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HomeMy WebLinkAboutMINUTES-10/21/2003-RegularOctober 21, 2003 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 21, 2003, 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: Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Councilmembers Absent: Bertschy. Staff Members Present: Fischbach, Krajicek, Roy. Citizen Participation Ronald Schumm, 5948 Colby Street, stated he disagreed with an e-mail that he had received that stated the City Attorney had advised the Mayor and Councilmember Hamrick not to meet with him because the subject property that he wanted to discuss could end up before the Council as a quasi- judicial action such as annexation and zoning. He stated the advice was that he should present his request to the entire Council. He stated he wanted to discuss 209 East Skyway Drive and how the staffs decision impacted him as a neighbor at 225 East Skyway Drive. He stated he was not prepared to discuss the issues at this time. He stated a letter was sent from the City to the County on this property specifically saying (1) that the City had no interest at this time in annexing the property at 209 East Skyway Drive and (2) that although the zoning designation was not compliant with the City Structure Plan the City would not object to such a rezoning if the County were to consider and approve it. He stated the letter indicated that the City was waiving its requirement for annexation of the property for this rezoning application. He stated he disagreed with the contents of the letter because it relinquished the rights of the City and the people that lived there to govern the property in the GMA under the intergovernmental agreement. He stated surrendering these rights and protections was a mistake. He stated staff had given him some superficial reasons for surrendering those rights and that staff had not yet addressed his concerns or answered his questions. He stated he had been told that a letter had been sent to him by the City Manager and that the City Manager was affirming the position of the staff. He stated he did not want the properties across the street from him that were in the County to change from the residential use defined in the Structure Plan as Urban Estates and at best be rezoned to commercial use or at worst be rezoned to industrial use. He stated the staff had reviewed this issue four times and on the first three reviews had said that annexation of the property would be considered. He stated the staff changed its position on the fourth review. He stated the County was moving rapidly to rezone this property based on the City granting permission to do so. He stated his opinion was that the County would not give this a thorough review and that rezoning would create a domino effect to surrounding residential properties 191 that would also go commercial. He stated the neighborhood would be better served if the rezoning took place under the higher standards and more thorough review of the City. He stated he asked the City and County staff for their files on the issue. He stated his information about the City action was taken from the County files. He requested that Council to direct the staff within seven days to give him their complete files and information on this. He stated he would be happy to pay for reproduction costs. Citizen Participation Follow-up Mayor Martinez asked if the information requested by Mr. Schumm was public. City Manager Fischbach replied in the affirmative. He stated his letter had not been sent to Mr. Schumm and that staff could look into the matter. He stated the City could not annex property that had a zoning violation and that the parcel in question was part of a much larger enclave that would be eligible for annexation next year. He stated part of the problem might be that the City does not maintain files on property outside of the City. He stated he would check on the City records that would be available. Mayor Martinez asked about Mr. Schumm's statement that this had been reviewed four times by the City and that the City changed its mind the fourth time. City Manager Fischbach stated he did not know and would let the Council know. Councilmember Hamrick asked if the property was eligible for annexation under the terms of the intergovernmental agreement with the County and if it would follow the City's annexation rules. City Manager Fischbach stated if the property was eligible, the City had the right to annex the property if it chooses under the annexation rules set out in State law. Councilmember Hamrick asked that the City Manager prepare a background memo that addressed whether the City was choosing not to rezone the property. City Manager Fischbach stated he would include that in a report to the Council. Aeenda Review City Manager Fischbach stated item # 17 First Reading of Ordinance No. 142, 2003, Authorizing the Issuance of City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Taxlncrement Revenue Bonds, Series 2003, Dated Their Delivery Date, in the Aggregate Principal Amount of $I,000,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects; and Providing for the Pledge of Certain IncrementalAd Valorem Tax Revenues to Pay the Principal of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds would be withdrawn from the Consent Calendar for discussion. He stated item #23 Resolution 2003- 117 Repealing and Readopting Guidelines for Initiating and Developing Council Ordinances and Resolutions had a revised Resolution to clarify that the Mayor and the Mayor Pro Tem made up the Council Leadership Team. 192 October 21. 