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HomeMy WebLinkAboutMINUTES-05/02/2006-RegularMay 2, 2006 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, May 2, 2006, 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: Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Mayor Hutchinson stated each participant would have three minutes to speak. Ardith Nieman, 1136 Wabash Street, expressed concerns regarding library budget cuts and stated, according to national standards, the City's library was adequate for the City's population in 1976. She asked that Council ask the voters to decide in November whether there should be a library district. David May, President of the Fort Collins Area Chamber of Commerce, expressed concerns about the City budget shortfalls. He stated many preliminary revenue proposals presented to the Council at the February 14 work session would increase the price of government and make Fort Collins less competitive in the creation of jobs. He asked if Council's commitments to the economy and the creation of jobs would still hold during the upcoming budget discussions. The Chamber of Commerce had raised a number of questions about City finances and looked forward to hearing responses in the budget discussions. In the past the Chamber had supported the retention and renewal of existing taxes and now had concerns about proposals to raise taxes or impose new ones that would impose a heavy burden on business. The Chamber would like to hear clear and compelling reasons for any new revenue sources. Michelle Barry, 2943 Redburn Drive, high school junior, spoke in favor of a library district and expressed concerns about library budget cuts. Manuel Martinez, 310 Cherry Street, Transfort bus operator, read a letter signed by 22 individuals regarding inequities in salaries for hourly bus drivers. Anna Ilic, 3239 Sagewater Court, supported creation of a library district. Cinda Blessing, 713 Parliament Court, Transfort bus driver, spoke regarding inequitable salaries and benefits for City bus drivers. May 2, 2006 Courtney Przybylski, outgoing Director of Community Affairs for ASCSU, introduced the newly elected officers of ASCSU. Ron Thurston, 320 Jackson Avenue, Transfort bus driver, stated the bus drivers had issues with the skill ladder pay and classified positions. The City's budget was "balanced on the shoulders of the lowest paid hourly skill leveled employees" and new hires were being paid equal to or more than people who had been "working their way up the ladder" for up to three years. The bus drivers felt there should be some kind of"grandfather clause" for people who were hired before the decision was made to withdraw the possibility of jobs with benefits that had been "promised" to bus drivers. He asked that the Council direct the City Manager to look at the "human side" of this issue and remedy the situation. George Hoffman, 1101 Valley Oak Court, stated the "money" was now in Loveland. He stated he would not vote for "any tax" and stated the City had been "using a paring knife instead of a meat axe" in making budget cuts. Phil Freidman, 201 South Grant Avenue, supported creation of a library district and adequate library funding. He expressed concerns about taking funding from other amenities to fund the library and stated ways should be found to fund all of such programs. Alexis Maxwell,1216 South Bryan Avenue, opposed the current noise ordinance and supported the clarification of guidelines for determining unreasonable noise. Mayor Hutchinson asked if the Council wanted to continue to hear Citizen Participation beyond the 30 minute time limit. The consensus was to allow Citizen Participation to continue. Andrew Vaughan, 411 West Myrtle Street, spoke in opposition to the current noise ordinance and described his experience and the impact of a misdemeanor conviction on his employment and admission to law school. Heather Rice, 226B West Laurel Street, opposed the existing noise ordinance and supported a community service option for sentences for noise violators. She opposed an option for a partial fine and community service combination because this might not be affordable to students. Mike Floren,1512 Emigh Street, spoke against the current noise ordinance and asked that it be made fair for everyone. He asked that Council act on decriminalization, increased warnings, a community service option, and further clarity. Jim Bergonier, 1913 Seminole Drive, spoke in support of a library district and a strong library program. Citizen Participation Follow-up Mayor Hutchinson thanked those who spoke during Citizen Participation. 