HomeMy WebLinkAboutMINUTES-07/05/2005-RegularJuly 5, 2005
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, July 5, 2005, 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 participants would have three minutes to speak.
Marcia Denney spoke regarding vacant problem properties and their impact on neighborhoods. She
described one situation in the Southridge subdivision and another situation on Huntington Circle in
which the neighbors were taking care of a vacant property to preserve property values in the
neighborhood. She urged the Council to create an ordinance that would deal with such properties
and the retention of occupancy limits. She asked that the Council take a proactive stand to protect
neighborhoods.
Earl Poppe, 1018 Timber Lane, spoke regarding the nuisance and rental ordinance. He stated his
single-family home neighborhood had deteriorated quickly over the past five years due to problems
with rentals and out-of-town owners.
Melissa Anderson, 2107 Constitution Avenue, spoke regarding the Coloradoan article on a possible
downtown Chatauqua-style arts district and stated there was a direct relationship between the vitality
of downtown and the quality of core neighborhoods. She stated unregulated, overcrowded "boarding
houses" were driving people (potential consumers) away from the central neighborhoods. She
stated the "three unrelated" ordinance must be enforced to preserve stable, viable neighborhoods that
would use downtown.
Joanne Malara, 2701 Blackstone Court, Kel-Mar strip business owner, opposed the southwest
enclave annexation. She stated many visitors from around the country come to the Kel-Mar strip
businesses as a destination and then go on to shop in Fort Collins.
Jack Ewing, 3112 Meadowlark Avenue, supported the senior center expansion to serve the "Baby
Boomer" generation.
July 5, 2005
Dorothy Spivak, 1914 Lookout Lane, asked the City to fill the vacant bicycle/pedestrian coordinator
position to deal with bike lane and trail problems and actively promote bicycling and walking.
Patty Markley -Hecker, Loveland, spoke on behalf of improved basic transit to the Harmony Road
area for the disabled, elderly and low income families.
Lloyd Walker, Rolland Moore West Neighborhood, stated occupancy limits were designed to solve
two problems: to curb the flight of families from the core of the City by preserving and
strengthening family neighborhoods and to provide suitable housing in proximity to the City's
largest economic engine (Colorado State University). He stated there was a need to house over
6,000 CSU employees and their families and over 20,000 students living off -campus. He stated the
housing needs of the two groups were different. He stated solutions to the problem included
developing mechanisms to effectively enforce existing occupancy limits and respecting and
upholding zoning codes. He stated many comparable cities had a "two unrelated" standard. He
stated the issue of housing off -campus students should be addressed in limited areas around CSU
in the "overlay zone" by creating a public -private partnership of the City, CSU, the rental investment
community and citizens to develop a vision for this zone. He stated this "vision" included higher
density and housing designed for student living. He stated the current "four anywhere" proposal
would allow four unrelated adults to occupy a rental house anywhere in the City by permit and that
this proposal would not address the problem. He stated there needed to be a "well crafted urban
planning solution" instead.
Jenny Shockenwell, Wellington resident and Fort Collins social worker, supported public transit
improvements to make transit more accessible.
Karen Buchanan, 6520 Kyle Avenue, thanked Council for postponing the southwest enclave
annexation.
Courtney Speshky, Director of Community Affairs for ASCSU, spoke regarding the economic
impact on student renters of the "three unrelated" ordinance. She stated ASCSU supported the
proposal to limit occupancy to four adults per household regardless of relationship status, with the
exception of dependants. She stated the proposal was for a magistrate with the ability to limit
particular households to any number.
Gail Zirtzlaff, 2048 Manchester Drive, Village West resident, spoke regarding quality of life issues
relating to rental properties.
Antionette Lewis, 2400 North Taft Hill Road, Dial -a -Ride user, spoke in support of funding for a
fixed route bus on Harmony Road to take people to the medical facilities at the Harmony Campus.
Mayor Hutchinson asked if Council would favor continuing Citizen Participation beyond the allotted
30 minutes. The consensus was in favor of continuing Citizen Participation.
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Marcia Fitzhorn, 2101 Rollingwood Drive, 25-year Fort Collins resident, supported funding for
better public transit and stated this was a basic service rather than a luxury.
Joe Collins, 839 Langdale Drive, Kel-Mar Strip business owner, thanked the City for delaying the
southwest enclave annexation. He asked that there be a dialogue on the proposed annexation.
Gary Young, 712 Hillview Court, president of the Scenic Knolls Homeowner's Association,
opposed the southwest enclave annexation because of quality of life issues.
Reginald (Bud) Heron, 415 South Howes Street, Senior Advisory Board chair, spoke in support of
the senior center "fitness" expansion.
John Coxson, 5800 Plateau Court, Scenic Knolls, opposed the southwest enclave annexation.
Al Baccili, 520 Galaxy Court, spoke in opposition to the southwest enclave annexation and asked
when Harmony and College would be "fixed."
Citizen Participation Follow-up
On behalf of the Council, Mayor Hutchinson thanked those who spoke during Citizen Participation.
Councilmember Roy stated he was aware of abandoned houses in his and other districts and asked
if the City had tools to deal with such houses. City Manager Atteberry stated he did not believe that
the City currently had the tool to enforce in these situations. He stated staff was meeting to discuss
the issue of abandoned houses to determine what could be done. City Attorney Roy stated some
abandoned houses that had become unsafe could fall under the Dangerous Building Code. He stated
there were weed regulations and that staff would be looking at other kinds of regulations that could
address concerns about "unsightly" buildings.
Councilmember Roy stated he was concerned about quality of life issues in neighborhoods with
rentals. He stated the Council understood the need to look at a grid transit system and that Council
would be looking at the budget to determine if needs that were not being met could be addressed.
Councilmember Kastein spoke regarding the public meeting he held on June 16 and stated there was
a lot of discussion at that meeting regarding the southwest enclave annexation. He stated he had
asked staff to put together another public meeting prior to future consideration of the proposed
annexation. He stated he was interested in more information on the benefit of the annexation to the
City.
Councilmember Ohlson commented on the "devastating impact" of illegal rental units and
abandoned homes across the City. He stated he would look forward to Code changes to better deal
with such issues throughout the City, and not just in upscale parts of town such as Southridge.
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Agenda Review
City Manager Atteberry reported that there were no changes to the published agenda.
Councilmember Ohlson withdrew item #23 Resolution 2005-072 Authorizing a Revocable Permit
to Northern Colorado Water Association, for a Period of Up to Two Months on Meadow Springs
Ranch for the Purpose of an Environmental Study and Survey from the Consent Calendar.
Councilmember Kastein withdrew item # 14 Second Reading of Ordinance No. 070, 2005, Making
Various Amendments to the City of Fort Collins Land Use Code from the Consent Calendar.
CONSENT CALENDAR
6. Consideration and Approval of the Regular Council Meeting Minutes of May 17, 2005 and
June 7, 2005.
Postponement of the Second Reading of Ordinance No. 052, 2005, Vacating a Portion of
Right -of -Way as Dedicated on the Plat of Prospect Industrial Park, to July 19, 2005.
Second Reading of this Ordinance is being postponed to July 19, 2005. The item needs to
be delayed until such time as the dedication of right-of-way and utility easements for the new
cul-de-sac location has been provided. The adjacent/requesting property owner is working
on getting the dedication documents signed, but was not able to get this completed in time
to meet the submittal deadlines for this meeting.
8. Second Reading of Ordinance No. 061, 2005, Appropriating Unanticipated Revenue in the
Street Oversizing Fund and Authorizing the Transfer of Appropriations from the Street
Oversizing Fund to the Capital Project Fund - Trilby and Ziegler Road Improvements
Project.
The construction of Kinard Junior High School requires minor arterial street improvements
for Ziegler Road adjacent to the school property. Staff worked with the Poudre R-1 School
District in an effort to coordinate the completion of Ziegler between Trilby Road and
Kechter Road as well as the connection of Trilby between Timberline Road and Kechter.
The improvements will be to an important segment of roadway which will provide primary
access to the new Kinard Junior High School projected to open in the fall of 2006. This
project is funded entirely through developer contributions and the construction will be
managed by the City Street Oversizing Program staff. Ordinance No. 061, 2005, was
unanimously adopted on First Reading on June 7, 2005.
9. Second Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of
Building 15, Old Town Square, Fort Collins, Colorado.
In order for this property to become tax exempt, state law requires that the Council approve
the terms of the lease by this Ordinance, which was unanimously adopted on First Reading
on June 7, 2005.
