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HomeMy WebLinkAboutMINUTES-12/21/2004-RegularDecember 21, 2004 COUNCIL OF THE CITY OF FORT COLLINS, COLORADO Council -Manager Form of Government Regular Meeting - 6:00 p.m. A regular meeting of the Council of the City of Fort Collins was held on Tuesday, December 21, 2004, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Councilmembers: Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Al Baccili, 520 Galaxy Court, spoke against a sales tax on food and sales tax vendor fees and asked that the City Council appoint the new City Manager from within the City organization. He spoke against spending money for open space when there were higher priorities. Vicki Lutz, Executive Director of Crossroads Safehouse, spoke regarding progress made in expanding shelter capacity, opening a permanent public outreach facility, and creating a nonprofit community meeting space. She asked for City help on the goals of the volunteer committee called "Crossroads on the Move." She stated the Council decision regarding the Rule property opened the door for the Rules to donate their buildings to Crossroads Safehouse and detailed the vision for the use of the Rule buildings and the status of efforts on the project. She stated the Rule house and bam would be demolished or relocated by May 1, 2005 without additional help to make the Crossroads Safehouse vision a reality. Sandra Kolodziej, Crossroads Safehouse Outreach Director, spoke regarding efforts to locate a site for Crossroads Safehouse. She asked for Council's help with a list of "actionable items" to make the Crossroads vision happen. She spoke regarding issues relating to the location of Crossroads Safehouse at a site near the old power plant. She listed the issues with which Crossroads Safehouse would like Council help, such as the requirement for a 300 foot setback from the river, cutting of "red tape" regarding the building relocation, collaboration with CSU, titling of the land and any other assistance with moving forward with this process. She stated this collaborative project was a way to relocate and save the historic Rule buildings. Doug Brobst, 1625 Independence Road, spoke regarding the rental licensing time line and asked that the process be speeded up as much as possible. He suggested that the January 25 study session agenda be cleared to allow rental licensing to be one of a few discussion topics so that clear direction could be given to City staff. Leann Thieman, 6600 Thompson Drive, Mountain Valley Subdivision, spoke on behalf of 3,000 residents of the proposed southwest enclave annexation in opposition to the annexation. She stated 326 staff had indicated that there would be no benefit to the residents, except possibly better police protection and that it would cost the City about $2 million to annex the area. She stated there would be costs to the residents of the area annexed i.e. higher electrical rates (25% for 10 years) to allow the City to pay Poudre Valley REA the transfer fee. She stated legal counsel had indicated that there was no precedent for this in the State. She questioned having to pay for an annexation that the residents did not want. She stated REA members received an annual capital credits check and that this would not be the case upon annexation. She stated REA had expressed its opposition to the annexation. She stated staff had indicated that there was no City funding for increased police protection and that Mayor Martinez had indicated during a meeting that it would cost about $1 million to put six police officers in the area. She stated staff indicated that they would continue to support the annexation because the area was "not paying its own way" and because it was a "donut hole" on the map. She stated it was not logical to annex for those reasons. She stated the City was not required by law to pursue annexation of an enclave. She stated the City land surrounding the area was all open space. She asked that taxpayer dollars not be wasted to pursue this annexation. She stated the eight subdivisions in the area were very "organized" and very "vocal" in their opposition to the proposed annexation. Kelly Ohlson, 2040 Bennington Circle, stated he was undecided on the repeal of the grocery tax at this point. He suggested that since the tax hurt the low income that it would be a good idea to review the City policy regarding the sales tax rebate program to ensure that low income people were not hurt by the tax. He stated the real issue could then be debated i.e. whether the City had too much money and some City services should be cut back. He also spoke regarding the "three unrelated" ordinance and stated discussion on this issue should not be delayed for an economic study. He stated it was inappropriate to have multiple students living in houses in single-family neighborhoods. He stated the issue of enforcing the ordinance should not be delayed past the election. Katie Clausen, ASCSU President, expressed concerns that the student viewpoint was not being considered in the rental licensing discussions. She stated the University was responsible for $1.3 billion of economic activity (direct and secondary) in the State of Colorado. She stated the University boosted the Fort Collins economy by $621 million. She stated students should not be placed in an "island" of housing. She stated three was an arbitrary number and that it was important to come up with a consistent standard based on the scale of the home. She stated "unrelated" was an outdated concept and that 48% of the houses in Fort Collins were not owner occupied. She asked that the Council not make its decision based on stereotypes. She stated riots would be more likely in denser areas. She stated students were not the only population in violation of nuisance ordinances. Citizen Participation Follow-up Councilmember Weitkunat asked about the schedule for Council discussions regarding repeal of the grocery tax. Interim City Manager Atteberry stated Councilmember Bertschy would be reporting on the discussions of the Finance Committee. He stated a study session on the issue had also been scheduled. 327 December 21, 2004 Councilmember Weitkunat asked what Council action would be requested with regard to the Crossroads Safehouse. Interim City Manager Atteberry stated staff would meet with Colorado State University to discuss the issue of coexistence of the facility with the small engine lab at the old power plant. He stated staff would also look at the buffer standards issues. He stated Council could see this matter as a planning issue. Councilmember Weitkunat asked if staff would review the action item list submitted by Crossroads Safehouse. Interim City Manager Atteberry replied in the affirmative. Councilmember Weitkunat asked when the southwest enclave annexation would be scheduled for Council consideration. Interim City Manager Atteberry stated staff acknowledged that there were major issues with the potential annexation. He stated phasing options were being discussed and that he would recommend a study session in January or February to discuss the concerns expressed by the Council and the citizens. Mayor Martinez asked that Ms. Clausen provide a copy of the notes from her presentation. Councilmember Bertschy stated there was no "plot" to delay the rental licensing issue past the election. He noted that a study session was upcoming and that the economic study was needed to provide perspective regarding the economic impacts. He stated staff work was taking place as quickly as possible. He stated in response to Mr. Baccili's comments that the open space money (as approved by the voters) could not be used for any other purpose. He stated repeal of the food tax would impact everyone who used City services and that repeal would mean user fees and diminishment in services and quality of life. Councilmember Roy stated more than 80 communities in Colorado charged a food sales tax. He stated in response to Mr. Baccili's comments that it was important to have an open search for the new City Manager. He asked about the threshold to qualify for the sales tax rebate and when the program was last changed. Interim City Manager Atteberry stated information would be provided to Council. Mayor Martinez stated if the food tax was repealed that it would be "even harder" for those who had less money because there would be no rebate program if there was nothing to rebate. He stated in response to Mr. Baccili's comments that the other cities that did not have a food sales tax had a higher base sales tax. He stated everyone paid the food sales tax and that the indigent could apply for a rebate. Councilmember Kastein stated the food sales repeal issue should really be about the size of government i.e. whether City government should be reduced by $6 million. He noted that information was being prepared to give people an idea of what kinds of cuts would be needed if the tax was repealed. He stated if the tax was repealed in April that he would favor a replacement for the grocery tax. He stated in response to Mr. Brobst's comments that Council understood that it needed to give clear direction to staff regarding rental licensing at the January 25 study session. im December 21, 2004 Mayor Martinez stated there should not be a "knee jerk reaction" to the issue and that it should be approached carefully. He noted that the Public Nuisance Ordinance had not resolved the issue and that lives would be impacted by how the Council dealt with the issue. Councilmember Tharp stated she wanted the rental licensing issue to be resolved as quickly as possible. She agreed that more time was needed at the January 25 study session to discuss the matter. She stated consensus had not been reached regarding what solution would work and what would be satisfactory to all of the "stakeholders." She stated she did not want to delay this matter until after the election. She stated the nuisance ordinance should continue to be enforced to deal with "behavior" issues. She stated "capacity" issues needed to be discussed separately. She thanked the Crossroads Safehouse staff for bringing information forward to the Council. She favored moving ahead with this and assisting in any way possible. Councilmember Hamrick stated the food sales tax was "regressive" and that many people could not afford to claim the rebate. He stated a rebate program was not needed if there was no food sales tax. He favored moving forward faster on rental licensing and the enforcement of the "three unrelated" ordinance. He noted that Council was divided on the solutions. He also spoke regarding the southwest enclave annexation and asked for an update from staff on research done on the REA transfer fee and a comparison between the City and REA rates. Interim City Manager Atteberry stated staff would provide that information to Council. Mayor Martinez stated he had sent a letter explaining the rates and the 10 year surcharge. He stated the City's rates would be about 8% more than the REA rates. Councilmember Hamrick stated because City rates were so low, it undercut REA rates, but that with the surcharge the City's rates would be about 8% more. Agenda Review Interim City Manager Atteberry stated the agenda would stand as printed. Mayor Martinez withdrew item #15 First Reading of Ordinance No. 200, 2004, Amending Chapter 7 of the City Code so as to Add a New Section Relating to Identifying Circulators of Petitions from the Consent Calendar. CONSENT CALENDAR 7. Consideration and approval of the regular meeting minutes of November 16 2004 329 December 21. 2004 8. Second Reading of Ordinance No. 190, 2004, Appropriating Prior Year Reserves in the General Fund for Upgrading and Replacing the Development Tracking System and the Development Management System. The City of Fort Collins has operated and maintained a software application known as the DTS since 1999. This application automates the departments of Building and Zoning and Current Planning business processes. These processes include portions of the development review process, the complete building permit process, as well as peripheral processes such as contractor licensing. The software is a vital component to the operation of these departments. The vendor that supplies this application, Accela, recently released the latest version of this automated system. The City diligently researched the new software release and has deemed it a very desirable upgrade. The new release will align this system with the current standards and direction of the City's overall Information Technology strategies. Ordinance No. 190, 2004 was unanimously adopted on First Reading on December 7, 2004. 9. Second Reading of Ordinance No. 191 2004 Appropriating Unanticipated Revenue in the General Fund for the Restorative Justice Youth Conferencing Program and the Restorative Justice Restore Program. Office of Juvenile Justice, Division of Criminal Justice (DCJ) Grant A grant in the amount of $20,000 has been received from the Colorado Division of Criminal Justice ("130") for salaries associated with the continued operation of the Restorative Justice Youth Conferencing Program. A $2,222 cash match is required and will be met by appropriating previously collected project income (client fees) from users of this program. The grant period is from October 1, 2004 to September 30, 2005. Bohemian Foundation Grant The Bohemian Foundation awarded a grant in the amount of $25,000 for salaries associated with the continued operation of the Restorative Justice Restore Program ("RESTORE"). No cash match is required. The grant period is from October 1, 2004 to September 30, 2005. Ordinance No. 191, 2004 was unanimously adopted on First Reading on December 7, 2004. 10. Second Reading of Ordinance No 192, 2004 Appropriating Unanticipated Revenue in the Street Oversizing Fund and Authorizing the Transfer of Appropriations From the Street Oversizing Fund to the Capital Project fund - Drake and Ziegler Road Improvements Project Phase I. The Drake and Zeigler Road Improvements Project, Phase I includes arterial street 330 December21, 2004 improvements for Drake Road, from Timberline east to Environmental Drive (approximately 4,500 linear feet). These street improvements will include the widening of Drake Road to a minor arterial street standard from its existing two-lane configuration, and the construction of the Environmental Drive connection (an additional 1,000 linear feet). The improvements include the installation of curb -and -gutter, sidewalks, asphalt paving, bike lanes, and storm sewers. Staff has coordinated this project with the planned construction of a new trunk sewer line to be constructed by the City's water and wastewater utility. These projects both require a full street closure in order to construct them safely and efficiently. By coordinating schedules and completing the work simultaneously, only one street closure will be necessary. The construction is planned to begin in March of 2005. The full closure of the roadway will last approximately 3 months. Ordinance No. 192, 2004 was unanimously adopted on First Reading on December 7, 2004. 