HomeMy WebLinkAboutMINUTES-04/20/2010-RegularApril 20, 2010
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, April 20, 2010,
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
David May, President and CEO Fort Collins Chamber of Commerce, thanked Council for its focus
on Fort Collins' economy.
Eric Sutherland, 3520 Golden Currant, discussed the proprietary nature of Fort Collins Utilities
software.
Ann Lance, 424 Pine Street #100, Executive Director, Teaching Tree, discussed early childhood
education.
Vicky Hays, 217 North Roosevelt, discussed the importance of reading to young children and early
literacy development.
Jennifer Van Cleave, 424 Pine Street #100, Site Director, Teaching Tree, discussed poverty and its
impact on young children.
Tara Streob, 424 Pine Street 4100, Administrative Assistant, Teaching Tree, discussed the
correlation between quality child care and employee productivity.
Seth Anthony, 1225 West Prospect Road, Fort Collins Ranked Voting, discussed ranked, or instant
runoff voting, and the possibility of bringing it to Fort Collins.
Stacy Lynne, 216 Park Street, discussed the International Council for Local Environmental
Initiatives. She asked that Council discontinue Fort Collins' association with ICLEI.
Bruce Lockhart, 2500 East Harmony Road, discussed solar energy versus coal energy in Fort
Collins.
229
Apri120, 2010
Citizen Participation Follow-up
Mayor Hutchinson asked for clarification regarding "proprietary" with regard to Fort Collins
Utilities. City Manager Atteberry stated "proprietary" does not mean leadership is exclusive;
various City departments use proprietary software. Brian Janonis, Utility Services Executive
Director, stated the model referenced by Mr. Sutherland is proprietary in the sense of intellectual
property. The results were shared with a citizens' advisory group and are available for public
inspection. City Manager Atteberry stated technology tools used by the City are not chosen to allow
secrecy.
Councilmember Poppaw thanked the individuals who spoke regarding early childhood education
and discussed the link between early childhood education and economic vitality.
Councilmember Manvel discussed the downside of Fort Collins' existing voting system and
encouraged exploring transferrable voting or approval voting.
Councilmember Roy expressed support for ranked voting and thanked Mr. May for his support. He
thanked the early childhood education representatives.
Agenda Review
City Manager Atteberry postponed Item No. 22, Resolution 2010-023, Approving the North College
Infrastructure Funding Plan, to May 4, 2010.
CONSENT CALENDAR
r
6. Postponement of Second Reading of Ordinance No. 020, 2010, Amending Chapter 26 of the
City Code Relating to Industrial Pretreatment Local Limits and Requirements to July 20,
2010.
Ordinance No. 020, 2010, was unanimously adopted by Council on First Reading on March
2, 2010. In addition to Council adoption, the amendments must also receive EPA approval.
The EPA requires amended pretreatment ordinances to be adopted by Council on First
Reading before they are submitted for EPA approval. After the EPA approves the
amendments, the EPA publishes a public notice, followed by a 30-day period for comment.
Second Reading of Ordinance No. 020, 2010 needs to be delayed until the Ordinance has
received EPA approval because the EPA could require modifications to the Ordinance as a
result of its review. Staff believes that Second Reading of this Ordinance should be
postponed to July 20.
7. Second Reading of Ordinance No. 035, 2010 Appropriating Unanticipated Grant Revenue
and Appropriating Additional Unanticipated Revenues in the Light and Power Fund for the
Northern Colorado ENERGY STAR New Homes Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Light and Power Operating Budget.
230
April20, 2010
This Ordinance, unanimously adopted on First Reading on April 6, 2010, appropriates grant
funds received from the State of Colorado's Governor's Energy Office. The grant totals
$50,000 for the continuing development and implementation of the ENERGY STAR New
Homes Program in the Northern Colorado region. The grant requires a $15,000 match from
the Utilities and a $41,000 match from other regional program partners. The Ordinance also
transfers the Utilities $15,000 match from existing Light and Power operating
appropriations. In addition, the Ordinance appropriates a total of $41,000 pledged by the
program partners in 2010 and a net of $44,381 previously received from the program
partners in 2009.
8. Second Reading of Ordinance No. 036, 2010, Amending Section 26-283 of the City Code
to Authorize the Utilities General Manager to Establish Temporary Arrangements for Use
of City Wastewater System Capacity.
