HomeMy WebLinkAboutMINUTES-05/05/2009-RegularMay 5, 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, May 5, 2009, 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: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and
Troxell.
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
George Hoffman; 1 101 Valley Oak Court, stated the Mason Corridor is an unnecessary project and
should not go forward.
Courtney Sullivan, 1317 Luke Street, stated she will be interacting with Council for the next year
in her position as ASCSU Director of Department of Community Affairs.
Carrie Gillis, 2213 Timber Creek Drive, stated her concerns about the City's budget and Council's
decision to keep the Budgeting for Outcomes areas the same as were used in previous years.
Mike Kronberger, North College Motors General Manager, stated Item #20 Items Relating to the
North College and East Willox Lane Capital Improvement Project will authorize the use of eminent
domain for this Project, which will affect his business property. He encouraged the use of eminent
domain only as a last resort and to continue in good faith negotiations with property owners.
Mike Dervereaux, 2150 Maid Marian Court, stated his support for the use of power wheelchairs in
bike lanes at the discretion of the wheelchair user.
Cheryl Distaso, 135 South Sunset; stated the City needs to allow power wheelchairs to be used in
bike lanes when the users determine using a bike lane is the safest route to take.
Kalin Logan, 1200 Matuka Court; stated an educational campaign about thebarriers wheelchairusers
face every day would be beneficial.
Daniel Gearhart, incoming ASCSU President, stated his desire to work with Council on student
issues.
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Citizen Participation Follow-up
Councilmember Roy asked how many tickets have been issued in the past year to power wheelchair
users operating in the bike lanes. Joe Olson, Traffic Engineer, stated allowing the use of power
wheelchairs in bike lanes is a complicated issue. Staff has examined the issue and recommends no
change to the current ordinance banning the use of power wheelchairs in bike lanes. Staff has talked
with the City Attorney's office, Police Services, Bike Fort Collins, Commission on Disabilities and
has researched what other communities allow across the nation. The research shows no other
communities have allowed the use of power wheelchairs in bike lanes, due to safety concerns. The
number of citations issued in the past year will be provided to Council. The current law states
pedestrians or wheelchair users are not allowed to be in the street when sidewalks are available. It
is legal for wheelchairs to be in a bike lane when there are no sidewalks available. Police have
discretionary ability to decide whether to issue a ticket to a power wheelchairuser operating in a bike
lane. Staff recommends further training for Police Services to ensure officers are sensitive to the
issue of wheelchair use on rough or broken sidewalks.
Councilmember Roy stated concerns about the potential for accidents with bicycles and wheelchairs
in the bicycle lanes. D.K. Kemp, Bicycle Coordinator, stated wheelchairs moving in the bike lanes
does not pose much hazard to a bicyclist since passing a wheelchair would be similar to passing
another bicyclist in a bike lane.
Councilmember Poppaw requested a work session on this topic. City Manager Atteberry stated time
for a work session was not available until August.
Councilmember Ohlson stated there was no need for a work session as this item could come directly
to Council as an Ordinance, which would have two readings and allow time for any changes or
modifications Council would consider.
City Attorney Roy asked if three Councilmembers supported a change to the current law and what
changes Council would like to see brought forward. Currently, staff recommends no change to the
current Code.
Mayor Hutchinson stated the Leadership Planning Team will decide if this issue will be brought
forward.
Councilmember Troxell thanked the ASCSU leadership for introducing themselves to Council. The
City is having tough economic times and the 2010-2011 budget process needs to contain mechanisms
for prioritization of the City's programs so informed decisions can be made. It is important that the
City seek and retain primary jobs. The use of eminent domain for any project is the City's last
option.
Agenda Review
City Manager Atteberry stated Item #22 Resolution 2009-044 Approving the Acceptance of the
Proposed Donation of the Sculpture "Transcend" will be postponed indefinitely.
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Bruce Lockhart, 2500 East Harmony, pulled Item #17 Second Reading of ordinance No. 046, 2009,
AppropriatingFunds./roin the City's General Fund Reserves, for Transfer to the Fort Collins Urban
Reneiva1 Authority for the Purpose of Providing a Loan for the North College Marketplace Project.
CONSENT CALENDAR
6. Second Readine 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.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, transfers
$280.315 from existing Street Oversizing appropriations into the Capital Projects Fund for
the Drake Road Improvements, Taft Hill to Overland Trail Project. The improvements are
needed to construct the remaining roadway widening on the south side of Drake Road,
between Taft Hill and Overland Trail. This will allow Drake Road to be restriped to a four
lane roadway. This appropriation will provide the funds needed to immediately proceed with
construction of the roadway improvements.
7. Second Reading of Ordinance No. 034, 2009, Appropriating Proceeds from the Issuance of
Cityof Fort Collins Water Utility Ente1prise, Water Revenue Refunding Bonds, Series 2009,
in the Maximum Aggregate Principal Amount of $8,500,000.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, appropriates the
Water Utility Fund proceeds from bonds issued by 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.
The bonds being refunded have interest rates of 4.25% to 4.625%; the new bonds would
result in an average interest rate of approximately 2.50%. Overall, the transaction is
estimated to yield cashflow savings of $430,000 and net present value savings of $400,000.
8. Second Reading of Ordinance No. 035. 2009. Authorizing the Issuance and Sale of the Cit
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, unanimously adopted on First Reading on April 21, 2009, authorizes the
issuance of tax-exempt private activity bonds in an amount not to exceed $1,400,000 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 and present value savings of $194,000
over the life of the bonds. These bonds are not an obligation of the City of Fort Collins.
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9. Second 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, unanimously adopted on First Reading on April 21, 2009, 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.
10. Second Reading of Ordinance No. 037, 2009, Amending Chapter 5 of the City Code
Regarding Violations and Penalties to the International Property Maintenance Code.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, amends the
violation and penalty section of the International Property Maintenance Code (1PMC) in
order to clarify that certain violations of the IPMC are civil infractions while others are
criminal misdemeanors. It will also delete Section 5-48 of the City Code as it is no longer
necessary.
11. Second Reading of Ordinance No. 038, 2009, Expanding the Boundaries of the Downtown
Development Authority and Amending the Plan of Development.
Ordinance No. 038, 2009, unanimously adopted on First Reading on April 21, 2009, changes
the boundaries of the Downtown Development Authority (DDA) District and amends the
Plan of Development of the Authority to include properties located in the Lemay/Lincoln
Avenue area and South Howes Street area.
12. Second Reading of Ordinance No. 039, 2009, Authorizing the Lease of City -owned Property
at 149 Grandview Avenue for Up to Five Years.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, authorizes staff
to rent the City -owned house located at 149 Grandview for up to five years.
13. Second 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. This
Ordinance, unanimously adopted on First Reading on April 21, 2009, dedicates the public
right-of-way in order to clearly delineate the boundaries of the public right-of-way for
Hickory Street.
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14. Second Reading of Ordinance No. 041, 2009, Authorizing the Lease of City -Owned Property
at 400 Wood Street for up to Fifteen Years.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, 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 terms, in exchange for payment of nominal
rent of $25 per year.
15. Second Reading ofOrdinance No. 042, 2009. Authorizinn 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
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,
unanimously adopted on First Reading on April 21, 2009, 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.
16. Items Relating to the Mountain View School Second Annexation and Zoning.
A. Second Reading of Ordinance No. 043, 2009, Annexing Property Known as the
Mountain View School Second Annexation to the City.
B. Second 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.
These Ordinances, unanimously adopted on First Reading on April 21, 2009, 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, Farming Zone District
in Larimer 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. The
requested zoning for this annexation is LMN, Low Density Mixed -Use Neighborhood.
17. Second 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.
The Urban Renewal Authority (URA) is seeking a loan from the City to establish monetary
flow of funds to begin the North College Marketplace wetlands mitigation reimbursement
and off site street infrastructure capital improvement projects and the demolition and
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May 5, 2009
property cleanup. The cost of these projects, without financing charges, total $4,942,476.
This Ordinance, unanimously adopted on First Reading on April 21, 2009, authorizes the
requested loan amount of $5,000,000 from the City of Fort Collins' General Fund Reserves
to the Urban Renewal Authority. 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 City Departments 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.
18. First Reading of Ordinance No. 047, 2009, Appropriating Unanticipated Revenue in the
General Fund for E911 and Emergency Medical Dispatch Systems at the Poudre Emergency
Communications Center.
Larimer Emergency Telephone Authority (LETA) provides funds to the Fort Collins Police
Services to be used for equipment and training to process E911 calls. This Ordinance
appropriates those funds.
19. First Reading of Ordinance No. 048, 2009, Appropriating Prior Year Reserves in the General
Fund From Police Seizure Activities for Police Services.
This Ordinance appropriates funds to be used by Police Services to pay for training as well
as to fund partnerships with community groups that seek to promote positive youth activities,
anti -violence, anti -drug, and diversity activities.
20. Items Relating to the North College and East Willox Lane Capital Improvement Project.
A. First Reading of Ordinance No. 049, 2009, Authorizing the Transfer of Existing
Appropriations from the Fort Collins Urban Renewal Authority Fund to the Capital
Projects Fund for the North College Avenue and East Willox Lane Improvement
Project.
B. Resolution 2009-042 Approving an Exemption to the Use of a Competitive Process
for a Contract with Interwest Consulting Group to Design Road Improvements for
the North College Avenue and East Willox Lane Improvements Project.
C. First Reading of Ordinance No. 050, 2009, Authorizing the Acquisition by Eminent
Domain Proceedings of Certain Lands Necessary to Construct Public Improvements
Related to the North College Avenue and East Willox Lane Improvement Project.
On April 21, 2009, City Council adopted, on First Reading, Ordinance No. 0.46, 2009,
Appropriating Funds from the City's General Fund ReservesforTransfer to theFort Collins
Urban Renewal Authority for the Purpose of Providing a Loan for the North College
Marketplace Project.
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Subsequently, the Fort Collins Urban Renewal Authority adopted URA Resolution No. 016,
Authorizing the Negotiation and Execution of a Loan Agreement with the City of Fort
Collins for the North College Marketplace Project.
OrdinanceNo. 049, 2009, appropriates funding from the URA into a Capital Projects account
for the design and construction of the improvements.
