HomeMy WebLinkAboutMINUTES-04/21/2009-RegularApril 21, 2009
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, April 21, 200%
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councihnember: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy, and Troxell.
Councilmember Absent: Manvel
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
Jennifer Lowe, 1 129 Bent Tree Court, read a resolution declaring Fort Collins is a "hate free' zone
and asked Council to adopt a similar resolution that reaffirms the City's commitment to protecting
and honoring diversity within the city:
Eric Sutherland, 631 LaPorte, asked Council not to consider the Electric Service Code change that
is scheduled for Council consideration at a later date. The State legislature has mandated that the
City adopt minimal requirements for net metering and Council should have already taken action on
this item instead of delaying it for so long.
Jack Daniels, 172 North College, thanked Transfort for its excellent service and asked if Route 19
could stop at the Senior Center instead of just on Shields Street.
Bob Pickering, 633 Langdale Drive, presented a local economic stimulus proposal that would waive
permit fees for home improvement to encourage residents to replace inefficient household
appliances.
Kalin Logan, 1200 Matuka Court, asked if Transfort buses could be operated for longer hours and
that power wheelchairs be allowed to be operated in bike lanes.
Mike Devereaux, 2150 Main Marian Court, requested the City allow power wheelchairs to be
operated in bike lanes.
Cheryl Beckett, 1951 Adriel Drive, encouraged Council to consider adoption of a resolution
declaring Fort Collins as `hate free' zone.
Cheryl Distaso, 135 South Sunset, stated City Code requires wheelchair users to use sidewalks
whenever there is an available sidewalk, but "available' is not defined. She asked Council to
consider an ordinance that would clarify "available' sidewalk and would allow power chair users
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April 21. 2009
to ride in bike lanes, when they deem it safer than using the "available' sidewalk. She encouraged
Council to adopt a resolution declaring Fort Collins a "hate free'' zone.
Carrie Ann Gillis, 8020 Park Hill Drive, stated the economic downturn has cost the City $500,000
in loss of sales and use tax. Council must be business friendly, seeking primary jobs and retaining
jobs to improve the economy of the area. Council should immediately schedule a discussion of
transportation and economic health issues.
Citizen Participation Follow-up
Mayor Hutchinson asked for direction on the proposed "hate free" zone resolution. City Attorney
Roy stated his staff is preparing a resolution addressing this issue. "file issue is a sensitive one
because it involves the rights of free speech as well as Council's desire to create a community where
a civil dialogue can occur about controversial issues where no one feels personally threatened or
intimidated. A state law exists that addresses bias motivated crimes and a local City ordinance
prohibits the distribution of flyers by attaching them to vehicles without the owner's permission.
The resolution will be ready for Council consideration in the near future.
Councilmember Roy asked if Transfort Route 19 could be adjusted to accommodate the request to
stop at the Senior Center. He asked what other communities are doing concerning the issue of power
wheel chairs in bike lanes. City Manager Atteberry stated staff has examined This issue for several
months and has concluded allowing power wheelchairs to travel in bike lanes is not the best solution.
Wheelchairs may use the bike lane when a sidewalk is not available but staff does not recommend
changing the current restrictions for safety reasons. He supported Council consideration of a
resolution declaring Fort Collins a "hate free' zone.
Councilmember Poppaw stated power wheelchair users should be given the option of using bike
lanes if they believe it is unsafe to use their chairs on an uneven sidewalk.
Councilmember Troxell stated Fort Collins has decreased tax revenues and he suggested staff
consider Mr. Pickering's local economic stimulus proposal as a creative way to increase tax revenue
and decrease the wastestream. He asked what the City is doing to reduce expenditure with the
decrease in sales tax revenues. City Manager Atteberry stated the City has been working diligently
since 2002 to find ways to reduce expenditures. The City has experienced significant reductions in
its revenue streams, especially in the transportation and building services budgets. Eliminating fees
now would be counterproductive. The City has a hiring freeze in place and has eliminated 106
positions in the past 4 years.
Councilmember Poppaw noted the Mayor and City Manager seek input from businesses on a regular
basis. She asked for comparison to other communities regarding revenues and expenditures and the
financial impact of Mr. Pickering's proposal. City Manager Atteberry stated he could not
recommend any suspension of building permit fees when the revenues in that area are down 54%.
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Agenda Review
City Manager Atteberry stated there were no changes to the published agenda.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the March 24. 2009 Adjourned Meeting.
7. Second Reading of Ordinance No. 031, 2009, Authorizing the Conveyance to Urban
Development Partners, LLC of a Non -Exclusive Drainage Easement and a Non -Exclusive
Maintenance Access Easement on the City Owned Gustav Swanson Natural Area Property.
Urban Development Partners, LLC is proposing to build an industrial/office development on
approximately 7.6 acres situated on the north and south sides of Vine Drive, approximately
1/4 mile east of College Avenue. The portion on the south side of Vine Drive is located at
213 East Vine Drive and is adjacent to the Gustav Swanson Natural Area. This Ordinance,
unanimously adopted on First Reading on March 24, 2009, authorizes storm drainage related
easements on the Gustav Swanson Natural Area.
S. Second Reading of Ordinance No. 032, 2009, Authorizing the Use of a Portion of Bernard
Ranch as Match For a Neotropical Migratory Bird Conservation Act Grant Administered by
the U.S. Fish and Wildlife Service.
This Ordinance, unanimously adopted on First Reading on March 24, 2009, authorizes the
City to use a 440 acre portion of the Bernard Ranch, an 880 acre property under contract to
be purchased by the City before the end of March 2009, as match toward a Neotropical
Migratory Bird Conservation Act grant. By using the City's previous investment in the
Bernard Ranch, a local organization, the Rocky Mountain Bird Observatory, will receive
$244,351 from the U.S. Fish and Wildlife Service to fund bird research within the Laramie
Foothills Mountains to Plains Project, the Shortgrass Prairie Bird Conservation Region and
in the Chihuahuan Desert of Mexico.
Since First Reading, the legal description of the area to be used for the Project match has
been refined to include those portions ofthe Ranch that have been specifically identified for
the Project.
9. First Reading of Ordinance No. 033, 2009, Transferring Existing_ Appropriations in the Street
Oversizing Fund into the Capital Projects Fund for the Drake Road Improvements, Taft Hill
to Overland Trail Project.
There are three parcels on the south side of Drake Road between Taft Hill and Overland Trail
that have not developed, leaving a constriction which will not allow Drake Road to function
as a four lane arterial street. The last subdivision improvement was completed in 1994.
Traffic volumes have been increasing on this important east/west arterial. Staff has been
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acquiring right-of-way for the last three years in conjunction with electric utility easements
needed to underground overhead power lines. Utility work has been completed and staff
believes it is time to make the final roadway improvements prior to a scheduled maintenance
overlay later this year. These improvements will complete the enlargement of Drake Road
to a four lane arterial roadway from Taft Hill Road to Overland Trail.
10. First Reading of Ordinance No. 034, 2009, Appropriating Proceeds from the Issuance of City
of Fort Collins Water Utility Enterprise, Water Revenue Refundins,, Bonds, Series 2009, in
the Maximum A = regate Principal Amount of $8,500,000.
After the regular Council meeting, the Board of the Water Utility Enterprise will consider
an Ordinance which authorizes the issuance of City of Fort Collins Colorado, Water Utility
Enterprise, Water Revenue Refunding Bonds, Series 2009, in the Maximum Aggregate
Principal Amount of $8,500,000. The Bonds will be issued to refund, pay and discharge all
of the outstanding Water Revenue Refunding Bonds and Improvement Bonds, Series 1998.
This Ordinance will appropriate in the Water Utility Fund proceeds from bonds proposed to
be issued in Ordinance No. 007, of the Board of the Water Utility Enterprise, for the purpose
of refunding, paying and discharging all of the Enterprise's outstanding Revenue Refunding
Bonds and Improvement Bonds, Series 1998.
First Reading of Ordinance No. 035, 2009, Authorizing the Issuance and Sale of the Citv of
Fort Collins, Colorado, Revenue Bond (Larimer Center for Mental Health Project) Series
2009, in a Total Principal Amount Not to Exceed $1,400,000, Making Determinations as to
Sufficiency of Revenues and as to Other Matters Related to the Project and Approving the
Form and Authorizing the Execution of Certain Documents Relating Thereto.
This Ordinance would authorize the issuance of revenue bonds in an amount not to exceed
$1,400,000 of 501(c)(3) for the Larimer Center for Mental Health project (a non-profit
corporation). Under State Statute, the City can utilize its tax exempt status and issue revenue
bonds for financing a project that will induce a non-profit corporation to locate, expand or
remain within its boundaries. From a financial standpoint, the issuance of tax exempt
revenue as compared to conventional financing will result in cashflow savings of$315,000
of present value savings of $194,000 over the life of the bonds. These bonds are not an
obligation of the City of Fort Collins.
