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HomeMy WebLinkAboutMINUTES-08/28/2001-AdjournedAugust 28, 2001 • COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Adjourned Meeting - 6:00 p.m. An adjourned meeting of the Council of the City of Fort Collins was held on Tuesday, August 28, 2001, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Bertschy, Hamrick, Kastein, Martinez, Tharp, Wanner and Weitkunat. Staff Members Present: Fischbach, Krajicek, Roy. Items Relating to Potential Sales and Use Tax Ballot Measures for the November 6, 2001 Election Postponed The following is staffs memorandum on this item. "Financial Impact The City's current tax rate is 3% and the total of all current sales taxes is 6.7%. The proposed tax • ballot measure, if approved by voters, would increase the City's sales and use tax rate as follows: 0.25% for the transportation projects for four years and 0.10% for the natural resources enhancement projects for four years. The effect would be to bring the Cltv's sales tax rate to 3. 35%. If both ofthe proposed sales and use taxes were placed on the ballot and approved, the total tax rate paid in Fort Collins, including the state sales tax of 2.9% and County sales taxes of 0.8 % would increase from 6.7% to 7.05%.' The proposed taxes and the Building Community Choices one -quarter cent taxes would all expire at the same time, on December 31, 2005. Sales and use tax comparisons with other local municipalities is included as Attachment A. Executive Summary A. Resolution 2001-107 Submitting to the Registered Electors of the City an Ordinance Establishing a One -quarter Percent (114%) Sales and Use Tax Increase on all Taxable ' If the "Imagine" ballot measure is approved by voters, the effect would be to bring the City's tax rate to 3.64% and the total tax rate paid in Fort Collins would increase to 7.34%. • 62 August 28, 2001 Services and Tangible Personal Property Except Food, for the Purpose of Funding Certain Transportation Projects, Which Tax Increase Shall Remain in Effect for a Period of Four Years Beginning January 1, 2002, and Ending December 31, 2005. B. Resolution 2001-108 Submitting to the Registered Electors of the City an Ordinance Establishing a One -tenth Percent (1/10%) Sales and Use Tax Increase on All Taxable Services and Tangible Personal Property Except Food, for the Purpose of Funding Certain Natural Resource Enhancement Projects, Which Tax Increase Shall Remain in Effect for a Period of Four Years Beginning January 1, 2002, and Ending December 31, 2005. On August 14, City Council met with staff in a study session to review two proposed sales and use tax ballot packages for the November 2001 ballot. Council reviewed the recommendations of the Finance Committee and discussed various options to place on the ballot. No consensus was reached. However, the Council agreed to ask the Finance Committee to review the matter further at its August 17 meeting. Based upon the discussions at the Council meeting on August 14 and the Finance Committee meeting on August 17, two packages have been developed for Council consideration. Ifone or more packages are to be placed on the November ballot, Council must approve the resolutions before or at the September 4 regular Council meeting. Transportation Package: Projects: Harmony Road; Timberline Road, Mason Street Transportation Corridor Cost: Approximately $19.6 Million (inflation not included) Funding Approach: Pay-as-you-go Years to Complete: 4 years Tax Rate: One -quarter cent (25c on a $100 purchase) These projects are those which have been identified as very critical in terms of both congestion and the City's Adequate Public Facilities policy. These projects would provide a significant improvement to current traffic congestion in two critical areas, as well as enhance alternative modes travel opportunities through improved bike and pedestrian connections. This package would include three transportation projects, including two arterial expansions and funds for the Mason Street Transportation Corridor. Expansion of Harmony Road from Seneca to the railroad and expansion of Timberline Road from Drake to Prospect will expand these roadways to full arterial standards. The streets will include four travel lanes, bike lanes, and sidewalks. The Mason Street Transportation Corridor Funding would be used either as a local match for federal grants if the grants become available, or to complete as much of the project as possible if 63 August 28, 2001 the grants are not secured Improvements in the corridor could include transit facilities, bike/pedestrian improvements, right of way acquisitions or other projects detailed in the Corridor Plan. A complete cost analysis of the package, including inflation costs, is included in Attachment B. Natural Resources Enhancement Package: Projects: Poudre River Habitat Restoration (Lincoln Avenue to Linden Street); and Community Separators Project Cost: Approximately $7.9 million (inflation not included) Funding Approach: Pay-as-you-go Years to Complete: 4 years Tax Rate: One -tenth cent (10e on a $100 purchase) Under this option, the project would focus on a one -quarter mile segment of the River corridor between Lincoln and Linden. It would