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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/15/2011 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE ODATE: November 15, 2011 STAFF: Wanda Krajicek AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 6 SUBJECT Consideration and Approval of the Minutes of the October 18 and November 1, 2011, Regular Meetings. October 18, 2011 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, October 18, 2011, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Horak, Kottwitz, Manvel, Ohlson, Poppaw, Troxell and Weikunat. Staff Members Present: Atteberry, Krajicek, Daggett. Citizen Participation Debra Goodson, 912 Wood Street, discussed the necessary moving of the mobile homes at the Bender Mobile Home Park. She requested financial assistance from the City and developer for relocation costs. Wiley McCallum, 912 Wood Street, opposed the effect of the purchase of the Bender Mobile Home Park by Sidehill Investments on its residents. Arnie Combs, 912 Wood Street, requested support for the Bender Mobile Home Park residents. Michael Chalona, Parks and Recreation Board Chairperson, requested Council support of Item No. 12, First Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. Rob Cagan, Parks and Recreation Board Vice-Chairperson, thanked staff and requested Council support of Item No. 12, First Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. Dawn Thies, Parks and Recreation Board, thanked staff and requested Council support of Item No. 12. Sarah Burnett, 714 Gilgalad Way, opposed restrictions on public comment regarding potential quasi- judicial matters. Joann Ginal, 316 East Magnolia, Human Relations Commission, thanked Council for its contributions to the community and announced the Make It Stop anti-bullying summit on Wednesday, November 9th at the Atzlan Center. 83 October 18, 2011 Vivian Armendariz, 820 Merganser Drive, expressed concern about the use of power wheel chairs in bicycle lanes. Citizen Participation Follow-up Councilmember Poppaw thanked the Human Resources Commission for announcing the anti- bullying event. She noted Council will be participating in annual reviews on November 9 and will be unable to attend. Councilmember Horak requested an update on the Bender Mobile Home Park issue. He supported Council consideration of allotting a budget line item to housing relocation costs. He discussed the reintroduction of the sidewalk committee to address safety issues. He suggested changes be made to development review proposal notification signs and stated he may propose funding for citizen assistance regarding development review. Councilmember Kottwitz requested an update on the Bender Mobile Home Park. Karen Cumbo, Director of Planning, Development, and Transportation Services, replied the City’s Neighborhood Services staff has continued to work with residents and Neighbor-to-Neighbor. A community meeting will be held tomorrow. The County has offered to help with coordination; however, funding is yet undetermined. The developer’s role is also yet undefined. Councilmember Horak noted the property cannot be annexed until that action is requested by the landowner. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the September 20, 2011 Regular Meeting. 7. Second Reading of Ordinance No. 128, 2011, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Veterans Plaza Project at Spring Canyon Community Park. The Veterans Plaza at Spring Canyon Community Park creates a public venue, bringing community members together to recognize and commemorate the sacrifices and dedication of service members who have served our country. The plaza is located on approximately three acres of land near the main entrance of the Park at Horsetooth Road. This Ordinance, unanimously adopted on First Reading on October 4, 2011, will appropriate funding in the amount of $60,000 for the final phase of the Veterans Plaza project 8. Second Reading of Ordinance No. 129, 2011, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the Mason Corridor Bus Rapid Transit Project (Phase V). Right-of-way acquisition continues for the Mason Express Bus Rapid Transit (BRT) Project. This Ordinance, unanimously adopted on First Reading on October 4, 2011, pertains to the final acquisition phase of the BRT Project and is comprised of 15 separate properties ready 84 October 18, 2011 for the acquisition stage. The City Council authorization specified by this Ordinance begins the first step of the City’s acquisition process for the property interests within this phase. 9. Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. This Ordinance, unanimously adopted on First Reading on October 4, 2011, amends the City Code to require that ballots in a City mail ballot election be mailed to inactive registered electors who voted in the last presidential election in addition to all active registered electors. In addition, the Code will be amended to require that the City pay postage on all voted ballots returned by mail. Both amendments are anticipated to increase voter participation. This Ordinance has been amended on Second Reading to add language clarifying that ballots will be mailed to inactive registered electors with a status designation of “inactive-failed to vote”, but who voted in the last presidential election. 10. Postponement of Second Reading of Ordinance No. 131, 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 to December 20, 2011. This item is being postponed to December 20, 2011 to allow time for public outreach. 11. First Reading of Ordinance No. 132, 2011, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. This Ordinance authorizes the Purchasing Agent to enter into a lease-purchase agreement with Pinnacle Public Finance for the lease-purchase of vehicles and equipment. The cost of the items to be lease-purchased is $1,495,000. Payments at the 2.35% interest rate will not exceed $ 317,787 in 2012. Money for 2012 lease-purchase payments is included in the 2012 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 2.9%. A competitive process was used to select Pinnacle Public Finance for this lease. Staff believes acceptance of this lease rate is in the City's best interest. 12. First Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. This Ordinance will modify the duties of the Parks and Recreation Board as contained in Section 2-338 of the City Code to broaden the scope of the Parks and Recreation Board’s functions to allow the Board to promote awareness and appreciation of the value of parks and recreation as a resource contributing to the quality of Fort Collins. 85 October 18, 2011 13. First Reading of Ordinance No. 134, 2011, Amending Chapter 23, Article V, of the City Code to Add New Provisions Related to the Naming of City Properties and Facilities. This Ordinance establishes a process for the City Council’s responsibilities in the naming of City facilities or properties. The process defines how appropriate names are selected when a facility is to be named for a person (living or dead), or for an organization (e.g., foundations) or corporations. This Ordinance establishes Council’s role in such facility naming and establishes the City Manager’s authority to name other facilities. In addition to this Ordinance, an Administrative Policy is outlined which establishes staff’s role in the naming of facilities in other circumstances. 14. Resolution 2011-093 Authorizing the City Manager to Execute a Grant Award and Agreement with the U.S. Department of Transportation for a Grant Pertaining to the Fort Collins-Loveland Municipal Airport. This Resolution authorizes the City Manager to execute a grant agreement with the United States Department of Transportation. The grant is in the amount of $221,500. The grant will be used to fund the Airport’s efforts to address the air service needs of the community through completion of an air service development, communications and marketing plan for the Airport and development of a plan for the wingless flight program. 15. First Reading of Ordinance No. 135, 2011, Authorizing the Appropriation of 2012 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. The 2012 annual operating budget for the Airport totals $779,550, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($85,000 from each city), and interest earnings. This Ordinance authorizes the City of Loveland to appropriate the City of Fort Collins contribution, which is a 50% share of the 2012 Airport budget and totals $389,775. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $608,500 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2012 Airport capital funds, totaling $1,217,000, will be used to continue major Airport improvements such as taxiway and apron rehabilitation and some funds are slated for utility master planning and design engineering to accommodate Airport business development. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 128, 2011, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Veterans Plaza Project at Spring Canyon Community Park. 86 October 18, 2011 8. Second Reading of Ordinance No. 129, 2011, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the Mason Corridor Bus Rapid Transit Project (Phase V). 9. Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. Ordinances on First Reading were read by title by City Clerk Krajicek. 11. First Reading of Ordinance No. 132, 2011, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. 12. First Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. 13. First Reading of Ordinance No. 134, 2011, Amending Chapter 23, Article V, of the City Code to Add New Provisions Related to the Naming of City Properties and Facilities. 15. First Reading of Ordinance No. 135, 2011, Authorizing the Appropriation of 2012 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. 19. First Reading of Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012. 20. Items Relating to Utility Rates, Fees and Charges for 2012. A. First Reading of Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. B. First Reading of Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. C. First Reading of Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges. D. First Reading of Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. E. First Reading of Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. 87 October 18, 2011 F. First Reading of Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. G. First Reading of Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. Councilmember Troxell pulled Item No. 9, Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Staff Reports City Manager Atteberry discussed the Alliance for Innovation Big Ideas Conference, hosted by the City. The Conference provided the opportunity to showcase Fort Collins and discuss the future of City Managers, cities and their relationships with City Councils. Councilmember Reports Councilmember Poppaw attended the Homelessness Prevention Initiative fundraiser and thanked members for their work in the community. Councilmember Manvel discussed his visit the Valmont Bicycle Park in Boulder. He stated the Poudre Heritage Alliance will be meeting on October 26th to discuss the potential National Heritage designation for the Poudre River. Mayor Weitkunat discussed the Urban Planning Design awards and congratulated the eleven winners. Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012, Adopted on First Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY The Annual Appropriation Ordinance for the Downtown Development Authority is presented for First Reading. Ordinance No. 137, 2011, sets the Downtown Development Authority 2012 budget amount of $814,380 to be appropriated for fiscal year 2012 for the administrative operations 88 October 18, 2011 budget; sets the amount of $1,652,346 for debt service payments to be appropriated for fiscal year 2012; and sets the 2012 Mill Levy for the Fort Collins, Downtown Development Authority at five (5) mills, unchanged since 2002. The approved budget becomes the Downtown Development Authority’s financial plan for 2012. This Ordinance does not appropriate funds for projects or programs of the DDA funded with bond proceeds. Examples of projects and programs funded with bond proceeds include annual holiday light display, facade improvements, the enhanced alley annual maintenance costs, ice rink, and participation in the river district improvement projects, etc. BACKGROUND / DISCUSSION The Downtown Development Authority (the “DDA”) was created in 1981 with the purpose, according to State statue, of planning and implementing projects and programs within the boundaries of the DDA. By state statue the purpose of the ad valorem tax levied on all real and personal property in the downtown development district, not to exceed five (5) mills, shall be for the budgeted operations of the authority. The DDA and the City adopted a Plan of Development that specifies the projects and programs the DDA would undertake. In order to carry out the purposes of the State statue and the Plan of Development the City, on behalf of the DDA, has issued various tax increment bonds, which require debt servicing. The DDA staff and Budget Committee are very cognizant of the changed revenue environment of the organization and economic conditions, and have made a strong effort to budget conservatively to reflect this climate. FINANCIAL / ECONOMIC IMPACTS The Fort Collins Downtown Development Authority is requesting approval of the DDA Operations and Maintenance budget, for fiscal year 2012, in the amount of $814,380. It is also requesting approval of the DDA debt payment commitments in the amount of $1,652,346 for 2012 obligations. Uses: Personnel Services: $452,768 Contractual Professional Services: 318,114 Purchased Supplies and Commodities: 23,635 Other: 19,863 Total $814,380 The DDA debt service fund is projected to have sufficient revenue to meet the required debt service payments for 2012. Uses: Debt Payment: 2012 $1,652,346” 89 October 18, 2011 Matt Robenalt, Downtown Development Authority Executive Director, stated this Ordinance sets the DDA mill levy and appropriates its operations and maintenance budget. Councilmember Horak asked if the DDA bonds currently being paid off went through the City of Fort Collins. Mr. Robenalt replied they were authorized by the City last year. Councilmember Horak asked why the City cannot continue authorizing DDA bonds. Kathy Cardona, Downtown Development Authority Financial Coordinator, replied negotiations with the City regarding the 2010 bond issuance resulted in concern about the City’s level of debt reserve. The City’s Finance Director suggested seeking outside placement. However, negotiations with the City’s finance department will occur again this week. Mike Beckstead, Chief Financial Officer, stated the City is open to entertaining the idea of supporting DDA’s financing requirements. The General Fund reserve was not sufficient to support the $12.5 million bond placement. The current bond placement request of $4.5 million seems more possible. Councilmember Troxell made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 137, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Items Relating to Utility Rates, Fees and Charges for 2012, Adopted on First Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY A. First Reading of Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. B. First Reading of Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. C. First Reading of Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges. D. First Reading of Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. E. First Reading of Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. F. First Reading of Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. 