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Since February 1996, the City has been leasing space in Old Town Square for the Police
Services District One office. Police Services has leased the present Old Town Square
location since January 1, 2000, which term ended and then renewed for one year on January
1, 2004. The present lease term commenced January 1, 2005 and will expire December 31,
2009. Lease payments under the new lease will include base rent, common area maintenance
("CAM") expenses, insurance, utilities and taxes (should they apply). Base rent for the first
year shall be $11.00 per square foot based on 2,075 square feet. The second and third year
base rents shall escalate to $12.00 per square foot. The fourth year will escalate to $13.00
per square foot, and the fifth year to $14.00. This escalation was based upon a negotiated
amount in line with market rents. CAM, insurance and utilities are based on the City's pro
rata share. For the first year the estimated prorated monthly charges amount to $1.90 per
square foot for CAM, $.28 per square foot for insurance, and $2.13 per square foot for
utilities.
10. Second Reading of Ordinance No. 063, 2005, Authorizing a Deed of Easement for the
Pleasant Valley Pipeline.
In April of 2001, the City of Fort Collins purchased certain real property from the estate of
Robert Udall to be used as the Reservoir Ridge Natural Area. The City acquired the property
along with any existing easements of record. Prior to the City obtaining title to the property,
Robert Udall had granted an easement to Northern Colorado Water Conservancy District
(NCWCD) for the Pleasant Valley Pipeline, which is used by Fort Collins Utilities to convey
water. In March of 2005, NCWCD determined that the legal description used for the
original easement was incorrect (it referenced an incorrect Range), making the original
easement defective. Because the City is the current owner of record the City has been asked
to approve
a Deed of Easement correcting the legal description error. Once approved, NCWCD will
record the document and provide a copy for City records.
Ordinance No. 063, 2005, was unanimously adopted on First Reading on June 7, 2005.
11. Second Reading of OrdinanceNo.064.2005.Authorizingthe Dedication ofaParcel ofLand
and a Permanent Public Transportation Easement to the City of Loveland on Jointly Owned
City and City of Loveland Property at the Fort Collins -Loveland Municipal Aimort
The City of Loveland is seeking to construct a roundabout at the intersection of Crossroads
Boulevard and Rocky Mountain Avenue in order to facilitate airport area development and
improvements.
Staff has determined that cooperating with Loveland in completing the planned
improvements will be of general benefit to the Airport. In addition, due to Federal Aviation
Administration ("FAA") funding for the Airport, it is anticipated that the City would be
required to pay to the FAA any compensation required from Loveland for the conveyances.
Consequently, staff is recommending that no compensation be required in this instance.
Ordinance No. 064, 2005, was unanimously adopted on First Reading on June 7, 2005.
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12. Items Relating to the Kingdom Hall Annexation and Zonina.
A. Second Reading of Ordinance No. 065, 2005, Annexing Property Known as the
Kingdom Hall Annexation to the City of Fort Collins, Colorado.
B. Second Reading of Ordinance No. 066, 2005, Amending the Zoning Map of the City
of Fort Collins and Classifying for Zoning Purposes the Property Included in the
Kingdom Hall Annexation to the City of Fort Collins, Colorado.
This is a 100% voluntary annexation and zoning of a property approximately 3.87 acres in
size. The site is 2104 Kechter Road and located at the northeast corner of South Timberline
Road and Kechter Road. Contiguity with the existing municipal boundary is gained along
the entire west boundary which abuts Timberline Road the Willow Springs subdivision. The
requested zoning is U-E, Urban Estate. This zoning complies with the Structure Plan Map.
Ordinance Nos. 065 and 066, 2005, were unanimously adopted on First Reading on June 7,
2005.
13. Second Reading of Ordinance No. 067, 2005, Accepting the Abandoned Portion of State
Highway 68 (Harmony Road) from Mile Post 0.00 to Mile Post 4.468 as part of the City's
Street System.
The Colorado Department of Transportation (CDOT) and City of Fort Collins Transportation
Services have been discussing the transfer of ownership of Harmony Road from CDOT to
the City of Fort Collins for many years. This 4.5 mile section of road is developing into an
urban arterial. CDOT made proposals for transfer of ownership of Harmony Road in the
past, but the City resisted because of the additional costs involved.
In the most recent discussions CDOT offered funds in a one-time payment to the City to fund
upgrades and offset the cost of maintenance cost over the next 20 years. CDOT and the
City's Transportation staff worked together to develop estimates for the 20 year
maintenance. CDOT will retain maintenance responsibility for the portion of Highway 68
between the west frontage road and I-25, including the frontage road intersection. The City
will accept responsibility for the portion west of the frontage road. CDOT is offering a one-
time payment of $13,700,000 to the City to take ownership on this section of Harmony Road.
There is some urgency to this matter because part of these funds need to be committed by
CDOT within its current fiscal year (before July 31, 2005).
Ordinance No. 067, 2005, was unanimously adopted on First Reading on June 7, 2005.
14. Second Reading of Ordinance No. 070, 2005, Making Various Amendments to the City of
Fort Collins Land Use Code.
Staff has identified a variety of proposed changes, additions and clarifications in the Spring
biannual update of the Land Use Code. On May 19, 2005, the Planning and Zoning Board
considered the proposed changes and voted 6-0 to recommend approval of the proposed
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changes to City Council. The Board then voted 5-1 to recommend to Council that staff be
directed to reexamine the neighborhood compatibility criteria related to Small Scale
Reception Centers.
Ordinance No 070, 2005, was unanimously adopted on First Reading on June 7, 2005. The
Ordinance has been slightly amended since First Reading. A memo explaining the change
is attached.
15. Second Reading of Ordinance No. 071, 2005, Amending Chanter 2, Article 5 of the City
Code Pertaining to Administrative Organization.
This Ordinance, which was unanimously adopted on First Reading on June 7, 2005, makes
the necessary Code amendments involving the restructuring of Administrative Services and
Communication and Technology Services. These changes are recommended to ensure a
more consistent approach towards improving accountability and increasing efficiencies in
the services these two areas support.
16. First Reading of Ordinance No. 072, 2005, Authorizing the Lease of City -Owned Property
at 812 North Shields Street, Fort Collins. Colorado, for Up to Five Years.
The City purchased this parcel of land, including house and out buildings, as part of the
Operations Services Master Plan. Staff recommends leasing this site until the improvements
included in the Master Plan are constructed to discourage vandalism and to lower City costs
to maintain the site. The site is currently leased.
17. First Reading of Ordinance No. 073, 2005, Authorizing the Lease of City -Owned Property
at 4913 South College Avenue, Fort Collins, Colorado, for Up to Five Years.
This house is located on property owned by the City of Fort Collins. Until the land is
utilized, renting the house will generate revenue and will discourage vandalism. This action
will approve the leasing of the property for up to five years.
18. First Reading of Ordinance No. 074, 2005, Authorizing the Conveyance of Non-exclusive
Easements for the Construction of Home State Bank on the Northwest Comer of Raintree
Drive and Shields Street.
Home State Bank is requesting various easements from the City to facilitate construction of
a new bank which will be located on a portion of Tract "F", Raintree Planned Unit
Development at the northwest corner of Raintree Drive and Shields Street, adjacent to the
Fort Collins Senior Center.
In order to complete the project, Home State Bank is asking the City to grant several
easements on Senior Center property. Home State Bank will pay all costs associated with
the construction of the bank and upon completion of the construction project will restore the
easement areas to an equivalent or better condition as prior to construction.
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19. First Reading of Ordinance No. 075, 2005, Appropriating Unanticipated Grant Revenue in
the General Fund for the Operation of the Fort Collins Welcome Center.
The Colorado legislature created the Colorado Tourism Board (the "Board") and authorized
the Board to operate state welcome centers. The Board determined that the state welcome
center for Fort Collins would be more efficiently and effectively operated by the City of Fort
Collins. In August of 2000, the Colorado Tourism Office was created and was authorized
to operate such welcome centers.
Pursuant to Resolution 1999-097, the City contracted with Colorado State University for
visitor center space at the Environmental Learning Center/Visitors Center to the south of
Prospect Road, approximately one -quarter mile west of Interstate 25. The City, in its effort
to welcome visitors to Fort Collins through the activities of its convention and visitor
services contractor, the Fort Collins Convention and Visitors Bureau (the "CVB"), will use
the space for the Fort Collins welcome center. The CVB, in addition to promoting tourism
activity, will operate the welcome center pursuant to amendments to the City's agreement
with CVB, and consistent with the City's grant agreement with the State of Colorado.
20. Resolution 2005 -069 Approving Expenditures from the Art in Public Places Reserve Account
in the Cultural Services and Facilities Fund to Commission an Artist Team to Create Art and
Flood Alert Elements for Walls on the Fossil Creek Trail Project.