2 May 2, 2006 Councilmember Ohlson stated salaries for employees needed to be fair to the employees and the taxpayers. He would favor giving direction to the City Manager to look at the bus driver salary issue because it did not pass the "fairness/justice test." He asked for a detailed management report on the issue. Councilmember Roy stated he had not seen the letter submitted by the bus driver group. He expressed concern regarding the two -tiered salary system for bus drivers. He requested that the letter and other documentation regarding this issue be given to the Council. City Manager Atteberry stated he had not seen the letter and that he would request it be sent to the Council. He believed that "fairness and justice" had been served in this issue. Councilmember Roy asked for information on statements made by the City, whether direct or implied, regarding promises of the rate of pay and the future ability to receive benefits. City Manager Atteberry stated he had heard employees were assured that `classified benefits were forthcoming" and he would follow-up on this issue. Councilmember Brown congratulated the newly elected ASCSU representatives. Councilmember Kastein requested a one -page memo summarizing the administration's position on bus driver compensation. He also noted the noise ordinance would be discussed by Council and asked for a staff analysis of each of the issues referenced by the advocates for noise ordinance reform prior to the Council discussion. City Manager Atteberry stated staff planned to bring the noise ordinance back to Council on August 22 to consider the issues brought up by the speakers. Detailed information would be presented to the Council prior to the August discussion. The discussion was scheduled at the end of August to afford students an opportunity to participate in the discussion. Agenda Review City Manager Atteberry stated there were no changes to the published agenda. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the March 21, 2006 Regular Meeting, 7. Second Reading of Ordinance No. 065, 2006, Amending the City of Fort Collins District - Precinct May. This Ordinance, which was unanimously adopted on First Reading on April 18, 2006, amends the City of Fort Collins District -Precinct Map, which was adopted by Council on November 16, 2004, by adjusting precinct boundaries to correspond with election precincts established by Larimer County. These changes do not affect Council District boundaries. May 2, 2006 8. Second Reading of Ordinance No. 066, 2006, Amending Section 2-166 of the Code of the Ctv of Fort Collins to Change the Name of the Commission on the Status of Women to the Women's Commission. Ordinance No. 066, 2006, unanimously adopted on First Reading on April 18, 2006, changes the name of the group which advises City Council on issues pertaining to women from the "Commission on the Status of Women" to the "Women's Commission". The new name reflects the focus of the Commission which is on issues of importance to women in Fort Collins, not just on the conditions or status of women in the community. 9. Second Reading of Ordinance No. 067, 2006, Amending the Legal Descriptions for Certain Conveyances to the Colorado Department of Transportation Approved in Ordinance No. 007, 2005. Ordinance No. 007, 2005, approved real estate legal descriptions to convey a non-exclusive permanent sewer easement, domestic water and gas easement and a road right-of-way to accommodate the installation of a turn lane from East Prospect Road onto the access road in connection with the Colorado Department of Transportation's development of a new rest area on East Prospect Road near the Welcome and Visitor's Center. These legal descriptions contained typographical errors which rendered the descriptions unclear. This Ordinance, which was unanimously adopted on First Reading on April 18, 2006, amends the legal descriptions to be used in the documents of conveyance by correcting the errors. 10. Items Relating to the Sanctuary Annexation and Zoning. A. Second Reading of Ordinance No. 068, 2006, Annexing Property Known as the Sanctuary Annexation to the City of Fort Collins, Colorado. B. Second Reading of Ordinance No. 069, 2006, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Sanctuary Annexation to the City of Fort Collins, Colorado. These Ordinances, unanimously adopted on First Reading on April 18, 2006, annex and zone 15.65 acres located approximately one-half mile south of Kechter Road and approximately one -quarter to one-half mile east of Ziegler Road. The property is undeveloped and is in the FA-1 Farming District in Larimer County. The requested zoning in the City of Fort Collins is UE — Urban Estate District. Staff recommends this property be included in the Residential Neighborhood Sign District. A map amendment is necessary to place this property on the Residential Neighborhood Sign District Map. El May 2, 2006 11. First Reading of Ordinance No. 071, 2006, Vacating Portions of the Rights -of -Way as Dedicated on the Plat of Cameron Park First Filing. This site is located west of College Avenue, north of Cameron Drive. The streets were dedicated as a county development proposal as shown and laid out on the Cameron Park First Filing. The dedicated right-of-way was annexed into the City when the parcel was annexed in 1992. On November 20, 2003, the Redtail development proposal was submitted and shows a different street layout than was originally platted. The frontage road will not be continued and the improvements in this area will be removed with the Redtail project. Therefore, the right-of-way for the frontage road is no longer necessary and is proposed for vacation. The area will be retained as a utility, drainage and public access easement. All public and private utilities have been notified of the proposed vacation and no objections were reported. 