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HomeMy WebLinkAboutMINUTES-08/17/2004-RegularAugust 17, 2004 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, August 17, 2004, 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: Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Councilmembers Absent: Kastein. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Joe Lewandowski, 1036 Mirromere Circle, asked Council to cancel the advertising and promotional campaign to discourage truckers from driving through Fort Collins to Laramie. He stated this would be a waste of $300,000 since the 600 truckers passing through Fort Collins each day would continue to use this route to save time. He stated the money could be used for traffic calming elsewhere in the City. Paul Anderson, 2107 Constitution Avenue, spoke in favor ofrental licensing for single-family units and maintaining the "three unrelated" rule. Ray Czaplewski, 2012 Huntington Circle, Rolland Moore Neighborhood Network, spoke in support of rental licensing to address nuisance problems in single-family neighborhoods. He stated the "three unrelated" rule could be enforced using two new approaches: (1) make prosecution of occupancy violations more effective by changing criminal penalties to civil infractions; and (2) develop a rental licensing program in single-family R-L districts designed to better enforce the Land Use and municipal codes. Gail Zirtzlaff, 2048 Manchester, Rolland Moore Neighborhood Network, expressed neighborhood concerns relating to rentals that had become "dorms." Al Bacilli, 520 Galaxy Court, expressed concerns regarding the vendor fee paid for sales tax collection. Pete Seel, 1837 Scarborough Drive, Rolland Moore Neighborhood Network, supported rental licensing and stated neighborhoods were being negatively impacted by rentals. He asked that the City create a rental licensing board and a program to allow variances to the "three unrelated" rule, 14 August 17, 2004 to allow inspection as part of the process, and to allow the City to oversee residential rental properties in single-family neighborhoods. He asked that the program be cash funded, revenue neutral and adequately staffed. Kelly Ohlson, 2040 Bennington Circle, expressed concerns regarding employee compensation and benefits and stated there was valuable information in the consultant's report. He stated the executive summary prepared by the consultant was incomplete and flawed and did not touch on most of the key points and recommendations of the report. He stated reforms were needed to the compensation and benefits program because revenues would not go up fast enough and reserves would not be available to continue the status quo. He stated health care costs to the City must be reduced and that a solution must be found that would be fair to employees, the City (a public entity) and the taxpayers and ratepayers. Citizen Participation Follow-up Councilmember Bertschy stated the expenditure of the money referenced by Mr. Lewandowski was approved by the voters specifically for that purpose. He also thanked the residents from the Rolland Moore neighborhood for their presentations. He stated a study session was scheduled to discuss rental licensing. Interim City Manager Atteberry stated the study session was scheduled for October 12. Mayor Martinez asked if the money was not spent on the truck route issue, if it would have to be given back to the people. City Attorney Roy stated there was no obligation to refund the money and that there was a limitation on how the money could be spent. He stated the money could "sit there" until the voters approved a different use of the money. Councilmember Hamrick requested a one -page memo on the effect of rentals on the cost of homes in Fort Collins and the percentage of rental homes in each specific neighborhood of the City. He stated he was interested in a change to eliminate the vendor fee. Agenda Review Interim City Manager Attebeny stated there were no changes to the printed agenda. CONSENT CALENDAR Consideration and approval of the Council meeting minutes of June 15 and July 6 and the adjourned meeting minutes of June 8. 15 August 17, 2004 Second Reading of Ordinance No. 121, 2004, Appropriating Unanticipated Grant Revenue in the General Fund for the Poudre Valley Health System Reduce Intoxicated Driving Program. The State of Colorado and the Alcohol and Drug Division of the Colorado Department of Human Services require that the grant funds be dispersed to a "local public procurement unit." A "local public procurement unit' means any county, city, municipality, or other public subdivision of the state, any public agency of any such political subdivision, any public authority, any educational, health, or other institution, and, to the extent provided by law, any other entity which expends public funds for the procurement of supplies, services, and construction. PVHS requested that the City serve as the local public procurement unit and a pass -through recipient of the grant proceeds. This Ordinance, which was unanimously adopted on First Reading on July 20, 2004, allows the City to disburse the grant funds to PVHS (via the Hospital Foundation) upon completion of any grant -related documents and a subgrant agreement between the City and PVHS. 9. Second Reading of OrdinanceNo. 122,2004, Authorizingthe Lease of City -Owned Property at 400 Wood Street for Up to Five Years. This Ordinance, which was unanimously adopted on First Reading on July 20, 2004, authorizes the City Manager to enter into a Lease Agreement with Foothills Gateway for city - owned property at 400 Wood Street. 10. Second Reading of Ordinance No. 123, 2004, Authorizing the Amendment of the Lease of City -owned Property at 430 North College Avenue, Fort Collins, Colorado, to Colorado State University. CSU has asked the City to amend the existing lease to add an additional five-year extension period and to extend the termination notice period to five years. Extending the term of the lease and the termination period will show a long-term commitment by the City to use of the property for the engine lab. CSU indicates that a long-term commitment is essential for the program to obtain grants and donations. This Ordinance was unanimously adopted on First Reading on July 20, 2004. 16 August 17, 2004 11. Second Reading of Ordinance No. 124, 2004, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Manhattan Regional Detention Pond and the Mason Transportation Corridor Bike/Pedestrian Trail. The Manhattan Regional Detention Pond Project will provide needed stormwater detention in a predominately mature and built -out residential and business area which is at risk in a 100 year flood. In addition, the Mason Transportation Corridor Bike/Pedestrian trail can be built concurrently with a berm for the Manhattan Regional Detention Pond. Although negotiations are continuing and expected to be successful, eminent domain proceedings must begin in order to assure all necessary property interests are obtained in a timely manner. Ordinance No. 124, 2004, was unanimously adopted on First Reading on July 20, 2004. 12. First Reading of Ordinance No. 128.2004, Appropriating Unanticipated Revenue and Prior Year Reserves in the Light and Power Fund and Authorizing the Transfer of Existing Appropriations in the Equipment Fund for the Purpose of Purchasing Hydrogen Fueling Equipment and Infrastructure at the Transfort Alternative Fueling Station. This Ordinance authorizes a $35,000 appropriation of prior year reserves in the Light and Power Fund for purchase of hydrogen fueling equipment and infrastructure for the Transfort Alternative Fueling Station. In addition, this Ordinance authorizes appropriation of$210,000 in equipment and funds being donated by the Colorado Governor's Office of Energy Management and Conservation to the Transfort Alternative Fueling Station. This Ordinance also authorizes transfer of $207,000 from the Equipment Fund operations budget to the Equipment Fund — Transfort Alternative Fueling Station. 13. Items Relating to the Mason Transportation Corridor Bicycle/Pedestrian Trail Project A. Resolution 2004-095 Authorizing the Mayor to Enter into an Agreement with the State Board of the Great Outdoors Colorado Trust Fund in Order for the City to Receive Grant Funding for the Mason Transportation Corridor Trail Project. B. First Reading of Ordinance No. 129, 2004, Appropriating Funds to the Building Community Choices (BCC) Capital Projects Fund, Mason Transportation Corridor (MTC) Bicycle/Pedestrian Trail Project, from The State Board of the Great Outdoors Colorado Trust Fund. C. First Reading of Ordinance No. 130, 2004, Appropriating Funds to the Building Community Choices (BCC) Capital Projects Fund, Mason Street Transportation Corridor (MTC) Bicycle/Pedestrian Trail Project, from the General Fund Reserves 17 August 17, 2004 on a Temporary Basis to Allow the City to Contract for all of the Construction Improvements to the Mason Transportation Corridor Trail Project in 2004. This Council action will authorize the Mayor to enter into an agreement with The State Board of the Great Outdoors Colorado Trust Fund for the City to receive $80,000 for the MTC trail project as well as appropriate these new grant funds into the project's budget. In addition, this action will appropriate $1 million into the MTC trail project's budget on a temporary basis until it can be repaid by the sales tax cash flow in 2005. The MTC project's budget will repay the $1 million back to the City's General Fund reserve account in 2005. These funds will be used in 2004 to construct the bicycle/pedestrian trail in a more timely cost effective manner. Currently, the MTC project does not have sufficient funds appropriated in 2004 to bid the entire trail segment. A portion of the MTC funding is in the 2005 budget. In transferring these funds, the MTC project will be able to advertise for bid the entire trail segment insuring a more competitive bid and completion of trail construction earlier in 2005. This transfer will have no negative financial impact on the General Fund reserves account. 14. Items Relating_ to US287/South College Avenue Bicycle Lane Project. A. Resolution 2004-096 Authorizing the Mayor to Execute an Agreement Between the City and the Colorado Department of Transportation for the Funding of the Design and Construction of On -Street Bike Lanes on South College Avenue Between Harmony Road and Carpenter Road. B. First Reading of Ordinance No. 131, 2004, Appropriating Unanticipated Revenue and Prior Year Reserves in the Transportation Services Fund to be used to Construct On - Street Bike Lanes on South College Avenue Between Harmony Road and Carpenter Road. The City of Fort Collins Transportation Planning Department 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 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 and Pedestrian Plan indicate the need for this project. In August 17, 2004 15. First Reading of Ordinance No. 132, 2004, Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund for the En ing eerin Desi ref Timberline Road from Drake Road to Prospect Road Traffic congestion at the Timberline/Prospect intersection is well below the City's Level of Service requirements, with almost all legs and turn movements failing during the morning and afternoon peak rush hours. In accordance with the Adequate Public Facilities Ordinance, any new development which impacts this intersection cannot proceed until these existing deficiencies are corrected. In the absence of any City Capital Improvement funding for this intersection, two impacted developers are electing to privately fund these improvements in order to proceed with their development projects. These developers are the majority property owners and have proposed the initiation of an involuntary Special Improvement District to spread a portion of the costs through assessments to other undeveloped property in the area benefitted by the improvements. The initiating developers have provided $100,000 in funds to allow the City to prepare the Engineering plans, estimate of costs, and maps of the district. An additional $162,050 is needed for the Street Oversizing portion of the design, the geotechnical reports and environmental studies. This Ordinance will appropriate $162,050 from the Street Oversizing Fund into the Capital Project account for this project. 