This Resolution approves expenditures of $16,340 for design, materials, installation and
contingency for a project with artist Mario Miguel Echevarria of Design Tria to create walls that
will serve as a visual warning system to identify the water levels of the adjacent creek and also
speak to the prehistoric history of that area.
21. Resolution 2005-070 Finding Substantial Compliance and Initiating Annexation Proceedinjs
for the State Hiehway 14 — East Frontage Road Annexation.
The State Highway 14 — East Frontage Road Annexation is 35.86 acres in size. The site is
located on the east side of the I-25 East Frontage Road approximately one -quarter mile south
of State Highway 14 (East Mulberry Street). Contiguity with the existing municipal boundary
is gained along the entire southern boundary which is shared with the north property line of the
Galatia Annexation (230 acres). The recommended zoning is L-M-N, Low Density Mixed -Use
Neighborhood.
The proposed Resolution states that it is the City's intent to annex this property and directs that
the published notice required by State law be given of the Council's hearing to consider the
needed annexation ordinance. The hearing will be held at the time of First Reading of the
annexation and zoning ordinances on August 16, 2005. Not less than 30 days prior, published
notice is required by State law.
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22. Resolution 2005-071 Finding Substantial Compliance and Initiating Annexation Proceedings
for the Waterdale Annexation.
The Waterdale Annexation is 38.69 acres in size. The site is also known as Sunflower
Manufactured Home Subdivision and is generally located south of East Mulberry Street
approximately one-half mile east of Interstate 25. Contiguity with the existing municipal
boundary is gained along the entire south and a portion of the west boundaries which abut the
State Highway 14 — East Frontage Road Annexation.
The proposed Resolution states that it is the City's intent to annex this property and directs that
the published notice required by State law be given of the Council's hearing to consider the
needed annexation ordinance. The hearing will be held at the time of First Reading of the
annexation and zoning ordinances on August 16, 2005. Not less than 30 days prior, published
notice is required by State law.
23. Resolution 2005-072 Authorizing a Revocable Permit to Northern Colorado Water Association,
for a Period of Up to Two Months on Meadow Springs Ranch for the Purpose of an
Environmental Study and Survey.
Northern Colorado Water Association ("NCWA") is planning to construct an additional
waterline from its storage tanks, located on a portion of Meadow Springs Ranch, to its
distribution system approximately eight miles to the south. NCWA is submitting a request for
an easement across a portion of the City -owned Meadow Springs Ranch. It is City policy to
require an applicant to perform an environmental audit on the City property that will be affected
by the proposed work. In order for NCWA to perform this audit, the City needs to grant a
revocable permit to NCWA allowing access to City land. This permit will only be in effect for
up to two months.
24. Resolution 2005-073 Reestablishing a Telephone Exchange Access Facility Charge and a
Wireless Communications Access Charge for the Larimer Emergency Telephone Authority
Effective January 1, 2006.
The Larimer Emergency Telephone Authority (LETA) was created in 1990 pursuant to C.R.S.
Section 29-11-101, et. seq., by an intergovernmental agreement between the City of Fort Collins
and nineteen other governmental entities in Larimer County.
The telephone exchange access facility charge of fifty cents ($.50) per month became effective
January 1, 1991, by approval of the Fort Collins City Council. This fee remained the same each
year by annual approval of the LETA Board, until 1998 when the LETA Board decreased the
fee by 10% to the current forty-five cents ($.45). The wireless communications access charge
was first established at forty-five cents ($.45) commencing on April 1, 1998.
The LETA Board has approved a telephone exchange access facility charge and a wireless
communications access charge effective January 1, 2006, each at the rate of forty-five cents
($.45) per month.
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These surcharges to telephone subscribers are necessary to continue to adequately fund the
Emergency 911 telephone service in the City of Fort Collins through 2006. By approving this
Resolution, the Council will be authorizing telephone and wireless telephone service providers
to collect the telephone exchange access facility charge and wireless communications access
charge.
25. Resolution 2005-075 Authorizing the Mayor to Execute a Restatement and Amendment to the
Intergovernmental Agreement with Colorado State University for the Transit Center located at
the Lory Student Center.
This Restatement and Amendment to the Intergovernmental Agreement represents the
respective rights and obligation of the City and the University concerning the development,
maintenance, operation, use, and the ultimate retirement of the transit center. The most
significant changes from the previous intergovernmental agreements are the University has
agreed to pay the operation and maintenance expenses for the transit center in exchange for
design improvements and collecting the revenue from the various parties occupying the facility.
The City has been requesting federal capital funds since 2000 to build the transit center. The
final federal allocation was authorized in 2005. The bidding for the indoor transit center facility
is scheduled for July 8, 2005 with construction beginning this fall. Construction is scheduled
for completion in July 2006.
26. Resolution 2005-076 Authorizing the City Manager to Enter Into a Grant Agreement with the
State Board of the Great Outdoor Colorado Trust Fund for Development of the Fossil Creek
Trail Underpass at State Highway 287.
The project will construct approximately one mile of new trail for the Fossil Creek Trail system.
It will provide for the crossing of Highway 287 (College Avenue) via an existing box culvert
and new concrete trail paving on both sides. This project will provide immediate connection
to the Mason Street Corridor trail project and the South College Bike Lanes project. Future
Fossil Creek Trail connections from the underpass west of College Avenue to Shields Street and
east of College Avenue to Fossil Creek Community Park and beyond are being planned.
The project has been coordinated with several local and state agencies. These agencies include;
Colorado Department of Transportation, City of Fort Collins Transportation Planning, Natural
Resources, Stormwater Utilities, and Fort Collins Loveland Water District.
The project will be completed and open to the public in 2006.
27. Routine Easements.
A. Deed of Easement Dedication from Rigden Farm, LLC, for a sanitary sewer, located on
East Drake Road. Monetary consideration: $10. (See Map #1).
B. Temporary Construction Easement from Rigden Farm, LLC, located on East Drake
Road. Monetary consideration:$10. (See Map #1).
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***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
8. Second Reading of Ordinance No. 061, 2005, Appropriating Unanticipated Revenue in the
Street Oversizing Fund and Authorizing the Transfer of Appropriations from the Street
Oversizing Fund to the Capital Project Fund - Trilby and Ziegler Road Improvements Project.
9. Second Reading of Ordinance No. 062, 2005, Approving the Terms of the City's Lease of
Building 15, Old Town Square, Fort Collins, Colorado.
10. Second Reading of Ordinance No. 063, 2005, Authorizing a Deed of Easement for the Pleasant
Valley Pipeline.
11. Second Reading of Ordinance No. 064.2005. Authorizing the Dedication of a Parcel of Land
and a Permanent Public Transportation Easement to the City of Loveland on Jointly Owned City
and City of Loveland Property at the Fort Collins -Loveland Municipal Airport.
12. A. Second Reading of Ordinance No. 065, 2005, Annexing Property Known as the
Kingdom Hall Annexation to the City of Fort Collins, Colorado.
B. Second Reading of Ordinance No. 066, 2005, Amending the Zoning Map of the City
of Fort Collins and Classifying for Zoning Purposes the Property Included in the
Kingdom Hall Annexation to the City of Fort Collins. Colorado.
13. Second Reading of Ordinance No. 067, 2005, Accepting the Abandoned Portion of State
Hi hway 68 (Harmony Road) from Mile Post 0.00 to Mile Post 4.468 as part of the City's Street
System.
14. Second Reading of Ordinance No. 070, 2005, Making Various Amendments to the City of Fort
Collins Land Use Code.
15. Second Reading of Ordinance No. 071, 2005, Amending Chapter 2, Article 5 of the Cites
Pertaining to Administrative Organization.
32. A. Second Reading of Ordinance No. 068, 2005, Annexing Property Known as the Sunrise
Ridge Annexation to the City of Fort Collins, Colorado.
B. Second Reading of Ordinance No. 069, 2005, Amending the Zoning Map of the City
ofFort Collins and Classifying for Zoning Purposes the Property Included in the Sunrise
Ridge Annexation to the City of Fort Collins, Colorado.
34. Second Reading of Ordinance No. 057, 2005, Authorizing the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary for the Construction of Public Improvements in
Connection with the Dry Creek Drainage Improvements Project - East Vine Diversion Channel.
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Ordinances on First Reading were read by title by City Clerk Krajicek.
16. First Reading of Ordinance No. 072, 2005, Authorizing the Lease of City -Owned Property at
812 North Shields Street, Fort Collins, Colorado, for Up to Five Years.
17. First Reading of Ordinance No. 073, 2005, Authorizing the Lease of City -Owned Property at
4913 South College Avenue, Fort Collins, Colorado, for Up to Five Years.
18. First Reading of Ordinance No. 074, 2005, Authorizing the Conveyance of Non-exclusive
Easements for the Construction of Home State Bank on the Northwest Corner of Raintree Drive
and Shields Street.