11. Second Reading of Ordinance No. 193, 2004 Amending the Zoning Map of the City of Fort Collins by Chan in¢ the Zoning Classification for that Certain Property Known as the Running Deer Natural Area Rezoning. The rezoning request is consistent with the City of Fort Collins Structure Plan designations of both "Poudre River" and "Open Lands, Parks, Stream Corridors." The majority of the properties contained within these "green" corridor designations are large publicly owned parks, natural areas and open lands that have a community -wide emphasis or other characteristics which warrant inclusion under this separate designation rather than inclusion in an adjoining neighborhood or other District designation. The T- Transition Zone District is intended for properties for which there are no specific and immediate plans for development. The only permitted uses are those existing at the date the property was placed into the district. Rezoning the property will allow the Natural Areas Program to move forward with its plans to construct a parking lot and a trailhead to provide public access to the property There are roughly 14.828 acres on the northern end of the property which are currently being leased by the City to an adjacent business. This area is not included in the rezoning request and will remain within the T — Transition Zone District until the future use of the property has been determined. Ordinance No. 193, 2004 was unanimously adopted on First Reading on December 7, 2004. 331 December 21. 2004 12. Second Reading of Ordinance No. 194, 2004, Appropriating the Value of a Conservation Easement on Red Mountain Ranch Donated to the City by Latimer County as Unanticipated Revenue in the Natural Areas Fund. This Ordinance, which was unanimously approved on First Reading on December 7, 2004, will appropriate the value of the donated conservation easement on Red Mountain Ranch which was authorized for acceptance by the City by Resolution on December 7, 2004. 13. Postponement of Items Pertaining to the Liebl Annexation. A. Second Reading of Ordinance No. 195, 2004, Annexing Property Known as the Liebl Annexation to the City of Fort Collins, Colorado. B. Second Reading of Ordinance No. 196, 2004, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Liebl Annexation to the City of Fort Collins, Colorado The Liebl Annexation is a request to annex and zone 2.8 acres of land located along the east side of Timberline Road, south of Kechter Road. The site contains an existing single family residence and detached garage. The parcel is designated UE — Urban Estate on the Fort Collins Structure Plan and the Fossil Creek Reservoir Area Plan. The anticipated land use is a bed and breakfast consistent with the design standards in the UE zone district. The parcel is currently zoned FA1 - Farming in Latimer County. Ordinance Nos. 195 and 196, 2004 were unanimously adopted on First Reading on December 7, 2004. Due to a technical error, these Ordinances were not published after First Reading. Therefore, Second Reading for Ordinance Nos. 195 and 196 will be postponed until the regular City Council meeting on January 4, 2005. 14. First Reading of Ordinance No. 199, 2004, Amending Section 2-398 of the Cites Relating to the Functions of the Senior Advisory Board. The Senior Advisory Board (SAB) is asking that Section 2-398 of the City Code regarding the Board's functions be amended to better describe the role the Board serves. The Board is concerned that the current description of its functions implies duties and responsibilities that the Board is not equipped to perform. The Board's recommended changes have been approved by staff in the City Attorney's office and the Recreation Division. 15. First Reading of Ordinance No. 200, 2004, Amending Chapter 7 of the City Code so as to Add a New Section Relating to Identifying Circulators of Petitions Article X, Section 5 of the City Charter and Chapter 7, Article VI of the City Code establish certain regulations and requirements pertaining to the content and circulation of petitions and the affidavits of petition circulators. Currently, neither the City Charter nor the City Code requires that the status of petition circulators be identified as being either volunteer or paid. 332 December 21. 2004 This Ordinance would amend the City Code to impose such a requirement. 16. First Reading of Ordinance No. 201, 2004, Amending Chanter 24 of the City Code Pertainin ttg o Signs in the Right -of -Way, and Chanter 17 of the City Code. Pertaining to Posting of Notices and Handbills on Public Property. Section 24-1 of the City Code prohibits placement of signs on streets, sidewalks and other areas owned by the City. Similarly, Section 17-42 prohibits the posting of notices and handbills on public property. An amendment to these Code sections is recommended in order to clarify the methods that will be used to enforce the current provisions. 17. Resolution2004-146 Approving the Purchase of Software From Accela.Inc. toUpgrade and Replace the Development Tracking System and Development Management System as an Exception to the Competitive Process. Purchase of new Development Tracking System (DTS) software from Accela, Inc. will align the City's system with the current standards and direction of the City's overall Information Technology strategies. This upgrade would also allow the Building and Zoning and Development Review processes to be completely integrated within a single application. Such integration will result in a more coherent processing of development review and construction permitting within a single system. Purchasing new software for the existing system will be substantially less expensive than purchasing an entirely new system from another vendor. 18. Resolution 2004-147 Authorizing Intergovernmental Agreements with Latimer County Regarding the Bee and Weber Conservation Easements. Larimer County took the lead on these conservation projects and acquired the Bee and Weber Conservation Easements (CEs). Both properties are located south of the Wellington Growth Management Area and along the east side of I-25. The CEs Open Lands Master Plan for conserving agricultural lands and they fit the City's Land Conservation Plan by conserving open space in the Fort Collins - Wellington Community Separator. Due to the mutual benefit, staff is recommending that the City partner with Larimer County 50/50 on these two land conservation projects by reimbursing Larimer County for a 50% interest in the CEs. 19. Resolution 2004-148 Adopting an Updated Three -Mile Plan for the City of Fort Collins This is a review of the updates for the Three -Mile Plan for the City of Fort Collins. The Three -Mile Plan is a policy document that is required to ensure that the City complies with the regulations of the Colorado Revised Statutes. 333 December 21, 2004 20. Resolution 2004-149 Making Appointments to Various Boards. Commissions. and Authorities of the City of Fort Collins. Vacancies currently exist on various boards, commissions, and authorities due to resignations of board members and the expiration of terms of members. Applications were solicited during September. Council received copies of the applications and Council teams interviewed applicants during October and November. This Resolution makes 50 appointments to 23 boards and commissions. Names of those individuals recommended for appointment by each Council interview team have been inserted in the Resolution. Several boards and commissions did not receive sufficient applications to fill existing vacancies. The Clerk's Office will readvertise for vacancies still existing on the Affordable Housing Board, Electric Board, Personnel Board and Transportation Board. Those appointments are tentatively scheduled for early February. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. Second Reading of Ordinance No. 190, 2004, Appropriating Prior Year Reserves in the General Fund for Upgrading and Replacing the Development Tracking System and the Development Management System, 9. Second Reading of Ordinance No. 191, 2004, Appropriating Unanticipated Revenue in the General Fund for the Restorative Justice Youth Conferencing Program and the Restorative Justice Restore Program. 10. Second Reading of Ordinance No. 192, 2004, Appropriating Unanticipated Revenue in the Street Oversizing Fund and Authorizing the Transfer of Appropriations From the Street Oversizing Fund to the Capital Project fund - Drake and Ziegler Road Improvements Project Phase I. 11. Second Reading of Ordinance No. 193, 2004 Amending the Zoning Map of the City of Fort Collins by Changing the Zoning Classification for that Certain Property Known as the Running Deer Natural Area Rezoning. 12. Second Reading of Ordinance No. 194, 2004. Appropriating the Value of a Conservation Easement on Red Mountain Ranch Donated to the City by Larimer County as Unanticipated Revenue in the Natural Areas Fund. 25. Second Reading of Ordinance No. 197, 2004, Amending Chapter 7.5-32 of the City Code Regarding Street Oversizing Capital Improvement Expansion Fees 334 December 21. 2004 26. Second Reading of Ordinance No. 198, 2004, Making Various Amendments to the City of Fort Collins Land Use Code. Ordinances on First Reading were read by title by City Clerk Krajicek. 14. First Reading of Ordinance No. 199, 2004, Amending Section 2-398 of the City Code Relating to the Functions of the Senior Advisory Board. 15. First Reading of Ordinance No. 200, 2004, Amending Chapter 7 of the City Code so as to Add a New Section Relating to Identifying, Circulators of Petitions 16. First Reading of Ordinance No. 201, 2004, Amending Chapter 24 of the City Code. Pertaining to Signs in the Right -of -Way, and Chapter 17 of the City Code. Pertaining to Posting of Notices and Handbills on Public Property; 24. First Reading of Ordinance No. 202, 2004, Amending Section 2-596 of the City Code and Fixing the Salary of the City Manager. Councilmember Bertschy made a motion, seconded by Councilmember Roy, to adopt and approve all items not withdrawn from the Consent Calendar. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Reports Councilmember Bertschy reported on Finance Committee discussions regarding the potential impacts of repeal of the food sales, the 2006-2007 budget preparation process, the long range (10 year) outlook for revenue and expenditures, pending quarter cent taxes, street maintenance (April 2005), community enhancements (November 2005), and future employee compensation adjustments. He stated additions to the agenda included alternative sources of revenue and the pursuit of legal action relating to bonding. He stated staff presented two scenarios of potential service reductions related to the grocery tax repeal and the committee discussed the criteria used to make those suggested reductions. He stated the committee requested that staff prepare another scenario that would exclude any reductions to any primary services. He stated the Leadership Team had also suggested a fourth scenario that would exclude reductions in any of the emergency services (police and fire). He stated the Finance Committee requested the scheduling of two meetings in January and that the Committee intended to submit its "best thinking" to the Council regarding potential reductions should the grocery tax be repealed. He stated a study session was scheduled for February 8. Mayor Martinez reported on the Library's celebration of two million items checked out since the Library was opened. He also reported on the Youth Activity Center gymnasium grand opening and 335 December 21. 2004 donations received for that project. He reported on a breakfast meeting with legislators. Councilmember Tharp reported on the I-25 Environmental Impact Study Policy Committee discussions. She stated there would be a public meeting on February 24 to obtain more citizen input. Items Relating to the City Manager, Adopted. The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A. Resolution 2004-150 Approving the Employment Contract for the City Manager. B. First Reading of Ordinance No. 202, 2004, Amending Section 2-596 of the City Code and Fixing the Salary of the City Manager. C. Administration of Oath of Office of City Manager. BACKGROUND Following the resignation offormer City ManagerJohn F. Fischbach, which was effective June 16, 2004, the City Council appointed Assistant City Manager Darin A. Atteberry as Interim City Manager through the adoption of Resolution 2004-065, pending the appointment of a new City Manager. The Council then established, through the adoption of a series of resolutions, a selection process that utilized the services ofan executive search firm for the development of a position profile and the screening of candidates for the position. Thirty-five applications for the position of City Manager were received by the executive search firm. Finalists were identified and were interviewed by the Council and various citizen and employee groups. At the conclusion of the process, Mr. Atteberry was identified as the leading candidate. Resolution 2004-150 appoints Mr. Atteberry as the new City Manager for the City of Fort Collins and authorizes the Mayor to execute an employment contract with Mr. Atteberry upon the terms and conditions shown in Exhibit "A" to the Resolution. The passage of Ordinance No. 202, 2004 amends Section 2-596 of the City Code to establish the initial base salary of the City Manager. 336 December 21, 2004 The terms of the negotiated agreement have resulted in the following compensation package: SALARYAND BENEFITS ANNUAL NON -MONETARY BENEFITS Base Salary $149,280 Vacation (30 days per year) Medical Insurance 8,904 Holidays (II days per year) Dental Insurance 558 Life Insurance 522 Long Term Disability 1,478 ICMA 457 4,478 ICMA 401 14,928 FICAIMedicare 8,026 Car Allowance 9,000 Worker's Compensation 269 Total Monetary Compensation $197,473 Interim City Manager Atteberry briefly introduced the agenda item. Rick De La Castro, Human Resources Director, presented background information regarding the agenda item relating to the appointment of Darin Atteberry as the next City Manager. He summarized the recruitment and interview processes. He stated Resolution 2004-150 would appoint Mr. Atteberry as City Manager and authorize the Mayor to execute an employment agreement. He stated Ordinance No. 202, 2004 would amend the Code to fix the salary of the City Manager. David May, Fort Collins Chamber of Commerce Executive Director, commended the Council for the process and for staying on schedule. He stated this community was able to attract first rate candidates. He stated the process confirmed that Mr. Atteberry was "eminently qualified" for and "earned" the position. Councilmember Bertschy made a motion, seconded by Councilmember Weitkunat, to adopt Resolution 2004-150. Councilmember Bertschy stated this was "good work" on the part of the Council. He stated this was a "serious process" and a "daunting task" and that a "great" City Manager was selected through a collaborative process. Councilmember Weitkunat stated the candidates were of "stellar quality." She stated Mr. Atteberry was determined to be a "rising star" during the process. She stated several of the candidates even indicated that the choice should be Mr. Atteberry and that this was an "outstanding testimonial" to his appointment. Councilmember Kastein stated the process worked very well and that the best candidate was selected 337 December 21. 