involve natural habitat restoration, bank stabilization, River clean up and trail amenities for this stretch of the River at an estimated cost of $1.2 million. In addition to these River improvements, this option would provide approximately $6.7 million in • funding for Community Separator acquisitions. After the River Restoration project is complete, the balance of funds from the one -tenth cent tax would be applied to the Separators project. This is projected to total between $6.7 million and $8.4 million over the 4-year tax term when inflation and revenue growth are taken into account. This level offunding could enable the City to protectpriorityproperties and preserve approximately 500 to 1100 acres within key community separator areas. The exact number of acres preserved would depend upon the mix of preservation strategies used, including conservation easements. purchases or purchases of development rights. A complete cost analysis of the package, including inflation costs, is included in Attachment B. A detailed description of the Community Separators Project is included as Attachment C. BACKGROUND: On June 12, 2001, Council and staff met to review the 2002-2005 Capital Needs Inventory during a study session. Staff presented a list of 35 projects recommended by various Boards and Commissions and department staffthat are ofcritical importance during the next two budget cycles. City Council directed staff to begin work on developing a sales tax proposal for the November 2001 ballot to gain funding for a portion of this "short list. " Councilmembers expressed interest in considering a primary service package including four transportation projects: Harmony Road, 0 64 August 28, 2001 Prospect Road, Timberline Road, and Lemay Avenue. Some Councilmembers were also interested in possibly including the Community Separator Implementation Program and the Cache La Poudre River Habitat Restoration project. The Council Finance Committee reviewed several options for a November ballot issue. The Committee recommended that the full Council consider two packages including a Transportation package with four projects (Timberline, Lemay, Harmony and Mason Street Matching Funds) funded through a quarter cent sales and use tax increase; and a Natural Resources Enhancement package of two environmental projects (Community Separators and Poudre River Habitat Restoration) funded through a one -tenth cent sales and use tax. The City conducted a citizen survey to gather information about citizen interest and support of the proposed tax packages. A random sample of 400 likely voters found that 62% supported the proposals, with supportparticularly highfor some ofthe roadprojects. Relieving traffic congestion was a significant issue with those surveyed, and they supported the transportation projects as a way of accomplishing some relief Full details about the survey results are included as Attachment C. Council and staff met in a subsequent study session on August 14 to further review and refine the proposals. At the August 14 Study Session, Council reviewed two options for Transportation packages and two options for Natural Resources Enhancement packages. While no consensus was reached at this study session regarding which projects, if any, to place on the November ballot, Council asked the Finance Committee to refine some options for Council. Council agreed to consider these items at an adjourned meeting on August 28. Proposed Ballot Measures The attached Resolutions provide two packages for Council consideration. The packages are both for sales taxes with a 4-year term, one -quarter cent for Transportation and one -tenth cent for Natural Resources Enhancements. The 4-year term would run from January 1, 2002, through December 31, 2005. The taxes would be set to expire at the same time as the three Building Community Choices one -quarter cent taxes. Key issues detailed in the resolutions include the following: 1. Cost estimates are based on year 2000 dollars. The cost will change because inflation, actual bids and other factors that may arise during the term of the projects. Additionally, it will be up to the City Council to finally determine the actual cost, general design and scheduling of each project. 2. Each transportation project in the package will need to be completed, unless the Council finds that a project has become legally or financially infeasible. W1 August 28, 2001 • 3. The transportation package is currently projected to have a small fund balance at the end of the tax term. If this projection is accurate, remaining funds can be allocated by City Council to other transportation capital projects. 