19. First Reading of Ordinance No. 075, 2005, Appropriating Unanticipated Grant Revenue in the
General Fund for the Operation of the Fort Collins Welcome Center.
31. First Reading of Ordinance No. 076, 2005 Amending Chanter 26, Article III, Division 4 of the
Code of the City of Fort Collins Relating to User Rates and Charges for Water.
33. First Reading of Ordinance No. 077, 2005. Authorizing the Sale of Citv-owned Prone
Consisting of a Portion of Block 33, Fort Collins, Colorado, to Penny Flats, LLC.
Councilmember Weitkunat made a motion, seconded by Councilmember Brown, to adopt and approve
all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas:
Councilmembers Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
Consent Calendar Follow-up
Councilmember Roy spoke regarding item #22 Resolution 2005-071 Finding Substantial Compliance
and Initiating Annexation Proceedings for the Waterdale Annexation. He noted that contiguity did not
exist at this point and asked staff to explain how proceedings could begin on the annexation. City
Attorney Roy stated if the first annexation proceeded to completion that contiguity would exist for the
second annexation. He stated the State law provided that contiguity could be established by the
annexation of one or more parcels in a series of annexations that could be completed and considered
simultaneously. He stated a similar process had also been followed on other occasions.
Councilmember Kastein stated he wanted a discussion about item 2.12.4 in item #14 when the pulled
Consent Calendar item was brought forward later in the meeting.
Councilmember Weitkunat commented regarding item # 19 First Reading of Ordinance No. 075, 2005,
Appropriating Unanticipated Grant Revenue in the General Fund for the Operation ofthe Fort Collins
Welcome Center.
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Staff Reports
City Manager Atteberry reported that the Shop Fort Collins First program won the Bronze Quill Award
from the Colorado Chapter of the International Association of Business Communicators and first place
in the `low budget, high impact" category. He also reported that the City's Affordable Housing
program received the prestigious 2005 Robert L. Woodson, Jr. Award.
Councilmember Reports
Councilmember Weitkunat reported on the Colorado Municipal League Conference in Vail and a
meeting that she and the Mayor had with the Poudre Fire Authority on the operation of PFA. She stated
PFA was concerned that illegal fireworks was a growing problem. She stated she had requested that
ideas be brought forward from the police and fire departments about ways to address that problem.
Ordinance No. 076, 2005,
Amending Chapter 26, Article III, Division 4 of the Code of the City of
Fort Collins Relating to User Rates and Charges for Water, Postponed Indefinitely
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
Although the Ordinance does not significantly impactprojected revenues in the Water Fund, the impact
on individual single family and duplex customers will vary according to their water use. The customer
impacts are illustrated in the "Single Family Rate Comparison" table below.
EXECUTIVE SUMMARY
At the May 25, 2005 work session, several Councilmembers requested an ordinance to revise the water
rates for single family and duplex customers. As requested, this Ordinance would eliminate the tiers
and return to a flat or uniform rate structure similar to that in place before the tiered structure was
implemented in January 2003.
IW. - "N11QU�, %
In response to discussion at the Council's May 10, 2005 work session, Michael B. Smith, Utilities
General Manager, provided to City Council a memo discussing the pros and cons ofseveral water rate
options. Upon receiving the memo, several Councilmembers voiced support at the May 25, 2005, work
session to make a change in water rates to be effective this summer. Staff was requested to prepare an
ordinance to return to a flat (uniform) rate structure, similar to the rate that was in place prior to
January 2003. The rate change is shown below:
Single Family Water Rates
Existing 4 -Tier Rate
Structure
Proposed Ordinance
Flat Rate
Base charge per month
$12.72
$12.72
0-7, 000 gallons
$1.781 per 1000 gal.
$ 2,155 per 1, 000 gal.
7,001-13, 000 gallons
$2.141 per 1000 gal.
$ 2.155 per 1, 000 gal.
13, 001-20, 000 gallons
$2.565 per 1000 gal.
$ 2.155 per 1, 000 gal.
Over 20, 000 gallons
$3.074 per 1000 gal
I $ 2.155 per 1, 000 gal.
July 5, 2005
*Note: This includes a six percent Payment -in -Lieu -of Taxes ("PILOT') that will continue to
be collected along with the revised rates set out in the Ordinance, in accordance with City
Charter and existing City Code provisions that remain unchanged
Although the Ordinance does not significantly impact projected revenues in the Water Fund, costs will
shift between customers. In general, the bills for customers using less than 20, 000 gallons per month
will increase and the bills for customers using more than 20, 000 gallons will decrease. The following
tables and graphs show the costs for a single-family customer:
Single Family Water Rate Comparison
Monthly
Water Use in
Gallons
Existing
4 -Tier Rate
Proposed
Ordinance
Flat Rate
Increase
(Decrease)
1, 000
$
16.28
$
17.03
$
0.75
3 000
$
18.06
$
19.19
$
1.12
4,000
$
19.84
$
21.34
$
1.50
5,000
$
21.63
$
23.50
$
1.87
6 000
1 $
23.41
$
25.65
$
2.24
7,000
$
25.19
$
27.81
$
2.62
8,000
$
27.33
$
29.96
$
2.63
9,000
$
29.47
$
32.12
$
2.65
10,000
$
31.61
$
34.27
$
2.66
15,000
$
43.16
$
45.05
$
1.88
20,000
$
55.99
$
55.82
$
0.17
25,000
$
71.36
$
66.60
$
4.76
30,000
$
86.73
$
77.37
$
9.36
40,000
$
117.47
$
98.92
$
18.55
50,000
$
148.21
$
120.47
$
27.74
75,000
$
225.06
$
174.35
$
50.71
100,000
$
301.91
$
228.22
$
73.69
150,000
$
455.61
1
335.97
$ 119.64
200,000
$
609.31
$
443.72
$ 165.59
181
July 5, 2005
Single Family Water Rate Comparison
$275
$250 - - -
$225 - -- —
E200-
c $175 - - -- - - - -- — —
a i
2 $150
a -
—
E- -, --,
0 °0 0 0 0 0 0 0 0 0 °o °o
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
N N N M M O O N 0 00 i�0 n n m
Gallons per Month
— Current 4 -Tier Rate +Proposed 2005 Flat Rate
Staff has identified the following pros and cons of adopting the proposed flat rate:
Pros:
• Perceived as more equitable (large lots versus small lots)
• Simple rate structure
• Greater revenue stability
Cons:
• Not perceived as a rigorous conservation rate
• Less likely to result in lower overall water consumption
• Federal permitting for the Halligan Project could be in jeopardy due to the
reduced emphasis on conservation indicated by the change back to a flat rate
structure"
City Manager Atteberry introduced the agenda item.
Brian Janonis, Utilities Services, stated staff would have a brief presentation on the agenda item.
Terry Bryant, Utilities Chief Financial Officer, stated at the May 10 Study Session the Council asked
staff to provide an analysis of several rate options and that at the May 25 Study Session the Council
requested that staff prepare an ordinance to return to the flat (uniform) residential rate. She presented
information comparing the flat rate with the existing four -tier rate structure for single-family residences.
She stated the rate change would not significantly impact the Water Fund revenue. She stated it would
shift costs for customers. She stated customers who used less than 20,000 gallons per month would see
182
July 5, 2005
an increase in their monthly bill and that customers who used more than 20,000 gallons per month
would see a decrease in their monthly bill.
Nancy York, 130 South Whitcomb, spoke in favor of retaining the four -tier rate structure. She stated
the majority of Fort Collins residents would see an increase in their water bill with a change to a flat fee.
She stated the four -tier rate system promoted water conservation and that conserving water could delay
the building of a dam and save taxpayer dollars.
Councilmember Manvel asked for clarification of the rate for the first 20,000 gallons used per month.
Bryant stated users would pay in accordance with the quantity of water used within each tier.
Councilmember Brown asked why the pros and cons analysis indicated that the four -tier rate structure
promoted "strong" conservation measures and the flat rate structure without the base promoted "very
strong" conservation measures. Janonis stated the flat rate structure without the minimum base charge
would mean that everyone would be billed at a higher rate for whatever water was used.
Councilmember Brown asked if water conservation was the only criteria that this rate structure would
best promote that conservation. Janonis replied in the affirmative.