12. First Reading of Ordinance No. 036, 2009, Amending Various Provisions of the City Code
and the Fort Collins Traffic Code Regarding the Sale and Maintenance of Said Codes.
This Ordinance amends the City Code and Traffic Code to reflect that the City's official
codifier maintains copies for sale to the public, and to reduce to one the number of public
inspection copies the City Clerk is required to maintain.
13. First Reading of Ordinance No. 037, 2009, Amending Chapter 5 of the City Code Regarding
Violations and Penalties to the International Property Maintenance Code.
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The Ordinance would amend the violation and penalty section of the International Property
Maintenance Code (IPMC) in order to clarify that certain violations of the IPMC are civil
infractions while others are criminal misdemeanors. It would also delete Section 5-48 of the
City Code as it is no longer necessary.
14. First Reading of Ordinance No. 038, 2009, Expanding the Boundaries of the Downtown
Development Authority and Amending the Plan of Development.
The petitions for inclusion would change the boundaries of the Downtown Development
Authority (DDA) District and amend the Plan of Development of the Authority to include
properties located in the Lemay/Lincoln Avenue area and South Howes Street area.
15. First Reading of Ordinance No. 039, 2009, Authorizing the Lease of City -owned Property
at 149 Grandview Avenue for Up to Five Years.
The City built this house for use by the Cemetery Superintendent. Since this position has
been eliminated, the City does not need to use this house as a staff residence. This house has
been a leased property for Grandview Cemetery since 1999. In the future, the area where the
house is located will be needed for more cemetery space. Prior to that time, renting the
house will generate income that the Cemetery staff can utilize. Staff also believes vandalism
can be discouraged by keeping the house occupied. This Ordinance will allow City staff to
keep the house rented for up to five years.
16. First Reading of Ordinance No. 040, 2009, Declaring Certain City -Acquired Property as
Hickory Street Right -of -Way.
The City acquired a 7,673 square foot parcel of real property in 1994 for the purpose of
constructing public road and sidewalk improvements on Hickory Street. Although it was
never dedicated as public right-of-way, it has been used as such since that time. In order to
clearly delineate the boundaries of the public right-of-way for Hickory Street, staff is
recommending that the property be dedicated as public right-of-way.
17. First Reading of Ordinance No. 041, 2009, Authorizinn the Lease of City -Owned Property
at 400 Wood Street for up to Fifteen Years.
This Ordinance authorizes the lease of the building located at 400 Wood Street to Foothills
Gateway for a five-year lease term, with the option for two five-year renewal tenns, in
exchange for payment of nominal rent of $25 per year.
18. First Reading of Ordinance No. 042, 2009, Authorizing the Lease of City -Owned Property
at 214 North Howes Street, Along with Related Parking Rights at 220 North Howes Street
for up to Five Years.
City Council adopted Ordinance No. 098, 2007, authorizing the lease of City -owned property
at 214 North Howes Street, along with the use of parking spaces at 220 North Howes Street
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for up to five years. The Ordinance specified a minimum annual lease amount of no less than
$61,036, which was based on an annual price of $10.50 per square foot. This Ordinance
modifies the authorization from an aggregate annual amount to a per square foot rate and
reduces the minimum lease rate from $10.50.to $9 per square foot.
19. Items Relating to the Mountain View School Second Annexation and Zoninf4.
A. Resolution 2009-032 Setting Forth Findings of Fact and Determinations Regarding
the Mountain View School Second Annexation and Zoning.
B. Hearing and First Reading of Ordinance No. 043, 2009, Annexing Property Known
as the Mountain View School Second Annexation to the City.
C. Hearing and First Reading of Ordinance No. 044, 2009, Amending the Zoning Map
of the City of Fort Collins and Classifying for Zoning Purposes the Property Included
in the Mountain View School Second Annexation to the City.
This is a request to annex and zone 1.46 acres located on the north side of LaPorte Avenue,
midway between North Taft Hill Road (to the east) and North Overland Trail (to the west).
The property is partially developed as a Poudre School District parking lot and is in the FA,
Fanning Zone District in Latimer County. Existing Poudre School District facilities are to
the west and south; and property to the east and north are undeveloped; however, the
Sanctuary West residential development proposal, located north of LaPorte Avenue, is under
review by the City. Tine requested zoning for this annexation is LMN, Low Density Mixed -
Use Neighborhood.
20. Resolution 2009-033 Authorizing Revocable Permits to ERO Resources Corporation for the
Installation of Groundwater Monitoring_ Wells on City Property for Use in Evaluating the
Environmental Impacts of the Northern Integrated Supply Project and the Halligan -Seaman
Water Manaj�ement Project.
As part of the Northern Integrated Supply Project (NISP) Environmental Impact Statement
(EIS) and the Halligan -Seaman Water Management Project (HSWMP), groundwater
monitoring is necessary along certain areas of the Poudre River. ERO Resources
Corporation is the third -party contractor for the NISP EIS and has requested that the City
grant permission to enter various parcels owned by the City to install monitoring wells to
conduct periodic groundwater monitoring.
21. Resolution 2009-034 Authorizing the Lease of City -owned Property at 222, 224 and 226
West Mountain Avenue to Moe Kamandy for up to Two Years.
The City and the County purchased the building at 222, 224 and 226 West Mountain Avenue
in 1985 as part. of the Block 31 purchases. In the Intergovernmental Agreement dividing
Block 31, this property was quit claimed to the City. Since the City and County's purchase
of this property, these spaces have been leased to commercial customers. The current tenant
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of 222, 224 and 226 West Mountain Avenue, Moe Kamandy of the Mountain Cafe, has
leased the 1,370 square feet of space since October 2004. These spaces are not conducive
for use by other City users. Staff recommends continuing to lease these spaces to Moe
Kamandy of the Mountain Cafe until this area of Block 31 is needed for the future
Performing Arts Center improvements. The total yearly lease payment for these spaces will
be at least $1 1,200. In addition, the tenant will be responsible for the following expenses:
taxes, all utilities, and janitorial.
22. Resolution 2009-035 Authorizingthe he City Manager to Enter into a License to Enter and Fee
Sharing Agreement with the Discovery Science Center.
The License to Enter and Fee Sharing Agreement between the City and Discovery Science
Center (DSC) allows the DSC to share office and exhibition space with the Fort Collins
Museum (FCM) in the City building located at 200 Mathews Street. The agreement includes
a provision for charging an admission fee and paying those fees, along with certain other
museum -related fees, to the DSC to fund DSC employee salaries, benefits and program costs.
The Fee Sharing Agreement will keep aspects of the Discovery Science Center open,
operating, and providing benefit to the, public during this transition phase until the new
facility is operational. The DSC has historically charged an admission fee to fund operations
and an admission fee will be charged at the new museum when it opens. The Agreement also
clarifies the parties' rights and obligations in sharing the Museum property and is in keeping
with the Operating Agreement that was signed between the City and the DSC in March 2008.
23. Resolution 2009-036 Approving and Adopting an Identity Theft Prevention Program of the
City's Municipal Court for the Detection, Prevention and Mitigation of Identity Theft.
Under the revisions to the FACT Act of 2003 (Fair and Accurate Credit Transactions Act),
each creditor is required to have policies and procedures in place by May 1, 2009 which meet
the standards outlined by Federal Agencies including the Federal Trade Commission. There
are a number of red flags or potential warnings of identity theft included in current
legislation. The role of the Council acting as the City's Board of Directors is to grant initial
approval of the Identity Theft Program plan before implementation and annual report review.
The program includes the following:
• Establish a Privacy Officer
• Conduct a Needs Assessment
• Develop an Annual Program Report
• Develop and Implement Policies and Procedures
• Employee Training — 2 Hours in First Year
24. Resolution 2009-037 Authorizing the City Attorney to Provide Legal Services to the Fort
Collins Capital Leasing Corporation.
This Resolution authorizes the City Attorney to provide legal services to the Fort Collins
Capital Leasing Corporation.
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25. Resolution 2009-038 Authorizing the Mayor to Execute an Intergovernmental Agreement
with the Colorado Department of Transportation to Design, Construct, and Enhance
Components of the Traveler Information Web Page.
This Congestion Mitigation and Air Quality (CMAQ) project will design, construct, and
enhance components of the existing Traveler Information Web Page —
www.fcgov.com/fctrip. The project will include installation of equipment to expand
coverage of the existing closed circuit television (CCTV) system. Additional vehicle
detection equipment will also be installed to provide more comprehensive congestion
measurement to improve the accuracy of the roadway condition information available to the
public on the web page.
26. Resolution 2009-039 Making Appointments to Various Boards and Commissions.
A vacancy currently exists on the Affordable Housing Board due to the resignation of Ashley
Monahan. Councilmembers Poppaw and Roy reviewed the applications on file. The Council
interview team is recommending Mike Sollenberger to fill the vacancy with a term to begin
immediately and set to expire on December 31, 2012.