4. In the Natural Resource Enhancementpackage, the Poudre River restorationproject is expected to be completed in the early years of the program, and all additional funds collected from the tax after the river project is completed will be allocated to the Community Separators project. " City Manager Fischbach presented background information relating to the agenda item. He spoke regarding the Imagine Fort Collins ballot initiatives that will appear on the November 2001 ballot and the option of placing a comprehensive package of City project proposals on the November 2002 ballot. He stated that two Resolutions have been prepared for Council consideration relating to: (1) transportation projects for Timberline and Harmony Road and the Mason Street Corridor and (2) Poudre River enhancements and natural areas separator projects. He stated that the City can move forward using reserves with construction of the Harmony Road improvements on a cash basis and outlined suggestions for funding the project. He stated that the City will have this highest priority road under construction on the same timetable that would have applied if the transportation package were approved on the November ballot. He stated that this will also allow the Imagine Fort Collins measures to be considered by voters without City measures competing for votes. Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to postpone • consideration of the sales and use tax ballot measures (Resolution 2001-107 and Resolution 2001- 108) relating to transportation capital projects and natural resource enhancement capital projects, and direct the City Manager to identify options to fund the Harmony Road project in the future budget years 2002-2003, to prepare a comprehensive transportation and other capital package for Council to consider for the November 2002 election, and that the ballot measures be revised to reflect that comprehensive package before they are resubmitted to the Council. John Knezovich,1205 Green Street, suggested that Council consider several items relating to natural areas. He stated that the County is about to adopt a natural areas open space plan and is considering a model for which farmlands ought to be acquired. He urged Council to take a look at L.E.S.A. standards before making land acquisitions near Wellington. He stated that these standards relate to land evaluation and site assessment, which has three subparts including: Part 1 - farm size, percentage available for agricultural, water availability and land condition; Part 2 - distance from annexed boundaries; and Part 3 - habitat, strategic, visual/scenic and cultural/historic values. He urged the Council to look at what the County is doing in those areas. He also urged the Council to place formative tax issues on the April municipal election ballots. He commented regarding the quarter center County tax that will expire in 2018 relating to open space which will raise $107 million between now and 2018 as the City of Fort Collins share. He suggested looking at how this tax revenue will be spent before the City jumps into an additional natural areas tax. He stated that postponing placement of measures on the ballot is a wise decision because of competing measures. • August 28, 2001 Randy Fischer, 3007 Moore Lane, spoke in support of placing the environmental package on the ballot and stated that the people who will get out and vote for the environmental package will also vote for the Imagine Fort Collins package. He spoke regarding the award winning community separators plan and program and noted that this plan is still unfunded. He spoke regarding the value of the open space near Wellington and stated that such property would score high under the L.E.S.A. program. He stated that the Natural Resources Advisory Board has already approved a purchase of conservation easements in the Wellington area using natural areas money. He stated that the downtown river corridor plan is another established City policy that calls for restoration of habitat along the Poudre River and that this project is also unfunded. He asked that Council debate these issues. Michael Gould, President and CEO of the Fort Collins Area Chamber of Commerce, stated that a letter has been sent to the City to give feedback relating to transportation issues. He stated that the Chamber's recommendation is to put the Timberline and Harmony projects on one ballot issue and the Mason Street Corridor matter on a separate ballot issue. He spoke regarding the importance of transportation issues to the community and asked that Council fast -track the Harmony and Timberline road projects. Glen Colton, 625 Hinsdale Drive, spoke in opposition to postponement of the Poudre River restoration and community separators ballot measure. He spoke regarding the importance of restoration of the Poudre River and community separators. He stated that taking this measure off of the ballot and showing preference for the Imagine Fort Collins package is inappropriate. He spoke regarding the City Manager's proposal to fund Harmony Road with "other monies" and stated that those funds could go toward other projects such as separators and river restoration. He questioned making Harmony Road the highest priority for funding. Mike Byrne, 1505 South Shields, spoke regarding reductions in State funding for roadway improvements. He stated that the spirit of TABOR is that the voters want to be asked. He stated that there are many competing needs and desires and that there are roadway projects that are clearly needed and that many of these transportation needs are consistent with City Plan. He stated that if some of those needs are not addressed soon that we need to take responsibility for existing deficiencies rather than deferring those to the future. He stated that the