16. First Reading of Ordinance No 133 2004 Desi icg atin the he Alpert Building as a Fort Collins Landmark Pursuant to Chanter 14 of the City Code. The owner of the property, the Walter J. Frick Trust, is initiating this request for Fort Collins Landmark designation for the Alpert Building. The Alpert Building retains excellent physical integrity and is judged to be both architecturally and historically significant under Fort Collins Landmark Standards (1), (2), and (3). It is a fine example of early twentieth century commercial architecture in Fort Collins. It is also a noteworthy example of the commercial architectural design of Fort Collins' most notable architect, Montezuma Fuller. Increasing its significance even further, the Alpert Building was one of Fuller's final designs before his death. The building is also historically important for its role in the development of the flourishing commercial district which grew along the College Avenue corridor, displacing Old Town as the commercial center. Finally, the property is significant for its association with Joseph 1. Alpert, the building's namesake. Joseph Alpert was a German from Russia immigrant, who became a highly regarded Fort Collins businessman. 19 August 17, 2004 17. First Reading of Ordinance No. 134, 2004, Authorizing the Conveyance of a Parcel of City Property in Exchange for a Property Located at 1833 East Mulberry Street Appropriating the Related Donation in Value In the Amount of $11,532, and Rescinding Ordinance No 007 2004. This Ordinance would allow a proposed conveyance of 2.468 acres of land on the Poudre River Corridor and adjacent to the Kingfisher Natural Area from William C. And Maureen D. Stockover to the City in exchange for property 0.621 acres in size owned by the City at 1833 East Mulberry Street owned land adjacent to and west of land owned by the Stockovers. 18. First Reading of Ordinance No. 135.2004, Authorizing the Acquisition byEminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Mason Transportation Corridor Trail Project. This Ordinance does not begin the eminent domain process; it simply allows staff to use the process if absolutely necessary and extensive good faith negotiations are not successful. Staff is hopeful that all acquisitions will be accomplished by negotiated agreement. This process does not apply to the negotiations between the City and the Burlington Northern Santa Fe Railway Company or Colorado State University. It will only apply to any other potential private property owners along the corridor where right of way (ROW) may be needed permanently for the trail or temporarily during the construction process. 19. Resolution 2004-097 Authorizing the City Manager to Execute a Car Rental Concession Agreement at the Fort Collins -Loveland Municipal Airport with Entemrise Leasing Company of Denver. Enterprise Leasing Company of Denver wishes to lease space in the airport terminal building as a rental car outlet to service the traveling public. The Agreement is for up to a two year period beginning September 1, 2004. The leased area includes 133 square feet of counter area and parking spaces for staging rental cars. 20. Resolution 2004-098 Authorizing the Purchasing Agent to Enter into a Professional Services Agreement with an Executive Search Firm, At Council's July 6, 2004 meeting Resolution 2004-084 was adopted setting forth the process to be used in the City Manager search process. Interviews were conducted with the following fines: Gerry Plock Associates, Mercer Group Inc., Slavin Management Consultants and Bennett Yarger Associates. The Committee conducted its interviews on August 6, 2004, in accordance with the City's purchasing policies and procedures. As a part of this process, the Committee scored each 20 August 17, 2004 fine based on its presentation and on answers to Committee questions. The highest ranked firm being recommended is Stavin Management Consultants. 21. Resolution 2004-099 Authorizing the Execution by the Mayor of a GOCO Grant Agreement for Construction of the Children's Garden at the Gardens on Spring Creek A proposal was submitted and approved for a Great Outdoors Colorado (GOCO) grant for the amount of $200,000 towards the construction of a Children's Garden at the recently - opened Gardens on Spring Creek. The mission of the Children's Garden will be to provide outdoor recreation and education on horticulture and the natural world, within a garden -like setting. The Children's Garden will not be a garden in the strict sense, but rather an integrated combination of various "child -scaled" theme gardens and garden -like elements for experiential play, gardens planted and maintained by children, a small amphitheater for presentations, interactive educational exhibits, inter -connecting paths and comfortable benches. 22. Routine Easements. A. Easement for Construction and Maintenance of Public Utilities from Nick C. And Joyce C. Wells, to underground electrical service, located at 1305 Village Lane. Monetary consideration: $200. Staff: Patti Teraoka. B. Utility and Drainage Easement from Scott P. Livingston, for the Utility Services Vehicle Storage Project located at 930 North Shields Street. Monetary consideration: $5000. Staff: Alice Faye Richardson. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 8. Second Reading of Ordinance No 121 2004 Appropriating Unanticipated Grant Revenue in the General Fund for the Poudre Valley Health System Reduce Intoxicated Driving Program. 9. Second Reading of Ordinance No. 122,2004,Authorizingthe Lease ofCity-Owned Property at 400 Wood Street for Up to Five Years. 10. Second Reading of Ordinance No. 123, 2004, Authorizing the Amendment of the Lease of City -owned Property at 430 North College Avenue, Fort Collins. Colorado to Colorado State University. 21 August 17, 2004 11. Second Reading of Ordinance No. 124, 2004, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Manhattan Regional Detention Pond and the Mason Transportation Corridor Bike/Pedestrian Trail. 26. Items Relating to the Adoption of the Changes and Amendments to the 2003 International Residential Code® , 2003 International Mechanical Code® and the 2003 International Fuel Gas Code®. A. Second Reading of Ordinance No. 125, 2004, Amending Chapter 5, Article 2, Division 2, of the City Code for the Purpose of Making Certain Amendments to the 1997Uniform Building Coder"' B. Second Reading of Ordinance No. 126, 2004, Amending Chapter 5, Article 2, Division 2, of the City Code for the Purpose of Adopting the 2003 International Residential Code (IRQV with Amendments. C. Second Reading of Ordinance No. 127,2004, Amending Chapter 5, Article4, ofthe City Code for the Purpose of Repealing the 1991 Uniform Mechanical Coder' ,Adopting the 2003 International Mechanical Codex with Amendments, and Adopting the 2003 International Fuel Gas Code® with Amendments. Ordinances on First Reading were read by title by City Clerk Krajicek. 12. First Reading of Ordinance No. 128 2004 Appropriating Unanticipated Revenue and Prior Year Reserves in the Licht and Power Fund and Authorizing the Transfer of Existing Appropriations in the Equipment Fund for the Purpose of Purchasing Hydrogen Fueling Equipment and Infrastructure at the Transfort Alternative Fueling Station 13. Items Relating to the Mason Transportation Corridor Bicycle/Pedestrian Trail Project B. First Reading of Ordinance No. 129, 2004, Appropriating Funds to the Building Community Choices (BCC) Capital Projects Fund, Mason Transportation Corridor (MTC) Bicycle/Pedestrian Trail Project, from The State Board of the Great Outdoors Colorado Trust Fund. C. First Reading of Ordinance No. 130, 2004, Appropriating Funds to the Building Community Choices (BCC) Capital Projects Fund, Mason Street Transportation Corridor (MTC) Bicycle/Pedestrian Trail Project, from the General Fund Reserves on a Temporary Basis to Allow the City to Contract for all of the Construction Improvements to the Mason Transportation Corridor Trail Project in 2004. 22 August 17, 2004 14. Items Relating to US287/South College Avenue Bicycle Lane Project. B. First Reading of Ordinance No. 131,2004, Appropriating Unanticipated Revenue and Prior Year Reserves in the Transportation Services Fund to be used to Construct On - Street Bike Lanes on South College Avenue Between Harmony Road and Carpenter Road. 15. First Reading of Ordinance No. 132, 2004 Authorizing the Transfer of Appropriations from the Street Oversizing Fund to the Capital Project Fund for the Engineering Design of Timberline Road from Drake Road to Prospect Road. 16. First Reading of Ordinance No. 133 2004 Desi natin the he Alpert Building as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 17. First Reading of Ordinance No. 134, 2004, Authorizing the Conveyance of a Parcel of City Property in Exchange for a Property Located at 1833 East Mulbem Street Appropriating the Related Donation in Value In the Amount of $11 532 and Rescinding Ordinance No 007 2004. 18. First Reading_ of Ordinance No. 135,2004 Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the Construction of Public Improvements in Connection with the Mason Transportation Corridor Trail Project 28. First Reading of Ordinance No. 136, 2004 Amending Chapter 7 of the City Code so as to Include a New Article 7 Pertaining to Election Offenses. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt and approve all items on the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Consent Calendar Follow-up Councilmember Bertschy spoke regarding item #13 Items Relating to the Mason Transportation Corridor Bicycle/Pedestrian Trail Project and item #14 Items Relating to US287/South College Avenue Bicycle Lane Project. Councilmember Tharp spoke regarding item #21 Resolution 2004-099 Authorizing the Execution by the Mayor of a GOCO Grant Agreement for Construction of the Children's Garden at the Gardens on Spring Creek. 