2004 to fill the position. Councilmember Roy stated this was a "rigorous" process that looked at many fine candidates. He stated the appointment of Mr. Atteberry was testimony to the effort, care and dedication he had put in as Assistant City Manager and Interim City Manager. Councilmember Tharp stated there had been a change in the "style of management" with Mr. Atteberry that had "brought out the best in employees" and worked toward more "open communication with the community." She stated the City Manager would face difficult issues and challenges. Councilmember Hamrick stated Mr. Atteberry "hit the ground running" when he was appointed as Interim City Manager and was "balanced, fair and listened." Mayor Martinez stated the process had been open and had involved citizens, employees, Executive Lead Team and the Council. He stated Mr. Atteberry "championed the needs of the City" and was "honest" and "trustworthy." He stated everyone would have to work together on the difficult issues facing the community. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Weitkunat made a motion, seconded by Councilmember Roy, to adopt Ordinance No. 202, 2004 on First Reading. Councilmember Tharp expressed concerns about the "generous" termination and severance pay portion of the package. She stated a year's salary upon termination within 24 months would "tie Council's hands" and would be very expensive to the City. Councilmember Weitkunat asked staff to address "normal and customary." De La Castro stated it was not unusual to have an individual at that level of a private or public organization to have some protection as "the most vulnerable employee" within the organization. He stated this provision was also designed to protect the City. Councilmember Kastein stated the package only covered separation without cause. He stated he believed that the provision was appropriate. Mayor Martinez stated the severance package was three years for other CEOs in this area. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy and Weitkunat. Nays: Councilmember Tharp. I= December 21, 2004 Ygum INt•[oil 9(ora : ; ; I W01 City Clerk Krajicek administered the oath of office to City Manager Darin Atteberry. City Manager Atteberry thanked the Council, the community and the employees and the Executive Lead Team and introduced his family. Mayor Martinez noted that there would be a light reception during the Council's break at 8:00 p.m. Ordinance No. 197, 2004, Amending Chapter 7.5-32 of the City Code Regarding Street Oversizing Capital Improvement Expansion Fees. Adopted on Second Reading. The following is staff's memorandum on this item. "EXECUTIVE SUMMARY Staff is proposing a 13.8% increase to the Street Oversizing Fee. The increase consists of two elements: a 3.6% increase for inflation, and revisions to the Street Oversizing fees to account far recently adopted changes to the City's Master Street Plan. Periodic routine recalculations of the Street Oversizing fees are necessary to ensure that fee revenues will be sufficient to pay for the cost of improvements that the program will be constructing. • Construction costs have increased. Staff is recommending a 3.6% increase to keep pace with inflation. The recently adopted East Mulberry Plan tripled the amount of arterial and collector roadway required to serve the zoning and density proposed in this planning area. The recently adopted Transportation Master Plan reclassified several street segments as a result ofcomputer modeling ofthe transportation network. Several streets were downgraded in classification and a few were upgraded. However, no increase is necessary for these changes. Staff is proposing a recalculation of Street Oversizing fees to include these changes. The overall result is a 13.8% increase in Street Oversizing fees. Ordinance No. 197, 2004 was adopted5-2 (Nays: Councilmember Weitkunat and Mayor Martinez) on First Reading on December 7, 2004." City Manager Atteberry stated staff was available to answer any questions. Councilmember Kastein stated he had received some information regarding Loveland's impact fee rebates and that he would like additional information regarding the amounts, when such rebates had 339 December 21, 2004 been used, and what the total rebate amount had been. He stated the issue was the fairness of impact fees and the rates compared to other cities. Matt Baker, Street Oversizing Coordinator, stated he would obtain the requested information. Mayor Martinez asked what the street oversizing fee would be for a business, house, etc. and what that would add to the cost of housing or a business on average. Baker stated the street oversizing fee would increase about 13.8% and that would add about $280 per single-family dwelling unit and about $1.50 per square foot for a high retail trip generator. Mayor Martinez asked what this would mean for an average building, for instance a McDonald's Restaurant. Baker stated most retail shops in that category would be up to 10,000 square feet and that this would mean up to an additional $15,000. He stated for light industrial (primary products manufacturing) the cost would be 20¢ per square foot and the size of the buildings would be in the range of about 40,000 square feet. Mayor Martinez asked why East Mulberry was being included in this package. Baker stated the East Mulberry plan added a significant amount of infrastructure to the base calculation of the street oversizing program. He stated for the program to collect the fees that it would pay out in constructing streets that it was necessary to add the total number of streets that would be reimbursed to the street oversizing program. Councilmember Weitkunat stated she did not support this Ordinance in its present form. She stated she supported the 3.6% increase for inflation but not the 10.2% increase due to the East Mulberry plan. She stated because there was no "immediacy" that she wanted to know if Council would be willing to delay the increase based on East Mulberry until June because of the difficult economic times. She stated a delay would be helpful for some businesses. Councilmember Tharp asked about the impact of such a delay and the purpose of delaying. Councilmember Weitkunat stated these were uncertain economic times and that business impacts often were not known until the first quarter of the new year. She stated a delay would provide an opportunity to see the economic and building trends for 2005 and to determine whether the impact fees would have an adverse effect. She stated there was no immediate need to adopt the 10.2% increase while the collection of dollars could have major and immediate impacts. Councilmember Tharp asked staff about the impact of a six-month delay and why it would be appropriate to put the fee in place now. Baker stated the fee collections would be approximately $275,000 for six months and that this would represent a half mile of collector street or one -eighth of a mile of four -lane arterial street. He stated the fee increase had already been delayed due to the East Mulberry plan for about six months. He stated about 90% of the property in the East Mulberry plan was in the City or eligible for annexation upon development. He stated as each piece of property developed it would develop in the City, would be subject to street oversizing fees and would be subject to street oversizing reimbursements for improvements made in accordance with the East Mulberry plan area of the Master Street Plan. 340 December 21, 2004 Councilmember Hamrick made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 197, 2004 on Second Reading. Mayor Martinez stated he would not support the Ordinance because it represented another fee and because these were difficult economic times. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Roy and Tharp. Nays: Councilmembers Martinez and Weitkunat. THE MOTION CARRIED Ordinance No. 198, 2004, Making Various Amendments to the City of Fort Collins Land Use Code, Adopted as Amended 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 Fall 2004 biannual update of the Land Use Code. This Ordinance, which was adopted 4 — 3 (Nays: Councilmembers Roy, Hamrick, and Bertschy) on First Reading on December 7, 2004, makes various amendments to the Land Use Code. BACKGROUND During the Council's discussion of this Ordinance on First Reading, Council directed staff to add drive-in restaurants as a permitted use in the N-C, Neighborhood Commercial, zone district. Council further directed that this new use be accompanied by design standards, a draft of which was contained in Council's background materials on First Reading. The Ordinance does not contain the addition of the new permitted use because the design standards have not been reviewed by the Planning and Zoning Board as required by the Land Use Code. So as to not enact two pieces of legislation pertaining to one item, both the addition of the permitted use and the design standards will be processed in tandem. In order to comply with the Land Use Code, staff will be taking the design standards to the next Planning and Zoning Board hearing on January 20, 2005 to be immediately followed by two readings of a new Ordinance before City Council in February. The new Ordinance will contain the addition of the permitted use to allow drive-in restaurants in the N-C zone. By keeping the addition of the permitted use and the new design standards together in one single comprehensive Ordinance, the enabling Legislation for drive-in restaurants is contained within one, fully -integrated piece of legislation. This schedule has been reviewed by the Sonic franchisee. They have indicated that the schedule provides a comfortable timeframe to fulfill their contractual 341 December 21. 2004 obligations. The attachment includes a full description of the revised design standards. These design standards have been revised after review and discussion with Sonic. Along with the addition of the permitted use, these revised design standards will form the basis of the materials to be forwarded to the Planning and Zoning Board on January 20, 2005." City Manager Atteberry introduced the agenda item. Cameron Gloss, Current Planning Director, presented background information regarding the agenda item. He clarified that staff had brought forward the package for expansion of the permitted use in the NC zone to allow a drive-in use and design standards. He stated the City Attorney had indicated to Council that there may be different options. He stated the third paragraph of the agenda item summary indicated that staff had conferred with the Sonic franchisee regarding the timing of the design standard adoption and the Code change that was before the Council. He stated the franchisee would prefer that the Council make the Code change to allow the drive-in use in the NC zone and consider specific design standards at a later time. He clarified with regard to the last paragraph in the agenda item summary that the franchisee had expressed concerns regarding the draft design standards prepared by staff. He stated the standards included in the agenda packet were draft standards that would be discussed by the Planning and Zoning Board for recommendation to the Council. He stated staff had received follow-up comments on the "skinny house" issue from a speaker at the last hearing who indicated that he knew of a development application that would be coming in for multiple units that were extremely narrow. He stated staff had reviewed drawings submitted by that speaker and did not see a need to expand the Code provision to developments other than single-family houses. Scott Beard, Sonic Drive -In owner, 1301 West Elizabeth Street, stated his wishes were clearly expressed by Mr. Gloss and that he had met twice with Mr. Gloss. He asked that Council consider adding drive-ins to the NC zone. Pat Reeves, 810 Maple Street, stated he commented at the December 7 meeting about "skinny houses" on behalf of the Capital Hill neighborhood to ask that the language be extended to include all permitted uses in the NCM zone. He stated staff disagreed with that recommendation and argued that "shoehoming" of three-plexes, four-plexes and other permitted uses was not an immediate threat. He asked that Council close the "loophole" in the law. He stated the issue was whether two or more units could be built with less than 100 feet under the "loophole." He stated he had e-mailed a "hypothetical' site plan to the Council that would meet the majority of the Land Use Code requirements to demonstrate that it would be a "simple matter" to take advantage of the "loophole" in the law. He stated the Wood Street Lofts project began the development review process in May 2004 and that this project sought to place three four-plexes side by side on a parcel with less than 150 feet of street frontage. He stated this project would set a precedent and that such projects could represent a "threat to the character of Old Town." Kelly Ohlson, 2040 Bennington Circle, stated the raptor buffer zone change to zero had been largely 342 December 21, 2004 unopposed because many recognized that it was "unworkable" to have the buffer for a single endangered species. He stated a zero buffer was 300 feet less than Windsor's standard. He asked that the Council request that staff develop a non -regulatory raptor protection program. He stated he did not want to see the phrase "to the extent reasonably feasible" to be added to the language relating to trash enclosures because it would work against the intent of the Ordinance to help with waste stream reduction. Margit Hentschel, 216 Wood Street, expressed concerns regarding the changes relating to raptor buffer zones. She stated the current buffer standard requirement was a compromise viewed as a workable solution to protect raptors to some extent. She stated the zero buffer would serve the developers. She stated raptors were an "indicator species" for the community and that they needed to be protected as in -fill development proceeds. She expressed a concern that many environmental groups did not know that this change was being considered. Councilmember Tharp stated she was concerned about the "skinny houses" because of the example presented by Mr. Reeves. She asked why the "loophole" should not be closed when it was demonstrated that other permitted uses could be a problem. Gloss stated most other jurisdictions with intensive in -fill development did not experience problems with other uses. He stated staff did not believe that there was a need at this point to extend the requirement to other uses. He stated the Wood Street Lofts project would require a series of modifications to meet standards. He stated if a project was incompatible that it could be determined to be out of character with the surrounding neighborhood because it did not meet the modification criteria. Councilmember Tharp asked if there would be anything wrong with applying the provision to all uses. Gloss stated as a general rule an effort was made not to add "layers" to the Land Use Code to make it more complex. Councilmember Tharp stated she had seen bad examples of "skinny houses" in New Orleans. Councilmember Kastein asked for confirmation that the drive-in use was not among the Code changes in the Ordinance and if the City Attorney was