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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/18/2014 - CONSIDERATION AND APPROVAL OF THE MINUTES OF THE OAgenda Item 1 Item # 1 Page 1 AGENDA ITEM SUMMARY November 18, 2014 City Council STAFF Wanda Nelson, City Clerk SUBJECT Consideration and Approval of the Minutes of the October 21, 2014 Regular Council meeting and the October 14 and October 28, 2014 Adjourned Council Meetings. EXECUTIVE SUMMARY The purpose of this item is to approve the minutes of the October 21, 2014 Regular Council meeting and the October 14 and October 28, 2014 Adjourned Council meetings. ATTACHMENTS 1. October 14, 2014 (PDF) 2. October 21, 2014 (PDF) 3. October 28, 2014 (PDF) City of Fort Collins Page 422 October 14, 2014 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting – 9:00 PM  ROLL CALL PRESENT: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Staff present: Atteberry, Daggett, Nelson 1. Items Relating to the Construction of a New Utilities Administration Building and Renovation of 700 Wood Street. (Adopted) A. First Reading of Ordinance No. 137, 2014, Appropriating Capital Project Funding in the Light and Power, Water, Wastewater, and Stormwater Drainage Enterprise Funds and Authorizing the Transfer of Appropriations to the Cultural Services and Facilities Fund for the Art in Public Places Program, for the Construction of a New Utilities Administration Building in Block 32 on LaPorte Avenue and Renovation of 700 Wood Street. B. Resolution 2014-095 Directing the City Manager to Review Funding for Utilities Capital Improvements, Including Utilities Plant Investment Fees and Other Related Matters, and Report the Results of that Review for Further Council Consideration. The purpose of this item is to provide funding for the construction of a new Utility Administration Building within Block 32 on LaPorte Avenue, as well as renovation of the existing Utility Service Center at 700 Wood Street. The total combined project costs are $23,411,000 with $4,500,000 already appropriated from Light and Power reserves, leaving $18,911,000 to be appropriated with this ordinance. A Utility Building Team comprised of internal staff and external subject matter experts has worked with the architectural firm RNL and Adolfson and Peterson Construction to assess the best way to address the current building performance and space issues facing Fort Collins Utilities’ ongoing and future business operations. Balancing the city-wide goal to have high-performing office buildings with the need to be fiscally prudent has led the Building Team to recommend the two-pronged funding process proposed in this appropriation ordinance. The four Utility Enterprise Funds (Light and Power, Water, Wastewater and Stormwater) will share the costs of the projects. All appropriations will come from the existing reserves in these four funds. A Resolution is also being presented directing staff to investigate the use of development fees for additional types of capital needs such as facilities, modifying the information provided on customer utility bills to increase transparency and to evaluate the long term rate impacts of capital improvements. Kevin Gertig, Utilities Executive Director, discussed the project and stated the total project cost is $23.4 million. Mike Beckstead, Chief Financial Officer, discussed the community benefits of the proposed new building and noted existing office space does not meet customer service needs. Staff is in the process of completing ten year capital improvement plans for all utilities. Eric Sutherland, 3520 Golden Currant, opposed utilizing an adjourned meeting for First Reading of an ordinance and opposed the use of reserve funds for capital construction. City of Fort Collins Page 423 Councilmember Cunniff asked about the funding sources being rates from utilities. Beckstead replied that is essentially correct; however, unanticipated revenue and underspent budget funds also end up in the reserve fund balance. Councilmember Cunniff requested an explanation of the plant investment fee (PIF). Beckstead replied the PIF is calculated based on the infrastructure costs plus the five year historical capital spend for the wet utilities. For light and power, the calculation is different. Councilmember Cunniff asked how often the increase in cost of capital expansion is included in rate increases. Beckstead replied construction inflation was not considered in the most recent light and power increase, as it was primarily due to PRPA increases. Previous rate increases have dealt with renewable energy. He stated upcoming wastewater rate increases are justified by capital needs. Councilmember Cunniff requested additional details prior to Second Reading. Councilmember Cunniff asked about the rationale behind dates in the Resolution. Beckstead replied current workload and needed public outreach were considered. Councilmember Cunniff requested the City Manager be directed to return with a staff report on or before March 10. Mayor Pro Tem Horak asked if standards exist for funds that should be available for contingencies. Beckstead replied each utility has a minimum fund standard; the available working capital is net of all of the requirements being taken out. The water reserve fund is expected to grow significantly in 2014 due to a combination of factors. Mayor Pro Tem Horak asked how the statement can be made that rates will not increase if this building is funded. Beckstead replied it has not been stated that rates will not go up. Mayor Pro Tem Horak stated previous presentations have indicated future rates will not increase because of this building. Beckstead disagreed with Mayor Pro Tem Horak's memory of the presentation stating there will be needs based on increased cost of service and increased potential capital needs that will be vetted out in 2015. Councilmember Campana asked how the rates are calculated in terms of the inclusion of capital expansion. Beckstead replied a better explanation of detailed utility rate-making could better be discussed by Lance Smith, Utilities Strategic Financial Planning Manager. Smith stated the rate- making process does involve a certain amount of capital investments being identified as part of the revenue requirements each year. He noted those funds are not necessarily specifically targeted for a building replacement or piece of infrastructure, but there is an average amount of capital investment needed year after year, which is assumed when making rate adjustments. Councilmember Campana requested additional detail on the issue prior to Second Reading. Councilmember Cunniff made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2014-095, directing the City Manager to present a staff report on findings on or before March 10, 2015, and correcting the date to October 14, 2014. City of Fort Collins Page 424 RESULT: RESOLUTION 2014-095 ADOPTED AS AMENDED [UNANIMOUS] MOVER: Ross, Cunniff, District 5 SECONDER: Lisa Poppaw, District 2 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Councilmember Campana made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 137, 2014, on First Reading. Mayor Pro Tem Horak requested an explanation as to the assumptions being made regarding cost of service for new buildings prior to Second Reading. He expressed concern that Council may not have done its due diligence to make this decision based on solid information. RESULT: ORDINANCE NO. 137, 2014, ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gino Campana, District 3 SECONDER: Wade Troxell, District 4 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak  OTHER BUSINESS  ADJOURNMENT The meeting adjourned at 9:41 PM. ______________________________ Mayor ATTEST: ________________________________ City Clerk City of Fort Collins Page 425 October 21, 2014 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Regular Meeting – 6:00 PM  ROLL CALL PRESENT: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Staff present: Atteberry, Daggett, Nelson.  AGENDA REVIEW: CITY MANAGER City Manager Atteberry stated there were no changes to the published agenda.  CITIZEN PARTICIPATION Rex Peterson, Boy Scout Troop leader, stated his troop is here to learn about City government. Josh Kerson, Fort Collins resident, encouraged Council to allow electric bikes on multi-use paths. Mike Pruznick, Fort Collins resident, expressed concern that Fort Collins’ emergency cases are being transported to Medical Center of the Rockies. Fred Kirsch, Community for Sustainable Energy, discussed public awareness of sustainable energy and requested an improved efficiency financing program. Eric Sutherland, 3520 Golden Currant, discussed Item No. 12, First Reading of Ordinance No. 149, 2014 Approving a First Amendment to the Agreement with Woodward, Inc., encouraging the creation of a special improvement district, and stated Item No. 3, First Reading of Ordinance No. 139, 2014 Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for Fiscal Year 2015 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2015, should have been pulled off the Consent Calendar and further vetted. Cheryl Distaso, Fort Collins Community Action Network, discussed changes to the Sustainability Department and encouraged additional emergency shelters and lockers for homeless individuals. Lisa Nothen, 433 Bow Creek Lane, discussed parking and transportation issues on the south side of town. Desiree Fisk, Fort Collins Homeless Coalition, encouraged efforts to continue with the discussions regarding needs for homeless individuals. City of Fort Collins Page 426  CITIZEN PARTICIPATION FOLLOW-UP Councilmember Troxell encouraged a trial period for allowing electric bikes on City multi-use trails.  