Resolution 2009-042 authorizes a Sole Source Agreement for the Engineering design of the
project.
Ordinance No. 050, 2009, authorizes the use of the City' s eminent domain powers to acquire
rights -of -way for the project, if necessary.
21. Resolution 2009-043 Authorizing the City Manager to Execute a Project Agreement with
. the Water Research Foundation to Conduct a Research Study Regarding Watershed Anal
This agreement would support the research study, "Watershed Analysis of Dissolved Organic
Matter and Control of Disinfection By -Products." The investigation will include, but not be
limited to, the effects of pine beetle infestation on water quality, and the potential for
photodegradation of dissolved organic matter in Horsetooth Reservoir water. The result of
the study would be a workable model for making watershed and water treatment facility
(WTF) management decisions.
22. Resolution 2009-044 Approving the Acceptance of the Proposed Donation of the Sculpture
"Transcend."
This Resolution approves the donation of artwork, a sculpture entitled "Transcend" by artist
Collen Nyanhongo, to the City. The sculpture will become part of the City's Art in Public
Places collection.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
6. Second 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.
7. Second 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.
8. Second 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; Making Determinations as to
May 5, 2009
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.
9. Second 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.
10. Second Reading of Ordinance No. 037, 2009, Amending Chapter 5 of the City Code
Regarding Violations and Penalties to the International Property Maintenance Code.
11. Second Reading of Ordinance No. 038, 2009, Expanding the Boundaries of the Downtown
Development Authority and Amending the Plan of Development.
12. Second Reading of Ordinance No. 039, 2009, Authorizing the Lease of City -owned Property
at 149 Grandview Avenue for Up to Five Years.
13. Second Reading of Ordinance No. 040, 2009, Declaring Certain City -Acquired Property as
Hickory Street Right -of -Way.
14. Second Reading of Ordinance No. 041, 2009, Authorizing the Lease of City -Owned Property.
at 400 Wood Street for up to Fifteen Years.
15. Second Reading of Ordinance No. 042, 2009, Autborizing 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.
16. Items Relating to the Mountain View School Second Annexation and Zoning.
A. Second Reading of Ordinance No. 043, 2009, Annexing Property Known as the
Mountain View School Second Annexation to the City.
B. Second 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.
17. Second 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.
26. Second 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.
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Ordinances on First Reading were read by title by City Clerk Krajicek.
18. First Reading of Ordinance No. 047, 2009, Appropriating Unanticipated Revenue in the
General Fund for E911 and Emergency Medical Dispatch Systems at the Poudre Emergency
Communications Center.
19. First Readingof Ordinance No. 048,2009, Appropriating Prior Year Reserves in the General
Fund From Police Seizure Activities for Police Services.
20. Items Relating to the North College and East Willox Lane Capital Improvement Project.
A. First Reading of Ordinance No. 049, 2009, Authorizing the Transfer of Existing
Appropriations from the Fort Collins Urban Renewal Authority Fund to the Capital
Projects Fund for the North College Avenue and East Willox Lane hnprovement
Project.
C. First Reading of Ordinance No. 050, 2009, Authorizing the Acquisition by Eminent
Domain Proceedings of Certain Lands Necessary to Construct Public Improvements
Related to the North College Avenue and East Willox Lane Improvement Project.
28. First Reading of Ordinance No. 051, 2009, Amending the City Code Relating to Enforcement
of Occupancy Limits.
29. First Reading of Ordinance No. 052, 2009, Amending Section 12-19 and Article XV of
Chapter 15 of the City Code Relating to Trash Collection.
CouncilmemberManvel made a motion, seconded by Councilmember Poppaw, to adopt and approve
all items not withdrawn from the Consent Calendar. Yeas: Hutchinson, Kottwitz,'Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Reports
CouncilmemberManvel stated heparticipated in the Campus Community Coalition discussion about
alcohol and substance abuse among teens in the community.
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 as Amended on Second Reading
The following is staffs memorandum for this item.
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"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 Section5-261 relating tofeesand "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.
This Ordinance, unanimously adopted on First Reading on April21, 2009, establishes an incentive
program with a twenty-five month application period. Property owners will have twenty-five months
.from May 15, 2009, (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 will also have to pay any fees or taxes that would normally be due upon issuance ofa
building permit for any work needed to bring their dwelling units into compliance with the Rental
Housing Standards.
Council had a follow-up request from First Reading relating to requirements forseparate water and
separate electric utility metering ofsingle family dwellings that are converted to two or more units.
For such unrecorded conversions the following are applicable:
Water meters — Preexisting two- and multi family buildings with a single water meter may
continue. The monthly -base charge" going from a single-family use to a duplex increases
.from $12.72 to $15.51 with concurrent slightly different increasing tiered "volume" (per
1000 gallons) charges assessed among single family, duplex-, and multi family buildings
respectively.
Electric meters —Preexisting two- and multi -family buildings with a single electric meter
before 1980 are legally grandfathered and may continue indefinitely, provided no major
electric system changes occur, which result in significant increased power demand.
Additional dwelling units created beginning in 1980 and later, are subject to individual
metering with associated plant investment fees and new meter/service installation costs.
Council also requested information about the current costs ofa minor amendment review. A zoning
and engineering review of a new minor amendment project costs approximately $450. A property
owner of -unrecorded/ unapproved" dwelling units who comes forward within the first thirteen
months will pay only $200 for a minor amendment review. "
Councilmember Manvel withdrew from the discussion of Second Reading of Ordinance No. 045,
2009, Amending Section 5-261 ofthe City CodeRelated to Feesfor Rental Housing andEstablishing
an Incentive Program with Regard to the Payment of Such Fees For Rental Dwelling Units Not
Previously Recorded With or Approved by the City due to a conflict of interest.
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May 5, 2009
City Attorney Roy read the changes made to Ordinance No. 045, 2009 between First and Second
Reading. The changes clarify the fees that will be waived by the City for owners of previously
unrecorded dwelling units if they participate in the incentive program. The waived fees will be the
impact fees and the plant investment fees that would normally be payable upon the issuance of
permits for the units when they were constructed or converted. A change was made in the seventh
Whereas clause that now reads:" ..... a twenty-five month incentive program during which the owners
of unrecorded/unapproved rental dwelling units will be able to apply for certificates of occupancy
for their dwelling units and also apply for such building permits as may be necessary to bring such
units into compliance with the Rental Housing Standards, without having to pay the impact fees and
plant investment fees that would normally be payable..." The second change is in Section 2(a) that
now reads: "...if such certificate of occupancy is issued, be relieved of the obligation to pay the
impact fees that would normally be payable under Chapter 7.5, Article II, III, V, and VI of the City
Code or the utility plant investment fees that would normally be payable under City Code Sections
26-120, 26-283, 26-472, and 26-512 forthe construction or conversion of said dwelling units, as long
as the following conditions are met." The third change was made to Section 2(c) that now reads:
"Nothing herein shall relieve the owner from obtaining such building permits and inspections as may
be required to bring a rental dwelling unit into compliance with the requirements the City Code and
Land Use Code, and paying all associated fees, excluding only those fees specified in Section 2(a)
above."
Blue Hovatter, Fort Collins resident, stated the review fee should be higher since the City is already
waiving thousands of dollars in impact fees.
Alan Cram, Fort Collins resident, asked if there will be an agency or individual group assigned to
notify investment property buyers about this program and who will oversee the notification process.
The changes that will be required will cause additional costs for landlords and will probably cause
rents to increase. He did not think enough public input from all viewpoints had been provided and
no mechanism exists to ensure all landlords are notified of the program.
Chip Parrish, 144 North Mason, stated in the current economic market, it is difficult for investment
property owners to refinance their properties to obtain funds to make any changes that might be
required by this ordinance. The City has done a good job of working with various groups to reach
a resolution on this issue. He urged Council to adopt the Ordinance.
Michelle Jacobs, 352 Greentail Drive, Loveland, Fort Collins Board of Realtors, stated the Board
supports adoption of the Ordinance and the Board will be an active participant in communicating
the incentive program to landlords and investment property owners.
Lloyd Walker, 1756 Concord Drive, supported adoption of the Ordinance and stated it is a fair
compromise to resolve a decades -old problem.
Carrie Gillis, 2213 Timber Creek Drive, stated the Ordinance should be adopted without any changes
to the language in the Ordinance as it was presented on First Reading. She asked why the inspection
cost was now $450, instead of $200, which was agreed upon at a stakeholders' meeting held earlier.
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Courtney Sullivan, 1317 Luke Street, ASCSU Directorof Department of Community Affairs, stated
the commitment to rental safety is important to college students and ASCSU supports adoption of
the Ordinance.
Chris Guillan, 412 Scott Avenue, Fort Collins Board of Realtors, stated the updated Rental Housing
Standards adopted last year and this incentive program will help to provide safe rental housing for
the community.
Clint Skutchan, 719 Great Plains Court, Fort Collins Board of Realtors, supported adoption of the
Ordinance because the incentive program will encourage the largest number of unrecorded rental
dwelling units to be brought into compliance.
Bruce Lockhart, 2500 East Harmony, opposed adoption of the Ordinance because enforcement will
be difficult in the long term. The impact fees should not be charged.
Councilmember Troxell asked why the changes were made to the Ordinance. City Attorney Roy
stated the changes were made to clarify that the only fees being waived during the incentive period
are the impact fees and the plant investment fees. Jeff Scheick, Planning, Development and
Transportation Director, stated the changes were made to be as clear as possible about what fees will
or will not be charged. The utility fees need to be addressed and the changes clarify how those fees
will be handled. Diane Jones, Deputy City Manager, stated the intent was for the ordinance to waive
all impact fees and the changes were made to be explicit about waiving those fees.
Councilmember Troxell stated there was much collaborative effort with the community to develop
the process and he asked if an other collaborative efforts went into creating the changes to the
ordinance. Felix Lee, Directory of Neighborhood Building Services, stated throughout the
discussions with stakeholder groups, the understanding was that utility impact fees would be waived
as part of the incentive program. Jones stated no change has been made to the ordinance between
First and Second Reading regarding the application fees that will be charged to property owners.