12. First Reading of Ordinance No. 072, 2006, Vacating. Portions of the Ri is -of -Way as Dedicated on the Plat of Cameron Park Second Filing. This site is located west of College Avenue on the west end of Cameron Drive. The streets were dedicated as a county development proposal as shown and laid out on the Cameron Park Second Filing. Neither the streets nor the development were built. The dedicated right- of-way was annexed into the City when the parcel was annexed in 1988. On November 20, 2003, the Redtail development proposal was submitted and shows a different street layout than was originally platted. Therefore, the rights -of -way for the streets are no longer necessary and are proposed for vacation at this time. All public and private utilities have been notified of the proposed vacation and no objections were reported. 13. Resolution 2006-045 Finding Substantial Compliance and Initiating Annexation Proceedings for the Peterson Annexation. Cedar Pointe Land & Livestock, L.L.C., c.o. Duane Lebsack, has submitted a written petition requesting annexation of 27.89 acres located on the south side of East Vine Drive between Interstate 25 and County Road 5. The property currently is undeveloped. It is in the FA - Farming District in Latimer County. The requested zoning for this annexation is UE - Urban Estate. The surrounding properties are currently zoned: I - Industrial in the City to the west, FA-1 Farming in Larimer County to the north, M - Multi -Family and Ml - Multi -Family in Larimer County to the south, and FA-1 Farming in Larimer County to the east. May 2, 2006 The property is located within the Fort Collins Urban Growth Area. According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City will agree to consider annexation of property in the UGA when the property is eligible for annexation according to State law. This property gains the required 1 /6 contiguity to existing City limits from a common boundary with the Kirschner Annexation (December, 1993) to the west. 14. Resolution 2006-046 Finding Substantial Compliance and Initiating Annexation Proceedings for the Streamside Annexation. Cedar Pointe Land & Livestock, L.L.C., c.o. Duane Lebsack, has submitted a written petition requesting annexation of 73.67 acres located on the south side of East Vine Drive between Interstate 25 and County Road 5. The property currently is undeveloped. It is in the FAl - Farming District in Larimer County. The requested zoning for this annexation is UE - Urban Estate. The surrounding properties are currently zoned: FAl - Farming in Larimer County to the west, FA-1 Farming in Larimer County to the north, R1 - Residential and M - Multi - Family in Larimer County to the south, and FA-1 Farming in Larimer County to the east. The property is located within the Fort Collins Urban Growth Area. According to policies and agreements between the City of Fort Collins and Larimer County contained in the Intergovernmental Agreement for the Fort Collins Urban Growth Area, the City will agree to consider annexation of property in the UGA when the property is eligible for annexation according to State law. This property gains the required 1/6 contiguity to existing City limits from a common boundary with the Peterson Annexation (July, 2006) to the west. 15. Resolution 2006-047 Approving Expenditures From the Art in Public Places Reserve Account in the Cultural Services and Facilities Fund to Commission an Artist to Create Art Elements for the Police Facility Project. This Resolution approves expenditures of $249,037 for design, materials, installation and contingency for a project with artist Andrew Dufford of Chevo Studios to create multiple art elements for the Police Facility Project. 16. Resolution 2006-048 Authorizing the Lease of a Portion of Running Deer Natural Area to Hageman Earth Cycle. Inc.. for Two Additional Years. Hageman Earth Cycle, Inc. is requesting a continuation of a lease of approximately 15 acres of Running Deer Natural Area for a period of time starting July 1, 2006 and ending June 30, 2008. This lease will allow that business to continue using the site for the purposes of a public organic waste material "fee" drop off site, the temporary stock piling of these materials until they are transported off site to the lessee's composting site, and the sale of landscaping products. This lease does not allow the composting of materials on site. 0 May 2, 2006 17. Resolution 2006-049 Authorizing the Mavor to Execute an Intergovernmental Agreement Between the City and Colorado State University to Convey Ri t-of-Way to the City as Part of the East Prospect Road Improvement Project. In April, the City began work on the East Prospect Road Improvement Project, which involves widening a portion of Prospect Road adjacent to the Colorado State University (CSU) property at the Environmental Learning Center (ELC). CSU has agreed to convey to the City a strip of property adjacent to Prospect Road approximately 64 feet wide and 726 feet long to be used as right-of-way for Prospect Road. 18. Resolution 2006-050 Authorizingthe Mayor to Enter into a Contract with the Colorado Department of Transportation for the Design and Construction of the Hannon Road and Shields Street Intersection improvements. This funding contract between the City and the Colorado Department of Transportation (CDOT) will secure funding for a portion of the construction of the Shields Street and Harmony Road Intersection Improvements. The design of this project is currently underway and is apart of the Harmony Road Improvements (College to Seneca) funded by the Building on Basics sales tax. 19. Resolution 2006-051 Making an Appointment to the Transportation Board. A vacancy currently exists on the Transportation Board due to the resignation of Lee Watkins. Councilmembers Kastein and Ohlson reviewed the applications on file and are recommending Jim Clausen to fill the vacancy with a term to begin immediately and set to expire on December 31, 2008. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. Second Reading of Ordinance No. 065, 2006, Amending the City of Fort Collins District - Precinct Map. 8. Second Reading of Ordinance No. 066, 2006, Amending Section 2-166 of the Code of the City of Fort Collins to Change the Name of the Commission on the Status of Women to the Women's Commission. 9. Second Reading of Ordinance No. 067, 2006, Amending the Legal Descriptions for Certain Conveyances to the Colorado Department ofTransportation Approved in Ordinance No. 007, 2005. 7 May 2, 2006 10. Items Relating to the Sanctuary Annexation and Zoning. A. Second Reading of Ordinance No. 068, 2006, Annexing Property Known as the Sanctuary Annexation to the City of Fort Collins, Colorado. B. Second Reading of Ordinance No. 069, 2006, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Sanctuary Annexation to the City of Fort Collins, Colorado. Ordinances on First Reading were read by title by City Clerk Krajicek. 11. First Reading of Ordinance No. 071, 2006, Vacating Portions of the Rights -of -Way as Dedicated on the Plat of Cameron Park First Filing. 12. First Reading of Ordinance No. 072, 2006, Vacating Portions of the Rights -of -Way as Dedicated on the Plat of Cameron Park Second Filing. 23. Items Relating to Land Conservation at Soapstone Prairie Natural Area. A. First Reading of Ordinance No. 073, 2006, Authorizing the Conveyance of441 Acres of Land to the State Land Board Subject to a Conservation Easement in Exchange for 3,873 Acres of Land Located Within Soapstone Prairie Natural Area. B. First Reading of Ordinance No. 074, 2006, Authorizing the Lease of Portions of the Bernard Ranch Property to be Acquired by the City to the Bernards Through 2012. Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt and approve all items on the Consent Calendar. Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Consent Calendar Follow-up Councilmember Kastein spoke regarding item #18 Resolution 2006-050Authorizing the Mayor to Enter into a Contract with the Colorado Department of Transportation for the Design and Construction of the Harmony Road and Shields Street Intersection Improvements and requested a staff memo regarding the design and construction phases and time line. Staff Reports City Manager Atteberry introduced Mike Freeman, the City's Economic Advisor, and stated a full Council briefing on economic health activities was planned. May 2, 2006 Mike Freeman, Economic Advisor, reported on the drafting of an economic action plan. Work was starting on a "target industry study" and a collaborative effort for "community branding." Efforts were also underway for a business outreach initiative and "economic gardening." A collaborative project was underway between the City Manager's Office, Advance Planning and IT to implement data collection tools. A number of businesses in Fort Collins were talking about expanding and adding employees. City Manager Atteberry reported the Fort Collins -Loveland area was recently ranked by the Milliken Institute Best -Performing Cities Index as #46, which was a higher ranking than 2004. He also reported that the Neighborhood Services Group party pack was being modeled by UC-Davis. He spoke regarding the successful CSU Unity Event and the CSU-City Housing Fair. He announced that the Jim Colburn, Code Compliance Officer, was certified under the International Property Maintenance Code. He reported that the Youth Activity Center would close in mid-2007. Councilmember Reports Councilmember Roy reported that the Human Relations Commission had presented a Lifetime Service Award to Parker and Mabel Preble. Councilmember Weitkunat reported on discussions of the Poudre Fire Authority Board relating to a customer satisfaction survey and fire station renovation. Items Relating to Land Conservation at Soapstone Prairie Natural Area, Adopted on First Reading The following is staff's memorandum on this item. "FINANCIAL IMPACT The City's total investment in the exchange project will amount to $4,589,000. Of that amount $2, 323, 656 is the value of the 3,873 acres (or $600 per acre) and the remainder, $2,265,344, is the value ofthe conservation easement on the 441-acre community separatorparcel (or $5,137 an acre). The per acre cost for all 4,314 acres is $1, 064. All funds for the project are derived from sales tax revenues dedicated for natural area purposes. The purchase price for the Bernard Ranch is $2, 000, 000, or $1,136 per acre. The City's Natural Areas program plans to apply for Great Outdoors Colorado funds to "buy down " the conservation values in the property. If those grants are successful, and if the City is able to resell to a conservation buyer, or buyers, the City's net costs could be lowered by as much as one-half the purchase price. Ongoing costs after a sale would be limited to periodic conservation easement monitoring inspections, or approximately $500-1,000peryear. All funds for the project are derived from sales tax revenues dedicated for natural area purposes and by any outside grant funding the City is able to garner (in particular from Great Outdoors Colorado). May 2, 2006 EXECUTIVE SUMMARY A. First Reading of Ordinance No. 073, 2006, Authorizing the Conveyance of 441 Acres of Land