Mayor Hutchinson asked how much water savings could be attributed to the tiered water rates. Dennis
Bode, Water Resources and Treatment Manager, stated there were many variables in the reduction of
water use and that staff did not have a precise number. He stated the reductions that had been
experienced were the result of rainfall in the past few years, continued drought awareness, and the rate
structure. He stated all of the factors contributed to the reduced water use.
Mayor Hutchinson asked if staff had a "best guess" on the savings due to the tiered water rates. Bode
stated he estimated that one-third of the water savings was due to weather, one-third due to drought
awareness and conservation efforts, and one-third due to the rate structure.
Mayor Hutchinson asked if the percentage of water saved due to the tiered water rates was below 50%.
Bode replied in the affirmative.
Mayor Hutchinson asked how effective the conservation education program had been relating to per
capita water conservation. Bode stated reductions of 20-25% had been seen overall. He stated prior
to 2002 there were reductions of about 10% related more directly to conservation and education efforts.
Mayor Hutchinson asked if those figures were better than most cities. Bode stated it was in line with
other cities. He noted that the metering program had a lot to do with conservation efforts.
Mayor Hutchinson asked if the overall reduction in the amount of water used was about 20-25%
because of the effectiveness of conservation efforts. Bode stated in 1990 roughly 235 gallons were used
per person per day and that prior to 2002 the figure was 195 gallons per person per day. He stated this
reduction was due to conservation efforts.
Mayor Hutchinson noted that those reductions took place before tiered water rates were put in place.
183
July 5, 2005
Councilmember Ohlson asked if the deadline had passed for 100% metering. He noted that metering
had a large impact on conservation. Bode stated State legislation was passed in 1990 to require
metering and that the City began a program shortly thereafter. He stated the City completed metering
in 2003.
Councilmember Ohlson asked when the State's deadline was for 100% metering. Bode stated the
deadline was 2009.
Councilmember Kastein asked about the cash in -lieu -of water rights program. Bode stated developers
had the choice of providing water rights or a cash fee in -lieu -of water rights.
Councilmember Kastein asked if the cash fee was tied to the size of the lot. Bode replied in the
affirmative.
Councilmember Kastein asked if it could be argued that a large lot water user was paying ahead of time
for the capacity that would be needed over time. Bode replied in the affirmative.
Councilmember Kastein asked if there were additional costs to make changes to the billing system if
the rate structure was changed. Janonis stated changing to a flat rate structure would not result in much
additional cost. He stated the change could be implemented quickly after notification to customers and
public announcements.
Councilmember Kastein stated he understood that the tiered rate structure was favored by the federal
government in evaluating future projects such as the Halligan Reservoir expansion. He asked how
important it was to have a tiered rate structure and whether a flat rate that could be adjusted in times of
drought would be viewed favorably by the federal government. Janonis stated the Army Corps of
Engineers did not specify what kind of rate structure the municipality should have and did value water
conservation measures highly when considering the purpose and need for a project. He stated tiered
rates or a "conservation rate" were a key element in federal review of a project. He stated if the City
reverted to a flat rate the federal government would want to know how the City would offset the loss
of conservation attributed to the tiered rate.
Councilmember Kastein asked if a supply sensitive flat rate cost structure could be considered to be a
conservation measure. Janonis stated a flat rate was generally not considered to be a conservation
Councilmember Kastein asked if a tiered rate with marginally different rates would be considered to be
a conservation measure. Janonis stated one suggestion was made to use a tiered rate that would vary
the rate of tier increases based on the water supply i.e. in drought times there would be a higher tiered
rate.
Councilmember Kastein asked why the "true flat rate" was not favored by staff. Bryant stated 95% of
the costs were fixed costs and that plants and distribution system were built to serve the customer for
the maximum amount that the customer may or may not use. He stated the fixed costs must be covered
with a fixed rate and per gallon usage rate.
July 5, 2005
Councilmember Kastein asked if adjusting the rates within the tiered rate structure could be
implemented as quickly as the flat rate. Janonis stated the change could be implemented quickly
provided there were the same number of tiers. He stated notification would need to be sent out to
customers before implementation.
Councilmember Brown asked if there was a formula or a required minimum cost per gallon that the
federal government considered to be a "tiered rate." Janonis stated there was no specific formula and
that the federal government would be more interested in the conservation "message" sent to customers.
Councilmember Brown asked for clarification of one of the cons of the flat uniform rate structure. The
option without the base charge contributes to a higher perception of inequity for large lots versus small
lots and the shift of more costs from low water users to high water users.
Councilmember Manvel stated a very high rate would be needed if there was no base charge and that
large water users would have much larger bills, while small water users would have much lower bills.
He stated those with large lots would see such a rate structure as very unfair.
Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to direct staff to
complete an evaluation of a reduced tiered rate for this season and investigate a form of water budgeting
for the 2006 water cycle.
Mayor Hutchinson asked if the intent was to bring forward the other two systems in addition to the flat
rate system.
Councilmember Kastein stated he did not favor consideration of a flat rate system because he was
concerned about the impact on the Halligan Reservoir project. He stated the tiered rates were valued
as a conservation measure and could be adjusted depending on water supply conditions. He stated an
adjustment could be made to the tiered rates this year because of the improved water supply. He stated
he would like to see more work on the water budgeting approach.
City Attorney Roy asked how many options staff was to bring back for consideration and if the intent
was to postpone consideration of this ordinance until additional staff work could be completed as
directed.
Mayor Hutchinson stated it was his understanding that the motion was to bring back two other options
— a reduced tier option and a water budgeting option.
Councilmember Weitkunat suggested a vote on the motion.
City Attorney Roy stated it was unclear whether postponement or adoption of the ordinance was part
of the motion.
Councilmember Kastein stated in the short term he wanted to adjust the tiered water rates for this season
and evaluate a water budgeting rate structure for the long term. He stated he would not support flat rates
at this time.
185
July 5, 2005
THE MOTION WAS WITHDRAWN
Councilmember Kastein made a motion, seconded by Councilmember Roy, to postpone Ordinance No.
075, 2005 indefinitely.
Councilmember Ohlson stated the flat rate structure had been discussed for months and asked why there
was no longer support for such a rate structure. He asked if the issue was the Halligan Reservoir project.
Councilmember Manvel stated he had not supported changing from the tiered rate structure. He stated
he had been talking to people about water rates because he was committed to learning about issues and
possibilities. He stated the two possibilities in this situation appeared to be the flat rate structure and
the tiered rate structure. He stated there appeared to be other possibilities, such as a "true flat rate"
(without the per lot base charge of $13.00 per month) that would result in a high charge per 1,000
gallons. He stated water budgeting was a complicated option that he did not want to consider. He
showed a graph that he had prepared showing the price per gallon in the flat rate and tiered rate systems.
He stated this graph may convince even large lot owners that the tiered system was a fair system
because the rate per gallon was "flat" above 20,000 gallons of use because the initial fee was amortized
over the extra gallons. He stated he did not believe that the current tiered rate needed to be fixed.
Mayor Hutchinson stated the decision to postpone required some discussion. He stated his position on
rates during the election was focused on the unfairness of the tiered rates for people who had larger lots
that contribute to the quality of life in Fort Collins. He stated he was interested in devising a system that
would be more fair. He stated he would be interested in looking at the water budgeting system again
because it would be based on a baseline of winter water consumption and lot size. He stated he would
support postponement of this ordinance to look at options such as water budgeting, which was more fair
and would be a water conservation program. He stated his concern was a fairer rate structure that would
promote water conservation.
Councilmember Roy stated the water rate issue linked to the issue of occupancy discussed earlier in the
meeting. He stated the number of people living in the home impacted winter water consumption.
Councilmember Ohlson stated he had been ready to support the flat rate although he felt that the tiered
rates were the best solution. He stated he wanted a "true flat rate" because he did not believe that
everyone had the same $12.82 fixed cost. He stated he did not favor a flat fee monthly fee charged to
every home regardless of the amount of water used, the size of the lot and location. He stated the flat
monthly fee "skewed" every system and that he would prefer eliminating that. He stated he would like
to look at modifying the flat monthly fee within the tiered system to make it more reasonable. He stated
water budgeting was "fatally flawed" and that this would generate a great deal of debate because it
would punish those who conserved water and reward those who "lived large" and wasted water. He
stated water budgeting was not fair, equitable, just or a water conservation program. He stated he was
interested in Councilmember Kastein's suggestion to modify the tiered rate system depending on water
supply conditions.
The vote on the motion to postpone was as follows: Yeas: Councilmembers Brown, Hutchinson,
Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
I:.
July 5, 2005
Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to direct staffto bring
back to Council in the near future an adjustment to the current rates within the tiered rate water billing
structure.
Mayor Hutchinson asked if the intent was to look at water budgeting.