CONSENT CALENDAR Councilmember Cunniff withdrew Item No. 10, First Reading of Ordinance No. 146, 2014, Revising Chapter 26 of the City Code Regarding Payments in Lieu of Taxes and Franchise Fees, and Specifying that the Operation and Maintenance of the Street Lighting System is an In Kind Payment by the Light & Power Fund in Lieu of Taxes and Franchise Fees, from the Consent Calendar. Michael Pruznick, Fort Collins resident, withdrew Item No. 9, Items Relating to the Ethics Review Board Changes, from the Consent Calendar. Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt and approve all items not withdrawn from the Consent Calendar. RESULT: ADOPTED [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Wade Troxell, District 4 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak 1. Consideration and Approval of the Minutes of the September 23, 2014 Adjourned Council Meeting and the October 7, 2014 Regular Council Meeting. (Adopted) The purpose of this item is to approve the minutes from the September 23, 2014 Adjourned Council meeting and the October 7, 2014 Regular Council meeting. 2. First Reading of Ordinance No. 138, 2014, Authorizing the Appropriation of Fiscal Year 2015 Operating and Capital Improvement Funds for the Fort Collins-Loveland Municipal Airport. (Adopted) The 2015 annual operating budget for the Airport totals $844,530, and will be funded from Airport operating revenues, contributions from the Cities of Fort Collins and Loveland ($177,500 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 2015 Airport budget and totals $422,265. This Ordinance also appropriates the City’s 50% share of capital funds, totaling $442,500 for the Airport from federal and state grants; contributions from Fort Collins and Loveland; and the Airport General Fund. Most of the 2014 Airport capital funds, totaling $885,000, will be used to complete major Airport improvements including the second phase of the construction of a snow removal equipment storage facility, and the rehabilitation of roadways. 3. First Reading of Ordinance No. 139, 2014 Being the Annual Appropriation Ordinance for the Fort Collins Downtown Development Authority Relating to the Annual Appropriations for Fiscal Year 2015 and Fixing the Mill Levy for the Downtown Development Authority for Fiscal Year 2015. (Adopted) The purpose of this item is to set the Downtown Development Authority (“DDA”) 2015 Operations and Maintenance Budget amount of $744,084 to be appropriated for fiscal year 2015 for the administrative operations budget, appropriate the 2015 Line of Credit Draw in the amount of $1,000,000, set the amount of $3,191,396 for debt service payments to be appropriated for fiscal year 2015 and set the 2015 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged since tax City of Fort Collins Page 427 year 2002. The approved Budget becomes the Downtown Development Authority’s financial plan for 2015. 4. Postponement of First Reading of Ordinance No. 128, 2014, Establishing Regulations for Persons Cultivating Marijuana in Non-Residential Structures Indefinitely. (Adopted) Staff requests postponement of this item indefinitely to allow time to review suggestions brought forward by caregivers and to ensure regulations are consistent with the Fire Code, Building Code, and the intent of the regulations. 5. Second Reading of Ordinance No. 129, 2014, Appropriating Unanticipated Revenue from the Colorado Department of Transportation into the Capital Projects Fund - City Bridge Program Project for the West Mulberry Street Bridge Replacement. (Adopted) This Ordinance, unanimously adopted on First Reading on October 7, 2014, appropriates grant funds received from the federally funded Colorado Off-System Bridge Program in the amount of $700,000. This funding is for the replacement of the West Mulberry Street Bridge over the New Mercer Ditch, a structurally deficient bridge owned by the City. 6. Items Relating to the Clydesdale Park First and Second Annexations. (Adopted) A. Second Reading of Ordinance No. 131, 2014, Annexing Property Known as the Clydesdale Park First Annexation. B. Second Reading of Ordinance No. 132, 2014, Amending the Zoning Map and Classifying for Zoning Purposes the Property included in the Clydesdale Park First Annexation. C. Second Reading of Ordinance No. 133, 2014, Annexing Property Known as the Clydesdale Park Second Annexation. D. Second Reading of Ordinance No. 134, 2014, Amending the Zoning Map and Classifying for Zoning Purposes the Property included in the Clydesdale Park Second Annexation. These Ordinances, unanimously adopted on First Reading on October 7, 2014, annex and zone the existing Clydesdale Park subdivision located east of Interstate 25, south of the intersection of East Mulberry Street and Carriage Parkway. Clydesdale Park includes 217 single-family residential lots on approximately 75 acres. Residents of the Clydesdale Park neighborhood have requested annexation. The requested zoning for these annexations is the Low Density Mixed-Use Neighborhood District (L-M-N), which is in compliance with the City of Fort Collins Structure Plan. 7. Second Reading of Ordinance No. 135, 2014, Appropriating Unanticipated Revenue in the General Fund and Authorizing the Transfer of Existing Appropriations From the General Fund to the Capital Projects Fund for the Woodward Related Transmission Line Relocation Project. (Adopted) This Ordinance, unanimously adopted on First Reading on October 7, 2014, appropriates an additional $254,000 for the Transmission Line Relocation portion of the Woodard Public Improvements Project. 8. Items Relating to Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts between Funds or Projects. (Adopted) A. First Reading of Ordinance No. 140, 2014, Appropriating Prior Year Reserves and Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated Amounts Between Funds or Projects. B. First Reading of Ordinance No. 141, 2014, Appropriating Prior Year Reserves in the Benefits Fund for Unanticipated Expenditure Increases. City of Fort Collins Page 428 C. First Reading of Ordinance No. 142, 2014, Appropriating Prior Year Reserves in the Transportation Services Fund to be Used to Cover Snow Removal Expenses. D. First Reading of Ordinance No. 143, 2014, Appropriating Prior Year Reserves in the Self- Insurance Fund for Insurance Expenses. The purpose of this item is for the Annual Year-End Adjustment. This year it is comprised of 4 separate ordinances. Ordinance No. 140, 2014, is for the appropriation of non-controversial expenses related to unanticipated revenue, grants, and unforeseen costs that had not previously been budgeted. Ordinance No. 141, 2014, appropriates funds from the Benefits Fund to cover unanticipated expenditures and employee benefits. Ordinance No. 142, 2014, appropriates funds for snow removal for the remainder of 2014 as the entire snow removal budget has been spent. Ordinance No. 143, 2014, appropriates prior year reserves for property and liability claims that are expected to exceed budget. 