suggesting that it could come back along with the design standards at another time. City Attorney Roy stated it was not in the Ordinance and that there were two alternatives to address the issue. He stated if the Council amends the Code to include drive-ins as a permitted use in the NC zone district without design standards, it would create an opportunity for someone to apply and gain a vested right to develop that kind of use in the NC zone district without design standards. He stated to guard against that, the two alternatives would be to amend the zone district with an asterisk saying that the drive-in portion of the Ordinance would not take effect unless and until the design standards had been approved by the Council; or to wait to amend the Ordinance to allow for the permitted use until the design standards have been developed. He stated he had a "slight preference" for the second alternative. He stated either option would guard against the concern of someone gaining a vested right to develop without the design standards. Councilmember Kastein asked if staff's preferred option was before Council in the Ordinance. City Attorney Roy reiterated that he had a "slight preference" for that option and stated it was a decision 343 December 21, 2004 for the Council. He stated the benefit of the two-step approach would give people some assurance that the change was in the works. He stated both alternatives would equally address the concern and that staff could make it work either way. He stated language was included in Council's packet if the decision was to proceed with the option that would allow drive-ins in the NC zone district.. Councilmember Roy stated the packet outlined changes to Section 21 and Section 23 dealing with the "skinny house" issue. He asked about the differences in those two sections. Gloss stated Section 21 related to the NCM zone and Section 23 related to the NCB zone. Councilmember Roy asked how the language would be changed if all "skinny development" was to be prohibited. Gloss stated the first sentence would be expanded to include multifamily dwellings and other nonresidential uses. Councilmember Hamrick asked for confirmation that the City Attorney's preferred option relating to drive-ins was included in the Ordinance as presented to the Council. City Attorney Roy stated the Ordinance as drafted did not include the change to include drive-ins as a permitted use in the NC zone district. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Ordinance No. 198, 2004 on Second Reading. Councilmember Tharp made a motion, seconded by Councilmember Roy, to amend Ordinance No. 198, 2004 to allow drive-in restaurants without drive -through facilities to be included with the stipulation that design standards be added, using the wording provided by the City Attorney for Section 29. City Attorney Roy read for the record the amended language of Section 29 of the Ordinance: "That Section 4.19(13)(3)(c) of the Land Use Code is hereby amended to read as follows: Commercial retail uses (1) supermarkets, (2) nightclubs, (3) bars and taverns, (4) entertainment facilities and theaters, (5) drive-in restaurants (without drive -through facilities)* ...... with the footnote designated by the asterisk (*) to read as follows: "*This Subsection (5) will become effective only upon the adoption by City Council of design standards in the Land Use Code governing the development of such drive- in standards. Accordingly, the Subsection (5) shall not be published in the Land Use Code until such time as the design standards have been adopted by the Council." Councilmember Bertschy stated if the motion to amend passed, it would mean that any application that might come in, starting with the effective date of the change, would be held in abeyance until such time as the standards were adopted. Roy stated in his opinion drive-in restaurants would not be a permitted use at this point in time. Gloss stated a development application took time to prepare and that there was a mandatory neighborhood meeting. He stated a development application could not be taken for a drive-in use in the NC zone until the standards had been approved. Councilmember Bertschy asked if this would assure an applicant that an application could be made once the standards were in effect. City Attorney Roy clarified for the record that there would be no 344 December 21, 2004 legal effect unless and until the design standards are adopted. He stated there would be no window of opportunity for someone to gain a vested right to this kind of use until that would occur. He stated this action might "create the expectation that this was in the works." Councilmember Kastein stated he "slightly favored" the approach recommended by the City Attorney because it was the "most conservative." He stated he would prefer to see the drive-in change and the design standards in "one shot." He noted that the language as proposed in Councilmember Tharp's motion would also work. Councilmember Hamrick stated he would prefer to see the drive-in amendment when the design standards were complete. He noted that it could take some time to develop the design standards. Councilmember Tharp stated Council had discussed whether this was a reasonable use and agreed that a drive -through was a reasonable use in that area. She stated the amendment would clarify and give direction that the use would be included in the Land Use Code. She stated she believed that the motion gave more specific direction. Councilmember Weitkunat stated nothing would happen until the design standards were in place. She stated this was a "futile debate" and that she would like to proceed with the vote. The vote on the motion to amend was as follows: Yeas: Councilmembers Bertschy, Martinez, Roy, Tharp and Weitkunat. Nays: Councilmembers Hamrick and Kastein. THE MOTION CARRIED ("Secretary's Note: The Council took a brief recess at this point.) Councilmember Hamrick made a motion, seconded by Councilmember Tharp, to amend the Ordinance to add to the language relating to "skinny houses" the wording "extend the proposed changes to all permitted uses." Councilmember Roy stated he would support the motion to amend. He stated even though the City was "not under siege" with this kind of development that the neighborhoods were concerned about the issue because it would fundamentally change the concept of design in Fort Collins. Councilmember Bertschy stated he would like clarification on where that wording would be placed in the Ordinance. Gloss stated Section 4.7(E)(1) would read: "Minimum lot width shall be forty (40) feet for all permitted uses." He stated Section 4.8(1))(6)(a) would read: Minimum lot width shall be forty (40) feet for all permitted uses." Councilmember Kastein stated he would not support the motion to amend. He stated the Code should not be any more restrictive than it is unless there is legitimate reason to do so. He stated he supported the staff recommendation that there was no need for this change. He stated he would not 345 December 21, 2004 support a Code that would be more restrictive than the staff's recommendation "on the spur of the moment." Councilmember Hamrick stated he would support the motion to amend because he wanted to support the neighborhood's concerns. Councilmember Roy stated citizens in District 6 had organized to support a change similar to this. The vote on the motion to amend was as follows: Yeas: Councilmembers Bertschy, Hamrick, Roy and Tharp. Nays: Councilmembers Kastein, Martinez and Weitkunat. THE MOTION CARRIED Councilmember Hamrick stated he would not support the overall motion because he disagreed with the changes to the raptor buffer area. He stated he would like the support of other Councilmembers to pursue nonregulatory changes to the raptor protection program. Mayor Martinez suggested that the raptor protection program could be brought up under Other Business. Councilmember Bertschy stated he would vote against the main motion because of the raptor standards changes and because he would prefer stronger trash recycling enclosure provisions. He stated he would like to look at a system to identify "Consent Calendar" and controversial changes to the biannual Land Use Code revisions to allow the controversial changes to be voted on separately. Councilmember Roy thanked the citizens who provided input. He stated he would not support the motion because the City could "do better work" on the raptor standards and the waste stream reduction issue. He stated he would like to talk about pursuing work on the raptor protection program under Other Business. Councilmember Weitkunat supported Councilmember Bertschy's suggestion regarding a "Consent Calendar" on the Land Use Code changes. She expressed disappointment that some Councilmembers would not vote to support the Ordinance when there was agreement on 99% of the Ordinance. She stated a split decision sent a "message of discord" to the Planning and Zoning Board in its work under the Land Use Code. Councilmember Kastein spoke regarding the reasons for the history of the raptor buffer standard change. He stated the existing requirement was impractical and that the majority of the Council felt that there were hundreds of thousands of acres of natural areas where raptors could live. He stated keeping raptors in the City should not be required by the Land Use Code at great cost to landowners. He stated the Land Use Code change removed the mitigation fee and provided that a developer could not develop land where there was a nesting hawk during the nesting season for the first year. He stated the new requirement recognized the rights or property owners. He stated he would favor 346 December 21. 2004 looking at a nonregulatory approach to raptor protection to promote raptors in natural areas. City Attorney Roy read changes to Section 21 and Section 23 of the Ordinance relating to "skinny houses. He stated Section 4.7(E)(1) in Section 21 of the Ordinance would read as follows: "Minimum lot width shall be forty (40) feet for all permitted uses, except that when more than one (1) principal dwelling building is constructed on the same lot side by side along the street front, the minimum lot width shall be forty (40) feet for each such building." He stated the same change would also need to be made to Section 4.8(1))(6)(a) in Section 23 of the Ordinance. The vote on the main motion as amended was as follows: Yeas: Councilmembers Kastein, Martinez, Tharp and Weitkunat. Nays: Councilmembers Bertschy, Hamrick and Roy. THE MOTION CARRIED Items Relating to the North College Avenue Urban Renewal Plan, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A. Resolution 2004-151 Adopting the North College Avenue Existing Conditions Study and Making Findings Determining an Area Within the City of Fort Collins to be a Blighted Area and Appropriate for Inclusion in an Urban Renewal Project. B. Resolution 2004-152 Making Findings and Approving the Urban Renewal Plan for the North College Avenue Corridor. Before the City Council can adopt an Urban Renewal Plan for any part of the city, the Council must determine the plan area to be a slum, blighted area, or a combination thereof, and designate such area appropriate for an urban renewal plan. Adoption of Resolution 2004-151 will satisfy the requirements of CRS 31-25-103(2) and approve the North College Avenue Existing Conditions Study (a.k.a. "Blight Study") and declare the North College Avenue Corridor blighted according to the criteria in State Law governing Urban Renewal Authorities. Adoption of Resolution 2004-152 will approve the North College Avenue Urban Renewal Plan which will assist in elimination of the slum and blight conditions within the North College Avenue Corridor. BACKGROUND In 1982, the Fort Collins City Council created an Urban Renewal Authority (URA) and designated itself as the governing board (known as the "Authority"). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions related to certain "blight factors" in the community. State law gives the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds and acquire property voluntarily or by eminent domain, among others. Urban renewal projects may be financed 347 December 21. 2004 in a variety of ways. URAs are authorized to borrow money, issue bonds, and accept grants from public or private sources. The principal method of financing urban renewal projects is through obligations secured by property tax or sales tax increments from the project area ( "tax increment financing "). An URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. In 1995, the City Council adopted the North College Avenue Corridor Plan as an element of the City Plan, the City's comprehensive plan. Among its goals were to: • Revitalize the area to improve the "neglected commercial strip" image, and • Increase the opportunity for development and expansion of business and industry The North College Corridor was also targeted as an area for redevelopment and infill in the recently updated City Plan document. One of the outstanding concerns by property owners in the Corridor is the area's economic viability in terms of future business development and commercial growth. Several factors contribute to this issue including: lack of infrastructure improvements — particularly for storm water drainage, street connectivity, and street improvements (curbs, gutters, sidewalks, street trees, and bike lanes). Revitalization of the North College Corridor has been relatively spotty and difficult. It is clear to most that if the area is to be successful, the few tools available to municipalities, such as the URA, need to be pursued. In June of this year, the City was approached by the North Fort Collins Business Association to recognize the North College Avenue Corridor as an urban renewal project area and to create an urban renewal plan for it. Before an urban renewal plan for this area can be approved, the area must be found by the Authority (City Council) to be a blighted area as defined in State Statutes. Since June, staff has worked with a Citizens Advisory Committee, composed of business owners, business tenants, and members of the Planning and Zoning Board, to develop an Existing Conditions Study (a.k.a. "Blight Study") and an Urban Renewal Plan for the North College Corridor Area. Before the Council can officially approve the Urban Renewal Plan, the State law on Urban Renewal Authorities, specifically CRS 31-25-107(2), requires the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board for its review and recommendation as to the Urban Renewal Plan's conformity with City Plan, the City's Comprehensive Plan, which is the general plan for development of the municipality as a whole. The Council is also required to formally submit the Urban Renewal Plan to the Poudre School District Board of Education, and the Larimer County Board of Commissioners for their review. On October 5, 2004, the City Council adopted Resolution 2004-118 submitting the North College Avenue Urban Renewal Plan, and its related Existing Conditions Study, to the Poudre School District Board of Education and the Larimer County Board of Commissioners in accordance with the notification requirements contained in CRS 31-25- 107(9)(d). 