2003 CONSENT CALENDAR 7. Consideration and Approval of the Council Meeting Minutes of September 2 2003 8. Second Reading of Ordinance No. 129, 2003, Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Vineyard Rezoning; This Ordinance, which was unanimously adopted on First Reading on October 7, 2003, rezones a portion of a tract of land located at the northeast corner of East Vine Drive and I- 25. This parcel is 78.6 acres in size and is currently zoned I — Industrial. The rezoning will rezone the eastern 43.8 acres of land from Industrial to Urban Estate residential, the remaining 34.8 acres of land adjacent to I-25 would remain zoned industrial. The parcel is designated as part of the 1-25 Special Corridor Study on the City of Fort Collins Structure Plan and Urban Estate on the recently adopted I-25 Subarea Plan. 9. Second Reading of Ordinance No. 134, 2003, Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. This Ordinance, which was unanimously adopted on First Reading on October 7, 2003, appropriates prior year reserves and unanticipated revenues in various funds to cover expenses that were not anticipated, and therefore not included in the 2003 budget. Item 13.3. includes an appropriation from Cultural Services & Facilities Fund - Museum prior year reserves for additional costs associated with the new entrance to the Museum. The appropriation in the Museum's budget needs to be transferred to the Capital Projects Fund - Museum Entrance Reorientation project and appropriated therein. This ordinance has been amended between First and Second Reading to authorize the transfer of $21,758, appropriated in the Museum's budget to the Capital Projects Fund - Museum Entrance Reorientation project. 10. Second Reading of Ordinance No. 135 2003 Appropriating Unanticipated Grant Revenue In the Equipment Fund and the General Fund for Congestion Mitigation and Air Quality Projects and Authorizing the Transfer of Appropriations. The City of Fort Collins was awarded a Congestion Mitigation and Air Quality (CMAQ) grant in 2002. This money was originally appropriated into the North Front Range Transportation & Air Quality Planning Council Fund (NFR) for the construction of a compressed natural gas (CNG) fueling facility, a natural gas appliance and an emission repair 193 October 21, 2003 project. However, at the end of 2002, the contract with the NFR lapsed and the projects were closed. The City of Fort Collins entered into a new contract with the Colorado Department of Transportation in January of 2003. This contract, as amended, includes funding for these Projects. Ordinance No. 135, 2003, was unanimously adopted on First Reading on October 7, 2003, appropriating unanticipated grant revenue for congestion mitigation and air quality projects. 11. Second Reading of Ordinance No. 136 2003 Making Certain Appropriations Related to Operating Expenses of the Metropolitan Planning Organization. As the host organization, the City has advanced its funds on behalf of the MPO and member organizations. When the MPO receives federal and state grant monies, it reimburses the City. In 2003, the MPO has taken steps to become an independent organization. With the independent status of the MPO, the monetary transactions between the two organizations should be recognized more formally. This Ordinance, which was unanimously adopted on First Reading on October 7, 2003, appropriates prior year reserve funds in the City's Transportation Fund to transfer to the MPO. The Ordinance also appropriates the reimbursements that the MPO has made and expects to make to the City. In 2003, the City expects that the transfers to the MPO will not exceed $2,100,000, the amount of the appropriation from prior year reserves and unanticipated (at the time the budget was adopted) revenue. 12. Second Reading of Ordinance No.137,2003 Amending the Legal Description of the Jacoby Farm Property and Authorizing the Sale of the Additional Seven Acres of Land to Latimer County. On September 3, 2002 City Council adopted Ordinance No. 117, 2002 authorizing the sale of approximately 160 acres of the Jacoby Farm to Latimer County for the Open Lands Program. The sale is about to be finalized and it was discovered through a land survey that the legal description contained in the ordinance omitted a seven acre parcel. This Ordinance, which was unanimously adopted on First Reading on October 7, 2003, corrects the situation and authorizes the sale of the seven acres 13. Second Reading of Ordinance No. 138, 2003 Amending the Zoning Map of the City of Fort Collins by Amending the Zoning Classification for that Certain Property Known as the City of Fort Collins Vehicle Storage and Operations Service Maintenance Facility Rezoning 194 October 21. 2003 Ordinance No. 138, 2003, which was unanimously adopted on First Reading on October 7, 2003, rezones three parcels of land at the northwest comer of Vine Drive and Wood Street, just west of the existing City of Fort Collins Service Center. The site contains the City's Fleet Service Building and is also used for material storage. The rezone facilitates the expansion of the Fort Collins Service Center. 14. Second Reading of Ordinance No. 139, 2003, Amending Ordinance No. 097 2003 Zoning Property Known as the Swift Addition to the Fossil Lakes P.U.D. Annexation to Correct an Error in the Legal Description Contained in Said Zoning Ordinance. On July 22, 2003, City Council adopted OrdinanceNo. 