Project, and to avoid the potentially significant and additional contract expenses that may result if construction of the Project is suspended, the City Council believes that it is in the best interest of the City to appropriate from reserves in the Water Fund the amount of $875,000 and to transfer that amount to the Capital Projects Fund in the form of a loan to the NPC for the Project (the “NPC Loan”); and WHEREAS, City staff has prepared a proposed promissory note (the “Note”) and a loan agreement in the form entitled “Loan and Security Agreement Between the City of Fort Collins, Colorado and FCDM, Inc. for Funding the Fort Collins Museum/Discovery Science Center Project” (the “Loan Agreement”) attached hereto as Exhibit “A”; and WHEREAS, Article V, Section 12, of the City Charter permits the City Council to provide direction as to the investment of City funds; and WHEREAS, while the NPC Loan does not fit within the categories of approved investments established in the Investment Policy approved by the City Council in 2008, the City Council finds that, based on the interest rate, the collateral provided for the loan, and other conditions in the Loan Agreement, the NPC loan is a suitable investment for the Water Fund reserves; and WHEREAS, the NPC Loan will not necessitate any increase in water rates above those already projected by staff, and after investing the Water Fund reserves in the NPC Loan, the Water Fund will still have a sufficient balance of reserve funds to meet reserve fund requirements, assuming that the projected rate increases are implemented; and WHEREAS, in the event that the timing of, or unanticipated need for, Water Utility capital improvements results in a need for the NPC Loan funds to be restored to the Water Fund, it is the intent of the Council to provide a replacement funding source for the NPC Loan; and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years, notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated from Water Fund reserves the amount of EIGHT HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($875,000) for the purpose of making a loan to the NPC for its remaining share of the construction costs for the Project. Section 2. That the Note, Loan Agreement, and related documents are hereby approved on substantially the terms and conditions contained therein, subject to modifications in form and substance as the Mayor may, in consultation with the City Attorney, deem to be desirable and necessary to protect the interests of the City. -2- Introduced, considered favorably on first reading, and ordered published this 5th day of July, A.D. 2011, and to be presented for final passage on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 19th day of July, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- 1 LOAN AND SECURITY AGREEMENT BETWEEN THE CITY OF FORT COLLINS, COLORADO AND FCDM, INC. FOR FUNDING THE FORT COLLINS MUSEUM/DISCOVERY SCIENCE CENTER PROJECT THIS LOAN AND SECURITY AGREEMENT (the “Agreement”) is made this ___ day of July, 2011, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and FCDM, Inc., a Colorado nonprofit corporation (the “NPC”). RECITALS 1. The NPC is a nonprofit corporation that was formerly known as the Discovery Center d/b/a Discovery Science Center. The purpose of the NPC is to support the construction and operation of the Fort Collins Museum/Discovery Science Center joint facility project (the “Project”). 2. In March 2008, the City and the NPC entered into an operating agreement for the funding and operation of the Project (the “Operating Agreement”). The Operating Agreement describes the Project as consisting of, among other things, the “Facility”. The Facility is defined in the Operating Agreement as the land, buildings and associated improvements that make up the physical plant for the Project. 3. In the Operating Agreement, the NPC agreed to provide no less than $2,500,000 for design and construction of the Project. Subsequently, the NPC has committed to provide an additional $ 2,061,961.00 , for a total of $4,561,916. By Ordinance No. 117, 2010, the City Council appropriated this amount into the City’s capital project fund for the construction of the Project. 4. Included in the amount committed by the NPC are amounts the NPC anticipates receiving from pledges by private donors, in the aggregate amount of $875,000, which the donors have committed to fund in years 2012 through 2014 (the “Outstanding Pledges”). 5. Construction of the Project is expected to be completed in November 2011. In order to help fund the remaining construction costs, the City and the NPC would like the funds represented by the Outstanding Pledges be made available by the NPC in 2011, instead of the schedule by which the NPC anticipated collection of Outstanding Pledges. In the spirit of the Operating Agreement, the NPC desires to make the funds available to the City, but will require financing in order to do so. Although private lenders have expressed some interest in providing financing to the NPC, the proposed terms are unfavorable. The parties acknowledge that the cost of the financing will reduce the NPC’s capital available for future support for the Project. 6. The City and the NPC are willing to enter into this Loan and Security Agreement to provide for the extension of credit by the City to the NPC, as Borrower, and for the creation of a 2 security interest in certain property of the Borrower to secure repayment of the Loan, all on the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties agree as follows: Section 1. The Loan. After the effective date of this Agreement (the “Effective Date”), the adoption of the required ordinances and resolutions by the City, the approval of the Agreement by the NPC Board of Directors, and the execution of a promissory note and other documents as may reasonably be required, the NPC agrees to pay to the City the principal sum actually transferred by the City to the capital project account for the Project on the NPC’s behalf, but not to exceed Eight Hundred Seventy Five Thousand Dollars ($875,000). The NPC agrees and acknowledges that the loan proceeds will be transferred by the City to the City’s capital project account for the Project, and will not be disbursed to the NPC. Section 2. Interest. Interest on the Loan will accrue at a rate equal to ______%. Section 3. Payment Terms. The Loan and accrued interest will be due and payable by the NPC to the City as set forth in the payment schedule contained on Exhibit A, attached hereto and incorporated into this Agreement. All unpaid principal of the Loan, interest, default interest, fees and charges for the Loan will mature on the December 31, 2014 (the “Maturity Date”). Section 4. No Prepayment Penalty. The NPC, in its sole discretion, may prepay all or any portion of the Loan at any time and any such prepayment will be without any prepayment penalty. If a prepayment is made, the funds will be applied first to any interest that has accrued and then the balance of the payment will be applied to the reduction of principal. Section 5. Security Agreement. As security for the Loan, the Borrower agrees: (a) that any unpaid principal and interest due and payable to the City on the Maturity Date will be considered a documented expenditure under Section 3.1 of the Operating Agreement for purposes of determining the City’s Ownership Interest in the Facility. (b) that any surplus Institution Revenue, defined in Section 7.2 and Section 7.3 of the Operating Agreement, will be used, if necessary, to pay the principal and interest due on the Loan. (c) to execute a promissory note (the “Note”) substantially in the form of Exhibit B. (d) that Borrower grants to the City a security interest in all of the Borrower’s rights to payment under any and all donor pledge agreements, including the Outstanding Pledges, that represent unrestricted pledges or pledges 3 for the construction or operation of the Project (the “Collateral”). This Agreement does not grant the City a security interest in pledge agreements that are specifically, by the terms of the pledge agreement, for pledges by private donors that are to be used solely for the purpose of the creation or acquisition of Project exhibits or other designated Project components. (1) Borrower represents that it has not previously granted a security interest in any of the Collateral. (2) Borrower agrees that if it is in default under this Agreement or the Note, the City may notify any donor whose pledge to the NPC constitutes Collateral for the City’s security interest and request payment directly to the City, on behalf of the NPC. Section 6. Default. Upon the occurrence of any of the events listed below in this Section 6, all of the obligations of the Borrower under the Note and this Agreement and any other documents executed by Borrower in connection with the loan contemplated by this Agreement (“Loan Documents”), at the option of the holder thereof, shall become immediately due and payable: (a) the Borrower, without the consent of the City, allows the creation of any lien or encumbrance on the Collateral. (b) the Borrower fails to comply with any of the terms, covenants or conditions contained in this Agreement, the Note, or the other Loan Documents, and the situation is not remedied within 10 business days after Borrower’s receipt of written notice from the City. (c) a petition in bankruptcy is filed by or against the Borrower and is not dismissed within 60 days, or a receiver or trustee of the Borrower is appointed, or the Borrower makes an assignment for the benefit of creditors, or Borrower is adjudged insolvent by any state or federal court of competent jurisdiction. If Borrower is in default, in addition to the remedies provided in the Note or this Agreement, the City shall have any and all rights and remedies permitted under applicable law. Section 7. Waiver. No consent or waiver, express or implied, or the acceptance of a late payment, or the failure to enforce any of Borrower’s obligations under this Agreement, the Note, or other Loan documents, will be construed as a waiver of any breach or default by Borrower. Section 8. Attorney’s Fees and Costs. In the event either party commences any proceeding to enforce the Agreement, or the Note, the prevailing party therein shall be entitled to an award of all of its costs and expenses incurred therein and in connection therewith, including its reasonable attorney’s fees. 4 Section 9. Assignment. This Agreement, the Note, and the Loan Documents, are nonassignable and nontransferable by Borrower, by operation of law, or otherwise, and any attempt to do so shall be null and void. This Agreement, the Note, and the Loan Documents may be fully assigned by the City. Section 10. Notice. Any notice required with respect to the Agreement or the Note, is to be delivered in writing to be accomplished by personal delivery or mailing postage prepaid by the United States Postal Service, or other commercial carrier to the following addresses: If to the City City of Fort Collins Director of Finance PO Box 580 Fort Collins, CO 80522-0580 If to the NPC Executive Director FCDM, Inc. 200 Mathews St. Fort Collins, CO 80524. Section 11. Entire Agreement. This Agreement will be construed according to its fair meaning, as if prepared by both Parties. This Agreement, and the documents executed pursuant to the Agreement, contain the sole and entire agreement and understanding of the parties with respect to the subject matter of the Agreement, and incorporate all prior discussions, negotiations and understandings. This Agreement cannot be changed, modified or amended, except in writing, executed by both parties. This Agreement is solely for the benefit of Borrower, and no person shall be deemed a third party beneficiary of this Agreement. Section 12. Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Colorado. CITY: CITY OF FORT COLLINS, COLORADO, a municipal corporation By: Karen Weitkunat, Mayor ATTEST: By: Wanda Krajiceck, City Clerk 5 APPROVED AS TO FORM: By: Assistant City Attorney FCDM, Inc.: By:_________________________________ Board President Non Profit Corporation Building Pledges Loan agreement from City's Water Fund to Museum Non-Profit Corporation Loan Amount 875,000.00 Start Date 1-Aug-11 * Interest Rate 3.500% * Matures 31-Dec-14 Years 3 5/12 Time in Years Date Payment Interest Principal Balance - 1-Aug-11 875,000.00 1.42 31-Dec-12 393,385.42 43,385.42 350,000.00 525,000.00 2.42 31-Dec-13 443,375.00 18,375.00 425,000.00 100,000.00 3.42 31-Dec-14 103,500.00 3,500.00 100,000.00 - 940,260.42 65,260.42 875,000.00 * Dates and rates are preliminary. Specifics will be set after the loan is authorized. The interest rate equals the current prime lending rate of 3.25% plus 0.25% Draft June 13, 2011 {00584920 / 4} PROMISSORY NOTE $875,000 July ___, 2011 FOR VALUE RECEIVED, FCDM, Inc., (“Borrower”), promises to pay to the order of THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (“Lender”), at its office at 300 LaPorte Avenue, Fort Collins, Colorado 80524, in lawful money of the United States of America the principal amount of Eight Hundred Seventy Five Thousand Dollars ($875,000). This Promissory Note is issued pursuant to the Loan and Security Agreement between the City of Fort Collins and FCDM, Inc. dated July ___, 2011, between Borrower and Lender (the “Agreement”). Capitalized terms used herein but not defined herein have the meanings given such terms in the Loan Agreement. The obligations of Borrower evidenced by this Promissory Note are payable in accordance with the terms and conditions of the Agreement. The rate of interest borne by this Promissory Note is a fixed rate equal to ________ % per annum (“Interest Rate”). Final payment of all unpaid Principal and accrued interest, plus any default interest, fees and charges owing under this Note, will be due and payable on December 31, 2014 (the “Maturity Date”). The annual interest rate of this Promissory Note is computed on a 360 day year basis, multiplied by the actual number of days elapsed. The Loan may be drawn 100% upon execution of the Loan Documents, or in part from time to time, but not more frequently than monthly. Unless otherwise agreed to or as may be required by applicable law, payments will be applied first to any accrued interest; then to principal; then to any late charges; and then to any unpaid collection costs. If Lender refers this Note to an attorney for collection or seeks legal advice following a default beyond all cure periods allowed under this Note, or the Lender is the prevailing party in any action instituted on this Note, or if any other judicial or non-judicial action, suit or proceeding is instituted by Lender or any future holder of this Note, and an attorney is employed by Lender to appear in any such action or proceeding, or to reclaim, seek relief from a judicial or statutory stay, sequester, protect, preserve or enforce Lender’s interest in this Note, the Loan Documents or any other security for this Note (including, but not limited to, proceedings under federal bankruptcy law or in connection with any state or federal tax lien), then Borrower promises to pay reasonable attorneys’ fees and reasonable costs and expenses incurred by Lender and/or its attorney in connection with the above-mentioned events. If not paid within ten (10) days after such fees become due and written demand for payment is made, such amount shall be due on demand or may be added to the principal, at the Lender’s discretion. If any payment or installment due under this Note is not paid when it becomes due and payable, Borrower recognizes that the Lender will incur extra expenses for both the administrative cost of handling delinquent payments and the cost of funds incurred by Lender after the due date. Therefore, Borrower shall, in such event, without further notice, and without prejudice to the right of Lender to collect any other amounts provided to be paid herein, including default interest or to declare a default hereunder, pay to Lender to cover such expenses - 2 - incurred as a result of any installment payment due being not received within ten (10) days of its due date, a “late charge” of five percent (5%) of the amount of such delinquent payment. Except as otherwise provided herein, the Borrower waives presentment and demand for payment, notice of acceleration or of maturity, protest and notice of protest and nonpayment, bringing of suit and diligence in taking any action to collect sums owing hereunder and agrees that its liability on this Note shall not be affected by any release or change in any security for the payment of this Note or release of anyone liable hereunder. No extension of time for the payment of this Note, or any installment or other modification of the terms made by the Lender with any person now or hereafter liable for the payment of this Note, shall affect the original liability under this Note of the Borrower, even provided the Borrower is a party to such agreement. In no event whatsoever shall the amount paid, or agreed to be paid, to the holder of this Note for the use, forbearance or retention of the money to be loaned hereunder (“Interest”) exceed the maximum amount permissible under applicable law. If the performance or fulfillment of any provision hereof or of any of the Loan Documents or any agreement between Borrower and the Lender of this Note shall result in Interest exceeding the limit for interest prescribed by law, then the amount of such Interest shall be reduced to such limit. If, from any circumstance whatsoever, the Lender of this Note should receive as Interest, an amount which would exceed the highest lawful rate, the amount which would be excessive Interest shall be applied to the reduction of the principal balance owing (or, at the option of the Lender, be paid over to Borrower) and not to the payment of Interest. If any provision hereof or any of the Loan Documents shall, for any reason and to any extent, be invalid or unenforceable, then the remainder of the document or instrument in which such provision is contained and any of the other Loan Documents shall not be affected thereby but instead shall be enforceable to the maximum extent permitted by law. Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any rights they may have to a trial by jury in respect of any litigation based hereon or arising out of, under or in connection with this note or any course of conduct, course of dealing, statements (whether oral or written) or actions of the other party. This Promissory Note shall be construed in accordance with the laws of the State of Colorado. IN WITNESS WHEREOF, Borrower has duly executed this Promissory Note as of the day and year first above written. BORROWER: FCDM, Inc. By: Executive Director DATE: July 19, 2011 STAFF: Josh Birks AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 27 SUBJECT Resolution 2011-066 Approving an Agreement Between the City and Avago Technologies US, Inc. to Provide Business Investment Assistance for the Building 4 Retrofit. EXECUTIVE SUMMARY This Resolution approves a Business Investment Agreement between the City and Avago Technologies. The Agreement provides two performance based investments: (1) a one-time use tax rebate on manufacturing equipment purchased as part of the expansion; and (2) a personal property tax rebate on the same equipment for ten years. Both investments relate to revenues the City would not otherwise collect if the expansion did not occur within the City. The total investment package has a value of approximately $3.2 million and includes both local and state investments. The total value of the use tax and personal property constitutes $2.912 million of the package value. NOTE: The value of the package has increased since the Council Finance Committee briefing on July 5, 2011. The increase is due to additional investment in manufacturing equipment by Avago. BACKGROUND / DISCUSSION In 2005, the City Council adopted the first Economic Action Plan to provide staff focus and direction regarding efforts to enhance the local economy. The Action Plan contains four key strategies: (1) job creation through business retention, expansion, incubation, and attraction; (2) be proactive on economic issues; (3) build partnerships; and (4) diversify the economy. Furthermore, City Council has given consistent and clear direction that all investment agreements be performance based. In 2006, the City commissioned a study to evaluate the geographic concentration and interconnectedness of companies within the community in order to determine potential industry clusters. The study identified several existing and emerging industry clusters. The identified clusters were modified into five targeted industry clusters, which became the focus of job creation activities. These clusters included: Clean Energy, Bioscience, Chip Design, Software, and Uniquely Fort Collins. On August 17, 2010, the City adopted Resolution 2010-055, authorizing and directing the City Manager to continue to support on behalf of the City participation in the formation and development of cluster initiatives relating to the identified targeted industries of the City, to work with regional partners and local business entities to develop strategic plans for the clusters, and to support the advancement of the plans as they are implemented for the purpose of primary job retention, expansion, and creation. Avago Technologies has a 50-year history of innovation dating back to origins within Hewlett-Packard Company (HP). The company began as HP's components division back in the early 1960s and thrived there for three decades. When HP spun off Agilent Technologies in 1999, the company became Agilent's Semiconductor Products Group (SPG) and expanded into new markets and applications. In late 2005, SPG was acquired by several private equity partners and Avago Technologies was founded. Over the years, Avago has assembled a team of over 1,000 design and product engineers and maintains highly collaborative design and product development resources around the world that have resulted in the development of numerous groundbreaking technologies. The Business Investment Agreement being offered to Avago Technologies is consistent with both the Action Plan strategies and City Council direction: • The proposed Business Investment Agreement rebates tax revenues generated by the project; without the project these revenues would not be received by the City. • The Economic Action Plan clearly identifies business retention and expansion as the primary goal for the City’s job creation efforts over business attraction; the proposed expansion supports this goal. July 19, 2011 -2- ITEM 27 • Plan Fort Collins call for creating a diversity of jobs that enables citizens and businesses to thrive; the proposed expansion provides an array of jobs and salary ranges. Most importantly, the expansion brings back much needed high-tech manufacturing jobs. PROJECT OVERIVEW Avago Technologies plans to expand its wafer manufacturing, which currently occurs only in Taiwan. The company evaluated expansion at facilities in Taiwan, Italy, and Fort Collins. Avago Technologies selected the City for expansion for several reasons, including: (1) low power costs, (2) progressive utilities willing to assist in the modernization of plant operations related to power and water consumption, and (3) a Business Investment Agreement as described in detail below. This expansion represents an opportunity to bring a type of chip manufacturing to Fort Collins that has occurred primarily off-shore. The wafer fabrication expansion includes: • The retrofit of the existing Building 4 (approximately 10,000 square feet); • $17 million in retrofit construction costs; • $57.5 million in wafer manufacturing equipment; • $5.7 million in equipment installation; • An increase in water use of approximately 20.0 million gallons, an estimated 10 percent increase (equivalent to annual consumption of approximately 300 average homes; no anticipated impact on peak demand or the physical plant); and • An increase of approximately 1.0 megawatts of electric capacity (equivalent to annual consumption of approximately 500 average homes; no anticipated impact on peak demand or the physical plant). Furthermore, the proposed expansion is anticipated to add approximately 92 jobs including: • 8 Engineers earning approximately $100,000 annually; • 14 Technicians earning approximately $70,000 annually; and • 70 Operators earning approximately $40,000 annually. BUSINESS INVESTMENT AGREEMENT On April 22, 2011, Economic Health Office staff provided Avago Technologies with an offer of assistance to support the retrofit of Building 4 for wafer fabrication (Attachment 1). The package was submitted to Avago Technologies confidentially. The item was scheduled for Council Finance Committee consideration (July 5, 2011) and City Council action (July 19, 2011). The meetings were scheduled after the Colorado Economic Development Commission (EDC) considered a request for assistance from its Strategic Fund. The EDC requests that all potential assistance packages remain confidential until it has an opportunity to consider the request. The EDC considered the request on June 16, 2011. The Council Finance Committee meetings and City Council action were scheduled shortly after this meeting in consultation with the City Manager. The City of Fort Collins uses a variety of local investments to assist primary employers with expansion efforts. The total value of the proposed investment package is approximately $3.2 million and includes both local and state investments ($2.9 million in local investments and $300,000 in state investments). The package includes the following items: • $1.725 million in Equipment Use Tax rebate on the initial manufacturing equipment investment associated with the project • Approximately $817,000 in Personal Property Tax savings on manufacturing equipment over a 10 year period • Expedited review and commitment by City staff to Avago’s desired timeline • Free Integrated Design Assistance valued at $20,000 to improve operating efficiencies • Assistance with building re-commissioning, valued at up to $150,000 to maximize building efficiency and reduce utility costs • Implementation of the evaporative cooling credit against sewer costs, creating approximately $20,000 annually or a total of $200,000 over ten years • $230,000 in Colorado Economic Development Commission’s (EDC) Strategic Fund assistance (subject to Board approval); and • $73,600 in Colorado FIRST Customized Job Training Funds. July 19, 2011 -3- ITEM 27 The Utility items listed above are available to any company within Fort Collins, whether expanding or continuing operations. They have been included in the package description because the competition may not offer similar utility assistance. FINANCIAL / ECONOMIC IMPACTS Martin Shields, Associate Professor of Economic and Regional Economist at Colorado State University prepared an Economic Impact Analysis (EIA) of Avago Technologies planned expansion (Attachment 2). The following summarizes that analysis: • New equipment will generate approximately $1.725 million in use tax revenue (offset by investment package) • The same equipment will generate approximately $163,000 in annual personal property tax revenue of $1.63 million over the ten year agreement period (partially offset by investment package) • Construction activity ($17 million retrofit and $5.7 million equipment installation) will support 228 direct jobs and 74 spin-off jobs throughout the anticipated 15-month construction period • Construction will generate approximately $323,400 in use tax revenue on materials • The 92 new jobs will support an additional 155 in spin-off secondary jobs at an average salary of $48,900 • The 92 new jobs will generate approximately $554,000 in sales tax revenue and $413,000 in property tax revenue over the next ten years; and • The EIA recognizes additional sales tax and property tax revenue will be generated by the spin-off jobs; however, the analysis provides a conservative estimate of economic impact and does not estimate these revenues. The proposed Business Investment Agreement will have the following impacts on the City of Fort Collins finances: • All of the estimated $1.725 million in use tax revenue collected on the purchase of the wafer fabrication equipment will be rebated • Half of the estimated $163,000 in annual Personal Property Tax revenue collected on the wafer fabrication equipment will be rebated for ten years for a total of approximately $817,000 • Utilities will invest approximately $170,000 in one-time energy and water efficiency design assistance • In addition, Avago will take advantage of the new evaporative cooling credit offered by the Fort Collins Utilities for a total savings of $200,000 over the course of ten years • However, the City would not have collected Use Tax or Personal Property Tax revenue if the expansion had occurred in Italy or Taiwan. • Net impact of the Business Investment Agreement is approximately $1.755 million, as shown in Table 1. July 19, 2011 -4- ITEM 27 Table 1 Estimated Revenue, Rebate, and Net Revenue Revenue Estimated Revenue Rebate/ Incentive Net Revenue One-Time Items Construction Use Tax $323,000 $0 $323,000 Equipment Use Tax 1 $1,725,000 $1,725,000 $0 Integrated Design Assistance $0 $20,000 ($20,000) Building Re-commissioning $0 $150,000 ($150,000) Subtotal $2,048,000 $1,895,000 $153,000 On-Going Items (Cumulative over 10 Years) Equipment Personal Property Tax $1,630,000 $817,000 $817,000 Spin Off Sales Tax $554,000 $0 $554,000 Spin Off Property Tax $413,000 $0 $413,000 Evaporative Cooling Credit $0 $200,000 ($200,000) Subtotal $$2,597,000 $1,017,000 $1,602,000 Total $4,645,000 $2,912,000 $1,755,000 1 Current City Code allows for a rebate of 1.5 percent of the 3.0 percent use tax. The proposed Business Investment Agreement increases the rebate to the full 3.0 percent; therefore the incentive provides a value of $727,500 above current Code. ENVIRONMENTAL IMPACTS Avago plans to make the following system upgrades as part of the retrofit of Building 4: • A site-wide HVAC retrofit. • A "free heating" project, which utilizes waste heat from HVAC Chillers to reheat incoming outside air for Building 4. Similar to a Building 2 upgrade that reduced natural gas consumption on site by approximately 5%. • Purchase and installation of a high efficiency chiller sized to handle the building’s base load conditions (in winter) and run at optimum performance. • Replace two boilers with two new very high efficiency condensing boilers matched to the building’s base load, which avoids running boilers to big to run efficiently. Based on the Fort Collins Utility assistance , the upgrades will help to reach 3 million kilowatt-hours of annual savings. This savings in energy consumption will have the following environmental benefits: • The project would comprise 14% of the City’s annual efficiency savings goal; • The project would avoid 2119 metric tons of carbon emissions annually; and • The carbon emissions savings are equivalent to the annual emissions of 415 cars or 264 homes or the amount of carbon sequestered by 54,333 tree seedlings grown for ten years. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION Negotiations of the planned Avago Technologies expansion and related Business Investment Agreement were conducted confidentially. July 19, 2011 -5- ITEM 27 PUBLIC OUTREACH Negotiations of the planned Avago Technologies expansion and related Business Investment Agreement were conducted confidentially. ATTACHMENTS 1. Local Employment Investment Package, Building 4 Retrofit – Wafer Fabrication Expansion, prepared by City of Fort Collins, April 22, 2011 (This item is no longer confidential) 2. Company X, Economic Impact Analysis, prepared by Martin Shields, Colorado State University, April 26, 2011 3. Powerpoint presentation DRAFT Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com CONFIDENTIAL LOCAL EMPLOYMENT INVESTMENT PACKAGE Building 4 Retrofit - Wafer Fabrication Expansion Prepared for: Steve Wolley Avago Technologies 4380 Ziegler Rd. Fort Collins, CO 80525 Prepared by: Economic Health Office City of Fort Collins April 22, 2011 DRAFT This Page Intentionally Left Blank DRAFT TABLE OF CONTENTS Investment Package Overview .................................................................................................1 Project Description....................................................................................................................3 Manufacturing Investments.......................................................................................................4 Equipment Use Tax Rebate..................................................................................................4 Personal Property Tax Rebate..............................................................................................4 Expedited Development Review ...........................................................................................5 Utility Investments.....................................................................................................................6 Integrated Design Assistance Program.................................................................................6 Evaporative Loss...................................................................................................................6 Building Recommisioning......................................................................................................6 Colorado State Office of Economic Development Letter...........................................................7 DRAFT This Page Intentionally Left Blank DRAFT 1 Investment Package Overview The City of Fort Collins uses a variety of local investments to assist primary employers with expansion efforts. The City does not employ a one size fits all approach to developing investment packages. Instead, the City chooses to work collaboratively with each primary employer and build a package that is specific to the individual needs. This approach typically results in a better outcome for all parties. A portion of this package is contingent upon City Council approval. Staff will seek City Council approval once Avago Technologies has made a decision regarding the expansion. The City of Fort Collins is pleased to propose a $2.8 million investment package including the following items:  $1.455 million in Equipment Use Tax rebate on the initial manufacturing equipment investment associated with the project;  Approximately $690,00 in Personal Property Tax savings on manufacturing equipment over a 10 year period;  Expedited review and commitment by City Staff to Avago’s desired timeline;  Free Integrated Design Assistance valued at $20,000 to improve operating efficiencies;  Assistance with building recommissioning valued at up to $150,000 to maximize building efficiency and reduce utility costs;  Implementation of the Evaporative cooling credit against sewer costs creating approximately $20,000 annually or a total of $200,000 over ten years;  $230,000 in Colorado Economic Development Commission’s (EDC) Strategic Fund assistance (subject to Board approval); and  $73,600 in Colorado FIRST Customized Job Training Funds. DRAFT 2 Table 1 Investment Package Overview Annual Total One Time Investments Manufacturing Equipment Use Tax Rebate $1,455,000 Utilities: Integrated Design Assistance $20,000 Utilities: Building Recommissioning $150,000 OEDIT: Strategic Fund Assistance $230,000 Total One Time $1,855,000 On-Going Investments Duration Manufacturing Equipment Personal Property Tax Rebate 10 Years $68,897 $688,974 Utilities: Evaporative Loss Credit 10 Years $20,000 $200,000 OEDIT: Colorado FIRST Customizable Job Training Funds 1 Year $73,600 $73,600 Total On-Going $88,897 $962,574 Grand Total All Investments $2,817,574 Source: City of Fort Collins - Economic Health DRAFT 3 Project Description Avago Technologies is seriously considering building a second source for wafers that currently come from Taiwan. There are several fabrication facilities throughout the world that could be equipped to meet this need. The City of Fort Collins has based its analysis of potential business investments upon the following project characteristics:  The expansion will include the retrofit of the existing Building 4 (approximately 10,000 square feet);  The project will include $17 million in retrofit of the existing building;  The project will include $48.5 million in equipment;  The project will include $5.7 million in equipment installation;  The expansion will require an additional 20.0 million gallons in annual water use; and  The expansion will require an additional 1.0 megawatts of electric capacity. Furthermore, the proposed expansion is anticipated to add approximately 92 jobs including:  8 Engineers earning approximately $100,000 annually;  14 Technicians earning approximately $70,000 annually; and  70 Operators earning approximately $40,000 annually. DRAFT 4 Manufacturing Investments Equipment Use Tax Rebate The proposed expansion includes approximately $48.5 million in equipment purchases. These purchases typically require a use tax payment of $1.455 million based on a 3.0 percent use tax rate; however, City policy currently rebates 1.5 percent of this tax. This package proposes rebating the full 3.0 percent. This would result in a $1.455 savings on project costs. The full rebate requires City Council approval. Table 2 Equipment Use Tax Rebate Item Factor Amount Estimated Equipment Cost $48,500,000 Local Use Tax Charge 3.0% $1,455,000 Less: Manufacturing Rebate 1.5% ($727,500) Less: Council Rebate 1.5% ($727,500) Use Tax Due $0 Source: City of Fort Collins - Economic Health Personal Property Tax Rebate The City will provide a Personal Property Tax Rebate for its portion of the personal property tax only. The rebate on installed equipment will include 50 percent of the Personal Property Tax for related to the expansion for a 10 year period. This equal approximately $69,000 in annual savings or nearly $690,000 over a 10 year period. Any level of Personal Property Tax Rebate requires City Council approval. Table 3 Personal Property Tax Rebate Item Factor Amount Estimated Equipment Cost $48,500,000 Assessed Value 29% $14,065,000 Annual Property Tax Charge 9.797 $137,795 Less: Manufacturing Rebate 50.0% ($68,897) Annual Property Tax Due $68,897 Value of Rebate 10 Years $688,974 Source: City of Fort Collins - Economic Health DRAFT 5 Expedited Development Review The City will commit to an expedited development review and building permit application process for the retrofit of Building 4. The City will assign a project manager to assist in moving the project through review and is committed to working within Avago’s timeline. DRAFT 6 Utility Investments Integrated Design Assistance Program The Utilities Integrated Design Assistance Program (IDAP) offers financial incentives and free technical support to those interested in delivering high-performance buildings that exceed building code requirements for energy performance. Owners, architects, engineers, site designers, maintenance personnel, energy consultants and others work together early in the process to create a design that integrates components to achieve optimal building performance. IDAP is available for new commercial buildings and major renovations. These buildings typically:  Cost less to operate  Reduced environmental impacts  Higher levels of occupant satisfaction Evaporative Loss In 2010, City Council amended City Code to allow Utilities to establish an alternate means for determining wastewater volume for typical applications used in manufacturing processes by some of the City’s industrial and large commercial customers. Examples include cooling towers and other equipment or processes where a measureable reduction in wastewater discharge can be determined and metered. The reduction would generally be established for a specific process rather than facility as a whole. Building Recommisioning Avago is expecting an industrial assessment report that will identify qualifying energy efficiency projects, including replacement of ventilation equipment that will reduce electricity use and overall operating costs. Utilities incentives help bring down the overall project cost, speed up replacement and improve the return on investment. DRAFT 7 Colorado State Office of Economic Development Letter DRAFT 8 This Page Intentionally Left Blank �� April�21,�2011� � � Mike�Freeman� Chief�Financial�Officer� City�of�Fort�Collins� 300�LaPorte�Ave� Fort�Collins,�CO�80522� � Re:��Avago�Technologies� � Dear�Mike:� � Thank� you� for� taking� the� time� to� discuss� the� Avago� Technologies’� project� with� our� staff� Tuesday� afternoon.