Councilmember Kastein stated he would have a second motion on water budgeting.
Councilmember Ohlson stated he was unclear about the meaning of the motion because it was revenue
neutral. He asked if those who conserved, small users and the economically disadvantaged would be
paying more and the large users and wasters would be paying less. He asked if there would be an
adjustment to the base rate. He stated under the proposal set forth in the motion the majority of Fort
Collins residents would be paying more on their water bills and a smaller number would be paying less.
Councilmember Kastein stated under his proposal large water users would pay less and small users and
a majority of residents would see an increase. He stated under the flat rate structure the small user
would see a $1-2 increase per month and the large water users would see a $0-20 per month increase.
He stated not all large water users were "economically advantaged." He stated it was a "fatal flaw" in
the thinking about tiered rates that because you had a large yard that you were "independently wealthy."
He stated the tiered rate structure was a conservation measure but that it was unfair to those with larger
lots. He stated the up front cash in -lieu -of water rights fee paid up front was more for larger lots and
that this was the right mechanism for charging people who had larger lots for the water they would use
in the future. He stated large lots were now being discouraged in Fort Collins and that water was
actually being "wasted" because of that. He stated a large lot user in winter months used about the same
amount of water as a small user. He stated there were now five lots per acre that for eight months each
year used more water than three lots used. He stated 30% more water was being used with the higher
density system set out in City Plan than was being used under lower density before City Plan. He stated
the large lots saved the City from having to expand its water capacity earlier. He stated the tiered rate
system was unfair.
Councilmember Roy stated in 2000 residents used 31,594 acre-feet of water and that in 2004 that figure
fell to 24,542 acre-feet. He stated this was enough water to serve over 28,000 people without having
to build additional storage. He stated the City had given a signal to the federal government that the City
was serious about water conservation through the tiered water rates. He stated a reduction in water
consumption for a growing community was an "incredible achievement." He stated the tiered water
rates had sent a "pricing signal' that was important in ensuring the future success of the Halligan
Reservoir. He stated there were 200,892 bills sent out in Tier 1 and 341,555 total bills sent.
Mayor Hutchinson stated the issue on the table was giving direction to staff to bring back information
on the tiered rates. He stated debate would be appropriate when the issue was brought back to the
Council.
Councilmember Manvel asked for confirmation that the motion would direct the staff to bring back
something with adjusted tiered rates. He stated it appeared that the Council wanted to see work done
on "less progressive tiered rates." He stated the motion needed to be made clear with respect to less
escalation of rates as consumption increased.
[)E A
July 5, 2005
City Manager Atteberry stated the staff work could not be completed until September and that nothing
could be delivered by August. He stated this would allow time for a more thorough and informed
discussion and review of the options. He stated it was helpful to hear the clarification regarding "less
progressive tiered rates."
Councilmember Brown stated he had questions about what time of the year adjustments of rates should
be discussed. He asked if staff recommendations would be based on snow pack, growth, storage
capacity, or last year's water use.
Mayor Hutchinson stated staff could come back with adjustments and the current tiered structure as
appropriate during a drought year.
Councilmember Ohlson suggested asking staffto look at adjusting the flat rate as well as the tiered rates.
He stated he would like to see staff justify the monthly base charge with the tiered rates.
Councilmember Kastein stated he would accept having staff look at the monthly base charge.
Mayor Hutchinson asked if that needed to be part of the motion.
Councilmember Kastein stated if the work could not be done this season, this changed things. Janonis
stated implementation of the rate changes could be done quickly but that the rate analysis work would
take some time.
Mayor Hutchinson stated it did not seem to be possible to accomplish a change in a few weeks.
Councilmember Kastein stated he would withdraw the motion for the short term change.
Councilmember Weitkunat stated she saw no point in taking the action if it could not be implemented
in time to make a correction.
Mayor Hutchinson stated he believed that there would still be value in looking at adjustments to the
system even if the changes could not be implemented for this season.
Councilmember Kastein stated he would support directing staff to bring back for discussion on a yearly
basis beginning in 2006 adjustments to tiered rates based on established criteria.
(Secretary's Note: The Council took a recess at this point.)
Councilmember Kastein stated the motion was to ask staff to evaluate the rates within the tiered
structure and to bring back to Council a proposal after due diligence.
Councilmember Roy stated his understanding was that staff would look at base rates and tiered rates.
City Manager Atteberry stated the base rate within the tier was what was being discussed. He stated
he understood that there was interest in looking at a modified tier and also looking at the base rate within
the tier.
IM
July 5, 2005
Mayor Hutchinson stated this was his understanding of the discussion. He stated the term "base rate'
could be a misnomer. He stated the Council wanted to understand the rationale for that base rate. He
suggested that rather than "base rate' it could be called an "administrative billing fee' or "connection
fee' and a cost of doing business. He asked if there was consensus on the direction regarding "less
progressive tiered rates."
Councilmember Kastein stated his intent was that there be less variation between tiers.
Councilmember Manvel stated Councilmember Kastein was interested in less progressive tiers and that
Councilmember Ohlson was interested in a smaller base.
Councilmember Ohlson stated he would prefer the current system, except for the set monthly fee. He
stated he would support the motion.
Mayor Hutchinson supported the motion.
Councilmember Manvel stated the system may need to have some sort of formula or factors to
determine the level of rates. He supported having the staff look at that issue.
The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel,
Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
Items Relating to the Sunrise Ridge Annexation and Zoning. Adopted on First Readine
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
A. Second Reading of Ordinance No. 068, 2005, Annexing Property Known as the Sunrise Ridge
Annexation to the City of Fort Collins, Colorado.
B. Second Reading of Ordinance No. 069, 2005, Amending the Zoning Map of the City of Fort
Collins and Classing for Zoning Purposes the Property Included in the Sunrise Ridge
Annexation to the City of Fort Collins, Colorado.
This is a 100% voluntary annexation and zoning of a property approximately 10.34 acres in size. The
site is 5101 South Strauss Cabin Road located approximately one-half mile south of East Harmony
Road on the west side of Strauss Cabin Road. Contiguity with the existing municipal boundary is
gained along the entire west boundary which is shared with the east property line of the Willow Brook
Subdivision (Observatory Village). Contiguity is also gained along the entire northern boundary which
is shared with the south property line of Brookfield Subdivision (Morningside Townhomes). Ordinance
Nos. 068 and 069, 2005, were unanimously adopted on First Reading on June 7, 2005.
(Councilmember Manvel abstained from voting on Ordinance No. 69, 2005) "
July 5, 2005
City Manager Atteberry stated staff was available to answer any questions.
Councilmember Weitkunat made a motion, seconded by Councilmember Manvel, to adopt Ordinance
No. 068, 2005 on Second Reading. The vote on the motion was as follows: Yeas: Councilmembers
Brown, Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None.
Councilmember Weitkunat made a motion, seconded by Councilmember Manvel, to adopt Ordinance
No. 069, 2005 on Second Reading. The vote on the motion was as follows: Yeas: Councilmembers
Brown, Hutchinson, Kastein, Marvel, Ohlson, Roy and Weitkunat. Nays: None,
THE MOTION CARRIED
Ordinance No. 077, 2005,
Authorizing the Sale of City -owned Property Consisting of a Portion of
Block 33, Fort Collins, Colorado, to Penny Flats, LLC, Adopted on First Reading
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
Under the proposed sales agreement, the City would receive, over the life of the agreement, the
appraised value of the property, $1,624,000, plus interest at seven percent per year on any unpaid
portion. Additional positive financial impacts for the City include sales and use tax on construction
materials, associated user fees, and impact fees. (See Attachment 2 for a f nancial impact summary.)
EXECUTIVE SUMMARY
In July 2004, the City Council adopted Resolution 2004-081 setting out a process for selling portions
ofBlock 33 to a private developer. Staff entered into an exclusive negotiating agreement with Coburn
Development after receiving eight proposals and interviewing four teams. Coburn has complied with
all provisions of the agreement, and has decided to proceed with development of the property.
Coburn has named the project Penny Flats. It will have approximately 150 dwelling units in a mixed
use project with approximately 30, 000 square feet of commercial space. Parking would be provided
on site, in a combination of below -ground and at -grade spaces.
The sale would be accomplished in phases, with Coburn purchasing property for each phase prior to
commencement of construction. The City would grant Coburn options on future phases, with interest
on the unpurchased portions accruing to the City at seven percent. They would receive easement(s) on
the City land for construction easements.
The City would retain ownership of the Trolley Car Barn and associated parking area.
190
July 5, 2005
BACKGROUND
Block 33 has been acquired over the years by the City of Fort Collins, originally with an eye toward
pubic uses. Options included a new community center, a new library, a new performing arts center, or
a parking garage.