9. Items Relating to City Code Clarifications for Plant Investment Fees. (Adopted) A. First Reading of Ordinance No. 147, 2014, Amending Chapter 26 of the City Code to Revise Water Plant Investment Fees, Excess Water Surcharge Rates and Raw Water Requirements for Meters Larger Than Two Inches in Size. B. First Reading of Ordinance No. 148, 2014, Amending Section 26-284 of the City Code to Clarify the Calculation of Infiltration and Inflow in Determining Sewer Plant Investment Fees. The purpose of this item is to address several sections of Chapter 26 of the City Code relating to how plant investment fees are calculated and when the Excess Water Use Surcharge is applicable. These changes do not impact the amount charged for plant investment fees or the Excess Water Use Surcharge but rather seek to clarify the exact calculation of the fees. 10. First Reading of Ordinance No. 148, 2014 Approving a First Amendment to the Agreement with Woodward, Inc. (Adopted) The purpose of this item is to amend the Agreement with Woodward, Inc. and the Fort Collins Downtown Development Authority by changing a key date in the requirement of the City Manager to present City Council with a package to renew the Building on Basics dedicated sales tax including funding for Lincoln Boulevard Improvements. On April 2, 2013, City Council approved (6-1; Nays: Ohlson) on Second Reading the “Agreement with Woodward, Inc.” relating to the relocation and construction of the company’s headquarters and expanding its manufacturing and office facilities (the “Agreement”). The Fort Collins Downtown Development Authority (“DDA”) is also a party to the Agreement. The Agreement authorized a business assistance package that includes the reimbursement and rebate of taxes and contemplates construction of several public improvement projects. One aspect of the Agreement (Section 4.1(d)) relates specifically to improvements to Lincoln Boulevard. The Agreement contemplates that the City Manager will submit a package for City Council’s consideration that would help fund these improvements “by a renewal of the Building on Basics dedicated sales tax…on a schedule to allow consideration of that measure by voters no later than November 2014.” The current schedule contemplates consideration of a renewal of the Building on Basics dedicated sales tax in April 2015. Therefore, the Agreement requires amendment to reflect the new schedule and date. 11. First Reading of Ordinance No. 148, 2014, Vacating a City Trail Easement and Any Associated Rights on Colorado State University Property Between Centre Avenue and Bay Road. (Adopted) The purpose of this item is to vacate a trail easement, located between Centre Avenue and Bay Road, that was obtained from Colorado State University Research Foundation (CSURF) in 1979 (including any prescriptive rights that may exist). This segment of the Spring Creek trail was City of Fort Collins Page 429 replaced with a new and superior alignment in 2013 from an additional trail easement obtained from Colorado State University (CSU) and Colorado State University Research Foundation. 12. Resolution 2014-096 Adopting an Updated Process for City Council Evaluation of the Performance of the City Manager, City Attorney and Municipal Judge. (Adopted) The purpose of this item is to modify the performance evaluation process for the City Manager, City Attorney and Municipal Judge (Employees) to allow for flexibility in the methods used to gather input from Councilmembers for the annual performance review and to remove the requirement for a separate meeting with the Mayor, Mayor Pro Tem and each Employee to discuss the Employee’s compensation and benefits.  END CONSENT  CONSENT CALENDAR FOLLOW-UP Councilmember Cunniff requested information regarding the future of the Airport. City Manager Atteberry replied the Airport Steering Committee met recently to examine the Airport’s strategic visioning and tactical plan.  STAFF REPORTS Chief Gary Barbour, Frederick Police Chief and 2 nd Vice President of the Colorado Association of Chiefs of Police, presented Chief Hutto with a certificate from the Colorado Police Chiefs and Sheriffs Association, verifying that Fort Collins Police Services has met the State standards for accreditation. He discussed the standards which must be met in order to be accredited.  COUNCILMEMBER REPORTS Councilmember Cunniff reported on a meeting with representatives from Poudre School District and Larimer County. Bbudget items and swimming pool funding were discussed. Councilmember Troxell reported on a visit to Niner Bikes and its receipt of the Governor’s Award for Colorado Companies to Watch. Mayor Weitkunat reported on the Niner Bikes visit and Fort Collins four winners of the Governor’s Award. Additionally, she reported on the Finance Committee meeting in which a long term financial plan was discussed.  CONSIDERATION OF COUNCIL-PULLED CONSENT ITEMS 13. First Reading of Ordinance No. 146, 2014, Revising Chapter 26 of the City Code Regarding Payments in Lieu of Taxes and Franchise Fees, and Specifying that the Operation and Maintenance of the Street Lighting System is an In Kind Payment by the Light & Power Fund in Lieu of Taxes and Franchise Fees. (Postponed to October 28, 2014) The purpose of this item is to codify the longstanding City policy and practice whereby the Light & Power Fund has been responsible for providing municipal street lighting as an in-kind payment to the General Fund as part of the Electric Utility’s payment in lieu of taxes and franchise fees. The Ordinance also revises the language related to the Water and Wastewater Funds’ required 6% payment to the General Fund to clarify that this is a payment in lieu of taxes and franchise fees (as opposed to just a payment in lieu of taxes). This change is consistent with Article V, Section 23 of City of Fort Collins Page 430 the City Charter and with the wording used in City Code to reference the same fee paid by the Light & Power Fund. Councilmember Cunniff stated he pulled this item due to questions relating to legal issues and suggested the possibility of an executive session or postponement of consideration of the item. Eric Sutherland, 3520 Golden Currant, stated this item should receive additional consideration. Councilmember Cunniff made a motion, seconded by Councilmember Poppaw, to postpone consideration of this item to the October 28 adjourned meeting. Councilmember Troxell requested rationale for the postponement request. Councilmember Cunniff replied he has unanswered questions regarding legal issues and would like to ask them in an Executive Session. Councilmember Troxell asked if the Executive Session could occur between readings. Councilmember Cunniff replied he would like the information prior to First Reading. RESULT: POSTPONED TO October 28, 2014 [6 TO 1] MOVER: Ross Cunniff, District 5 SECONDER: Lisa Poppaw, District 2 AYES: Weitkunat, Overbeck, Poppaw, Campana, Cunniff, Horak NAYS: Troxell  DISCUSSION ITEMS 14. Items Relating to the Disposable Bags Referendum Petition. (Ordinance No. 152, 2014, Adopted on First Reading) A. Presentation of a Certified Petition Seeking to Repeal Ordinance No. 099, 2014, Amending Chapter 12 of City Code to Establish Regulations Regarding Disposable Bags. (No Action Needed) AND B. First Reading of Ordinance No. 151, 2014, Repealing Ordinance No. 099, 2014, Amending Chapter 12 of City Code to Establish Regulations Regarding Disposable Bags. OR C. First Reading of Ordinance No. 152, 2014, Calling a Special Election for the Purpose of Submitting to the Registered Electors a Citizen Referendum of Ordinance No. 099, 2014 Amending Chapter 12 of the Code of the City of Fort Collins Establishing Regulations Regarding Disposable Bags OR D. Resolution 2014-097 Referring Ordinance No. 099, 2014, Amending Chapter 12 of City Code to Establish Regulations Regarding Disposable Bags to a Vote of the Registered Electors of the City at the Next Regular Municipal Election on April 7, 2015. On September 29, 2014, a referendum petition was filed with the City Clerk’s Office seeking to repeal Ordinance No. 099, 2014, Amending Chapter 12 of City Code to Establish Regulations Regarding Disposable Bags. On October 10, 2014, the City Clerk determined that the referendum petition was sufficient, absent a protest being filed by the October 9 deadline. City of Fort Collins Page 431 Upon presentation to the Council of a petition certified as sufficient for referendum, the operation of the ordinance in question is automatically suspended pending repeal by the Council or final determination by the voters. If the ordinance is not repealed, the Council must refer the ordinance to a vote of the registered electors at the next regular or special City election scheduled for any other purpose. If the Council chooses to refer the measure to the voters, the Council may call a special election for this specific purpose. The earliest practical opportunity for a special election would be January 2015. If the Council chooses to wait until April 2015 to have the voters consider this issue, Resolution 2014-097 is presented to place the issue on the ballot and set the ballot language. If Council opts for a special election on another date, a revised Resolution will be presented to Council on November 4 in conjunction with Second Reading of the Ordinance calling the special election. City Clerk Nelson stated the purpose of this item is to present to Council a certified referendum petition. She reviewed the history of the disposable bag fee Ordinance and outlined Council’s options: repealing of Ordinance No. 099, 2014, referring the Ordinance to the April 7, 2015 regular election, or referring the Ordinance to a special election. Mike Pruznik, Citizens for Recycling Choices President, supported repealing the Ordinance. Dana Nance, 4215 Applegate Court, discussed plastic bags being made in the U.S. and reusable bags being made in China. Cathy Zitti, Fort Collins resident, supported repealing the Ordinance. Lisa Nothen, 433 Bow Creek Lane, supported repealing the Ordinance and stated the recordkeeping requirements are burdensome. Robert Unfug, Fort