097, 2003, amendingthe Zoning Map of the City of Fort Collins and classifying for zoning purposes the property included in the Swift Addition to the Fossil Lakes PUD Annexation. A typographical error in the legal description contained in the zoning ordinance, resulting in a faulty legal description. This Ordinance, which was unanimously adopted on First Reading on October 7, 2003, amends the original zoning ordinance by replacing the incorrect legal description with an amended legal description. 15. Second Reading of Ordinance No. 140, 2003, Authorizing the Lease of Property at the Fort Collins -Loveland Municipal Airport to Alliance Equipment Company LLC forthe Storage of Construction Equipment and Supplies. Alliance Equipment Company, LLC, wishes to lease two acres of Airport property for outdoor storage of construction equipment and supplies. The Agreement is for a three-year period, beginning November 1, 2003. The lease contains adequate restrictions to prevent any incompatible land use related to Airport operations. The Agreement will provide a new revenue source for the Airport. Ordinance No. 140, 2003, was unanimously adopted on First Reading on October 7, 2003. 16. Items Relating to Intergovernmental Agreement with the Colorado Department of Transportation for the Design and Construction of Bike Lanes on College Avenue (US 287) from Harmony Road to Carpenter Road A. Resolution 2003-112 Authorizing the Mayor to Execute an Intergovernmental Agreement with the Colorado Department of Transportation for the Design and Construction of Bike Lanes on College Avenue (US 287) from Harmony Road to Carpenter Road. W, October 21, 2003 B. First Reading of Ordinance No. 141, 2003, Appropriating Revenue from the Colorado Department of Transportation in the Transportation Fund for the US 287/South College Avenue Bicycle Lane Project. The City of Fort Collins Transportation Planning office received a grant from CDOT Enhancement Funds for FY 2003-05 to construct on -street bicycle lanes on South College Avenue/US 287 from Harmony Road/SH68 southward to Carpenter Road/CR32. This new commuter bikelane facility will greatly improve safety and connectivity for local as well as regional commuter cyclists. This primary route between Fort Collins and Loveland has been identified through the public planning process by the City of Fort Collins as well as the North Front Range Metropolitan Planning Organization (MPO) as a critical link in the local and regional bicycle lane system. Both the City of Fort Collins Bicycle Program Plan and the North Front Range Bicycle & Pedestrian Plan indicate the need for this project. 17. First Reading of Ordinance No. 142, 2003, Authorizing the Issuance of City of Fort Collins Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2003, Dated Their Delivery Date in the Aggregate Principal Amount of $ 1,000,000 forthe Purpose of Financing Certain Capital Improvements and Capital Projects: and Providing for the Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay he Principal of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds. The City of Fort Collins created the Downtown Development Authority to make desired improvements in the downtown area. Through tax increment financing, the DDA has made significant contributions to the redevelopment and improvement of the downtown area. This Ordinance provides funding from unreserved fund balance in the DDA Debt Service Fund to make additional improvements in the downtown area. The Ordinance authorizes the issuance of $1 million of short term bonds for the projects which will be paid from the tax increment revenue. 18. First Reading of Ordinance No. 143, 2003 Authorizing the Conveyance of Approximate 4,561 Square Feet of City Land to the Hetzel Family in Exchange for Certain Easements for the LaPorte Trail Connection and Additional Compensation The La Porte Trail Connection will provide a safe off-street pedestrian/bicycle connection for Fort Collins and La Porte. The nearly 1 3/4 mile long trail will extend the Poudre River Trail from Taft Hill Road to Lions Park in La Porte. A portion of the trail just east of Overland Trail Road is located on land adjacent to the Hetzel family property. 196 October 21, 2003 Through negotiations with the Hetzel family, the City will acquire needed easements for the trail project in exchange for monetary considerations and land not needed for the trail. The Hetzel driveway is located on a portion of the land the City will be deeding to the Hetzels. The temporary construction access easement is 7,859 square feet in size. The permanent access easement is 11,234 square feet in size. The permanent floodplain easement is 2,418 square feet in size. The land the City will deed to the Hetzels is 4,561 square feet in size. 19. Resolution 2003-113 Authorizing Incentive Programs for Energy Efficiency and Water Conservation, This Resolution supports and authorizes the ongoing use of incentive and rebate programs to encourage City Utilities' customers to replace outdated or inefficient fixtures, make improvements and utilize other technologies for the purpose of improving energy efficiency and water conservation. The City will be authorized to participate in local, regional or national incentive programs related to energy efficiency and water conservation. 20. Resolution 2003-114 Authorizing an Intergovernmental Agreement with Boulder Count Longs Peak Energy Conservation Program for Administration of the City's REACH (Residential Energy Assistance Through Community Help) Program This Resolution will authorize the City Manager to enter into an Intergovernmental Agreement (IGA) with Longs Peak Energy Conservation Program to administer the REACH program for the City for an initial term until September 2004, with extensions of the IGA for up to three additional one year terms, subject to the availability of sufficient funds. 