All the potential public uses, with the exception of a parking garage, have been fulfilled on other sites.
Staff has concluded that a parking garage on Block 33 would not be consistent with the Civic Center
Plan.
In 1997, in conjunction with the City Plan process, a new Civic Center Plan was also adopted. It called
for residential development of the block That land use goal was reinforced with the Downtown
Strategic Plan a few years later.
In 2004, the Council reviewed several options for disposing of the property, and decided to place a
strong emphasis on residential development that complied with the Civic Center Plan, rather than
simply trying to maximize return on the sale. Therefore, the staff issued an RFP that invited potential
developers to assess the market for residential development, and to propose a project that would meet
the market.
The current proposal is a result of a several -month -long process. The developer and staff are
persuaded that a healthy market for downtown living exists in Fort Collins. Coburn Development has
completed conceptual designs for theproject, performed a market analysis, completed an environmental
assessment, and made an offer to purchase.
An important component of the Civic Center Plan is a pedestrian spine, running north -south through
Block 33, and the public blocks to the south. The spine is the central organizing element, and we will
seek financial assurances in the agreement from Coburn that it will be built.
The staff and Coburn have coordinated their planning carefully with the Downtown Development
Authority. DDA may choose to participate in project financing in order to achieve a higher level of
materials and public improvements.
Coburn proposes to enter into a purchase agreement with the City as soon as reasonably feasible after
Council approval, and to prepare a full development application for City review. The development
review process willfollow all City rules and regulations. The timetable calls for construction to begin
in August 2006. Future phases would occur through 2009.
Staffproposes to include in the agreement, a requirement that the entire site be developed within a
certain time frame. If it is not, the option on the property would expire, or Coburn would be required
to propose an extension.
Sale of the property would be tied to a requirement that it be developed as proposed. Coburnwould
not have the ability to purchase the site, and remarket it to a third party. Nor would Coburn be
permitted to purchase the property, and build something entirely different, without renegotiation with
and approval by the City.
191
July 5, 2005
The benefits to the City are the same as those outlined in the original report to the Council last year.
Briefly, they include:
• Theproperty would be developed consistent with Council-adoptedmasterplans,
This is an important "transition site" between Martinez Park on the north, and
the pubic office buildings to the south, and includes portions ofthe Civic Center
Spine.
• The development will contribute to the resident and customer base downtown,
strengthening neighborhoods and retail.
• The property would return to the tax rolls.
• The project is infcll, making use of existing infrastructure.
• The City will receive full appraised value, and revenues from other fees and
taxes.
Staff recommends approval of the Ordinance and believes that the proposal fully complies with the
direction given by City Council last year. The proposed use of the property promises to achieve
important City goals with minimal risk to the public. At the same time, itprovides experienced private
sector capability, market assessment, and assumption of risk. Council adoption of the Ordinance will
permit the City Manager to negotiate an agreement in substantial compliance with the terms described
in the AIS "
City Manager Atteberry introduced the agenda item and stated this was a "fantastic opportunity" for the
downtown area.
Greg Byrne, CPES Director, presented visual information regarding the site, its surroundings and the
trolley car barn on the property. He stated the proposal was to dispose of three-quarters of the block and
to retain the trolley car barn and its associated parking. He stated a Council Resolution adopted in July
of 2004 directed staff to issue a Request for Proposals. He stated several development companies were
interviewed and that Coburn Development of Boulder was selected. He stated Coburn had done a
conceptual design and a market study. He stated two neighborhood meetings were held and that an
appraisal was commissioned. He stated initial negotiations for sale of the property had been conducted.
He stated if Council acted favorably on this agenda item that the next steps would be a sale agreement
to be completed after negotiations, full development review of the project, and phased sale of the
property. He stated the project would be built in five phases and that the "take down" of the property
would be in three one -quarter block purchases. He stated the timing was proposed and that staff wanted
the flexibility to work with the developer and respond to market conditions as the project unfolded. He
stated a financial summary had been presented to Council and that the appraised value and sale price
of the property was $1.624 million. He stated there would be an interest rate carry that would accrue
to the City and that the negotiated rate was 7%. He stated there were additional secondary financial
impacts to the City that were detailed in information presented to the Council. He stated Coburn would
be encouraging the Downtown Development Authority to participate financially in the project. He
stated John Koval, Vice -President of Coburn Development, and his team were available to answer
questions.
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Councilmember Ohlson asked who paid for the appraisal and whether the appraiser was an independent
neutral party. Helen Matson, Real Estate Services Manager, stated the appraiser was hired from a list
of approved appraisers developed by the City. She stated the City paid for the appraisal and that the
appraisal was Bonnie Rohrick from Denver.
Councilmember Ohlson asked if the 7% interest rate was comparable to "real world" interest rates.
Byrne replied in the affirmative. He stated the negotiated rate was expected to accelerate the "take
down" of the property. He stated if the City took full payment for the property up front, a 5% return
was anticipated. He stated the City would actually get 7% on the unpurchased portions.
Councilmember Ohlson noted that options for the property had included a new library, community
center, performing arts center or parking garage. He asked for confirmation that the new community
center would now be the new Northside Center, that a new library site had been tentatively identified,
and that a site had been acquired for the performing arts center. Byme replied in the affirmative.
Councilmember Ohlson asked if there were other site options for a new parking garage. Byrne stated
there were no immediate options. He stated Real Estate Services would use the revenue from the sale
of this property to secure another site.
Councilmember Ohlson asked if another site might be more appropriate than this site. Byrne replied
in the affirmative and stated this site was not appropriate for a parking garage.
Councilmember Ohlson asked why the project was named Penny Flats. John Koval, Vice -President of
Coburn Development, stated the name grew from discussion that focused on the railroad and kids in the
past flattening pennies on the railroad tracks. He stated the project would also develop "flats."
Councilmember Ohlson stated the agenda material indicated that: "An important component of the Civic
Center plan is a pedestrian spine running north -south through Block 33 and the public blocks to the
south. The spine is a central organizing element, and we will seek financial assurances in the agreement
from Coburn that it will be built." He asked why the City would "seek" financial assurances rather than
"require" financial assurances. Byrne stated the City would "require" such assurances.
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adopt Ordinance No. 077,
2005 on First Reading.
Councilmember Weitkunat stated this in -fill projectwould help the City accomplish its residential goals
in the downtown and return property back to the tax rolls. She stated the City would receive the full
appraised value and that the City had everything to gain. She stated she would support the motion.
The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel,
Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
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Ordinance No. 057, 2005,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for
the Construction of Public Improvements in Connection with the Dry Creek Drainage
Improvements Project - East Vine Diversion Channel. Adopted on Second Reading
The following is staff's memorandum on this item.
"EXECUTIVE SUMMARY
The design portion of the Dry Creek Drainage Improvements Project ("Project') began in 2003. The
construction of the Project began in April 2005 with completion scheduled for 2006 The total project
involves a combination ofsub projects in the upper, middle and lower basins ofDry Creek with the goal
of reducing the likelihood of flooding in Fort Collins and Larimer County.
The approval of this Ordinance, which was adopted 4-2 (Nays: Councilmembers Ohlson and Roy) on
First Reading on May 17, 2005, does not automatically result in the filing of a petition in eminent
domain; it simply allows staff to use the process ifgood faith negotiations fail to result in an agreement
between the City and affected property owners. Staff is hopeful that all acquisitions will be
accomplished by agreement. "
City Manager Atteberry introduced the agenda item and stated staff would be available to answer
questions.
Councilmember Kastein asked for information on the amount of property being taken and the amount
of property remaining.
Dean Saye, Utilities Project Manager, presented visual information regarding the Weiss property and
the slightly more than one -acre easement sought by the City contiguous to the north and west
boundaries of the property.
Councilmember Kastein asked how much property would remain. Helen Matson, Real Estate Services
Manager, stated 89 acres would remain after City acquisition of the easement or a fee simple purchase
of the property needed by the City.
Councilmember Kastein asked if irrigation issues resulting from the diversion had been worked out.
Dan Matson, Utilities Project Manager, stated staff had met with the property owner about the design.
He stated the property owner was open to creating a ditch that would handle irrigation in the same
manner. He stated there were no further irrigation issues. Helen Matson stated the City would
reimburse the property owner for any cost to ensure that the irrigation worked the way it did in the
current manner.
Councilmember Kastein stated there was information in the newspaper that this property was bisected
by the City project and that this was not true. He stated there would be about one acre used for the
City's project and that 89 acres would remain for the property owner. Helen Matson stated this
statement was correct.