A vacancy currently exists on the Art in Public Places Board due to the resignation of Jane
Liska-Smith. Applications were solicited and Councilmember Poppaw and Mayor
Hutchinson conducted interviews. The interview team is recommending Shelby Sommer to
fill the vacancy with a tern to begin immediately and set to expire on December 31, 2009.
A vacancy currently exists on the Commission on Disability due to the resignation of Jason
Holland. Applications were solicited and Mayor Hutchinson and Councilmember Poppaw
conducted interviews. The interview team is recommending Kalin Logan to fill the vacancy
with a term to begin immediately and set to expire on December 31, 2010.
A vacancy currently exists on the Land Conservation and Stewardship Board due to the
resignation of J. Karyl Ting. Councilmember Manvel and Mayor Hutchinson reviewed the
applications on file. The interview team is recommending Linda Mlowlton to fill the
vacancy with a term to begin immediately and set to expire on December 31, 2011.
A vacancy currently exists on the Natural Resources Advisory Board which was not filled
during the annual appointment process. Applications were solicited and Councilmember
Marvel and Mayor Hutchinson conducted interviews. The interview team is recommending
Steve Ambrose to till the vacancy with a term to begin immediately and set to expire on
December 31, 2012.
A vacancy currently exists on the Parks and Recreation Board due to the resignation of Mark
Lueker. Applications were solicited and Mayor Pro Tern Ohlson and Mayor Hutchinson
conducted interviews. The interview team is recommending Danna Ortiz to fill the vacancy
a with term to begin immediately and set to expire on December 31, 2009.
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A vacancy currently exists on the Planning and Zoning Board due to the resignation of Jim
Wetzler. Mayor Hutchinson and Councilmember Poppaw conducted interviews. The
interview team is recommending Jennifer Carpenter to fill the vacancy a with term to begin
immediately and set to expire on December 31, 2010.
A vacancy currently exists on the Senior Advisory Board due to lack of attendance
requirements by Janet Otto. Mayor Hutchinson and Councilmember Poppaw conducted
interviews and are recommending Kathy Gronberg to fill the vacancy with a term to begin
immediately and set to expire on December 31, 2012.
Vacancies currently exist on the Youth Advisory Board due to the resignations of Josh
Disney and Laura Lamb. Applications were solicited and Councilmember Poppaw and
Mayor Hutchinson conducted interviews. The interview team is recommending Kelsey
Hennig and Kinsey Kappeler to fill the vacancies with terns to begin immediately and set
to expire on December 31, 2010 and December 31, 2011 respectively.
***END CONSENT'
Ordinances on Second Reading were read by title by City Clerk Krajicek.
7. Second Reading of Ordinance No. 031, 2009, Authorizing the Conveyance to Urban
Development Partners, LLC of a Non -Exclusive Drainage Easement and a Non -Exclusive
Maintenance Access Easement on the City Owned Gustav Swanson Natural Area Property.
8. Second Reading of Ordinance No. 032, 2009, Authorizing the Use of a Portion of Bernard
Ranch as Match For a Neotropical Migratory Bird Conservation Act Grant Administered by
the U.S. Fish and Wildlife Service.
Ordinances on First Reading were read by title by City Clerk Krajicek.
9. First Reading of Ordinance No. 033, 2009, Transferring Existing Appropriations in the Street
Oversizing Fund into the Capital Projects Fund for the Drake Road Improvements, Taft Hill
to Overland Trail Project.
10. First Reading of Ordinance No. 034, 2009, Appropriating Proceeds from the Issuance of City
of Fort Collins Water Utility Enterprise, Water Revenue Refunding Bonds, Series 2009, in
the Maximum Aggregate Principal Amount of $8,500,000.
11. First Reading of Ordinance No. 035, 2009, Authorizing the Issuance and Sale of the City of
Fort Collins, Colorado, Revenue Bond (Larimer Center for Mental Health Project) Series
2009, in a Total Principal Amount Not to Exceed $1,400,000-1 Making Determinations as to
Sufficiency of Revenues and as to Other Matters Related to the Project and Approving the
Form and Authorizing the Execution of Certain Documents Relating Thereto.
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April21, 2009
12. First Reading of Ordinance No. 036, 2009, Amending Various Provisions of the City Code
and the Fort Collins Traffic Code Regarding the Sale and Maintenance of Said Codes.
13. First Reading of Ordinance No. 037, 2009, Amending Chapter 5 of the City Code Regarding
Violations and Penalties to the International Property Maintenance Code.
14. First Reading of Ordinance No: 038, 2009, Expanding the Boundaries of the Downtown
Development Authority and Amending the Plan of Development.
15. First Reading of Ordinance No, 039, 2009, Authorizing the Lease of City -owned Property
at 149 Grandview Avenue for Up to Five Years.
16. First Reading of Ordinance No. 040, 2009, Declaring Certain City -Acquired Property as
Hickory Street Right -of -Way.
17. First Reading of Ordinance No. 041, 2009, Authorizing the Lease of City -Owned Property
at 400 Wood Street for up to Fifteen Years.
18. First Reading of Ordinance No. 042, 2009, Authorizing the Lease of City -Owned Property
at 214 North Howes Street, Along with Related Parking Rights at 220 North Howes Street,
for up to Five Years.
19. Items Relating to the Mountain View School Second Annexation and Zoning.
B. Hearing and First Reading of Ordinance No. 043, 2009, Annexing Property Known
as the Mountain View School Second Annexation to the City.
C. Hearing and First Reading of Ordinance No. 044, 2009, Amending the Zoning Map
of the City of Fort Collins and Classifying for Zoning Purposes the Property Included
in the Mountain View School Second Annexation to the City.
32. First Reading of Ordinance No. 045, 2009, Amending Section 5-261 of the City Code
Related to Fees for Rental Housing and Establishing an Incentive Program with Regard to
the Payment of Such Fees For Rental Dwelling Units Not Previously Recorded With or
Approved by the City.
33. First Reading of Ordinance No. 046, 2009, Appropriating Funds from the City's General
Fund Reserves for Transfer to the Fort Collins Urban Renewal Authority for the Purpose of
Providing a Loan for the North College Marketplace Project.
CouncilmemberTroxell made a motion, seconded by Councilmember Poppaw, to adopt and approve
all items on the Consent Calendar, Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
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Consent Calendar Follow-up
Councilmember Roy asked for information about ERO Resources. John Stokes, Natural Resources
Director, stated one issue raised by the City concerning the draft Envirnomental Impact Statement
(EIS) for the Northern Integrated Supply Project (NISP) was the lack of data related to ground water
monitoring. The City specifically asked that such data be gathered and ERO Resources is the
company hired by the Army Corps of Engineers to gather ground water data on the Poudre River.
There will be six monitoring sites, with two of the those sites located in Fort Collins. 2-D modeling
will also occur at these sites which provides riparian habitat information and changes to habitat that
might occur if NISP is approved. As part of its EIS process, the Corps hired the third -party
consultant and did not allow the City the option of gathering ground water data itself. The
monitoring wells be installed as soon as possible and data will be gathered for at least one year.
Councilmember Roy asked for information before the monitoring wells are installed, what
infonnation will the wells gather and the length of time the wells will be used.
Councilmember Troxell noted several appointments were made to various boards and commissions
and the citizens appointed will provide much expertise and knowledge on a volunteer basis to the
City, including two appointments to the Youth Advisory Board. He suggested the Youth Advisory
Board membership should come from area high school student leadership. He asked what steps the
City has taken to prepare for pine beetle infestation.
Staff Reports
City Manager Atteberry stated Council consideration of the Electric Service Code change and net
metering has been moved from May 5 to May 19. The work session for April 28 has been cancelled.
City Manager Atteberry stated a question had been raised about the timely issuance of basement
remodel permits. Serval hundred remodel permits were issued last year and 91 % were issued within
24 hours of the request.
Clark Mapes, City Planner, stated a signage system has been designed for the downtown area that
includes directional signage for public parking facilities downtown. Pedestrian and vehicle
informational signs will be placed on Mulberry and Prospect Streets, as well as in the downtown
area. The purpose of the system is to provide awareness of the downtown area and to provide ease
of access to visitors. The signs will have a consistent color scheme and graphic design. Funding for
the sign system will come from the General Improvement District No. 1 and possibly, in partnership
with the Downtown Development Authority. The new signs should be in place this summer.
Councilmember Roy asked if the color scheme for the "Welcome to Fort Collins" sign could be
softened as the colors seemed harsh and jarring. Mapes noted other options were available and the
design team would consider other colors.
Councilmember Olilson asked if Council would have an opportunity to provide more feedback
regarding the sign system. City Manager Atteberry stated.much public input has been gathered in
the design phase of this project and the final decision was intended to be an administrative decision
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but Council can choose to make the final decision on the design of the sign system. Staff will
provide Council with diagrams and real pictures and Council can decide if it wants to spend more
time to provide input into the design of the signs.