23 August 17, 2004 Mayor Martinez asked if staff was following up on his request for information about the matching funds relating to item #12 First Reading of Ordinance No. 128, 2004, Appropriating Unanticipated Revenue and Prior Year Reserves in the Light and Power Fund and Authorizing the Transfer of Existing Appropriations in the Equipment Fund for the Purpose of Purchasing Hydrogen Fueling Equipment and Infrastructure at the Transfort Alternative Fueling Station. Interim City Manager Atteberry stated the information requested by Mayor Martinez was in the "read before the meeting" packet. Items Relating to the Adoption of the Changes and Amendments to the 2003 International Residential Code®, 2003 International Mechanical Code®, and the 2003 International Fuel Gas Code® Adopted on Second Reading The following is staffs memorandum on this item. "EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 125, 2004, Amending Chapter 5, Article 2, Division 2, of the City Codefor the Purpose of Making Certain Amendments to the 1997Uniform Building CodeTV. Ordinance No. 125, 2004, was adopted 5-1 (Nays: Mayor Martinez) on First Reading on July 20, 2004. B. Second Reading of Ordinance No. 126, 2004, Amending Chapter 5, Article 2, Division 2, of the City Code for the Purpose ofAdopting the 2003 International Residential Code (IRC)® with Amendments. Ordinance No. 126, 2004, was adopted 4-2 (Nays: Councilmembers Martinez and Weitkunat) on July 20, 2004. C. Second Reading of Ordinance No. 127, 2004, Amending Chapter 5, Article 4, of the City Code for the Purpose of Repealing the 1991 Uniform Mechanical CodeTA4 ,Adopting the 2003 International Mechanical Code' with Amendments, and Adopting the 2003 International Fuel Gas Code® with Amendments. Ordinance No. 127, 2004, was unanimously adopted on First Reading on July 20, 2004. The 2003 International Residential Code (IRC)®, 2003 International Mechanical Code 2003®and the International Fuel Gas Code® (the latest version ofthe nationally -recognized "model"building codes) and proposed Amendments have undergone an extensive sixteen -month review by staff and 24 August 17, 2004 a local representative task group. These latest building codes are already in effect in much of the country. Closer to home, over 90jurisdictions in Colorado have adopted the -I-Codes ", including the State of Colorado, the City and County of Denver, Colorado Springs, Aurora, and several other cities and counties in the Metro -Denver area. The new codes are the replacement,for the "Uniform " code series, which are being phased -out and no longer supported by the model code organization. The proposed (IRQ9 and Amendments specifically cover only new one- and two-family dwellings and new additions thereto. The new code package contains some of the most significant potential changes to the Fort Collins Building Code in many years. " Interim City Manager Atteberry stated staff was available to answer questions about the agenda item. Councilmember Roy asked if there were systems in place to test passive radon systems. Felix Lee, Director of Building and Zoning, stated the only test for a passive system was an ambient radon indoor air test to determine the level of radon. Councilmember Weitkunat stated information had been received from the National Association of Homebuilders proposing that the Council accept the Code and look at elements dealing with affordable housing. She asked if staff had considered the merits of the argument from the Association. Lee stated the arguments were taken into account, particularly with the Energy Code. He stated the Fort Collins Code would have an amendment that would allow less restrictive wall insulation than the model code for homes less than 1,600 square feet. Councilmember Weitkunat stated she was concerned about the Association's recommendation to support the enabling legislation that would allow statewide amendments to the model code to account for jurisdictional differences or to enhance housing affordability by providing cost effect requirements to provide for the health and safety of the occupants. She stated the amendments that had be added would add to the cost of housing. She asked if that had now been considered. Lee stated affordability was discussed with the code development group. He stated the amendments would not add the largest share of the cost and that the model code itself would do that. He stated the cost would increase as the amount of wall insulation was increased as a result of the model code. Greg Byrne, CPES Director, stated there was a local amendment that would provide for flexibility and allow the builder or homeowner to reduce the cost of insulation by substituting a high efficiency furnace. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 125, 2004 on Second Reading. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Roy, Tharp and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED 25 August 17, 2004 Councilmember Tharp made a motion, seconded by Councilmember Hamrick, to adopt Ordinance No. 126, 2004 on Second Reading. Councilmember Weitkunat stated she would not support the motion because of the issue of affordability. She stated there were other directions that could be taken. Mayor Martinez stated he would not support the motion due to increases in housing costs. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Roy and Tharp. Nays Councilmembers Martinez and Weitkunat. THE MOTION CARRIED Councilmember Roy made a motion, seconded by Councilmember Hamrick, to adopt Ordinance No. 127, 2004 on Second Reading. The vote on the motion was as follows: Yeas Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Resolution 2004-100 Making Appointments of the Citizen Advisory Committee for the Executive Search Process for the City Manager Adopted The following is staff's memorandum on this item. "FINANCIAL IMPACT Funds will come from the 2004 City Manager Budget. EXECUTIVE SUMMARY At Council's July 6, 2004 meeting Resolution 2004-084 was adopted setting forth the process to be used in the City Manager search process. Interviews were conducted with the following firms: Gerry Plock Associates, Mercer Group Inc., Slavin Management Consultants and Bennett Yarger Associates. The Committee conducted its interviews on August 6, 2004, in accordance with the City's purchasing policies and procedures. As a part of this process, the Committee scored each firm 26 August 17, 2004 based on its presentation and on answers to Committee questions. The highest ranked firm being recommended is Slavin Management Consultants. BACKGROUND Staff solicited proposals from executive search firms nationwide. Eleven firms responded with proposals. Staff reviewed the proposals based on the Purchasing Division's standards criteria. As a result of this scoring process, four firms were selected, for interview. The firms were interviewed by a committee composed of Jim O'Neill, Wendy Williams, Rick DeLaCastro, Wynette Cerciello, Diane Jones and Councilmembers Tharp and Weitkunaton Friday August 6, 2004. Each firm presented its qualifications and proposal. The Committee then asked questions of the firms. The Committee's recommendation to the Council is based on the highest score which resulted form the interview process. " Diane Jones, Deputy City Manager, stated the suggested names (Dr. Jim Butzek, Ray Chamberlain, Carey Hewitt, Kim Jordan, Mike Powers, Peggy Reeves, and Barbara Rutstein) were included in a revised Resolution contained in Council's "read before the meeting" packet. She stated the committee would be providing Council with information regarding the position profile for the new City Manager. A] Bacilli, 520 Galaxy Court, stated Darin Atteberry should be permanently appointed as the City Manager and that money should not be spent to hire from elsewhere. Kelly Ohlson, 2040 Bennington Circle, suggested that the focus of the citizen panel should be on the skill sets rather than the "personal philosophies" of the City Manager candidates. Councilmember W eitkunat made a motion, seconded by Councilmember Tharp, to adopt Resolution 2004-100. Councilmember Bertschy stated the Council would be considering internal as well as external candidates. Councilmember Tharp stated this was a diverse committee. She stated Council was the policy - making body and that the new City Manager would carry out that policy direction. She stated the committee would provide perspective on the candidates. She stated Council was receptive to hearing any ideas, points of view and suggestions from anyone. She stated this was a complicated process and that Council wanted to do a good job in hiring a City Manager who would be here for a long time. 27 August 17, 2004 Councilmember Hamrick thanked those who volunteered to serve on the committee. He stated the interim position could be filled internally and that it was necessary to open up the process to allow anyone (internally and externally) to apply for the permanent position. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Ordinance No. 136, 2004 Amending Chapter 7 of the City Code so as to Include a New Article 7 Pertaining to Election Offenses, Adopted on First Reading, Failed to Pass. The following is staffs memorandum on this item. `EXECUTIVE SUMMARY This Ordinance would prohibit knowing and wild misrepresentations by the circulators of initiative or referendum petitions. BACKGROUND Under the State Constitution, home rule municipalities may adopt local laws governing matters related to local elections. The City Charter requires that each initiative or referendum petition contain a purpose statement and that the entire text of the initiated or referred measure be attached to the petition. However, neither the purpose statement nor the entire measure appears on each signature page of the petition. Therefore, it is possible that persons signing a petition may not fully understand the purpose of the measure and may be misled by representatives of the petition circulator. An issue arose during a recent local election in which representations made by the circulator of an initiative petition were arguably inconsistent with the stated purposes of the petition. This Ordinance would prohibit any petition circulatorfrom knowingly and willfully misrepresenting the purpose of an initiated or referred measure that is the subject of a petition, or the issues to be submitted to the electorate regarding the initiated or referred measure, in order to better ensure that persons signing such petitions are not misled in any way. " Interim City Manager Atteberry introduced the agenda item. W3 August 17, 2004 City Attorney Roy presented background information regarding the agenda item. He stated this item was brought forward at the request of three Councilmembers. He stated the intent was to address possible misrepresentations by the circulators of initiative and referendum petitions. He stated the Ordinance would prohibit any petition circulator from knowingly and willfully misrepresenting to any person through statements, acts or omissions the purpose of the initiated or referred measure or the issues to be submitted to the electorate. He stated the proposed Ordinance was consistent with the request received from Councilmembers. Councilmember Hamrick stated he was one of the three Councilmembers requesting the Ordinance. He asked how the Ordinance would be enforced. City Attorney Roy stated the Ordinance was "theoretically enforceable" and that there could be some difficult in practicalities. He stated the difficulty would be in proving what was said. He stated many laws came down to a "credibility contest' and the burden of proof beyond a reasonable doubt. Councilmember Hamrick asked about the process for a petition signer to make a complaint. City Attorney Roy stated the issue of who would do an investigation had not been discussed. He stated an investigation could be prompted by a complaint by one or more people who were approached to sign a petition or who had signed a petition and who believed that they were misled in terms of the purpose. He stated the investigator would interview those involved. Councilmember Hamrick asked if it would be easier to pass an Ordinance requiring citizens to read something before they sign a petition. City Attorney Roy stated the petition circulator was required to sign an affidavit after the fact indicating that all petition signers were given an opportunity to read the petition. He stated the alternatives would include imposing an affirmative obligation that was enforceable at the time the petition was circulated or adding to the form of the petition a purpose statement on every page where signatures appeared or a warning or notice to alert people to the fact that they should read the purpose statement before signing. Mayor Martinez stated he favored the suggestion to change the form of the petition to encourage citizens to read the statement of purpose. He asked about the scenario in which the petition signer could not read. City Attorney Roy stated the concept was that the petition signer should read the purpose statement or have it read. He stated staff could work on the idea of imposing an obligation on the petition circulator to read the purpose statement if requested by the petition signer and to have a one or two line warning on each page of the petition. He stated another ordinance could be brought back based on that direction. Mayor Martinez suggested the would like the language to indicate that a person would not need to state why the petition would need to be read to them. He also favored a statement on each page of the petition alerting people to read the purpose statement. 