Scheick stated the fee would be approximately $450 for a new duplex that undergoes review todayfor
doing a minor amendment under the City's Land Use Code, which involves the circulation of the
proposal through nine departments across the City to determine if the change meets City standards
and requirements. Many of the unrecorded dwelling units will not require that type of full review
and will probably be reviewed by only three departments to process the application and will not be
charged the full $450. The $200 application fee should cover the internal costs for that abbreviated
review, as well as performing the initial inspection. The $200 application fee does not include any
building permit fees.
City Attorney Roy stated the Ordinance on First Reading relieved owners of unrecorded dwelling
units of the obligation to pay all City fees or taxes that would normally be payable under the City
Code or Land Use Code for the construction or conversion of the dwelling units. The amended
Ordinance clarifies that the impact fees and plant investment fees are being waived. Jones stated an
owner will be required to pay fees and taxes on any improvements that are required to be made to
a unit to bring it into compliance with health and safety standards.
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Councilmember Ohlson stated waiving the impact fees will save the property owners thousands of
dollars and the amended language provides clarification. An unrecorded unit might be charged
additional rates for water and electric service to bring it into compliance as a multi -family dwelling
and not a single family unit. Lee stated once the unit is inspected and brought into compliance, the
base rate for water will change and be charged at a different rate but the unit will not be required to
buy another water meter.
Councilmember Roy made a motion, seconded by Councilmember Troxell, to adopt Ordinance No.
045, 2009, as amended, on Second Reading.
Mayor Hutchinson stated the process to develop this program has included input from many
stakeholder groups.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2009-045
Reaffirming the Council's Commitment to Diversity and Encouraging the
Free Exchange of Ideas and Opinions Without Threat or Intimidation, Adopted
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
On April 2, 2009 a number of anti -immigration flyers were left on vehicles in Old Town Fort
Collins. The _flyers were offensive to many community members. A community meeting was
subsequently held on April 17, 2009 to reaffirm the Fort Collins community's commitment to the
dignity and respect of all residents.
By the adoption of this Resolution, the City Council reaffirms its commitment to protecting and
honoring diversity within our community, while recognizing the right of all persons to engage in
constitutionally protected speech, and encourages respectful dialogue and debate about
controversial issues in a manner that is free of threat or intimidation. "
Mayor Hutchinson stated the Resolution has been prepared in response to a resolution read by
citizens at the last Council meeting. The citizens' resolution focused on the idea that "hate' speech
is not welcome in the community. Any speech that is constitutionally protected must be recognized
and protected in Fort Collins, even if it is distasteful or offensive. At the same time, the City
government is committed to respecting and honoring diversity. Fort Collins is a welcoming and
inclusive community. The proposed Resolution is written to balance the principle of freedom of
speech and diversity.
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May 5, 2009 .
Eric Sutherland, 631 LaPorte, stated the City government is not abiding by the words in the proposed
resolution and should ensure it is allowing citizens the right of free speech before adopting the
resolution.
Cheryl Distaso, 135 South Sunset, stated the language in the resolution is weak, does not meet the
needs of the community and should be strengthened to prevent hate attacks on any one group.
Katy Freudenthall, Director of Community Affairs, ASCSU, stated reaffirming the City's
commitment to diversity and free speech is a good step for the City to take. CSU students add to the
diversity of Fort Collins and Council and staff needs to remember this resolution when meeting with
CSU students about various issues.
Paul Bain, Fort Collins resident, stated the resolution is not an appropriate response to "hate" speech
and should have the language strengthened to state the type of language that was included in the flyer
that was distribute will not be tolerated in this community.
Betty Aragon, 140 2nd Street, stated the resolution sends an important message and should be
adopted by Council.
Cathy Egan, 806 Whedbee Street, stated the language in the resolution needs to be stronger to clearly
state hate language will not be tolerated in Fort Collins.
Steve Ramer, Pastor of the Fort Collins Mennonite Fellowship, stated the resolution does not address
citizens' concerns about hate speech in the community. The resolution presented to Council by
citizens at the last Council meeting contained stronger language and is the resolution Council should
adopt.
Bruce Lockhart, 2500 East Harmony, stated the resolution is meaningless and he did not support
adoption of the resolution.
Jackie Gabriel, 730 LaPorte, stated the resolution should contain stronger language to prevent hate
speech in the community.
Shane Miller, 4325 Mill Creek, stated the people have the freedom to dissent, even if that dissent
is unpleasant or unwanted by others, as a constitutional right and that right should not be limited,
even though that speech is offensive to others.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2009-045.
Councilmember Roy stated the flyer that was distributed in Old Town contained vile language but
the ability to say such things is a right granted to the citizens of this country. The City's response
to the flier was rapid and the resolution is a proper response to that flyer.
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Councilmember Manvel stated freedom of speech is protected and Council does not want to put
restrictions on a person's right to speak. The resolution emphasizes the right to speak and puts
forward the strong desire of Council that discourse will occur in a civil and respectful fashion that
is not threatening to anyone.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel; Ohlson, Poppaw, Roy
and Trorell. Nays: none.
THE MOTION CARRIED.
Ordinance No. 051, 2009,
Amending the City Code Relating to Enforcement of
Occupancy Limits, Adopted on First Reading
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
Since the last Code revisions to the occupancy regulation went into effect in 2007, staffhas identified
an additional Code change and some administrative changes that would enhance their ability to
more effectively enforce the regulation. These mid -course changes are separate from the
comprehensive two-year review currently scheduled for Council work session on October 27, 2009.
The Ordinance would amend the City Code to eliminate the existing requirement that an opportunity
be given to property, owners to cure occupancy violations prior to the issuance of a citation.
City Code Section 19-65(a) (1) sets forth the procedures to be used by the City's Code enforcement
of in enforcing civil it f -actions, including the occupancy regulation. Theproposed amendment
to this Section would authorize enforcement staff to serve civil citations on violators of the
occupanc}% limit regulation withoui first serving a notice of violation. Two options are presented
for Council consideration:
Option 1: elimination of the notice requirement would apply to all violators of the occupancy
regulation; at -
Option 2: elimination of the notice requirement would apply only to violators who previously
have been issued a notice of violation or citation for violation of the occupancy
regulation regardless of the location of the earlier violation.
Staff recommends adopting Option 1.
BACKGROUND
The City's Land Use Code relating to the occupancy limit regulation was last updated in late 2005
and became effective in 2007. The most significant revision decriminalized violations of this
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May 5, 2009.
regulation, that is, it reduced the violations from criminal misdemeanors to civil infractions.
Violations ofthis Code provision occur when more than the allowed number ofpeople live together
in a dwelling unit. With two years of experience enforcing the occupancy limit regulation, staffhas
identified a Code revision and some administrative changes that would improve enforcement
effectiveness.
In 2007, there were 147 occupancy cases processed; in 2008 there ivere 59. A two-year- history of
cases for 2007-2008 is attached. (See attachment 1.) Av making the Code revision and
administrative changes, the occupancy regulation is expected to be more effective.
Eliminating the preliminary notice of violation
Current Code provisions require stuf 'to first serve a "notice of violation "for all civil infractions.
This allows the responsible party a reasonable amount of time to correct the violation before the
City can serve a citation on the offenders (property owners and/or tenants), unless the violation is
a repeat violation.
This provision has proven to be problematic. Some property owners (including those with no past
violation history) are aware that no action can be taken against them until they have been given
notice and an opportunity to cure the violation, so they put four or more unrelated tenants in a
dwelling unit until they are served with a notice ofviolation. They then "cure" the problem, at least
temporarily, by removing enough tenants within the timeframe to prevent a citation from being
issued. In essence, some owners know that they can over -occupy theirproperry until they get caught,
and that they then have seven days to correct the violation without any consequences or threat of
receiving a citation.
This requirement is even more problematic when a civil infraction case involves an owner of
multiple properties. In such cases, the Municipal Judge has ruled that to qualify as a "repeat
offense" the violation must not only be repeated by the same property owner, but also be repeated
at the same property. This interpretation allows property owners of multiple properties to
repeatedly violate occupancy limits at di fjerent properties with no significant consequences because
the City must first serve a violation notice%rder to correct before issuing a citation for any one
property. Owners of multiple rental properties can repeat the cycle of "violation/notice%ure"
indefinitely unless a repeat violation ofthe occupancy limit is discovered at the sameproperty. Only
then will the owner receive a citation with the possibility of a fine.
While the vast majority of owners of rental properties comply with the occupancy limit, staff is often
unable to achieve corrective actions against repeat offenders based on the current interpretation of
the existing Code language. Stgffbelieves that moreproperty owners would proactively comply with
the regulation if there was a threat of a citation when found in violation, rather than waitingfor the
violation notice and then complying.
To deal with this problem of enforcement, staff is recommending that Council eliminate the
requirement that property owners be notified and allowed time to cure this kind of violation prior
to the issuance of a citation. Staff believes that any mitigating circumstances relating to an alleged
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violation can be taken into consideration when the investigating officer exercises his or her
discretion in deciding whether to issue a citation.
Options
Staffhas developed two options, for amending City Code Section 19-65(a) (1) as it relates to serving
citations:
Option 1: Applies to both first -tinge offenses and repeat offenses. Staff
recommends this option.
Option 2: Applies only to repeat offenses by the same person regardless of
the location of the violation.
Administrative Changes
In addition to the Code revision proposed above, staff is making the following changes
administratively to improve effectiveness of enforcement. Absent Council direction to the contrary,
staff intends to immediately begin implementation of these administrative enforcement changes:
I. Continue to request or seek license plate numbers of occupants.. Vehicle logs_from
neighbors have proven to be ineffective as evidence, while license plate numbers
have been helpfid.for investigations.
2. Rega+ire disclosure statements to be provided within foes days ofstaff's request. This
will increase the accountability of property owners in providing Disclosure
Statements to their tenants at the time of lease signing.
3. Actively investigate cases prior to requesting the Disclosure Statement. Rather than
sending the "Request forDisclosure Statement " notice before the investigation, staff
will gather information and evidence.first.so that the violation is substantiated prior
to sending the notice.
4. Contact residents prior to issuing notices or citations. Other communities report
success using this practice, and it has been successful in Fort Collins as well.
5. Cite those persons that the evidence shows are most responsible for the violation.
Rather than just citing all tenants and the property owner, staff will gather
information from tenants, landlord and others in order to hold the appropriate
persons accountable.