90 October 18, 2011 G. First Reading of Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. The following overall monthly rate increases are recommended for 2012. % Increase Water 6.0% Wastewater 8.0% Electric 8.3% The water and wastewater rate increases are across the board to all customer classes. There is no change in the monthly rate for stormwater. City Council has requested additional data and time to study proposed changes to the electric residential energy service rate (hereafter referred to as “RESR”). Staff will return to Council on November 15, 2011, to recommend changes to the RESR. All other electric rates are included in the electric rate increase referenced above. The electric rate increases are proposed to vary by customer class from 3.9% to 15.9%. The proposed changes will impact individual electric customers more or less than the customer class averages. With the water and wastewater rate changes contained in the proposed ordinances, a typical single family customer’s monthly bill will increase $4.44 from $138.66 to $143.10 or 3.2%. If revisions to the RESR are approved by Council at a later date, the typical residential customer will likely see an additional increase in costs. The later change will depend on the rate form option preferred by City Council. Changes to the water and wastewater plant investment fees and electric development fees will also go into effect if the proposed ordinances are approved. A 4.7% increase in water plant investment fees (PIFs) and a 1.2% increase in stormwater PIFs are proposed. A 3% reduction in wastewater PIFs is recommended. On average, electric development fees will increase from 1% - 3.5% for residential and decrease less than 1% for commercial. Several additional Code modifications and clarifications are also contained in the ordinances above. BACKGROUND / DISCUSSION Monthly Utility Rates The recommended 2012 rate increases differ from the rates that were proposed in the original 2011- 2012 Budget. The changes are summarized in Attachment 1 and further explained by the staff memos included as Attachments 2 and 3. All proposed rates would be effective for meter readings on or after January 1, 2012. A. Monthly Water Rates (Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and Charges.) 91 October 18, 2011 Staff proposes a 6% water rate increase. The increase is across the board and applies to all rate classes. With the proposed rate, a typical single family residential customer’s monthly bill will increase 6% as shown in the following table: Single Family Typical Use 2011 Monthly Water Bill Proposed 2012 Monthly Water Bill $ Increase % Increase January 5000 gallons $24.13 $25.58 $1.45 6% July 21,000 gallons $65.11 $69.04 $3.93 6% Monthly Average* $35.87 $38.05 $2.18 6% *Average based on seasonal use of 117,131 gallons per year Although water rates were increased 3% in 2007, 2010 and in 2011, total Water Fund revenues decreased 23% between 2006 and 2010. The reduction in use is thought to be a combination of conservation, weather and economic factors. While water use is down, the vast majority of the costs of operating the water system are fixed and do not vary based on customer use. The proposed 2012 rate increase is required to fund operations, capital improvements and maintain debt service coverage. Staff has increased projections for Water Fund capital projects needs between 2013 and 2020 by $33 million. Most of this increase is for distribution system replacement ($22 million). The distribution system project increase is a result of the preliminary data from the asset management program. The increase is not related to Halligan Reservoir which is to be funded from the Water Rights Reserve. The Water Rights Reserve is funded by developers’ cash-in-lieu-of water rights payments and is restricted to the purchase of water rights and water storage only. See Attachment 2 for additional detailed explanation of the water rate increase. In addition, staff is proposing to eliminate unmetered construction water for customers with planned water services with meters greater than 1-inch. Staff is also recommending a monthly charge for 3/4-inch and 1-inch construction water service. Construction water will remain unmetered for 3/4- inch and 1-inch services but instead of a flat one time fee on the building permit (equivalent to 1.5 times the base charge for the future account), a monthly account will be established and billed a flat charge based on estimated construction use of 7000 gallons per month. Monthly billing will continue until the permanent meter is set. These changes are proposed to eliminate, or at least reduce, the extended over use of the unmetered construction service and will better reflect the cost of the water provided. Construction Water Frequency of Billing 3/4-inch Meter 1-inch Meter Current 2011 One time charge $ 20.40 $ 50.93 Proposed 2012 Monthly charge $ 25.46 $ 48.55 Includes PILOTs 92 October 18, 2011 B. Monthly Wastewater Rates (Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges.) Staff proposes an 8% wastewater rate increase for 2012. The increase is across the board and applies to all rate classes. With the proposed increase, a typical residential customer’s bill will increase from $28.59 to $30.88 or $2.29 per month. The typical customer is based on 4,800 gallons of winter quarter water use. Council previously approved a series of annual wastewater rate increases starting in 2008. The prior rate increases, as well as the proposed 2012 increase, are necessary to fund wastewater operations and meet the increase in long term debt service obligations for the now completed capital project which replaced the trickling filter, made odor control improvements and prepared for future regulatory requirements at the Mulberry Water Reclamation Facility. C. Monthly Electric Rates (Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges.) Based on Council response at the September 13, 2011 Work Session, the electric rate ordinance does not contain any changes to the RESR, the rate applicable to the majority of residential customers. The changes to the RESR will be presented in a separate ordinance on November 15, 2011 and will contain several rate form alternatives. The ordinance for consideration at this meeting pertains only to the Residential Demand, Commercial (General Service, General Service 25, General Service 50), Industrial (General Service 750) and Traffic rates. Fort Collins’ wholesale and retail electric rates are among the lowest in the region and nation. This will continue to be true following the 8.3% electric rate increase proposed for 2012. The 8.3% increase is the system average and will not be equally applied to all customer rate classes. Based on a cost-of-service study, the proposed rates vary by rate class as follows: Proposed Rate Class Increases for 2012 Individual customers will vary from the class average. Summer increases (June, July and August) will be greater than average. RESR – Not included in Ordinance No. 142, 2011 6.0% Residential Demand Rate 15.9% 1. General Service (small commercial less than 25 kW) 3.9% 1. General Service 25 (small commercial between 25-49 kW) 15.5% General Service 50 (medium commercial between 50-749 kW) 8.7% General Service 750 (large com/industrial greater than 749kW) 11.0% Traffic Signals 11.3% Floodlights 0.0% Average System Increase 8.3% 1. New rate classes proposed for 2012 93 October 18, 2011 4.8% of the 8.3% system-wide increase is due to a 6.4% increase in Platte River Power Authority’s purchase power rates. In addition, Platte River’s wholesale rate will be seasonal, with higher rates in June, July and August. Platte River’s 2012 purchase power rate increase is due to several key factors: • Reduced surplus sales • Increased operating and maintenance costs • Increased financing and depreciation costs as new projects are placed into service • Reduced interest income – due to low interest rates and lower cash reserves The remaining 3.5% of the 8.3% is required to reduce the use of Light and Power’s reserves to cover the cost of system improvements and replacements. While the reduction of reserves has been intentional, expenditures in the Light and Power Fund have exceeded revenues each year since 2007. Even following the proposed 3.5% increase, expenditures are projected to exceed revenues for 2012. The larger commercial classes are experiencing a greater than average increase due to the shift of purchase power costs from demand charges to energy charges in Platte River’s new rate form. Those customers with larger load factors, typically larger commercial and industrial customers and also the traffic signal system, will have larger than average increases in the purchase power components of their rates. (Load factor measures the consistency of power use over time.) Although the last cost-of-service study showed that the residential demand (“RD”) rate was 18% under cost-of-service, all rate classes were limited to a 10% increase in 2011. The 2012 increase brings the RD rate class up to full cost-of- service. The rate has traditionally been selected by high- use customers such as those who exclusively heat their homes with electricity. The increase to this rate will make the RESR more economical for many of the existing RD customers in 2012. Staff is also recommending that the RD rate be available only to those customers providing documentation that their home is heated entirely with electric energy. These changes will begin a phase-out of the RD rate. Electric Rate Form Changes Changes in the electric rate forms are necessary to align rates in support of the City’s Energy Policy and Climate Action Plan goals. By adopting rate forms to incentivize customers to conserve and use energy more efficiently and by providing energy conservation assistance and programs to our customers, the City will more likely be able to achieve its policy goals. In addition, successful implementation of these tools will delay or defer the expense of constructing additional generation resources. Rate form changes are also needed to pass through the seasonal cost differentials that will be charged by Platte River Power Authority beginning in 2012. All rates will have higher costs in the summer (June, July and August) than during the remaining nine “non-summer” months. Consistent with Platte River, the recommended rates also shift a greater proportion of the rate from the demand charges to energy charges. 94 October 18, 2011 Rate form options were presented to the Council Finance Committee on August 15, 2011 and to the full Council at work sessions on September 13, 2011 and October 11, 2011. Based on Council’s responses to the questions posed at the work sessions, there is a delay in the ordinance making changes to the RESR until November 15, 2011. Several options for the RESR ordinance will be presented at that time. The changes recommended for the RD and Commercial/Industrial rates seemed to have wide-spread support at the September 13 Work Session. The following summarizes changes to the electric rate forms that are included in the proposed electric rate ordinance. • Residential Demand: The residential demand rate will be increased to the cost-of-service and energy charges will reflect the seasonal differential. The rate will be available only to customers who heat their residences exclusively with electricity. • Small /Medium Commercial: The General Service rate is currently one rate class serving all commercial customers with average monthly demands of less than 50 kW. Staff is proposing that it be split into two rate classes beginning in 2012. N General Service - energy-only seasonal rate for customers with average monthly demands of less than 25 kW N General Service 25 - energy/demand seasonal rate for customers with average monthly demands of between 25 and 49kW • Large Commercial / Industrial: The recommended rate form changes for the GS50 and GS750 rate classes are due to Platte River’s seasonal wholesale rate. N General Service 50 – add seasonal energy and coincident demand components for customers with average demands of between 50-749 kW N General Service 750 – add seasonal energy and coincident demand components for customers with average demands of 750 kW and greater Additional Amendments to Electric Article and Rates • Wholesale Transactions: Staff is recommending the addition of a Code section and definition to clarify terms of wholesale transactions and to specify that the retail rates, requirements and electric development fees do not apply to wholesale purchases. • Clarification of Net Metering Credit: Staff is recommending that the rate schedule specify that credits for net excess generation due to net metering will be based on the summer season retail energy charge as reflected in the new rate structure. • Clarification of Parallel Generation Credit: Staff is recommending that the rate tariff schedule specify that credits for parallel generation delivered to the utility will be based on Platte River Power Authority’s avoided cost rate. • Clarification of Distribution Facilities Demand: The proposed change more fully defines distribution facilities demand for the large commercial and industrial rate classes and 95 October 18, 2011 permits the Utilities Executive Director to use an alternative method to recover a customer’s cost-of-service share of distribution demand if the costs associated with serving a customer are not fully recovered by the standard rate. Monthly Rate Increase Summary The following chart summarizes the impact of the proposed rate changes on a typical single family residential customer: Typical Residential Customer – Monthly Utility Bill Current 2011 Estimated 2012 $ Increase % Increase Electric 700 kWh/mo $59.94 $59.94 * * Wastewater 4,800 gal/mo WQA $28.59 $30.88 $2.29 8.0% Stormwater 8,600 sq.ft. lot, light runoff $14.26 $14.26 $0.00 0.0% Water 117,131 gal/yr $35.87 $38.03 $2.15 6.0% Total Estimated Average Monthly Utility Bill $138.66 $143.10 $4.44 3.2% * The 2012 electric RESR will not be considered by Council until a later Council meeting and therefore will not be effective as of January 1, 2012. A change, averaging 6% is expected to be effective February 1, 2012. The following charts compare Fort Collins Utilities’ monthly rates to others along the Front Range. The electric rate shown for Fort Collins for 2012 is the current 2011 rate. A change to the RESR is expected to be effective in February. The average change to the residential energy rate class is projected to be 6%. Plant Investment Fees (PIFs) and Electric Development Fees City Code requires staff to present water, wastewater and stormwater plant investment fees to Council for approval no less than every other year. These fees were last changed in 2009 effective on January 1, 2010. Staff is recommending changes to each of the wet utility PIFs. Water and Stormwater PIFs are increasing 4.7% and 1.2% respectively. Wastewater PIFs are recommended to decrease 3%. Electric development fees are also required to be approved by City Council no less than every second year, although historically staff has recommended annual changes. The current electric development fees were approved by Council in 2010 and were effective January 1, 2011. 