Resolution 2009-040
Authorizing the City Manager to Investigate Options for a Cooperative
Arrangement That Would Provide Wastewater Treatment Services to
Boxelder Sanitation District and to Negotiate a Related Agreement
for Future Council Consideration, Adopted
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
Some staff tine will need to be allocated. Any agreement negotiated will use the cost of service
methodology.
EXECUTIVE SUMMARY
As an alternative to any modifications or new construction, Boxelder Sanitation District has asked
the City of Fort Collins about the possibility of the City providing wastewater treatment services for
the District in the fi ture. The potential regional consolidation of wastewater services would
eliminate a wastewater treatment plant in the Fort Collins area and increase efficiencies that could
benefit the District, the City, and the region.
Due to drought and water conservation, currently the City facilities could accommodate part or all
of the District's flow. This request is timely as the City Wastewater Division is beginning the
updatingprocessforthe Wastewater Treatment Master Plan. The District request could be formally
reviewed as part of this process to predict any fixture impacts.
BACKGROUND
The Boxelder Sanitation District (the District) service area borders the City of Fort Collins
Wastewater Utility service area to the north and east. The District currently provides wastewater
services to customers within portions o/the Fort Collins, Fort Collins Growth Management Area,
the town of Timnath, and Larimer County. The District anticipates future service being provided
to portions of Weld County.
Boxelder Sanitation District operates sewer lines, an industrial pretreatment program and a
ivasteivater treatment plant_ The treatment plant is a lagoon system and is located at the confluence
of Boxelder Creek and the Cache la Poudre Rivet-, just downstream from the City's Drake Water
Reclamation facility and has a current capacity of approximately 2 million gallons per day (MGD).
The District will need to modify, the existing treatment facility or construct a new facility at the
current location to meet future regulatory and capacity needs. Facture capacity that the District will
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need is currently predicted to be 8 to 10 MGD and would require a new much larger mechanical
facility, similar to those operated by the City of Fart Collins. "
Steve Comstock, Water Reclamation and Biosolids Manager, stated Boxelder Sanitation District
borders the City on the north and east and has received a new discharge permit that dictates treatment
limits for the District. The District has been instructed to investigate the possibility of consol idation.
Currently, the District has a lagoon system that treats approximately 2 million gallons of sewage per
day. The City's Drake facility treats approximately 23 million gallons of sewage per day. To meet
future regulatory and capacity needs, the District will need to modify the existing facility or construct
a ne:v facility. The District has requested to confer with the City about the possibility of the City
providing wastewater treatment services as an alternative to modifications or new construction.
Potential regional consolidation of wastewater services would eliminate a wastewater treatment plant
along the Poudre River and provide efficiencies that would benefit both the District and the City.
Mayor Hutchinson noted the resolution will allow the City Manager to investigate options for an
agreement and is not authorizing any agreement with Boxelder at this time. Comstock stated if
Council does not believe it would approve such an agreement, now is the time to halt any further
discussions because Boxelder will spend substantial amounts of money to be involved in the process.
Councilmember Roy asked for an estimate of costs to both Boxelder and the City if such an
agreement were approved. Comstock stated Boxelder would initially be asked to participate in the
cost of the Master Plan Agreement process which might cost $10,000 to $15,000 for a consultant to
gather the data needed to make a decision. If Boxelder chooses to purchase an part ownership in the
Fort Collins facility, the cost would be quite substantial. City Manager Atteberry stated the cost of
providing service to Boxelder is one area that will be studied. The Boxelder rate payers would pay
for the costs of Fort Collins providing this service. The study could identify some positive,
unanticipated outcomes or it could identify some fatal flaws.
Councilmember Roy asked for an estimate of the value of the capacity at the Drake Treatment Plant
that is not currently in use. Comstock stated it costs approximately $7/gallon to build a wastewater
treatment plant. The Drake Treatment Plant has a capacity of 23 million gallons per day and
currently processes about 15 million gallons per day.
Councilmember Roy asked how many water districts exist in the City's Urban Growth Area.
Comstock stated there are 4 sanitation districts: Boxelder Sanitation, South Fort Collins, the City of
Fort Collins, and Wellington.
Councilmember Ohlson noted the resolution states "to negotiate a related agreement for future
Council consideration," which conflicts with "investigating options and negotiate a cooperative
agreement" as stated in the staff presentation. It makes sense to determine if it is feasible for a
cooperative venture that would benefit Fort Collins, the Boxelder Sanitation District and the region
but researching a possible agreement is not the same as approving a cooperative agreement. City
Manager Attebeny stated staff is asking if Council supports the concept of cooperating regionally
with another entity. If it is detennined both entities would benefit from this cooperation, an
intergovernmental agreement will be brought for Council consideration at a later date.
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Councilmember Ohlson asked why the City would strive to only recoup costs and not use this as an
opportunity to create a revenue stream, if an 1GA would save the Boxelder Sanitation District a large
amount of money. Comstock stated the intent was to be as fair as possible with Boxelder but the
City could choose to charge fees above recouping costs.
CouncilmemberTroxell made a motion, seconded by Councilmember Kottwitz, to adopt Resolution
2009-040.
Councilmember Troxell stated the opportunity for regional cooperation and the potential for savings
for both Fort Collins and the Boxelder Sanitation District make this investigation a good decision.
Councilmember Ohlson stated land use and water conservation should be considered in any
agreement that might come forward.
Councilmember Roy asked for information about increased efficiencies for Fort Collins that might
occur from any agreement with Boxelder.
Mayor Hutchinson stated moving forward with this investigation will provide the opportunity for
regional cooperation and increased efficiencies. This resolution does not commit the City to any
agreement but does explore options that might be available that could benefit both the City and
Boxelder Sanitation District.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2009-041
Authorizing the City Manager to Investigate Options for a Cooperative
Arrangement That Would Provide Water Treatment Services to the
Tri-Districts and to Negotiate a Related Agreement
for Future Council Consideration, Adopted
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
Staff time, includingfinance and legal, will be required. The agreement will incorporate a one-time
capital investment, plus negotiation of annual shared operation and maintenance fees, and sharing
of capital and replacement finding.
EXECUTIVE SUMMARY
The Tri-Districts (owner of the Soldier Canyon Filter Plant) must expand its facility or, as an
alternative, purchase treatment capacity in the City ofFort Collins Water Treatment Facility (WTF).
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The YVTF has underutilized capacity, due to water conservation efforts citywide, and could realize
debt service repayment, and more efficient operation, with the Tri-Districts' involvement. The Tri-
Districts would provide raw water through its own water decrees for treatment through the City's
WTF.
BACKGROUND
The City's Water- Treatment Facility (WTF), located at 4316 LaPorte Avenue, has a current capacity
of 87 million gallons per day (mgd). The plant currently operates at capacity levels well below this
design.
In response to the drought of 2002, the conservation program and tiered fee rates, per capita water
usage has decreased to a level that appears to be sustainable, resulting in as much as 20 mgd of
excess treatment capacity through the year 2035 (projected build out).
The Tri-Districts (collectively East Larimer County Water District, Fort Collins -Loveland Water
District and North Weld County Water District) owns the Soldier Canyon Filter Plant, located
directly to the west of the Fort Collins WTI". The City and the Tri-Districts have an existing
intergovernmental agreement that allows for water- sharing at various locations in the water
transmission system, and for waterselling(through Fort Collins -Loveland Water District). The Tri-
Districts serves appro-vimately18,000 customers that reside in the City of Fort Collins. Therefore,
a working relationship with the Tri-Districts is already in place.
The Tri-Districts is currently evaluating options to increase treatment capacity at its plant in order
to serve its growing customer base. One of its alternatives is to enter into a long-term agreement
with the City for the use of its excess treatment capacity. This is a regional solution, benefitting the
City by maximizing the use of the idle treatment capacity, reducing debt load on its ratepayers and
benefiting the T ri-Districts b_y delaying capital expenditures. This capacity could be provided by
the City through a wholesale contract agreement (similar to West Fort Collins Water District) or
through a sale of treatment capacity. The Tri-Districts desires to purchase treatment capacity,
rather than purchase water through a contract agreement.
There are several benefits to the City in arranging a sale of treatment capacity to the Tri-Districts:
1. Efficient use of unused constructed capacity.
2. Potential accelerated repayment of debt service.
3. Enhanced (continued) cooperation with Tri-Districts.
4. Less environmental impact on region due to no construction off zeilities at Soldier Canyon.
5. Increases City's minimum water treatment levels, which have been declining, allowing more
efficient operation during low winter flow rates. 11
Lisa Voytko, Water Production Manager, stated the Tri-Districts own and operate the Soldier
Canyon Water Treatment Plant, located to the west of the Fort Collins Water Treatment Facility.
The Tri-Districts and Fort Collins share an outlet at Horsetooth Reservoir and get water from the
Poudre River through the Pleasant Valley Pipeline. The City's water treatment plant has a peak
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capacity of 87 million gallons/day (MGD). The Soldier Canyon Plant has a current capacity of 50
MGD, with potential for expansion to 60 MGD. The Tri-Districts has a need at this time, to expand
the Soldier Canyon Plant and has approached Utilities with the possibility of purchasing treatment
capacity in the City's water treatment facility in lieu of expanding Soldier Canyon Plant.