6. Issue multiple counts,for knowing violations. Multiple counts add up to more of a
financial liability and are therefore a greater deterrent.
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Public Outreach
a. 1121109 — ASCSU Senate meeting
The ASCSU Senate representative requested staff present this item to the Senate before
Council makes a determination on the proposed revision. Students are concerned about
getting evicted for exceeding the maximum allowed "three unrelated." occupants in a single-
family dwelling unit and having to absorb the increased rent_for housing complying with the
occupancy -limit provisions. The general message from students was that they don't
understand why more than three unrelated individuals shouldn't be allowed to occupy a
house that has more than three bedrooms. (See Attachment 2),
b. The housingindustrv(FortCollinsBoardofRealtors,andColoradoApartmentAssociation)
has been provided with detailed written materials. Staffhas not received any comments from
the housing indusoy.
C. Article in the Coloradoan on March 23, 2009.
d. Article in April/Mav edition of Neighborhood News Newsletter.
e. Occupancy Ordinance Stakeholder- Committee (consisting of representatives from ASCSU,
Fort Collins Board of Realtors, Colorado Apartment Association, CSU student/staff, LDS
church, and several different neighborhoods) discussion. This committee was concerned
with the "time to correct "period being only seven days if there's the possibility that no
Notice of Violation is given prior to the issuance of a citation.
f. 4116109 - On Campus CSU Occupancy Ordinance Forum.
Feedback received ./rom CSU students regarding this proposed Code change was that
students are concerned about these mid -course changes to enforcement of the Occupancy
Ordinance occurring prior to the 2-year comprehensive review. They do not think that any
enforcement changes should be made prior to the Council review of the overall effectiveness
of the Ordinance. -
Jeff Scheick, Director of Planning, Development and Transportation, stated the proposed ordinance
will enhance the enforcement process of the occupancy ordinance. This ordinance is not a change
to the occupancy ordinance itself. A comprehensive review of the occupancy ordinance will be
presented to Council this fall.
Beth Sowder, Neighborhood Services Manager, stated two options are presented for Council
consideration regarding the notification requirement for the current occupancy ordinance to help with
the effectiveness of the enforcement process. Option I eliminates the notice requirement for all
occupancy violations and Option 2 eliminates the notice requirement only for repeat occupancy
ordinance violations. The current notification process will continue to be used in most cases when
an occupancy violation is found. Option 1 will allow the housing inspector to immediately issue a
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citation for occupancy violation when the evidence he finds shows a blatant and knowing violation
of the occupancy ordinance or repeat occupancy ordinance violations.
In 2007, 147 occupancy violation cases were processed with 67 cases substantiated with enough
evidence to prove a violation and 80 cases were unsubstantiated. In 2008, 59 occupancy violation
cases were processed with 25 cases substantiated and 34 were not. In 2009, 7 cases have been
processed with 2 cases substantiated, 3 cases unsubstantiated and 2 cases not yet resolved. The
housing inspector has noticed different themes as he has done his investigations for the past two
years. In many cases, he found that landlords were knowingly over -occupying rentals. The landlords
and tenants frequently agreed to over -occupy a rental until they were caught and received notification
to comply. At that time, some of the tenants would move out so the rental would then be in
compliance. It is well known there is no immediate, significant consequence for over -occupying a
rental unit because of the notification requirement currently in place.
Elimination of the notification requirement will provide a greater incentive for landlords and tenants
to comply with the occupancy ordinance and will be helpful for blatant or repeat violations. The
housing inspector will be able to consider mitigating circumstances when he makes his decision
whether or not to issue a citation.
The proposed ordinance will also authorize some administrative changes. Staff will continue to
request or seek license plate numbers of occupants, which are helpful in investigations. Landlords
will be required to provide disclosure statements within four days of staffs request to increase
accountability of property owners to provide those statements to tenants at the time of lease signing.
Staff will actively investigate cases prior to requesting the disclosure statements. Tenants will be
contacted prior to issuing a citation. The citation would be issued to those most responsible for the
violation rather than citing all tenants, landlords and property managers. When the evidence shows
a blatant disregard for the occupancy ordinance, staff would be able to issue multiple counts for
knowing violations.
(**Secretary's note: The Council took a brief recess at this point in the meeting.)
Carrie Gillis, 2213 Timber Creek Drive, urged Council not to make any changes to the occupancy
ordinance before the comprehensive review occurs this fall. Removing the notification process does
not seem to provide due process to landlords and tenants.
Daniel Gearhart, CSU student, stated allowing a citation to be issued without any notification does
not seem to provide due process to renters.
Katy Freudenthall, Director of Community Affairs, ASCSU, stated making enforcement stronger
will adversely affect CSU students. The proposed ordinance will not encourage compliance and any
changes made to the occupancy ordinance should be postponed until the comprehensive review this
fall.
David Ambrose, CSU student, stated that making any changes to the occupancy ordinance before
the review this fall will be counterproductive and will not help to fix problems.
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Shaun Reed, 3207 Killdeer, CSU student, stated the occupancy ordinance is an unnecessary
ordinance and should not be enforced. He urged Council not to adopt the proposed ordinance.
Andrew Ives, CSU student, stated both options in the proposed ordinance give the housing inspector
too much discretion.
Jordan Von Bakers, CSU student, urged Council not to adopt the proposed ordinance and to consider
repealing the three -unrelated ordinance completely.
Courtney Sullivan, 1317 Luke Street, ASCSU Director of Department of Community Affairs,
requested Council not adopt either option in the proposed ordinance and make no changes to the
occupancy ordinance until the comprehensive review is completed. Allowing the citation to be
written immediately, without any prior notification of a violation, will only allow a tenant seven days
to find new housing.
Trevor Trout, 1620 South Whitcomb, asked Council not to make any changes to the occupancy
ordinance before the comprehensive review was completed. College students are part of the
stakeholder groups and feel their voices are not being heard.
Kyle Lohman, 1620 South Whitcomb, stated the ordinance is not targeting landlords but will create
further hardships for student tenants.
Greg Hargis, 3707 Bromley Drive, stated neither option in the proposed ordinance is a good choice.
The lack of notification violates the rights of tenants, many of whom are students, to respond to any
charges of violating the occupancy. ordinance. The process is too inflexible.
Tyler Hudson, CSU student, stated the occupancy ordinance excludes too many people from living
in Fort Collins. The ability of the housing inspector to immediately issue a citation will not allow
an adequate amount of time for a renter to move and find affordable housing.
Blue Hovatter, Fort Collins resident, stated making any changes to the occupancy ordinance only a
few months before a comprehensive review of the entire ordinance is completed is not a wise step
to take. He urged Council not to adopt the ordinance.
Shane Miller, 4325 Mill Creek, stated the adoption of the three -unrelated ordinance happened after
much negotiation by many different groups working with City staff and Council to reach an
agreement to attempt to address neighborhood problems. There does not seem to be any compelling
reason to make this amendment to the ordinance before the comprehensive review is completed this
fall and Council should not adopt the ordinance.
Pete Seale, 1837 Scarborough Drive, stated the current ordinance is enforceable and is working to
resolve nuisance problems in neighborhoods. He urged Council to adopt Option 2 of the ordinance
because it focuses on blatant violators and will allow for due process so people are not penalized
unfairly.
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Mark Siegfried, 1030 Wagonwheel, urged Council not to adopt the ordinance because it unfairly
targets college students.
Lloyd Walker, 1756 Concord Drive, stated the occupancy ordinance is working and has improved
the quality of life in his neighborhood. He supported the adoption of the proposed ordinance as it
will close a loophole in the current enforcement.
Charlotte Carloni, CSU student, stated the occupancy ordinance targets college students and prevents
them from finding affordable housing and should be repealed.
Bruce Lockhart, 2500 East Harmony, did not support adoption of the ordinance and urged Council
to repeal the occupancy ordinance.
Councilmember Kottwitz asked why the amendment to the occupancy ordinance was being
considered now rather than waiting until the fall review. Sowder stated staff has done research with
other communities that successfully enforce occupancy limits and the method proposed in Option
1 has been shown to be the most effective in aiding enforcement. Staff wanted to have Council
consider this item while the students were still in school but before the 2 year review, scheduled for
this fall, because the amendment is proposed for the current ordinance. The amendment will provide
an option for enforcement that is currently missing in the current ordinance.
Councilmember Kottwitz asked if there was any urgency to add this amendment at this time. Derf
Green, Building Inspector, stated the proposed amendment will give inspectors an added tool that
will help the enforcement process. Staff recognized quite some time ago there was a problem with
enforcement and research done has shown that other cities that have successful programs use the tool
of immediately issuing citations without a notice to correct. If this tool had been available
throughout the year, the fall review would show a greater success in enforcement.
Councilmember Kottwitz asked if the public had as much opportunity to provide input into this
change as it did for developing the occupancy ordinance. Sowder stated staff held a meeting with
ASCSU in January regarding this proposed change. Scheick stated the meeting with ASCSU in
January did provide opportunity for CSU students to provide feedback to staff. Currently, there are
stakeholder groups that are providing feedback for the comprehensive review of the entire ordinance
to be completed this fall. This proposed amendment to the occupancy ordinance is not under review
by the stakeholder groups. The outreach for this change was held in January.
Mayor Hutchinson asked how the change in the enforcement process will impact the fall review.
Scheick stated the meetings with the stakeholder groups are being held to review the entire ordinance
and to determine if the ordinance is accomplishing what it was intended to do. The proposed
amendment is an attempt to better implement what is currently in effect. Green stated the two-year
review will determine the effectiveness of the ordinance and the proposed tool will provide an
avenue to more effectively enforce the current ordinance. Landlords are now disregarding the
occupancy ordinance because enforcement is so difficult. A stronger enforcement tool will make
the occupancy ordinance more effective.
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Councilmember Manvel asked if the proposed amendment to the occupancy ordinance will provide
a second set of data that might provide more information about the ability of the City to enforce the
occupancy ordinance. Scheick stated the number of violation cases should increase with adoption
of this amendment. The existing ordinance is ineffective and is not respected or followed by
landlords in the community. It will generate different data. An outside consultant has completed
a study of the effectiveness of the ordinance and this amendment will not affect the data gathered
for that study.