9M December 21, 2004 North College Avenue Existing Conditions Study (a.k.a. "Blight Study") The purpose of the North College Avenue Existing Conditions Study (a.k.a. "Blight Study") was to evaluate and determine whether the North College Avenue Corridor constitutes a "blighted area" as defined in the CRS 31-25-103(2): "Blighted area" is defined as follows: "Blighted area" means an area that, in its present condition and use and, by reason of the presence of at least four of the following factors, substantially impairs or arrests the sound growth of the municipality, retards the provision ofhousing accommodations, orconstitutes an economic or social liability, and is a menace to the public health, safety, morals, or welfare: (a) slum, deteriorated, or deteriorating structures; (b) predominance of defective or inadequate street layout; (c) faulty lot layout in relation to size, adequacy, accessibility, or usefulness; (d) unsanitary or unsafe conditions; (e) deterioration of site or other improvements; (f) unusual topography or inadequate public improvements or utilities; (g) defective or unusual conditions of title rendering the title nonmarketable; (h) the existence of conditions that endanger life or property by fire and other causes; (1) buildings that are unsafe or unhealthy for persons to live or work in because of building code violations, dilapidation, deterioration, defective design, physical construction, or faulty or inadequate facilities; (j) environmental contamination of buildings or property; or (k.5) the existence of health, safety, orwelfarefactors requiring high levels of municipal services or substantial physical underutilization or vacancy of sites, buildings, or other improvements; (1) if there is no objection by the property owner or owners and the tenant or tenants of such owner or owners, if any, to the inclusion of such property in an urban renewal area, "blighted area "also means an area that, in its present condition and use and, by reason of the presence of any one of the factors specified in paragraphs (a) to (k.5) of this subsection (2), substantially impairs or arrests the sound growth of the municipality, retards the provision of housing accommodations, or constitutes an economic or social liability, and is a menace to the public health, safety, morals or welfare. for purposes of this paragraph (1), the fact that an owner of an interest in such property does not object to the inclusion of such property in the urban renewal area does not mean that the owner has waived any 349 December 21. 2004 rights of such owner in connection with laws governing condemnation. The study (copy attached) evaluated a wide range of conditions in the North College Avenue Corridor that are relevant to the above -listed factors. The evaluation included on -site reconnaissance, interviews, and photographic documentation involving City of Fort Collins staff from Advance Planning, Transportation, Engineering, Utilities, Fire Authority, Police, and Building Inspection departments. The study area generally corresponds to the 1995 North College Avenue Corridor Plan Study Area. It includes properties along North College Avenue within the general area bounded by: The Cache La Poudre River on the south, the Larimer- Weld Canal on the north, an irregular line generally about a quarter mile from North College Avenue on the west, and an irregular line generally extending to Redwood Street about a half mile from North College Avenue on the east. The study area encompassed 525 total acres, consists of 295 real estate parcels with a total developed/vacant land area of about 476 acres. The remaining 49 acres within the study area are in public rights -of -way (these rights -of -way comprise about 10% of the study area). The evaluation of the area identified that conditions relevant to ten (10) of the eleven (11) statutory "blight factors" were readily apparent and evident within the area, based upon direct observation and review of planning documents. The one remaining factor was: • defective or unusual conditions of title rendering the title nonmarketable. Because the presence of only four (4) factors is the threshold for a finding of "blight, " and evidence was readily apparent for ten (10) factors early in the study process, further title research was deemed to be unnecessary for purposes of the study (conditions of title are not readily apparent through on -site observation or review ofplanning documents). However, several problems with lack of legal access to parcels, lack of addresses, and questionable parcel ownership are apparent in the area, suggesting that this factor may in fact be present. However, while evidence of "blight factors" were apparent throughout the entire study area, this does not mean that every parcel exhibited evidence of the factors --some of the factors are evident on a spot basis; some on a linear basis along streets and utility lines; and some on an area basis, in vacant, neglected, or deficient locations within the area. When the factors are considered cumulatively, the entire study area is affected. In conclusion, the presence of at least four (4) statutory "blight factors" within the appropriately defined boundary, as determined by City Council, warrants a finding of a "blighted area" under the Urban Renewal Law. If the study area is determined to be such a "blighted area, " the City Council would then be allowed to establish an Urban Renewal Plan fordevelopment and public improvement projects to prevent further deterioration and blight, and to remedy "blight" conditions. Based on 350 December 21, 2004 observed evidence, interviews, and adopted planning documents, the conclusion of the study is that ten (10) of the "blight factors" established in the Colorado Urban Renewal Law, as amended, are present within the study area; and that the area, either wholly or in part, is appropriate to be defined as a "blighted area" qualified for Urban Renewal Plan remedies and activities as permitted in the statute. North College Avenue Urban Renewal Plan The North College Avenue Urban Renewal Plan (copy attached) is an urban renewal plan prepared for the Fort Collins Urban Renewal Authority (Authority) and the City of Fort Collins (the City), pursuant to the provisions of the Urban Renewal Law, CRS 31-25-101 et seq. The North College Avenue Urban Renewal Plan describes the framework for certain public undertakings constituting urban renewal projects and other authorized activities under the Urban Renewal Law in the North College Avenue Corridor area, located in the City of Fort Collins, Larimer County, Colorado. The boundary of the area to which the Plan applies includes those properties located within the same area studied in the North College Avenue Existing Conditions Study (a.k.a. "Blight Study"). The Plan was prepared for adoption by the City Council in recognition that the urban renewal area requires a coordinated strategy that addresses the elimination and prevention of the spread of blight and includes financing possibilities to accomplish the City's development objectives for improving the viability of the area. The Plan effort was originated in response to a request by existing owners in the area. Owners reached consensus and requested the establishment of a renewal plan after years of involvement in public discussion. As a group, they recognize the problems with existing development, which is outdated and substandard, and they want to stay involved in solutions that fit the area. It is the intent of the Plan for any redevelopment and other implementation actions to be done in a responsive manner, with full consideration for interests and concerns of owners in the area. The driving interest in establishment of the Plan is to begin offering tax increment financing as a tool to facilitate projects that help remedy problems. The North College Avenue Urban Renewal Plan is intended to stimulate private sector development in and around the Renewal Area. A combination of private investment, Urban Renewal Authority financing, and public investment will assist progress toward the following objectives: • To facilitate redevelopment and new development by private enterprise through cooperation among developers and public agencies to plan, design, and build needed improvements. • To address conditions in the area that impair or arrest the sound growth of the city. • To implement the Comprehensive Plan and its related elements. • To redevelop and rehabilitate the area in a manner which is compatible with and complementary to unique circumstances in the area. 351 December 21. 2004 • To effectively utilize undeveloped and underdeveloped land. • To improve pedestrian, bicycle, and vehicular circulation and safety. • To ultimately contribute to increased revenues for all taxing entities. • To encourage the voluntary rehabilitation of buildings, improvements and conditions. • To facilitate the enforcement of the laws and regulations applicable to the Urban Renewal Area. Development and redevelopment in the area is anticipated to occur incrementally over a substantial period of time. Key components of the North College Avenue Urban Renewal Plan include the ability to utilize tax increment financing for such things as providing infrastructure improvements, acquiring property, and using eminent domain for property consolidation and assembly to foster development and redevelopment projects. Specific development and redevelopment projects may be financed in whole or in part by the URA under the tax increment financing provisions of CRS 31-25-107(9)(a), or by any other available source of financing authorized to be undertaken by the URA pursuant to CRS 31-25-105. These provisions authorize tax increment financing, and which financing may be implemented on a project by project basis. The implementation of such increment financing will be performed at the time that such increment of taxation may be utilized, and in accordance with the Urban Renewal Law. The North College Avenue Urban Renewal Plan retains the option of using either the added increment of property taxes or sales taxes, or both, generated in the Renewal Area to help finance infrastructure improvements within the North College Corridor. In the event that the URA finds it necessary to purchase any real property for an urban renewal project to remedy "blight" factors pursuant to the Urban Renewal Law, the North College Avenue Urban Renewal Plan indicates the URA may do so by any legal means available, including exercising the power of eminent domain, pursuant to the Urban Renewal Law. However, according to the Plan, the power of eminent domain is to be use as a means of "last resort" and establishes a listing of conditions that have to be met prior to its use. The Plan indicates the following conditions should be met, with the understanding that the conditions are not intended to legally constrain the City's power of eminent domain: • all requirements of the Urban Renewal Law, including eminent domain procedures, have been met; • other possible alternatives have been thoroughly considered by the Authority; • good faith negotiations by the Authority andlor the project developer have been rejected by the property owner; • reasonable efforts have been undertaken to: (a) understand and address the property owner's position and his or her desires for the property and for any existing business on the site, and (b) work with the owner to either include the owner in project planning or purchase the property and relocate the owner in accordance with the Urban Renewal Law on terms and conditions acceptable to the owner. 352 December 21. 2004 Furthermore, the Plan calls far relocation assistance: • Relocation Assistance. It is not expected that the activities of the Authority will displace any person, family, or business. However, to the extent that in the future the Authority may purchase and manage property causing displacement of any person, family, or business, it shall develop a relocation program to assist any such party in finding another location pursuant to the Urban Renewal Law, and provide relocation benefits consistent with the Urban Renewal Law. There shall be no displacement of any person or business without there being in place a relocation program, which shall become a part of this Plan when adopted. In addition, the Plan calls for the establishment of a citizen advisory group with strong representation of owners in the North College Corridor area to render advice to the URA Governing Board (the Authority). Furthermore, to ensure effective communication, the Plan recommends that the group include one or two members from City Council and a member from the Planning and Zoning Board. The intent of the Plan is for the URA Governing Board to consult with the Advisory Group on all actions and decisions of the URA regarding the Plan. Notfcation Requirements On October S, 2004, the City Council adopted Resolution 2004-118 submitting the North College Avenue Urban Renewal Plan, and its related Existing Conditions Study, to the Poudre School District Board of Education and the Larimer County Board of Commissioners in accordance with the notification requirements contained in CRS 31-25-107(9)(d). A separate notification was sent to the Lorimer County Assessor's Office. Although there is no provision in the statute requiring that the Board of Education and/or the Larimer County Board of Commissioners to comment, in writing or otherwise, the school district and the county were notified that their comments would certainly be welcome. The City has not received any comments from either jurisdiction. Prior to City Council's hearing on the adoption of the Plan, thirty days notice must be published in a newspaper of general circulation in the City describing the time, date, place and purpose of the hearing, and generally identifying the Urban Renewal Area covered by the Plan, and shall also outline the general scope of the Urban Renewal Project under consideration. This notice was published in the Coloradoan newspaper on November 12, 2004. Furthermore, the City must take reasonable efforts to provide written notice by mail of the public hearing to all property owners, residents, and owners of business concerns in the proposed Urban Renewal Area at their last known address of record at least thirty days prior to the hearing. Such written notice shall contain the same information as is required to be published in the newspaper. This written notice was mailed on November 16, 2004. Plannine and Zoning Board Colorado's Urban Renewal Law requires the City Council to forward the Urban Renewal Plan to 353 December 21, 2004 the Planning and Zoning Board for "review and recommendations as to its conformity with the general plan for development of the municipality as a whole. " In other words, the Board was to consider the question of whether the Urban Renewal Plan is in conformity with City Plan. At their regular monthly meeting on October 21, 2004, the Planning and Zoning Board voted 3-2 to adopt a resolution stating that in the Board's opinion the North College Avenue Urban Renewal Plan was not in conformance with City Plan. Copies of the resolution and the Board's minutes are attached. The Planning and Zoning Board's recommendation is in the form of a resolution. The Urban Renewal Law does not require the Board to make a positive recommendation; the City Council can still adopt the North College Avenue Urban Renewal Plan at its own discretion. Because the North College Avenue Urban Renewal Plan derives its policy guidance entirely from City Plan and the North College Avenue Corridor Plan, etc., staff recommended the Planning and Zoning Board forward a recommendation to City Council that the North College Avenue Urban Renewal Plan is in conformance with City Plan. Following is a summary of the Board's concerns and assertions as interpreted by staff. One concern directly relates to the question before the Board regarding consistency with City Plan. The other concerns and assertions were more general. 