City could create a transportation capital fund. He stated that the voters can handle a debate and decision regarding competing needs. He encouraged Council to place the funding initiatives before the voters. Tom Sutherland, 812 Garfield Street, spoke in favor of the motion and stated that there is an opportunity now to get the Imagine Fort Collins package passed. He stated that transportation matters can be accomplished next year and that there are opportunities now for the cultural -arts facility. Mike Doten, 426 LaPorte Avenue, urged Council to defeat the motion on the floor. He stated that this is a debate that needs to be heard by the people and that the timing is critical for establishing 67 August 28, 2001 • community separators. He asked about the Wal-Mart money that was supposed to be used for river restoration. He stated that the citizens need to prioritize and decide how they want their money to be spent regarding competing needs. Larry Stroud, representing the Downtown Development Authority, noted that Councilmember Wanner, Council liaison to the DDA, held differing views than the DDA's position. He stated that the DDA supports the motion on the floor. He stated that this is a strategic decision that Council will have to make and that if all of the measures are placed on the ballot that none would pass. He stated that the DDA will commit to working on voter education regarding transportation needs in the future. Doug Hutchinson, 1315 Whedbee, stated that the Larimer County open space tax will generate $85- 90 million for the City of Fort Collins by 2018. He stated that he can understand the need to add another tax for open spaces. He asked that Council not place the environmental tax on the ballot. He stated that the 2001 citizen survey showed more interest in transportation than growth management. He asked that Council not preempt the voters weighing in on the transportation issue. He stated that the voters should have an opportunity to prioritize the Imagine Fort Collins projects and transportation projects and urged Council to place the transportation measures on the ballot. Kelly Ohlson, 2040 Bennington Circle, stated that the process being followed is bad government and • that the roads and natural resources issues should be discussed and debated separately. He asked Council to defeat the motion and vote separately on the two packages. He stated that there is no money available for the award -winning community separators program from either the natural areas tax or the County tax. He stated that community separators were favored by 82% in a poll. He stated that having the natural resources tax on the ballot will not hurt the Imagine Fort Collins package and will actually help it. Eric Levine, Air Quality Advisory Board chair, stated that the Board just passed a recommendation to Council. He stated that the Mason Street project is a state of the art multi -modal project and that voters in 1997 voted $6.5 million in funding for the project. He stated that most of the Board members believe that linking the Mason Street project to the other transportation projects is inappropriate. He stated that $5 million in funding is sought for the Mason Street project. He read the recommendation of the Board: "To recommend to the City Council that the Mason Street Corridor be allowed to stand on its own as a ballot issue or be funded from the General Fund, but not be included as a part of the roads ballot issue." Councilmember Hamrick stated that he supported bits and pieces of the ballot measures and especially supports the community separator program. He stated that he also wholeheartedly supported the Imagine Fort Collins measure. He stated that there should be a public and open process so that the citizens can hear why Council made certain decisions. He stated that he would not be supporting the motion because the money that will be allocated toward Harmony Road may not be the best way to use the money. He stated that the Council needs to discuss the Harmony Road • 68 August 28, 2001 funding issue. He stated that the street package is not a comprehensive transportation package and that there are not sufficient resources to complete the community separator goals. Councilmember Kastein stated that he will not be supporting the motion and that it is important for Council to frame the debate and come to a resolution on the transportation issues. He stated that he would like to see work proceed on Harmony and Timberline because those streets are critical. He stated that delaying the vote will not work because the needs will be there next year. Councilmember Weitkunat stated that she would support the motion and that there are alternatives to pay for some of the street projects through the General Fund. She stated that Vine Drive is an urgent project and that removing that project from the tax package removed some of the need to ask the voters for funding for transportation. She stated that she has problems with the community separator study because the City has not had any conversations with Wellington to set those wheels in motion. She stated that the citizen initiatives will be on the ballot and that the City -initiated measures should be postponed to