Councilmember Manvel noted that providing a more effective enforcement tool could provide more
information about the effectiveness of the entire occupancy ordinance. Scheick stated the proposed
enforcement tool will provide better information that will allow Council to determine the efficacy
of the occupancy ordinance in the fall.
Councilmember Ohlson stated providing an enforcement tool for an ordinance already in effect is
essential for the success of the ordinance. The proposed amendment is not changing the policy but
is providing a method of enforcement of the policy. Any changes to the occupancy ordinance that
might come as a result of the fall review will probably not be enacted for many months after October.
Providing an enforcement tool now is essential. Adopting the proposed amendment now will enable
the rental community to become aware that the occupancy ordinance will be enforced well before
the fall semester starts.
City Manager Atteberry noted any policy change will be considered after the two year review is
completed. Enforcement issues do exist that need to be addressed now. Scheick stated the
stakeholder group has representatives from the CSU student body, the rental industry and
neighborhoods. There are many perspectives represented and it is difficult to develop a
recommendation from such varied perspectives. After the Council work session in October, staff
will have much work to do and will probably not bring any changes for Council consideration for
some time after that.
Councilmember Kottwitz asked for clarification ofthe administrative change that will ask for license
plate information of tenants. Green stated in the past, when investigating a violation complaint, the
complainants were asked to keep a vehicle log that lists the vehicles of those who were living at the
property. The complainant is typically a next -door neighbor. The vehicle log has not proven to be
sufficient evidence on court. The proposed administrative change will allow staff to ask for license
plate numbers of occupants at a particular property and staff will gather vehicle owner information
from the Department of Motor Vehicles and that information will be used as part of the investigation
of a complaint.
Mayor Hutchinson noted if a neighbor makes a complaint against a property, tracking license plate
numbers is one element used as part of verifying the complaint. The City is not routinely asking
people to keep track of license plate numbers on their neighbors but only in the event someone wants
to make a complaint.
Councilmember Kottwitz asked if it was solely at the discretion of the inspector to decide whether
to issue a citation. Green stated he is the only inspector at this time investigating occupancy
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complaints for the City. He does have discretion in deciding whether to proceed with the
investigation. Many times tenants will admit that more than three unrelated people live at a
residence and the landlord knowingly rented the property to more than three people. The proposed
amendment will allow Green to write a citation in that situation, rather than issue a "notice to
correct." If the information provided indicates four people live at a residence but the landlord does
not know more than three people live there, a citation would not be issued to the landlord, but a
violation notice would be given to the tenants and the landlord. They would then be given a certain
amount of time to correct.
Councilmember Manvel asked how much time violators will be given to move out of the property.
Green stated if a complaint is received, the first step is to send an investigation notice to the owner
and the occupants at the address and to request the Disclosure Statements from the landlord. It can
take up to 10 days to get the Disclosure Statements and then it can take up to a month for the
inspector to run the investigation. If a violation is found, a violation notice is sent that allows 30
days for correction. This becomes a long, drawn -out process. The amount of time to correct has
been changed to 7 days. In cases where an investigation notice is not sent, it will be possible to
extend the amount of time to correct.
Councilmember Manvel asked if Option 1 would still allow the inspector the discretion to give
notice of violation. Green stated if he is unable to contact the tenants or gather definitive
information that a property is over -occupied with the landlord's knowledge, he would send a
violation notice to the owner and tenants. If the proposed amendment is adopted, in the event it is
very clear that the residence is over -occupied and the landlord knowingly allowed the over -
occupancy or it is a repeat violation, a citation could be immediately issued without prior
notification.
Councilmember Troxell asked for the amount of compliance with the ordinance. Green stated fewer
complaints are coming forward but more properties are being over -occupied. The City has lost 2
high profile over -occupancy cases in court and the public perception is that the City cannot enforce
the ordinance. Complainants are fearful of retribution if they file a complaint.
Councilmember Troxell asked if economic conditions have been considered as part of the
enforcement of the ordinance. Green stated economics have not been considered in staff s
recommendation of Option 1, but will be part of the recommendation that results from the
comprehensive review. City Manager Atteberry stated economic factors will be considered in the
comprehensive review. The proposed amendment under consideration at this time is not a policy
change but is to provide for more effective enforcement.
Councilmember Troxell asked about due process as a part of making the proposed change. Green
stated due process is provided after a citation is issued because a defendant can pay the fine or can
request a hearing in front of a hearing officer or the municipal court judge.
Councilmember Troxell asked how allowing only 7 days to correct will allow time for due process.
Green stated the 7 day requirement is a timeframe to allow for correction of the violation. A
defendant has 10 days from the time of receiving the violation to pay the fine or request a hearing
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which will be set sometime in the future. In the meantime, the defendant is expected to comply with
the ordinance and correct the violation.
Councilmember Troxell asked if the ordinance targets the student population. Scheick stated the
current language addresses all rental owners and tenants throughout the city. City Manager Atteberry
asked if data was available concerning the number of violations that were issued to college students.
Green stated he did not have exact figures but probably 90% of violations are issued to students.
Councilmember Kottwitz asked for the amount of the fine. Green stated the fine starts_ at $500 and
can increase to $1000 per day.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
051, 2009, Option 1, on First Reading.
Councilmember Ohlson stated the occupancy ordinance was enacted to provide enforcement for
zoning of neighborhoods. The neighborhoods are primarily zoned low -density, single family and
the ordinance has provided improvements to neighborhoods that were deteriorating. Improving the
enforcement will allow the ordinance to be more effective. He supported Option I to give staff a
needed enforcement tool.
Councilmember Poppaw stated the addition of an enforcement tool should not impact the assessment
of the effectiveness of the ordinance. Staff should be given the tools necessary to enforce the
ordinance currently in effect. She supported Option 1.
Councilmember Manvel stated the current ordinance is not enforceable and staff should be given
tools to make the ordinance more effective. Providing for better enforcement of the current
ordinance should provide a better assessment of the occupancy ordinance in the fall and help with
the determination of its effectiveness.
Councilmember Roy stated many rentals are located in his district and since the occupancy ordinance
has been in effect, the quality of the neighborhoods has improved. Providing for better enforcement
of the ordinance will only increase the liveability of neighborhoods.
Councilmember Kottwitz stated the proposed enforcement appears very punitive and the fine is set
very high. She did not support the ordinance.
Councilmember Troxell stated staff has indicated it is difficult to enforce the occupancy ordinance
yet others have stated conditions in neighborhoods have improved. if the occupancy ordinance is
difficult to enforce, improvements to neighborhoods cannot have occurred just because the ordinance
is in effect. The occupancy ordinance targets students and adversely affects affordable housing.
Neighbors should not be checking on neighbors. He did not support the ordinance.
Councilmember Ohlson stated a violation does not automatically result in a fine as long as the
violation is corrected. Zoning regulations are the basis for having an occupancy ordinance in place
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and the various zones are in place to provide structure for land use in Fort Collins. The goal of the
ordinance is compliance, not collection of fines.
Mayor Hutchinson stated the occupancy ordinance was enacted to honor the City's obligations for
those areas that zoned for low density, single family neighborhoods. The ordinance does not target
any one group in the city. The proposed amendment will allow for better enforcement of the
ordinance that is already in effect and will allow for a better evaluation in the fall. The
comprehensive review in the fall will provide opportunity for more discussion on the entire policy.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: Kottwitz, Troxell.
THE MOTION CARRIED.
Items Relating to Trash Services,
Ordinance Adopted on First Reading, Resolution Adopted, as Amended
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 052, 2009, Amending Section 12-19 and Article XV of
Chapter 15 of the City Code Relating to Trash Collection.
B. Resolution 2009-046Directing the City Manager to Develop a Proposal.for a Pilot Trash
Service District Within a Portion of the City.
Original Problem Statement:
"In what ways can the City reduce the impacts of trash collection services in Fort
Collins, addressing issues of the cost of street wear, air quality, neighborhood
aesthetics, noise, and other neighborhood impacts? Are there ways that the City
might also improve diversion rates for recyclables?"
On December 9, 200$ City Council and staff metfor the fourth work session on this topic to review
policy alternatives developed from the Trash Services Study. Council was asked to review several
implementation alternatives for which staff could develop detailed proposals. Council expressed
supportfor a variety o_fregulatory changes which were proposed, suggesting that staff evaluate the
possibility of creating a pilot trash district for a portion of the community. Based on those
discussions, staff has developed two items for Council consideration:
1. An ordinance which implements the highest priority items from the list of additional
requirements proposed at the December 9 work session. These changes focus on requiring
haulers to take actions that will improve recycling diversion rates and improve the pricing
incentives of the Pay -as -you -throw Ordinance.
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2. A resolution directing staff to develop a pilot trash district in a portion of the community.
Thispilot would change the marketfor trash services from a purely open competitive market
for trash services to a mix of City -contracted service and an open competitive market.
BACKGROUND
Issues related to trash collection, recycling and the impact of a large number of bash vehicles on
neighborhoods have been before City Council a number of times over the.past 20 years. In 1995,
concerns about adverse impacts of trash trucks in neighborhoods led to a Council resolution and
goals to reduce then umber oftrucks and forgreater consolidation ofresidential trash services. The
City conducted a study regarding trash districting in 1998, and at that time City Council established
a goal to divert 50% of the community's waste stream from landfill disposal by 2010.
In directing staff to undertake the 2008 Trash Services Study, Council set forth goals to improve the
community's diversion rate and reduce the impact of trash trucks on residential streets. Some
members of Council also expressed specific interest in improving the "pay -as -you -throw " solid
waste ordinance.
These goals are consistent with key goals of the 2008 ClimateAction Plan approved by City Council
in December 2008. They are also consistent with several of the goals in the draft 2006 Strategic
Plan for Solid Waste Diversion reviewed by City Council.
All of these goals and discussions have led to a set of Code changes presented for Council's
consideration in this Ordinance.