��Based�on�this�conversation,�which�included�a�$1:$1�local�match,�high�capital�investment,�and� wages�of�124%�of�the�county,�the�Colorado�Economic�Development�Commission’s�(EDC)�Strategic�Fund� may�provide�the�best�opportunity�to�provide�an�incentive�in�support�of�this�project.��The�Strategic�Fund� provides� incentives� for� net� new� full�time� permanent� jobs� (job)� created� in� the� amount� of� $2,000� $5,000/job�dependant�upon�available�funding.��The�jobs�must�be�maintained�for�one�year�and�annual� wages�(excluding�benefits)�for�these�jobs�must�be�at�least�110%�when�compared�to�the�county�average� wage�rate.��Please�note�that�business�decisions�clearly�moving�forward�without�assistance�from�the�EDC� will� not� be� considered� for� funding� if� an� announcement� is�made�prior�to�an�introduction�to�the�EDC.�� Based� on� the� average�wages�provided�by�the�company,� it� appears� that� the� company�may�qualify�for� $2,500�per�job�(with�wages�of�$49,783�or�124%�of�Larimer�County).��Please�see�the�attached�document� for�additional�requirements.�� If�it�is�determined�that�this�program�is�of�interest,�OEDIT�would�need�to�complete�an�introduction�at�the� Colorado�Economic�Development�Commission’s�May�12,�2011�meeting.��Please�let�us�know�if�you�have� any� questions� regarding� this� information.� � We� are� excited� about� the� opportunity� that� this� project� represents�for�Colorado�and�look�forward�to�working�with�you.� � Best�regards,� � � � Alice�Kotrlik� Deputy�Director� � DRAFT This Page Intentionally Left Blank Strategic Fund Purpose The Strategic Fund provides a commitment to businesses that have met certain requirements under the Economic Development Commission’s (EDC) Strategic Fund. Funding Source This program will utilize a number of fund sources. The State’s Role The Colorado Office of Economic Development and International Trade (OEDIT) provides administrative support for the EDC. The EDC has oversight authority for this program. The OEDIT’s Business Development Division Director or Business Finance Staff may present a business introduction to the EDC. The Business Finance Staff will facilitate the application review process, application presentation with structuring recommendations to the EDC, and the contract implementation process. Requirements A business may receive funding consideration if it proposes to create net new full‐time permanent jobs (jobs) in Colorado that are maintained for at least one year. In addition, a business must materially meet the circumstances noted below: • Strong level of local matching commitments ($1:$1 requested) • Potential for economic “spinoff” benefits, such as attracting suppliers, generating tourism/travel activity, high prestige, or a large expansion initiative • Capital Investment, relative to the number of jobs (significant capital investment is $100,000 or > per employee) • Responds to a special local economic event, such as replacing recent lay offs • Inter‐state competitive factors • Headquarters in Colorado • Other unique conditions The business will need to demonstrate feasibility and financial capability along with the ability to create the number of jobs committed. Business decisions clearly moving forward without assistance from the EDC will not be considered for funding if an announcement is made prior to an introduction to the EDC. Businesses already receiving an incentive from the EDC may not receive an incentive from the Strategic Fund for the same net new full‐time permanent jobs. Incentive Tables The following tables reflect potential incentive levels based on the annual average wage rate of a businesses’ committed creation of net new full‐time permanent jobs compared to the county average wage rate (county source: QCEW Annual Tables provided by the Department of Labor and Employment). The annual average wage rate calculation does not include benefits. Enterprise Zone Non-Enterprise Zone Annual Average Wage Rate % $ Incentive / Eligible Job Annual Average Wage Rate % $ Incentive / Eligible Job 100% $2,000 110% $2,500 110% $3,000 130% $3,500 120% $4,000 150% or > $5,000 130% or > $5,000 Contact: Shela Tatro, Manager, Economic Development Commission Email: shela.tatro@state.co.us Secondary Contact: Alice Kotrlik, Deputy Director, Colorado Office of Economic Development & International Trade Email: alice.kotrlik@state.co.us 1625 Broadway, Suite 2700 Denver, CO 80202 Phone: (303) 892‐3840 Website: www.AdvanceColorado.com Contact: Shela Tatro, Manager, Economic Development Commission Email: shela.tatro@state.co.us Secondary Contact: Alice Kotrlik, Deputy Director, Colorado Office of Economic Development & International Trade Email: alice.kotrlik@state.co.us 1625 Broadway, Suite 2700 Denver, CO 80202 Phone: (303) 892‐3840 Website: www.AdvanceColorado.com Businesses that are considering multiple sites within the State will be provided several options based on the Incentive Tables. Additional Consideration Additional consideration may be given to businesses that do not meet the EDC’s minimum 100% annual average wage rate requirement (based on the Department of Labor and Employment’s QCEW Annual Tables) if the following criteria is met: • The business is located in (or will be located in) a designated Enhanced Rural EZ at the time of its introduction to the EDC; • The local community provides rationale to the EDC outlining the businesses’ economic importance to the community; and • The local community requests consideration for use of an alternative wage rate source and provides documentation that supports that the businesses’ annual average wage rate is higher that the annual average wage rate paid by private employer’s within their jurisdiction. Additional consideration may be given to businesses within targeted industries (Renewable Energy, Aerospace, Bioscience, IT) on a case‐by‐case basis. Process Businesses interested in requesting a Strategic Fund commitment should work with their local economic development representative and contact OEDIT’s Business Finance Staff. Once the application process is initiated, OEDIT Staff may complete a site visit. Applications will be reviewed by Business Finance Staff and then presented, with a staff recommendation, to the EDC for its consideration at one of the EDC’s bimonthly meetings. The business to be assisted and the local economic development representative are encouraged to participate in the EDC meeting. Upon receiving all necessary approvals, the Business Finance Staff will begin the contract implementation process. The EDC reserves the right to approve, deny or vary from these guidelines as necessary and appropriate and delay any decision due to budgetary constraints. 1 Company X’s Retrofit Economic Impact Analysis Prepared for the City of Fort Collins Martin Shields, Associate Professor of Economics Michael Marturana, Research Economist Colorado State University 26 April 2011 COMPANY X is planning to expand their current operations by purchasing and installing new computer chip manufacturing equipment and retrofitting their building. This proposed expansion has a $68.2 million budget. In this report we use information provided by the City of Fort Collins to estimate the potential impacts of the proposed project on 1) local employment and income, and 2) city revenue. The analysis below is broken into two parts (I) Construction and (II) Operations. Construction purchases are onetime expenses for building renovations and the purchase of new capital (e.g. computer chip manufacturing equipment) – the City will collect use taxes on these purchases. Once the retrofit is operational, and the new is equipment installed, COMPANY X expects to create 70 FTE operator jobs, with an average wage of $40,000. They also plan to bring an additional 22 FTE positions, with an average wage of $80,900, into the county. Combined, these 92 jobs will have an average compensation of approximately $49,783. By comparison, the average annual pay for a Larimer County job in 2010 was $39,250. I. Construction The construction phase of the COMPANY X’s retrofit contains two categories: (1) the purchase of new equipment and (2) the physical modification of the building itself. 1. New Equipment COMPANY X is expecting to spend $48.5 million on new equipment for their building. The City of Fort Collins will collect just under $1.5 million in use tax on this equipment ($48.5 million x 3.0 percent use tax). City of Fort Collins Use Tax Collection  Planned Capital Expenses: $48.5 million  Use Tax Rate1: 3.0 percent  Fort Collins Tax Collection: $1,455,000 Source: Authors’ calculations using budget information from The City of Fort Collins 1 Manufacturing equipment is exempt from the City’s 0.85 percent use tax increase and is therefore taxed at 3.0 percent. ATTACHMENT 2 2 2. Building Modification To estimate employment impacts for the physical building changes, we use the Larimer County version of the IMPLAN model (www.IMPLAN.com). IMPLAN is a widely used input‐output model that estimates how changes in final demand (i.e., output) ultimately translate into changes in employment (i.e., inputs) as well as associated compensation (wages plus benefits). The IMPLAN modeling system allows users to look at both direct and secondary – or spin‐off – impacts. Direct impacts are those directly attributable to spending on the project itself. Using the budget data from the City, we “shock” the IMPLAN model with $19.7 million in planned expenditures ($14.0 million for the building modification and $5.7 million for equipment installation). The results suggest that the building retrofit and equipment installation will directly support 228 one‐year FTE jobs in Larimer County during the construction phase, with an average annual compensation of $39,900. But the potential impacts are more substantial. The IMPLAN model also allows us to estimate two types of spin‐off impacts. First are the jobs created by purchases from local suppliers. For example, construction activities will involve significant purchases from local building supply companies. Second are jobs supported by direct and spin‐off employee expenditures on everyday purchases, such as housing, dining out and health care. We estimate COMPANY X’s building modification and equipment installation will support 74 spin‐off jobs in Larimer County during the construction phase. These jobs are estimated to earn $38,400 in average yearly compensation. Overall, the retrofit and equipment installation are expected to support a total of 303 one‐year FTE positions in Larimer County during the construction phase – with an average yearly compensation of $39,500. One Year Full Time Equivalent Jobs ($ Average Compensation per Worker)  Planned Expenditures for Building Modifications: $14.0 million  Expected Equipment Installation Cost: $5.7 million  Larimer County Impacts: o Direct: 228 ($39,900) o Spin‐off: 74 ($38,400) o Total: 303 ($39,500) Source: Authors’ calculations using budget information from The City of Fort Collins The City of Fort Collins will see additional revenue during the construction phase. This will be due to use taxes paid on building materials. We do not have information on how much of the $14.0 million construction budget will be subject to the local 3 use tax; therefore, we use the Insight model’s2 default value and assume 60 percent of construction costs will be spent on materials subject to the use tax. The values calculated below assume 60 percent of the $14.0 million construction budget, $8.4 million ($14.0 million x 60 percent), will be spent on materials subject to the use tax. These values also assume that the full $8.4 million will be spent in the City of Fort Collins, therefore the City is expected to receive $323,400 ($8.4 million x 3.85 percent) in use tax revenue. City of Fort Collins Use Tax Collection  Planned Construction Expenses: $14.0 million  Construction Materials Subject to Use Tax: 60 percent*  Expenses Subject to the Use Tax: $8.4 million  Use Tax Rate3: 3.85 percent  Fort Collins Use Tax Collection on Construction: $323,400 *Default value taken from the Insight model Source: Authors’ calculations using budget information from The City of Fort Collins and Insight assumptions II. Operations Per the City of Fort Collins, an average of 92 full‐time positions (with an average compensation of $49,783) will be created after the retrofit is completed and the new equipment is operational. Using the IMPLAN model we estimate that these jobs will support an additional 155 spin‐off positions in Larimer County. The average yearly compensation of these spin‐off jobs is expected to be $48,900. Combining the jobs from COMPANY X and spin‐off impacts, we estimate that 247 jobs will be supported in Larimer County, with an average compensation of $49,200. One Year Full Time Equivalent Jobs ($ Average Compensation per Worker)  Larimer County: o Direct: 92 ($49,800) o Spin‐off: 155 ($48,900) o Total: 247 ($49,200) Source: Authors’ calculations using IMPLAN based on the hiring forecast for COMPANY X from the City of Fort Collins Fort Collins will also collect tax revenue from these employees and business property tax. We calculated the following figures using the Insight model, assuming a 2 percent wage growth rate, with a 10‐year outlook. We estimate only those tax impacts from the positions within COMPANY X (i.e., direct impacts). The figures below detail additional tax revenue to the City. 2 The Insight model is a fiscal impact model originally developed for the state by Arthur Andersen. 3 As of 1 January 2011, the use tax rate in Fort Collins increased to 3.85 percent. 4 City of Fort Collins Sales and Property Tax Collection  Employee Wage (Year 1): $49,783  Wage Growth Rate: 2 percent  Income Spent on Retail Sales: 44 percent*  Retail Sales Purchases Made in the City: 60 percent*  Employees living within the City4: 44 percent  Cumulative Estimate: 10 years  Fort Collins Tax Collection o City Sales Tax Revenue Supported by Retail Sales from COMPANY X’s Employees: $554,050 ($55,405 per year) o Tax Revenue from Personal Property Taxes from COMPANY X’s Operations: $413,384 (41,338 per year) *Default value taken from the Insight model Source: Authors’ calculations using the Insight model 4 According to the US Census Bureau, 44 percent of Fort Collins’ workers in primary jobs live in the city. 1 1 AVAGO Technologies Building 4 Wafer Fabrication Expansion Presented By: Josh Birks 2 Project Overview • Significant Expansion of Wafer Fabrication for AVAGO • High Tech Manufacturing jobs (significant contraction since 2001/2002 in this industry sub-sector) • Competing against Taiwan (current location) and Italy • Preliminary selection of Fort Collins –Low Power Cost – Progressive Utilities – Proposed Business Investment Agreement ATTACHMENT 3 2 3 Project Details • $17 Million retrofit of existing Building 4 (10,000 SF) • $57.5 Million wafer fabrication equipment • $5.7 Million equipment installation • An additional 92 jobs – 8 Engineers @ $100,000 annually – 14 Technicians @ $70,000 annually – 70 Operators @ $40,000 annually • Bring high tech manufacturing jobs to Fort Collins 4 Project Timeline • April 22, 2011 – Assistance package offer, subject to City Council Action • Early June – AVAGO indicated Fort Collins preference • June 16, 2011 – Colorado Economic Development Commission reviews project; thumbs up • Week of June 20th schedule for Council Finance and City Council • July 19th – City Council considers resolution authorizing the Business Investment Agreement • August 2011 – October 2012 – AVAGO Construction/Hiring • October 2012 – Wafer Fabrication fully operational 3 5 Economic Impact Analysis • $1.725 Million in use tax revenue (offset) • $1.38 Million in personal property tax (partially offset) • Construction ($17 million retrofit and $5.7 million equipment install) = 228 direct jobs during 15 month construction period and 74 spin-off jobs • Operations (92 new primary jobs) = 155 spin-off secondary jobs at an average wage of $48,900 • Operations (92 new primary jobs) = $554,000 in sales tax revenue and $413,000 in property tax revenue 6 Complete Assistance Package • Equipment Use Tax: $1.725 Million rebate • Equipment Personal Property Tax: $817,000 rebate • Integrated Design Assistance: $20,000 value • Building re-commissioning: $150,000 value • Evaporative Cooling Credit: $200,000 value • Colorado Economic Development Commission Strategic Fund: $230,000 • Colorado FIRST Training Funds: $73,600 4 7 Net Impact to City 1 Current City Code allows for a rebate of 1.5 percent of the 3.0 percent use tax. The proposed Business Investment Agreement increases the rebate to the full 3.0 percent; therefore the incentive provides a value of $727,500 above current code. Revenue Estimated Revenue Rebate/ Incentive Net Revenue One-Time Items Construction Use Tax $323,000 $0 $323,000 Equipment Use Tax 1 $1,725,000 $1,725,000 $0 Integrated Design Assistance $0 $20,000 ($20,000) Building Re-commissioning $0 $150,000 ($150,000) Subtotal $2,048,000 $1,895,000 $153,000 On-Going Items (Cumulative over 10 Years) Equipment Personal Property Tax $1,630,000 $817,000 $817,000 Spin Off Sales Tax $554,000 $0 $554,000 Spin Off Property Tax $413,000 $0 $413,000 Evaporative Cooling Credit $0 $200,000 ($200,000) Subtotal $2,597,000 $1,017,000 $1,602,000 Total $4,645,000 $2,912,000 $1,755,000 RESOLUTION 2011-066 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING AN AGREEMENT BETWEEN THE CITY AND AVAGO TECHNOLOGIES US, INC. TO PROVIDE BUSINESS INVESTMENT ASSISTANCE FOR THE BUILDING 4 RETROFIT WHEREAS, Avago Technologies US, Inc. (“Avago”) will be modifying a building located on its business campus by retrofitting approximately 10,000 square feet for use as a wafer fabrication facility (the “Project”); and WHEREAS, the Project will enable the City to better maintain and attract high-paying primary jobs in the City; and WHEREAS, Avago estimates that it will invest over $80.2 million in the Project; and WHEREAS, Avago anticipates that the Project will create approximately 92 jobs paying an annual average salary of $49,800, which would provide significant economic development benefit to the community at large; and WHEREAS, according to preliminary estimates, Avago will also pay City fees and taxes related to the construction of the Project in the approximate amount of $448,000; and WHEREAS, City staff has been working with Avago to discuss ways in which the City can provide financial assistance to the Project that will enhance the likelihood that the Project will be pursued; and WHEREAS, City staff has prepared for City Council's consideration a proposed agreement between the City and Avago (the “Agreement”), which Agreement sets forth the terms and conditions upon which financial assistance will be provided to Avago by the City and is attached as Exhibit A; and WHEREAS, the Project is anticipated to increase annual property tax revenue for the City by approximately $138,000 over the ten-year term of the Agreement; and WHEREAS, the City Council has determined that providing financial assistance to the Project is in the best interests of the City and will serve the important public purposes of increasing employment in the City, stabilizing and improving the long term tax base of the City and providing additional economic development benefits to the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby finds that providing financial assistance to Avago, upon the terms and conditions contained in the Agreement, is in the best interests of the City and serves the important public purposes of increasing employment within the City, stabilizing and improving the long-term tax base of the City, and promoting economic development within the City. Section 2. That the Agreement, in substantially the form contained in Exhibit A attached hereto and incorporated herein by this reference, is hereby approved by the City Council, subject to such modifications as may be deemed necessary by the City Manager, in consultation with the City Attorney, in order to further the purposes of the Agreement. Section 3. That the City Manager is hereby authorized to execute the Agreement on behalf of the City. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk BUSINESS INVESTMENT AGREEMENT FOR ECONOMIC DEVELOPMENT RELATED TO AVAGO TECHNOLOGIES BUILDING 4 RETROFIT THIS AGREEMENT is entered into this day of , 2011, by and between the City of Fort Collins, Colorado, a home rule municipal corporation (the “City”), and AVAGO Technologies US Inc., , a Delaware Corporation (“AVAGO”). RECITALS WHEREAS, AVAGO is the owner of property located at 4380 Ziegler Road in the City that is more fully described in Exhibit A and incorporated herein by this reference (the “Property”); and WHEREAS, AVAGO has committed to redeveloping the Property by retrofitting one of the buildings on the Property to include a 10,000 square foot expansion wafer fabrication facility within that building (the “Project”); and WHEREAS, the building on the Property to be retrofitted is known as Building 4 and is identified on Exhibit A as BLDG 4; and WHEREAS, the Project will consist of a construction expansion and remodel in addition to an investment in equipment; and WHEREAS, Project will enable the City to better maintain its place as the regional retail and business center of Northern Colorado in the face of competing facilities that could otherwise draw significant employment opportunities and retail sales revenues out of the Fort Collins community; and WHEREAS, AVAGO estimates that the total investment in the Project will total more than $80 million (including both construction and equipment purchases) and create approximately 92 jobs earning salaries ranging from $40,000 to $100,000 annually, and that will provide significant economic benefit to the community at large; and WHEREAS, the City’s Economic Health Office has concluded that the Project will generate a substantial increase in tax revenue for the City consisting of approximately (i) $323,000 in construction use tax; and (ii) $81,500 annually in new personal property tax in the first ten years and $163,000 in new property tax in the subsequent years; and WHEREAS, according to the Economic Health Office, the Project will prevent high‐ paying primary jobs from leaving Fort Collins to other sites in Northern Colorado and elsewhere; and 2 WHEREAS, according to the Economic Health Office, the Project will bring a type of chip manufacturing to the City that has primarily occurred off‐shore; and WHEREAS, AVAGO has requested that the City enter into a business investment agreement for economic development; and WHEREAS, based on AVAGO’s representations that the Project will (i) be a high quality wafer fabrication facility that will be owned and operated by AVAGO, (ii) generate new primary jobs, and (iii) have a reasonable expectation of long‐term operations in the City; and WHEREAS, in order to encourage the Project, the City Council has determined, through the adoption of Resolution 2011‐___ on ___________________, 2011, that it is in the best interests of the City to provide a package of financial assistance for the Project consisting of two components: the rebate of new use tax revenues generated by the Project and the rebate of personal property tax on new Eligible Equipment installed in Building 4 as part of the Project; and WHEREAS, the City Council has further determined, through the adoption of Resolution 2011‐___ that providing the financial assistance described in this Agreement to AVAGO will serve the important public purposes of increasing employment in the City, stabilizing and improving the long term tax base of the City, and providing additional economic development benefits to the City. NOW, THEREFORE, in consideration of the promises contained in this Agreement, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows. SECTION 1. DEFINITIONS Application for Use Tax Rebate means the application process for a use tax rebate using City approved forms consistent with the form attached as Exhibit B. AVAGO means AVAGO Technologies US Inc., a Delaware Corporation. Building 4 means that building located at 4380 Ziegler Road, Building 4. Certificate of Occupancy has the same meaning as set forth in the City of Fort Collins Land Use Code. Charter means the Home Rule Charter of the City. City means the City of Fort Collins, Colorado, a home rule municipal corporation. Code means the Code of the City of Fort Collins. 3 County Assessor means the Larimer County Assessor. Development Agreement means that agreement required when plans, profiles and specification have been approved by the City pursuant to the Land Use Code. Eligible Equipment means new manufacturing equipment and electronic equipment installed no later than December 31, 2012, and that is necessary for the construction and operation of the Project. Land Use Code means the Fort Collins Land Use Code. Project means AVAGO’s retrofit of existing Building 4 by 10,000 square feet for use as a wafer fabrication facility and other improvements that provide significant energy savings and represented on page 2 of Exhibit A as Area of Work. Wafer Fabrication Facility and Facility mean a 10,000 square foot wafer fabrication facility built in Building 4 as a result of the Project. SECTION 2. REPRESENTATIONS AND COVENANTS 2.1. The City represents and covenants that: 2.1.1. The City is a home rule municipal corporation of the State of Colorado. 2.1.2. There is no litigation or administrative proceeding pending or, to the knowledge of the City, threatened, seeking to question the authority of the City to enter into or perform this Agreement. 2.1.3. The City reasonably believes that it has the authority, and assuming such authority, the City Council has properly and regularly authorized the City to enter into the Agreement. 2.2. AVAGO represents and covenants that: 2.2.1. AVAGO is a corporation, duly organized and validly existing under the laws of the State of Colorado, is authorized to do business in the State of Colorado, is not in violation of any provisions of its organizational documents or, to its knowledge, the laws of the State of Colorado. 2.2.2. AVAGO has the power and legal right to enter into the Agreement and has duly authorized the execution, delivery and performance of this Agreement by proper action, which Agreement will be enforceable against AVAGO in accordance with its terms. 4 2.2.3. The consummation of transaction contemplated by this Agreement will not violate any provision of the governing documents of AVAGO or, to its knowledge, constitute a default or result in the breach of any term or provision of any contract or agreement to which AVAGO is a party or by which it is bound. 2.2.4. To its knowledge, there is no litigation, proceeding, or investigation contesting the power of authority of AVAGO with respect to the Project or this Agreement, and AVAGO is unaware of that any such litigation, proceeding, or investigation has been threatened. 2.2.5. AVAGO will submit a Site Plan to the City in accordance with all applicable procedures set forth in the Land Use Code. AVAGO will redevelop the Property with appropriate care and diligence and cause the Project to be constructed in a manner consistent with the Site Plan, as approved in accordance with the Land Use Code. 2.2.6. In redeveloping the Property and Building 4, AVAGO will comply with all applicable zoning and land use requirements and other applicable federal, state, county, and City statutes, rules, regulations and ordinances. 2.2.7. AVAGO intends to operate, or cause to operate, Building 4 as a high quality wafer fabrication facility for a period of not less than ten years following the earlier date of the issuance of a Certificate of Occupancy or December 31, 2012. 2.2.8. AVAGO will cooperate with the City in taking reasonable actions to defend against any litigation brought by a third party concerning the Project or this Agreement. SECTION 3. REIMBURSEMENT OF USE TAX REVENUES 3.1. The City will collect the Use Tax Revenues from AVAGO’s initial Eligible Equipment investment associated with the Project and retrofit of Building 4 in a manner consistent with the City’s overall efforts to collect use tax revenues. Nothing in this Agreement will be construed as imposing upon the City any obligation to exert special efforts in the collection of these revenues. 5 3.2. To the extent permitted by the constitution and laws of the State of Colorado and the Charter, the City will rebate to AVAGO a portion of the Use Tax Revenues under the terms and conditions set forth in paragraph 3.3.1, 3.3.2, and 3.3.3 below. If, as presently contemplated by the parties, the contingencies described in those paragraphs are satisfied, the total amount of Use Tax Revenues to be paid by the City will not exceed One Million Seven Hundred Twenty‐ Five Thousand Dollars ($1,725,000) (the “Maximum Use Tax Reimbursement”) for the period beginning with the execution of this Agreement and ending on December 31, 2013. The Application for the Use Tax Rebate on Eligible Equipment shall be filed between August 1 and December 31 of each year for which a rebate eligible. 3.3. The payments of Use Tax Revenues referenced in paragraph 3.2 above will be made by the City to AVAGO after the City issues a certificate of occupancy for the Project and AVAGO has actually generated and remitted to the City use tax revenues for the minimum periods of time specified below. If either of these contingencies has not been satisfied on or before the dates specified, the payments will not be made. 3.3.1. A payment will be due and payable on March 31, 2012 (the “First Payment”) based upon an Application for Use Tax Rebate made by AVAGO for use tax revenues remitted by AVAGO to the City between the execution of this Agreement and December 31, 2011, provided, however that if AVAGO has not remitted use tax revenues to the City during this period, the First Payment will not be made. 3.3.2. A payment will be due and payable on March 31, 2013 (the “Second Payment”) based upon an Application for Use Tax Rebate made by AVAGO for use tax revenues remitted by AVAGO to the City between January 1, 2012 and December 31, 2012, provided, however that if AVAGO has not remitted use tax revenues to the City during this period, the Second Payment will not be made. 3.3.3. A payment will be due and payable on March 31, 2014 (the “Final Payment”) based upon an Application for Use Tax Rebate made by AVAGO for use tax revenues remitted by AVAGO to the City between January 1, 2013 and December 31, 2013, provided, however that (i) the equipment for which the rebate is requested will have been delivered to the Property no later than December 31, 2012; (2) that this rebate request for that equipment is reduced by any rebate already returned to Avago or waived due the failure to remit use tax as required by 3.3.2; and (3) if AVAGO has not remitted use tax revenues to the City during this period, the Final Payment will not be made. 3.4. The City, in its sole discretion, may pre‐pay any amount of Use Tax Revenues without prepayment penalties. 6 3.5. The City’s payment obligation under this Section shall be limited to the amount of the Use Tax Revenues indicated in paragraph 3.2 above. AVAGO agrees to assume the entire risk that the Project will be unable to begin and remit use tax on new manufacturing equipment invested in the Project by December 31, 2013 to qualify for the Maximum Use Tax Reimbursement. 3.6. Interest earned, if any, on Use Tax Revenues held by the City until payment is made to AVAGO will belong to the City. 3.7. Notwithstanding the Maximum Use Tax Reimbursement, the City will not be required to pay to AVAGO any Use Tax Revenues greater than that actually collected and remitted to the City. AVAGO acknowledges that the generation of Use Tax Revenues is entirely dependent on AVAGO’s investment of Eligible Equipment in the Project and Building 4 and agrees that the City is in no way responsible for the amount of Use Tax Revenue actually collected. 3.8. The parties agree that the obligations of the City do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation or provision. The obligations of the City for payment of the Use Tax Revenues under this Agreement are from year to year only and do not constitute a mandatory payment obligation of the City in any fiscal year beyond the present fiscal year. This Agreement does not directly or indirectly obligate the City to make any payments of Use Tax Revenues beyond those appropriated for any fiscal year in which this Agreement is in effect. The City Manager (or any other officer or employee at the time charged with the responsibility of formulating budget proposals) is hereby directed to include in the budget proposals and appropriation ordinances submitted to the City Council, in each year prior to expiration of this Agreement, amounts sufficient to meet its obligations hereunder, but only if it receives such amounts in the form of Use Tax Revenues, it being the intent, however, that the decision as to whether to appropriate such amounts is in the discretion of the City Council. SECTION 4. REIMBURSEMENT OF PERSONAL PROPERTY TAX REVENUES 4.1. The City shall collect the Personal Property Tax Revenues from the Project in a manner consistent with the City’s overall efforts to collect personal property tax revenues. Nothing in this Agreement will be construed as imposing upon the City any obligation to exert special efforts in the collection of these revenues. 4.2. To the extent permitted by the constitution and laws of the State of Colorado and the Charter, the City will pay AVAGO a portion of the Personal Property Tax Revenues under the terms and conditions set forth in paragraph 4.3 below. If, as presently contemplated by the parties, the contingencies described in paragraph 4.3 are satisfied as to each of the ten payments provided for therein, the total amount of Personal Property Tax Revenues to be paid by the City will not exceed Eight Hundred Seventeen Thousand Dollars ($817,000) and the annual payments will not exceed Eighty One Thousand Seven Hundred Dollars ($81,700). 7 4.3. The payments of Personal Property Tax Revenues referenced in paragraph 4.2 above will be made by the City to AVAGO as follows: 4.3.1. The assessed personal property value certified by the County Assessor for tax year 2010 will be the baseline measurement (“Baseline Personal Property Tax”). 4.3.2. For ten consecutive years, beginning with tax year 2011, fifty percent of any increase in the assessed personal property certified by the County Assessor for the then current year over the Baseline Personal Property Tax will be reimbursed by the City to AVAGO. 4.3.3. The payments contemplated by this Section will be paid by December 31 of each year, starting in 2012, for the previous tax year. 4.3.4. The Personal Property Tax Revenues will only be eligible for reimbursement as described above if AVAGO continuously operates Building 4 as an Wafer Fabrication Facility as described in this Agreement and has actually generated and remitted to the City personal property tax revenues for Building 4. 4.4. The parties agree that no less than twice a year the City may require AVAGO to make available to the City all documents that verify the purchase of personal property installed in Building 4, including the County Assessor’s certification of value. The City agrees that such documents constitute privileged information and confidential financial data within the meaning of the Colorado Open Records Act, and, to the extent permitted by law, the City shall deny the right of inspection of such documents to any third party without the consent of AVAGO. 4.5. The City, in its sole discretion, may pre‐pay any amount of Personal Property Tax Revenues without prepayment penalties. 4.6. The City’s payment obligation under this Section shall be limited to the amount of the Personal Property Tax Revenues indicated above. AVAGO agrees to assume the entire risk that the Project will be unable to begin and maintain operations at the levels sufficient to generate the level of personal property tax identified above and that one or more payments will be forfeited unless the requirements of this Agreement have been satisfied. 