The City's water treatment plant had a peak production day of 51 MGD in June 2008. Water
conservation and tiered water rates have reduced general water production at the plant. The City has
much unused capacity at the plant and would be able to handle the influx of 10 MGD from the Tri-
Districts. The projected peak demand, targeted for 2035, is 67 MGD. The plant capacity is 87
MGD.
Staff would explore recouping of capital costs with any agreement with the Tri-Districts If the Tri-
Districts wants to purchase any portion of treatment capacity, the City would request a capital
payment which the Districts would need to pay even if the Soldier Canyon Plant were to be
expanded. This would lessen the debt repayment currently at the City's water treatment plant. The
Tri-Districts would bring raw water to the City's plant through the Pleasant Valley pipeline or
through the Horsetooth inlet structure and, because both entities use the same waters, the waters
would be blended to create good influent water quality and effluent water quality would remain
constant and excellent. The City would act as a surrogate for the Tri-Districts because the Tri-
Districts would bring the water to the City, the City would treat the water, and the Tri-Districts
would be responsible for distribution to their rate payers. Another component of fees that would be
examined would include fixed operation and maintenance cost, the yearly cost of providing the
building, staff and equipment and variable operation and maintenance costs, which varies with the
amount of water that is treated. If the Tri-Districts use 10 MGD of City water treatment capacity,
the Soldier Canyon Plant would not be expanded which would lessen environmental impacts. The
City currently has a very good working relationship with the Tri-Districts through water sharing and
water selling and any agreement could create even better relationships. During the winter months,
the City's treatment plant experiences lower water production rates which creates certain challenges
in treating low flows. Cost efficiencies could occur with an additional 10 MGD that would help the
City's plant operate more efficiently.
Ross Cunniff, 2267 Clydesdale, urged Council to carefully consider all City water management
policies before accepting any agreement to share water treatment facilities.
Councilmember Poppaw asked what provisions would be considered to cover emergency
maintenance or other extraordinary costs that might arise from an agreement with the Tri-Districts.
Voytko stated any agreement would include fixed and variable operation and maintenance costs, as
well as an emergency fund.
Councilmember Poppaw asked if the Tri-Districts had developed any water conservation plans for
their customers. Voytko stated each District has water conservation plans in place, as required by
the state. ELCO and Fort Collins -Loveland Water Districts border Fort Collins and include some
Fort Collins residents in their districts. Their water conservation plans mirror and utilize the City's
water conservation plan within their own districts. The North Weld County Water District has the
lowest number of residents and has less funding available. Its plan is concentrated on unaccounted
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April21, 2009
losses, utility programs such as improving metering, checking for unaccounted losses within the
water system and educational programs. The City's estimated water use is about 40,000 acre-feet
and the combined build -out, water consumption for the Tri-Districts, based on their water
conservation plans, is about 33,000 acre feet.
Councilmember Ohlson asked if the City could ultimately be processing water from NISP because
one member of the Tri-Districts is a sponsor of NISP. Kevin Gertig, Water Resources/Treatment
Services Manager, stated he did not believe the City would be treating NISP water as the participants
would have to do an exchange, but the possibility would be evaluated through the proposed review
process.
Mayor Hutchinson asked if the proposed resolution would commit the City to processing any NISP
water. Gertig stated the resolution would allow staff to review the possibilities and gather data to
determine the possible outcomes of any agreement with the Tri-Districts.
Councilmember Roy asked if the resolution allows the City Manager to negotiate an agreement that
would not be presented to Council for approval. City Manager Atteberry stated Council would need
to approve an intergovernmental agreement with the Tri-Districts. Negotiations will be halted if it
appears not to be in the best interests of Fort Collins. Staff believes it is worth the effort to
determine if a win -win agreement can be negotiated.
City Attorney Roy noted the last sentence in the resolution states "and to negotiate a related
agreement for future presentation to and consideration by the City Council." The intent of the
language is that it would be up to Council to decide whether to approve the proposed agreement
brought to it. The wording could be changed from "related" to "proposed" agreement. Staff would
negotiate the terms and conditions of an agreement that is subject to Council's approval which is the
intent of the language in the resolution.
Councilmember Roy stated the word "proposed" is abetter choice than `related." City Attorney Roy
stated the same language should also be used retroactively, in the resolution just adopted concerning
the Boxelder Sanitation District.
Councilmember Poppaw asked if the review will consider the question of parity between the two
entities as the City does not want to enable other communities to have less stringent regulations
regarding water conservation. City Manager Atteberry stated the Districts need to know what
Council's expectations are concerning water conservation.
Councilmember Roy asked that the Water Board review any agreement that is negotiated with the
Tri-Districts before Council considers authorizing an agreement. City Manager Atteberry stated the
Water Board will have opportunity to review any proposed agreement with the Tri-Districts and with
Boxelder Sanitation District.
Councilmember Troxell asked how the blending of raw water would be a benefit for Fort Collins.
Voytko stated during spring runoff when the Poudre River has a lower water quality than Horsetooth
Reservoir, water rights could be adjusted so that more Horsetooth water could be used.
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April21, 2009
Councilmember Kottwitz asked ifthe City has worked with the Fort Collins -Loveland Water District
to market water conservation measures. Voytko stated ELCO and the Fort Collins -Loveland Water
Districts rely on the City programs to assist with their water conservation programs.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2009-041, as amended.
City Attorney Roy clarified that Resolutions 2009-040 and 2009-041 would be amended to change
the word "related" to "proposed" in the titles and in the last sentence of both resolutions.
Councilmember Ohl son stated the potential for regional cooperation is a good reason to proceed with
this review but he would not support any agreement that would enable bad land use patterns, lack
of water conservation programs or lack of growth management programs.
Councilmember Roy stated Fort Collins citizens have conserved and sacrificed to have a high quality
water treatment system and any community or district that partners with Fort Collins should have
the same requirements that are asked of the City's citizens. City Manager Atteberry stated if the
Districts cannot agree to the same requirements Fort Collins has for its rate payers, no agreement will
be reached.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Ordinance No. 045, 2009,
Amending Section 5-261 of the City Code Related to Fees for Rental Housing
and Establishing an Incentive Program with Regard to the Payment of Such
Fees For Rental Dwelling Units Not Previously Recorded
With or Approved by the City, Adopted on First Reading
The following is staff's memorandum on this item.
"FINANCIAL IMPACT
Adoption of the Ordinance will financially impact the City and the owners of unrecorded/
unapproved rental dwelling units.
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Revenue/Savings
During Incentive Period
Costs
During Incentive Period
After Incentive Period
City
Revenues - One
Costs -Covered under current
Revenues - Fees for:
application fee/unit plus
Neighborhood & Building
development review,
building permit fees if
Services, Engineering .and
building permit, and
improvements needed to
Current Planning budgets
past -due impact fees at
comply with Rental
current rates
Standards
Property
Savings - From waiver of
Costs (per rental dwelling
No savings - Costs to
Owners
all past -due fees
unit): one application fee
owners include current
plus any building permit fees
fees noted above
ENVIRONMENTAL IMPACT
Adoption of the Ordinance is expected to improve indoorair quality, safety and sanitation for rental
housing residents.
EXECUTIVE SUMMARY
Council has identified sanitary and safe housing for all Fort Collins residents as one of its primary
concerns. On October 21; 2008, Council adopted the Supplemental Rental Housing provisions
related to minimum health and safety standards,for rental housing. At that time, Council postponed
discussion of City Code Section 5-261 relating tofees and "unrecorded/unapproved "dwelling units
— housing units created or converted without required City approvals. Council directed staff to
consider options for establishing "incentive periods ", -- periods of time wherein rental property
owners would be encouraged through financial incentives to identify their unrecorded/unapproved
rental units and comply with the City's rental housing minimum health and safety standards.
At the February 24, 2009 work session, staffpresented potential incentive options. Council directed
staffto further refine these incentives to engage more people in the community who would be directly
affected by unrecorded/unapproved rental housing units (including long term residents and CSU
students in addition to the rental housing industry), and to obtain their input on the various
incentives.
The stakeholder group considered options regarding the length of the application period (12 to 24
months), the amount of the application or filing fee (5100 to $600), and whether the application fee
should be increased over the application period to provide an incentive for owners to identify
unrecorded units as soon as possible.
Staff, in collaboration with community stakeholders, of the_following proposed incentive period
for Council's consideration:
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Twenty-five month application period. Property owners would have twenty-five months.from
the date the ordinance goes into effect to apply for a certi/icate ofoccupancy. A one-time fee would
be charged far processing the application as follows: $200 during the first thirteen months,
increasing to $300 for the next six months, then $400 for the last six months. Owners would also
have to pay any fees or taxes that would normally be due upon issuance of a building permit for any
work needed to bring their dwelling units into compliance with the Rental Housing Standards.