to the State Land Board Subject to a Conservation Easement in Exchange for 3,873 Acres of Land Located Within Soapstone Prairie Natural Area. B. First Reading of OrdinanceNo.074,2006,AuthorizingtheLeaseofPortionsoftheBernard Ranch Property to be Acquired by the City to the Bernards Through 2012. This item includes two ordinances, each of which would authorize a real property transaction related to the conservation and use of Soapstone Prairie Natural Area. The first proposed transaction entails a trade of 441 acres within the Wellington community separator for 3,873 acres of State Land Board property that lies within the boundary of Soapstone Prairie Natural Area. The City will retain a conservation easement on the 441-acre parcel, enforceable by the City, that restricts development to a total of twenty-three home sites. Three of the home sites are already built out and the additional twenty home sites will be clustered on the northwest corner of the property. The State Land Board will obtain various water rights associated with the property. In addition to the 3,873 acres of land, the City will receive $811, 000 in cash to equalize the exchange values. The second transaction entails a purchase of 1,760 acres over a seven-year period for total consideration of$2, 000, 000. Asportions of the "Bernard Ranch "are acquired, they will be leased back to the seller for continued ranching activities. This lease requires City Council approval. Ultimately, the property will be resold to conservation -minded buyers subject to a conservation easement by which the City would limit development on the property. BACKGROUND The purpose of this background statement is two -fold: (1) to inform Council and the public about the specific transactions before the Council for consideration, and (2) to inform Council and the public of the overall land conservation strategy at Soapstone Prairie Natural Area. It is important to note these transactions are part of a finite action plan for conserving important properties that protect the City's initial Soapstone investment. Several key transactions have already taken place, and several more are contemplated. These transactions will ensure the best possiblepublic access into Soapstone, and they will ensure there are no inholdings within Soapstone that could cause fdure difficulties. They also ensure that the spectacular viewshed, recreation opportunities, and wildlife qualities of Soapstone will be protected for the future. The City acquired the 12,500-acre Soapstone Prairie Natural Area in 2004. At that time, there were several landowners within the Soapstone boundary, including a 2,100-acre ranch owned by the Roman family and the State Land Board's 3,873 acres. After the Soapstone purchase, the Roman family approached the City's Natural Areas program and asked if the City would be willing to buy 10 May 2, 2006 its property — a portion of which is immediately adjacent to the Lindenmieir archaeological site. In 2005, the City acquired the Roman propertyfor $1,260, 000, or $600 per acre. In addition to the internal ownerships, there were/are several major land holdings at the northern terminus of County Road 15. These "donut hole" properties are surrounded on three sides respectively by Soapstone, Meadow Springs Ranch to the east, and the County -owned RedMountain Ranch to the west. County Road 15 represents the most direct access into Soapstone from the city of Fort Collins. Because the status of the road at its terminus has been disputed by some adjacent property owners, staff believes that it is critical to eliminate access issues as much as possible by acquiring rights -of -way as needed. The purchase and resale (with conservation easements) of "donut hole" lands adjacent to County Road 15 will be extremely helpful in resolving these access issues. To date, staff has been successful in acquiring the Round Butte Ranch within the donut hole. Staff applied for and received a Great Outdoors Colorado grant for the first half of the Round Butte project and has another grant application pending. On thisparticularproperty, staffis hopeful that the ultimate net cost ofacquiring the property and then reselling it with conservation easements will be close to zero. State Land Board Exchange When the City acquired the Soapstone Prairie Natural Area, it negotiated a short-term agricultural lease of 3, 873 acres of State Land Board (SLB) property that lies within the City's deeded acreage. The SLB and Natural Areas Program immediately began to discuss options for conveyance of the SLB land to the City. An exchange of land, rather than a purchase arrangement, is strongly preferred by both parties because it avoids the SLB's uncertain and difficult biddingprocessfor the purchase of SLB lands. There are several motivations for the City and the SLB to exchange parcels: There have been conflicts between other Colorado municipal open space programs and the SLB over the use and disposition of SLB lands that are being leased by the municipal open space programs. The City's Natural Areas staffwanted to preclude the possibility ofany potential future conflict. 2. Acquisition of the SLB lands within Soapstone Prairie Natural Area eliminates all inholdings from within the City's original purchase. This provides strong protection for the City's substantial investments at Soapstone. 