Summary of Regulatory Changes
Ordinance No. 052, 2009, makes several significant changes to City Code, as well as several
"housekeeping" changes to Chapter'15, "Solid Waste Collection and Recycling Services" and
Chapter 12, "Collection and Disposal of Refuse, Rubbish and Recyclables. " The goals of these
Code changes are to increase the pricing incentive for solid waste customers to reduce trash and
improve recycling diversion rates:
• Change the `pay-asyou-throw" (PAYT) provision of the City Code to implement pure
volume pricing for trash collection and eliminate the current base rate component of the
PAYT pricing formula;
• Create a rate formula for haulers to use when they offer a pre paid bag/tag level of trash
collection service;
• Require haulers to offer 65 or 95 gallon single -stream recycling containers (poly -carts) upon
request effective January 1, 2010;
• Allow haulers to- move to twice -monthly recycling service once poly -carts have been
provided to customers;
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• Add data reporting requirements for residential haulers and increase the annual license fee
.front $30 per year to $100 per year;
• Clarify provisions of the "Group Accounts" section of Chapter 12 to include provision of
recycling poly -carts to group account (HOA) members who contract for service;
"Housekeeping" changes to the ordinance include clarifying that trash and recvclables may
not be commingled by haulers upon collection, clear marking of recycling vehicles, proof 'of
Department of Transportation registration of all trash vehicles, and clarification of the
confidentiality of certain harder provided data.
Trash Services Pilot District Resolution
In addition to the ordinance amendments, staff has outlined ideas for how to implement a Pilot
Trash District. This option was raised at the December 9, 2008 work session as Council was
discussing the Market Option of creating a city-wide trash services contract, or hash districting
system. Council suggested considering a pilot trash district in a portion of the community, rather
than implementing the strategy city-wide.
The proposed resolution directs staff to develop a specific proposed pilot district, including the
necessary enabling legislation to create the district.
Staffhas conducted some preliminary work on the concept ofa pilot trash district and believes that
it is possible, within the state laws governing solid waste districting, to conduct such a pilot. The
City could develop a trash district for a specif c geographic area and award a single contract, fo-
trash services within that area. In this scenario, the City would of private trash haulers the
opportunity to competitively bid on providing trash and recycling services within the area, with fees
billed by the City on its Utility Bill. A vendor would be selected based on certain criteria:
Price to customers
• Ability to meet standardsforservice level, compliance with local requirements and custoner
service
• Ability to meet additional conditions outlined in the Request for Proposals, e.g., achieve
minimum diversion rates for recyclables.
A key component of a pilot trash district project will be to carefrdly analyze and document the
effectiveness of the program. Staff will conduct pre- and post project data collection which will
demonstrate the effectiveness of the project in achieving waste stream reduction goals and in
reducing the impacts of trash vehicles upon streets and other aesthetic issues in the district.
CONCL USION
A detailed analysis of the proposals, including pros and cons of each component of the proposed
ordinance and resolution, are. included as Attachment 1.
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On April 8, a meeting was held with representatives.from Fort Collins' three licensed residential
trash/recycling collection companies to preview the general concepts of these proposed changes.
In general, the haulers had a number of questions about the PA YTcomponents, and tivere uniformly
concerned about the idea ofpiloting a districted trash collection area. Their comments are included
as Attachment 2. "
City Manager Atteberry stated this item has been under consideration for some time and the previous
Council had four work sessions to discuss the topic. The proposed changes are intended to help the
community reach the City's goals of 50% recycling diversion. The proposed ordinance relates to
pay -as -you -throw and recycling changes. The proposed resolution has been amended to clarify that
Council directs the City Manager to study the possibility of a pilot trash district and to return to
Council with a more detailed proposal in July. It does not approve a pilot trash district at this time.
Ann Turnquist, Policy and Project Manager, stated the study had two goals. One was to find ways
to reduce the impact of trash trucks on neighborhood streets. The other goal was to find ways to help
the community reach its goal of 50% recycling diversion rate by 2010. The current diversion rate
is about 24%. Staff has held four work sessions with Council and five meetings with the trash
haulers to discuss this issue. A community open house has been held and a web -based feedback
form was available on the City's website to gather the public's input. The proposed ordinance
changes the pay -as -you -throw formula in the solid waste section of City Code. With the change,
every unit of trash would cost the same as the first unit. If the trash hauler charges $10 for the first
32 gallons, then two containers would cost $20. The purpose is to send the message to people that
the more trash that is recycled and diverted from trashstream, the less that will be paid in trash
hauling fees. The effective date for the proposed changes will be July 1. The City cannot set the
rates for the trash haulers but the City can set the formula used by the trash haulers to set the rates.
The proposed ordinance also makes changes to required recycling. The trash haulers would be
required to provide large recycling containers to allow more recycling. The trash haulers would be
allowed to collect recyclables either biweekly or semi-monthly. The large recycling containers will
keep the recyclables cleaner and keep them contained.
The proposed ordinance contains other changes to City Code, including a requirement that haulers
must charge for overloaded containers to ensure pay -as -you -throw pricing. Another change clarifies
that a fuel surcharge is not consistent with the pay -as -you -throw price and all costs should be built
into the volume pricing. Trash and recyclables cannot be co -mingled so a hauler cannot throw
recyclables into the trash truck. Recycling trucks must be clearly marked. The license fee of $30
per vehicle per year will be increased to $100 per vehicle per year. Reporting requirements will be
changed to gather information about customers and volumes that trash haulers are not currently
required to provide with provisions stating certain information is confidential and proprietary.
The proposed Code changes do create challenges for the trash haulers. Each of the recycling poly -
carts costs $45 and will represent a large outlay for the trash haulers. The volume pricing could be
a greater burden on larger families. Concerns have also been expressed that making changes to the
recycling regulations now is not the best timing as the commodities market has become greatly
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depressed. Prohibiting the fuel surcharge could cause problems for the trash haulers if fuel prices
rise.
The resolution being considered by Council provides direction to staff to develop a more detailed
proposal for a pilot trash district for a portion of the community. The proposal would include
provisions that the City would award a contract for service for trash service in a pilot area of 5,000
to 10,000 customers with a five year term. Competitive bids would be accepted from the haulers
with the City to provide the billing and customer service through the Utility Billing Office. Staff
plans to present the proposal to Council in July with a draft "request for proposals", suggested
boundaries for the pilot area, a draft of the 6-month notice to be provided to trash haulers of the
intention to enter into a contract, details about the billing system and estimates of implementation
costs. The goals within the pilot area would be to demonstrate the effectiveness of districted trash
service. Trash truck traffic would be expected to be reduced in the pilot area and improved
aesthetics to the area with uniform containers and consistent collection day. Efficiency of the trash
system is also expected which could result in a lower cost to the residents in the pilot area.
The trash haulers have expressed concerns about the potential loss of business in the pilot area if they
do not get the contract. The haulers believe costs could be higher and service could be lower in a
districted system and elimination of customer choice will eliminate the opportunity for customized
services.
Staff plans to bring the proposal for a pilot trash district for Council consideration in July. If the
proposal is approved, the six-month notice will be provided to the trash haulers. An RFP would be
issued in late summer along with notifying the customers in the pilot area of the upcoming changes.
Implementation of the pilot trash district would probably occur in the first quarter of 2010.
Rudy Gallegos, Gallegos Sanitation owner, stated Gallegos Sanitation is a local company that has
provided jobs in the city for 50 years. The free market system of providing trash services has
allowed Gallegos to provide the best customer service at the best price and changing the system will
not improve the system in any way. Trash districting could put Gallegos Sanitation out of business
and cause the loss of many jobs.
John Puma, Ram Waste Systems owner, stated the process used by staff to develop the proposed
ordinance and resolution has not been a good process. The trash haulers have not received
information in an timely fashion to be able to evaluate the impact the changes will have to their
businesses. The proposed ordinance and resolution were not available until last week and the haulers
have not had enough time to consider all the ramifications the changes could have to their
businesses.
Ray Meyer, General Manager of Ram Waste Systems, stated the lack of information from City staff
regarding the proposed changes has greatly hindered the ability of the trash haulers to determine the
effects of the changes to their businesses. The proposed Code changes will greatly increase the cost
of doing business. Asking the trash haulers to make the huge investment required for the poly -carts
is not right when the trash haulers do not know if they will be in business once the City establishes
trash districts.
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Stacy Lynne, 216 Park Street, stated the proposed changes will put two local businesses out of
business. Supporting local businesses is critical to the local economy and Council should not take
any steps that would cause local businesses to close their doors.
Guy Bacon, Fort Collins resident, stated Gallegos Sanitation and Ram Waste Systems have been in
business many years, employ hundreds of people and should not be put out of business by the City.
A trash districting system will increase costs and lower the quality of service.
Wayne Davis, Fort Collins resident, provided a letter signed by 70 local business owners that stated
healthy economies thrive in an open and competitive market and customers should have the complete
choice of where to spend their money. Local government should not directly control local
businesses.
Liz Pruessner, 712 Ponderosa, Natural Resources Advisory Board Chair, stated the Board strongly
supports the proposed changes to City Code and recommends that the City require trash haulers to
offer yard waste collection service and ban corrugated cardboard from the wastestream, especially
from the commercial/industrial sector.
Rudy Zitti, 1626 Fantail Court, read a letter from Gallegos and Ram Waste employees that opposed
the proposed Code changes because the changes will be devastating to the local businesses and the
City should not become involved in the open market process. 165 employees from Gallegos
Sanitation and Ram Waste signed the letter.
Susan Lynd, Fort Collins resident, stated her opposition to the proposed Code changes and the idea
of trash districting.
Marc Siegfried, 1030 Wagonwheel, stated trash districting should not be considered as local business
will be destroyed. The changes will cause large increased costs to Gallegos Sanitation, Ram Waste
and consumers. Only 250 residents out of 7000 respondents to a City survey about trash districting
indicated they wanted trash districts.
Ray Harvey, 301 Peterson, urged Council not to adopt the proposed ordinance and resolution as it
is local government interfering with local businesses. Recycling is not always good and creates
much pollution and waste.
Kathleen Bailey, Fort Collins resident, stated her concerns with the trash districting proposal because
it will cause the loss of over 500 jobs. Requiring detailed data to be provided by the trash haulers
seems to be a prelude for the City to take over trash hauling completely.