Staff, the rental industry, and the Affordable Housing Board recommend the proposed incentive
period (24 months). In addition to the 24 months, staff proposed another thirty days to assure
advance outreach and comprehensive notice to all stakeholders.
BACKGROUND
THE ISSUE
An unknown number of rental dwelling units do not have formal approval by the City in the form of
a final inspection or a certificate of occupancy. All rental dwelling units in the City are required
to comply with the City's Rental Housing Standards. In addition, the City Code was recently
amended by the Council to require that the owners of all rental dwelling units in the City obtain a
certificate of occupancy before renting, offering to rent, or continuing to rent such units.
The current City Code has no specific procedures fordealing with existing, unrecorded/unapproved
rental housing. If City staff becomes aware of such a housing unit, the owner is required to bring
the unit into compliance with current minimum health and safetystandards. In addition, impact fees
are collected at the current rates as though such housing units were created at the time they are
discovered. (Impact fees are fees imposed to offset the added costs ofproviding public set -vices and
infrastructure associated with creating any housing unit.) For asingle-family converted to a 1,500
square foot basement -finish duplex today, the impact fees would be approximately $12, 000.
According to the 2007 census data, approximately 80% of the two family dwellings in the City
(duplexes) are occupied by renters. This u,ourld be approximately 1,400 duplexes.
However, staffhas no reliable away of determining just how many rental dwelling units actually exist
in the City, much less how many of those units may present a health or safety risk to their occupants
or may otherwise fail to comply with the City's Rental Housing Standards. This is partly because
many of the rental units were constructed before certificates of occupancy were required_for single
and two-family dwellings (before 1980), partly because many others have come into existence
through the unlawful conversion of single-family residences to duplexes and finally some current
owners may be unaware that the rental dwelling never complied with City requirements.
In order to ensure that rental units in the City comply with the Rental Housing Standards, staff
recommends that the City Council approve an incentive program to help identify where those units
are located and to determine their suitability for habitation. The purpose of the incentives is to
motivate the owners of mrecorded/unapproved dwelling units to obtain a certificate ofoccupancy.
Prior to issuing the certificate of occupancy, staff would work with the property owners to ensure
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that the units come into compliance with the Rental Housing Standards. Essentially, the incentives
consist of lowering the cost of bringing the units into compliance for a given period of time.
To accomplish this, the suggested incentive period would afford "amnesty "from past due impact
fees and civil infractions for property owners who voluntarily identify their unrecorded/tmapproved
housing/dwelling units and submit an application for a certificate of occupancy. Owners must still
make sure the units meet City Rental Housing Standards and must pay the associated costs if work
has to be done to meet these standards.
COUNCIL DIRECTION FROM WORK SESSION (See attachment #1)
Council expressed general agreement with the importance of an amnesty period to encourage
compliance. Council's discussion focused on the proposed length of time allowed for rental
property, owners to come forivard with their unrecorded/unapproved dwelling units. Staff initially
recommended a twenty -four -month voluntary application period plus a six-month implementation
delay for initial public outreach.
Council generally agreed to consider an extended incentive period due, in part, to the current
economic conditions. Council directed staff to:
consider incentives to deter property owners from waiting until the twenty-four month
deadline to identify their rental units;
continue outreach efforts to neighborhoods and renters; and
verify what enforcement tools are available for unrecorded/non-approved rental housing in
the interim.
Based upon the Council discussion at the work session and feedback from stakeholders, staff now
recommends a twenty-five month program, which includes an additional month at the beginning of
the program for outreach. During this extra month, staff will commence an ongoing comprehensive
and targeted public outreach campaign to inform all affected parties of the incentive program. (See
attachment #2)
OUTREACH (See attachment #3)
From November 2008 to February 2009, staffconducted outreach with a variety ofaffected parties
to gather input on both the problem and proposed solutions, including: rental property owners and
managers, landlords, members of CSU Legal Services, citizens, representatives from the Board of
Realtors, the Colorado Apartment Association, and the Fort Collins Housing Authority.
Since the February worksession, staffand various community representatives (including local rental
housing industry representatives, long-term residents, and CSU students) have met for the express
purpose of developing the proposed incentive option.
Councilmember Troxell recommended consulting with the CSU Everitt School of Real Estate for
more data on the number of affected rental housing units. Toward this end, staff contacted Anne
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Spry, Administrator for the Everitt Real Estate Center. She stated that the Center did not have any
data and referred staff to other agencies that may be able to help. None of those leads has yet
produced specific data regarding the number of unrecorded/unapproved rental housing units in the
community.
The housing industry (represented by the Fort Collins Board of Realtors, the Colorado Apartment
Association, and the Fort Collins Housing Authority), residents, and students collaborated with City
staffto develop proposed incentives to encourage widespread compliance with minimum health and
safety standards in rental housing. Although there is a consensus within the housing industry that
compliance with rental housing minimum health and safety standards is important, there are
concerns over the financial impact of having to make necessary improvements during the current
economic downturn.
The long-term neighbors generally support Council 's direction and feel the incentive period should
be no longer than twenty four months. They also generally concur with the early application strategy
through progressive fee increases to deter owners from waiting to the last minute to participate.
They support the same application period but prefer intervals with fees increased as follows: $200
during the first thirteen months, increasing to $400 for the next six months, then $600 for the last
six months. They felt this was a reasonable compromise in lieu of paying impact fees during the
incentive period.
Students' concerns are related to a possible increase in rents because of needed improvements.
They are also reluctant to complain about health and safety violations for fear of retribution by
landlords.
PROPOSED INCENTIVE OPTION FOR PROPERTY OWNERS
With extensive outreach and stakeholder collaboration, together with Council 's direction, staff has
developed the proposed incentive option described below to encourage widespread compliance. A
variety of options were considered. The majority of stakeholders concur with the proposed course
of action presented below:
Twenty-five month application period. Property owners would have twenty-five months from
the date the ordinance goes into effect to apply for a certificate of occupancy. A one-time fee would
be charged for processing the application as follows: $200 during the first thirteen months,
increasing to $300 for the next six months, then $400,for the last six months. Owners would also
be responsible for paying any fees or taxes that would normally be due upon issuance of a building
permit for any work needed to bring their dwelling units into compliance with the Rental Housing
Standards.
The proposed approach would provide an incentive for property owners to voluntarily disclose
unrecorded/unapproved rental housing properties. If property owners voluntarily provide this
information within the application period, they will be charged a one-time application fee (in lieu
of the regular development review fee) but will not have to pay any impact fees or City building
permit fees for work done in the past when the units were created.
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April21, 2009
To qualify.for the voluntary application period, the added rental housing units) must have been
created or converted by December 31, 2008. This date was chosen to be as inclusive as possible to
encourage compliance ofall existing unrecorded/unapproved rental dwelling, yet sending a clear
message that any newly created rental units (as ofJanuary 1, 2009) must comply with current City
standards and pay all applicable fees and taxes. Staff believes most unrecorded/unapproved
dwelling units would have been created years ago when there were fewer regulations and lower
impact fees.
In addition, property owners oftiwo family and multi family dwellings in zone districts that currently
do not allow for such dwellings would have to produce "clear and convincing evidence" that, when
the dwellings were constructed or converted to such use, the use was allowed by the City. If there
is no clear evidence and current zoning does not allow two family or multi family dwellings, the
dwelling unit will have to revert back to a single-family unit.
Applicants will not have twenty-five months to make necessary corrections for compliance. Required
corrections for compliance will follow the City's standard building permit process for completing
work. Once the application has been submitted and the preliminary inspection completed, the time
allowed to make any corrections would be based on the degree of urgencv of the health/safety
violations, the cost of any needed improvements, and the time needed to comply with any zoning
requirements.
Staff recommends that any property that undergoes ownership transfer during the incentive period
be eligible to participate, provided that the new owner applies within the incentive period.
Otherwise, the new property owner would have no incentive to submit an application to comply with
the Rental Housing Standards.
CONTINUED NON-COMPLIANCE
If the owner of an unrecorded/unapproved rental dwelling unit fails to cone forward during the
incentive period, and the unit later comes to the attention of the City, the owner will be assessed all
applicable building permit, development review and impact fees at the rates in effect at the time such
unit is discovered unless, prior- to June 15, 2012, the owner can demonstrate to the Building Official
or to the Building Review Board that the dwelling was purchased prior December 31, 2008, and that
the owner cold not reasonably have known of the program. The City will also require that the
property owner bring the unit into compliance with the Rental Housing Standards and pay the
normal fees for any building permits needed to accomplish that.
STAFF RECOMMENDATION
Staff, representatives fi-om the housing industry and the Affordable Housing Board recommend:
a. A 25-month application period.
b. Aone-time application1filingfee of$200, which would apply during thefirst thirteen
months; the fee would increase to $300 duringfor the next six months, and increase
to $400 during the last six months of the program.