29 August 17, 2004 Councilmember Weitkunat stated this ordinance did not appear to be ready for consideration yet. She stated she had concerns about the language referring to "omissions." She stated the ordinance should focus on "willful, misleading and false" as opposed to oversights. She stated she understood the intent of the ordinance but that the City did not need another law on the books that was unenforceable and questionable. She stated she would prefer to table indefinitely. City Attorney Roy suggested defeating the ordinance if the majority believed that it was not the right approach. He stated Council could then consider a separate motion to determine if the majority was interested in the alternative that had been discussed. Councilmember Hamrick asked if there were any implications associated with placing an undue burden on the petition circulator. City Attorney Roy stated he did not believe that the alternative discussed would be a problem from a Constitutional or legal standpoint. Councilmember Tharp stated she would like to see the Council vote on the ordinance. Councilmember Tharp made a motion, seconded by Councilmember Weitkunat, to adopt ordinance No. 136, 2004 on First Reading. Councilmember Tharp stated it was important to state what a petition circulator should do or not do in terms of misrepresentation. She stated the ordinance would call attention to the fact that misrepresentation by the petition circulator would work against the petition process. She stated the essence of what the Council wanted to accomplish was in this ordinance. Councilmember Weitkunat stated she seconded the motion so that the Council could vote on the ordinance. She stated the intent was in the ordinance but that the mechanism was missing. She favored taking a look at how this would work with regard to enforcement. The vote on the motion was as follows: Yeas: Councilmember Tharp. Nays Councilmembers Bertschy, Hamrick, Martinez, Roy and Weitkunat. THE MOTION FAILED Mayor Martinez asked Council to support having the City Attorney bring forward an ordinance that would address the scenario for those who could not read and that would require a statement on each page of the petition. Councilmember Roy stated the ordinance could require the circulator to indicate that the petition would be read to the signer if necessary or to ask if the signer wanted the petition to be read. Mayor Martinez stated his concern was that the petition signer not be required to indicate what he or she wanted the petition to be read. 9M August 17, 2004 Councilmember Hamrick stated he was in favor of the concept and that staff could wordsmith the language. He asked that staff include information in the agenda item summary on how the ordinance would be enforced. Mayor Martinez asked if staff had clear direction on how to proceed. City Attorney Roy replied in the affirmative. Items Relating to a Citizen -Initiated Ordinance Relating to the Reduction of the Sales Tax on Grocery Food, Adopted. The following is staffs memorandum on this item. "EXECUTIVE SUMMARY A. Presentation of a Petition Relating to Citizen -Initiated Ordinance No. 2, 2004 (Relating to the Reduction of the Sales Tax on Grocery Food) Certified by the Ciry Clerk as Suff cient for Placement on a Special Election Ballot. (No Action Needed) B. First Reading of Ordinance No. 137, 2004, Relating to the Reduction of Sales Tax on Grocery Food. (Option 1) OR Resolution 2004-101 Submitting Proposed Citizen -Initiated Ordinance No. 002, 2004, Relating to the Reduction of Sales Tax on Grocery Food to a Vote of the Registered City Electors at the Next Regular Municipal Election on April 5, 2005. (Option 2) The City Clerk's Office received an initiative petition on July 19, 2004, which has been determined to contain a sufficient number of signatures to place the initiated measure before the registered electors of the City. Pursuant to the City Charter, upon presentation of an initiative petition certified as sufficient by the City Clerk, the Council must either (1) adopt the proposed ordinance without alteration within 30 days (Option 1); or (2) submit such proposed measure, in the form petitioned for, to the registered electors of the city (Option 2). If the Council chooses to submit the proposed measure to the voters, Resolution 2004-101 submits the measure to the voters and establishes the ballot language for the measure. 31 August 17, 2004 BACKGROUND The City Clerk's Office has certified a sufficient number of signatures on an initiative petition received on July 19, 2004. Under Article X of the City Charter, 3,902 signatures of registered electors (at least 15% of the total ballots cast in the last regular City election) are required to place an initiative on a special election ballot. Upon presentation of an initiative petition certified as to sufficiency by the City Clerk the Council must either adopt the proposed ordinance without alteration or submit the proposed measure in the form petitioned for, to the registered electors of the city. Article X, Section 1 of the City Charter normally requires that, if a petition requests a special election (which this petition does), the Council must call a special election to be held on a Tuesday within 120 days ofthepresentation ofthe certifiedpetition to the Council. However, anothersection ofthe City Charter (ArticleX, Section 6(e)), states that not more than one special election on citizen - initiated measures maybe held within any twelve month period. Because a special City election has just been held on August 10, 2004, this new measure relating to the reduction of a sales tax on groceryfood must be placed on the April, 2005 ballot. " Interim City Manager Atteberry introduced the agenda item. City Clerk Krajicek presented background information regarding the agenda item. She stated the City Clerk's Office had certified as sufficient the initiative petition. She stated the petition was received on July 19, 2004 and that the Charter required 3,902 signatures for placement on a ballot. She stated upon presentation of the certified petition the Council must either adopt the proposed Ordinance without alteration or submit the proposed measure to the voters. She stated Charter normally required placement on a special election ballot within 120 days if the petition requested such an election. She stated another Charter provision also indicated that no more than one special election on citizen -initiated measures could be held in any 12 month period. She stated a special election was just held on August 10, 2004 and that this new measure must therefore be placed on the April 2005 regular election ballot. Mayor Martinez requested clarification regarding the two conflicting Charter provisions. City Attorney Roy stated the provision prohibiting more than one special election within any 12 month period would prevail in this situation. He stated his opinion was that the general rule was that the special election was to be held within 120 days of the date of petition certification and that there was an exception to that rule prohibiting more than one special election within a 12 month period. Mayor Martinez stated each audience participant would have three minutes to speak. John Knezovich, 1205 Green Street, asked if citizen input would be allowed on the timing of the election or the substance of the matter. He asked if there would be two different opportunities for 32 August 17, 2004 citizen participation. City Attorney Roy stated any comments relevant to an agenda item should be received at the same time. Mayor Martinez stated participants could speak to both the timing and the substance during their three minutes. Bruce Lockhart, 2500 East Harmony Road, stated in the past an item would be placed on the floor and that citizen comments would then be requested. He suggested putting a motion on the floor so that citizens would know what to address. Mayor Martinez asked for legal clarification regarding the procedure. City Attorney Roy stated the Council process in recent years had been to entertain citizen input on an agenda item before a motion was made. He stated the current Council practice was also to allow citizen comment once per agendaitem. Mayor Martinez stated the current process would be followed. Mark Brophy, 1109 West Harmony Road, stated he was a sponsor of the initiative and that the purpose was to reduce the tax and regulatory burden on businesses and citizens. He stated the State repealed the grocery tax in 1979 and that a citizen tax committee also recommended repealing the City grocery tax in 1979. He asked that the Council accept the initiative because it would definitely be approved by the voters. He stated the sales tax rate overall was 1 % in 1968, 2% in 1977 and 3% today (with 2.25% for grocery items). He stated there was a larger tax base because of greater shopping opportunity in Fort Collins. He stated adjusted for inflation and population growth that there had been a 40% increase in sales and use tax per capita since 1984. He stated the initiative needed to be passed to reduce the size of City government. He stated in 2003, $67.7 million in sales and use tax was collected compared to $15 million in 1984, which amounted to $2,076 for a family of four compared to $1,484 in 1984. Dan Cochran, non-resident, stated he worked in Fort Collins and spent a significant portion of his income in Fort Collins. He stated he was a petition circulator. He stated Fort Collins was one of the largest cities in the State with a food sales tax. He stated Lakewood had a food sales tax and that it was considerably less than the tax in Fort Collins. He stated staff did not include that information in their "biased" staff report. He stated staff had pointed out that