Bill See, 819 Strachan Drive, stated single stream recycling will enhance the recycling efforts of
residents. The recycling market is greatly depressed and he asked if residents will have to pay to
have their recyclables hauled away. He opposed the formation of a pilot trash district and urged
Council not to adopt the resolution and the ordinance.
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Bruce Lockhart, 2500 East Harmony, stated the recycling market has become greatly depressed and
requiring residents to recycle even more is not an economically sound decision. Most recyclables
are shipped to China which uses large amounts of diesel fuel that is not good for the environment.
Tom Weatherly, 2550 Custer Drive, stated City government should not be involved in a private
business that does its job extremely well. He did not support the use of the large recycling containers
because it will not fit in his garage and he has no place to keep it.
Bruce Filbrick, City of Loveland Solid Waste Management Director, stated the proposed Code
changes will benefit Fort Collins. The pilot trash district will benefit the City and will lead to better
service and lower prices.
Shane Miller, 4325 Mill Creek, stated the proposed Code changes will improve recycling rates. The
City has the right to regulate the wastestream and protect public interest. All of the trash haulers will
be meet the same standards which will create a level playing field and will not necessarily force any
one company out of business. He supported the proposed Code changes to increase the amount of
recycling and asked that businesses also be required to meet the same recycling standards.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Troxell asked about the funds available to fund the pilot trash district. City
Manager Attteberry stated the costs of a pilot trash district will be developed as part of the proposal
staff will present to Council in July. The intent is to recover the costs for the administration of the
billing. Tumquist stated the ongoing cost of billing would be covered through a fee charged on
residents' utilities. The one-time and start-up cost estimates will be provided as part of the proposal
in July.
Councilmember Troxell stated the proposal for a pilot trash district will harm local businesses.
Councilmember Poppaw asked for the diversion rate of solid waste for Loveland. Susie Gordon,
Senior Environmental Planner, stated the City of Loveland manages its residential trash collection
and has a 55-60% diversion rate.
Councilmember Poppaw noted Council received the information on this item at the same time as the
public. Tumquist stated staff met with the trash haulers on April 8 and gave them an outline of the
proposal under consideration by Council. The trash haulers were provided with a detailed memo one
week later. Mr. Puma was correct in stating the actual Code amendments were not available until
this past Thursday. Gordon stated changes were made to the proposal, based on feedback from the
trash haulers. City Manager Atteberry stated the process has been extensive to gather feedback from
the trash haulers and staff has changed the proposal before Council, based on comments from the
haulers.
Councilmember Manvel asked why the haulers did not get detailed information about the districting
plan. Tumquist stated the details of the pilot trash -district are not yet completed. If adopted, the
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resolution before Council directs staff to formulate those details for the trash districting plan, which
will be brought for Council consideration on July 21.
Councilmember Poppaw asked why the City is proceeding with the idea of trash districts at this time.
Turnquist stated one of the key components of the Climate Action Plan is to increase solid waste
recycling. Increasing recycling has a great effect on carbon emissions reduction.
Councilmember Poppaw stated a new landfill would be extremely expensive and she asked bow the
proposed Code changes will decrease the need to build a new landfill. Gordon stated the forecast
for the life expectancy, of the landfill continues to grow as residents do a more effective job of
recycling and waste diversion. The cost of a new landfill would be tens of millions of dollars and
it would be extremely difficult to locate land for a landfill.
Councilmember Kottwitz asked if the trash haulers would automatically provide the poly -carts to
each customer. Turnquist stated the Code changes include an "opt out' option so the idea is that the
haulers would provide the poly -carts to all customers who did not specifically request to be excluded.
Councilmember Kottwitz asked if all new trash containers would be required as part of the pay -as -
you -throw concept. Turnquist stated the Code does not require the haulers to provide containers and
some haulers already provide different sizes of containers.
Councilmember Kottwitz noted the haulers have expressed concerns about the amount of costs they
will be required to absorb and she asked for the estimate of costs for the haulers to make the changes
required in the proposed Code amendments. Tumquist stated the greatest cost will be for the haulers
to purchase the trash containers, which cost about $45 each. The offset will be allowing the haulers
to collect recycling every other week or twice a month which will reduce ongoing collection costs.
Mayor Hutchinson asked for clarification between the trash container and the recycling containers.
Tumquist stated a large black trash bag is a 32 gallon bag and a customer can choose not to have a
container. The recycling containers are poly -carts. Trash haulers are currently required to provide
an 18-gallon recycling box and the Code amendment will require the haulers to provide a larger
recycling container.
Councilmember Poppaw asked if the current trash and recycling containers are recyclable. Gordon
stated the plastic is recyclable. The 18 gallon box will still be used by many people.
Councilmember Poppaw asked if the trash haulers would be responsible for any portion of paying
for a new landfill. Gordon stated citizens would bear the cost of purchasing a new landfill. The
County could choose to recoup some costs by raising the rates charged to the haulers.
Councilmember Troxell asked for the landfill volume rates for 2008. Gordon stated landfill rates
in Fort Collins show a 26% reduction from the previous year. The reduction in construction is the
main cause for the reduction in landfill volume rates. The economy has slowed, the rate of
construction has slowed greatly and that decreases the volume of trash sent to the landfill. The
haulers have reported an I 1 % increase in volume for recycling. Staff believes the increase in
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recycling is directly related to the single -stream waste program that was introduced in 2008. The
larger recycling poly -carts will enable more cardboard and other recycling.
Councilmember Troxell asked about a "single -single' stream system where recyclables are not
separated from other trash but the system sorts the trash and why new techniques for recycling are
not considered. Tumquist stated Larimer County Landfill staff have researched "single -single"
stream systems but contamination of the recyclables is a large issue and when recyclables are mixed
with other trash, the recyclables become less valuable and less recyclable.
Councilmember Troxell asked if the calculation of carbon emission reduction includes the carbon
produced in the processing of recyclables and transporting them to China. Gordon stated often the
ships that haul recyclables to China would have returned empty if they were not loaded with
recyclables. It is cost effective to recycle items such as glass and aluminum, even when they are
shipped long distances. The calculations for carbon emissions reduction are based on EPA equations
and do not include local data.
Councilmember Troxell noted waste energy with plasma technologies available now, can use waste
heat for heating and generation of power which can provide more sustainability. New technologies
need to be considered instead of the current proposal.
Councilmember Manvel stated two of the Climate Action Plan goals were to remove yard waste and
cardboard from the waste stream and he asked why those two goals were not addressed in the
proposed ordinance. Tumquist stated the Code changes are based on direction from Council and are
items that can be accomplished in a short amount of time. Yard waste and banning cardboard will
probably be considered in the next phase of Code changes. The proposed Code changes relate to
residential trash and recycling and a complete ban of cardboard from the wastestream will also affect
commercial trash customers. Banning cardboard from the wastestream will be a tremendous
education effort and will affect a different group than the current Code change.
Councilmember Manvel asked what percentage of the wastestream in Fort Collins is generated by
commercial businesses. Gordon stated that percentage is unknown at this time because trash haulers
load their trucks from both commercial and residential customers at the same time.
Councilmember Ohlson asked if the cost of the poly -carts will be passed to the customer in the form
of a deposit on the cart. Tumquist answered in the affinnative. The original language in the
ordinance did not allow the trash haulers to charge a deposit for the containers, but feedback from
the haulers convinced staff to change the ordinance to allow a deposit to be charged. The haulers
will have the option of whether to charge a deposit and how much to charge. The Code limits the
deposit to no more than the cost of the bin.
Councilmember Ohlson stated the construction standards for residential streets are different than
commercial streets and most commercial trucks operate do not operate on residential streets. He
asked for the purpose of the fee that will be charged for each trash vehicle. Turnquist stated the
current license fee if $30 per truck per year. The cost to administering the license includes issuing
the license, providing the sticker and tracking the data the haulers will be required to provide the City
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each year as a condition of holding the license, such as how many customers they have at different
service levels, the weight and amount of recyclables, such as how many customers they have at
different service levels, the weight and amount ofrecyclables. The fee increase is proposed to cover
the cost of administering the licensing process. The fees are not intended to cover any of the costs
of street maintenance.
Councilmember Ohlson asked for the residential rate for residential recycling in Fort Collins.
Gordon stated the residential portion of recycling is about 13%. The rate is increasing for Fort
Collins for 2009.
Councilmember Ohlson asked if residents can continue using the 18 gallon recycle containers if they
do not have space for a larger one. Tumquist stated the Code will allow residents to "opt out' of
receiving a larger bin and the trash haulers will continue to collect those residents' recyclables.
Mayor Hutchinson noted the proposed Code will require trash haulers to offer their customers the
option of receiving a larger bin and the haulers will be allowed to charge a deposit on the bins.
Tumquist stated the haulers will be allowed to charge a refundable deposit not to exceed the cost of
the bin.
Councilmember Kottwitz asked if the trash haulers or the City will be responsible for educating the
public about the Code changes. Tumquist stated the change in the pricing structure will be provided
by the haulers and should send the message to customers that more recycling will allow them to use
a smaller trash container and pay less for trash hauling. Gordon stated the City will supplement the
information provided by the trash haulers with articles in the local newspapers and City News. The
haulers, as a condition of their license, are already required to provide educational information
regarding recycling on a yearly basis to their customers.
Mayor Hutchinson asked why fuel surcharges will be prohibited. Tumquist stated the pay -as -you -
throw pricing is volume based. Surcharges would detract from the volume based pricing. The fuel
fee and cost of doing business should be built into the volume price and not be added separately as
a surcharge.
Councilmember Manvel asked for an estimate of the cost of fuel as a percentage of the entire cost
of doing business for trash haulers since fluctuating fuel prices would be difficult to include in a
business model. One trash hauler (unidentified) stated his company burns 30,000 gallons of diesel
per month.
Councilmember Manvel asked for information about the cost of fuel as a percentage of the business
cost for the haulers. Tumquist stated staff would provide that information. The prohibition of fuel
surcharges is not part of the proposed changes since the prohibition is part of the current Code.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
052, 2009 on First Reading.
May 5, 2009
Councilmember Manvel stated the haulers would be required to provide the new, larger recycling
bins as of January 2010 and he asked when biweekly or semi-monthly recycling collection would
start. Turnquist stated a hauler can begin biweekly service once the carts are provided to some of
their customers, but no later than January 1, 2010.