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April21, 2009
C. Owners would have to pay any fees and/or taxes that would normally be due upon
issuance of a building permit for any work needed to bring the dwelling unit(s) into
compliance with the Rental Housing Standards.
d. Owners will not be assessed any City impact fees if they provide a complete
application during this 25-month program.
e. Owners will not be subject to civil citations during the incentive period.
The recommendation is based on:
1. protecting the public interest regarding residents at risk in existing substandard rental
housing,
2. ensuring responsible stewardship of Cityfees,
3. providing an incentive to foster a longstanding community partnership with owners and the
housing industry to encourage widespread compliance during the current economic
downturn, and
4. allowing a reasonable period of time to make all rental property owners aware of the
incentive program and the need to identify their unrecorded/unapproved rental properties.
TIMELINE
The proposed ordinance becomes effective ten days from adoption at Second Reading on May 5,
2009. "
Jeff Scheick, Planning, Development and Transportation Director, stated the purpose of the proposed
Code revisions is to encourage rental housing safety. Requirements for certificates of occupancy for
dwelling units have been in place since 1980 and recently, City Code was modified to include the
provision that owners of rental housing comprising of two or more units must have a certificate of
occupancy before rental. When the new Rental Housing Standards were adopted last fall, Council
directed staffto develop ways to bring unrecorded duplexes into compliance with the new standards
with minimum financial impact to the property owners but would encourage the owners to bring the
unrecorded units up to the new standards. The focus of the standards is to provide safe and sanitary
conditions for people living in rental units. The proposed twenty-five month application period will
provide amnesty where no impact fees will be charged. Waiving the impact fees represents a savings
of hundreds or thousands of dollars to the property owners. Staff recommends the twenty-five month
application period to provide enough time to inform a broad base of renters and rental property
owners and provide opportunity for the properties to be brought into compliance.
In order for the unrecorded units to meet the criteria for the application and waiver of impact fees,
the units must have been created or converted by December 31, 2008. If the zoning for the area
where the unrecorded units are located does not allow such housing, the owners will need to produce
clear and convincing evidence that the City did allow such housing when the units were first created
as rental units. The standard development review fee would be waived in lieu of the proscribed
application fee at the time of the application during the incentive period. The standard building
permit fees and taxes related to the cost of regular improvements must be paid. The time required
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to process an application will depend on the amount of time needed by the property owners to bring
the property into compliance.
If a property owner does not submit an application and get a certificate of occupancy for unrecorded
rental units by the end of the twenty-five month application period, the property owner will be
charged current impact, building and development review fees and make all improvements necessary
to bring the property into compliance as if the rental units were newly created.
Chip Parrish, Fort Collins resident, stated the mortgage market for investment properties has changed
dramatically and it is increasingly difficult to purchase or refinance investment properties. The
incentive program, recommended by staff, provides a good option for owners to bring their
properties into compliance without large fees that could only be paid through refinancing the
property. He supported the proposed plan.
Carrie Ann Gillis, 8020 Park Hill Drive, thanked staff for interacting with many different groups to
develop a solution for this issue. She supported the proposed plan.
Michelle Jacobs, 352 Greentail Drive, Loveland, Fort Collins Board of Realtors, thanked City staff
for working with citizens from various viewpoints to craft the proposed incentive plan and she
supported adoption of the Ordinance as it is a fair compromise and will provide safer housing for
tenants.
Brandon Bidwell, 2919 Worthington, stated the twenty-five month application period will provide
an incentive for property owners to report unrecorded rental units and will give landlords enough
time to comply with the City's rental standards.
Sarah Bennett, Fort Collins Board of Realtor President, stated the Board supports the proposed
incentive plan and is in the best interests of the community. The twenty-five month timeframe will
provided enough time to implement the plan and gain compliance from property owners. Waiving
impact fees is the greatest incentive to bring those property owners forward during the voluntary
application period. The Board has offered $3000 of in -kind promotion to assist staff in informing
the community of the voluntary application period.
Chris Guillan, 412 Scott Avenue, Fort Collins Board of Realtors, stated adoption of the proposed
incentive plan will lead to safer housing for renters.
Rick Hausman, 1813 Pawnee Drive, stated adoption of the proposed Ordinance will create safer
housing for tenants.
Tom Tucker, 3019 Stanford, property manager, did not support adoption of the proposed incentive
plan as it is not right to charge fees for a property that was converted to rental units many years ago.
Such properties should be "grandfathered" in and not charged any fees. The property owner should
not have to prove his property was zoned for duplexes at the time it was converted. The onus should
be on the City to prove the property was never zoned for duplexes.
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Blue Hovatter, Fort Collins resident, stated the proposed plan was developed to provide safe housing
for renters but the timeframe for the plan is too long and should be shorter to require landlords to
quickly bring rental property into compliance. The fees should be higher.
Clint Skutchan, 719 Great Plains Court, Fort Collins Board of Realtors, stated the rental housing
standards adopted by the City contain provisions that allow only 30 days for correction of basic
health and safety violations. The timeframe for the proposed plan will not allow landlords the luxury
of delaying corrections of basic health and safety violations. The basic development review fee is
$192 and the fees proposed in the plan reflect this cost. Raising the fees by a large amount during
the last six months of the incentive program would be punitive to those who do not learn of the
program until that time. The Board supports the adoption of the proposed plan.
Doug Brobst, 1625 Independence Road, stated the current development review fees are $450.
Waiving impact fees, which are a considerable sum, is an excellent incentive that will encourage
most property owners to bring their rental units into compliance. The proposed plan does not
address the issue of property owners who will wait until the very last moment to bring their
properties into compliance, even though their tenants are living in unsafe conditions. The fee
structure should be much higher to encourage property owners to apply within the first thirteen
months.
Councilmember Kottwitz asked if a tenant could break a lease because of unsafe living conditions.
City Attorney Roy stated State statutes allow certain circumstances where failure to meet the
standards established in State law justifies the tenant breaking the lease. The City Code does not
govern that issue.
Councilmember Kottwitz asked for clarification of the timeframe that will be allowed for property
owners to fix any safety violations found on their rental properties. Felix Lee, Director of
Neighborhood and Building Services, stated the amount of time allowed for corrections is dependent
on the severity of the issue. If a violation seriously affects the health and safety of tenants, City staff
can post the property as "unfit for occupancy."
Councilmember Kottwitz asked if staff would work with property owners to prove when a rental
property was converted and if it was zoned for that purpose at the time the property was converted.
Lee stated staff will assist citizens with the research necessary to provide a date of conversion. The
point of the voluntary application period is to encourage compliance. Diane Jones, Deputy City
Manager, stated the focus is to determine if the property meets the current rental housing standards
and is in the correct zone for rentals.
Councilmember Kottwitz asked if a process existed to allow a property located in a zone that does
not allow rentals to obtain an exemption. Peter Barnes, Zoning Supervisor, stated a determination
will need to be made if the property was ever in a zone that allowed duplexes. If the property was
never zoned for duplexes, the process would end and the property could no longer be used as a
duplex.
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Councilmember Ohlson asked for clarification of the fees that would be charged for this process.
Scheick stated a new rental unit built today would be charged $192 for a review fee and $250 for an
engineering review. Since the unrecorded units are not new, some streamlining of fees could occur
and not every unit reviewed under this policy will be charged $450. The cost of review will most
likely be $200-$250. The goal is to bring as many properties into compliance as possible and staff
is attempting to balance City fees with providing incentives to property owners to submit
applications.
Councilmember Ohlson asked if the compliance process will include a requirement that each unit
has its own water meter. Lee stated there is no requirement for units to be on separate water or
electric meters but the property would be charged multi -family rates for those utilities. Staff will
provide more information about the changes in rates for water, stormwater and electric rates.
Councilmember Ohlson stated if a property would be required to become a single-family dwelling
if it cannot be proven it was originally zoned for duplexes. Lee answered in the affirmative.
Councilmember Troxell asked for more information about the improvement of safety in the
unrecorded dwelling units. Lee stated health issues would include moisture control to prevent mold,
general sanitation, adequate plumbing. Scheick noted some key elements of safety in rental units
include egress windows from basement bedrooms, smoke detectors, and electrical wiring that meets
Code requirements.
Councilmember Roy asked for the number of applicants staff expects if the ordinance is adopted.
Scheick stated many property owners are ready to comply as soon as the process is put into place.
Councilmember Troxell made a motion, seconded by Councilmember Kottwitz, to adopt Ordinance
No. 045, 2009 on First Reading.
Councilmember Troxell stated the proposed plan includes input from many different stakeholder
groups and the proposal addresses many of the issues raised previously. This plan will encourage
compliance with the rental housing standards. The twenty-five month application period allows
enough time for properties to voluntarily become approved.
Councilmember Kott witz stated the application process will be productive and encourage property
owners to come forward and bring their rental properties into compliance and does not create a
punitive approach.