3. The SLB was interested in acquiring an income producing property that generated revenues in excess ofthe $9, 409 per year it currently receives from the City. The 441-acre property currently produces $85, 000 annually from the sod farm lessee. 11 May 2, 2006 In Spring 2005, the City's Natural Areas Program purchased a 441-acre parcel located in the southwestern corner of the Wellington community separator. The total purchase price, including land and water rights, was $5.4 million. The property was leased back to a sod farm operator and the City receives $85, 000 annually in lease revenues. The lease is renewable for up to 12 years. After negotiating for over a year with the SLB, Natural Areas staff and the SLB have arranged an exchange transaction that includes the trade of the 441-acre community separator parcel for the 3,873 acres of SLB inholdings. The City will retain a conservation easement on the 441-acre parcel that restricts development to a total oftwenty-three home sites. Three of the home sites are already built out, the additional twenty home sites will be clustered on the northwest corner ofthe property. The SLB will obtain various water rights associated with the property. In addition to the 3,873 acres of land, the City will receive $811,000 in cash to equalize the exchange values. Importantly, the conservation easement on the 441-acreparcel will notpreclude the City's Utilities Department from rehabilitating an existing ditch on the western side of the property, or from detaining historic, and possibly additional, flood f ows from the Upper Cooper Slough Basin on the southwestern corner of the property. Acquisition of Bernard Ranch Staff has now been successful in placing another "donut hole "property under contract. The 1, 760- acre Bernard Ranch comprises a major portion of the County Road 15 terminus, as well as a very important part of the spectacular viewshed from Soapstone. The City would acquire], 760 acres in seven specific parcels over a seven-year period for total consideration of $2,000,000. As each parcel of the Bernard property is acquired, it will be leased back to the seller for continued ranching activities until all parcels are acquired. This lease requires City Council approval. Ultimately, the property would be resold to conservation -minded buyers who would agree to limit development, precluding the possibility that the property would ultimately be sold in 40-80 acre parcels. Moreover, the acquisition and resale of the Bernard property would resolve access issues that have been raised regarding the use of the terminus of County Road 15 for public access into Soapstone. Conclusion Staff strongly recommends the SLB exchange transaction and the proposed Bernard lease -back. Because the outright purchase of SLB lands is quite difficult, this exchange represents an unusual and highly leveraged opportunity to protect the City's investment at Soapstone, while also conserving an important parcel in the Wellington community separator. The acquisition (and ultimate resale) of the Bernard Ranch enables the City to utilize the best public access into Soapstone, while also conserving a wonderful viewscape and wildlife habitat. " City Manager Atteberry stated there would be a brief staff presentation. John Stokes, Natural Resources Director, presented background information on the agenda item and spoke regarding the activities of the natural areas program. He stated the Land Conservation and 12 May 2, 2006 Stewardship Plan allocated resources in the natural areas program to local areas, regional projects, and community separators. The Soapstone Ranch was in the middle of the an ambitious land conservation project in the northern part of the County. The idea was to try to "stitch together" a relatively undeveloped connection between the mountains and the plains. The City partnered with Larimer County, the Nature Conservancy, and a local land trust to put together the project with publically held and privately conserved land. The City acquired the 12,500 acre Soapstone Prairie Natural Area in 2004 and the City was now doing a cultural and biological inventory. Almost $250,000 had been raised to do those inventories and the management plan would be developed based on the inventory data in 2006. There would again be free tours of Soapstone in 2006. The City was also working on road improvements in the area. He presented visual information showing the natural area, the Lindenmeier archaelogical site, and the adjacent County natural area. He reviewed the City and County land conservation efforts to date and stated the City was working to eliminate the remaining inholdings within the Soapstone natural area and to secure the best access into Soapstone from County Road 15. He presented visual information showing the current land ownership patterns in the Soapstone area. The State Land Board exchange would involve the trade of 441 acres of property for 3,873 acres of the Soapstone inholding. The City would receive a conservation easement on the sod farm that would restrict developments to 23 home sites. He noted 20 of the home sites were clustered in the northwestern corner. The City would also receive $811,000 to equalize the values of the exchanged lands. He presented visual information showing the location of the sod farm in the southwestern corner of the Wellington Community Separator. He presented visual information showing a map of the State Land Board land in the eastern portion of the Soapstone