21. Resolution 2003-115 Authorizing the City Manager to Implement a Zero Interest Loan Program. This Resolution will permit the City Manager to administer a zero interest loan program to assist City residents. Loans are used by the Utilities and Natural Resources to provide an incentive for homeowners to make energy, water and air quality improvements to their homes. 22. Resolution 2003-116 Authorizing an Intergovernmental Agreement with Colorado State University Regarding the Use and Replacement of Certain Fiber Optics Cables The proposed Intergovernmental Agreement with Colorado State University (CSU) will permit the City of Fort Collins to use four strands of CSU's fiber optic cable for twenty (20) years, with the option of extending that use for a lease rate to be agreed upon at that time, in exchange for which the City will provide the labor to replace an existing CSU-owned fiber 197 October 21, 2003 optic cable located in City -owned conduits along West Mulberry Street. The Agreement also provides a revocable permit from the City to CSU for the location of approximately 1,000 feet of CSU fiber optic cable in City conduit in a City utility easement located to the east of and under the lawn and paved parking area of the National Wildlife Research Center at 4101 LaPorte Avenue. This conduit has already been installed and will form a part of the fiber optic loop that CSU is in the process of completing. The proposed new fiber would provide additional redundancy in the telecommunications infrastructure to the Water Treatment Facility (WTF) on West Laporte Avenue. CSU is installing fiber optic cables at its West Campus area to a point just across Laporte Avenue from the WTF. The IGA allows the City to install additional conduit and fiber connecting the existing WTF telecommunications system to CSU's new fiber, and allows the City the use of four strands of CSU fiber for 20 years. This use is valued at approximately $55,200 over the 20 year time period. These four strands will be extended to the WTF to complete the redundant pathway. 23. Resolution 2003-117 Repealing and Readopting Guidelines for Initiating and Developing Council Ordinances and Resolutions. This Resolution will amend the Council guidelines for initiating and developing Council ordinances and resolutions. The amended language would state that, if the City Attorney or City Manager need clarification regarding an ordinance or resolution not on the Council Policy Agenda that was initiated at the direction of the Leadership Planning Team or three or more Councilmembers, that direction is to be sought from the Councilmembers requesting the item. 24. Routine Easement. A. Easement for construction and maintenance of public utilities from Margaret R. Kritzer, to underground electric services, located at 1105 West Mountain. Monetary consideration: $200. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 8. Second Reading of Ordinance No. 129, 2003 Amending the Zoning Man of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Vineyard Rezoning_ October 21. 2003 9. Second Reading of Ordinance No. 134 2003 Appropriating Prior Year Reserves and Unanticipated Revenue in Various Funds and Authorizing the Transfer of Appropriated Amounts Between Funds. 10. Second Reading of Ordinance No 135 2003 Appropriating Unanticipated Grant Revenue In the Equipment Fund and the General Fund for Congestion Mitigation and Air Quality Projects and Authorizing the Transfer of Appropriations 11. Second Reading_ of Ordinance No. 136, 2003, Making Certain Appropriations Related to Operating Expenses of the Metropolitan Planning Organization. 12. Second Reading of Ordinance No 137,2003 Amending the Legal DescriptionoftheJacobv Farm Property and Authorizing the Sale of the Additional Seven Acres of Land to Larimer County. 13. Second Reading of Ordinance No 138.2003 Amending the Zoning Map of the City of Fort Collins by Amending the Zoning Classification for that Certain Property Known as the City of Fort Collins Vehicle Storage and Operations Service Maintenance Facility Rezoning 14. Second Reading of Ordinance No. 139, 2003 Amending Ordinance No 097 2003 Zoning Property Known as the Swift Addition to the Fossil Lakes P.U.D. Annexation to Correct an Error in the Legal Description Contained in Said Zoning Ordinance 15. Second Reading of Ordinance No. 140, 2003, Authorizing the Lease of Property at the Fort Collins -Loveland Municipal Airport to Alliance Equipment Company LLC for the Storage of Construction Equipment and Supplies. Ordinances on First Reading were read by title by City Clerk Krajicek. 16. First Reading of Ordinance No. 141 2003 Appropriating Revenue from the Colorado Department of Transportation in the Transportation Fund for the US 287/South College Avenue Bicycle Lane Project. 