4.7. Interest earned, if any, on Personal Property Tax Revenues held by the City until payment is made to AVAGO will belong to the City. 8 4.8. The parties agree that the obligations of the City hereunder do not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation or provision. The obligations of the City for payment of the Personal Property Tax Revenues under this Agreement are from year to year only and do not constitute a mandatory payment obligation of the City in any fiscal year beyond the present fiscal year. This Agreement does not directly or indirectly obligate the City to make any payments of Personal Property Tax Revenues beyond those appropriated for any fiscal year in which this Agreement is in effect. The City Manager (or any other officer or employee at the time charged with the responsibility of formulating budget proposals) is hereby directed to include in the budget proposals and appropriation ordinances submitted to the City Council, in each year prior to expiration of this Agreement, amounts sufficient to meet its obligations hereunder, but only if it receives such amounts in the form of Personal Property Tax Revenues, it being the intent, however, that the decision as to whether to appropriate such amounts is in the discretion of the City Council. SECTION 5. CITY’S RIGHT TO WITHHOLD OR OFFSET PAYMENTS 5.1. AVAGO agrees to comply with all City codes, ordinances, resolutions and regulations, and to pay all taxes, fees and expenses due to the City under the Code, the City’s Land Use Code or this Agreement, subject to any variances or modifications of standards that may be granted to AVAGO under the Code or the Cityʹs Land Use Code, and to comply with the terms and conditions of the Development Agreement. If AVAGO is in violation of the provisions of the Code, the City’s Land Use Code, this Agreement or the Development Agreement, the City will provide written notice to the Developer of such violation, and allow the AVAGO a period of ninety (90) days in which to cure such violation. The City may thereafter withhold any payments of Use Tax Revenues or Personal Property Tax Revenues due to AVAGO under this Agreement until such time as the violations are cured or abated. 5.2. In addition to the foregoing, the City, at its option, may, after the notice and after the expiration of the cure period if such violations have not been cured or abated, apply any Use Tax Revenues or Personal Property Tax Revenues that would otherwise be payable to AVAGO under this Agreement to any unpaid amounts theretofore due and payable to the City by AVAGO under this Agreement, the Code, the Land Use Code, or the Development Agreement, in which event AVAGO will be credited with the full amount of any such payments. SECTION 6. RECORDS AND AUDITS 6.1. AVAGO must keep true, accurate and complete records of all equipment installed and operated in Building 4, which records will be available for inspection by the City without unreasonable delay and without expense. AVAGO agrees that the City has the right, through its duly authorized agents or representatives, to examine all such records upon ten (10) days notice at all reasonable times, for the purpose of determining the accuracy and propriety of the financial representations which have been made by AVAGO. This right of review terminates 9 upon termination of the later of the Cityʹs payments of Use Tax Revenues as provided in Section 3 of this Agreement and the payments of Personal Property Tax Revenues as provided in Section 4 of this Agreement. In the event that the City becomes the custodian of any such records which may contain trade secrets or confidential or proprietary information, and are so marked, the City will, to the extent permitted by law, protect the confidentiality of such information and deny any request for inspection of such records. 6.2. The City will keep, or cause to be kept, true, accurate and complete records of all calculations relating to the Sales Tax Revenues; the Personal Property Tax Revenues; interest credited to these amounts; and such other calculations, allocations and payments required by this Agreement, and will make such records available for inspection by AVAGO upon ten (10) days notice at all reasonable times, to the extent permitted by law. SECTION 7. RESTRICTIONS ON ASSIGNMENT 7.1. The qualifications of AVAGO are of particular concern to the City. Therefore, no voluntary or involuntary successor in interest of AVAGO shall acquire any rights or powers under this Agreement except as expressly set forth herein and AVAGO will not assign all or any part of this Agreement except as follows: 7.1.1. with the prior written approval of the City Council; or 7.1.2. as collateral to a lender in connection with the financing of the Project; or 7.1.3. after the City’s payment obligations as described in Sections 3 and 4 of this Agreement have terminated. 7.2. AVAGO must notify the City within fifteen (15) days of any and all changes whatsoever in the identity of the parties in control of AVAGO, or the degree thereof, of which it or any of its officers have been notified or otherwise have knowledge or information. SECTION 8. EVENTS OF DEFAULT; REMEDIES 8.1. Default or an event of default by AVAGO mean one or more of the following events: 8.1.1. Any representation or warranty made in this Agreement by AVAGO was materially inaccurate when made or shall prove to be materially inaccurate; 8.1.2. AVAGO assigns or attempts to assign this Agreement in violation of Section 7 of this Agreement; or 10 8.1.3. AVAGO fails to substantially observe or perform any other material covenant, obligation or agreement required under this Agreement. 8.2. Upon the occurrence of any event of default, the City shall provide written notice to AVAGO. AVAGO must immediately proceed to cure or remedy such default, and in any event, such default shall be cured within thirty (30) days after receipt of the notice, or such longer time as the City and AVAGO agree in writing. Upon the failure of AVAGO to so cure any such default, the City shall have all remedies available to it, in law or in equity, including, but not limited to, specific performance. 8.3. Default or an event of default by the City shall mean one or more of the following events: 8.3.1. Any representation or warranty made in this Agreement by the City was materially inaccurate when made or shall prove to be materially inaccurate; 8.3.2. The City fails to pay the proceeds of the Sales Tax Revenues or the Personal Property Tax Revenues as and when provided in this Agreement (except to the extent such failure is the result of the action, inaction or failure of AVAGO to document liability for, collect, account for or pay the Sales Tax Revenues or Personal Property Tax Revenues). 8.3.3. The City fails to pay or perform any other material covenant, obligation or agreement required of it under this Agreement. 8.4. Upon the occurrence of any event of default, AVAGO will provide written notice to the City. The City must immediately proceed to cure or remedy such default, and in any event, such default shall be cured within thirty (30) days after receipt of the notice, or such longer time as the City and AVAGO agree in writing. Upon the failure of the City to so cure any such default, AVAGO will have all remedies available to it, in law or in equity, including, but not limited to, specific performance. SECTION 9. NOTICES 9.1. All notices required or permitted hereunder shall be in writing and shall be effective upon mailing, deposited in the United States Mail, postage prepaid, and addressed to the intended recipient as follows. Any party can change its address by written notice to the other given in accordance with this paragraph. 9.1.1. City of Fort Collins: City of Fort Collins Attention: City Manager 300 LaPorte Avenue, PO Box 580 Fort Collins, CO 80522‐0580 9.1.2. With a copy to: City of Fort Collins 11 Attention: City Attorney 300 LaPorte Avenue, PO Box 580 Fort Collins, CO 80522‐0580 9.1.3. AVAGO: AVAGO Technologies Attention: General Counsel 350 W. Trimble Road San Jose, California 95131 9.1.4. With a copy to: Steve Wolley AVAGO Technologies 4380 Ziegler Rd. Fort Collins, CO 80525 SECTION 10. MISCELLANEOUS 10.1. Binding Effect. This Agreement inures to the benefit of and is binding upon the City and AVAGO and AVAGO’s assignees which are permitted pursuant to Section 7 of this Agreement. 10.2. No Third Party Beneficiaries. The City is not obligated or liable under the terms of this Agreement to any person or entity not a party hereto except any assignee permitted pursuant to Section 7 of this Agreement. Further, the City is not bound by any contracts or conditions that AVAGO may negotiate with third parties related to the Project. 10.3. Interpretation, Jurisdiction and Venue. This Agreement is being executed and delivered and is intended to be performed in the State of Colorado, and the laws of Colorado govern the validity, construction, enforcement and interpretation of this Agreement. Exclusive jurisdiction and venue for resolution of any dispute arising hereunder will be in the Larimer County, Colorado District Court. 10.4. Entire Agreement. This Agreement embodies the whole agreement of the parties concerning financial assistance by the City the Project. Although it is anticipated there will be at least one other agreement governing general development issues related to the Project, there are no promises, terms, conditions, or obligations other than those contained herein exist with respect to the financial assistance package. This Agreement supersedes all provisions, communications, representations, or agreement, either verbal or written, between the parties with respect to the financial assistance package. 12 10.5. Waiver of Breach. A written waiver by either party to this Agreement of the breach of any term or provision of this Agreement will not operate or be construed as a waiver or any subsequent breach by another party. 10.6. Article and Section Captions. The captions of the articles and sections of this Agreement are set forth only for the convenience and reference of the parties and are not intended in any way to define, limit, or describe the scope or intent of this Agreement. 10.7. City and AVAGO Not Partners. Notwithstanding any language in this Agreement, the City is not a member, partner, or joint venturer of AVAGO, and the City shall not be responsible for any debt or liability of AVAGO or its contractors or agents. AVAGO is not responsible for any debt or liability of the City or their contractors or agents. 10.8. Severability. If any portion or portions of this Agreement are determined to be illegal or unenforceable, the remainder of this Agreement will not be affected thereby and will remain in full force and effect as if such illegal or unenforceable portion or portions did not exist. If all or any portion of the payments required by the terms of this Agreement are determined, by a court of competent jurisdiction in a final non‐appealable judgment, to be contrary to public policy or otherwise precluded, and if the decision of such court clearly indicates how the payments may be made differently and in a manner that is legal, valid and enforceable, then the Parties will utilize their reasonable, best, good faith efforts to promptly restructure and/or amend this Agreement in accordance with such court decision, or to enter into a new agreement, to assure, to the extent legally permissible, that all payments are made to AVAGO as contemplated by this Agreement. 10.9. Originals. This Agreement may be simultaneously executed in any number of counterparts, each of which will be deemed original but all of which constitute one and the same Agreement. 10.10. Joint Draft. The parties agree they drafted this Agreement jointly with each having the advice of legal counsel and an equal opportunity to contribute to its content. IN WITNESS WHEREOF, the City and AVAGO have executed this Agreement as of the date first above written. Signatures on following page. 13 CITY OF FORT COLLINS, COLORADO a municipal corporation By: Darin A. Atteberry, City Manager Attest: City Clerk Approved as to form: Assistant City Attorney AVAGO TECHNOLOGIES US Inc. a Delaware corporation By: Name and title State of ) )ss. County of ) The foregoing was acknowledged before me this _________ day of 2011, by as AVAGO Technologies US Inc., a Delaware corporation. Witness my hand and official seal. My commission expires: Notary Public 14 EXHIBIT A FORT COLLINS COLORADO BUILDING 4 ICBD GENESIS IV T C H N O L O I 15 City of Fort Collins Economic Development - Use Tax Rebate Application 2010 Company Name Mailing Address Contact Person Project Information: Date Project Operations began in Fort Collins Briefly describe project operations? 2008 property tax valuation 2009 property tax valuation Employee Information: Rebate Information: Signature of Taxpayer Title Date A claim by an agent must be accompanied by power of attorney. Number of full time equivalent employees as of January 1, 2010 __________________ Median Annual Wage ______________ Number of full time equivalent employees as of December 31, 2010 _______________ Median Annual Wage ______________ Number of temp., seasonal & contract employees as of 12/31/10 ____________ Median Annual Wage ______________ I hereby authorize the City to review and consider sales and use tax records, vendor records, contract and other information available regarding the company's eligibility for a rebate under this program. I further authorize the City to release to the public information contained in this application, as well as information regarding any rebates issued to the company under this rebate program. I declare under penalty of perjury that this claim (including any accompanying schedules and statements) has been examined by me and to the best of my knowledge and belief is true and made in good faith for the stated purpose. Further, I represent and warrant that I have the necessary authority to execute this application on behalf of the company, and to make the above certifications, authorizations, and declaration. I certify that the company requesting this rebate is in compliance with all Federal, State and local laws and regulations for the manufacturing facility located in Fort Collins. I also certify that the company is current with all City of Fort Collins contractual, payment and sales and use tax obligations. 2009 personal property tax valuation _____________________ Square footage of Project facility _________________________ The following information is mandatory for the rebate process. All financial information contained in this application will be confidential. Who is your natural gas provider? ___________________________ Annual Gas Consumption ______________ Purchase price of Eligible Equipment purchased in 2010: __________________________________ Amount of rebate requested: ____________________________________ EXHIBIT B Phone Number __________________________ Fort Collins License Number ______________ 2008 personal property tax valuation _____________________ Square footage of entire Fort Collins facility _________________________________ 16 OTHER INFORMATION You must provide a list of the Eligible Equipment purchased that includes the following: 1. Invoice number 2. Invoice date 3. Vendor name 4. Description of machinery purchased 5. Intended use of the machinery 6. Date the use tax was paid to the City of Fort Collins 7. Purchase price of the equipment 8. Amount of purchase subject to Fort Collins tax 9. Amount of Fort Collins use tax paid You are not required to submit copies of the invoices for which the rebate is requested. However, in the event that there are questions regarding the eligibility of certain equipment, supporting documentation, including invoices, will be required. Submit applications and list of equipment purchased to: City of Fort Collins Financial Services P.O. Box 580 Fort Collins, CO 80522-0580 For specific questions regarding the rebate program or general sales and use tax questions, call the Sales Tax Office at (970) 221-6780. Application may be submitted between August 31, 2010 and December 31, 2010 DATE: July 19, 2011 STAFF: Brian Janonis AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 28 SUBJECT First Reading of Ordinance No. 098, 2011, Repealing and Reenacting Division 14, Article III of Chapter 2 of the Code of the City of Fort Collins Dissolving the Electric Board and Creating a New Energy Board. EXECUTIVE SUMMARY Decisions Council makes today can have a significant impact on our community’s ability to respond to changing conditions in the future. Council needs visionary and innovative advice regarding the community’s energy future as it relates to the Plan Fort Collins goals for a sustainable community. Council is in need of advice from subject matter experts not just in the electric engineering field but also other experts who are knowledgeable about such things as to how the electrification of transportation impacts carbon emissions and energy consumption. To this end, an Energy Board is being created to replace the Electric Board. The purpose of the Energy Board will be to take a systems approach to the City’s energy future looking out 10 years and beyond and to advise Council on such matters. BACKGROUND / DISCUSSION The Electric Board was created by Council in 1991 during a period of stability and has served admirably. However, the electric utility industry is rapidly changing as new technologies become available. These technologies will empower customers to make better decisions regarding their energy usage, allow customers to become part of the utility supply chain through distributed generation and storage, and change market paradigms for the purchase and sale of energy. Electricity is simply one form of energy. When one looks at the energy system as a whole, we begin to see the relationships and interconnectedness between transportation, home energy usage, solid waste, industry, agriculture etc. Decisions Council makes today can have a significant impact on our community’s ability to respond to changing conditions in the future. Council needs visionary and innovative advice regarding the community’s energy future as it relates to Council adopted Plan Fort Collins goals for a sustainable community, the Fort Collins Climate Action Plan, Energy Policy, and Green Building Program. To this end, this Board should be taking a systems approach to our energy future looking out 10 years and beyond. Policy related to energy use and generation in the City of Fort Collins is complex and involves multiple City Service Areas. Energy, and its associated opportunities (economic and non-economic) and impacts (including carbon emissions), are much broader than electric power generation and distribution. Citizen involvement and stakeholder expertise provide valuable technical review, community perspective and third party oversight to inform City Council’s decisions on energy related topics. The Council adopted Plan Fort Collins (2011), Climate Action Plan (2008), Energy Policy (2009), and Green Building Code (2011) provide the framework for charting the City’s energy future. The proposed Board would advise the City Council in an integrated way regarding these policies and overall energy and carbon matters. Going forward, it is very likely that the City will be operating in a carbon constrained environment; that is to say, carbon emissions will be limited by law and regulation. This has important implications for the community since the single largest source of City-related carbon emissions is electric energy generation. The second largest is transportation. Interestingly, there is an increasing interdependence between electricity and transportation as we implement Smart Grid/Fort ZED and as we transition from petroleum-based to electric vehicles. The impacts of these changes and trends on the City’s electric system and carbon emissions will require rigorous analysis and accounting procedures. Additionally, it is critical that we consider their energy and carbon impacts. Furthermore, carbon regulation will have significant impacts on the operation and rates of the City’s Electric Utility and our wholesale power supplier. July 19, 2011 -2- ITEM 28 Thus, the functions of the Energy Board, in replacement of the current Electric Board, will be: (1) To advise the City Council and staff regarding development and implementation of the City’s energy policy; (2) To advise the City Council and staff and recommend policies regarding energy conservation and efficiency, carbon emissions reduction and expanding use of renewable energy in developing City utilities and transportation projects and the built environment within the City; (3) To advise the City Council and staff regarding the alignment of energy programs and policies with City, ratepayer and community values and service delivery expectations; (4) To advise the City Council and staff regarding the recommendations for improvements to City energy systems; (5) To coordinate with other City boards and commissions regarding energy issues; (6) To advise the City Council and staff regarding budgetary, rate-making and operational matters related to the electric utility; (7) To annually review and provide advice to City Council and staff on the City’s Legislative Policy Agenda regarding energy and energy-related carbon issues; and (8) To perform such other duties and functions and have such other powers as may be provided by ordinance of the City Council. FINANCIAL / ECONOMIC IMPACTS Although staff cannot quantify at this time, the Energy Board will be identifying businesses opportunities for a variety of existing and new businesses. ENVIRONMENTAL IMPACTS The Energy Board will be identifying opportunities to reduce carbon emissions, improve energy balance through getting the most out of the City’s resources. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. ORDINANCE NO. 098, 2011 OF THE COUNCIL OF THE CITY OF FORT COLLINS REPEALING AND REENACTING DIVISION 14, ARTICLE III OF CHAPTER 2 OF THE CODE OF THE CITY OF FORT COLLINS DISSOLVING THE ELECTRIC BOARD AND CREATING A NEW ENERGY BOARD WHEREAS, the Electric Board is a City board established by ordinance in 1991 for the purpose of advising City Council on policy matters pertaining to the municipal electric system and acting as a sounding board to City staff for the purpose of identifying the ratepayers’ service delivery expectations; and WHEREAS, the concept of “energy” is broader in scope than electricity and encompasses any source of usable power; and WHEREAS, the City’s policies related to energy generation, distribution and use in the City are complex and constantly evolving due to advances in the energy field and other related City functions; and WHEREAS, the City Council has over recent years adopted numerous policies related to energy, including but not limited to the following: (1) the Fort Collins Climate Action Plan to reduce greenhouse gas emissions; (2) the updated Energy Policy identifying renewable energy portfolio standards consistent with those set by the State of Colorado; (3) amendments to the City’s building code to better align Fort Collins’ built environment with community goals of improved indoor environmental quality, protection of the natural environment, reduced carbon emissions, reduced energy use and reduced water use; and (4) an updated City Plan including new strategies for transportation, increased energy efficiency, increased use of renewable energy and other energy uses; and WHEREAS, City staff believes that in the future it is very likely that carbon emissions will be regulated more broadly and stringently than they are today; and WHEREAS, the single largest source of City-related carbon emissions is electric energy generation and the second largest is transportation; and WHEREAS, policy development related to energy use and generation requires advice and input to City Council from subject matter experts who are familiar with not only the municipal electric system but also with multiple other disciplines such as transportation; and WHEREAS, by dissolving the Electric Board and establishing in its place a new Energy Board, citizen involvement and stakeholder expertise will be available to City Council through a board of volunteer members with expertise in all related disciplines; and WHEREAS, for these reasons, the City Council believes that it would be in the best interests of the City to dissolve the Electric Board and create a new Energy Board and has directed City staff to develop a description in writing of the proposed functions of an Energy Board with broader responsibilities and expertise than the current Electric Board; and WHEREAS, one of the functions of the Electric Board is to act as the final appeal and hearing body for customer complaints except as is otherwise provided in Chapter 26, Article XII regarding termination of utility service and, upon dissolution of the Electric Board, this function will become the responsibility of the City Manager’s Office. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That Section 2-231 through 2-235 of Article III of Chapter 2 of the Code of the City of Fort Collins are hereby repealed with the following sections reenacted to read as follows: DIVISION 14. ENERGY BOARD Sec. 2-231. Creation. There shall be and is hereby created an Energy Board, hereafter referred to in this Division as the “Board.” Sec. 2-232. Membership; term. (a) Board shall consist of 9 members appointed by the City Council. (b) Each member shall serve without compensation for a term of four years, except that members may be appointed by the City Council for a shorter term in order to achieve overlapping tenure. Appointments shall specify the term of office of each individual. All members shall be subject to removal by the City Council. If a vacancy occurs on the Board, it shall be filled by the City Council for the remaining unexpired portion of the term. No member shall serve more than two consecutive terms. For the purposes of this provision, a “term” shall include the balance of an unexpired term served by a person appointed to fill a vacancy if such unexpired term exceeds twenty-four (24) months. Sec. 2-233. Functions. The duties and functions of the Board shall be: (1) To advise the City Council and staff regarding the development and implementation of the City’s energy policy; (2) To advise the City Council and staff in developing City policies that encourage the incorporation of energy conservation and efficiency, carbon emissions reduction, and renewable energy into the development and provision of City utility services, the design and construction of City -2- transportation projects, and the way in which the City impacts the overall built environment within the City. (3) To advise the City Council and staff regarding the alignment of energy programs and policies with City, ratepayer and community values and service delivery expectations; (4) To advise the City Council and staff regarding the recommendations for improvements to City energy systems; (5) To coordinate with other City boards and commissions regarding energy issues; (6) To advise the City Council and staff regarding budgetary, rate-making and operational matters related to the electric utility; (7) To annually review and provide advice to City Council and staff on the City’s Legislative Policy Agenda regarding energy and energy-related carbon issues; and (8) To perform such other duties and functions and have such other powers as may be provided by ordinance of the City Council. Sec. 2-234. Officers; bylaws. The Board shall elect annually from its membership a chairperson and such officers as may be required. Bylaws may be adopted by the Board, which bylaws shall not be inconsistent with the Charter, the Code or other policies that may be established by the City Council. A copy of the bylaws shall be filed with the City Clerk for the use of the City Council immediately after adoption by the Board, and the same may be subject to the approval of the City Council. Sec. 2-235. Minutes; annual report; work plan. The Board shall take and file minutes in accordance with the requirements of § 2-73 of the Code. On or before January 31 of each year, the Board shall file a report with the City Clerk setting forth the activities of the Board for the previous year. On or before November 30 of each year, the Board shall file a work plan with the City Clerk for the following year. Section 2. That a new subsection 26-448 shall be added to Chapter 26, Article VI, Division 3 of the Code of the City of Fort Collins which reads in its entirety as follows: Sec. 26-448. Appeals. Any customer who believes that he or she has been aggrieved by a final determination or decision by the Utilities General Manager or his or her designee -3- regarding the application of the requirements of Article II of Chapter 26 or any rules or regulations authorized under such article may petition the Utilities General Manager for a hearing. The General Manager may appoint a hearing officer or elect to conduct such hearing him or herself, provided that the aggrieved party makes written application for such hearing within seven (7) days of the date or such final determination or decision. If a timely request for hearing is made, a hearing concerning the proprietary of the final determination or decision shall be granted to the aggrieved party and, after notice to the aggrieved party, the hearing shall be held no more than ten (10) calendar days after the filing of the request for hearing. At the hearing the appellant and the City may be represented by an attorney, may present evidence and may cross-examine witnesses. A verbatim transcript of the hearing shall be made. The decision of the hearing officer or Utilities General Manager shall be based upon competent evidence. The aggrieved party may file an appeal from such hearing to the City Manager’s Office pursuant to Chapter 2, Article VI, § 2-541 of the Fort Collins Municipal Code. Introduced, considered favorably on first reading, and ordered published this 19th day of July, A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of August, A.D. 2011. _________________________________ Mayor ATTEST: _____________________________ City Clerk -4- DATE: July 19, 2011 STAFF: Darin Atteberry AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 29 SUBJECT Resolution 2011-067 Creating a Council Futures Committee. EXECUTIVE SUMMARY At the Council retreat on May 6 and 7, 2011, Council indicated an interest in forming a Futures Committee, the purpose of which would be to develop a vision for the future of Fort Collins, using economic modeling and other information to help inform and establish a guide for Council to consider in making decisions about the future of the community. BACKGROUND / DISCUSSION Prospective committee members have met informally twice in the past month in order to more clearly define the aspirations, roles and functions, meeting schedule, and intent of the committee. The intent was clearly to look beyond the present and develop ideas about the distant future, looking beyond the typical City planning horizons and to develop informed ideas about where our community should be heading. Additionally, the Committee wanted to develop an approach to the financial strategies and systems required to successfully achieve the desired future. Some of the specific considerations were to develop a clear set of measurable goals and objectives. Key questions considered for future discussion were: • What are the visionary considerations that should shape our future and make it better as a community? • A significant focus of the committee should be on energy, water, and the built environment • Another focus will be on social issues such as homelessness and poverty. • Are there clearly stated goals and objectives that will keep the community on the path to achieving this future? • What are the potential roadblocks to success? • Is the budget aligned with the goals? • When considering future ideas, capital costs, lifecycle, operations and maintenance should be key considerations. • Is there a financial model which aligns funding strategies with the future vision? • Are advisory boards and commissions directly reinforcing the goals? Committees have been developed over the years on an ad hoc basis. Today there are overlapping responsibilities and duties that do not always directly align with the City’s goals, plans, and policies. The committee would like to take these Boards into consideration and make sure they are directly reinforcing the future direction of the community. • Are City programs and activities in alignment with the future vision? • Are there clear metrics to measure outcomes and determine success? • What are the regional contextual issues and what are the key considerations of this context? How does this City fit in with its regional partner cities? The intent is for the committee to operate in a dynamic process whereby numerous ideas are considered and evaluated. Some of the ideas may evolve into actionable recommendations to Council for programs, activities or projects, while others may not make be considered further. Generating, evaluating, and refining ideas will be a significant consideration. To add ideas to the process the committee may bring in speakers, visit sites in other Front Range communities, or attend specific seminars. Many of the City staff will be engaged with the committee on a project by project basis, and at various times, different City departments may be asked to attend committee meetings. With respect to Plan Fort Collins, the committee should recognize the value of the Plan and be familiar with its components. The focus however, will be to consider farther into the future than the current planning horizon and attempt to determine a path to the future. The committee will meet twice a month and will elect a rotating chair. Members will be appointed by City Council and appointments will be made at the start of election terms. July 19, 2011 -2- ITEM 29 STAFF RECOMMENDATION Staff recommends adoption of the Resolution. RESOLUTION 2011–067 OF THE COUNCIL OF THE CITY OF FORT COLLINS CREATING A COUNCIL FUTURES COMMITTEE WHEREAS, at the City Council workshop held on May 6 and 7, 2011, the City Council expressed interest in forming a committee of the Council, to be known as the “Futures Committee,” the purpose of which would be to develop a vision for the future of Fort Collins over the next 30 years and beyond, utilizing economic modeling and other relevant data; and WHEREAS, the ideas, strategies and recommendations of the Futures Committee will be used to help shape City policies, programs and legislation; to align and coordinate the mission statements and work plans of City boards and commissions; and to develop a budgeting process that is increasingly responsive to the needs and interests of the citizens of Fort Collins and that allocates current expenditures in a manner that reflects the City’s vision for the future. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That, for the purposes described above, a City Council Futures Committee is hereby created, to consist of three Councilmembers. Section 2. That the following Councilmembers are hereby appointed to serve on the Futures Committee until such time as the City Council may decide to make new appointments: Gerry Horak Lisa Poppaw Wade Troxell Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 19th day of July A.D. 2011. Mayor ATTEST: City Clerk urban renewal authority Karen Weitkunat, President City Council Chambers Kelly Ohlson, Vice-President City Hall West Ben Manvel 300 LaPorte Avenue Lisa Poppaw Fort Collins, Colorado Aislinn Kottwitz Wade Troxell Gerry Horak Cablecast on City Cable Channel 14 on the Comcast cable system Darin Atteberry, Executive Director Steve Roy, City Attorney Wanda Krajicek, Secretary The City of Fort Collins will make reasonable accommodations for access to City services, programs, and activities and will make special communication arrangements for persons with disabilities. Please call 221-6515 (TDD 224-6001) for assistance. URBAN RENEWAL AUTHORITY MEETING July 19, 2011 (after the Regular Council Meeting) 1. Call Meeting to Order. 2. Roll Call. 3. Resolution No. 037 Adopting Policies and Procedures for the Fort Collins Urban Renewal Authority. (staff: Christina Vincent; 5 minute staff presentation; 15 minute discussion) In May 2010, the Urban Renewal Authority (URA) Board approved a thorough revision to the Policies and Procedures (Policies) from the original policies created in 2006. At the May 17, 2011 URA Board meeting, it was decided that the Policies should have more detail regarding green building practices and therefore should come back to the URA Board for more revisions. Staff received feedback at the June 14, 2011 work session to modify the language as proposed by the URA Board. These Policies are intended to give guidance to the eligible developments and objectives of the URA to applicants, staff, citizens and the URA Board for decision making purposes. 4. Other Business. 5. Adjournment. DATE: July 19, 2011 STAFF: Christina Vincent AGENDA ITEM SUMMARY URBAN RENEWAL AUTHORITY 3 SUBJECT Resolution No. 037 Adopting Policies and Procedures for the Fort Collins Urban Renewal Authority. EXECUTIVE SUMMARY In May 2010, the Urban Renewal Authority (URA) Board approved a thorough revision to the Policies and Procedures (Policies) from the original policies created in 2006. At the May 17, 2011 URA Board meeting, it was decided that the Policies should have more detail regarding green building practices and therefore should come back to the URA Board for more revisions. Staff received feedback at the June 14, 2011 work session to modify the language as proposed by the URA Board. These Policies are intended to give guidance to the eligible developments and objectives of the URA to applicants, staff, citizens and the URA Board for decision making purposes. BACKGROUND / DISCUSSION The URA Board approved the first version of Policies in August 2006. Originally, the URA Board formed an ad-hoc committee to create a mission statement and develop general policies. Those Policies have since guided the URA in the initial stages of preparing for future URA projects. There are now several approved URA projects that both the URA team and staff felt needed more clarification and direction when guiding applicants through the process. In 2010, the URA Board approved the Policies document that is used today. The changes from the original 2006 version were significant. Both versions are attached to this Agenda Item Summary for review. 