This Ordinance, unanimously adopted on First Reading on April 6, 2010, authorizes
temporary wastewater service arrangements. Generally, Utilities customers establish
parameters for wastewater discharge flows and pay associated plant investment fees prior
to service delivery. In some instances, usually with an expansion of service, parameters for
wastewater service cannot be determined until the expansion is complete. This Code change
provides general guidelines for this specific type of service agreement.
9. Second Reading of Ordinance No. 037, 2010, Amendine Section 10-80 of the City Code to
Prohibit Certain Residential and Mixed -use Construction on Properties Removed from the
Poudre River Floodplain Through the LOMR-fill Process.
The Federal Emergency Management Agency has a process to remove property from the
floodplain by the placement of fill called the Letter of Map Revision Based on Fill (LOMR-
Fill). The current Poudre River regulations do not allow new residential or mixed -use
structures or additions in the Poudre River flood fringe. This prohibition was adopted due
to the life -safety risk of allowing people to sleep in the floodplain. However, if a LOMR-Fill
is granted, these regulations do not apply, causing an inconsistency. This Ordinance,
unanimously adopted on First Reading on April 6, 2010, removes that inconsistency and will
not allow a new residential or mixed use development on a LOMR-Fill.
NOTE: This Ordinance is not related to the proposed State of Colorado Floodplain
Regulations.
10. Items Relating_ to the Authorization of Utility Enterprises to Have and Exercise Certain
Powers.
A. Second Reading of Ordinance No. 038, 2010, Amending Section 26-392 of the City
Code Regarding the City's Electric Utility Enterprise.
231
c
Apri120, 2010
B. Second Reading of Ordinance No. 039, 2010, Amending Section 26-209 of the City
. Code Regarding the City's Wastewater Utility Enterprise.
These Ordinances, unanimously adopted on First Reading on April 6, 2010, clarify the
powers of the Enterprises. The revisions are consistent with the authorizations given in the
City Code for the Water and Stormwater Utility Enterprises.
11. Second Reading of Ordinance No. 040, 2010, Amending Section 2-582 of the City Code
Pertaining to the Creation and Elimination of Deputy and Assistant City Attorney Positions.
This Ordinance, unanimously adopted on First Reading on April 6, 2010, amends Section
2-568(a) of the City Code to authorize the City Attorney to create and fill Deputy and
Assistant Attorney positions as he or she deems necessary to meet the legal services needs
of the City and to fulfill the City Attorney's duties and responsibilities under the City
Charter, as long as sufficient funds have been appropriated and made available by the City
Council to defray the costs associated with such positions.
12. . First Reading of Ordinance No. 044, 2010, Appropriating Unanticipated Revenue in the
General Fund for the Restoration and Rehabilitation of Paramount Cottage Camp.
This Ordinance appropriates unanticipated revenue in the amount of $148,000 for the
rehabilitation and restoration of 1544 West Oak Street, the historic Paramount Cottage
Camp. The Paramount Cottage Camp was built in the 1920s as tourist accommodations and
is comprised of two, parallel, one-story buildings, containing eight apartments each. The
City of Fort Collins was awarded a State Historical Fund grant in 2010 by the Colorado
Historical Society to rehabilitate and restore the property. The Colorado Historical Society's
State Historical Fund is providing the $66,600 grant for the rehabilitation and restoration of
1544 West Oak Street. Matching funds in the amount of $81,400 will be provided by the
owners of the building. The City of Fort Collins will not be responsible for any monetary
contribution, but would be responsible in regards to receiving and administering the funds.
I I Resolution 2010- 020 Authorizing the Cijy Manager to Execute Two Grant Agreements with
the State of Colorado for Funding Pertaining to the Fort Collins -Loveland Municipal
Airport.
This Resolution authorizes the City Manager to execute two grant agreements with the State
of Colorado. The first grant is in the amount of $250,000 and the second grant is in the
amount of $14,650. The first grant will be used to pay a portion of the costs to rehabilitate
runway 15/33 and to repair general aviation ramp areas. The second grant will be used to
reimburse the Cities for half of the personnel costs for a 12-month Airport internship
program.