1. Inconsistency with City Plan. This concern actually involves the North College Avenue Corridor Plan (North College Plan), which is a related element of City Plan as previously noted. Members cited two goals in the North College Plan as the basis for their concern: • Preserve existing "small local business" character • Continue to be an "incubator" area for business The concern stems from CAC discussions about possible future development scenarios that may, or may not be possible using the Urban Renewal Plan. This included open-ended discussion of whether shopping centers or other larger development projects would be possible. If so, then presumably those projects would demand frontage on the highway, which presumably could cause displacement of existing small businesses, which appears inconsistent with the two goals. 2. The Urban Renewal Plan puts the "cart before the horse." The concern is that the Urban Renewal Plan it is not worth putting in place at this time because it does not contain specific conclusions about development questions and issues and the North College Avenue Corridor Plan needs to be updated 3. The Urban Renewal Plan is not a panacea; it's a little band -aid. The concern is that because the URA can not solve all of the big deficiencies in the area with TIF, it is not worth doing. Plus, the Plan may mislead the Council into thinking they have solved the problems 354 December 21. 2004 when in fact the Plan can not solve all of them. 4. City Council needs to be more aggressive and pursue other problems noted in the North College Plan such as trucks, trains, and Dry Creek. The assertion is that Council has been remiss in following up the North College Plan over the last 10 years, and that this Urban Renewal Plan might be seen as a panacea. Because it will not solve all of the problems, it should not be adopted. STAFF RECOMMENDATION Staff recommends adoption of Resolution 2004-151 which will satisfy the requirements of CRS 31- 25-103(2) and approve the North College Avenue Existing Conditions Study (a.k.a. "Blight Study") and declare the North College Avenue Corridor blighted according to the criteria in State Statutes governing Urban Renewal Authorities; and staff recommends adoption of Resolution 2004-152 which will approve the North College Avenue Urban Renewal Plan to assist in the elimination of the slum and blight conditions within the North College Avenue Corridor. In response to the concerns raised by the Planning and Zoning Board, staff offers the following: "Inconsistent with City Plan (and in particular, the North College Avenue Corridor Plan".. Response: The Urban Renewal Plan says nothing to contradict the North College Avenue Corridor Plan, and therefore, City Plan. The concern involves some of the speculative discussion in Citizen Advisory Committee meetings. Two Board members were on the CAC and are familiar with the discussions. There were open-ended discussions about whether or not the Urban Renewal Plan could lead to big projects; and whether big projects might be able to incorporate existing small businesses. On the subject of the North College Plan, staff notes that other goals include: • Revitalizing the area to improve the "neglected commercial strip" image; and • Increasing the opportunity for development and expansion of business and industry. Also, Policy LU-5 states: 'Business and commercial growth —including neighborhood and community retail, regional retail if compatible in scale, regional office, and light basic industry, should be encouraged in specific areas of the Corridor". If a large development were to be proposed, staff contends that it would not necessarily be inconsistent with the North College Plan. The overall message of the North College Avenue Corridor Plan is one of growth and positive change, including support for redevelopment and economic growth with incentives. 355 December 21, 2004 2. "Cart before the horse" and 3. "it's a band aid." Response: Staff contends that the goal, from the beginning was to put a simple, minimal Urban Renewal Plan in place. The point is to capitalize on the existing consensus and support, and enable the Authority to begin accruing TIF and helping facilitate projects. It has been acknowledged all along that the Urban Renewal Plan would not resolve all questions, tradeoffs, and competing objectives. The remaining work will be ongoing. Staff contends that even if the TIF ends up only as a modest leverage tool for facilitating projects, that is not a reason to oppose it. URAs across the state have a variety of Urban Renewal Plans including modest ones with modest TIF revenue. Each plan is different. The North College Avenue Urban Renewal Plan is a unique response to a unique situation. 4. "City Council needs to be more aggressive." Response: While the City has been active in improving conditions for development and redevelopment in the North College Avenue Corridor, much remains to be done. The URA can be one tool to make improvements happen. Since 1994, some of the public improvements which have occurred include: • The Dry Creek food project • The RR Track Consolidation Project • The Interstate Trucking Roundtable and Bypass Studies • The North College Access Management Plan • Soft Gold Park (west end of Hickory Street) • The two major bike trail connections with bridges • The interim asphalt trail along the west side of North College • The North College Bridge Enhancements • The redevelopment of the dilapidated "Pizza Power" buildings at Vine/College • New Fire Station #12 • The Zone District revisions for the College/Willox site • The recent Jefferson -Vine Street Improvements Project • The recent repaving of east Willox Lane Many of these projects have been significant undertakings requiring special attention and funding. All address deficiencies of original development by retrofitting urban improvements. The area has seen continuous implementation of the following North College Avenue Corridor Plan goal: "Continue to support and build momentum for other mutually beneficial planning efforts regarding such things as Dry Creek food control, emergency response services, interstate trucking, access control, and the ongoing development of north Fort Collins generally. " 356 December 21, 2004 City Manager Atteberry introduced the agenda item. Ken Waido, Chief Planner, presented background information regarding the agenda item. He stated Resolution 2004-151 would adopt the North College Avenue Existing Conditions Study and that Resolution 2004-152 would adopt the Urban Renewal Plan for the North College Avenue Corridor. He stated the boundaries of the area covered by the Plan were from Vine Drive on the south up to the Eaton Ditch on the north, with College Avenue running through the center of the area, and a half mile east of College Avenue to Redwood Street and generally one -quarter mile west of College Avenue with a half -mile appendage along Hickory Street. He stated State law required the area to be declared blighted according to the criteria in the law before inclusion in an Urban Renewal Plan area. He stated the Existing Conditions Study found 10 of the blighting factors defined in the State law and that only four were required to declare the area blighted. He stated the criteria included deteriorating structures, inadequate street layout, faulty lot layout, deterioration of site or other improvements, inadequate public improvements, unsafe buildings and underutilized properties. He stated the Urban Renewal Plan was designed to help remedy the blighting factors. He stated the plan was designed to facilitate development and redevelopment activity, remedy the conditions, help implement the City Comprehensive Plan, encourage development complementary to the area's unique circumstances, utilize the undeveloped and underdeveloped land, improve circulation and safety, encourage rehabilitation, and facilitate laws and regulations included in the State statutes. He stated the intent was to eliminate the blight conditions that were prevalent throughout the area. He stated the following activities were eligible under the Plan: public improvements (infrastructure), purchase of property by the Urban Renewal Authority including the use of eminent domain, demolition of buildings, relocation assistance, etc. He stated the standards and procedures that would be used for development or redevelopment were already contained in the Land Use Code and that any projects would be processed through the existing development review process. He stated the Plan was written to conform to the urban renewal law requirements and City Plan. He stated a property tax increment was a major reason for establishing the Plan. He stated the Plan also included the potential use of sales tax on a case -by -case basis. He stated a Plan Advisory Group assisted with development of the Plan. He stated the Plan called for establishment of a Plan Advisory Group (representing owners, properties in the plan area, one or two City Councilmembers, and a member of the Planning and Zoning Board) to advise the Urban Renewal Authority. He stated the draft plan was referred to the Planning and Zoning Board for review and recommendation regarding conformance with the Comprehensive Plan. He stated the Board voted 3-2 to adopt a Resolution stating that in the Board's opinion the Urban Renewal Plan was not in conformance with City Plan. He stated some of the Board's reasoning was that the Plan would be inconsistent with North College Corridor Plan goals and objectives, the North College Corridor Plan needed to be updated, the Urban Renewal Plan would be a "band-aid"approach, and the Council should pursue other actions dealing with some of the North College Avenue issues such as trucks, trains and the Dry Creek floodplain. He stated staff's response to the Board was that there were other goals in the North College Corridor Plan in addition to those pointed out by the Board, that the Urban Renewal Plan was a "minimal" type of plan designed to meet the minimum requirements, that the Plan was one tool to help correct the problems in the area, and that there had been significant actions undertaken by the City in the last 10 years to help improve the North College area. He stated the notifications required by State law 357 December 21. 2004 had been done. He stated the North College Business Association supported the Urban Renewal Plan. He stated the Association would like the Council to commit future sales taxes to the Urban Renewal Plan area rather than leaving it on a case -by -case basis. He stated there were concerns about eminent domain and that the Plan had been written to provide for the use of eminent domain as a "last resort." He stated the Association was urging the Council to consider expanding the boundary of the area to include a quarter section of land east of Redwood Street from Conifer on the north to Vine on the south and to L.emay Avenue on the east. He stated staff had begun to analyze that area and the boundary could be changed at some point. Troy Jones, 223 North College Avenue, spoke in support of the Urban Renewal Authority for North College Avenue. He stated this was the "right tool at the right time" to make things happen on North College Avenue. He stated tax increment financing would allow North College Avenue, to be competitive in the regional market and would allow development that would not otherwise happen. He stated redevelopment would become possible because of the funding mechanism. He stated this would help small business/property owners and would facilitate development within the Growth Management Area. Dean Hogge, President of the North Fort Collins Business Association, supported the Urban Renewal Plan. He stated the Plan would help bring North College Avenue up to the standards of the rest of the City and improve the business climate of the area. He stated eminent domain should only be used as a last resort. He asked that the Council consider some type of sales tax increment financing to help make the Plan a success by providing additional funding for infrastructure improvements. He asked that Council support the Urban Renewal Plan. Mike Kroneberger, General Manager of North College Motors, stated he also represented Janet Haas, the owner of North College Motors. He stated he was in favor of upgrading North College Avenue. He stated Fort Collins was a "small town" comprised of families and small businesses. He stated the North College Corridor Plan was designed to incubate and foster small business. He stated one negative thing that could come out of the Urban Renewal Plan was the use of eminent domain. He stated the Urban Renewal Authority's use of eminent domain could turn out to be a subsidy for a large business at the expense of small businesses. He stated his business was located at the corner of a large piece of property. He stated he would like his business to coexist with potential development. He stated the use of eminent domain could hamper that coexistence if a larger business decided it did not want a used car dealership on the corner. He asked that the Council not endorse the elimination of small business for the implementation of big business. He asked that the Council foster an environment in which small business could coexist with new development and big business. He stated big businesses that could come into the area were not unique. He asked that the Council consider whether a big business was needed for survival of the area or whetherother options were available. He stated he would like to see new businesses that would complement the area. He stated he did not want to see the City become an advocate for big business. Vaughn L.otsenheiser, North Fort Collins Business Association, spoke in support of the Urban Renewal Plan. He stated eminent domain was the largest issue and that it was the consensus of most Association members that there would be "judgment" made with regard to the attraction of new 358 December 21, 2004 businesses. He stated this was one too] to "bring the north side of the City along." Councilmember Hamrick asked if approval of the Urban Renewal Plan would establish any sales tax or increment financing rates. Waido stated adoption of the Plan would mean that the County Assessor would set a base for a property tax increment. He stated any improvement to a property would then create an increased property tax on that property and that increase would then be part of the increment that would be captured. He stated Council was not being asked to make a decision regarding the sales tax increment at this point. He stated the Plan