Natural Area. This transaction would enable the conservation of two properties and would eliminate potential future conflicts within Soapstone. The State Land Board would have a higher lease payment on the sod farm and would bank the future value of development rights on the property. The total cost would be about $4.5 million (about $1,000 per acre) and all funds would be generated by Building Community Choices and the County's "Help Preserve Open Space" program. The transaction would require adoption of an ordinance authorizing the transfer of the sod farm to the State Land Board. The State Land Board had unanimously authorized the exchange and the City's Land Conservation and Stewardship Board approved the exchange on April 12. The 1,760 acre Bernard Ranch was part of the "donut hole" at the terminus of County Road 15. The City recently acquired an option on the property to acquire the ranch for $2 million over seven years. The ranch would be leased back to the family for ranching over the seven years. The City planned to seek support from Great Outdoors Colorado for each transaction during the seven years to buy -down conservation values and development rights on the property. The property would eventually be sold for ranching purposes and conservation easements would be placed on the property with the help of Great Outdoors Colorado. The City would retain right-of-way need to access Soapstone. He presented visual information showing the location of the ranch, County Road 15, and the City - acquired Round View property. The Bernard Ranch would ensure best access on County Road 15, protect the gateway into Soapstone, and conserve the viewshed for a low net investment. This transaction requires an ordinance authorizing a lease -back to the Bernard family for cattle grazing. The lease would terminate upon completion of the acquisition by the City. The Land Conservation and Stewardship Board would formally consider this project at its next meeting prior to Second Reading of the Ordinance. The Land Conservation and Stewardship Plan specified that about one- third of available resources were to be allocated to each of the three categories of projects. The 13 May 2, 2006 allocation of resources was not evenly distributed at this time and the natural areas program would be working to get that allocation back into balance and to allocate more toward local projects. Kathleen Kilkelly, 920 Inverness Road, Growth Management Area resident, stated this appeared to be a "win -win" situation. She asked that Council evaluate "the means to these goals." She supported the acquisition and protection of Soapstone and the conservation easement on the sod farm. She asked Council not to "diminish" the importance of the community separators. The issue was "balance" and these kinds of matters should be discussed before they became "done deals." She expressed concern about future development by the State Land Board and questioned fixture zoning, annexation and subdivision plans for the property. She expressed concerns about clustering of development and stated she had concerns about the "long term repercussions" of this land exchange. She urged the Council to acquire more natural areas in the northeast and spoke about the impact of development in her area. Mayor Hutchinson stated there would be separate discussion and voting on each of the items. Councilmember Manvel noted the sod farm was adjacent to the Growth Management Area boundary and close to some of the new subdivisions near Richards Lake and Douglas Road. He asked if there would be a small subdivision of 20 homes on the property and if it would be developed in the County. Greg Byrne, CPES Director, stated there was no intent to annex the property or to move the Growth Management Area boundary. It was anticipated that any future development of the property would be done under County jurisdiction and regulations. Stokes stated there would be a potential for 20 home sites on the northwestern corner of the property. Three other existing home sites were on the eastern side of the property. The City did a visual preference survey and people were comfortable with one house per 10 acres within the community separators. The proposed density on this 440 acres would be less and the proposed houses would be clustered on the northwestern corner. The conservation easement would be enforceable by the City in perpetuity. Byrne stated part of the reason for the clustering was to maintain the viability of the sod farm and to maintain the lease income for the State Land Board. Councilmember Manvel asked if there was any additional detail available about the clustering and how much area could be used. Stokes stated the conservation easement specified that the development must comply with County regulations in place at the time of development. He noted development was not anticipated to occur soon and it was expected that the State Land Board would want to capitalize on those sites for 10-20 years. Councilmember Weitkunat stated some people may be confused about why there was money available for this during a right budget and asked staff to provide an explanation for the benefit of the audience. Stokes stated the funding being used for the State Land Board exchange was generated by Building Community Choices (a quarter -cent sales tax dedicated in part to the acquisition of natural areas). Other funding came from a quarter -cent sales tax for the County known as "Help Preserve Open Space." The City's natural areas program received about one-third of its total funding from that County tax. The City issued Certificates of Participation for regional projects such as Soapstone so that money would still be available for community separators and local projects. 