Councilmember Kottwitz stated the ordinance is not business friendly and using the price to change
lifestyles and habits is not in the best interest of the community. Education is a better route instead
of mandating to businesses and residents. The cost to the haulers is too great and will be passed on
directly to the customers. Adoption of the ordinance will cost jobs and adversely affect local
businesses.
CouncilmemberTroxell stated increasing solid waste diversion rates is a worthy goal for Fort Collins
and the citizens are improving their recycling percentages. The trash haulers are part of the solution
to increasing diversion rates. The Ordinance does not contain any innovations or new ideas to
increase recycling.
Councilmember Manvel stated one of the principal goals in the Climate Action Plan is increasing
the community's diversion rates. If throwing large amounts of trash away gets more expensive,
people will throw less away and recycle more. If recycling becomes easier and is free, people will
recycle more. Short tern costs may increase, but building a new landfill is extremely expensive and
lengthening the life of the landfill will save millions of dollars in the long tern. Reducing the
amount of waste produced will affect the amount of carbon emissions. The Ordinance is not adding
many new regulations and will make existing regulations more effective. The current pay -as -you -
throw system is not very effective. The trash haulers will collect the same amount of revenues from
their customers but those that throw more trash away will pay more.
Mayor Hutchinson asked how the decrease in the commodities market and the price of recyclables
will affect the trash haulers. Gordon stated in October, the haulers might have been receiving $5 per
ton for materials they delivered to the Recycling Center but now receive no funds for delivering
recyclables. The decline in the recyclables market affects those in the field of processing recyclables
much more than it affects the haulers. The money the haulers did receive for hauling recyclables
certainly helped offset costs. The recycling market is starting to improve. The cost of providing the
recycling service is built into the cost of the trash services provided.
Councilmember Ohlson stated pay -as -you -throw needs to be strengthened as the current Code is too
weak. No one will lose their job with the adoption of the Ordinance. Licensing requirements for
trash haulers have been in place for 45 years and is a part of doing business in Fort Collins. Using
pricing as an incentive to conserve is already in place for water conservation and is a system that
works well in Fort Collins. Trash costs could decrease if households choose to recycle more and
throw less away. Surcharges for fuel costs could be considered only if a formula were developed that
took into consideration a dramatic shift in costs for a short period of time.
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Suspension of Rules
Councilmember Manvel made a motion, seconded by Councilmember Roy, to suspend the rules and
extend the meeting past midnight. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays:
Kottwitz, Troxell.
THE MOTION CARRIED.
Mayor Hutchinson stated more information is needed on the impact the proposed changes will have
to local jobs. Recovery of fuel costs and the decline in the commodities market should be considered
before making any changes.
The vote on the motion to adopt Ordinance No. 052, 2009 on First Reading was as follows: Yeas:
Manvel, Ohlson, Poppaw, and Roy. Nays: Hutchinson, Kottwitz, Troxell.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2009-046, as amended.
City Attorney Roy stated the resolution has been changed to clarify that before any pilot trash
districting plan can be implemented, the plan must be brought back to Council. The City Manager
is directed to bring a proposal to Council on or before July 21, 2009.
Councilmember Manvel asked why one large pilot district will be studied instead of several smaller
districts. Turnquist stated the district needs to include 5,000 to 10,000 households to provide a large
enough area to make it financially feasible for the trash haulers to submit bids. A large area is
necessary so the hauler can use a truck exclusively in that area and provide data to evaluate the plan.
If a hauler only has 500 homes in a district, the hauler will pick up a few homes in the district, then
pick up commercial trash as well collect trash from homes not in the district, which will greatly
decrease the accuracy of the data that will be gathered. Separating the data gathered from trash
collected in the pilot district from other data provided by the haulers will be important to determine
if recycling and waste diversion goals are being reached.
Councilmember Manvel stated many Fort Collins residents have homeowner associations in their
neighborhoods and those HOAs can contract with a trash hauler for reduced rates. Extra rules are
not imposed on HOAs when they contract with one trash hauler for their neighborhood and he
questioned why more rules would be applied to a trash district set up by the City. Tumquist stated
the proposal will address that issue.
Councilmember Manvel asked if the title of the Resolution should be amended to read "Trash
Services Pilot Districting Plan" rather than "Trash Services Pilot District" to allow staff the
flexibility of determining if more than one pilot district would be more beneficial. City Manager
Atteberry stated discussion about the pilot district has focused on one pilot district with 5,000 to
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10,000 customers. Evaluating one district will be more efficient but Council can direct staff to
examine the feasibility of several smaller districts when developing its proposal.
City Attorney Roy stated the Resolution can be amended to reflect Council's decision to allow one
or more districts in the proposed program.
Councilmember Manvel made a friendly amendment to amend the title of the Resolution to "Trash
Services Pilot Districting Plan." Councilmembers Roy and Poppaw accepted the amendment.
Councilmember Manvel stated districting already exists in Fort Collins because HOAs have
contracted with trash haulers for sole providers in their neighborhoods. He asked if the pilot district
will include areas already under HOAs. Turnquist stated the issue of HOAs will be addressed in the
proposal but no direction has been determined yet. Exemption of HOAs is one option. City
Manager Atteberry stated administrating one district is probably more efficient and will provide
more data than developing several smaller districts.
Councilmember Troxell asked if an individual resident within the pilot district would be allowed to
contract with a different hauler than the one awarded the contract. Carrie Daggett, Deputy City
Attorney, stated State statute allows the City to impose a mandatory fee for trash services. The City
would collect that fee but would not prohibit citizens from contracting with a different hauler than
the one assigned to their district. Gordon stated the City of Loveland charges an environmental fee
to every resident independent of the trash fee. A Loveland resident can choose to use a private trash
service but is required to use the City of Loveland's recycling collection.
Councilmember Troxell stated the idea of trash districting has been brought forward as a way to
reduce truck traffic on residential streets, reduce noise and air pollution but there is no way to
preclude citizens from using different trash services, if they choose to do so. Commercial businesses
will still use different haulers within the pilot district.
Councilmember Troxell asked what company provides trash hauling services for the City and ifthere
was any conflict of interest. Gordon stated Waste Management is the current provider and the
contract is up for renewal in 2010. City Attorney Roy stated no conflicts under the Charter exist with
regard to individual Councilmembers who either have a financial interest or will receive a personal
benefit from a decision made by Council. The fact that the City utilizes a particular hauler or has
contracts with a certain company does not preclude City Council from considering either item.
Councilmembers are making the decision about a pilot trash districting plan and the City Manager
will formulate a recommendation. The standard for conflict of interest is whether the individual who
is responsible for making a decision or making a recommendation has a financial or personal interest
in the decision.
Councilmember Troxell asked if the City has had commercial trash hauling contracts with Gallegos
Sanitation or Ram Waste. Gordon stated the contract is a competitive bid and has been awarded in
the past to Gallegos Sanitation. Ram has not bid for the City's trash service in the past.
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Councilmember Manvel stated HOA members have the option to contract with a different trash
hauler but not many do.
CouncilmemberTroxell stated citizens that come together as a neighborhood and impose restrictions
on themselves is a different concept from the City imposing restrictions on areas of the City. Older
neighborhoods can unite and contract with haulers, if they choose.
Councilmember Manvel stated the pilot district will involve a small number of the households in
Fort Collins and the Resolution directs staff to bring a proposal for a pilot trash district. It is not
establishing the district itself. Offering the same advantages to ,older neighborhoods that
neighborhoods with HOAs have will benefit the older neighborhoods. Neighborhoods that have
contracted for trash services with one hauler have a lower price and single truck service in the
neighborhood. Directing staff to design a proposal and examine the costs involved is the next
practical step.
Councilmember Kottwitz stated the economic impacts on the local businesses and residents cannot
be denied. A pilot program could remove a considerable portion of one trash hauler's business and
cause the demise of that company.
Councilmember Ohlson stated the Resolution allows for the study the idea of a pilot trash district
and to gather data that would indicate the feasibility of a pilot district. The data is important
information that will allow Council to make abetter informed decision about trash districting. He
asked that future staff presentations include the concerns of all sides of an issue to provide a
balanced presentation.
Mayor Hutchinson stated the City should not take on the role of managing trash collection. Council
agreed at the December work session not to proceed with citywide trash districting and expending
City funds and staff resources to develop a proposal for a pilot district is not a wise use of resources.
If a proposal is brought forward, districting will follow.
The vote on the motion was as follows: Yeas: Manvel, Ohlson, Poppaw, and Roy. Nays:
Hutchinson, Kottwitz, Troxell.
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 Proiect, Adopted on Second Reading
The following is staffs memorandum on this item.
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May 5, 2009
"EXECUTIVE SUMMARY
The Urban Renewal Authority (URA) is seeking a loan from the City to establish monetmy flow of
Ands to begin the North College Marketplace wetlands mitigation reimbursement and offsite street
infrastructure capital improvement projects and the demolition and property cleanup. The cost of
these projects, without financing charges, total $4,942,476. This Ordinance, unanimously adopted
on First Reading on April 21, 2009, authorizes the requested loan amount of S5, 000, 000 from the
City offort Collins' General Fund Reserves to the Urban Renewal Authority. The URA will utilize
the City's Inteifund 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 City
Departments and related entities (e.g., the Downtown Development Authority, and the Urban
Renewal Authority) to accessfunds at a competitive interest rate while still providing a market based
yield to the City investment portfolio. "
Bruce Lockhart, 2500 East Harmony, stated the Urban Renewal Authority is subsidizing outside
companies to come to Fort Collins and move poor people from their homes. A new supermarket is
not needed that would be located across the street from an existing grocery store. Council should
not adopt the Ordinance and provide this type of subsidy.
Councilmember Roy made a motion, seconded by Councihnember Manvel, to adopt Ordinance No.
046, 2009 on Second Reading. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and
Troxell. Nays: none.
THE MOTION CARRIED.
Adjournment
Councilmember Ohlson made a motion, seconded by Councilmember Roy to adjourn the meeting
to May 12, 2009 at 6:00 p.m. to consider the First Reading of Ordinance No. 053, 2009 and any other
business that might come before Council. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 12:35 p.m.
ATTEST:
City -Clerk
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