Collins resident, supported repealing the Ordinance. Joe Piesman, Fort Collins resident, supported the original Ordinance for the bag fee focused on grocery stores. He supported allowing a vote on the issue. Jeff Bailey, Citizens Against Bag Taxes President, supported repealing the Ordinance. Grant Hoekstra, 573 Dennison Avenue, supported repealing the Ordinance. Rudy Zitti, Fort Collins resident, supported repealing the Ordinance. Jim Burrill, 305 North Meldrum, supported repealing the Ordinance. Councilmember Troxell requested an update regarding the City’s use of plastic bags. City Manager Atteberry replied that is a difficult issue, particularly with regard to the Parks Department. He stated specific solutions will be forthcoming. Jeff Mihelich, Deputy City Manager, replied staff has completed a robust look at the City’s use of plastic bags throughout its operations and have determined compostable bags will be a remedy for many situations. He stated a more formal report will be forthcoming and implementation can occur immediately. Councilmember Troxell thanked those who organized the citizen initiative. City of Fort Collins Page 432 Councilmember Troxell made a motion, seconded by Mayor Pro Tem Horak, to adopt Ordinance No. 151, 2014, repealing Ordinance No. 099, 2014. Councilmember Poppaw stated she would not support the motion and stated she would like citizens to have the opportunity to vote on the issue. Councilmember Cunniff stated he would support the motion despite his belief that an election could potentially result in voters upholding the ban. Councilmember Campana expressed his belief that the City can be more innovative in its approach to waste management and commended the overall process. Mayor Pro Tem Horak stated he would support the motion. Councilmember Troxell supported allowing consumers to do the right thing at the point of purchase. Councilmember Campana commended the City organization’s efforts at reducing plastic bag use. Mayor Weitkunat stated she would support the motion and expressed respect for the process. RESULT: ORDINANCE NO. 151, 2014, ADOPTED ON FIRST READING [6 TO 1] MOVER: Wade Troxell, District 4 SECONDER: Gerry Horak, District 6 AYES: Weitkunat, Overbeck, Campana, Troxell, Cunniff, Horak NAYS: Poppaw 15. Resolution 2014-098 Establishing Priority Actions to Create Zero Waste in Fort Collins. (Adopted as Amended) The purpose of this item is to present a resolution that expresses commitment to Fort Collins’ goal of Zero Waste by 2030. The resolution enumerates strategic actions for the City to take now and in coming years, which were developed for the Road to Zero Waste Plan to deliberately and systematically drive progress forward over the next decades. Lucinda Smith, Environmental Services Director, stated this Resolution identifies major steps which can be taken on the City’s road to zero waste. Susie Gordon, Senior Environmental Planner, discussed the City’s waste reduction goals and stated this Resolution would reinforce the City’s commitment to its zero waste goals and will increase waste diversion from landfill disposal. Joe Piesman, Fort Collins resident, supported the Resolution and supported funding for a regional recycling center and organics transfer station as well as a waste to clean energy program. Mike Pruznick, Fort Collins resident, supported the spirit of the Resolution but requested additional research on certain items. He supported solutions that generate choices rather than parental government. City of Fort Collins Page 433 Mayor Pro Tem Horak questioned how this Resolution relates to the budget offers for the upcoming budget. Smith discussed the Environmental Services budget offers and stated funding for those will provide a good start toward funding for these items. City Manager Atteberry clarified those items are funded in the proposed recommended budget. Councilmember Cunniff asked if resources are adequate to study and inform Council in time for the mid-year budget adjustment. City Manager Atteberry replied in the affirmative and stated it would be rushed to attempt an offer before the budget is adopted. Councilmember Troxell stated waste should be thought of as a resource. He asked about a waste stream analysis. Smith replied the waste stream analysis budget offer would provide funding to help evaluate working with regional partners. Councilmember Troxell asked how citizens can be assured this Resolution is not a back door to another bag fee item. City Attorney Daggett replied Council could express its desire to not see that issue come forward as part of this effort. Councilmember Cunniff made a motion, seconded by Councilmember Troxell, to adopt Resolution 2014-098 as amended per Councilmember Cunniff’s language. Councilmember Cunniff read his proposed language changes. Mayor Weitkunat expressed concern regarding the inclusion of a specific date for construction of the recycling facility. Councilmember Cunniff stated his concern was that the previous language could imply that the budget offers would not even begin construction until that date. Mayor Pro Tem Horak suggested reinserting "by December 31, 2016" meets the same intent. Councilmembers Cunniff and Troxell accepted the language change as a friendly amendment. Councilmember Troxell requested clarification on Councilmember Cunniff's language change relating to certain household hazardous waste. Councilmember Cunniff replied he was intending to refer to the plans staff had developed on which hazardous household waste would be recyclable. Gordon replied four items were considered: antifreeze, batteries, used oil and paint. Councilmember Cunniff stated the phrase could be replaced with the detailed list. Councilmembers held a brief discussion regarding packaging used by larger retailers. Councilmember Troxell suggested striking section D as proposed by Councilmember Cunniff. Councilmember Cunniff stated he would not support that change. Mayor Pro Tem Horak suggested leaving the first clause in section D and eliminating specifics in order to allow staff the flexibility to look at ideas. Councilmembers Troxell and Cunniff accepted the compromise language. Councilmember Troxell stated he would like to add a Whereas clause indicating Ordinance No. 151, 2014, was passed on First Reading. City Attorney Daggett suggested language indicating Council has opted to reach its zero waste goals through means other than bag fees or taxes. Councilmembers Cunniff and Troxell accepted the language change as a friendly amendment. City of Fort Collins Page 434 Councilmember Campana expressed concern regarding language indicating direct solutions. Mayor Weitkunat clarified the language would read "including exploration." Councilmembers Cunniff and Troxell accepted the language change as a friendly amendment. Mayor Weitkunat commended the work on the Resolution. RESULT: RESOLUTION 2014-098 ADOPTED AS AMENDED [UNANIMOUS] MOVER: Ross Cunniff, District 5 SECONDER: Wade Troxell, District 4 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak 16. Second Reading of Ordinance No. 137, 2014, Appropriating Capital Project Funding in the Light and Power, Water, Wastewater, and Stormwater Drainage Enterprise Funds and Authorizing the Transfer of Appropriations to the Cultural Services and Facilities Fund for the Art in Public Places Program, for the Construction of a New Utilities Administration Building in Block 32 on LaPorte Avenue and Renovation of 700 Wood Street. (Adopted on Second Reading) This Ordinance, unanimously adopted on First Reading on October 14, 2014, provides funding for the construction of a new Utility Administration Building within Block 32 on LaPorte Avenue, as well as renovation of the existing Utility Service Center at 700 Wood Street. The total combined project costs are $23,411,000 with $4,500,000 already appropriated from Light and Power reserves, leaving $18,911,000 to be appropriated with this ordinance. City Manager Atteberry discussed the history of this item and the need for the building improvements. He also noted staff’s recognition of the need for improvements to capital plan integration. Eric Sutherland, 3520 Golden Currant, questioned the necessity of this building and stated this building should not be a priority for the City’s Utilities. Councilmember Troxell made a motion, seconded by Councilmember Campana, to adopt Ordinance No. 137, 2014, on Second Reading. Mayor Pro Tem Horak requested staff’s input regarding why the business case makes sense and benefits to the rate payers. Mike Beckstead, Chief Financial Officer, replied the Wood Street facility is out of space, the existing space does not meet fundamental needs, and the building is not energy efficient and is failing mechanically. Additionally, he discussed the need for a single point of contact location for Utility customers, the benefits of having a campus of municipal buildings, and the safety benefit of separating the operations center from