indicated that the Council would consider using a sales tax increment on a case -by -case basis for development and redevelopment projects. Councilmember Hamrick stated he was surprised to find that the City had no exterior building maintenance or appearance standards. He asked if that had ever been considered by the City. Clark Mapes, City Planner, stated Code Compliance dealt with safety and health hazards and with issues such as rubbish. Councilmember Bertschy asked if there was a procedure for condemnation of buildings that did not meet certain standards. City Attorney Roy stated there was a Dangerous Building Code in place. Councilmember Bertschy stated one speaker indicated that there should not be a "supermarket on every comer." He asked if City Plan controlled this in the spacing requirements. Waido stated City Plan required spacing of neighborhood centers. He stated a change was approved to the zoning on North College Avenue to allow grocery stores north of Willox. Councilmember Weitkunat stated the issue before Council was whether the existing conditions warranted a determination of blight and whether the Plan should be adopted to remedy the situation. She asked how the plan would be implemented to address some of the concerns that had been expressed regarding a balance between big business and small business. She asked who would determine that balance. Joe Frank, Director of Advance Planning, stated implementation was envisioned to be on a case -by -case basis in response to applications for development proposals. He stated under another model the Urban Renewal Authority would solicit and put together projects. He stated the City would follow the first model of responding to project proposals. Councilmember Weitkunat noted that there would be an Urban Renewal Authority. Frank stated project proposals would be submitted to the Council acting as the Urban Renewal Authority and that the Authority would decide on a case -by -case basis whetherto use tax increment financing to support the project. He stated the Authority would have discretion to decide how the money was to be spent. Councilmember Weitkunat noted that there would be a process to be followed. Frank stated if eminent domain was used, there would be a process to be followed. He stated other Urban Renewal Authorities had indicated that it was important for the Authority to have the power of eminent domain but that it would be used "sparingly." He stated eminent domain could work to the advantage of the property owner in some cases. He stated tax increment financing would be the main too] used by the Authority to finance public infrastructure. 359 December 21, 2004 Councilmember Tharp asked about a "squiggly" parcel at the northeast corner of the plan area. Waido stated the vacant piece of property was zoned Medium Density Mixed Use Neighborhood and was included in the plan area to help support development and redevelopment in the area. He stated this parcel and one other vacant parcel in the plan area were planned for residential. Frank stated the North College Corridor Plan area was larger and included both City and County land. He stated the Urban Renewal Plan could only include City land and that the County land adjoining the vacant parcel could be annexed at some point. Councilmember Tharp expressed a concern that the boundary could be expanded as far east as Lemay if the focus was to help the North College business corridor redevelop even though such vacant areas had the potential to generate more tax increment. She asked if the area to the east was primarily undeveloped land. Waido replied in the affirmative. Councilmember Tharp noted that expanding the boundaries to bring in undeveloped land would create additional infrastructure costs. Waido stated those issues were being discussed during the discussion about future boundary amendments. He stated the issue was that the tax increment might be requested for improvements outside of the North College corridor. He stated criteria would have to be considered before additional area could be declared to be blighted. Councilmember Tharp stated there could be concerns regarding whether primarily vacant land was legitimately "blighted." She asked if boundary changes could be brought back in the future. Frank stated this was on the work plan because Council had given direction at the study session to take a look at the issue separately. He stated any boundary amendment would come back to the Urban Renewal Authority, that the Urban Renewal Plan would need to be updated and that the blight study would have to be updated. Councilmember Kastein asked if the specifics regarding the use of eminent domain would be included in a future ordinance. Frank stated the proposed Resolution had references to eminent domain and that there would be no ordinance. Councilmember Kastein asked if the tax increment would be determined on a case -by -case basis. Frank stated the spending of the tax increment would be determined case -by -case by the Urban Renewal Authority. Councilmember Kastein noted that the entire property tax for any new development would be part of the increment. He asked if there had been an assessment of the cost would be for the entire Urban Renewal Authority for development that might occur and how the City would pay for the costs if the money would no longer be available from the property tax collected. Mapes stated estimates had been done regarding the potential increment. He stated this should not be viewed as a cost to other entities since this is development that would not have occurred. He stated over 25 years the increment would be used to facilitate, stimulate and leverage needed development to help finance needed public improvements. He stated after that period of time the increased property tax would go to taxing entities. He stated the tax increment could be as much as $3 million per year based on full bui Id -out of the 500 acres in the area. He stated 237 acres were completely undeveloped and that 360 December 21, 2004 other acres were barely developed. He stated the best estimate was in the "low millions" per year. Councilmember Kastein asked if the money could be used to pay for police officers. Frank stated one Urban Renewal Authority in Arvada used part of the money to increase police coverage in the Old Town area. Councilmember Kastein asked if there were any restrictions on how the money would be spent. Frank stated the intent was to use the money for redevelopment and the removal of blighted conditions. Mapes stated the Urban Renewal Authority would have wide latitude on spending. Councilmember Kastein asked if input had been received from the School District and Latimer County. Waido stated staff met with decision makers for both entities and that both understood the implications of tax increment financing to their entities. Councilmember Kastein asked if the School District had any objections. Waido stated the School District raised no objections and had no comments. Councilmember Kastein stated he had concerns about the use of eminent domain in relation to existing businesses. He asked if the concerns of small businesses had been alleviated. Mapes stated the intent of the plan had been completely conveyed with regard to the use of eminent domain. Councilmember Kastein stated he would prefer to see language that specified that eminent domain would not be used in the case of a business that had been there for many years as opposed to property purchased on speculation because of the new plan. He asked if that kind of subjective criterion could be used to evaluate the use of eminent domain. Mapes stated the Urban Renewal Authority would need to consider those kinds of details. Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Resolution 2004-151. Councilmember Bertschy stated much progress had been made to reach this point. He stated the north side of town needed to have a "better playing field" and the needed infrastructure. Councilmember Roy stated this part of the community needed to be on "equal footing" with the rest of the community. He stated this plan would provide an opportunity to have a "unified" Fort Collins. He thanked those who had been involved in bringing this to this point. He stated the outlook for north Fort Collins was "bright." Councilmember Hamrick thanked Councilmember Kastein for his line of questioning about the impacts on the School District and the County. He stated such impacts needed to be considered in the City's decision making. He stated he wanted to see a continued focus on the "net gain" and a comparison of revenue and costs (police, fire, schools, etc.). He cautioned over optimism in bringing projects forward for consideration. He stated in most cases he was not in favor of using condemnation. He stated he was a "firm believer in small businesses" and that eminent domain 361 December 21, 2004 should be used sparingly. He stated this was no "quick fix" and was just one tool. He stated strong analysis was needed as this proceeded. He stated he was not in favor of expanding the boundaries to include "vacant fields." Councilmember Tharp stated this was the right direction. She stated an Urban Renewal Authority would set criteria and help the business community and residents of that area "have control over what happens to that area." She stated this would add some resources in an area that needed them. She stated the City had made some investment in that area i.e. the $ 7 million Dry Creek basin improvements. She stated this would be one more way to approach solutions for this area. Councilmember Weitkunat stated the first Resolution dealt with a find of facts that this area was blighted. She stated the blight conditions were "obvious" in this area. Mayor Martinez stated this had been needed for a long time. He stated North College Avenue was a "gateway" to the community. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Councilmember Bertschy made a motion, seconded by Councilmember Tharp, to adopt Resolution 2004-152. Councilmember Weitkunat stated she was "delighted" to support the motion. She stated it was time to help the area move forward. She stated the Urban Renewal Authority brought hope to the small businesses in the area. She stated it was only one tool rather than a "magic wand." She stated some elements of the plan would need to be refined and fine tuned i.e. the tax increment, the boundaries and eminent domain. Councilmember Kastein stated this was needed for North College Avenue. He stated he would like more information about the money collected from that area and what was being reinvested. He noted that the money apparently could be used at the discretion of the Authority for things like police and fire protection to plug some of the "gaping holes" in City services. He stated he supported the North College businesses and that this was a "small step in the right direction." Mayor Martinez stated this was a step in the right direction. He stated he wanted to see North College "build out." The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED 362 December 21, 2004 Items Relating to a Citizen -Initiated Ordinance Relating to the Discontinuation of Fluoridation of the City Water Supplies, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A. Presentation of a Petition Relating to Citizen -Initiated Ordinance No. 001, 2005 (Relating to the Discontinuation of Fluoridation of the City Water Supplies) Certified by the City Clerk as Sufficient for Placement on a Regular Municipal Election Ballot. (No Action Needed) B. First Reading of Ordinance No. 203, 2004, Relating to the Discontinuation of Fluoridation of the City Water Supplies. (Option 1) Resolution 2004-153 Submitting Proposed Citizen -Initiated Ordinance No. 001, 2005, Relating to the Discontinuation of Fluoridation of the City Water Supplies to a Vote of the Registered City Electors at the Next Regular Municipal Election on April 5, 2005. (Option 2) The City Clerk's Office received an initiative petition on December 3, 2004, which has been determined to contain a sufficient number of signatures to place the initiated measure before the registered electors of the City. Pursuant to the City Charter, upon presentation of an initiative petition certified as sufficient by the City Clerk, the Council must either (1) adopt the proposed ordinance without alteration within 30 days (Option 1); or (2) submit such proposed measure, in the form petitioned for, to the registered electors of the city (Option 2). If the Council chooses to submit the proposed measure to the voters, Resolution 2004-153 submits the measure to the voters and establishes the ballot language for the measure. BACKGROUND The City Clerk's Office has certified a sufficient number of signatures on an initiative petition received on December 3, 2004. Under Article X of the City Charter, 2,601 signatures of registered electors (at least 10% of the total ballots cast in the last regular City election) are required to place an initiative on a regular election ballot. Upon presentation of an initiative petition certified as to sufficiency by the City Clerk, the Council must either adopt the proposed ordinance without alteration or submit the proposed measure in the form petitioned for, to the registered electors of the city. The purpose of the initiated measure is to repeal Section 26-50 of the City Code in its entirety so as to prohibit any person, agent or any public or private water system from adding any fluoride or fluorine -containing product, substance or chemical to the public water supply which is intended to cure, mitigate, treat or prevent any disease in man above the general purpose of making the water 363 December 21. 