provide an opportunity to put forth what is needed to make the package succeed. Councilmember Bertschy stated that he has a hard time supporting the streets package because the City should find a permanent mechanism to support a basic need of the community. He stated that these projects are necessary but he would like to see a permanent mechanism instead. He stated that the environmental package is needed and that internal funding mechanisms are needed for some of these projects. He stated that he supports postponement. Councilmember Tharp stated that the road package is a stop gap, band -aid approach and that she would like to see a comprehensive road package and a funding mechanism. She expressed an interest in alternate transportation rather than streets. She stated that she would like the separator measure on the ballot but recognized that this would not be possible. She stated that she would support postponement to provide an opportunity to look at funding and cooperation with Latimer County. She stated that community separators are needed to make Fort Collins a distinctive separate City. Councilmember Wanner stated that all sides of the issues have been heard and that his position would be reflected in his vote. Mayor Martinez stated that there has been open debate on these matters. He stated that this is a matter of strategic planning of the transportation plan. He stated that the City is not on CDOT's priority list for matching funds for the Mason Street Corridor. He opposed asking the voters for funds when matching funds are not in line. He spoke regarding the need for a comprehensive long- term funding plan and stated that the City needs to ask for funding for urgent projects. Councilmember Tharp stated that it is not a foregone conclusion that General Fund money will be allocated toward Harmony Road and that this has been suggested by the City Manager as an option. .' August 28, 2001 • The vote on the motion to postpone was as follows: Yeas Councilmembers Bertschy, Martinez, Tharp and Weitkunat. Nays: Councilmembers Hamrick, Kastein and Wanner. Councilmember Kastein stated that some of the discussion focused on a more comprehensive capital savings plan for streets. He stated that he supported that idea. Councilmember Kastein made a motion, seconded by Councilmember Tharp, to direct the City Manager to identify streets as an integral part of the capital savings plan and to report back to the Council on how street capital needs will be addressed over the next "x" years. Councilmember Hamrick asked for clarification regarding the intent of the motion. Councilmember Kastein stated that an effort is in place to try to determine how to fund the $500 million in capital needs and that he would like to especially delineate streets needs as being integral to that plan and to direct the City Manager to come back to the Council with a capital savings plan and with a separate plan for streets or with streets worked carefully into the plan so that the City does not lose track of these needs. He stated that he would like to see a statement with which all can agree regarding the importance of streets. • Councilmember Hamrick asked how this would differ from what the City Manager would do anyway. Mayor Martinez stated that this would provide an emphasis and a direction. Councilmember Weitkunat stated that this would ensure that streets are not lost in the shuffle. Councilmember Hamrick asked for clarification that this would not degrade or downplay the other options and would simply ask that staff keep track of streets. Councilmember Kastein replied in the affirmative. John Knezovich, 1205 Green Street, stated as the City is involved in the budget discussion that it is time for Council to look at some of the City's policies, such as the permanent 2'/4 cent sales tax on all items in the City and the various quarter cent sales taxes adopted for various projects. He suggested that the Council look at how the 2'/4 cent sales tax is spent. The vote on the motion was as follows: Yeas Councilmembers Bertschy, Hamrick, Kastein Martinez, Tharp, Wanner and Weitkunat. Nays: None. • THE MOTION CARRIED 70 August 28, 2001 Other Business Councilmember Weitkunat stated that the Commission on the Status of Women would like to reduce the number of members from 11 to nine. She asked for Council direction to staff to prepare the required ordinance. City Manager Fischbach stated that the ordinance would be prepared for Council consideration. Councilmember Tharp stated that the Commission on Disability has asked her to encourage the community to nominate people for the Commission's annual awards. City Manager Fischbach reported that the Community Foundation has agreed to serve as the City's third party agent for the purpose of providing reward money for the sexual assault case. City Manager Fischbach reported on the investigation of the Warren Lake incident reported by a citizen at the last Council meeting. City Manager Fischbach reported that the McCluskey-Poudre Valley Creamery property has been acquired for the library site and showed a slide depicting the potential layout for the facility. The meeting adjourned at 7:20 p.m. ATTEST: lyt V! \� Nil, . . Adjournment 71 Mayor 77M MM