the customer center. Kevin Gertig, Utilities Executive Director, discussed the age of the Wood Street building and the need to practice energy efficiency. Additionally, he discussed the need for improved customer service and stated there is a very rigorous process in place for underground infrastructure and treatment facilities capital projects. Mayor Pro Tem Horak stated there are compelling reasons to remodel the Wood Street facility; however, he requested additional information regarding the benefits for a new downtown building. Beckstead replied this building is needed as much as the other capital needs identified in the capital plan. He noted cash is available to fund the project and it would be a complicated transaction to fund with debt. City Manager Atteberry discussed the long-term value of a municipal campus. City of Fort Collins Page 435 Councilmember Cunniff requested information regarding the capital maintenance plan for the facility. Beckstead replied the City’s ten-year capital plan will include ongoing maintenance costs for City infrastructure. Councilmember Cunniff questioned whether the plant investment fee (PIF) could cover capital costs for such office buildings in the future. Beckstead replied staff will be coming before Council in March with an evaluation of PIF and what can be done to include administration buildings in the PIF calculation. Councilmember Cunniff requested assurance that this type of issue will not come forth again. Beckstead replied administrative buildings have not been part of the Utilities capital plans for forty or fifty years. He admitted there is a need for improvement and stated buildings will be included in future capital plans. City Manager Atteberry replied other large municipal buildings were planned for many years, but were not part of a capital plan. He assured Council that future building needs will be part of a different process. Councilmember Cunniff asked if the project will be built as identified given rising construction costs. Ken Mannon, Operations Services Director, replied costs were increased by large energy improvement goals and by the inclusion of additional space. Councilmember Campana acknowledged the need for the improvements and new building but questioned whether the Wood Street location is the best for Utilities crew space. Mannon replied satellite facilities have been considered and ways to increase efficiency will be evaluated. Councilmember Campana asked how operations would be affected if that remodel were delayed until a full assessment was completed. Mannon replied the majority of the money for the remodel will go toward energy efficiencies rather than the renovation of space. City Clerk Nelson noted the actual Ordinance title contains a few clarifying words and read the title into the record. Mayor Weitkunat discussed the importance of the City being a role model for energy efficiency. RESULT: ORDINANCE NO. 137, 2014, ADOPTED ON SECOND READING [UNANIMOUS] MOVER: Wade Troxell, District 4 SECONDER: Gino Campana, District 3 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak (Secretary's note: The Council took a brief recess at this point in the meeting.) 17. First Reading of Ordinance No. 153, 2014,Being the Annual Appropriation Ordinance Relating to the Annual Appropriations for the Fiscal Year 2015; Adopting the Budget for the Fiscal Years Beginning January 1, 2015, and Ending December 31, 2016; and Fixing the Mill levy for Fiscal year 2015. (Adopted as Amended on First Reading) The purpose of this item is to present the Annual Appropriation Ordinance for First Reading. This Ordinance sets the City Budget for the two-year period (2015–16) which becomes the City’s financial plan for the next two fiscal years. This Ordinance sets the amount of $552,694,350 to be appropriated for fiscal year 2015. Including the 2015 adopted budgets for the General Improvement District (GID) #1 of $1,193,565 and General Improvement District (GID) #15 (Skyview) of $1,000 as well as the Urban Renewal Authority (URA) of $2,408,457 the total City operated appropriations amount to $556,297,372. City of Fort Collins Page 436 This Ordinance also sets the 2015 City mill levy at 9.797 mills, unchanged since 1991. City Manager Atteberry discussed the significant effort put into the development of this budget and noted the effort put into soliciting involvement from hard-to-reach populations. Additionally, he stated this budget is stronger with Council’s formal additions. Mike Beckstead, Chief Financial Officer, stated this budget is based on the City’s Strategic Plan. He discussed the high-level themes of the budget and highlighted specific items proposed for funding. There is a $3.5 million budget increase in 2015 and a $1.4 million increase in 2016 over the original recommended budget, based on Council-directed additions. He stated the dollars for those increases came from one-time funding, additional sales tax forecast for 2014, and other funding based on offer changes. This budget strengthens key services in Police, transportation, parks and recreation, enhances many items based on community priorities related to environment, social sustainability, transit, and key city infrastructure, continues the obligation to Fort Collins citizens to honor Keep Fort Collins Great commitments, and provides for long- term investments. Eric Sutherland, 3520 Golden Currant, opposed funding for the Boxelder Stormwater Authority and opposed stormwater policies. Chris Winslow, Fort Collins resident, supported funding for the Fort Collins Public Access Network. Bill DeMarco, 913 Kimball Road, supported the Climate Action Plan and funding for a fossil- free future. Janice Lynne, 218 South Washington, supported funding for climate change research Kevin Cross, Fort Collins Sustainability Group, supported funding for the LED street light replacement program and community engagement for a fossil-free future. Mike Pruznick, Fort Collins resident, supported funding for the Small Business Development Center and the Fort Collins Public Access Network. He encouraged funding for the fossil-free future item. Jerell Klaver, Solace Natural Bath and Body Care, opposed on-street paid parking. Tom Hoehn, 218 South Washington, supported funding for the LED street light replacement program. Cheryl Distaso, Fort Collins Community Action Network, supported funding for the Fort Collins Public Access Network, evening and night Transfort Service, the integrated pest management position, and lockers and cold weather shelters for homeless residents. Mayor Weitkunat requested clarification regarding downtown paid parking. Beckstead replied the pilot program for on-street paid parking has been removed from the budget; however, $50,000 has been added to the 2015 budget for public outreach and the policy discussion. Mayor Weitkunat requested clarification regarding the LED street light replacement program. Beckstead replied the total investment necessary for total replacement citywide is $6.3 million and the payback based on savings totaled about $275,000 per year. He stated the budget City of Fort Collins Page 437 proposal was for one phase, at about $1 million, which had a thirty-two year payback. He stated the consensus was to let technology evolve and let costs come down prior to moving forward. City Manager Atteberry noted a significant amount of time was spent on the issue and staff concluded funding is not being recommended at this time due the issue of timing; however, he noted staff is very supportive of the project. Councilmember Cunniff asked if funding is adequate to do the type of planning necessary in anticipation of the LED replacement project being feasible. City Manager Atteberry replied additional resources are not needed at this point. Steve Catanach, Light and Power Executive Director, replied staff believes prices will be low enough by 2017 to make the project more attractive. Councilmember Poppaw requested specific answers to Ms. Distaso's questions. Bruce Hendee, Chief Sustainability Officer, replied the $25,000 budget offer provides $19,000 per year to provide for a homeless management information system and $6,000 for the winter shelter. The homeless management information system funds could be used for lockers if they are not needed by Homeward 2020 Councilmember Poppaw requested additional information regarding the coordination between the Housing Authority and Homeward 2020 regarding the topic prior to Second Reading. Councilmember Poppaw asked if Council would support setting aside funding for the lockers prior to Second Reading. Councilmember Campana asked if a location has been determined for the lockers. Councilmember Poppaw replied conversations are occurring regarding location. Hendee replied funding would be about $35,000 and that is likely discoverable; however, additional questions need to be answered. City Manager Atteberry requested confirmation that providing funding for lockers is