Councilmember Ohlson stated the City needs to work harder to ensure a variety of viewpoints arc
included in any community discussion of issues to make sure all views are considered. Any one
viewpoint should not be allowed to dominate. The proposed plan will provide greater compliance
for rental units and provide safer and more sanitary living conditions for renters.
Councilmember Roy stated the proposed plan does provide a way for unrecorded duplexes to be
brought into compliance and will provide a net gain for the City.
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Councilmember Poppaw thanked staff for its work in developing the application period.
Mayor Hutchinson stated the proposed plan is a balanced approach to a difficult problem and is an
attempt to be fair to all sides of the issue. The goal of the plan is to have rental housing that meets
health and safety standards and the incentives in the plan should provide encouragement to property
owners to submit their applications.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Ordinance No. 046, 2009,
Appropriating Funds from the City's General Fund Reserves for Transfer
to the Fort Collins Urban Renewal Authority for the Purpose of Providing
a Loan for the North College Marketplace Project, Adopted on First Reading
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
There will be significant and beneficial financial impacts to both the City of Fort Collins and the
Fort Collins Urban Renewal Authority as a result of the North College Marketplace. Over the life
of the North College Urban Renewal Authority Plan Area, the project will generate an estimated
$16.4 million in tax increment. This action approves the loan agreement between the City and the
Urban Renewal Authority (URA) to finance the commitment made by the URA Commission to the
project proponent back in September 2008. The project proponent has delivered the documents
reflecting the commitment of Kroger Corporation ("King Soopers) to the project.
When the Urban Renewal Authority (URA) Commission approved the agreement in September 2008,
interest rates were higher (4.00%) and the related itemization ofthefinancial impact was asfollows.
1. URA Funding for projects elsewhere in the URA Plan Area $4.6 M
2. URA Funding for the North College Marketplace
A. City Capital Improvements - College/Willox Improvements $2.8 M
B. City Capital Improvements - Stormwater/ Wetlands Improvements $1.8 M
C. Other Public Improvements - On -Site (not Deeded to City) $3.4 M
Subtotal for Funding of the Project Public Improvements $8.0 M
3. URA Funding for financing costs to URA
Total Financial Impact of the Project
"f ll
$3.8 M
16.4 M
April21, 2009
Now that interest rates have dropped significantly (2.85°yo), the related itemization of the financial
impact is as follows:
1. URA Funding for projects elsewhere in the URA Plan Area $5.8 M
2. URA Funding for the North College Marketplace
A. City Capital Improvements - College/Willox Improvements $2.8 M
B. City Capital Improvements - Stormwater/ Wetlands Improvements $1.8 M
C. Other Public Improvements - On -Site (not Deeded to City) S3.4 M
Subtotal for Funding of the Project Public Improvements $8.0 M
3. URA Funding for financing costs to URA
Total Financial Impact of the Project
16.4 M
52.6 M
The decline in interest rates as compared to the projection in September when the Financial
Assistance Agreement was approved results in an additional $1.2M being available for projects
within the overall North College URA Plan Area.
EXECUTIVE SUMMARY
The Urban Renewal Authority (URA) is seeking a loan fi-om the City to establish monetary flow of
Ands to begin the North College Marketplace wetlands mitigation reimbursement and of street
infrastructure capital improvement projects and the demolition and property cleanup. The cost of
these projects, without financing charges, total $4, 942, 476. The requested loan amount from the
City of Fort Collins' General Fund Reserves to the Urban Renewal Authority will be 55,000,000.
The URA will utilize the City's Interfund Borrowing program that was formally added to the City's
investment policies last year. This program enables the City to use a portion of its investment
portfolio to assist CityDepartments and related entities (e.g., the Downtown Development Authority,
and the Urban Renewal Authority) to access funds at a competitive interest rate while still providing
a market based yield to the City investment portfolio.
BACKGROUND
On September 16, 2008, the URA Board approved Resolution No. 011, authorizing an agreement
between the URA and 1908Rrorth College, LLCto providefrnancial assistancefor the North College
Marketplace. It was determined at that time that the URA would need to borrow the funds to pay
for the public improvements and then bond against that amount in the, future. The URA is proposing
to borrow a total of $5, 000, 000 from the City.
The City and the URA entered into an intergovernmental agreement on August 15, 2006 allowing
"the City to advance funds to the URA in support of its activities. Any such advance offunds shall
be evidenced in writing in the form of a loan memorialized by a promissory note or a grant, which
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April21, 2009
transaction shall not be valid until first having been approved by both the City Council and the URA
Commission. "
Additionally, the 2008 Updated Investment Policy modified on December 2, 2008 will allow for
Interfund Borrowing.
Attached is Exhibit C (Attachment ])from the Redevelopment Agreement for the North College
Marketplace project whereas the public improvements have been listed to include total costs. The
two line items regarding this action are listed below:
*Off Site Street Infrastructure (Local Street Portion) $2,812,620
*Wetlands Mitigation, Landscaping, Unsuitable Materials and
Payment to the Wetlands Reserve - Natural Areas Fund $1, 763, 206
*Demolition and Property Cleanup Cost $ 366,650
Subtotal $4, 942, 476
*Contingency Funds 57.524
Total $5, 000, 000
All costs are the same as presented to the URA Board on `September 16, 2008. "
Christina Vincent, Urban Renewal Authority Planner, stated approval of the proposed loan to the
Urban Renewal Authority (URA) will enable road improvements on North College Avenue and
Willox, utilities and site preparation with wetlands mitigation to begin.
Chuck Seest, Finance Director, stated interest rates have improved significantly since the project was
approved last September. As a result, the financing costs have dropped from $3.8 million to $2.6
million and the difference is available to be utilized in the project area. The terns of the loan
agreement will make $5 million available to the URA ten days after second reading ofthis ordinance.
The interest rate is tied to the 10-year T-note. The URA plans to repay the note within a 10-13 year
timeframe. However, the URA is subject to a 5% late charge if it is late on an annual payment.
Once the funding is provided to the URA, the URA will appropriate the funds into a City capital
project in order for the street and stormwater improvements to be made. Another loan agreement
will be presented to Council in the fourth quarter of 2009 for the remaining $3 million of project
costs. Bringing the loans in a'phased manner lowers the overall cost to the URA and preserves the
City's ability to retain its capital, as well.
Councilmember Ohlson asked if the URA will receive a larger portion of the funds if construction
costs are lower than projected. Seest stated it is likely there will be savings on the street
improvement project. The URA funds are used only on a reimbursable basis, to paid for expenses
already incurred. A significant portion of the improvements projects are City capital projects and
are under the control of the City and fall under the.City's purchasing policies.
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April21, 2009
Councilmember Ohlson asked for information regarding the quality of wetlands being restored. Joe
Frank, Advance Planning Director, stated the mitigation project will produce a better quality of
wetlands than is currently at the site. The wetlands will be given to the City, once the improvements
are installed. The Project agreement states the businesses that will be located on the site will provide
ongoing funding for maintenance of the wetlands.
CouncilmemberOhIson asked for updates on future wetlands mitigation projects that would indicate
how well the mitigation is working.
Councilmember Roy asked for an update on the North College Marketplace Project. Eric Holsapple,
developer, stated the Project is ahead of schedule and is almost through the City's approval process.
The Planning and Zoning Board will consider the site planning issue in May. The bidding process
is continuing for the Project and lower steel and asphalt prices are helping to decrease costs.
Councilmember Roy asked why King Soopers is not interested in attaining a LEED certification. .
Mr. Holsapple stated the design of King Soopers stores meets 75-8000 of L•EED requirements, but,;;
the expense to achieve a LEED certification is too great and does not give them a great enough return
on investment.
Councilmember Roy asked how the downturn in the economy is affecting King Soopers' plans for
the site. Mr. Holsapple stated King Soopers is planning to build marketplace at its original size of
120,000 square feet.
Councilmember Ohlson asked if other developments that come to this intersection after this Project
will be required to pay a share of the street improvement costs. City Manager Atteberry stated
improvement costs will be collected from future developments and those funds will be returned to
the URA for other projects.
Councilmember Ohlson stated future projects that receive URA funding should be required to
achieve LEED certification.
Councilmember Poppaw asked if it is possible to require the North College Marketplace to achieve
LEED certification. Mr. Holsapple stated King Soopers is examining every cost associated with this
project and is not willing to spend any more money towards LEED certification. The cost of
achieving LEED certification could stop the project completely. City Manager Atteberry stated
adding a LEED certification requirement to URA policies is possible, but it does come with a cost.
In some cases, a project may choose not to come to Fort Collins if it must meet that requirement.
Staff has discussions with developers about LEED certification and green building practices and
encourages new development to meet that standard.
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
046, 2009 on First Reading.
Councilmember Ohlson stated when a project has received incentives from the City, such as URA
funding, the project should be required to reach LEED certification.
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The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 9:55 p.m.
ATTEST:
tea.
City Clerk
Adjournment
I