17. First Reading of Ordinance No 14Z 2003, Authorizing the Issuance of City of Fort Collins Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2003, Dated Their Delivery Date in the Aggregate Principal Amount of $1,000,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects: and Providing for the Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds. 199 October 21, 2003 18. First Reading of Ordinance No. 143, 2003, Authorizing the Conveyance of Approximately 4,561 Square Feet of City Land to the Hetzel Family in Exchange for Certain Easements for the LaPorte Trail Connection and Additional Compensation. Councilmember Tharp made a motion, seconded by Councilmember Hamrick, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None THE MOTION CARRIED Consent Calendar Follow-up Councilmember Tharp called attention to item #1 l Second Reading of Ordinance No. 136, 2003, Making Certain Appropriations Related to Operating Expenses of the Metropolitan Planning Organization, item # 16 First Reading of Ordinance No. 141, 2003, Appropriating Revenue from the Colorado Department of Transportation in the Transportation Fund for the US 287/South College Avenue Bicycle Lane Project and item #21 Resolution 2003-I1 S Authorizing the City Manager to Implement a Zero Interest Loan Program. She asked staff to explain the Zero Interest Loan Program. Wendy Williams, Deputy General Manager, explained the Zero Interest Loan Program. Staff Reports City Manager Fischbach reported that Dillard's had decided to locate a 140,000 square foot anchor store in the Lifestyle Center on Harmony Road. He also reported that the National Aeronautics and Space Administration had given a $9.7 million grant to Colorado State University for a specialized center of research investigating radiation risks to astronauts. He stated a plaque had been received by the City and its project partners for the prestigious Governor's Special Achievement Award for Downtown Excellence for 2003 for the design of the Northern Hotel renovation. He reported on funding raising efforts for the Youth Activities Center gym. He stated the City had received recognition for the storm water audit rating system. He reported on the opening and dedication of the Fossil Creek Park funded by Building Community Choices dollars. He stated the dedication of Lemay Avenue took place at the same time. Ordinance No. 142, 2003 Authorizing the Issuance of City of Fort Collins, Colorado, Downtown Development Authority Taxable Subordinate Tax Increment Revenue Bonds, Series 2003, Dated Their Delivery Date, in the Aggregate Principal Amount of $1,000,000 for the Purpose of Financing Certain Capital Improvements and Capital Projects; and Providing for the Pledge of Certain Incremental Ad Valorem Tax Revenues to Pay the Principal of, Interest on and Any Premium Due in Connection with the Redemption of the Bonds, Adopted on First Reading 200 October 21. 2003 The following is staff s memorandum on this item. "Financial impact At the end of'2002, the Downtown Development Authority Debt Service Fund held approximately $1,371,000 of unreserved fund balance. According to the revised budget at the end of 2003, the unreserved fund balance is projected to be approximately $542,000 after the issuance of these bonds. The DDA Board and staff recommend using a portion of the unreserved fund balance to make capital improvements and projects in the downtown area consistent with the mission of the Authority. Based on updated projections of tax increment revenue, the DDA debt service fund has sufficient revenue to meet all required debt service payments and reserve requirements.for 2003 through 2006. Executive Summary The City of Fort Collins created the Downtown Development Authority to make desired improvements in the downtown area. Through tax increment financing, the DDA has made significant contributions to the redevelopment and improvement of the downtown area. This Ordinance provides funding from unreserved fund balance in the DDA Debt Service Fund to make additional improvements in the downtown area. The Ordinance authorizes the issuance of $1 million ofshort term bonds.for the projects which will be paid from the tax increment revenue. BACKGROUND: The projects include thefollowing: Armstrong Hotel Renovation First National Bank Fagade Improvements Downtown Information Center & Public Restrooms Austin's Restaurant Improvements National Association for Interpretation Project Parking Agreement with City of Fort Collins Downtown Christmas Lighting (DDA Share) Project Blue Stream Available for Other Projects Estimate Costs oflssuance Total $137,200 133,000 150,000 55,790 200,000 125,000 11,500 120,000 17,510 20,00 $1, 000, 000 The source offending for the projects will be the DDA's tax increment reserves held in the DDA Debt Service Fund. All of these projects have been reviewed and recommended by the Board ofDirectors of the DDA. " 201 October 21, 2003 City Manager Fischbach introduced the agenda item and stated staff would be available to answer any questions. Chip Steiner, DDA Executive Director, presented background information regarding the agenda item. He stated the funds were earmarked for a number of projects. Kelly Ohlson, 2040 Bennington Circle, questioned the process regarding the commitment of funds for these projects. He stated Council has discussed specific projects in the past and that there was little information presented to the Council on the projects with regard to the amount of tax increment generated. He requested in the future, Council consider, discussing at a study session, the use of such public monies. He stated the City Council oversight of this process has all but disappeared in the last 15 years. He questioned the approval of projects that will subsidize $600,000 to million dollar housing units such as some of these projects approved by the DDA. He stated detailed information should be provided to Council regarding these types of projects. Councilmember Tharp asked if these decisions were made by the DDA Board. City Manager Fischbach replied in the affirmative. Steiner