Council's direction. Mayor Pro Tem Horak questioned whether the lockers are the sole responsibility of the City and stated he needs additional information prior to making a decision. Councilmembers Cunniff and Overbeck supported funding or partnering to fund the lockers and cold weather shelters. City Manager Atteberry stated an offer can be drafted prior to Second Reading. City Attorney Daggett stated an adjustment to the appropriation ordinance may also be required. Mayor Pro Tem Horak supported examining the lockers but stated he did not want to be prescriptive in declaring that lockers are the answer. Councilmember Troxell agreed with Mayor Pro Tem Horak stating this would be out of process. He suggested any solution needs to make sense in terms of making an impact on the homelessness issue in Fort Collins. Mayor Weitkunat stated other mechanisms exist for accommodating funding. City of Fort Collins Page 438 Councilmember Cunniff noted the immediate importance of winter shelters and argued it is within the budget process to consider offers for policy outcomes such as lockers. City Manager Atteberry suggested having the conversation as part of 2014 rather than the next budget cycle. Councilmember Poppaw suggested the issue be discussed now rather than when the need for emergency winter shelters is immediate. Councilmember Cunniff requested information regarding the critical need for the laptop replacement funding in Police Services. Beckstead replied laptops are on a 5-year replacement cycle through the City's IT department. Police Chief Hutto replied this is an ongoing replacement of the laptops used in Police vehicles. Councilmember Troxell made a motion, seconded by Councilmember Campana to adopt Ordinance No. 153, 2014, as amended, on First Reading. Councilmember Cunniff requested support for including the community engagement for a fossil- free future offer and possibly the purchasing sustainability buyer offer. He asked if that position would still add value to and institutionalization of the sustainable purchasing program. Beckstead replied the position was already intended to be temporary and was funded through KFCG in 2013-14. He stated the sustainability push in purchasing will not decrease without this position. Councilmember Cunniff asked what could be accomplished with one more year of this position. Beckstead replied there is not a specific response to that question. Councilmember Cunniff requested support for restoring some or all of the funding for the Green Streets offer. Mayor Pro Tem asked about specifics regarding the fossil-free future offer and if the funds are slated to come from the General Fund. Lucinda Smith, Environmental Services Director, replied this item is intended to further develop and implement engagement strategies in the community to help meet the objectives of the Climate Action Plan, included limited funding for an hourly employee, one-time funding for a consultant to consider the messaging around climate action and the actions necessary to make the issue relevant to people, and funding for outreach and engagement. Beckstead replied the proposed funding source was KFCG; however, that funding has all been utilized. He stated the new funding source was planned to be General Fund; however, he understands the question about funding coming from Utilities. Mayor Pro Tem suggested the funds should come from whatever areas of the City will receive the benefit of the work. Beckstead replied he is uncertain if this would qualify as a Utility expenditure. Mayor Pro Tem Horak asked how public engagement staff will be involved if this item were to be funded. Smith replied the staff would be involved in any messaging and marketing campaign; however, resource limitations will require additional support to further engage the community. Councilmember Overbeck stated he would like the process to start with a vision and plan regarding a fossil-free future. City of Fort Collins Page 439 Councilmember Troxell expressed support for the budget and new offers which Council has included over the last couple months. He questioned the need for including additional offers unless a compelling need exists. Mayor Pro Tem Horak expressed support for the overall item; however, he disagreed it is ready to be funded at this time. Councilmember Cunniff expressed the need to bring forth specific actions toward the Climate Action Plan sooner rather than later. Councilmember Cunniff made a motion, seconded by Councilmember Poppaw, to restore full funding for the Green Streets program. He stated this item would provide street calming alternatives for neighborhood and secondary streets across the city. City Manager Atteberry noted Green Streets is geared specifically toward Remington. He suggested setting aside dollars to leverage opportunities for striping or traffic calming projects as part of the neighborhood revitalization offer. Councilmember Cunniff withdrew his previous motion and made a motion, seconded by Councilmember Overbeck, to include an additional $300,000 per budget year of street calming and neighborhood livability improvements within the neighborhood revitalization offer, 48.3. City Manager Atteberry clarified the General Fund and Light and Power each provide half of those dollars in each year and clarified the additional funds requested would need to come from the General Fund. Councilmember Campana expressed concern regarding the process of randomly adding pools of money to attempt to throw bandages on issues without a full vetting process. Councilmember Troxell agreed with Councilmember Campana's concerns. Mayor Weitkunat noted adjustments can be made during off-year budget discussions and did not support the amendment. Mayor Pro Tem Horak asked about the existing location of these items in the budget. Karen Cumbo, Planning, Development, and Transportation Services Director, replied neighborhood traffic calming comes from a variety of sources. Mayor Pro Tem Horak stated he would support some smaller numbers in this amendment with additional information being provided prior to Second Reading. Councilmember Cunniff made an amendment to his motion to request $100,000 from General Fund Reserves in 2015 and $400,000 from General Fund Reserves in 2016, in a budget item to be determined prior to Second Reading. Councilmember Overbeck accepted the amendment. Councilmember Troxell objected to the process and stated he would not support the motion to amend the budget. Mayor Weitkunat agreed. The vote on the motion to amend was as follows: Yeas: Overbeck, Campana, Horak, Cunniff and Poppaw. Nays: Troxell and Weitkunat. THE MOTION CARRIED. City of Fort Collins Page 440 Mayor Pro Tem Horak discussed the lack of transit service to Foothills Gateway and stated the $150,000 would provide shuttle service to Foothills Gateway for transit-dependent Fort Collins residents Monday through Friday. He stated he is advocating for a budget offer to be presented for Council consideration at Second Reading. City Manager Atteberry agreed that is a blind spot in transit funding. (Secretary's note: The Council took a brief recess at this point in the meeting.) Mayor Weitkunat announced the two scheduled General Improvement District meetings following the regular Council meeting will be continued to November 4, 2014. Councilmember Cunniff suggested eliminating the Police training facility funding from the budget given information from Liberty Arms. Chief Hutto agreed the proposal represents an opportunity that will still need vetting. City Manager Atteberry noted the City's financial commitment was intended to match Loveland's contribution in design and engineering work; therefore, if the issue with Liberty Arms gets resolved, the intention is to move forward on design and payments will be due. City Manager Atteberry stated additional information will be provided prior to Second Reading. Councilmember Cunniff made a motion, seconded by Mayor Pro Tem Horak, to eliminate funding for the Assistant Manager at the Gardens on Spring Creek. Marty Heffernan, Cultural, Parks, Recreation and Environment Director, stated the offer would provide additional management support for future growth of the Gardens. The vote on the motion was as follows: Yeas: Horak, Cunniff, Poppaw and Overbeck. Nays: Troxell, Campana and Weitkunat. Councilmember Cunniff discussed the computer replacement policy and stated it would save the City $116,000 in 2015 and $86,000 in 2016 should the City stay with a five-year replacement policy versus switching to a four-year replacement policy. Beckstead replied the City's policy used to be a four-year replacement; however, that changed during the economic slowdown of 2009 and 2010 and the policy was changed to a five-year replacement. City Manager Atteberry stated this is more about a business practice rather than acquiring the newest machines. Dan Coldiron, Chief Information Officer, replied the City had been in a four- year