2004 more potable. " City Manager Atteberry introduced the agenda item. City Clerk Krajicek presented background information regarding the agenda item. She stated on December 3 the City Clerk's Office received an initiative petition relating to the discontinuation of fluoridation of the City's water supply. She stated the petition had been determined to contain a sufficient number of signatures to place the measure before the registered voters of the City. She stated the Charter required that the Council had two options: to adopt the proposed Ordinance without alteration within 30 days (Option 1), or to submit the measure to the registered electors of the City (Option 2). She stated the Resolution in Option 2 would submit the measure to the voters in April and establish the ballot language for that measure. She stated the Council must decide between Option 1 and Option 2. Mayor Martinez stated each participant would have three minutes to make comments. Pati Caputto, 3932 John F. Kennedy Parkway, President of Clean Water Advocates, the group responsible for this initiative, stated water fluoridation was not safe and effective. She stated the more than 90 petition circulators were not paid to obtain the required number of signatures and circulate educational materials and that the group was offering educational forums on the toxic and carcinogenic effects of fluoridation. Linda Shetrod, 825 Milan Terrace Drive, Vice -President of Clean Water Advocates, stated infants were being "overdosed with fluoride." She stated current fluoride safety levels were established without considering all cumulative sources of fluoride. She stated fluoridation was a controversial issue, that the Council was split 4-3, that the Water Board recommended that fluoridation be stopped, and that the Health Department recommended continuation of fluoridation. She stated there were many unanswered questions. Gina De Shaes, Fort Collins nurse, expressed concerns about the toxicity of fluorides for infants. She stated the community was being "medicated without informed consent" due to fluoride in the water supply. Tim Sherrod, 825 Milan Terrace Drive, President of Savant Solutions (a management consulting company), questioned why government at all levels continued to push for fluoridation when there was so much controversial and conflicting data. He spoke regarding the toxicity of industrial waste byproducts (fluoride) added to drinking water. Willow (Judy) Clemons, 1122 McHugh Street, herbalist, spoke in favor of the initiated Ordinance and stated the Centers for Disease Control had conceded that the benefits of fluoride use were primarily in topical applications. Jerry Keltz, resident of Council District 3, urged the Council to adopt the initiated Ordinance. He stated ingesting fluoride should be a matter of individual choice rather than mandated for all through 364 December 21, 2004 drinking water fluoridation. Carli Connally, 451 East Boardwalk Drive, stated the levels of fluorides were building up in the environment and food supplies. She stated City water was currently fluoridated at a level of 1 part per million and that fluoride levels in lettuce and other foods were as high as 180 parts per million. She stated fluorides were a "slow poison" and that government should not impose "nutritional beliefs" upon citizens by adding artificial substances to the public water. Jane Query, massage therapist, stated "independent voices in scientific research" hadbeen "silenced" about the fluoridation issue when they issued information about the toxic and carcinogenic effects of fluoride to protect longstanding government positions about fluoridation. Virginia Brown, RN (retired), stated fluoride was a "toxic drug" that had never been approved by the FDA for any human use. She stated fluoride was being added to "everything" now and that there was no way to tell how much fluoride an individual was ingesting every day. Yvonne Longacre, LPN/paralegal, stated she was forced to install expensive filtration equipment to remove fluoride from her drinking water because of her diabetic condition. She stated she also had medical expenses resulting from fluoride in the drinking water. Councilmember Roy made a motion, seconded by Councilmember Hamrick, to adopt Ordinance No. 203, 2004 on First Reading (Option 1). Mayor Martinez asked if the intent of the motion was to adopt the Ordinance rather than referring it to the voters. Councilmember Roy replied in the affirmative. Councilmember Weitkunat stated she would not support the motion and that the measure should be submitted to the voters. Councilmember Bertschy agreed with Councilmember Weitkunat and congratulated Clean Water Advocates on its successful petition drive. He stated this was a divisive issue for the Council and the community. He stated the citizens needed to decide this issue. Councilmember Roy stated the issue would create a great deal of discussion prior to the April election. He stated fluoride "might" be good for teeth and that the issue was one of "informed consent" i.e. giving medication to citizens "indiscriminately and without a license." He stated a split Council probably reflected a split community. He stated the City's mission should be "safe and clean" water delivery to the citizens. He stated it was not the City's job to provide fluoride, even if it was helpful. Councilmember Kastein stated it would be "poor government" to approve the Ordinance because Council went through a lengthy process to discuss the topic and decided on a split vote to continue 365 December 21. 2004 fluoridation. He thanked those who spoke in opposition to fluoridation and noted that the proponents of fluoridation were not present to speak. He stated he would not support the motion. Mayor Martinez stated information about fluoridation research was available on the City's website. He stated this measure should go to a vote of the people. The vote on the motion was as follows: Yeas: Councilmembers Hamrick, Roy and Tharp. Nays: Councilmembers Bertschy, Kastein, Martinez, and Weitkunat. THE MOTION FAILED Counci 1 member Kastein made a motion, seconded by Councilmember Bertschy, to adopt Resolution 2004-153 (Option 2). The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Martinez, Roy, Tharp and Weitkunat. Nays: None. THE MOTION CARRIED Resolution 2004-154, Making an Appointment to the Planning and Zoning Board, Adopted The following is staff's memorandum on this item. "EXECUTIVE SUMMARY A vacancy currently exists on the Planning and Zoning Board due to the expiration of Jerry Gavaldon's term. Councilmembers Weitkunat and Roy conducted interviews but did not agree on a recommendation for the Planning and Zoning Board. The Council interview team wishes to submit two names (John Hatfield and William Stockover) for Council's consideration for that position. Applications are attached for the two applicants being considered. " City Manager Atteberry stated staff was available to answer any questions. Councilmember Weitkunat recommended that William Stockover be appointed to the Planning and Zoning Board. She stated it was important to appoint a City resident to avoid having more County residents than City residents on a City land use board. Councilmember Roy recommended the appointment of John Hatfield and spoke regarding his qualifications for appointment. Councilmember Tharp noted that the agenda material indicated that Mr. Hatfield lived in Council District 3. 366 December 21, 2004 Mayor Martinez asked if the applicant lived outside of the City. City Clerk Krajicek stated Mr. Hatfield was a resident of the Growth Management Area. Councilmember Weitkunat spoke regarding Mr. Stockover's service on the Zoning Board of Appeals. Councilmember Bertschy asked if there would be a vacancy on the Zoning Board of Appeals if Mr. Stockover was appointed to the Planning and Zoning Board. City Clerk Krajicek replied in the negative. Councilmember Weitkunat made a motion, seconded by Councilmember Kastein, to adopt Resolution 2004-154 inserting the name William Stockover. Councilmember Tharp stated the Zoning Board of Appeals seemed to be a "good stepping stone" to the Planning and Zoning Board. She asked for more information on Mr. Hatfield's experience in land use. Councilmember Roy stated Mr. Hatfield had been on the Larimer County Board of Adjustments and had been a realtor and investigator. He stated he would be a "strong minded and independent" voice on the Board. Councilmember Weitkunat stated it was important to have a balance on the Board as far as a City rather than County (rural) perspective. Councilmember Roy spoke regarding Mr. Hatfield's long term volunteer service. Councilmember Kastein stated the key was that Planning and Zoning Board members have an open mind and no "agenda." He stated Mr. Hatfield took an "anti -development" stand in his application. He stated a person with that kind of bias should not serve on the Planning and Zoning Board. Councilmember Hamrick stated it would be good to have someone who would be a "maverick" to "avoid group think." He stated there were concerns in the community about growth issues. He favored the "infusion of new blood" into the boards and commissions and stated he would support the appointment of Mr. Hatfield. Mayor Martinez stated Mr. Hatfield's statements did indicate that he had "biases" and that he would prefer to appoint someone who was more open minded. Councilmember Weitkunat stated it had been a difficult process to make appointments to the Planning and Zoning Board for the last four years. She stated it was difficult for Councilmembers to make a decision on the appointment based solely on the recommendations of the interview team. She stated the "process was broken" and was not fair to the candidates. She asked that Council consider the points made by the interview team and determine which candidate should be appointed. 367 December 21, 2004 The vote on the motion was as follows: Yeas: Councilmembers Kastein, Martinez, Tharp and Weitkunat. Nays: Councilmembers Bertschy, Hamrick and Roy. THE MOTION CARRIED Ordinance No. 200, 2004, Amending Chapter 7 of the City Code so as to Add a New Section Relating to Identifvine Circulators of Petitions. Adopted on First Reading The following is staff's memorandum on this item. "EXECUTIVE SUMMARY Article X, Section S of the City Charter and Chapter 7, Article VI of the City Code establish certain regulations and requirements pertaining to the content and circulation ofpetitions and the affidavits of petition circulators. Currently, neither the City Charter nor the City Code requires that the status of petition circulators be identified as being either volunteer or paid. This Ordinance would amend the City Code to impose such a requirement. BACKGROUND The Colorado Constitution, state election law, the City Charter, and the City Code prescribe the manner in which the powers of initiative and referendum may be exercised with regard to City elections. The use of the initiative and referendum powers is a fundamental basis of the democratic form of government. The conduct of local elections is a matter of local concern and if there is any conflict between state and local law on this subject, the local law prevails. State election law requires that circulators wear identification badges identifying their names, their status as unpaid volunteer circulators or paid circulators, and in the case of a paid circulators, the name and telephone number of the individual paying the circulators. The U.S. Supreme Court has determined that requiring disclosure of circulators' names is not constitutionally permissible. Therefore, this Ordinance would amend the City Code to add only the latter requirements (having to do with volunteer or paid status). These requirements would allow the citizens of Fort Collins to know the level of grassroots support for a given measure and they would help ensure the integrity and reliability of the petition process. Also, citizens would have another source of information if a circulator is unable to answer questions regarding the petition. " City Manager Atteberry stated staff could answer any questions. Mayor Martinez request an explanation of the Ordinance. City Attorney Roy stated this was an item brought forward at the request of three Councilmembers having to do with the identification of petition circulators. He stated the circulators of initiative, referendum or recall petitions would be required to wear badges identifying their status as volunteer or paid and, if paid, the party paying the circulators. He stated the purpose as he understood it was to indicate to potential petition signers the December 21, 2004 level of grassroots support for a measure and to identify parties who could be contacted for additional information or with regard to concerns about the circulators. Mayor Martinez asked what name would be on the petition circulator's badge. City Attorney Roy stated the badge would indicate volunteer/paid status and the name and telephone number of the individual or entity employing the circulator. Mayor Martinez questioned another regulation that would not change anything. He asked why it would matter whether or not the circulator was a volunteer or paid. Councilmember Roy stated it was important to give the petition signers an indication of whether people were being paid to circulate the petition. He stated it was important to know if the petition was supported by "vested" or "grassroots" interests. Mayor Martinez questioned why it was important to have badges. He questioned whether people cared whether petition circulators were paid or volunteer. Councilmember Hamrick stated the issue was "full disclosure" to the citizens signing the petition. He stated the voters needed that information to make a more "informed decision" about the petition. Mayor Martinez stated it was more important for petition signers to focus on the subject of the petition. He stated this was "lumping people into categories" and was unfair. Councilmember Tharp stated the disclosure was important information to the petition signers and that she would support the Ordinance. Councilmember Hamrick made a motion, seconded by Councilmember Tharp, to adopt Ordinance No. 200, 2004 on First Reading. Mayor Martinez stated it was a "mistake" to identify people by categories. The vote on the motion was as follows: Yeas: Councilmembers Bertschy, Hamrick, Kastein, Roy, Tharp and Weitkunat. Nays: Mayor Martinez. THE MOTION CARRIED Other Business Councilmember Bertschy stated he would like to see a "Consent Calendar" approach for the biannual Land Use Code changes so that controversial items would be considered individually. Councilmember Roy and another Councilmember (voice inaudible on tape) indicated support for that approach. Me December 21, 2004 Councilmember Bertschy stated he agreed with Councilmember Weitkunat that the appointment process for the Planning and Zoning Board was "uncomfortable." He stated the Planning and Zoning Board had a more regulatory function and that an interview panel of three might therefore be more appropriate to avoid a split recommendation from the panel. He stated there could also be a "board of review" for a second round of interviews if there was a split recommendation. Councilmember Roy stated the recent process was "friendly and amicable." He stated it was "uncomfortable" at this stage in the process. Councilmember Weitkunat stated this process should be discussed after staff looked at options. She stated it might be helpful to have criteria for at least part of the appointments to the Planning and Zoning Board. She suggested having a discussion on the issue to make it more fair to applicants. Councilmember Kastein stated he did not have a problem with the current process. He stated if there was a dispute that the Council should discuss the matter and make a decision. Mayor Martinez questioned changing the whole process because it was sometimes uncomfortable at this stage. Councilmember Tharp stated three Councilmembers had indicated that they wanted to look at exploring another process and that this review should proceed. She stated she would also like to know if there was support for looking at a nonregulatory raptor protection program. Councilmembers Hamrick and Bertschy stated they would support looking at that. Councilmember Hamrick noted that Council had passed Resolution 2004-143, relating to alcohol abuse in the community, on the December 7 Consent Calendar. He also noted that Resolution 2004- 144 was adopted on December 7 making an amendment to the boards and commissions manual mandating that citizen participation be included as a regular agenda item during each board and commission meeting. He suggested that information be included in the next board and commission training session. The meeting adjourned at 10:40 p.m. ATTEST C� Clerk Adjournment Mayor 370