the City provided rebates to low income people and that the repeal of the food tax would therefore not affect such people. He stated federal statistics clearly showed that in Latimer County less than one-third of the people who were at a poverty level qualified for food stamps and that people must qualify for food stamps to get the tax rebate. He stated it was "immoral' to tax food sales for low income people in order to support a prosperous City government. He stated this initiative should not be put off until April when there would be a low voter turnout compared to the November election. He stated the Council could take 33 August 17, 2004 a "moral high ground" and eliminate the food sales tax or could place the measure on the November ballot as a Council referendum. Al Bacilli, 520 Galaxy Court, opposed the collection of sales tax on food and the payment of a vendor fee for the collection of the tax. Mary Brophy, 1109 West Harmony Road, stated she was a sponsor of the initiative. She asked the Council to vote to repeal the grocery tax or to place it on the November ballot. She stated the initiative called for a January 1, 2005 reduction in the sales tax. She stated the Colorado Constitution provided for the right of citizens to petition the government with initiatives and referendums. She stated the Colorado Revised Statutes provided that such measures must be placed on the ballot within 150 days or less. She stated placement on the April ballot would not liberally construe the law in favor of the citizens. She stated repeal of the grocery tax would mean a "modest cut' of 6% in the $90 million General Fund. She stated City government was larger in Fort Collins than in many other communities. She stated City residents rather than non-residents were the ones paying the grocery tax. Elizabeth Whitley, a two-year resident of Fort Collins, stated she was a petition circulator and that people freely signed the petition because they wanted lower taxes in Fort Collins. She asked the Council to place the measure on the ballot. John Knezovich, 1205 Green Street, urged the Council to submit the initiative to the voters in November rather than adopting the initiated ordinance. He noted that there could be as many as three other sales tax measures on the April ballot. He stated he was part of the City Council that put together a mechanism for a sales tax rebate. He urged Council to take a look at how the program was structured. He stated the sales tax reduction would take place over two years and that the entire $6 million would be lost at the end of two years. He stated represented about 10% of the General Fund of the City. He suggested that the Council consider what alternatives would be possible to replace this as a revenue source to the City. He stated it would be difficult for the City to deal with the loss of $6 million in revenue. He stated the citizens needed to be informed that there was a rebate mechanism and that this was a fair tax. He noted that the City could not raise property taxes because of TABOR, that there was no income tax, and that it would be difficult to find new revenues for the City. He stated the Councilmembers should vigorously oppose this initiative and should propose alternatives. Rich Shannon, 5000 Boardwalk Drive #43, encouraged Council to put the measure before the voters. He stated this was a "feel good issue" to remove the sales tax from groceries. He stated this was not the "real issue" and that the Council should take a leadership role in explaining to the community that the issue was the long term financial health of the community. He stated the issue was how the City would continue to maintain the quality of life that it currently enjoyed. He stated the "agenda" being brought forward could be the first of many Libertarian initiatives promoting a reduced form August 17, 2004 of government. He stated this was an "attack on City Hall and government." He asked the Council to be very vocal about letting the community know that this was what was happening. He stated every organization should look internally from time to time to see what could be cut but that this was not the appropriate way to do that. He asked that the Council place this before the voters and take a leadership role as individuals in ensuring a "healthy debate" within the community. He stated "silence would be viewed as acceptance." Bruce Lockhart, 2500 East Harmony Road, stated the amount of proposed cuts were not excessive. He stated there was a $2.2 million payment on bonds annually to pay for a $33 million police facility and that was an "exorbitant amount of money." He stated if the initiative passed that the Council would have to make some "tough decisions" on whether to spend $33 million for a police facility. He stated private entities have always had to face such choices. He stated the City would not make such decisions until forced to do so. He stated taking away revenues would force the City staff to figure out a way to cope with a 10% in revenues as many private entities have already been forced to do. Kelly Ohlson, 2040 Bennington Circle, stated he was an "undecided voter" on this issue. He stated he was a firm believer in the citizen initiative process and that there should not be a nine -month lapse between validation of the petition to having the vote. He stated he would be looking at how the City "sells the issue" in identifying what would be cut if the initiative passes. He stated less important things would be cut or delayed and that he did not want the City to misrepresent the issue by saying that something as important as police officers would be cut. He stated he would also be following whether the City would be dealing quickly with the costly compensation and benefits issue. He stated it was also important for the City to look at O&M costs for any capital improvements. Mayor Martinez asked if it would be a special election if Council placed this on the November ballot. City Attorney Roy stated the Charter provision that limited the frequency of special elections would not prohibit the Council from calling a special election at any time. He stated the Council could choose to place this on the ballot as a Council initiated or referred measure. Councilmember Hamrick stated the language in the initiative talked about implementation on January 1, 2005 and what the impact would be if the measure was placed on the April ballot i.e. whether it would be retroactive. City Attorney Roy stated was a decision that would have to be made by the Council at that time. Councilmember Weitkunat asked how Councilmembers could be involved in taking a position on the initiative. City Attorney Roy stated as a matter of practice, once a measure was placed on the ballot that the provisions of the Fair Campaign Practices Act would be triggered. He stated there were numerous exceptions and that the Act primarily limited the ability of the City to expend public funds opposing or supporting a ballot measure. 35 August 17, 2004 Councilmember Weitkunat asked what would be allowed. City Attorney Roy stated the Council is permitted to adopt a Resolution in support of or in opposition to a measure, that Councilmembers could express their personal opinions, that staff could respond to unsolicited questions, and that personal funds or time could be spent to support or oppose a measure. Councilmember Weitkunat asked about the history of the 2.25% sales tax on groceries. She noted that information had been presented about the elimination of a State sales tax on groceries in 1979. She asked if there was history on why the City decided to retain a 2.25% sales tax on groceries rather than eliminating it. She also asked about the amount of revenue that would be affected. She noted that the larger cities that did not have a grocery tax had a larger base tax. Alan Krcmar k, Finance Director, stated staff had reviewed the records back to 1968 and that the Council looked at the taxation of groceries three separate times. He stated each time the Council expressed a concern about how taxing grocery food tended to be regressive in nature i.e. people at the lowest income levels would pay a higher portion of their total incomes on grocery food than did higher income people. He stated each time the Council looked at the issue they decided that it was appropriate for all members of the community to pay a portion of the cost of the services provided by the City. He stated a rebate program was established in the early 1980s to provide a way for the lowest income households to apply for a sales tax rebate. He stated the rebate program had been run continuously since then and that each of the capital project sales taxes had not included tax on food. He stated the intent was to distribute the tax burden and offer a mechanism by which money could be given back to the lowest income households. Councilmember Weitkunat asked what the amount of tax would be on $100 in grocery food. Krcmarik stated the tax was $2.25 on $100. Councilmember Weitkunat asked about the average rebate offered. Krcmarik stated a $40 per person rebate was offered and that an average size (2.5 person) household would be eligible for a $100 rebate. He stated the statistics from the Consumer Expenditure Survey done annually nationwide suggested that the tax on grocery food was approximately $70-75 per year. He stated the City was therefore rebating more money than what was actually paid according to that Survey. Councilmember Weitkunat asked about the difference in assessing an across-the-board sales tax (including food) and a tax on general merchandise. Krcmarik stated total rates could be lower if there was a broad based tax, and that based on the 58 home rule cities in Colorado that collected their own tax that most included a tax on food in their base. He stated those that did not include a grocery sales tax had a higher rate. He stated the average sales tax rate for those not taxing food was 3.9% and that if a food sales tax was included in the base that the average sales tax was about 3.1 %. Councilmember Weitkunat asked what the City would need to do to recover the lost revenue if the food sales tax was eliminated. Krcmarik stated staff was estimating that a quarter cent levy that 36 August 17, 2004 would exclude food would generate about $5.4 to $5.5 million. He stated staff projected that the loss of revenue to a tax on food would be higher than that. Councilmember Weitkunat asked if the general sales tax would therefore have to go to about 2.5% in order to compensate for the lost of the grocery sales tax. Krcmarik replied in the affirmative. Councilmember Tharp asked if a new quarter cent sales tax would have to go to the voters. Krcmarik replied in the affirmative. Councilmember Tharp asked if the City was prepared at this point to come up with a substitute. She stated Mr. Brophy's position was to eliminate the tax and that it might be difficult to convince people that the City really needed the new quarter cent tax in place of the food tax. She asked if it was realistic to say that there would be a substitute tax. Krcmarik stated other communities had been successful in raising their sales tax rates in the past few years. He stated it was always a difficult package to present to the voters and that people were still waiting for an economic rebound. Councilmember Tharp noted that the City twice tried unsuccessfully to get a sales tax for