14 May 2, 2006 Councilmember Weitkunat asked for confirmation that none of the money would come from the General Fund and the available funds could not be spent in other places. Stokes stated that was correct. City Manager Atteberry stated these dollars could not be used for General Fund purposes such as the library, Dial -a -Ride, etc. Councilmember Kastein stated he personally would prefer to see the money spent on local projects, community separators and regional projects in that order. He noted staffhad indicated that resources should be equally allocated for those three purposes. He asked if the policy direction was to spend the money equally. Stokes stated the policy provided a "framework for spending" and was not prescriptive. The policy provided that an effort would be made to distribute the dollars equally for the three purposes over the course of about 10 years. The plan also articulated that the City should take advantage of opportunities that became available. The allocation for regional projects was "just about maxed out" and staff s focus would now be on local projects and community separators. The allocations were "out ofbalance" and efforts would be made to achieve a balance within the ten-year period (2004-2014). The allocations at this time were 6% for local projects, 57% for regional projects and 37% for community separators. Those percentages would change as soon as the City started spending money on local projects. Councilmember Kastein asked if money would need to be spent on additional properties related to Soapstone. Stokes stated the focus was on the "donut hole" properties. There were private lands to the west that were inholdings within the Red Mountain property and the County was working on acquisition of those lands. Councilmember Kastein asked for clarification relating to the $4+ million cost to the City for the land swap. He asked if this was due to the money the City paid to purchase the 441 acres. Stokes replied in the affirmative. Councilmember Kastein asked for clarification regarding the net investment, noting that staff indicated the City hoped to have a low net investment after GOCO grants were received. He asked staff to estimate the net investment for the swap. Stokes stated the City bought the sod farm for about $5.4 million and would trade it to the State Land Board for 3,800 acres plus $800,000. The City's net investment would, therefore, be about $4.6 million (about $1,000 per acre). Councilmember Kastein asked if any further revenue was anticipated from GOCO funding. Stokes stated no further funding was anticipated on that particular project. Councilmember Kastein asked for clarification that the City hoped to have a low net investment on the second part of the transaction. Stokes stated GOCO grants must receive a minimum local match of 25%. The best case scenario for the Bernard Ranch was a net investment of approximately $300,000 if grants were received. Councilmember Kastein asked why input had not yet been received on the second part of the transaction from the Land Conservation and Stewardship Board. Stokes stated the issue was timing 15 May 2, 2006 and a full Council schedule. The Board was aware of the Bernard Ranch acquisition and would formally consider it at the next Board meeting prior to Second Reading of the Ordinance. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 073, 2006 on First Reading. Councilmember Kastein stated he recognized the importance of the Soapstone area and it made sense to "complete that purchase." He did not favor spending this kind of money so far north of the City. His approval of the ordinance was conditioned on the idea that the allocation for local projects would be brought back into line as soon as possible. Councilmember Manvel thanked staff for solving the State Land Board problem in an "ingenious way." He would like to see a continued balance in allocation of resource for local, regional and community separator projects. Mayor Hutchinson commented the Soapstone purchase was controversial but this was land the taxpayers could make good use of. Funds from the City and County open space taxes were earmarked for this purpose and the funds could not be used for anything else. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. Councilmember Brown made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 074, 2006 on First Reading. Councilmember Manvel thanked the Bernards and other ranchers who were making "financial sacrifices" in some cases to help protect the land. Councilmember Roy thanked staff for the hard work on finding these types of opportunities. He stated he trusted that a balance in allocations would happen. He appreciated being involved in this "legacy building" for the future. Councilmember Kastein thanked staff for working toward a low net investment on properties that were worth millions of dollars and for actively looking for grant opportunities. The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None. THE MOTION CARRIED. 16 May 2, 2006 Adjournment The meeting adjourned at 7:50 p.m. OV,& , _ Mayo ATTEST: City Clerk , 17