replacement cycle and switched not only to a five-year policy, but to a break-fix mode which has created a situation in which the ramifications are still being dealt with. Several surrounding municipalities are on a four-year replacement cycle and staff's analysis took into account the full spectrum of costs related to maintaining PCs over time. The results of that research showed a break-even point at about four years with a dramatic total cost of ownership increase at five years. Additionally, he discussed concerns relating to operating system obsolescence. Councilmember Cunniff noted the operating system obsolescence is being driven currently by the Windows XP lifecycle ending; therefore a one-time offer for those replacements make sense. He stated hardware requirements have not changed for Microsoft operating systems since Windows Vista and therefore questioned the hardware replacement policy. Coldiron stated inefficiencies are being seen organization-wide, not solely in the CAD and GIS areas. City of Fort Collins Page 441 Councilmember Cunniff requested additional specificity regarding the replacement policy prior to Second Reading. He went on to discuss other items he supported removing from the budget and requested an explanation of the exclusion of certain offers. Councilmember Overbeck discussed City employees making $8 an hour and suggested an increase to $9 or more per hour. He stated the City needs to take the lead on addressing wage gap issues. City Manager Atteberry stated the financial ramifications would likely be minimal given the City's total personnel budget. Councilmember Cunniff requested additional details prior to Second Reading. Mayor Weitkunat noted that is a compensation policy issue rather than a budget issue. City Manager Atteberry stated the issue could be dealt with as an appropriation in the budget or as part of a process outside the budget. RESULT: ORDINANCE NO. 153, 2014, ADOPTED AS AMENDED ON FIRST READING [UNANIMOUS] MOVER: Wade Troxell, District 4 SECONDER: Gino Campana, District 3 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak  Motion to Extend the Meeting past 10:30 p.m. RESULT: ADOPTED [6 TO 1] MOVER: Ross Cunniff, District 5 SECONDER: Bob Overbeck, District 1 AYES: Weitkunat, Overbeck, Campana, Troxell, Cunniff, Horak NAYS: Poppaw 19. Items Relating to Utility Rates, Fees and Charges for 2015. (Adopted on First Reading) A. First Reading of Ordinance No. 154, 2014, Amending Chapter 26 of the City Code to Revise Electric Rates, Fees and Charges. B. First Reading of Ordinance No. 155, 2014, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. C. First Reading of Ordinance No. 156, 2014, Amending Chapter 26 of the City Code to Revise Wastewater Rates, Fees, and Charges. The purpose of this item is to consider two Ordinances adjusting electric rates and fees and one Ordinance adjusting wastewater service rates for 2015. The City Manager’s Recommended 2015 City Budget includes small rate increases in the electric and wastewater utilities. The 1.9% electric rate increase is necessary due to increased operation and maintenance costs associated with the generation and transmission of the energy. The 3.0% wastewater rate increase is necessary to meet long term capital improvement needs due to anticipated regulatory changes and aging infrastructure. City of Fort Collins Page 442 The table above shows the overall changes in the operational revenues for each utility due to the proposed rate increases. In the discussion below the rate class specific adjustments are given for electric service. The proposed wastewater rate increase would be the same for all rate classes based on the wastewater cost of service study adjustments which were made for 2014. Electric development fee changes are proposed due to changes in material costs. Water and wastewater plant investment fees were updated for 2014 and will not be updated again until 2016. Lance Smith, Utilities Strategic Financial Planning Manager, introduced the three Ordinances: one increases electric rates by 1.9%, one adjusts electric development fees, and the third increases wastewater rates by 3%. Smith discussed the fee adjustments and the reasons for each. Eric Sutherland, 3520 Golden Currant, stated nothing has been done to capitalize on the investment made in smart meters, questioned the fixed charge increase, and stated marijuana grow operations should have electricity use taxed. Mike Pruznick, Fort Collins resident, asked about the fixed charge increase and questioned billing tier calculations. Smith stated the AMI smart meter investment facilitated the 2014 cost of service study, which is driving the decrease in the residential demand rate. The fixed charge consists of the cost of metering and generating and providing bills to customers, and while that charge has decreased for commercial users, a reallocation of costs on the residential billing side has increased and is being passed on in the fixed fee. Smith noted the fixed charge is a small portion of the fixed costs. Councilmember Cunniff stated conservation efforts could continue to be supported by subsidizing the fixed costs for some customers at the expense of others, as long as it is a benefit to the overall rate-payer structure. He asked if tiers will be changing as part of these adjustments. Smith replied in the negative. Councilmember Cunniff asked if existing capital plans are being used to model utility rates. Smith replied in the affirmative. Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance No. 154, 2014, on First Reading. 2015 Proposed Rate Adjustments Utility Proposed Adjustment Development Fees to Be Adjusted? Electric 1.9% Yes Water - - Wastewater 3.0% - Stormwater - - City of Fort Collins Page 443 RESULT: ORDINANCE NO. 154, 2014. ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance No. 155, 2014, on First Reading. RESULT: ORDINANCE NO. 155, 2014, ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance No. 156, 2014, on First Reading. RESULT: ORDINANCE NO. 156, 2014, ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak  CONSIDERATION OF CITIZEN-PULLED CONSENT ITEMS 20. Items Relating to Ethics Review Board Code Changes (Adopted on First Reading) A. First Reading of Ordinance No. 144, 2014, Amending Section 2-569 of the City Code Pertaining to Procedures of the Ethics Review Board. B. First Reading of Ordinance No. 145, 2014, Amending Section 2-568(a) of the City Code Pertaining to Definitions Applicable to Ethical Rules of Conduct. The purpose of the first ordinance is to adopt revisions to the City Code to simplify and expedite the process of initiating Ethics Review Board review of ethics complaints and to update provisions related to alternative composition of the Board in the event members of the Board are themselves the subject of a complaint. The second ordinance is intended to incorporate into the City Code the definitions related to conflicts of interest that are specified in the City Charter, and to add new definitions to assist in the interpretation and application of the conflicts of interest provisions in the City Charter and City Code. Mike Pruznick, Fort Collins resident, expressed concern regarding the decrease in “conflict of interest” items in this proposal. Mayor Weitkunat clarified one of the Ordinances to be considered with this item addresses the procedures of the Ethics Review Board and the other Ordinance adds definitions. City Attorney Daggett noted the provisions commented on are largely existing Charter definitions that are being added to the Code. Councilmember Cunniff stated this would incorporate definitions, as commonly interpreted by courts, into the Code. He noted citizens could put forth Charter amendments should they desire. City of Fort Collins Page 444 Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 144, 2014, on First Reading. RESULT: ORDINANCE NO. 144, 2014 ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Wade Troxell, District 4 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak Mayor Pro Tem Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance No. 145, 2014, on First Reading. RESULT: ORDINANCE NO. 145, 2014, ADOPTED ON FIRST READING [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Wade Troxell, District 4 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak  OTHER BUSINESS  ADJOURNMENT Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adjourn to 6:00 PM on Tuesday, October 28, 2014, so the Council may consider such additional business as may come before the Council including a possible Executive Session. RESULT: ADOPTED [UNANIMOUS] MOVER: Gerry Horak, District 6 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff, Horak The meeting adjourned at 11:31 PM. ______________________________ Mayor ATTEST: ________________________________ City Clerk City of Fort Collins Page 445 October 28, 2014 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council-Manager Form of Government Adjourned