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Councilmember Kastein made a motion, seconded by Councilmember Weitkunat, to adopt Ordinance
No. 057, 2005 on Second Reading.
Councilmember Ohlson stated he voted against this on First Reading because he wanted the City
organization to spend more time with the Weiss family to answer their concerns. He stated appreciated
the additional staff effort that had gone into working with the Weiss family on those concerns. He stated
he would support the Ordinance on Second Reading.
Mayor Hutchinson stated this was an example of a positive outcome from a full and open exchange.
The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel,
Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
Ordinance No. 070, 2005,
Making Various Amendments to the
City of Fort Collins Land Use Code, Adopted on Second Reading
The following is staff s memorandum on this item.
"EXECUTIVE SUMMARY
Staff has identified a variety of proposed changes, additions and clarifications in the Spring biannual
update of the Land Use Code. On May 19, 2005, the Planning and Zoning Board considered the
proposed changes and voted 6-0 to recommend approval of the proposed changes to City Council. The
Board then voted 5-1 to recommend to Council that staff be directed to reexamine the neighborhood
compatibility criteria related to Small Scale Reception Centers.
Ordinance No 070, 2005, was unanimously adopted on First Reading on June 7, 2005. The Ordinance
has been slightly amended since First Reading. A memo explaining the change is attached."
Councilmember Kastein stated he had a question from a citizen regarding language in 2.12.4 relating
to whether a property in the County that was not legal pursuant to County regulations was "illegal' or
"nonconforming."
Paul Eckman, Deputy City Attorney, stated there was a difference between a nonconforming use and
an illegal use. He stated a nonconforming use was a "legal nonconforming" use that was legal in the
County and not legal in the City and would be "grandfathered" upon annexation because it was legal
in the County. He stated an illegal use was one that was not legal in the County and would therefore
be illegal in the City upon annexation.
Councilmember Kastein asked if when a use was legal in the County and not legal in the City, it became
legal in the City upon annexation because it was grandfathered. Eckman stated it would be a legal
nonconforming use in the City.
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Councilmember Kastein asked if the legal nonconforming use would exist in perpetuity. Eckman stated
it could expire upon abandonment for 12 months. He stated the City Code limited the amount of
enlargement that could be accomplished with regard to a legal nonconforming use. He stated the legal
nonconforming use could theoretically exist for a very long time.
Councilmember Kastein asked if it would continue if the property changed hands. Eckman replied in
the affirmative.
Councilmember Kastein asked if a legal nonconforming use in the County would need to be brought
into conformance within a certain period of time after annexation. Eckman stated it would remain a
legal nonconforming use upon annexation to the City that would have the right to continue to exist until
abandonment.
Councilmember Kastein asked if this situation was addressed in this section or elsewhere. CityAttomey
Roy stated it was addressed elsewhere in the Code.
Councilmember Kastein requested that staff provide him with the Code Section that addressed this
situation. City Attorney Roy stated staff would provide that information as requested.
Councilmember Kastein asked why there was a differentiation between a voluntary and enclave
annexation. Ted Shepard, City Planner, stated multi -parcel enclave annexations presented a different
set of challenges and that single parcels coming into the City based on contiguity were easier to address.
He stated there had been zoning issues in the County resulting in the County encouraging annexation
to remove the problem from County jurisdiction. He stated the City Code prohibited the annexation of
single parcels that were not part of an enclave that contained an illegal land use.
Councilmember Kastein asked if the section referring to illegal nonconforming uses in the County also
provided a differentiation between enclaves and voluntary annexations. City Attorney Roy stated it did
not and that the basic distinction was between legal nonconforming uses and illegal nonconforming
uses. He stated the City did not want an illegal use on an individual parcel to interfere with the City's
ability to annex an enclave.
Councilmember Roy made a motion, seconded by Councilmember Kastein, to adopt Ordinance No.
070, 2005 on Second Reading.
Councilmember Kastein stated there were many questions about these issues in the enclave area and that
he appreciated the opportunity to pursue those questions.
The vote on the motion was as follows: Yeas Councilmembers Brown, Hutchinson, Kastein, Manvel,
Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
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July 5, 2005
Resolution 2005-072,
Authorizing a Revocable Permit to Northern Colorado Water
Association, for a Period of Up to Two Months on
Meadow Springs Ranch for the Purpose of an Environmental Study and Survey, Adopted
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
Northern Colorado Water Association will pay all costs associated with its activities.
EXECUTIVE SUMMARY
Northern Colorado Water Association ("NCWA') is planning to construct an additional waterlinefrom
its storage tanks, located on a portion of Meadow Springs Ranch, to its distribution system
approximately eight miles to the south. NCWA is submitting a request for an easement across a portion
of the City -owned Meadow Springs Ranch. It is City policy to require an applicant to perform an
environmental audit on the City property that will be affected by the proposed work. In order for
NCWA to perform this audit, the City needs to grant a revocable permit to NCWA allowing access to
City land. This permit will only be in effect for up to two months."
Councilmember Ohlson commented that typically entities usually wanted to cross City property rather
than privately owned property with easements. He stated he objected slightly to the following language
in the agenda material: "The Northern Colorado Water Association is planning to construct an additional
waterline from the storage tanks located on a portion of Meadow Springs Ranch to its distribution
system." He stated this language implies automatic City approval. He stated he would prefer to see
language that such an entity "has requested" an easement. He stated he requested an additional map
because the map in the agenda packet was not clear. He asked for clarification about the proposed route
as shown on the additional map. City Manager Atteberry stated the additional maps provided to the
Council were a vicinity map and map showing the area of focus.
Councilmember Ohlson stated there were questions in the scientific community about heavy metals used
in the treatment process that could eventually mean that the federal government will ban the type of
process conducted by the City at Meadow Springs. He stated the City should be "careful" about the
approval of easements to minimize impacts. He stated he would appreciate more information in
Council's material about such easements and that he would like to see alternative routes proposed
besides the route across City -owned property. He stated he would like Council to see an informational
map of the Meadow Springs Ranch showing what existed at the time it was purchased and what
easements and utility lines exist now. He stated the City should not "automatically say yes" to
easements and that the Council should see more information on such easements.
Mayor Hutchinson stated the previous Council did some extensive work on easements and asked if staff
believed that the easement process was stringent enough to be in the best interests of the City. Helen
Matson, Real Estate Services Manager, stated Natural Resources had a strict easement policy and that
there was no policy for general City easements. She stated a procedure was in place for easements for
Meadow Springs Ranch i.e. there were requirements for an environmental audit, approval by the Water
Board was required, and a presentation to the Natural Resources Advisory Board was required. She
stated the policy worked well for natural areas easements and the Meadow Springs Ranch.
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Councilmember Ohlson stated the Natural Resources Advisory Board recommended that the City
develop those policies and that policies had only been developed for natural areas. He stated he would
like to see a general easement policy in the future. City Manager Atteberry stated he would bring back
a one -page summary to the Council. Steve Comstock, Utilities, stated there had been about 12
easements placed on Meadow Springs Ranch since he started handling easements and that some of those
were easements granted to entities providing service to the City.
Councilmember Roy thanked staff for the map showing the relationship of the easement to endangered
species.
Councilmember Roy made a motion, seconded by Councilmember Brown, to adopt Resolution 2005-
072.
Councilmember Ohlson thanked the staff who worked on this issue. He stated he wanted to see
continued progress toward a "holistic view" of the easements granted on Meadow Springs Ranch. He
stated Utilities had done of good job of stewardship of the property. He stated he would like the City
to see a variety of routes that were not necessarily the "easiest" routes but were the least damaging
routes. Comstock stated there were initially three routes for this easement and that information could
be provided to Council on the other two routes.
The vote on the motion was as follows: Yeas: Councilmembers Brown, Hutchinson, Kastein, Manvel,
Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
Other Business
Councilmember Brown stated he would have a public meeting on July 11 at the new Fire Station
regarding the airport expansion.
Executive Session Authorized
Councilmember Weitkunat made a motion, seconded by Councilmember Manvel, to go into Executive
Session, pursuant to Section 2-31(a)(1)(d) and 2-31(a)(2) of the City Code, for the purposes of
considering personnel matters and meeting with the City Attorney regarding potential litigation and
related legal issues. The vote on the motion was as follows: Yeas: Councilmembers Brown,
Hutchinson, Kastein, Manvel, Ohlson, Roy and Weitkunat. Nays: None.
THE MOTION CARRIED
(Secretary's Note: The Council adjourned into Executive Session at 9:25 p.m. and reconvened following
the Executive Session at 11:10 p.m.)
July 5, 2005
Adjournment
The meeting adjourned at 11:10 p.m.
Mayo
A TEST:
City Clerk
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