2010 changes: • Clear introduction with explanation of the purpose of the Policies and Procedures. • Clear distinction of the objectives, goals, and eligible development and costs. • Inclusion of green building techniques. • Establish evaluation criteria N Financial feasibility (establishment of a threshold for projects that need proforma analysis) N Policy assessment N Local ownership criteria changed from Larimer County to 40 mile radius from the City of Fort Collins Growth Management boundary. N All payments will be issued on a reimbursement basis at the issuance of Certificate of Occupancy, unless otherwise determined by the URA Board. • Inclusion of the URA application questions. • Step-by-step process illustration. This document has been highly successful in setting clear expectations of the type of application and project the URA will consider. The 2011 revision contains the following changes: • Assuring Development is consistent with City Plan and the Urban Renewal Plans. • Promote green building and above code energy efficiencies. • Green Development which exceeds adopted code minimums; using the various available rating systems. • Clarification of the acceptable affordable housing requirements to exceed existing standards defined in the Land Use Code. • Inclusion of revised mission statement from 2006. • Applicant must be in the City’s Development review process. • State intended waste diversion and/or deconstruction methods of the project. July 19, 2011 -2- ITEM 3 • Require a Construction Waste Management Plan for both existing development and new construction projects to ensure proper methods of waste reduction, reuse and recycling will occur for all URA projects. • All URA projects must comply with the Green Building Code from the date the policies are adopted, including prior to City wide adoption January 1, 2012 FINANCIAL / ECONOMIC IMPACTS This proposal will increase the economic impact the URA application process can have on a proposed development. The improved process will enhance customer service to the applicants, provide sound direction through the process, and foster effective partnerships through clear communication. The additional social value will be for the staff, advisory group, and URA Board to make informed recommendations and decisions based on a clear set of guidelines. ENVIRONMENTAL IMPACTS Ultimately, the benefit will be positive to the environment as each project will increase the level of quality and sustainability of all publicly funded URA projects. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. 2010 URA Policies and Procedures 2. 2006 URA Policies 3. Work session Summary June 14, 2011 4. Power Point Presentation 1 Policies & Procedures for APPlicAnts section 1 – introduction This policy is to provide guidance for the Fort Collins Urban Renewal Authority (URA) staff, Citizen Advisory Group (North College), and URA Board (Board) in considering, reviewing and processing ap- plications that seek to use Tax Increment Financing (TIF) assistance for development activities within the designated plan areas. The URA Board will have the option of amending or waiving sections of this document when determined necessary or appropriate. 1 The fundamental purpose for application to the URA for TIF assistance is to facilitate desirable development/redevelopment projects within the URA plan that would not otherwise occur “but for” the assistance provided through TIF. 2 Examples of costs eligible for TIF assistance are listed in Section 4 – Eligible Costs. 3 It is the intent of the Board to provide the minimum amount of TIF assistance to make the project viable. The provision of finan- cial assistance is at the sole discretion of the Board. The Board reserves the right to reject or approve projects on a case-by-case basis, taking into account established policies, specific project criteria and the demand on City services in relation to the potential public benefit received from the proposed project. Meeting policy guidelines and other criteria does not guarantee the award of TIF assistance. Furthermore, the approval or denial of one project is not intended to set a precedent for approval or denial of another project. section 2 – oBJectiVes The URA exists to accomplish the following objectives: 1 Retaining, expanding or attracting businesses for the purpose of improving the City’s economic base as demonstrated by in- creased jobs, creation of primary jobs, higher paying employment, installing manufacturing base, etc. 2 Eliminating blight. 3 Improving the public infrastructure (streets, storm drainage, sewer, utilities, etc.) in areas where deficiencies exist. 4 Encouraging development projects that enhance the streetscapes and pedestrian experience and improve the vitality of com- mercial corridors by adding interest and activity. 5 Providing a variety of quality affordable housing choices. 6 Creating a significant number of new primary jobs. 7 Providing “green” building or energy efficiencies within buildings and developments. 8 North College Plan area priorities (specific to the North College Urban Renewal Plan area): a. Enhancing transportation infrastructure; b. Providing stormwater drainage or floodplain improvements; c. Expanding or upgrading utility infrastructure; and d. Providing amenities that benefit the public including but not limited to streetscapes, enhanced architecture and building materials, facade renovations, special site improvements, etc. that contribute to a positive identity and image for the North College area. MAY 18, 2010 2 section 3 – eliGiBle deVeloPMent The Board may consider TIF funding for Projects that include the following: 1 Business Development: the retention, expansion, and attraction of business in the plan area. 2 Residential Development: new construction or rehabilitation of single family and/or multi-family housing. 3 Affordable Housing (must meet the minimum City Code requirement of 20% of the total units with 80% Area Median Income (AMI) or less). 4 Creation of a significant number of new primary jobs. 5 Creation of a destination location that will capture additional revenue to the area. 6 Historic preservation and adaptive reuse of historic structures. 7 Protection of natural habitats and features both on the development’s site and in the vicinity of that site. section 4 – eliGiBle costs 1 Removal of hazardous materials or conditions (sites where remediation or mitigation are required). 2 Site clearance or site acquisition. 3 Land assemblage. 4 Parking/structured parking for the public. 5 Infrastructure that is extraordinarily costly to remedy (streets, stormwater, water/wastewater, light & power, gas, etc.) 6 Infrastructure that serves other development and redevelopment facilitating further improvements in the area. 7 Green development or Energy Efficiency features within a project. 8 Public amenities such as parks, plazas, community gathering areas and streetscapes to enhance the aesthetics of the area. 9 Capital Improvement Projects (CIP) as identified by the City of Fort Collins. section 5 – eVAluAtion criteriA The following basic evaluation criteria will be used to review applications seeking TIF funding. Since every project is unique, additional evaluation criteria may become necessary and will be determined on a case-by-case basis. 1 Financial feasibility: a. TIF assistance will not be considered for projects that have the financial feasibility to proceed without TIF assistance. Assistance will not be provided solely to broaden the developer’s profit margin on the project. Prior to consideration of a TIF assistance re- quest, the URA will undertake a financial analysis of the project costs to ensure that the request for assistance is appropriate. b. For projects that will generate more than $1 million in TIF or create a project that is more than 10,000 sq. ft. in size there may be an independent financial analysis. The independent analysis will be contracted for by the URA and the cost will be paid for by the applicant. Additionally, if the project is seeking more than 50% of the tax increment generated from the project, or if the applicant is asking for more than $150,000, an independent financial analysis of the project may be required by the URA. c. Individuals requesting TIF assistance must demonstrate, to the satisfaction of the URA, sufficient equity investment in the project prior to seeking TIF. Equity is defined as cash or un-leveraged value in land or prepaid costs attributable to the project. 3 Examples of equity may include personal cash, letter of credit, personal investment, awarded grant monies, etc. 2 Policy assessment: a. A qualitative and/or quantitative analysis should be completed in order to identify the costs associated with the project which benefit the public and achieve the broader community benefits and goals. Analysis of the benefits of the project will be mea- sured against the expectations set in the relevant plans that may include, but not be limited by, City Plan, Urban Renewal Plan, and any community sub area plan. b. Projects do not provide sufficient public benefits may, after review, be asked for revisions such as: i. Greater Developer contribution; ii. Reduced TIF participation; and/or iii. Redefining the scope of the project. Revision may lead to approval of final denial of URA participant in the project. 3 TIF assistance for land/property purchase costs will not be provided in an amount exceeding the fair market value of the property. The fair market value will be determined by an independent appraiser hired by the Board or City of Fort Collins. The cost of the appraisal will be paid for by the applicant. 4 TIF will not be used to retroactively reimburse projects or make payments to cover costs associated with any actions already incurred by a development or redevelopment prior to a request for financial assistance being considered by the URA. 5 The URA will give preference to funding projects that have local ownership, which is defined to mean any home location, busi- ness, developer located within a 40 mile radius from the City of Fort Collins Growth Management boundary. 6 The applicant must be able to demonstrate to the URA and Board’s satisfaction, an ability to construct, operate, and maintain the proposed project based upon past experience, general reputation, and credit history. 7 The level of TIF assistance will be determined on the merits of the project. 8 TIF assistance will be on a reimbursement basis and only after the project valuation is verified and the Certificate of Occupancy (CO) is issued at completion of construction. The funds will be paid upon actual costs with verifiable receipts. Consideration for payments prior to obtaining the CO and valuation may be made on a case-by-case basis and will require approval by the Board prior to commencement of construction. 9 The applicant must complete the TIF application in its entirety, including the following documentation: a. A location map b. Site plans or project drawings/perspectives/elevations c. Project Pro-forma d. Owner/Business resume e. Executive Summary with the following questions answered: i. What is the nature of the project? ii. Why is TIF assistance needed and how will the funds be used? iii. What sources of financing will the project secure other than TIF? iv. How will the project help improve/upgrade public infrastructure (streets, utilities, drainage, etc.)? v. How will the project enhance the property tax base (and sales tax base, if applicable) of the area? vi. How will the project help achieve the goals of the North College Urban Renewal Plan and City Plan? vii. How will the project help eliminate slum and blight conditions? viii. How will this project help achieve the URA goals of sustainability through green building techniques? Please be specific how this project uses energy efficiency, renewable resources, natural resource conservation techniques, stormwater low impact design methods, or any other methods not listed. ix. Please provide documentation and quantifiable results stating the proven methods and effectiveness of the proposed sus- tainable features within the project. x. What is the proposed project timetable (what is the estimated time frame for major steps including the City’s planning deci- sion, completion of financial commitments, start of construction, and issuance of Certificate of Occupancy (CO)? 4 section 6 – Process (see illustration for condensed version) 1 Applications may be submitted to URA staff at any time during regular business hours. 2 After URA staff has done a preliminary analysis and made suggested edits or modifications to the application, there will be a final submittal. 3 Additional community-based input will be required. a. If the application is for a project located within the North College Urban Renewal Plan, the North College Citizen Advisory Group (CAG) must make a recommendation by a majority vote. The CAG meets on a monthly basis and the proposed proj- ect/TIF application will be scheduled on the agenda once the financial analyses are completed and the URA staff has adequate information and achieved a staff recommendation to present. b. Feedback from community-based input may require modifications that delay approval and even require additional financial analysis. If the goals of the URA are not clearly met and staff doesn’t make a favorable recommendation to the Board, the application will be denied and will not move forward to the Board for approval. The applicant may apply again if the project changes financially, present a different project than previously submitted or with a change in the TIF calculation based on project differences. 4 Once the URA staff and any community-based organization have recommended the application, URA staff will work with the ap- plicant to create a project specific Redevelopment Agreement (RA) that will define the terms of the TIF assistance for the project. 5 Once a final RA is agreed to URA staff will schedule the application for consideration at a hearing before the Board. The Board typically meets bimonthly on Tuesday evenings after City Council meetings. 6 Approval of the project at any point in the process, short of the Board meeting, is no guarantee that the project will ultimately receive any TIF assistance. 7 The Board will consider the application at the scheduled meeting. The Board will decide whether or not to support the applica- tion. The support may include: a. adoption of the RA, b. denial of the application, or c. conditional approval of the RA and the Board will provide clear direction on suggested terms. The Board will also clearly indicate if the conditions are mandatory for approval or optional enhancements. 8 All Redevelopment Agreements are valid for a 12 month period beginning on the date the agreement was executed, unless otherwise stated in the agreement. 5 *Based on availability of 6 month calendar urA Board meeting scheduled* once redevelopment AGMt is negotiated steP 1 steP 2 steP 3 steP 4 steP 5 submit urA application Pls. allow 2 weeks for iterations staff review final submittal Pls. allow 4 weeks for completion financial analysis “But for” test Based on determination of eligible costs staff recommendation “CAG” Citizen Advisory Group meets once a month 1st Thursday cAG meeting = project introduction 2nd cAG meeting = recommendation APPlicAtion Process urban renewal authority 300 LaPorte Ave • PO Box 580 • Fort Collins, CO 80522-0580 970-221-6505 • TDD 970-224-6002 • renewfortcollins.com DT: June 17, 2011 TO: President and URA Board members TH: Darin Atteberry, Executive Director FM: Christina Vincent, Redevelopment Program Administrator RE: June 14, 2011 Work Session Summary – URA Eligibility Policies Board members present: President Weitkunat, Vice‐President Ohlson, Ben Manvel, Lisa Poppaw, Gerry Horak Staff present: Christina Vincent, Josh Birks, Mike Gebo Discussion/Follow‐up points: • The URA policies were presented with changes from the 2010 version. The Board requested stronger language requiring Construction Waste Management Plans for both new construction and deconstruction/demolition projects. • The Board requested that the URA policies state that any project is subject to the Green Building code effective the date of adoption; scheduled to be July 19. • The Board requested to clarify the terminology does not only include recycling, however should state: waste reduction, reuse, and recycling methods. • The Board also requested to remove the Construction Waste Management from eligible costs and ensure its expectation for every URA application. • The Board requests reporting mechanisms and verification methods that are consistent with the Green Building Code to be activated with a decision of approval on July 19. Next Steps: July 19 – The URA Board will consider adopting the updated URA Policies and Procedures. ATTACHMENT #4 1 1 2011 Policies & Procedures URA Board Meeting July 19, 2011 2 PAST ACTIONS •• 2006 –– Original Policies created by URA Board based on recommendations from ad hoc committee. Adopted August 2006 •• 2010 –– Complete revamp of URA policies and Procedures. Adopted May 2010 •• May 2011 -Direction given by URA Board to revisit Policies •• June 2011 –– Worksession and clarification of direction ATTACHMENT #4 2 3 2010 POLICIES: PURPOSE 1. Provide Guidance 2. State the Objectives 3. Specify Eligible Development 4. Identify Eligible Costs 5. Develop Specific Criteria 6. Formalize Process & Timeline 4 2006 vvss 2010 DIFFERENCES •• Clearly state the financial need •• Closer linkage to goals of Retention, Expansion, and Attraction •• Introduce a green building incentive •• Give direction and expectations to applicants •• Clearly state TIF is not an entitlement •• Develop an evaluation criteria ATTACHMENT #4 3 5 2010 POLICIES: EVALUATION CRITERIA •• Financial Feasibility ““But But For”” For test Financial analysis of the project pro forma Proven equity investment in the project •• Policy Assessment Project meets goals of various plans If goals are not met, additional criteria may be required •• Land purchase will not exceed fair market value 6 2010 POLICIES: EVALUATION CRITERIA ( con’’tt)con ) •• Cannot be retroactively reimbursed •• Application must be complete •• Local ownership preference (40 mi.) •• Applicant must provide past experience •• TIF is based on project merit •• TIF assistance on reimbursement basis ATTACHMENT #4 4 7 2010 POLICIES: 5 STEP PROCESS STEP 1 -Discuss with Staff/Negotiate/Submit Application STEP 2 -Financial analysis STEP 3 -Staff Recommendation STEP 4 –– CAG recommendation (if in North College) *Two separate CAG meetings STEP 5 –– Redevelopment Agreement/URA Board Action 8 2011 REVISIONS •• Encourage the Development to be consistent with City Plan and the Urban Renewal Plans. •• Promote green building and above code energy efficiencies. •• Green Development which exceeds adopted code minimums; using the various available rating systems as a guide –– LEED –– Sustainable Sites –– Energy Star ATTACHMENT #4 5 9 2011 REVISIONS ( con’’tt)con ) •• Inclusion of revised mission statement. •• Applicant must be in the City’’s City s Development review process. –– Specifically complete first round of review with staff comments •• Require Construction Waste Management Plan for both new construction and demolition. •• Clarify the Land Use code Affordable Housing minimum and suggest exceeding the requirement. 