transportation. She stated it was already difficult to deal with three issues at once on this agenda item. She stated the issue of bow the lost revenue would be replaced would be a separate issue. She stated a key issue was the timing of placement on the ballot. She requested clarification regarding whether the Council could place the matter on the November ballot and what the repercussions would be. City Attorney Roy stated there would be no legal repercussions. Councilmember Tharp asked if the Council could choose at this meeting to place the matter on the November ballot. City Attorney Roy stated a special election would need to be called by Ordinance and that could be done on September 7. He stated the Council could adopt the Resolution placing the measure on the April ballot, since some action needed to be taken with regard to the petition, and to come back on September 7 with the measure as a Council measure for placement on the November ballot. Councilmember Tharp asked ifthe procedure could be simplified. City Attorney Roy stated a special election would have to be called by ordinance and that an ordinance had not been prepared for that purpose. He stated the Council must either adopt the initiated Ordinance or place it a ballot. He stated in his opinion the only way to place the citizen -initiated measure on the ballot was to put it on the April ballot. Mayor Martinez asked about the procedure to cancel initiative on the April election if Council would decided on September 7 to place the measure on the November ballot. City Attorney Roy stated staff would need to explore that issue separately. He stated the petition representatives appeared to be indicating that placement on the November ballot would be consistent with their wishes. He stated 37 August 17, 2004 there would need to be assurances that there would be no need to place the measure on the April ballot if it would be placed on the November ballot. Mayor Martinez asked if the petition's ballot language would be used if the Council placed the matter on the ballot. City Attorney Roy stated he would prefer to wait to respond to that question. Councilmember Weitkunat asked if Council decided to place the measure on the November ballot, could a decision also be made on September 7 to submit a tax initiative to the ballot for a substitute tax. City Attorney Roy stated anything for the November ballot must be submitted by September 7 in order to meet the September 8 deadline for certifying ballot content to Larimer County. City Clerk Krajicek stated an intergovernmental agreement must be entered into with Larimer Countyby September 3 and that the ballot language must be certified to the County on or before September 8. City Attorney Roy stated Council must decide by September 7 whether to place this matter on the November rather than April ballot. Councilmember Weitkunat stated she would be interested in submitting another substitute tax measure to the ballot at that time. Executive Session Authorized Councilmember Tharp made a motion, seconded by Councilmember Bertschy, to adjourn into Executive Session to discuss legal issues with the City Attorney pursuant to Section 2-31(2) of the City Code. The vote on the motion was as follows: Yeas Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council reconvened following the Executive Session at 8:20 p.m.) Items Relating to a Citizen -Initiated Ordinance Relating to the Reduction of the Sales Tax on Grocery Food, Continued. Mayor Martinez stated the item relating to the sales tax on grocery food would continue. He asked about the petitioners for the citizen initiative. City Attorney Roy stated they were the petition representatives. Mayor Martinez asked how many petition representatives there were. An unidentified member of the audience responded and indicated that there were three petition representatives. 1K August 17, 2004 Mayor Martinez asked if that represented a problem. City Attorney Roy stated for the purpose of moving forward on this item that an indication from two of the petition representatives would be helpful on several questions. Mayor Martinez asked the petition representatives to come forward. Mark and Mary Brophy, 1109 West Harmony Road, stated they were petition representatives. Mayor Martinez asked the Brophys if they would consider withdrawing the petition that would require placement on the April ballot and agreeing that two elections would not be necessitated on the same ballot measure if the Council placed the measure on the November ballot. Mr. and Mrs. Brophy stated the petition representatives would be agreeable to that. He stated the intent was to have one election in November rather than two elections. Councilmember Tharp asked if the petition representatives were in agreement regardless of whether or not the measure passed in November. Mr. and Mrs. Brophy indicated that they were in agreement that only one election would be held regardless of the outcome. Mr. Brophy stated the assumption was that the ballot language would be retained without alteration. Mrs. Brophy stated she believed that the third petition representative would also be in agreement. Mayor Martinez asked if the Council needed to take action at this meeting. City Attorney Roy stated the provision was that upon presentation of an initiative petition certified as sufficient, the Council shall either adopt it without alteration within 30 days or submit the proposed measure to the registered electors. He stated submission of the measure to a ballot on September 7 would meet the requirements of the Charter. Mayor Martinez asked if there was a motion to not adopt the Ordinance. Councilmember Bertschy made a motion, seconded by Councilmember Roy, that the Council not adopt Ordinance No. 137, 2004 and instead submit the question to the voters. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to postpone Resolution 2004-101 and to request the City Attorney to bring back at the September 7 meeting an additional option to be considered placing the question on the November ballot. 39 August 17, 2004 Councilmember Roy asked what areas would likely be cut if there were a 10% cut to the City budget. Interim City Manager Atteberry stated a further $6 million reduction in a two-year period in the City budget would have a significant and real impact on the City's ability to continue to provide quality services. He spoke regarding the cuts that had been made in the past two years. He stated he would be working with the City's Executive Lead Team to develop a list of specific service reductions. He stated this issue raised a high level of concern regarding the City's ability to respond to this without a significant impact to the citizens of Fort Collins. Councilmember Roy stated there were some people that would like to see the size of government reduced and those who were looking for "compassion" in government. He stated it was important in this discussion that items that were heavily subsidized (such as Transfort and affordable housing) for individuals would not be curtailed or endangered. He stated there was room in any organization to remove some funding. He stated as this discussion continued it would be important to understand the difference between "trying to take a knife to government" and making sure that government can continue to provide the services that only it can provide. He stated organizations such as the City can not just "drum up" $6 million. He stated this issue would have a significant impact on the lives of many citizens and perhaps a very negative impact on the same citizens who purportedly would benefit from the sales tax cut. He stated he had strong feelings about this matter and that it was clear that the actions of governments affected lives. He stated he personally he felt that government affected lives in a positive manner more often than not. Councilmember Weitkunat stated she tended to support placement of this measure on the November ballot. She stated she would also like to pursue consideration of an alternative tax measure to accompany this initiated measure to compensate for the lost food sales tax. Councilmember Tharp stated it would be difficult to organize an alternative tax that quickly. Councilmember W eitkunat stated she believed that it would be possible to move quickly. She stated similar actions had been taken in other communities. She stated she would like to see something "simple" to cover the lost revenue. She suggested that the ballot language for the alternative tax could be written to state that it would not take effect unless the food sales tax was repealed by the voters. She stated the Council should make an attempt to cover the lost revenue and that this was an appropriate time to take this action. Councilmember Hamrick stated he would support scheduling discussion of this on a study session agenda. He stated the Council also needed to look at the impact of scheduling an alternative tax measure on the November ballot. Councilmember Bertschy stated he agreed with Councilmember Roy about the impact of the cuts, which would be made to secondary rather than basic services. He stated the secondary services impacted a great majority of the citizenry and provided some of the quality of life for this m August 17, 2004 community. He stated quality of life brought employers to the City. He stated the Council needed to state the case for why the City needed to recover the lost funds. He agreed with Councilmember Weitkunat that one way to state the case was to place an alternative tax measure on the ballot. He stated the Council needed to make a solid case about what the losses would be and what a potential substitution should be if the food sales tax was lost. Councilmember Tharp stated she agreed that the secondary quality of life services (museum, library, transit, Lincoln Center, parks and recreation, etc.) would be cut and that primary services would not be cut. She stated the City just went through a lengthy discussion on economic development and why this was a solid community i.e. that this was a good place to live. She stated if the cuts were made that the community "would be in trouble." She stated the reality was that it would be difficult to get a ballot item ready for an alternative tax measure in such a short time. She stated the impact of removing the sales tax from food would be compounded by the fact that cuts had been made for the last two years (hiring freezes, delayed raises for employees, etc.) and that reserves had been heavily used. She stated she could not imagine where cuts would be made except in programs such as the library. She stated the next level of cuts would reduce the number of employees, the amount of service that would be provided, and the types of services enjoyed by the citizens. She stated her concern was with the mechanics of placing an alternative measure on the ballot in such a short period of time and having it be successful. Mayor Martinez stated employers asked about the quality of life in the community before making a decision to locate here. He asked if all other cities that did not have a food sales tax had a larger base tax. Krcmarik stated Denver had a tax rate of 3.75%, Colorado Springs 2.5%, Aurora 3.75%, and that on average the 10 cities on the list had an average tax rate of 3.95%. Mayor Martinez asked what percentage of the cities in Colorado had a food sales tax. Krcmarik stated a study by