stated for every project considered by the DDA, the City Council received full information prior to the DDA meeting. He stated every deal was subject to City Council approval and pointed out that the DDA has participated in a number of affordable housing projects. He stated the DDA's philosophy is that a full range of housing options are needed in the core area and that the DDA looks at the benefit to the downtown and the community in making its decisions. Councilmember Weitkunat asked for clarification that Council approval was required for projects. Steiner replied in the affirmative and stated many projects come to the Council on the Consent Calendar. Councilmember Weitkunat stated it appeared that the issue was whether the process should start with Council approval. City Manager Fischbach stated the process would not work that way. Councilmember Weitkunat asked what was wrong with the process that needed to be fixed. Steiner stated Mr. Ohlson seemed to be indicating that the projects should not be placed on the Consent Calendar and should always be debated. City Manager Fischbach stated Councilmember Bertschy is a member of the DDA and that Mayor Martinez is an alternate member and that the Council is therefore represented on the DDA. Councilmember Weitkunat asked why this agenda item was pulled from the Consent Calendar. Mayor Martinez asked Mr. Ohlson to state the problem. Mr. Ohlson stated the Council used to have lively, detailed and complex debate about the benefit of every project that came before the Council. He stated he believed that the Council should see the 202 October 21, 2003 details on projects to determine if there are any issues to be addressed. He stated many of these projects are "big ticket" items and that there should be more Council engagement in the process. He stated it seems that these projects receive little or no attention now. He stated Council's decisions has been a "rubber stamp" for the last 10 years. Councilmember Tharp asked for clarification about who served on the DDA Board and how they were appointed. Steiner stated the members of the DDA Board are appointed by the Council and must be residents of the central business district, a principal in a business or a property owner and that at least one Councilmember is required to serve. Councilmember Hamrick stated he believed that it was "bad form" to have the issue on the Consent Calendar and that the projects should be discussed in more detail. He asked if the projects that would be funded had already been approved or if they were awaiting Council approval of this ordinance. He asked if Council had already appropriated money for these projects. Alan Krcmar k, Finance Director, stated the Council had been presented with an appropriation ordinance that did anticipate these projects. He stated Council approval is needed for the bonds to be issued. Councilmember Hamrick noted that Project Blue Stream (In -Situ) had been before Council and that In -Situ had indicated it would be locating in Fort Collins. He asked where the company will now be locating. Steiner stated the company would be locating by the River at the original site. City Manager Fischbach stated the other site under consideration was not feasible. He stated In -Situ has not yet made a commitment to come to Fort Collins. Councilmember Hamrick stated this was the first time that he had heard that In -Situ was being offered incentives to come here. He asked if tax increment financing is normally used to get businesses to come to Fort Collins. Steiner stated such financing is used for developments that tend to bring new business into the central business district. Councilmember Hamrick asked if financing was used to enhance existing businesses. Steiner stated it could be either. He stated In -Situ would bring 40-50 good paying jobs to Fort Collins and that those people will spend money in the downtown. Councilmember Hamrick asked if tax increment financing had ever been used before to get a company to move downtown. Steiner stated he could not think of an example. Councilmember Hamrick asked what would happen if the State grant fell through. Steiner stated the money would have to be reappropriated for another purpose and that Council approval would be needed. He stated the DDA commitment will stand if the project continues without the State commitment. Councilmember Hamrick asked what kind of criteria is used by the DDA to provide incentives to business. Steiner stated the DDA has a list of criteria for its decision, including whether the business 203 October 21, 2003 is "green," how many jobs are created, what benefit there would be to the central business district, design, etc. He stated he could send a copy of that list to Council. Councilmember Hamrick asked if there is any criteria that says that the jobs created must go to Fort Collins residents. Steiner stated there is no DDA requirement that any percentage of the jobs must go to Fort Collins residents. Councilmember Roy asked about the biggest problems encountered by the DDA with regard to bond repayment or working with entities. Steiner stated there has been a growth of about 8% each year in the tax increment since the DDA was created. He stated the DDA's program has been the most successful in the State. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 142, 2003 on First Reading. Councilmember Roy expressed concern about the In -Situ project and the "code" name Blue Stream. He asked if the code name had been to keep them in the background. City Manager Fischbach stated the State required code names for its process. Councilmember Roy asked which State group was involved. City Manager Fischbach stated it was the Colorado Economic Development Commission. He stated the Commission was involved because of the project financing and its role in reviewing requests and awarding grants to projects meeting their criteria. He stated In -Situ was before the Commission for a grant and that it was approved unanimously. He stated Labor Force money for In -Situ was also approved by the Commission. Steiner stated the State requires a local match and that is what the DDA is providing. Councilmember Hamrick stated Council had discussed economic criteria if incentives would be offered to businesses such as In -Situ. He stated providing incentives to a company that did not guarantee that a majority of jobs would go to residents is not serving the best interests of Fort Collins. He stated there should be some kind of criteria. He stated the amount of the incentive for Project Blue Stream was also troublesome. He stated he would prefer to use tax increment financing to help existing businesses expand and stay in business rather than recruit new business from outside. He stated in the future, there needs to be assurances that there will be benefit to all of the citizens of Fort Collins. Councilmember Kastein stated he did not believe that the City could require that a certain percentage of jobs go to residents. He stated In -Situ is a blue chip company that will be a gem at the State and local levels because of jobs and because it will bolster Old Town. He stated the dollars invested would be well spent on a company like In -Situ. City Manager Fischbach stated it would not be advisable to require that jobs go to residents because many employees may already live in Fort Collins and commute to Laramie. He stated the company also does business with many Fort Collins suppliers. 204 October 21. 2003 Councilmember Weitkunat expressed concern regarding the direction of the discussion. She stated by definition, the DDA deals with development in the downtown. She stated everything the DDA does is an incentive to business to develop. Steiner stated DDA helped underwrite the cost of a project. Councilmember Weitkunat stated the DDA was set up to help development and that it is a successful model within the State. She stated there is a process in place that is working. She stated she did not think that anything was broken and needed to be fixed. She stated it is Council's job to ensure economic vitality in the downtown based on the criteria that has been established. Councilmember Roy stated the downtown is an economic center and should be nurtured. He stated it bothered him to provide financing to a project that pushed the boundaries of the Poudre River. He stated there is only one Poudre River. Mayor Martinez stated the Council had already had this discussion. Councilmember Roy stated he would hope to see a design for the structure that would indicate a sensitivity to the river. Mayor Martinez stated the company was environmentally oriented. Councilmember Roy stated In -Situ made equipment for polluters. Councilmember Hamrick stated there should be a tight list of criteria to make sure that Fort Collins benefited by providing incentives to businesses. He stated the City needs to be selective about the companies it wants to attract. Mayor Martinez asked why the company would not benefit Fort Collins. Councilmember Hamrick stated the City might be able to get a better deal if it negotiated with a company and knew what it was "bringing to the table." He stated he had not seen information that would tell him that this was the best way to spend the money. Councilmember Tharp stated bringing a company and its employees here will create a "spin-off' as those people buy our products and houses and pay taxes and will contribute to economic well being. Councilmember Weitkunat spoke regarding the purpose of the DDA and stated the DDA has contributed to "uplifting" the community rather than to the "demise" of the community. She stated the DDA scrutinizes projects and is a caretaker for the community. 205 October 21. 2003 Councilmember Hamrick stated this was a point of discussion for the future and that he believed that there should be future discussions about how to use the City's limited resources to maximize the benefit to Fort Collins residents. Councilmember Kastein stated with tax increment financing the City could not go bankrupt and that the money was being leveraged by the businesses in which an investment was being made. He stated this is not the same thing as City-wide economic development. He stated it was a "slam-dunk" for economic vitality for the City. He supported the list of projects and stated he would be paying closer attention to the DDA packets in the future. He stated he would trust the Council's DDA representative to highlight items that are of particular importance or that depart from Council policy. He stated he was excited about the projects. He stated he wished to make a statement telling In -Situ that we want them here. The vote on the motion was as follows: Yeas: Councilmembers Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None THE MOTION CARRIED Steiner reported that the DDA was hosting the state-wide Colorado Community Revitalization Association conference next September. Other Business Councilmember Tharp suggested that the Zucker Report presentation that was given to the Council be presented to the Planning and Zoning Board. Mayor Martinez stated the emphasis should be that this is now Council's direction. Councilmember Weitkunat stated she would like to attend that presentation as the Planning and Zoning Board liaison. Councilmember Tharp stated she was unhappy to see that the City would no longer be funding the Neighborhood Night Out. She stated she would not like to see momentum lost on the work that had been done with neighborhoods. She suggested continuing the program next year with partnerships and donations. Mayor Martinez stated the CSU Liaison Committee discussed that issue and that there is support for looking at sponsorships and volunteers to keep the program going. Councilmember Tharp requested a rental licensing information update, i.e. more information about how rental licensing is handled in other communities. 