Meeting – 6:00 PM  ROLL CALL PRESENT: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff ABSENT: Horak Staff present: Atteberry, Daggett, Nelson  Executive Session Authorized. Councilmember Troxell made a motion, seconded by Councilmember Cunniff, to go into Executive Session for the purpose of meeting with the City's Attorneys and City Management Staff to discuss the following matters as permitted under Section 2-31(a)(2) of the City Code and Colorado Revised Statutes Section 24-6-402(4)(b): (1) specific legal questions related to litigation or potential litigation involving the City regarding federal review and permitting Halligan Reservoir and regarding certain City water rights, and (2) the manner in which particular policies, practices, or regulations of the City related to infrastructure requirements for development and payment for street lighting operations may be affected by existing or proposed provisions of federal, state, or local law. RESULT: ADOPTED [UNANIMOUS] MOVER: Wade Troxell, District 4 SECONDER: Ross Cunniff, District 5 AYES: Weitkunat, Overbeck, Poppaw, Campana, Troxell, Cunniff ABSENT: Horak (Council adjourned into Executive Session and returned at 7:05 p.m.) 2. First Reading of Ordinance No. 146, 2014, Revising Chapter 26 of the City Code Regarding Payments in Lieu of Taxes and Franchise Fees, and Specifying that the Operation and Maintenance of the Street Lighting System is an In Kind Payment by the Light & Power Fund in Lieu of Taxes and Franchise Fees. (Adopted on First Reading) The purpose of this item is to codify the longstanding City policy and practice whereby the Light & Power Fund has been responsible for providing municipal street lighting as an in-kind payment to the General Fund as part of the Electric Utility’s payment in lieu of taxes and franchise fees. The Ordinance also revises the language related to the Water and Wastewater Funds’ required 6% payment to the General Fund to clarify that this is a payment in lieu of taxes and franchise fees (as opposed to just a payment in lieu of taxes). This change is consistent with Article V, Section 23 of the City Charter and with the wording used in City Code to reference the same fee paid by the Light & Power Fund. Lance Smith, Utilities Strategic Financial Planning Manager, provided background on the payment in lieu of taxes (PILOT) topic. This Ordinance revises the City Code to align with the City’s long-term practice of Light and Power paying for and maintaining street lighting and adds clarification in the City Code that PILOT is not just for taxes, but also for franchise fees, with regard to the water and wastewater utilities. City of Fort Collins Page 446 Councilmember Troxell asked why Light and Power is paying for street lighting as an in-kind contribution. Smith replied Light and Power is being paid by the Light and Power fund as a service to the community; the in-kind phrase was not correct. Councilmember Troxell noted Light and Power also pays the 6% PILOT and questioned whether it is paying more than it should for the operation of street lights in the community. Smith replied that could be argued and stated the PILOT could be adjusted. Councilmember Troxell questioned whether some of these items should be financed through the General Fund. City Attorney Daggett noted the Charter does allow Council to set a payment in lieu of taxes and franchise fees to be paid by each of the utilities; therefore, it is within Council’s purview to consider that. Historically, Council has set a 6% PILOT which has been paid in addition to the utility funding street lighting. City Manager Atteberry stated a case could be made to increase the PILOT to cover any additional costs, including street lighting. He noted the annual cost of the program is about $1.3 million. Councilmember Campana supported raising the PILOT to cover those costs but stated he does not believe any type of inequity has occurred as a result of the previous practice. Councilmember Cunniff asked if the street lighting amount of $1.3 million is considered as part of the base utility rate. Smith replied the amount is not part of the fixed charge; it is collected through the variable charges based on electric consumption. Councilmember Cunniff stated he would not prefer to add a payment in lieu of franchise fee category. Mayor Weitkunat stated the word “franchise fee” was not included in the original language and this would provide clarification. City Attorney Daggett replied the Charter makes clear this is a payment in lieu of taxes and franchise fees and the electric utility provision specifically references taxes and franchise fees; however, the water and wastewater provisions do not. This change would provide a level of consistency. Councilmember Campana made a motion, seconded by Mayor Weitkunat, to adopt Ordinance No. 146, 2014, on First Reading. Councilmember Troxell stated he would not support the motion as Light and Power is an independent enterprise. He stated the fees should be captured as a PILOT and the street lights should be paid from the General Fund. Mayor Weitkunat stated she would support the Ordinance as it is a correction and movement toward consistency in Codes. The vote on the motion was as follows: Yeas: Weitkunat, Campana and Poppaw. Nays: Troxell, Cunniff and Overbeck. THE MOTION FAILED. City Manager Atteberry stated this Ordinance would codify a longstanding tradition in terms of payment and asked how he should proceed in terms of funding the street lighting program. City of Fort Collins Page 447 Mayor Weitkunat requested Council reconsider the vote and address some concerns prior to Second Reading. Councilmember Cunniff stated he would prefer this item to return as a straightforward PILOT increase. Councilmember Troxell stated he would be open to a reconsideration of the vote but encouraged a broader discussion of viewing the Utilities as an enterprise. Councilmember Cunniff requested a work session to discuss the PILOT, franchise fee, and General Fund options prior to bringing the item back for First Reading. Mayor Weitkunat encouraged a reconsideration of the vote. Councilmember Troxell made a motion, seconded by Mayor Weitkunat, to reconsider the vote on Ordinance No. 146, 2014. Yeas: Weitkunat, Campana, Poppaw and Troxell. Nays: Cunniff and Overbeck. THE MOTION CARRIED. Councilmember Troxell stated he would like to have a broader conversation regarding the Utilities at a work session. City Attorney Daggett stated it would be appropriate for a motion to postpone if it is Council's intent to push the discussion of this item to a later date. Councilmember Campana encouraged a vote on the First Reading of the Ordinance but supported additional conversations at a later date, stating this item is more of a clarification item. RESULT: ORDINANCE NO. 146, 2014, ADOPTED ON FIRST READING [4 TO 2] MOVER: Wade Troxell, District 4 SECONDER: Karen Weitkunat, Mayor AYES: Weitkunat, Poppaw, Campana, Troxell NAYS: Overbeck, Cunniff ABSENT: Horak  OTHER BUSINESS Councilmember Cunniff stated the Leadership Planning Team had requested Council discuss the proposal it has made with respect to campaign finance ordinance changes. He stated the goal is to encourage submittal of campaign finance reports in a timely manner. Council will be considering Charter amendments with respect to election provisions in the spring. Councilmember Troxell stated he would like to have a broader work session discussion regarding election and campaign provisions. Councilmember Overbeck stated he has recently been informed that the North Poudre Irrigation Company, of which the City is a 35% shareholder, is moving forward with a proposal to cut down hundreds of trees and he has not yet seen a report related to its following of state City of Fort Collins Page 448 guidelines regarding tree preservation. He requested a work session on the issue. City Manager Atteberry replied Councilmembers are being offered tours of the site. Kevin Gertig, Utilities Executive Director, replied Council will be receiving background information on the project, which is an operational maintenance issue. Councilmember Overbeck stated he would like Council to have a discussion prior to the removal of any trees. City Manager Atteberry suggested Council and staff reconsider the issue for a work session following the scheduled tour. Councilmember Cunniff noted this discussion is similar to the issue at Warren Lake. City Manager Atteberry stated Council’s concerns will be expressed to the North Poudre Executive Director. Councilmember Cunniff requested and received Council support to draft a Resolution to present to CSU’s Board of Governors outlining Council’s concerns with respect to the impacts of an on- campus stadium and expressing its preference for other options to be the preferred options.  ADJOURNMENT The meeting adjourned at 7:37 PM. ______________________________ Mayor ATTEST: ________________________________ City Clerk