the Colorado Municipal League estimated that 82% of the cities and towns in Colorado had a sales tax taxed food. Mayor Martinez stated a picture had been painted that Fort Collins was one of the rare cities to have a food sales tax when in fact 82% had a food sales tax. Councilmember Weitkunat stated this was an opportunity to propose an alternative tax measure at the same time as the initiated measure in order to be effective. She stated she believed that people would support the alternative tax because it was a "repositioning of the tax" rather than a new tax. She stated she would hope that those who understood the need for the sales tax in the General Fund would rally and campaign to make it successful. She stated time was of the essence and that some positive things could come from the effort. Mayor Martinez stated the City government had done a good job of "cutting" and not putting new taxes in place. He stated the police building (a high priority) was being paid for by setting money 41 August 17, 2004 aside every year to make it happen rather than through a new sales tax. He stated if the initiated measure passed and more cuts would be necessary that he would oppose any cuts to basic services such as emergency services. Councilmember Hamrick stated he supported Councilmember Weitkunat's comments regarding a shifting of the taxes. He stated he was opposed to taxes on food and drugs because it was a disproportionate burden on the low income and seniors. He stated this would be an opportunity to shift the taxes and that he would support having something for consideration in September. Councilmember Bertschy stated he agreed with Councilmember Weitkunat. Mayor Martinez stated he favored tax cuts and saving tax dollars but that it was important to understand the impacts on people. He stated people were attracted to this community because of the amenities and that the voters had approved funding for such amenities. He stated new taxes had not been placed on food. He stated this would affect the secondary services and that it would be difficult to fund those services if people still demanded them. He stated it could become necessary to increase fees for such services. Councilmember Tharp stated if higher fees had to be charged, lower income people would be precluded from using the amenities. Mayor Martinez stated it could become even more difficult for lower income people to even live in the community. City Attorney Roy requested clarification regarding the motion. Councilmember Bertschy stated the motion was to postpone Resolution 2004-101 and to bring back to the September 7 meeting, two options (this Resolution and an option placing the same measure on the November ballot). City Attorney Roy asked if that included Councilmember Weitkunat's direction. Councilmember Bertschy stated he believed that was included in the motion. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED :W August 17, 2004 Councilmember Weitkunat made a motion, seconded by Councilmember Tharp, to direct staff to prepare a Resolution for September 7, 2004 for a replacement tax to cover the loss of 2.25% on food sales tax. Krcmarik noted that the measure proposed in the citizen initiative was a three -step process and asked if the new revenue should match those three steps. Councilmember Weitkunat asked if it would be sufficient to have a motion to replace the grocery tax with the replacement tax. City Attorney Roy stated if the intent was to offset the loss with a corresponding new revenue stream that the staff could develop language to carry out that intent. Councilmember Weitkunat stated was her intent. Councilmember Bertschy stated there may not be a need for a motion because three Counci ]members had indicated an interest in following the direction articulated by Councilmember Weitkunat. City Attorney Roy stated specific direction was needed so that staff would know what to present. Councilmember Tharp supported voting on the motion and stated the essence was to come up with a mechanism to deal with offsetting the lost food sales tax revenue. She stated the details would need to be worked out. City Attorney Roy stated he understood. Councilmember Roy stated he could not support the motion. He stated years were spent coming up with plans that were "coherent and cohesive." He stated he agreed that it was important to replace the lost revenue but that this action gave the appearance of "being panicked" rather than "good governance." He stated if the food sales tax was repealed, it was questionable whether people would be willing to pay a separate tax. He stated many people had signed the petition and that some probably signed the petition because they believed in the right of citizens to bring such issues forward for public discussion. He stated if the community could not be convinced that there was a reason to have a sales tax on food that it "deserved to be repealed." He stated there were compelling reasons for the tax to continue. He stated reacting in such a "compressed time frame" would be detrimental to the City's ability to create a "cohesive, cognizant tax plan." He stated the best way to deal with the issue was to "speak strongly and clearly to the public and citizens about why this tax was important" to the community and the "end user of the tax dollars." Councilmember Tharp stated she agreed with Councilmember Roy and questioned submitting an alternative tax at the same time as the initiated measure. She stated she understood that Councilmember Weitkunat's intent was to "create an opportunity" to ensure the "least disruption of governmental services." She stated the replacement sales tax would be the next step if the initiative passed. She stated she was "ambivalent" about the timing of the replacement tax measure. She stated if the two measures were submitted to the voters at the same time that this would send "mixed messages" to the voters. 43 August 17, 2004 Councilmember Weitkunat stated it was "logical and simplistic" to schedule both measures at the same time. She stated this would not send "mixed messages" and that it was important that the Councilmembers provide a policy commitment to "keep this government running smoothly and efficiently." She stated this must be kept simple and must not be made complex. Mayor Martinez asked the Brophys if the intent was to cut the sales tax because it was on food or if the intent was to give government less tax. Mr. Brophy stated he wanted the government to be smaller. Mayor Martinez stated he would support the motion to look at this. He stated he was not certain that he would support a shifting of the tax when the matter was brought forward for consideration. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Tharp and Weitkunat. Nays: Councilmember Roy. THE MOTION CARRIED Executive Session Authorized Councilmember Tharp made a motion, seconded by Councilmember Bertschy, to adjourn into Executive Session to discuss legal issues with the City Attorney pursuant to Section 2-31(2) of the City Code. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council reconvened following the Executive Session at 8:20 p.m.) Items Relating to a Citizen -Initiated Ordinance Relating to the Reduction of the Sales Tax on Grocery Food, Continued. Mayor Martinez stated the item relating to the sales tax on grocery food would continue. He asked about the petitioners for the citizen initiative. City Attorney Roy stated they were the petition representatives. Mayor Martinez asked how many petition representatives there were. An unidentified member of the audience responded and indicated that there were three petition representatives. Mayor Martinez asked if that representing a problem. City Attorney Roy stated for the purpose of moving forward on this item that an indication from two of the petition representatives would be helpful on several questions. Vil August 17, 2004 Mayor Martinez asked the petition representatives to come forward. Mark and Mary Brophy, 1109 West Harmony Road, stated they were petition representatives. Mayor Martinez asked the Brophys if they would consider withdrawing the petition that would require placement on the April ballot and agreeing that two elections would not be necessitated on the same ballot measure if the Council placed the measure on the November ballot. Mr. and Mrs. Brophy stated the petition representatives would be agreeable to that. He stated the intent was to have one election in November rather than two elections. Councilmember Tharp asked if the petition representatives were in agreement regardless of whether or not the measure passed in November. Mr. and Mrs. Brophy indicated that they were in agreement that only one election would be held regardless of the outcome. Mr. Brophy stated the assumption was that the ballot language would be retained without alteration. Mrs. Brophy stated she believed that the third petition representative would also be in agreement. Mayor Martinez if the Council needed to take action at this meeting. City Attorney Roy stated the provision was that upon presentation of an initiative petition certified as sufficient the Council shall either adopt it without alteration within 30 days or submit the proposed measure to the registered electors. He stated submission of the measure to a ballot on September 7 would meet the requirements of the Charter. Mayor Martinez asked if there was a motion to not adopt the Ordinance. Councilmember Bertschy made a motion, seconded by Councilmember Roy, that the Council not adopt Ordinance No. 137, 2004 and instead submit the question to the voters. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Bertschy made a motion, seconded by Councilmember Hamrick, to postpone Resolution 2004-101 and to request the City Attorney to bring back at the September 7 meeting an additional option to be considered placing the question on the November ballot. Councilmember Roy asked what areas would likely be cut if there must be a 10% cut to the City budget. Interim City Manager Atteberry stated a further $6 million reduction in a two-year period in the City budget would have a significant and real impact on the City's ability to continue to provide quality services. He spoke regarding the cuts that had been made in the past two years. He stated he would be working with the City's Executive Lead Team to develop a list of specific service 45 August 17, 2004 reductions. He stated this issue raised a high level of concern regarding the City's ability to respond to this without a significant impact to the citizens of Fort Collins. Councilmember Roy stated there were some people that would like to see the size of government reduced and those who were looking for "compassion" in government. He stated it was important in this discussion that items that were heavily subsidized (such as Transfort and affordable housing) for individuals would not be curtailed or endangered. He stated there was room in any organization to remove some funding. He stated as this discussion continued that it would be important to understand the difference between "trying to take a knife to government" and making sure that government can continue to provide the services that only it can provide. He stated organizations such as the City can not just "drum up" $6 million. He stated this issue would have a significant impact on the lives of many citizens and perhaps a very negative impact on the same citizens