96 October 18, 2011 Staff is recommending the following changes to be effective on January 1, 2012. A. Water Plant Investment Fees (Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees.) The water plant investment fees were developed to recover the current value of past investment and the current value of future growth-related investment through 2040. This method includes calculating net water system equity, capacity units and determining the net system equity per unit. The Water PIFs are calculated to increase an average of 4.7% for 2012. There are two major factors influencing the increase. First, projected capital improvements related to regulatory requirements have been allocated to the PIF for that portion of the improvements that will serve new growth. Other revisions have been made to the long range capital improvement plan which also impacted the Water PIF calculations. Together, these capital changes have increased the PIF requirement. The second factor offsets the increase. In 2009, detailed information was not available to classify the construction work in progress. The decision was made to treat it all as backbone related capital additions. This overstated the 2010 PIF requirement. Since that time, additional reporting is available to clearly classify the work in progress. This resulted in a reduction in equity of the backbone system. Water PIF charges for a typical single family lot (8600 sq ft) would increase from $3,826 to $4,084 or $258. The following table shows the proposed increases for water PIFs. Water Plant Investment Fees 2011 2012 Existing Proposed % Change Single Family Residential: Domestic Interior Use - Flat Charge $ 730 $ 730 0.0% Exterior Use - $/Sq ft $ 0.36 $ 0.39 8.3% Duplex and Multi Family: Domestic Interior Use - Charge per Unit $ 490 $ 510 4.1% Exterior Use - $/Sq ft $ 0.27 $ 0.27 0.0% Non-Residential by Meter Size 3/4" $ 7,530 $ 7,880 4.6% 1" $ 21,730 $ 22,750 4.7% 1-1/2" $ 45,300 $ 47,410 4.7% 2" $ 69,070 $ 72,290 4.7% 3" $ 157,920 $ 165,290 4.7% 4" and above assessed on individual basis B. Wastewater/Sewer Plant Investment Fees (Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees.) 97 October 18, 2011 The wastewater plant investment fees were developed to recover the current value of past investment and the current value of future growth-related investment through 2040. This method includes calculating net wastewater system equity, capacity units and determining the net system equity per unit. The Wastewater PIFs are calculated to decrease 3% for 2012. Like the Water PIF, this reduction is in part due to a change in the basis for calculating construction work in progress. Other recent revisions to the long range capital improvement plan have reduced the Wastewater PIF calculations. Wastewater PIF charges for a single family lot would decrease from $3,550 to $3,440, a reduction of $110. The following table shows the proposed changes. Wastewater Plant Investment Fees 2011 2012 Existing Proposed % Change Single Family Residential $ 3,550 $ 3,440 -3% Duplex and Multi Family, per unit $ 2,490 $ 2,410 -3% Non-Residential by Water Meter Size 3/4" $ 7,100 $ 6,880 -3% 1" $ 17,880 $ 17,300 -3% 1-1/2" $ 31,490 $ 30,480 -3% 2" $ 55,290 $ 53,520 -3% 3" $ 150,130 $ 145,310 -3% 4" and above assessed on individual basis C. Electric Development Fees (Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges.) Electric development fees recover both actual on-site costs (building site charges) and allocated off- site costs (electric capacity charges) to serve commercial or residential development. These fees are typically adjusted annually to reflect changes in costs. Proposed 2012 fees will increase slightly for some developments (1%-3%) and decrease slightly for others. The table below shows the changes for a typical single family lot and a model commercial development. Typical Single Family Lot 8600 square feet, 70 foot of street frontage, 150 amp service, 4/0 secondary service Current 2011 Proposed 2012 $ Change % Change $3,139 $3,233 $94 3.0% Model Commercial Development 82,000 sq ft, 1900 ft street frontage, 250 ft primary srv, 600 amps, 208Volt, 3-phase, 1- transformer 98 October 18, 2011 Current 2011 Proposed 2012 $ Change % Change $31,076 $30,981 -$95 -0.3% D. Stormwater Plant Investment Fees (Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees) The Stormwater PIFs are recommended to increase 1.2% in 2012. The increase represents a $7.3 million increase in capital facilities added since the last study. However, annexation has caused an increase in total developed and developable acres which results in an increased divisor in the calculation. The two changes result in a modest increase of 1.2%. The PIF will increase from $6,313 per acre to $6,390 per acre. Stormwater PIF charges for a typical single family lot would increase from $1,069 to $1,082, an increase of $13. PIF Change Summary The following chart summarizes the impact of the proposed PIF and development fee changes on a typical residential lot: PIF Changes for Typical Single Family Current 2011 Proposed 2012 Change % Change $ Water1 Raw Water2 Wastewater Stormwater3 Electric1 Total $3,826 $5,203 $3,550 $1,069 $3,139 787 $4,084 $5,203 $3,440 $1,082 $3,233 $17,042 6.7% 0.0% -3.1% 1.2% 3.0% 1.5% $258 $0 (-$110) $13 $94 $255 1Typical, based on lot size of 8,600 sq. ft.; 70-foot street frontage 2 No increase for Raw Water 3 8,600 sq. ft. lot plus estimated 6,156 sq. ft common area and right-of-way; .5 run off coefficient Next Steps: November 1, 2011 City Council Meeting October 18, 2011 • First Reading of Service Charges Ordinance with increases for after-hours service charges and a monthly fee for manual meter reading for customers who opt out of the Advanced Meter Fort Collins project. December 6, 2011 City Council Agenda • Second Reading of Residential Energy Service Rate Ordinance • Second Reading of Service Charges Ordinance January 1, 2012 • Effective date of the seven Ordinances included in this agenda item summary and for changes in service charges. (Monthly rate ordinances are effective for billings with meter readings on or after this date.) February 1, 2012 • Proposed effective date of Residential Energy Service Rate Ordinance. (Effective for billings with meter readings on or after this date.) FINANCIAL / ECONOMIC IMPACTS The rates are projected to increase 2012 annual operating revenues of the Water Fund by 6%, the Wastewater Fund by 8% and the Light and Power Fund by 8.3%. (The short delay in adopting the RESR increase will slightly reduce the increase for Light and Power.) The projected revenue from the rate increases is included in the revised 2012 budget projections. The increases are necessary to fund purchase power, operations and system additions and replacements and to meet debt service requirements. The proposed water and wastewater rate ordinances will increase costs for a typical residential customer by $4.47 per month if such customer’s water use remains unchanged. An additional change to the RESR at a later date will change the total increase. That amount will depend on the rate form option selected by Council at the November 15, 2011 Council meeting. Utility programs can help customers to reduce their water and electric use and to lessen the financial impact of the rate increases. ENVIRONMENTAL IMPACTS Funding from the proposed electric rate increase will allow the Utilities to continue programs and services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan. Accurate seasonal price signals may delay/ avoid the need for additional peak electric generation. Water and wastewater rates provide funding for conservation programs and environmental regulatory compliance. “ 100 October 18, 2011 Ellen Switzer, Utilities Financial Operations Manager, discussed the Ordinances, including the proposed increases in monthly utility rates: 6% for water, 8% for wastewater, and 8.3% for electricity, which will vary by rate class. Bills can be reduced by reductions in consumption. Despite the rate increases, revenues will continue to be less than expenses in 2012. Operations and maintenance expenses, however, have decreased. John Anderson, Fort Collins resident, requested real world solutions for sustainability. Eric Sutherland, 3520 Golden Currant, expressed concern regarding using electric rate increases to pay for operations and maintenance expenses. Councilmember Manvel asked about Switzer’s statement that operations and maintenance costs have decreased. Switzer clarified that the City’s operations and maintenance costs are down. Councilmember Kottwtiz asked if the idea to borrow from the water reserves to fund the Discovery Museum had previously been discussed. Switzer replied it is the same fund that made the loan to the Discovery Musem; however the loan is still viewed as an asset in the reserves and has no effect on the rate increase. Councilmember Kottwitz asked for clarification regarding rate increases which will occur as a result of water conservation. Bill Switzer, Utility Rate Analyst, replied the water rates are tiered which may result in a higher rate but lower overall bills. Councilmember Kottwitz requested additional information regarding the extra charge for residential customers to opt out of the AMI program. Councilmember Kottwitz requested a rough estimate of the increase in fees for construction water consumption changing from a flat fee to a monthly fee. Ms. Switzer replied the current charge is just over $20 for unlimited water, until the meter is set. The proposal would increase the fee to just over $25 per month, for an estimated use of 7,000 gallons per month. Councilmember Troxell asked how many water taps in Fort Collins belong to the City Utility. Ms. Switzer replied there are approximately 35,000 accounts as part of the City Utility. Councilmember Troxell asked if the other water districts within City limits are requesting 6% rate increases. Ms. Switzer replied she was unsure. Councilmember Troxell asked what measures have been taken to decrease systems costs. Brian Janonis, Utilities Executive Director, detailed various cost reduction measures. Mayor Pro Tem Ohlson asked about the City’s policy regarding electric heat in multi-family dwellings. Steve Catanach, Light and Power Operations Manager, replied plant investment fees are intended to be a cost recovery element and do take into account the added infrastructure required to support an all-electric development. 101 October 18, 2011 Mayor Pro Tem Ohlson asked for input regarding means by which consumers can be encouraged to conserve. Catanach replied the City’s Customer Information Program discussed the benefits of conservation, which is required by the State. Additionally, bills are reduced by conservation efforts, despite a customer’s rate potentially increasing. Councilmember Horak asked if PRPA has been consulted regarding references to increased wholesale rates. Assistant City Attorney Carrie Daggett, replied PRPA has been contacted; however, the references are more related to the City system. Councilmember Horak asked about the consequences of not approving the rate increases. Janonis replied some capital improvement projects and operations and maintenance expenses would need to be taken out of the budget. Councilmember Horak requested input on acquiring additional revenue in order to reduce future rate increases. Catanach replied efficiency in use of resources will help to control long-term costs. Mayor Weitkunat requested a concise explanation of the wastewater and water increase. Catanach replied part of the reason relates to the cost of rebuilding the failed Mulberry plant. Ms. Switzer replied the water increase is due to a decline in revenues and demand. Councilmember Manvel made a motion, seconded by Mayor Pro Tem Ohlson, to adopt Ordinance No. 138, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 139, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 140, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 141, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. 102 October 18, 2011 Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 142, 2011, on First Reading. Councilmember Kottwitz expressed concern about the commercial rates The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: Kottwitz. THE MOTION CARRIED. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 143, 2011, on First Reading. Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: Kottwitz. THE MOTION CARRIED. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 144, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. (**Secretary’s note: The Council took a brief recess at this point in the meeting.) Resolution 2011-094 Directing Certain Actions Be Taken to Improve Coordination and Consultation Between the City and Platte River Power Authority in Connection with the Dixon Creek Substation to Horseshoe Substation Transmission Line Project and for Future Projects, Adopted The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY This Resolution directs the City Manager and City Attorney to take certain follow up actions in light of recent discussions and analysis related to the Platte River Power Authority Dixon Creek Substation to Horseshoe Substation Transmission Line Project. The City Council discussed this issue at its adjourned meeting on October 11, 2011, and the Resolution calls for follow up work to: (1) address impacts from the proposed Project; (2) develop a set of policies and procedures for planning and consultation related to future Platte River projects; and (3) improve the City’s level of involvement in future infrastructure and specific project planning by Platte River. The Resolution also directs the City Manager to provide a copy of the Resolution to Platte River and the other Platte River member cities. 103 October 18, 2011 BACKGROUND / DISCUSSION At its October 11, 2011 meeting Council directed City staff to develop a resolution expressing the intent of the City Council that the City Manager and City Attorney work closely with Platte River staff, and that the City’s representatives on the Platte River Board of Directors work closely with their counterparts on the Platte River Board, in order to establish procedures and policies that will improve the level of coordination and communication regarding Platte River infrastructure and project planning. This direction grew out of a review of a proposed transmission line that crosses Pineridge Natural Area. The review was conducted by a consulting firm (SAIC) on behalf of PRPA and the City. Based on that review, Council concluded that the proposed alternatives to the existing project were not worthy of support at this time. However, Council desires improved communication and influence with respect to PRPA project infrastructure planning and implementation and directed staff to create a resolution that specifically referenced a number of areas for improved communication and collaboration, including: 1. formal notice to the general public and property owners in the vicinity of the proposed project; 2. formal notice to City representatives, including the Mayor and City Manager; 3. written description and analysis of alternative means to accomplish the project, alternative routes, configurations and designs, and analysis of related impacts, costs and benefits; 4. detailed analysis of natural resource, aesthetic and other impacts and evaluation of means by which such impacts may be avoided, minimized, or offset; and 5. a process for soliciting and considering input by City boards and commissions and the City Council. Included in the Resolution is direction to staff to develop a written plan to avoid, minimize, and offset impacts associated with the Pineridge crossing.” Eric Sutherland, 3520 Golden Currant, stated the City’s communication with PRPA should be improved. Joel Bladow, 6107 Ashton Court, Tri-State employee, commended Fort Collins utilities and supported the Resolution. Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt Resolution 2011-094. Mayor Pro Tem Ohlson expressed concern regarding references to City property and noted Council’s intention is to include City-owned property, as well as all property, public or private, located in the City’s growth management area. City Manager Atteberry confirmed that intent and stated the City and PRPA have a strong relationship. 104 October 18, 2011 Joe Wilson, PRPA General Counsel, stated that PRPA has agreed to work closely with the City to develop plans and procedures for future consultation and review of PRPA projects on or impacting City property. Assistant City Attorney Daggett suggested wording including “City-owned property and properties within the growth management area” and discussed the two sections of the Resolution which should include the phrase. Councilmember Manvel made a friendly amendment to change the wording in both referenced sections. Councilmember Troxell accepted the friendly amendment. Councilmembers and staff held a lengthy discussion regarding a systems approach versus a project- by-project approach. Mayor Pro Tem Ohlson requested follow-up regarding a suggestion he had made to work with PRPA to include viewsheds and wildlife habitat among its list of stated values. The vote on the motion to adopt Resolution 2011-094, as amended, was as follows: Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail, Postponed to November 1, 2011 The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY This Ordinance, unanimously adopted on First Reading on October 4, 2011, amends the City Code to require that ballots in a City mail ballot election be mailed to inactive registered electors who voted in the last presidential election in addition to all active registered electors. In addition, the Code will be amended to require that the City pay postage on all voted ballots returned by mail. Both amendments are anticipated to increase voter participation. This Ordinance has been amended on Second Reading to add language clarifying that ballots will be mailed to inactive registered electors with a status designation of “inactive-failed to vote”, but who voted in the last presidential election.” Councilmember Troxell noted including postage-paid return envelopes for City elections could cause some confusion as County elections would not include postage. Additionally, he requested information regarding the “inactive failed to vote”(IFTV) status and the process by which the County amends voter lists. Deputy City Clerk Harris replied the National Change of Address 105 October 18, 2011 Database is used by the County to check its voter registration addresses. Following each November election, the County sends a mailing to all inactive voters in an effort to update voter registration and change their status to possibly active, cancelled, or inactive undeliverable. Councilmember Troxell asked which list the City is using when it expands its mailing to include the IFTV voters. Harris replied the City’s current IFTV count is approximately 11,400 in Fort Collins. The City would be mailing to a subset of those voters who did vote in the 2008 presidential election. No inactive voters will receive ballots in 2013 as voters who did not vote in the 2012 presidential election would not receive ballots. Councilmember Kottwitz expressed concern about unintentional voter fraud and increased cost and suggested making the changes for one election before making permanent changes. Mayor Weitkunat asked about the ability to track returned ballots. Harris replied the City’s voter database will be used to segregate out the IFTV ballots for the number returned voted, undeliverable, and those unreturned. Mayor Pro Tem Ohlson stated he would have preferred the criteria for not receiving a ballot to be not having voted in two general, or even-year, elections in a row. Councilmember Manvel made a motion, seconded by Mayor Weitkunat, to adopt Ordinance No. 130, 2011, on Second Reading. Councilmember Manvel made a friendly amendment to change the language to reference mailing to inactive failed to vote electors who voted in at least one of the last two elections. Councilmember Kottwitz asked about the possibility of voters receiving ballots from the City but not the County. Harris replied there is a possibility that up to 20,000 voters could receive a ballot from the City but not the County if the County were conducting a normal mail ballot election. Councilmember Kottwtiz suggested instituting a pilot program. Councilmember Horak suggested postponing the item until November 1, 2011 and including a Resolution outlining the process. Councilmember Manvel made a motion, seconded by Councilmember Troxell, to postpone the item to November 1, 2011. Yeas: Weitkunat, Kottwitz, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. 106 October 18, 2011 Adjournment The meeting adjourned at 9:40 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 107 November 1, 2011 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, November 1, 2011, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll call was answered by the following Councilmembers: Horak, Kottwitz, Ohlson, Poppaw, Troxell and Weikunat. Councilmembers Absent: Manvel Staff Members Present: Atteberry, Krajicek, Daggett. Agenda Review (City Manager Atteberry withdrew from Consent Calendar consideration due to a conflict of interest relating to Item #20.) Deputy City Manager Jones withdrew Item C from Item #20 and 21, Items Relating to the Courtney Annexation and Zoning, and Items Relating to the Leistikow Annexation and Zoning. Citizen Participation Steve Yurash, 4821 Yellowstone Circle, discussed the attrition rate among City utility workers and encouraged gradually instituting a tiered residential energy rate structure. Debra Goodson, 912 Wood Street, encouraged the City, County and developer to provide relocation assistance and services for Bender Mobile Home Park residents. James Sack, 2945 Bassick Street, Food and Water Watch volunteer, thanked the Mayor and Council for a letter written to Senator Bennett regarding the Fair Farm Bill. Carolyn Hoagland, 2900 Querida Street, spoke in support of the Occupy Fort Collins protestors and peaceful relations with Police Services. Eric Sutherland, 3520 Golden Currant, opposed the petition for annexation for the Courtney Annexation. Devin Hirning, 2214 Fossil Creek Parkway, requested postponement of Item No. 21, Items Relating to the Leistikow Annexation and Zoning. 108 November 1, 2011 Shane Miller, 4325 Mill Creek, thanked the City and Police Services for restraint used in handling the Occupy Fort Collins protests. Rich Crisler, Occupy Fort Collins protestor, stated the trailer on the site of the Occupy protest is used for medical reasons, cooking, and warmth. He requested that protestors be allowed to sleep on site. Wade Turner, Senior Advisory Board Chairperson, announced the program “Growing Older in Fort Collins,” to be held at the Lincoln Center on November 10th. Myles Crane, Preety Sathe, Elaine Boni, and JoAnn Ginal, Human Relations Commission members, announced the “Make It Stop” anti-bullying summit to be held at the Northside Atzlan Center on November 9th. Cheryl Distaso, Center for Justice, Peace, and Environment, provided an update regarding relocation efforts for residents of the Bender Mobile Home Park and requested relocation assistance on behalf of residents. Benjamin David Gilmore, Occupy Fort Collins protestor, requested permission for the protestors to be allowed to stay at their current location. Citizen Participation Follow-up Mayor Pro Tem Ohlson noted the Occupy protest has occurred on private property and it has been mentioned that the property owner no longer wants that to continue. Deputy City Manager Jones stated staff members have been working with protest representatives regarding a protest location and confirmed that the property owner has not given permission for the protest to occur on the property. Councilmember Poppaw thanked the Human Relations Commission members for announcing the anti-bullying summit. Councilmember Kottwitz defended City Manager Atteberry and his integrity. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the October 4, 2011 Regular Meeting and the October 11, 2011 Adjourned Meeting. 7. Items Relating to Municipal Mail Ballot Elections. A. Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. 109 November 1, 2011 B. Resolution 2011-095 Directing the City Manager to Provide a Written Report to the City Council Following the April 2, 2013 Regular Municipal Election Regarding the Costs Associated With, and Turnout Achieved By, Mailing Ballots to Certain Inactive Voters as Required by Section 7-186 of the City Code. This Ordinance, unanimously adopted on First Reading on October 4, 2011, amends the City Code to require that ballots in a City mail ballot election be mailed to certain inactive electors in addition to all active registered electors. In addition, the Code will be amended to require that the City pay postage on all voted ballots returned by mail. Both amendments are anticipated to increase voter participation. Ordinance No. 130, 2011 was originally considered on Second Reading on October 18, 2011. It was postponed to this date to allow staff to amend the Ordinance to further define those inactive-failed to vote electors who will receive a mail ballot package, and to prepare a Resolution directing the City Manager to provide an analysis of the April 2013 election. This Ordinance was amended prior to Second Reading on October 18 to add language clarifying that ballots will be mailed to inactive registered electors with a status designation of “inactive-failed to vote”. On October 18, Council directed that the Ordinance be revised to provide that any inactive-failed to vote elector who voted in at least one of the past two General Elections immediately preceding any City election conducted by mail ballot, will receive a mail ballot package. 8. Second Reading of Ordinance No. 132, 2011, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. This Ordinance, unanimously adopted on First Reading on October 18, 2011, authorizes the Purchasing Agent to enter into a lease-purchase agreement with Pinnacle Public Finance for the lease-purchase of vehicles and equipment. The cost of the items to be lease-purchased is $1,495,000. Payments at the 2.35% interest rate will not exceed $ 317,787 in 2012. Money for 2012 lease-purchase payments is included in the 2012 budget. The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 0.8%. A competitive process was used to select Pinnacle Public Finance for this lease. Staff believes acceptance of this lease rate is in the City's best interest. 9. Second Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. This Ordinance, unanimously adopted on First Reading on October 18, 2011, modifies the duties of the Parks and Recreation Board as contained in Section 2-338 of the City Code to broaden the scope of the Parks and Recreation Board’s functions to allow the Board to promote awareness and appreciation of the value of parks and recreation as a resource contributing to the quality of Fort Collins. 110 November 1, 2011 10. Second Reading of Ordinance No. 134, 2011, Amending Chapter 23, Article V, of the City Code to Add New Provisions Related to the Naming of City Properties and Facilities. This Ordinance, unanimously adopted on First Reading on October 18, 2011, establishes a process for the City Council’s responsibilities in the naming of City facilities or properties. The process defines how appropriate names are selected when a facility is to be named for a person (living or dead), or for an organization (e.g., foundations) or corporations. This Ordinance establishes Council’s role in such facility naming and establishes the City Manager’s authority to name other facilities. In addition to this Ordinance, an Administrative Policy is outlined which establishes staff’s role in the naming of facilities in other circumstances. In response to a Council comment that the proposed ordinance included some confusing language, staff has streamlined subsection 23-141(d) to clarify the process to be used. This simplified language is included in the Ordinance on Second Reading. 11. Second Reading of Ordinance No. 135, 2011, Authorizing the Appropriation of 2012 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. The 2012 annual operating budget for the Airport totals $779,550, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($85,000 from each city), and interest earnings. This Ordinance authorizes the City of Loveland to appropriate the City of Fort Collins contribution, which is a 50% share of the 2012 Airport budget and totals $389,775. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $608,500 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2012 Airport capital funds, totaling $1,217,000, will be used to continue major Airport improvements such as taxiway and apron rehabilitation and some funds are slated for utility master planning and design engineering to accommodate Airport business development. Ordinance No. 135, 2011, was unanimously adopted on First Reading on October 18, 2011. 12. Second Reading of Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012. Ordinance No. 137, 2011, unanimously adopted on First Reading on October 18, 2011, sets the Downtown Development Authority 2012 budget amount of $814,380 to be appropriated for fiscal year 2012 for the administrative operations budget; sets the amount of $1,652,346 for debt service payments to be appropriated for fiscal year 2012; and sets the 2012 Mill Levy for the Fort Collins, Downtown Development Authority at five (5) mills, unchanged since 2002. The approved budget becomes the Downtown Development Authority’s financial plan for 2012. 111 November 1, 2011 This Ordinance does not appropriate funds for projects or programs of the DDA funded with bond proceeds. Examples of projects and programs funded with bond proceeds include annual holiday light display, facade improvements, the enhanced alley annual maintenance costs, ice rink, and participation in the river district improvement projects, etc. 13. Items Relating to Utility Rates, Fees and Charges for 2012. A. Second Reading of Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. B. Second Reading of Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. C. Second Reading of Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges. D. Second Reading of Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. E. Second Reading of Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. Ordinance No. 138, 2011, proposes a 6% water rate increase. The increase is across the board and applies to all rate classes. Ordinance No. 139, 2011, will increase water plant investment fees an average of 4.7% for 2012. Ordinance No. 140, 2011, will increase wastewater rate by 8% for 2012. Ordinance No. 141, 2011, will decrease the wastewater plant investment fees by 3% for 2012. Ordinance No. 144, 2011, will increase the Stormwater plant investment fees by 1.2% in 2012. These Ordinances were unanimously adopted on First Reading on October 18, 2011. 