10 URA BOARD ACTION Approve the resolution to revise the 2011 URA Policies and Procedures ATTACHMENT #4 6 11 Questions? RESOLUTION NO. 037 OF THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY ADOPTING POLICIES AND PROCEDURES FOR THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, on August 15, 2006, the Board of Commissioners of the Fort Collins Urban Renewal Authority (the “Board”) adopted Resolution No. 007, which approved a mission statement and general policies for the Fort Collins Urban Renewal Authority (the “Authority”); and WHEREAS, the Authority has continued to expand its role in the redevelopment of the City, which redevelopment positively affects both the urban renewal plan areas and the community as a whole; and WHEREAS, the Authority and the work it undertakes in current and future urban renewal plans may also influence the operations of the City; and WHEREAS, the Board has indicated that the Authority’s policies should include more detail regarding “green” building practices on urban renewal projects; and WHEREAS, members of the public and potential developers of property within the current and future urban renewal plan areas seek clear direction as to the information that should be included in financial assistance applications to the Authority and as to the processes that the Authority utilizes in reviewing such application; and WHEREAS, Authority staff believes that certain changes to the Authority’s policies and procedures are necessary in order to provide more detail on green building practices to members of the public, developers, and the Board and has proposed for the Board’s consideration modifications to the Urban Renewal Authority Policies and Procedures that are on file in the Clerk’s Office. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE FORT COLLINS URBAN RENEWAL AUTHORITY that the policies and procedures contained in the Fort Collins Urban Renewal Authority Policies and Procedures attached hereto as Exhibit “A” and incorporated herein by this reference accurately reflect the Board’s expectations for green building practices for urban renewal projects. Passed and adopted at a regular meeting of the Board of Commissioners of the City of Fort Collins Urban Renewal Authority this 19th day of July A.D. 2011. Chairperson ATTEST: Secretary 1 2011 URA Policies and Procedures (unformatted version) SECTION 1 – INTRODUCTION This policy is to provide guidance for the Fort Collins Urban Renewal Authority (URA) staff, Citizen Advisory Group (North College), and URA Board (Board) in considering, reviewing and processing applications that seek to use Tax Increment Financing (TIF) assistance for development activities within the designated plan areas. The URA Board will have the option of amending or waiving sections of this document when determined necessary or appropriate. The mission of the URA is to remedy blight, using TIF, to leverage private capital investment and stimulate sustainable development and public improvements projects. The fundamental purpose for application to the URA for TIF assistance is to facilitate desirable development/redevelopment projects within the URA plan that would not otherwise occur “but for” the assistance provided through TIF. Examples of costs eligible for TIF assistance are listed in Section 4 – Eligible Costs. It is the intent of the Board to provide the minimum amount of TIF assistance to make the project viable. The provision of financial assistance is at the sole discretion of the Board. The Board reserves the right to reject or approve project on a case‐by‐case basis, taking into account: o Established policies; o Specific project criteria; and o Demand on City services in relation to the potential public benefit received from the proposed project. Meeting policy guidelines and other criteria does not guarantee the award of TIF assistance. Furthermore, approval or denial of one project is not intended to set a precedent for approval or denial of another project. SECTION 2 ‐ OBJECTIVES The URA exists to accomplish the following objectives: Eliminating blight. Improving the public infrastructure (streets, storm drainage, sewer, utilities, etc.) in areas where deficiencies exist. Creating a significant number of new primary jobs. Removing impediments to development. EXHIBIT A 2 Retaining, expanding or attracting businesses for the purpose of improving the City’s economic base as demonstrated by increased jobs, creation of primary jobs, higher paying employment, installing manufacturing base, etc. Encouraging development projects that enhance the streetscapes and pedestrian experience and improve the vitality of commercial corridors by adding interest and activity. Providing a variety of quality affordable housing choices. Encouraging development that is consistent with City Plan and approved Urban Renewal Plans. Providing Promoting “green” building standards and/or “above code” energy efficiencies within buildings and developments. North College Plan area priorities (specific to the North College Urban Renewal Plan area): o Enhancing transportation infrastructure; o Providing stormwater drainage or floodplain improvements; o Expanding or upgrading utility infrastructure; and o Providing amenities that benefit the public including but not limited to streetscapes, enhanced architecture and building materials, facade renovations, special site improvements, etc. that contribute to a positive identity and image for the North College area. SECTION 3 – ELIGIBLE DEVELOPMENT The Board may consider TIF funding for Projects that include the following: Business Development: the retention, expansion, and attraction of business in the plan area. Residential Development: new construction or rehabilitation of single family and/or multi‐family housing. Affordable Housing (must meet the minimum City Code requirement of 20% 10% of the total units with 80% Area Median Income (AMI) or less). Creation of a significant number of new primary jobs. Green development which exceeds adopted code minimums (e.g. design, construction, or retrofitting of buildings and sites to be certified through an approved green building rating system). Student housing, defined as multi‐unit residential structures, whether publicly or privately owned, that are leased in whole or in part to students attending post‐ secondary educational institutions. Creation of a destination location that will capture additional revenue to the area. Historic preservation and adaptive reuse of historic structures. Protection of natural habitats and features both on the development’s site and in the vicinity of that site. 3 SECTION 4 – ELIGIBLE COSTS Removal of hazardous materials or conditions (sites where remediation or mitigation are required). Site clearance or site acquisition. Land assemblage. Parking/structured parking for the public. Infrastructure that is extraordinarily costly to remedy (streets, stormwater, water/wastewater, light & power, gas, etc.) Infrastructure that serves other development and redevelopment facilitating further improvements in the area. Extraordinary sustainable and renewable features that greatly minimize the negative impact of any project by enhancing efficiency. Public amenities such as parks, plazas, community gathering areas and streetscapes to enhance the aesthetics of the area. Capital Improvement Projects (CIP) as identified by the City of Fort Collins. Projects listed in Infrastructure Plans related to the Plan area, i.e. North College Infrastructure Funding Plan. SECTION 5 – EVALUATION CRITERIA The following basic evaluation criteria will be used to review applications seeking TIF funding. Since every project is unique, additional evaluation criteria may become necessary and will be determined on a case‐by‐case basis. Financial feasibility: o TIF assistance will not be considered for projects that have the financial feasibility to proceed without TIF assistance. Assistance will not be provided solely to broaden the developer’s profit margin on the project. Prior to consideration of a TIF assistance request, the URA will undertake a financial analysis of the project costs to ensure that the request for assistance is appropriate. o For projects that will generate more than $1 million in TIF or create a project that is more than 10,000 sq. ft. in size there may be an independent financial analysis. The independent analysis will be contracted for by the URA and the cost will be paid for by the applicant. Additionally, if the project is seeking more than 50% of the property tax increment generated from the project, or if the applicant is asking for requesting a grant for more than $150,000, an independent financial analysis of the project may be required by the URA. o Individuals requesting TIF assistance must demonstrate, to the satisfaction of the URA, sufficient equity investment in the project prior to seeking TIF. Equity is defined as cash or un‐leveraged value in land or prepaid costs attributable to the 4 project. Examples of equity may include personal cash, letter of credit, personal investment, awarded grant monies, etc. Policy assessment: o A qualitative and/or quantitative analysis should be completed in order to identify the costs associated with the project which benefit the public and achieve the broader community benefits and goals. Analysis of the benefits of the project will be measured against the expectations set in the relevant plans that may include, but not be limited by, City Plan, Urban Renewal Plan, and any community sub area plan. o Projects do not provide sufficient public benefits may, after review, be asked for revisions such as: – Greater Developer contribution; – Reduced TIF participation; and/or – Redefining the scope of the project. Revision may lead to approval of final denial of URA participant in the project. The URA will give preference to funding projects that have local ownership, which is defined to mean any home location, business, developer located within a 40 mile radius from the City of Fort Collins Growth Management boundary. The applicant must be able to demonstrate to the URA and Board’s satisfaction, an ability to construct, operate, and maintain the proposed project based upon past experience, general reputation, and credit history, and equity investment. The level of TIF assistance will be determined on the merits of the project. The URA will give preference to affordable housing projects that exceed the minimum City Land Use Code requirement of 10% of the total units for households earning 80% or less of AMI. Section 6 – Other General Policies TIF assistance for land/property purchase costs will not be provided in an amount exceeding the fair market value of the property. The fair market value will be determined by an independent appraiser hired by the Board or City of Fort Collins. The cost of the appraisal will be paid for by the applicant. TIF will not be used to retroactively reimburse projects or make payments to cover costs associated with any actions already incurred by a development or redevelopment prior to a request for financial assistance being considered by the URA. TIF assistance will be on a reimbursement basis and only after the project valuation is verified and the Certificate of Occupancy (CO) or Letter of Completion (LOC) is issued at completion of construction. The funds will be paid upon actual costs with verifiable receipts. Consideration for payments prior to obtaining the CO or LOC and valuation 5 may be made on a case‐by‐case basis and will require approval by the Board prior to commencement of construction. To be eligible to apply for TIF, the applicant must have submitted the proposed project to the City as a Project Development Plan (PDP), Final Development Plan (FDP), or a major/minor amendment and completed the first round of review with comments from City staff. A City of Fort Collins Construction Waste Management Plan must be submitted for both new construction projects as well as existing projects that may have deconstruction onsite. Specific requirements are stated in the plan and must be accompanied in the application. Any project seeking TIF assistance must adhere to the City’s adopted Green Building Code and is subject to that Code (effective the date of adoption, prior to the City’s January 1, 2012 implementation date). Section 7 – Application Requirements The applicant must complete the TIF application in its entirety, including the following documentation: A location map Site plans or project drawings/perspectives/elevations Project Pro‐forma Owner/Business resume Executive Summary with the following questions answered: What is the nature of the project? Why is TIF assistance needed and how will the funds be used? What sources of financing will the project secure other than TIF? How will the project help improve/upgrade public infrastructure (streets, utilities, drainage, etc.)? How will the project enhance the property tax base (and sales tax base, if applicable) of the area? How will the project help achieve the goals of the North College Urban Renewal Plan and City Plan? How will the project help eliminate slum and blight conditions? How will this project help achieve the URA goals of sustainability through green building techniques? Please be specific how this project uses energy efficiency exceeding code required, renewable resources, natural resource conservation techniques, or stormwater low impact design methods. A Construction and/or Deconstruction Waste Management Plan that identifies how waste will be reduced, reused, and/or recycled appropriately. Please provide documentation and quantifiable results stating the proven methods and effectiveness of the proposed sustainable features within the project. 6 What is the proposed project timetable (what is the estimated time frame for major steps including the City’s planning decision, completion of financial commitments, start of construction, and issuance of Certificate of Occupancy (CO)? Section 8 – Process (see illustration for condensed version) Applications may be submitted to URA staff at any time during regular business hours. After URA staff has done a preliminary analysis and made suggested edits or modifications to the application, there will be a final submittal. Additional community‐based input will be required. If the application is for a project located within the North College Urban Renewal Plan, the North College Citizen Advisory Group (CAG) must make a recommendation by a majority vote. The CAG meets on a monthly basis and the proposed project TIF application will be scheduled on the agenda once the financial analyses are completed and the URA staff has adequate information and achieved a staff recommendation to present. Feedback from community‐based input may require modifications that delay approval and even require additional financial analysis. If the goals of the URA are not clearly met and staff doesn’t make a favorable recommendation to the Board, the application will be denied and will not move forward to the Board for approval. The applicant may apply again if the project changes financially, present a different project than previously submitted or with a change in the TIF calculation based on project differences. Once the URA staff and any community‐based organization have recommended the application, URA staff will work with the applicant to create a project specific Redevelopment Agreement (RA) that will define the terms of the TIF assistance for the project. Once a final RA is agreed to URA staff will schedule the application for consideration at a hearing before the Board. The Board typically meets bimonthly on Tuesday evenings after City Council meetings. Approval of the project at any point in the process, short of the Board meeting, is no guarantee that the project will ultimately receive any TIF assistance. The Board will consider the application at the scheduled meeting. The Board will decide whether or not to support the application. The support may include: o Adoption of the RA, o Denial of the application, or o Conditional approval of the RA and the Board will provide clear direction on suggested terms. The Board will also clearly indicate if the conditions are mandatory for approval or optional enhancements. 7 All Redevelopment Agreements are valid for a 12 month period beginning on the date the agreement was executed, unless otherwise stated in the agreement. $0 100% PS-26 Teaching Tree - Sliding Scale Fee Tuition Assistance Request $60,000 Recommendation $60,000 $60,000 (HSP grant) $0 100% PS-27 Volunteers of America - Home Delivered Meal Program Request $29,200 Recommendation $29,200 $29,200 (HSP grant) $0 100% PS-28 Women’s Resource Center: Dental Connections Request $44,890 Recommendation $32,890 $32,890 (HSP grant) $12,000 73% A summary of the Commission's funding recommendations by category is presented in the following table: Recommended Funding % of Total Category $1,177,164 57.0% Affordable Housing 689,458 33.4% Public Services 198,832 9.6% CDBG Administration $2,065,454 100.0% Total The CDBG Commission has recommended all (100%) of the available funding amount of $2,065,454 be allocated. The Commission has recommended that one of the three affordable housing proposals receive full funding, one to receive 99% of its request; while the third proposal is recommended for no funding. The Commission has recommended that 13 of the 28 public service proposals receive full funding; 11 proposals receive partial funding (ranging from 43% to 94%); and 4 proposals to receive no funding. The justifications for the Commission’s recommendations can be found in Attachment 5, Minutes of the May 12, 2011, meeting. . HOME Program Resolution 2011-064 establishes the major funding categories within the HOME Program for the FY 2011 Program year, which starts on October 1, 2011. Specific projects for the use of HOME funds will be determined in November as a result of the 2011 fall funding cycle of the competitive process for the allocation of the City’s financial resources to affordable housing programs/projects and community development activities. The FY 2011 HOME Grant is $599,259, HOME Program Income for 2011 is $45,093, for a total of $644,352. The following table summarizes the sources of HOME funding for FY 2011. $2,526 89% PS-12 Elderhaus: Mindset Therapy Center Program Request $23,592 Recommendation $23,592 $23,592 (CDBG grant) $0 100% PS-13 Family Center: Sliding Scale Fee Tuition Request $30,000 Recommendation $30,000 $30,000 (HSP grant) $0 100% PS-14 Food Bank for Larimer County: Kids Café Program Request $21,000 Recommendation $21,000 $21,000 (HSP grant) $0 100% PS-15 Homelessness Prevention Initiative: Emergency Rent Assistance Request $45,000 Recommendation $45,000 $45,000 (HSP KFCG grant) $0 100% PS-16 Larimer Center for Mental Health – Community Dual Disorders Treatment Request $27,082 Recommendation $14,000 $14,000 (HSP grant) $13,082 52% Ps-17 Larimer Center for Mental Health – Employee Assistance Murphy Center Request $16,012 Recommendation $0 $0 $16,012 0% PS-18 Matthews House - Transition Program Request $27,639 Recommendation $27,639 $27,639 (HSP grant) $0 100% PS-19 Neighbor to Neighbor -Housing Counseling Request $69,205 Recommendation $40,175 $10,175 (HSP grant) $30,000 (HSP KFCG grant) $29,030 58% PS-20 Neighbor to Neighbor - Rent Assistance Request $25,000 Recommendation $25,000 $25,000 (HSP KFCG grant) $0 100% Recommendation Source(s) of Funding Unfunded Balance Percent of Request Funded PS-1 B.AS.E. Camp: Sliding Scale Fee Tuition Request $57,000 Recommendation $57,000 $57,000 (CDBG grant) $0 100% PS-2 Boys & Girls Club: After-school and School- break Child Care and Youth Program Request $19,892 Recommendation $18,644 $18,644 (HSP grant) $1,248 94% PS-3 Care – Supportive Services Program Request $25,000 Recommendation $0 $0 $25,000 0% PS-4 CASA – Program Support Request $14,976 Recommendation $9,360 $9,360 (HSP grant) $5,616 63% PS-5 Catholic Charities : Senior Outreach Request $12,000 Recommendation $11,331 $11,331 (HSP grant) $669 94% PS-6 Catholic Charities the Mission and Supportive Services Request $75,000 Recommendation $40,000 $40,000 (CDBG grant) $35,000 53%