who purportedly would benefit from the sales tax cut. He stated he had strong feelings about this matter and that it was clear that the actions of governments affected lives. He stated he personally he felt that government affected lives in a positive manner more often than not. Councilmember Weitkunat stated she tended to support placement of this measure on the November ballot. She stated she would also like to pursue consideration of an alternative tax measure to accompany this initiated measure to compensate for the lost food sales tax. Councilmember Tharp stated it would be difficult to organize an alternative tax that quickly. Councilmember Weitkunat stated she believed that it would be possible to move quickly. She stated similar actions had been taken in other communities. She stated she would like to see something "simple" to cover the lost revenue. She suggested that the ballot language for the alternative tax could be written to state that it would not take effect unless the food sales tax was repealed by the voters. She stated the Council should make an attempt to cover the lost revenue and that this was an appropriate time to take this action. Councilmember Hamrick stated he would support scheduling discussion of this on a study session agenda. He stated the Council also needed to look at the impact of scheduling an alternative tax measure on the November ballot on the BCC taxes that might be scheduled for the April ballot. Councilmember Bertschy stated he agreed with Councilmember Roy about the impact of the cuts, which would be made to secondary rather than basic services. He stated the secondary services impacted a great majority of the citizenry and provided some of the quality of life for this community. He stated quality of life brought employers to the City. He stated the Council needed to state the case for why the City needed to recover the lost funds. He agreed with Councilmember Weitkunat that one way to state the case was to place an alternative tax measure on the ballot. He stated the Council needed to make a solid case about what the losses would be and what a potential substitution should be if the food sales tax was lost. August 17, 2004 Councilmembernarp stated she agreed that the secondary quality of life services (museum, library, transit, Lincoln Center, parks and recreation, etc.) would be cut and that primary services would not be cut. She stated the City just went through a lengthy discussion on economic development and why this was a solid community i.e. that this was a good place to live. She stated if the cuts were made that the community "would be in trouble." She stated the reality was that it would be difficult to get a ballot item ready for an alternative tax measure in such a short time. She stated the impact of removing the sales tax from food would be compounded by the fact that cuts had been made for the last two years (hiring freezes, delayed raises for employees, etc.) and that reserves had been heavily used. She stated she could not imagine where cuts would be made except in programs such as the library. She stated the next level of cuts would reduce the number of employees, the amount of service that would be provided, and the types of services enjoyed by the citizens. She stated her concern was with the mechanics ofplacing an alternative measure on the ballot in such a short period of time and having it be successful. Mayor Martinez stated employers asked about the quality of life in the community before making a decision to locate here. He asked if all other cities that did not have a food sales tax had a larger base tax. Krcmarik stated Denver had a tax rate of 3.75%, Colorado Springs 2.5%, Aurora 3.75%, and that on average the 10 cities on the list had an average tax rate of 3.95%. Mayor Martinez asked what percentage of the cities in Colorado had a food sales tax. Krcmarik stated a study by the Colorado Municipal League estimated that 82% of the cities and towns in Colorado that had a sales tax taxed food. Mayor Martinez stated a picture had been painted that Fort Collins was one of the rare cities to have a food sales tax when in fact 82% had a food sales tax. Councilmember Weitkunat stated this was an opportunity to propose an alternative tax measure at the same time as the initiated measure in order to be effective. She stated she believed that people would support the alternative tax because it was a "repositioning of the tax" rather than a new tax. She stated she would hope that those who understood the need for the sales tax in the General Fund would rally and campaign to make it successful. She stated time was of the essence and that some positive things could come from the effort. Mayor Martinez stated the City government had done a good job of "cutting" and not putting new taxes in place. He stated the police building (a high priority) was being paid for by setting money aside every year to make it happen rather than through a new sales tax. He stated if the initiated measure passed and more cuts would be necessary that he would oppose any cuts to basic services such as emergency services. Councilmember Hamrick stated he supported what was said by Councilmember W eitkunat regarding a shifting of the taxes. He stated he was opposed to taxes on food and drugs because it was a 47 August 17, 2004 disproportionate burden on the low income and seniors. He stated this would bean opportunity to shift the taxes and that he would support having something for consideration in September. Councilmember Bertschy stated he agreed with Councilmember Weitkunat. Mayor Martinez stated he favored tax cuts and saving tax dollars but that it was important to understand the impacts on people. He stated people were attracted to this community because of the amenities and that the voters had approved funding for such amenities. He stated new taxes had not been placed on food. He stated this would affect the secondary services and that it would be difficult to fund those services if people still demanded them. He stated it could become necessary to increase fees for such services. Councilmember Tharp stated if higher fees had to be charged that lower income people would be precluded from using the amenities. Mayor Martinez stated it could become even more difficult for lower income people to live in the community. City Attorney Roy requested clarification regarding the motion. Councilmember Bertschy stated the motion was to postpone Resolution 2004-101 and to bring back to the September 7 meeting two options (this Resolution and an option placing the same measure on the November ballot). City Attorney Roy asked if that included Councilmember Weitkunat's direction. Councilmember Bertschy stated he believed that was included in the motion. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Weitkunat made a motion, seconded by Councilmember Tharp, to direct staff to prepare a Resolution for September 7, 2004 for a replacement tax to cover the loss of 2.25% on food sales tax. Krcmarik noted that the measure proposed in the citizen initiative was a three -step process and asked if the new revenue should match those three steps. August 17, 2004 Councilmember Weitkunat asked if it would be sufficient to have a motion to replace the grocery tax with the replacement tax. City Attorney Roy stated if the intent was to offset the loss with a corresponding new revenue stream that the staff could develop language to carry out that intent. Councilmember Weitkunat stated was her intent. Councilmember Bertschy stated there may not be a need for a motion because three Councilmembers had indicated an interest in following the direction articulated by Councilmember Weitkunat. City Attorney Roy stated specific direction was needed so that staff would know what to present. Councilmember Tharp supported voting on the motion and stated the essence was to come up with a mechanism to deal with offsetting the lost food sales tax revenue. She stated the details would need to be worked out. City Attorney Roy stated he understood. Councilmember Roy stated he could not support the motion. He stated years were spent coming up with plans that were "coherent and cohesive." He stated he agreed that it was important to replace the lost revenue but that this action gave the appearance of "being panicked" rather than "good governance." He stated if the food sales tax was repealed that it was questionable whether people would be willing to pay a separate tax. He stated many people had signed the petition and that some probably signed the petition because they believed in the right of citizens to bring such issues forward for public discussion. He stated if the community could not be convinced that there was a reason to have a sales tax on food that it "deserved to be repealed." He stated there were compelling reasons for the tax to continue. He stated reacting in such a "compressed time frame" would be detrimental to the City's ability to create a "cohesive, cognizant tax plan." He stated the best way to deal with the issue was to "speak strongly and clearly to the public and citizens about why this tax was important" to the community and the "end user of the tax dollars." Councilmember Tharp stated she agreed with Councilmember Roy and questioned submitting an alternative tax at the same time as the initiated measure. She stated she understood that Councilmember Weitkunat's intent was to "create an opportunity" to ensure the "least disruption of governmental services." She stated the replacement sales tax would be the next step if the initiative passed. She stated she was "ambivalent" about the timing of the replacement tax measure. She stated if the two measures were submitted to the voters at the same time that this would send "mixed messages" to the voters. Councilmember Weitkunat stated it was "logical and simplistic" to schedule both measures at the same time. She stated this would not send "mixed messages" and that it was important that the Councilmembers provide a policy commitment to "keep this government running smoothly and efficiently." She stated this must be kept simple and must not be made complex. m August 17, 2004 Mayor Martinez asked the Brophys if the intent was to cut the sales tax because it was on food or if the intent was to give government less tax. Mr. Brophy stated he wanted the government to be smaller. Mayor Martinez stated he would support the motion to look at this. He stated he was not certain that he would support a shifting of the tax when the matter was brought forward for consideration. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Tharp and Weitkunat. Nays: Councilmember Roy. THE MOTION CARRIED Other Business Mayor Martinez stated he would like to hear from staff about obtaining timers for each Councilmember. Interim City Manager Atteberry stated there were two options and that he would provide a memo to the Council. Executive Session Authorized Councilmember Bertschy made a motion, seconded by Councilmember Tharp to adjourn into Executive Session pursuant to Section 2-31(])(a) and 2-32(2) to discuss personnel matters and to consult the City Attorney regarding legal issues and potential litigation. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED ("Secretary's Note: The Council reconvened following the Executive Session at approximately 10:30 p.m.) Adjournment The meeting adjourned at 10:30 p.m. ATTEST: City Clerk i' •