14. First Reading of Ordinance No. 145, 2011, Appropriating Unanticipated Grant Revenue in the Cultural Services and Facilities Fund for the Planning and Design of an Art Incubator Proposed for the Carnegie Building. This Ordinance appropriates unanticipated grant revenue of $100,000 from the National Endowment for the Arts (NEA) “Our Town” grant program in the Cultural Services Fund. The Cultural Services Department and the non-profit Beet Street collaborated on the grant as required by the NEA. The grant is funding the design and planning for a proposed art incubator to be housed in the Carnegie Building in late 2012. 15. Items Relating to the Purchase of a Rapid Transit Bus. A. Resolution 2011-096 Authorizing the Execution of a Contract Between the City of Fort Collins and the Colorado Department of Transportation (CDOT) for the Purchase of One Bus Rapid Transit Bus. 112 November 1, 2011 B. First Reading of Ordinance No. 146, 2011, Appropriating Prior Year Reserves in the Transit Services Fund for Transfer to the Capital Projects Fund and Appropriating Unanticipated Revenue in the Capital Projects Fund, Mason Corridor Project for the Purchase of One Bus Rapid Transit Bus. The Colorado Department of Transportation has awarded FASTER (Funding Advancements for Surface Transportation and Economic Recovery) funding to purchase one of the six Bus Rapid Transit (BRT) buses needed for MAX operations. The Colorado Department of Transportation approved funds that will be applied toward the BRT bus purchase. This request appropriates funds and executes the contract with CDOT. The MAX BRT project is a five mile; primarily fixed guideway located about one block to the west of College Avenue. The BRT includes seven park-n-ride lots, eight BRT stations with pedestrian and bicycle access, eight BRT curb-side stops, a transit center at the southern and northern termini, and off-line upgrades to an existing transit maintenance facility to provide MAX BRT service. Six exclusive BRT buses will be acquired and added to the existing City bus fleet in order to provide MAX BRT services. All six buses will be new bus purchases, and will replace older buses beyond their useful life. The six BRT buses will be purchased at the same time, once the Project Construction Grant Agreement (PCGA) has been executed in March 2012. The one BRT bus funded by this grant will be purchased at the same time as the other five BRT vehicles. Three BRT vehicles are funded through CDOT grants (SB-1, FASTER), while the other three are funded through the federal Small Starts grant. 16. First Reading of Ordinance No.147, 2011, Authorizing the Purchasing Agent to Enter into an Amendment and Extension of the Golf Professional Services Agreement for Collindale Golf Course for up to Five Additional Years. This Ordinance will authorize the extension of the existing agreement with Collindale Golf Course contractual Golf Professional Dale Smigelsky. 17. First Reading of Ordinance No. 148, 2011, Authorizing the Purchasing Agent to Enter into an Extension of the Restaurant/Snack Bar Concession Agreement at Southridge Golf Course for up to Five Additional Years. The existing Agreement with the SouthRidge Golf Course restaurant/snack bar concessionaire, the Sandtrap, Inc., dba Mackenzie's Pub & Grill at SouthRidge, expires on December 31, 2011. The existing five-year Agreement was entered into on December 11, 2006. As stated in the Agreement, “This Agreement may be extended beyond the original five (5) year term if performance is satisfactory and subject to City Council approval and negotiation of a mutually acceptable extension Agreement.” The performance of Mr. Dahl has been very satisfactory during the term, and staff has negotiated a mutually acceptable extension to the Agreement. 113 November 1, 2011 18. First Reading of Ordinance No. 149, 2011, Amending Chapter 2 of the City Code to Add a New Section 2-506 Establishing a New Service Area to Be Known as Sustainability Services. The City Manager and executive leadership team continue to examine and consider ways to enhance the efficiency and effectiveness of the City organization. The City Manager has decided to implement some changes to the City’s internal organizational structure. These changes impact existing service areas which necessitates updates to related provisions of the City Code. This Ordinance establishes Sustainability Services as a Service Area. 19. First Reading of Ordinance No. 150, 2011, Temporarily Suspending the Operation and Enforcement of the Land Use Code and Zoning Map to Allow for a Temporary Overflow Wintertime Night Shelter for the Homeless. Recent years have seen an increase in the number of families and individuals seeking overnight shelter at area homeless shelters. Construction is underway to expand shelter capacity at The Mission; however, delays have pushed the completion date back to February 1, 2012. This request is to temporarily suspend Land Use Code restrictions for an 8-week period at the Knights of Columbus facility at 101 North Meldrum in order to be able to shelter people on those winter evenings when other homeless shelters are full. 20. Items Relating to the Courtney Annexation and Zoning. A. Resolution 2011-097 Setting Forth Findings of Fact and Determinations Regarding the Courtney Annexation. B. Hearing and First Reading of Ordinance No. 151, 2011, Annexing Property Known as the Courtney Annexation to the City of Fort Collins. This is a request to annex and zone 3.13 acres located east of Ziegler Road and south of East Horsetooth Road. The property is Lot 3 of the Strobel M.R.D. and is addressed as 3256 Nite Court, which is at the east end of Charlie Lane. Portions of street right-of-way for Nite Court and Charlie Lane are included in the annexation boundary. This is a 100% voluntary annexation. The property is developed and is in the FA1 - Farming District in Larimer County. The requested zoning for this annexation is UE – Urban Estate. Staff is recommending that this property be included in the Residential Neighborhood Sign District. A map amendment will not be necessary as this property is already in the District. The “Residential Neighborhood Sign District” was established for the purpose of regulating signs for nonresidential uses in certain geographical areas of the City which may be particularly affected by such signs because of their predominantly residential use and character. The subject property is in an established residential area. 114 November 1, 2011 21. Items Relating to the Leistikow Annexation and Zoning. A. Resolution 2011-098 Setting Forth Findings of Fact and Determinations Regarding the Leistikow Annexation. B. Hearing and First Reading of Ordinance No. 153, 2011, Annexing Property Known as the Leistikow Annexation to the City of Fort Collins. This is a request to annex and zone the Leistikow parcel. The parcel is 18.04 acres located east of Timberline Road and south of Trilby Road. The property is a portion of the Leistikow Amended Minor Residential Division as approved in Larimer County and addressed as 6732 South Timberline Road. Contiguity with the existing municipal boundary is gained along the entire northern boundary which is shared with the Westchase P.U.D. The recommended zoning is U-E, Urban Estate in conformance with the City’s Structure Plan Map and the Fossil Creek Reservoir Area Plan. The Annexation includes a condition such that if the property develops as a residential land use, the owner shall request disconnection from City so that Larimer County would then be able to implement its Transfer of Density Units program. The effective term of this condition is ten years. 22. First Reading of Ordinance No. 155, 2011, Authorizing Conveyance of a Non-Exclusive Utility Easement on City Property to Public Service Company of Colorado. The City of Fort Collins owns land south of Zach Elementary School along McClelland’s Creek known as Outlot D of McClelland’s Creek PD & PLD and Outlot D of McClelland’s Creek PD & PLD 2nd Filing (the Property). The Property was dedicated on the McClelland’s Creek plats as easement for landscape, drainage, and utility purposes. The Property is part of the McClelland’s Creek Drainage Basin and is owned and maintained by City’s Stormwater Utility. McClelland’s Creek conveys stormwater flows to the Fossil Creek Reservoir Inlet Ditch. Public Service Company of Colorado (Xcel) has planned a project to install a gas line to service the proposed residential development to east of the City’s Property. The gas line will extend east from Xcel’s existing service line off of Rock Dove Drive across property owned by the City, as well as, property owned by Poudre School District. The line will run adjacent and parallel to an existing sanitary sewer easement on the City’s Property. Xcel has requested the City grant a 10-foot wide utility easement across the City’s property for the installation and maintenance of the new gas line improvements. 23. Resolution 2011-099 Authorizing an Agricultural Lease on Prairie Ridge Natural Area to Harry Sauer. The Natural Areas Program partnered with the City of Loveland ( as a minority owner) to purchase the 785 acre Prairie Ridge Natural Area in 2000 from Harry Sauer. The City 115 November 1, 2011 entered into an IGA with the City of Loveland, who manages the property. Loveland leased the property back to Mr. Sauer for farming and the property has been in dryland wheat production since the time of purchase. The renewal of the existing agricultural lease on the property for one additional growing season will allow time for the City of Fort Collins, the City of Loveland and Larimer County to pursue a collective competitive Request For Proposal process to select a farming tenant for an agriculture lease on this property and two other contiguous properties located in the Fort Collins/Loveland community separator. 24. Resolution 2011-100 Approving an Exception to the Use of a Competitive Process for the Purchase of Liquid Aluminum Sulfate from General Chemical. The Fort Collins Water Treatment Facility is requesting to purchase liquid aluminum sulfate from General Chemical as an Exception to the Competitive Process. Liquid aluminum sulfate (Alum) is used as the primary coagulant. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 7. Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. 8. Second Reading of Ordinance No. 132, 2011, Authorizing the Purchasing Agent to Enter into an Agreement for the Financing by Lease-Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. 9. Second Reading of Ordinance No. 133, 2011, Amending Section 2-338 of the City Code Pertaining to the Duties and Functions of the Parks and Recreation Board. 10. Second Reading of Ordinance No. 134, 2011, Amending Chapter 23, Article V, of the City Code to Add New Provisions Related to the Naming of City Properties and Facilities. 11. Second Reading of Ordinance No. 135, 2011, Authorizing the Appropriation of 2012 Fiscal Year Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. 12. Second Reading of Ordinance No. 137, 2011, Making Annual Appropriations for the Downtown Development Authority for the Fiscal Year 2012 and Fixing the Mill Levy for Fiscal Year 2012. 13. Items Relating to Utility Rates, Fees and Charges for 2012. A. Second Reading of Ordinance No. 138, 2011, Amending Chapter 26 of the City Code to Revise Water Rates and Charges. 116 November 1, 2011 B. Second Reading of Ordinance No. 139, 2011, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees. C. Second Reading of Ordinance No. 140, 2011, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees and Charges. D. Second Reading of Ordinance No. 141, 2011, Amending Chapter 26 of the City Code to Revise Sewer Plant Investment Fees. E. Second Reading of Ordinance No. 144, 2011, Amending Chapter 26 of the City Code to Revise Stormwater Plant Investment Fees. 29. Items Relating to Electric Rates, Fees and Charges for 2012 A. Second Reading of Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. Ordinances on First Reading were read by title by City Clerk Krajicek. 15. First Reading of Ordinance No. 146, 2011, Appropriating Prior Year Reserves in the Transit Services Fund for Transfer to the Capital Projects Fund and Appropriating Unanticipated Revenue in the Capital Projects Fund, Mason Corridor Project for the Purchase of One Bus Rapid Transit Bus. 16. First Reading of Ordinance No.147, 2011, Authorizing the Purchasing Agent to Enter into an Amendment and Extension of the Golf Professional Services Agreement for Collindale Golf Course for up to Five Additional Years. 17. First Reading of Ordinance No. 148, 2011, Authorizing the Purchasing Agent to Enter into an Extension of the Restaurant/Snack Bar Concession Agreement at Southridge Golf Course for up to Five Additional Years. 18. First Reading of Ordinance No. 149, 2011, Amending Chapter 2 of the City Code to Add a New Section 2-506 Establishing a New Service Area to Be Known as Sustainability Services. 19. First Reading of Ordinance No. 150, 2011, Temporarily Suspending the Operation and Enforcement of the Land Use Code and Zoning Map to Allow for a Temporary Overflow Wintertime Night Shelter for the Homeless. 20. Hearing and First Reading of Ordinance No. 151, 2011, Annexing Property Known as the Courtney Annexation to the City of Fort Collins. 117 November 1, 2011 21. Hearing and First Reading of Ordinance No. 153, 2011, Annexing Property Known as the Leistikow Annexation to the City of Fort Collins. 22. First Reading of Ordinance No. 155, 2011, Authorizing Conveyance of a Non-Exclusive Utility Easement on City Property to Public Service Company of Colorado. 28. First Reading of Ordinance No. 156, 2011, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2012; Amending the Budget for the Fiscal Year Beginning January 1, 2012, and Ending December 31, 2012; and Fixing the Mill Levy for Fiscal Year 2012. Catherine Woods, 116 ½ North Meldrum Street, pulled Item No. 19, First Reading of Ordinance No. 150, 2011, Temporarily Suspending the Operation and Enforcement of the Land Use Code and Zoning Map to Allow for a Temporary Overflow Wintertime Night Shelter for the Homeless. Eric Sutherland, 3520 Golden Currant, pulled Item Nos. 7, 18, and 20, Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail, First Reading of Ordinance No. 149, 2011, Amending Chapter 2 of the City Code to Add a New Section 2-506 Establishing a New Service Area to Be Known as Sustainability Services, and Items Relating to the Courtney Annexation and Zoning. Councilmember Troxell pulled Item No. 7, Items Relating to Municipal Mail Ballot Elections. Mayor Pro Tem Ohlson pulled Item No. 21, Items Relating to the Leistikow Annexation and Zoning. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Consent Calendar Follow-up Mayor Pro Tem Ohlson stated he will request follow-up regarding Item Nos. 16 First Reading of Ordinance No.147, 2011, Authorizing the Purchasing Agent to Enter into an Amendment and Extension of the Golf Professional Services Agreement for Collindale Golf Course for up to Five Additional Years. On Item No. 23, Resolution 2011-099 Authorizing an Agricultural Lease on Prairie Ridge Natural Area to Harry Sauer, he would like to see a restoration plan be developed for those properties as promised when they were purchased. Staff Reports Mark Jackson, Planning, Development, and Transportation Budget, Policy and Communication Manager, provided an update regarding the City’s clean-up efforts as a result of the recent snow 118 November 1, 2011 storm. He stated Utilities employees assisted other communities in restoring power. The total clean-up cost is estimated to be approximately $1.5 million. Councilmember Horak and Mayor Pro Tem Ohlson asked about the additional cost to the City of the clean-up program. City Manager Atteberry stated that information will be provided in detailed written report as the information becomes available. City Manager Atteberry discussed the evolution of the clean-up plan and commended Council and staff for their efforts. Councilmember Troxell suggested allowing tax-free shopping at nurseries in the spring to allow citizens to replace damaged landscaping. City Manager Atteberry reported on the household hazardous waste collection event in September, hosted by Utilities and Natural Resources. City Manager Atteberry discussed the spirit of public service between the Penny Flats fire and the storm clean-up efforts. Councilmember Reports Councilmember Troxell discussed the Futures Committee trip to Austin, Texas to explore economic health. City Manager Atteberry echoed Councilmember Troxell’s positive comments. Councilmember Kottwitz discussed her meeting with Wade Turner and others from the Senior Advisory Board and promoted the “Growing Older in Fort Collins” event. She acknowledged Sarah Kane and Rick Richter for their work. Councilmember Poppaw stated there are three finalists for the Poudre Fire Authority chief position, which should be announced shortly after the November 18th interviews. Mayor Pro Tem Ohlson requested a brief written history of the history of undergrounding City utilities. Ordinance No. 156, 2011, Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2012; Amending the Budget for the Fiscal Year Beginning January 1, 2012, and Ending December 31, 2012; and Fixing the Mill Levy for Fiscal Year 2012, Adopted on First Reading The following is staff’s memorandum for this item. 119 November 1, 2011 “EXECUTIVE SUMMARY This Ordinance amends the adopted 2012 Budget and sets the amount of $454,382,997 to be appropriated for fiscal year 2012. Including the 2012 adopted budgets for the General Improvement District No. 1 of $303,179 and the Urban Renewal Authority of $1,503,583, the total City appropriations amount to $456,189,759. The Net City Budget, which excludes internal transfers between City funds, is $361,424,510 for 2012. The Net City Budget, as amended, is allocated to: Net City Budget (in $ million) Adopted Amended 2012 2012 Change Operations $405.3 $410.4 $5.1 Debt Service 23.2 23.2 - Capital* 19.1 22.6 3.5 Total City Appropriations ** $447.6 $456.2 $8.6 Less Internal Service Funds (57.0) (57.8) (0.8) Less Transfers to Other Funds (37.1) (37.0) 0.1 Net City Budget $353.5 $361.4 $7.9 * Capital dollars reflect non-lapsing capital project budgets. ** This includes GID and URA which are appropriated in separate ordinances. This Ordinance also sets the 2012 City mill levy at 9.797 mills, unchanged since 1991. BACKGROUND / DISCUSSION City Council adopted the 2011-2012 Biennial Budget and appropriated monies for expenditure in fiscal year 2011. State statutes and the City Charter both require an annual appropriation to cover expenses for the ensuing year (2012) based upon the adopted budget. The Second Reading must be done before the last day of November and is currently scheduled for November 15, 2011. 2012 Revenue Update The revenue forecast model was updated in July of 2011 with data from the first six months of the year. Sales tax revenue is projected to increase 1.95% in 2012 over 2011 collections based on the model, including cautious optimism of the economy. General Fund Revenue (2.25%): Adopted 2012 Amended 2012 Sales Tax $50,402,000 $52,805,000 Use Tax 8,000,000 7.800,000 $58,402,000 $60,605,000 120 November 1, 2011 Recommended 2012 Budget Additions After reviewing the 2012 budget revision requests and obtaining guidance from Council, the City Manager is recommending the following adjustments to the 2012 budget which was presented to the Finance Committee on October 10, and discussed in Council Work Sessions on October 11 and 18. The following list includes all changes since the City Manager's recommended 2012 budget revisions first were initially presented to the Council Finance Committee. • Eliminated Below Market Pay Adjustment request of $812k • Eliminated Federal Legislation Analysis and Action request of $79k • Reduced CMO Policy & Project Manager Increase from .8 to 1.0 FTE to $15k • Reduced Downtown Ice Rink Installation and Removal to $10k • Reduced Downtown Holiday Lighting to $30k • Changed funding sources to no longer request use of additional KFCG funds • Added Regional Planning Assistance request for $50k • Added Neighborhood Planning Outreach Specialist (Ombudsman) request for $75k • Added Affordable Housing Relocation Assistance request for $50k • Added Sidewalks, Pedestrian Plan and ADA Improvements request for $300k from Building on Basics (BOB) • Added Sidewalk Improvements requests (such as gaps in sidewalk connections) for $260k from Keep Fort Collins Great-Other Transportation funding General Fund recommended adjustments total $1,787,016 and recommended adjustments to Other Funds total $6,837,675. General Fund: Ongoing One-time Assistant to the City Manager and CPIO (1 FTE) $176,320 Police Services Ticket Surcharge Officer (1 FTE) 118,709 Affordable Housing/Human Services 54,499 Restore Conservation Trust Funds for Trail Construction 546,571 Development Review Succession Planning (1.25 Cont. FTE) 75,341 Development Review - Customer Service Demand (1 FTE) 65,000 PFA Non-Discretionary & Total Compensation Increase 228,926 CMO Policy and Project Manager Increase from .8 to 1.0 FTE 15,000 Mason Corridor Synergies and Support Services $150,000 Mason Corridor Synergies and Support Services (Parking Study) 50,000 Reorganization Office of Sustainability 91,650 Downtown Ice Rink Installation and Removal 10,000 Downtown Holiday Lighting 30,000 Regional Planning Assistance 50,000 Neighborhood Planning Outreach Specialist (Ombudsman) 75,000 Affordable Housing Relocation Assistance 50,000 Total General Fund Adjustments: $1,412,016 $375,000 121 November 1, 2011 Other Funds: Ongoing One-time Reorganization Office of Sustainability $30,550 Pedestrian Access and ADA Improvements 300,000 Sidewalk improvements 260,000 Light & Power Payments in Lieu of Taxes (PILOT) Increase 121,969 Purchase Power Increase 1,724,505 Energy Efficiency Financing Program (.5 FTE) 300,000 Water Payments in Lieu of Taxes (PILOT) Increase 88,054 Water Meter Replacement and Rehabilitation 580,000 Household Hazardous Waste Community Event 22,000 Remove Structures from Poudre River Floodway 1,000,000 Master Plan Flood Mitigation Project Property 1,600,000 MIS Email, Blackberry & Smart Phone Services 28,000 80,000 MIS Network Services Resource Support 62,400 MIS Technology Customer Software Compliance Support 59,488 MIS Technology Customer Support Restructure 30,709 Microsoft Office 2010 Software Upgrade 550,000 Total Other Fund Adjustments $2,045,787 $4,791,888 Miscellaneous In addition to the recommended adjustments, a couple of miscellaneous adjustments must be made to correct the 2012 appropriations for recent changes. The additional revenue projected to be received from Sales & Use Tax must be appropriated for transfer to the Natural Areas Fund and Capital Projects Fund. Also, the following "clean-up" items are included in the Amended 2012 appropriations. • Art in Public Places (APP) Adjustment: $2,400 N The original 2012 APP offer was based on projects known at that time. This adjustment is based on the final 2012 budgeted parks and trails projects • Additional Flex Service: $526,811 N This adjustment is comprised of a 2012-13 CMAQ Grant of $458,794 and partner contributions of $68,017 for the operation of the FLEX regional route from June 1, 2012 to December 31, 2012. The City of Fort Collins local match was previously included in the 2011-12 budget. As such, there is no incremental cost to the City. • Correct Police Debt Payment Budget: ($750,000) N A portion of the Police Building debt ($750,000) is funded from the Capital Projects Fund, the Police Facility - COPs Debt project. In the 2012 proposed budget the 122 November 1, 2011 payment of $750,000 was added to this project budget, funded by additional interest earnings. However, no additional interest earnings are projected to be received in future years so the 2012 debt payment should be made using existing appropriations and revenue. Therefore, the 2012 proposed budget for the Capital Projects Fund needs to be decreased by $750,000 with the same reduction in Capital Projects Fund revenue. FINANCIAL / ECONOMIC IMPACTS This Ordinance amends the City Budget for fiscal year 2012 and represents the annual appropriation for fiscal year 2012 in the amount of $454,382,997. The Ordinance also sets the City mill levy at 9.797 mills, unchanged since 1991.” City Manager Atteberry stated this item is the result of a mid-budget revision process. Mike Beckstead, Chief Financial Officer, discussed the City budget cycle and detailed the revisions which are part of this Ordinance. City Manager Atteberry stated the Keep Fort Collins Great community report will occur February 28th during a work session with Council. Eric Sutherland, 3520 Golden Currant, discussed the PRPA bonds and supported on-bill financing. (**Secretary’s note: Councilmember Troxell left the meeting at 7:35 p.m.) Councilmember Horak supported investigating on-bill financing and asked for a brief status report. City Manager Atteberry replied further Council policy conversations will be needed and are set to occur in late winter or early spring. Mayor Weitkunat asked about the addition of pedestrian and sidewalk improvements to the budget. Beckstead replied there are two parts to the improvement program, some funds from Building on Basics and some from Keep Fort Collins Great. Karen Cumbo, Director of Planning, Development, and Transportation Services, detailed the Building on Basics pedestrian projects. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Horak, to adopt Ordinance No. 156, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw and Horak. Nays: none. THE MOTION CARRIED. Items Relating to Electric Rates, Fees and Charges for 2012, Adopted on Second Reading The following is staff’s memorandum for this item. 123 November 1, 2011 “EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 142, 2011, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. Second Reading of Ordinance No. 143, 2011, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. Ordinance No. 142, 2011, will increase the electric rate by 8.3% for 2012. This Ordinance does not contain any changes to the RESR, the rate applicable to the majority of residential customers. The changes to the RESR will be presented in a separate ordinance on November 15, 2011. Ordinance No. 143, 2011, 2012 will increase some electric development fees slightly for some developments (1%-3%) and decrease slightly for others. Ordinance Nos. 142 and 143, 2011, were adopted on First Reading on October 18, 2011, by a vote of 6-1 (Nays: Kottwitz). City staff has worked with Platte River Power Authority staff to address comments received regarding language found in Sections 1 and 3 of Ordinance No. 142, 2011.” Ellen Switzer, Utilities Financial Operations Manager, discussed the proposed rate increases and noted the rates include some clarifications for wholesale transactions which have been modified since First Reading. Eric Sutherland, 3520 Golden Currant, suggested increasing the residential multi-family all electric impact fee to an amount that would allow growth to pay its own way. Councilmember Horak asked about the feasibility of an all electric impact fee for multi-family dwellings. Steve Catanach, Light and Power Operations Manager, replied plant investment fees cover extension costs investment and capacity, and therefore increase with an all electric project due to the infrastructure needed for such a project. Councilmember Horak made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 142, 2011, on Second Reading. Yeas: Weitkunat, Ohlson, Poppaw and Horak. Nays: Kottwitz. THE MOTION CARRIED. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 143, 2011, on Second Reading. Yeas: Weitkunat, Ohlson, Poppaw and Horak. Nays: Kottwitz. THE MOTION CARRIED. Ordinance No. 149, 2011, Amending Chapter 2 of the City Code to Add a New Section 2-506 Establishing a New Service Area to Be Known as Sustainability Services, Adopted on First Reading The following is staff’s memorandum for this item. 124 November 1, 2011 “EXECUTIVE SUMMARY The City Manager and executive leadership team continue to examine and consider ways to enhance the efficiency and effectiveness of the City organization. The City Manager has decided to implement some changes to the City’s internal organizational structure. These changes impact existing service areas which necessitates updates to related provisions of the City Code. This Ordinance establishes Sustainability Services as a Service Area. BACKGROUND / DISCUSSION Under the City’s current organizational structure, the City Manager has eight direct reports with six Service Directors managing major functions in the organization. These are: 1. Deputy City Manager—Policy, Planning and Transportation Services 2. Assistant City Manager—Community and Operations Services 3. Chief Financial Officer—Financial Services 4. Assistant to the City Manager—Employee and Communications Services 5. Utilities Executive Director—Utility Services 6. Chief of Police—Police Services Additional direct reports currently include an Assistant to the City Manager (Bruce Hendee) and an Executive Assistant to the City Manager (Tauny Gilmore). This Ordinance establishes as a new service area, Sustainability Services, to be headed by Bruce Hendee. The Service Area Director is to be the Chief Sustainability Officer. The purpose of the Office is to ensure that the organization pursues the Triple-Bottom-Line concept of sustainability, addressing Economic Sustainability, Environmental Sustainability and Social Sustainability. The Chief Sustainability Officer will be responsible for the management of each of the three focus areas plus developing and implementing a program and system dedicated to organizational innovation. Several existing staff groups will be consolidated within the Service Area, including: • Environmental Services • Utilities Environmental Planning—one staff member; • Economic Health and Urban Renewal Authority Under this revised structure, the City Manager will have a total of eight direct reports - seven Service Area Directors, and an Executive Assistant to the City Manager (Tauny Gilmore). The Service Directors and related functions that report directly to the City Manager will be as follows: 1. Deputy City Manager, Diane Jones – Policy, Planning and Transportation Services 2. Assistant City Manager, Wendy Williams – Community and Operations Services 3. Chief Financial Officer, Mike Beckstead – Financial Services 4. Assistant to the City Manager, Kelly DiMartino – Employee and Communications Services 5. Utilities Executive Director, Brian Janonis – Utility Services 125 November 1, 2011 6. Chief of Police, Interim Chief Jerry Schiager, – Police Services 7. Chief Sustainability Officer, Bruce Hendee – Sustainability Services Code Revisions Under Article II, Section 5 of the City Charter, the City Council has the power to establish, change, consolidate or abolish administrative offices, service areas or agencies of the City by ordinance, upon report and recommendation of the City Manager, so long as the administrative functions and public services established by the Charter are not abolished in any such reorganization. The proposed reorganization would not abolish any of those essential functions and services. The organizational structure of the City is contained in Chapter 2, Article V of the City Code. The service areas are established in Division 3 of Article V. This Ordinance would amend Division 3 to codify the organizational changes described above. FINANCIAL / ECONOMIC IMPACTS The financial impact for this change will total $122,000 for the addition of the sustainability department head position. Funding for the new position will be as follows: 0.75 FTE to be funded through the General Fund and 0.25 FTE through Utilities resources. In the 2012 Budget Exceptions Process, a line item for “Reorganization Office of Sustainability” was included with a total cost of $122,000. ENVIRONMENTAL IMPACTS This change provides a positive contribution to the environment through improving City commitment by fostering inter-departmental integration and cooperation as well as innovation in sustainable practices.” Eric Sutherland, 3520 Golden Currant, encouraged the creation of programs to allow creative citizens to develop sustainability ideas. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 149, 2011, on First Reading. Councilmember Horak noted the use of the word “sustainability” is not accurate. The vote on the motion was as follows: Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw and Horak. Nays: none. THE MOTION CARRIED. 126 November 1, 2011 Ordinance No. 150, 2011, Temporarily Suspending the Operation and Enforcement of the Land Use Code and Zoning Map to Allow for a Temporary Overflow Wintertime Night Shelter for the Homeless, Adopted on First Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY Recent years have seen an increase in the number of families and individuals seeking overnight shelter at area homeless shelters. Construction is underway to expand shelter capacity at The Mission; however, delays have pushed the completion date back to February 1, 2012. This request is to temporarily suspend Land Use Code restrictions for an 8-week period at the Knights of Columbus facility at 101 North Meldrum in order to be able to shelter people on those winter evenings when other homeless shelters are full. BACKGROUND / DISCUSSION The current economic climate has led to an increase in the number of people in our community who are homeless or at risk of becoming homeless. The Murphy Center, Food Bank, and other agencies providing “basic needs” services have seen a marked increase in clients and overall community need. There are two homeless shelters in Fort Collins that shelter people overnight: The Mission at 460 Linden Center Drive and the Open Door Mission at 316 Jefferson Street. It is estimated that last winter 5 – 30 people were turned away on several nights due to lack of space, some of them families with children. The Mission has been working to fund and construct an expansion at their site to meet this need and construction was originally scheduled to be complete by this fall. However, due to delays the expanded space will not be completed until February 1, 2012. United Way of Larimer County is proposing that temporary overflow shelters be opened, when needed, operating 10:00 p.m. – 7:00 a.m. from December 1, 2011 – February 1, 2012. Two sites would be used for this purpose: - Sunday night through Thursday night: Knights of Columbus building, 121 North Meldrum Street. - Friday and Saturday night: Saint Joseph School, 127 North Howes Street. The Knights of Columbus building is located in the NCB (Neighborhood Conservation Buffer) zone, wherein overnight homeless shelters are not an allowed use. United Way is asking the City to temporarily suspend enforcement of the Land Use Code and zoning Map in order to open an overflow shelter when needed on Sunday through Thursday nights. The Saint Joseph School facility does not require a zoning exemption because an Overnight Shelter is a permitted use in the Downtown zoning district. Under the Land Use Code, a minor 127 November 1, 2011 administrative amendment for a change of use would be required, and staff is pursuing that amendment with the Current Planning Department. United Way estimates between 5 and 30 individuals will access the shelter each night. The shelter will be staffed by two Catholic Charities employees and at least one volunteer per night. No food will be served. United Way Director Gordan Thibedeau has emphasized that this is a temporary need and only applies to the limited hours and timeframe requested. During the day, The Mission (operated by Catholic Charities) and The Murphy Center together provide day shelter services. Clients are served in the morning hours at The Murphy Center, with the Mission serving clients for lunch and afternoon hours. This arrangement has worked well for the past two years, replacing the former temporary cold weather day shelter that was operated out of a City facility on North Howes Street. The expansion at The Mission will provide 30 additional bed spaces. For the long term, United Way and the community at large are working with Homeward 2020 to help chronically homeless people move into supportive housing. The City has supported these efforts by providing one-time financial support for the expansion at the Mission and funding for the start-up and operation of the Homeward 2020 initiative. As noted below, property owners in the vicinity of the two facilities will be notified of this request and a neighborhood meeting will be held, however, feedback is not yet available. Staff will attend the neighborhood meeting and report back prior to first reading of the ordinance with comments and concerns from neighborhood residents and businesses.” Councilmember Poppaw withdrew from the discussion of Ordinance No. 150, 2011, Temporarily Suspending the Operation and Enforcement of the Land Use Code and Zoning Map to Allow for a Temporary Overflow Wintertime Night Shelter for the Homeless due to a conflict of interest. Catherine Woods, 116 ½ North Meldrum Street renter, stated her concern regarding parking was resolved by staff. She asked about the background of selecting the Knights of Columbus facility and about the means by which a renter can be informed of proposals affecting her neighborhood. Eric Sutherland, 3520 Golden Currant, asked about the possibility of constructing a homelessness prevention facility. Rich Crisler, Occupy Fort Collins protestor, stated the protestors have been consistently providing food and shelter for homeless individuals on a nightly basis. He asked if they would be able to provide the same services at an alternate location. Monte Barry, 415 South Howes, Occupy Fort Collins protestor, asked how the protestors will be able to continue their homeless aid efforts. 128 November 1, 2011 Tess Heffernan, Policy and Project Mananger, stated public outreach was limited due to the short timeframe prior to cold weather. A perimeter mailing to property owners occurred and information was published as much as possible, given the time constraints. Glen Good, Catholic Charities Regional Director, discussed the need for additional winter shelter space and the receptiveness of the Knights of Columbus to using this facility. Councilmember Horak asked about the notification process. Steve Dush, Community Development and Neighborhood Services Director, replied development review outreach efforts have been improved in 2011, including a subscription listserve. Additionally, a map of development review proposals is on the Current Planning web page. Mayor Pro Tem Ohlson asked about notices to renters as well as owners. Dush replied the current system involves mailing solely to property owners as rental lists are not available. Mayor Pro Tem Ohlson suggested broadening the notification to renters. Councilmember Horak asked about simply mailing to “occupant.” Dush replied that may have budget implications but is possible. Mayor Pro Tem Ohlson noted developers should be funding notifications. Councilmember Horak made a motion, seconded by Mayor Pro Tem Ohlson, to adopt Ordinance No. 150, 2011, on First Reading. Councilmember Horak stated he would appreciate follow-up with neighbors throughout the process. The vote on the motion was as follows: Yeas: Weitkunat, Kottwitz, Ohlson and Horak. Nays: none. THE MOTION CARRIED. (**Secretary’s note: The Council took a brief recess at this point in the meeting.) Items Relating to the Courtney Annexation and Zoning, Adopted on First Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY A. Resolution 2011-097 Setting Forth Findings of Fact and Determinations Regarding the Courtney Annexation. B. Hearing and First Reading of Ordinance No. 151, 2011, Annexing Property Known as the Courtney Annexation to the City of Fort Collins. This is a request to annex and zone 3.13 acres located east of Ziegler Road and south of East Horsetooth Road. The property is Lot 3 of the Strobel M.R.D. and is addressed as 3256 Nite Court, 129 November 1, 2011 which is at the east end of Charlie Lane. Portions of street right-of-way for Nite Court and Charlie Lane are included in the annexation boundary. This is a 100% voluntary annexation. The property is developed and is in the FA1 - Farming District in Larimer County. The requested zoning for this annexation is UE – Urban Estate. Staff is recommending that this property be included in the Residential Neighborhood Sign District. A map amendment will not be necessary as this property is already in the District. The “Residential Neighborhood Sign District” was established for the purpose of regulating signs for nonresidential uses in certain geographical areas of the City which may be particularly affected by such signs because of their predominantly residential use and character. The subject property is in an established residential area. BACKGROUND / DISCUSSION The applicants, C. Scott and Nancy E. Courtney, being the property owners, have submitted a written petition requesting annexation of 3.13 acres located east of Ziegler Road at the east end of Charlie Lane and south of East Horsetooth Road. Portions of street right-of-way for Nite Court and Charlie Lane are included in the annexation boundary. The property is developed and is in the FA1 - Farming District in Larimer County. The requested zoning for this annexation is UE – Urban Estate. The surrounding properties are currently zoned FA1 – Farming in the Larimer County to the north, east and south; and, UE – Urban Estate in the City to the west. This is a 100% voluntary annexation. The property is located within the Fort Collins Growth Management Area. According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Growth Management Area, the City will agree to consider annexation of property in the GMA when the property is eligible for annexation according to State law. This property gains the required 1/6 contiguity to existing City limits from common boundaries with the Strobel Annexation (April, 1992) and the Wild West Annexation (August, 1994) to the west. The surrounding zoning and land uses are as follows: N: FA-1 in Larimer County; existing residential E: FA-1 in Larimer County; undeveloped S: FA-1 in Larimer County; existing residential W: UE in the City of Fort Collins; existing residential, church The requested zoning for this annexation is the UE – Urban Estate District. There are numerous uses permitted in this District, subject to either administrative review or review by the Planning and Zoning Board. The adopted City Structure Plan, a part of the Comprehensive Plan (City Plan), identifies that Urban Estate is appropriate in this location. The request is in conformance with the State of Colorado Revised Statutes as they relate to annexations and the City of Fort Collins Land Use Code. 130 November 1, 2011 Findings 1. The annexation of this area is consistent with the policies and agreements between Larimer County and the City of Fort Collins contained in the Intergovernmental Agreement for the Fort Collins Growth Management Area. 2. The property meets the eligibility requirements included in State law to qualify for a voluntary annexation to the City of Fort Collins. 3. On September 20, 2011, the City Council approved Resolution 2011-088 that accepted the annexation petition and determined that the petition was in compliance with State law. The resolution also initiated the annexation process for the property by establishing the date, time and place when a public hearing would be held regarding the readings of the Ordinances annexing and zoning the area. 4. The requested UE – Urban Estate Zoning District is in conformance with the policies of the City's Comprehensive Plan. 5. The request is in conformance with the City of Fort Collins Land Use Code. FINANCIAL / ECONOMIC IMPACTS No direct financial impacts result from the proposed annexation and zoning. The property is developed at the present time, containing a single-family residence.” City Manager Atteberry stated he had filed a public conflict of interest disclosure statement on August 11, 2011 and asked Deputy City Manager Jones to take over for this item. Eric Sutherland, 3520 Golden Currant, expressed concern regarding City Manager Atteberry’s conflict of interest statement not being included in Planning and Zoning Board and Council meeting packets and discussed an error in public notification. Steve Dush, Community Development and Neighborhood Services Director, stated the annexation process was completed per state statute and there was no error with the notification process for the annexation. The Planning and Zoning Board recommended approval of the annexation unanimously in October. The zoning aspect of the annexation is set to be postponed and the state statute allows postponement of zoning for up to 90 days after the annexation. (**Councilmember Troxell returned to the meeting at 9:00 p.m.) Deputy City Attorney Daggett stated the conflict of interest disclosure statement was completed on August 11, 2011 by City Manager Atteberry and there is no question as to whether the requirement was met. As a result of the conflict of interest, City Manager Atteberry has refrained from discussions relating to the item. 131 November 1, 2011 Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Troxell, to adopt Resolution 2011-097. Councilmember Poppaw asked that baseless personal attacks on City staff not be included in further discussions. Mayor Pro Tem Ohlson requested that future agenda items include accurate financial and economic impact statements regardless of the small size of those impacts. Councilmember Horak requested additional information regarding gravel roads taken over by City maintenance. Dush replied he would provide the information prior to Second Reading. The vote on the motion was as follows: Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 151, 2011, on First Reading. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Items Relating to the Leistikow Annexation and Zoning, Adopted on First Reading The following is staff’s memorandum for this item. “ÉXECUTIVE SUMMARY A. Resolution 2011-098 Setting Forth Findings of Fact and Determinations Regarding the Leistikow Annexation. B. Hearing and First Reading of Ordinance No. 153, 2011, Annexing Property Known as the Leistikow Annexation to the City of Fort Collins. This is a request to annex and zone the Leistikow parcel. The parcel is 18.04 acres located east of Timberline Road and south of Trilby Road. The property is a portion of the Leistikow Amended Minor Residential Division as approved in Larimer County and addressed as 6732 South Timberline Road. Contiguity with the existing municipal boundary is gained along the entire northern boundary which is shared with the Westchase P.U.D. The recommended zoning is U-E, Urban Estate in conformance with the City’s Structure Plan Map and the Fossil Creek Reservoir Area Plan. The Annexation includes a condition such that if the property develops as a residential land use, the 132 November 1, 2011 owner shall request disconnection from City so that Larimer County would then be able to implement its Transfer of Density Units program. The effective term of this condition is ten years. This annexation request is in conformance with the Colorado Revised Statutes, City of Fort Collins Comprehensive Plan, Land Use Code and the Intergovernmental Agreement between the City of Fort Collins and Larimer County. There are no known controversies associated with this annexation. BACKGROUND / DISCUSSION This is a 100% voluntary annexation for a property located within the Growth Management Area. Of the total property perimeter, 25% is contiguous to the existing City boundary thus satisfying the requirement that no less than one-sixth of the perimeter boundary be contiguous. According to the policies and agreements between the City of Fort Collins and Larimer County, the City will agree to consider annexation of property in the Growth Management Area when the property is eligible for annexation under state law. The surrounding zoning and land uses are as follows: N: L-M-N;Westchase P.U.D. N: U-E;Westchase P.U.D. E: FA-1;(Larimer County) Leflar M.R.D. S: FA-1;(Larimer County) Leistikow Amended M.R.D. W: FA-1;(Larimer County) Paragon Estates P.U.D. Leistikow Minor Residential Division was approved in 1992, consisted of 37.5 acres and allowed the creation of four lots, all of which exceeded the required minimum of 2.29 acres per Larimer County zoning of FA-1, Farming. This M.R.D. was amended in September of 2011 and reduced the number of lots from four to three. The subject annexation, consisting of 18.04 acres, is equivalent to Lot Two of the Leistikow Amended M.R.D. Urban Estate Zone District The requested zoning is Urban Estate, Urban Estate. The Land Use Code describes this zone district as follows: “Purpose. The Urban Estate District is intended to be a setting for a predominance of low-density and large-lot housing. The main purposes of this District are to acknowledge the presence of the many existing subdivisions which have developed in these uses that function as parts of the community and to provide additional locations for similar development, typically in transitional locations between more intense urban development and rural or open lands.” There are a variety of non-residential land uses allowed in the U-E including the following: 133 November 1, 2011 • Minor public facilities • Parks, recreation and other open lands • Cemeteries • Public and private schools • Places of worship or assembly • Golf courses • Wildlife rescue and education centers • Child care centers • Bed and breakfast establishments • Plant nurseries and greenhouses • Animal boarding • Adult day/respite centers • Small scale reception centers • Resource extraction • Composting facilities. Fossil Creek Reservoir Area Plan The parcel is located within the Fossil Creek Reservoir Area Plan, jointly adopted by the City of Fort Collins and Larimer County in 1998. According to the Land Use Framework Plan, the subject parcel should be placed into the Urban Estate zone district. The proposed zoning of Urban Estate complies with the applicable sub area plan. Place of Worship or Assembly The Church of Jesus Christ of Latter-day Saints has issued a press release indicating its desire to construct a temple on the property described by this annexation. As noted, the City’s Structure Plan Map and the Fossil Creek Reservoir Area Plan both provide guidance that the subject 18.04 acres should be zoned Urban Estate. A Place of Worship is a permitted use in the U-E zone, subject to review by the Planning and Zoning Board. A development review outreach neighborhood meeting was held on September 14, 2011, to discuss the development review process for a future potential submittal of a Project Development Plan for a temple for the Church of Jesus Christ Latter day-Saints. At this meeting, staff responded to inquiries regarding the annexation and zoning procedure, conformance with State Statues, the IGA. with Larimer County, the City’s Fossil Creek Reservoir Area Plan and the Land Use Code. Staff continues to emphasize to all interested parties that the annexation and development of land are two distinct processes, each governed by their own set of standards and regulations. For example, concerns about traffic on adjacent streets are a land development issue best addressed at the Project Development Plan stage, not at the annexation and zoning stage. There will be opportunities for citizen input on land development issues at the future neighborhood information meetings that will be scheduled prior to a submittal for a Project Development Plan. The Larimer County Planning Department is aware that the annexation of land zoned residential within the Fossil Creek Area Reservoir Plan, and contemplated for a non-residential land use (Place 134 November 1, 2011 of Worship), would conform to both existing County (FA-1) and proposed City (U-E) zoning. Larimer County supports the annexation and the proposed Place of Worship. But, Larimer County would be concerned if, after annexation, the subject parcel were to instead develop as a residential subdivision. If such were the case, then the County would be prevented from implementing its Transfer of Density Units (TDU) Program, a key element of the Fossil Creek Reservoir Area Plan, jointly adopted by both the City of Fort Collins and Larimer County. Voluntary Condition of Annexation – Larimer County Transfer of Density Units The applicant and the LDS Church have offered to the City a voluntary condition of annexation in the event that the property should develop as a residential subdivision. The purpose of such a condition would be to ensure the implementation of the County’s TDU Program. The recommended condition of annexation would obligate the developer of a residential subdivision to request disconnection from the City. Upon passage of a disconnection ordinance, the parcel would then revert to the County’s jurisdiction thus enabling implementation of the TDU Program. Under this condition of annexation, the practical effect of the overall intent of the Fossil Creek Reservoir Area Plan is met. The County’s TDU Program is calibrated such that the residential density would not exceed the maximum allowable density prescribed in the Urban Estate zone. After the County’s TDU Program is implemented by the approval of a County Subdivision, the Subdivision is then annexed into the City prior to land development in accordance with the Fossil Creek Reservoir Area Plan. The condition reads as follows: This annexation into the City of Fort Collins is conditioned upon the subject property developing as a non-residential land use. If the property is to be developed as a residential use, then the owner, successors or assigns shall request disconnection of the subject property from the City of Fort Collins so that Larimer County would have subdivision and zoning jurisdiction and allow for the implementation of the Transfer of Density Units Program. This condition shall be in effect for a period of ten (10) years following the effective date of this ordinance. Findings 1. The property meets the eligibility requirements included in State law to qualify for a voluntary annexation to the City of Fort Collins. 2. The annexation of this area is consistent with the policies and agreements between Larimer County and the City of Fort Collins contained in the Intergovernmental Agreement for the Fort Collins Growth Management Area. 3. The requested U-E, Urban Estate Zoning District, is in conformance with the policies of the City's Comprehensive Plan and the Fossil Creek Reservoir Area Plan. 4. The request is in conformance with the City of Fort Collins Land Use Code. 135 November 1, 2011 5. On September 20, 2011, the City Council adopted Resolution 2011-087 that accepted the annexation petition and determined that the petition was in compliance with State law. The Resolution also initiated the annexation process for the property by establishing the date, time and place when a public hearing would be held regarding the readings of the Ordinances annexing and zoning the area. 6. The recommended condition of annexation whereby the owner would request disconnection in the event of residential development has been voluntarily offered by the applicant with the full knowledge and consent of the Church of Jesus Christ of Latter-day Saints. The ten year time frame has been reviewed and approved by Larimer County. FINANCIAL / ECONOMIC IMPACTS As with any annexation, specific financial impacts are difficult to determine. The Compact Urban Growth Standards exempt parcels within the Fossil Creek Reservoir Area from needing to comply with requirements for being contiguous to urban development defined as having an overall density of at least one unit per acre. Despite this exemption, the subject parcel is, in fact, contiguous to existing urban development (Westchase P.U.D. and Trilby Road). Development of this parcel will, therefore, be a sequential extension of utilities and services. Adequate public facilities are extended to the north property line with greater than 16.66% contiguity thus ensuring compliance with the City’s adequate public facilities management system. ENVIRONMENTAL IMPACTS The site is not within 500 feet of a known natural habitat or feature. As with any development, any significant trees are to be preserved but if preservation is not feasible, then mitigation per Land Use Code Section 3.2.1(F) would be invoked.” Mayor Pro Tem Ohlson expressed concern regarding the County process relating to this property. He stated he would not support the item. Eric Sutherland, 3520 Golden Currant, opposed the item. Ken Merritt, Landmark Planners, supported the item on behalf of the applicant and stated the item is statutorily eligible for annexation. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2011-098. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 153, 2011. Yeas: Weitkunat, Kottwitz, Poppaw, Horak and Troxell. Nays: Ohlson. THE MOTION CARRIED. 136 November 1, 2011 Items Relating to Municipal Mail Ballot Elections, Adopted on Second Reading The following is staff’s memorandum for this item. “EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 130, 2011, Amending Chapter 7 of the City Code to Expand the Types of Registered Electors Who Automatically Receive Mail Ballots, and to Require the City to Pay the Postage Due for Ballots Returned by Mail. B. Resolution 2011-095 Directing the City Manager to Provide a Written Report to the City Council Following the April 2, 2013 Regular Municipal Election Regarding the Costs Associated With, and Turnout Achieved By, Mailing Ballots to Certain Inactive Voters as Required by Section 7-186 of the City Code. This Ordinance, unanimously adopted on First Reading on October 4, 2011, amends the City Code to require that ballots in a City mail ballot election be mailed to certain inactive electors in addition to all active registered electors. In addition, the Code will be amended to require that the City pay postage on all voted ballots returned by mail. Both amendments are anticipated to increase voter participation. Ordinance No. 130, 2011 was originally considered on Second Reading on October 18, 2011. It was postponed to this date to allow staff to amend the Ordinance to further define those inactive- failed to vote electors who will receive a mail ballot package, and to prepare a Resolution directing the City Manager to provide an analysis of the April 2013 election. This Ordinance was amended prior to Second Reading on October 18 to add language clarifying that ballots will be mailed to inactive registered electors with a status designation of “inactive- failed to vote”. On October 18, Council directed that the Ordinance be revised to provide that any inactive-failed to vote elector who voted in at least one of the past two General Elections immediately preceding any City election conducted by mail ballot, will receive a mail ballot package.” Councilmember Troxell noted eight of the last 25 election dates were City-only elections. Deputy City Clerk Harris confirmed that information. Councilmember Troxell expressed concern regarding public confusion relating to postage-paid ballots and requested an explanation of the County’s process regarding “inactive failed to vote” voters following elections. Harris described the mailing sent out by the County to attempt to garner information from registered voters who failed to vote. Eric Sutherland, 3520 Golden Currant, stated there is room for improvement in this process and suggested the formation of a Citizens Board to aid in assisting voters. 137 November 1, 2011 Councilmember Troxell asked about changes to the item since the last meeting. Harris replied Council had requested language be changed to allow a voter who voted in either of the past two general elections to receive a ballot in a City mail ballot election. Councilmember Troxell requested an estimate of the approximate additional cost for ballots to be mailed to “inactive failed to vote” electors. Harris replied the estimate is approximately $19,000. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 130, 2011, on Second Reading. Councilmember Troxell stated he would not support the item as paid postage on City elections could create confusion among electors. The vote on the motion was as follows: Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw and Horak. Nays: Troxell. THE MOTION CARRIED. Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Troxell, to adopt Resolution 2011-095. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Motion to Adjourn Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Poppaw, to adjourn to after the completion this evening of the Skyview South General Improvement District and General Improvement District No. 1 meetings to consider a possible Executive Session. Yeas: Weitkunat, Kottwitz, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. (**Secretary’s note: The Council reconvened at 9:45 p.m.) Executive Session Authorized Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Troxell, to go into Executive Session pursuant to City Code Sections 2-31(a)(1)(d) and 2-31(2) to consider and discuss strategy matters relating to negotiations with employee groups including unions and to consult with the City Attorney regarding related legal issues. Yeas: Weitkunat, Ohlson, Poppaw and Troxell. Nays: Kottwitz and Horak. THE MOTION CARRIED. (**Secretary’s note: Council went into executive session at 9:50 and reconvened at 10:45 p.m.) 138 November 1, 2011 Adjournment Mayor Pro Tem Ohlson made a motion, seconded by Councilmember Kottwitz, to adjourn to 6:00 p.m., on Wednesday, November 9, 2011, to consider a possible Executive Session to conduct the annual evaluations of the City Manager and the Municipal Judge. The meeting adjourned at 10:45 p.m. _________________________________ Mayor ATTEST: _____________________________ City Clerk 139 •Second Reading of these seven Ordinances November 15, 2011 City Council Meeting • First Reading of Residential Energy Service Rate Ordinance with seasonal and seasonal- tiered options 99