206 October 21, 2003 Councilmember Hamrick asked when the Council could expect to see some information about partnering with CSU about economic vitality. City Manager Fischbach stated staff met with CSU last week and is putting together a paper that will be presented to the City Council within the next two weeks. Councilmember Weitkunat asked if this related to the economic workshop. City Manager Fischbach replied in the affirmative. Councilmember Weitkunat asked if the economic workshop would occur in the first quarter of2004. City Manager Fischbach stated he would hope so. Councilmember Weitkunat stated she would like to see trends and the history of economics in the community included. Mayor Martinez stated he would support that. Councilmember Hamrick stated the discussions should address new development versus redevelopment and what changes should be made to the Code to make redevelopment at least as attractive as new development. City Manager Fischbach stated this was part of the Council's policy agenda and part of the City Plan update. Councilmember Weitkunat stated she would like to take a look at the pros and cons of the requirement of the Art in Public Places directive for the addition of 1 % to the Enterprise Funds. She stated she would like to know the financial stream being generated and the financial repercussions on citizens. She stated she would like to have a study session discussion on this issue. City Manager Fischbach stated he believed that this was also part of the Council's policy agenda. Councilmember Tharp asked if the Art in Public Places matter was part of the Charter or an ordinance. City Manager Fischbach stated it was an ordinance. Mayor Martinez asked if there is Council support for providing some funding for the Northern Colorado Economic Board. Councilmember Tharp stated she believed that there is an advantage to working regionally and that she would support looking at a specific contribution (not cash at the moment). Councilmember Hamrick stated he would like to discuss what benefit could be derived if the City had some kind of an agreement. Councilmember Kastein supported looking into the matter. 207 October 21. 2003 Councilmember Weitkunat stated she would support discussing the matter to identify some of the benefits and disadvantages for the City. Councilmember Kastein stated there would be a panel discussion sponsored by the Northern Colorado Economic Board. Councilmember Tharp asked that any staff responses to Council questions that will be addressed by e-mail should also be given in summary form to the public as part of the Staff Report. Mayor Martinez stated a letter had been received from Poudre Valley Hospital regarding the status of emergency care stating that the Hospital would provide care for heart attack victims in Fort Collins. He stated a meeting is to be scheduled to discuss emergency care issues and that he wanted the City to be proactive in setting up the meeting. Councilmember Roy stated he had concerns about the trauma center in Fort Collins being downgraded due to the Loveland expansion. Mayor Martinez stated the letter received from the Hospital clarified many of those issues. Councilmember Roy stated he was interested in working to ensure that the level of health care in this community was not lessened at all. Councilmember Weitkunat stated it is important to understand that this is a complicated process and that everyone needs to be cautious about making judgmental statements about the level of service that will be received. She stated she is confident that the Hospital is working to provide the best service possible to this community. Mayor Martinez stated there had been an article in the newspaper about police collective bargaining and that he would like to make sure that staff was heavily engaged in discussions with the Chief of Police to ensure that everyone understood budget issues. He stated there were mixed messages being given and that he would like to see a written plan of action about what will be done to make clarifications to ensure that there are no disruptions in police service. Councilmember Tharp stated every citizen who receives a utility bill is paying for a good, well - designed storm drainage system. She stated the award that was announced under staff reports shows that the City was "doing it right." She thanked the citizens for tolerating that additional expense. Mayor Martinez asked if there were still plans to have a check -off block on utility bills for donations for helping indigent people with their utility bills. City Manager Fischbach stated staff is still working on that. Councilmember Kastein stated the newly opened Fossil Creek Park was "fantastic." The meeting adjourned at 7:30 p.m. ATTEST: Adjournment 209 October 21. 2003