14. Resolution 2010-021 Approving an Interim Agreement Among the City, the Downtown
Development Authority, the Downtown Business Association, and Progressive Old Town
Square Limited Liability Company, Regarding the Maintenance and Management of Old
Town Plaza.
232
April 20, 2010
This interim agreement between the City of Fort Collins, the Downtown Development
Authority, the Downtown Business Association and Progressive Old Town Square Limited
Liability Company supersedes certain provisions in an agreement from 1993 and a
subsequent interim agreement dated July 13; 2005, for the maintenance and management of
the Old Town Plaza.
15. Resolution 2.010-022 Making Appointments to Various Boards and Commissions.
This Resolution makes appointments to fill current vacancies on the Air Quality Advisory
Board, the Commission on Disability and the Golf Board.
***END CONSENT'
Ordinances on Second Reading were read by title by City Clerk Krajicek.
7. Second Reading of Ordinance No. 035, 2010 Appropriating Unanticipated Grant Revenue
and Appropriating Additional Unanticipated Revenues in the Light and Power Fund for the
Northern Colorado ENERGY STAR New Homes Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Light and Power Operating Budget.
8. Second Reading of Ordinance No. 036, 2010, Amending Section 26-283 of the City Code
to Authorize the Utilities General Manager to Establish Temporary Arrangements for Use
of City Wastewater System Capacity.
9. Second Reading of Ordinance No. 037, 2010, Amending Section 10-80 of the City Code to
Prohibit Certain Residential and Mixed -use Construction on Properties Removed from the
Poudre River Floodplain Through the LOMR-fill Process.
10. Items Relating to the Authorization of Utility Enterprises to Have and Exercise Certain
Powers.
11. Second Reading of Ordinance No. 040, 2010, Amending Section 2-582 of the City Code
Pertaining to the Creation and Elimination of Deputy and Assistant City Attorney Positions.
20. Second Reading of Ordinance No. 041, 2010, Amending Sections of the Land Use Code
Relating to Occupancy Limits.
Ordinances on First Reading were read by title by City Clerk Krajicek.
12. First Reading of Ordinance No. 044, 2010, Appropriating Unanticipated Revenue in the
General Fund for the Restoration and Rehabilitation of Paramount Cottage Camp. ,
233
A- il20, 2010
19. Items Relating to Medical Marijuana.
A. First Reading of Ordinance No. 045, 2010, Amending the City's Land Use Code by
Adding Medical Marijuana Cultivation Facilities as Permitted Uses in Various Zone
Districts.
B. First Reading of Ordinance No. 046, 2010, Amending Article XVI, Chapter 15 of the
City Code Relating to Medical Marijuana.
C. First Reading of Ordinance No. 047, 2010, Amending Ordinance No. 025, 2010, to
Clarify the Application of Chapter 15, Article XVI of the City Code to Existing
Medical Marijuana Businesses.
21. First Reading of Ordinance No. 043, 2010, Appropriating Unanticipated Revenue and
Electric Revenue Bond Proceeds for the Smart Grid Investment Grant Project in the Light
and Power Fund and for Bond Issuance Costs.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt and
approve all items on the Consent Calendar. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw,
Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Ohlson asked for clarification of certain details regarding Item No. 12, First
Reading of Ordinance No. 044, 2010, Appropriating Unanticipated Revenue in the General Fund
for the Restoration and Rehabilitation of Paramount Cottage Camp. Steve Dush, Current Planning
Director, replied the grant will be used for the rehabilitation and restoration of the property and it
will be administered through the City; no City funds will be used. The building will be restored to
its original character and it will be available for its current rental unit use. Adaptive reuses may still
be applied.
Staff Reports
Joe Frank, Advance Planning Director, gave an update regarding Plan Fort Collins. He stated the
project is a 14-month long major visioning effort about Fort Collins' future which will result in a
new City Plan and Transportation Plan. Phase One has focused on examining key trends that will
influence Fort Collins for up to the next century.
City Manager Atteberry thanked the Town of Windsor for reimbursing Fort Collins for its assistance
with the 2008 tornado recovery. He stated Forbes Magazine ranked Fort Collins one of the best
places for business and careers. Fort Collins Utilities received recognition for its reliable electric
234
April20, 2010
operations and received an award for excellence in environmental education from the Colorado
Alliance for Environmental Education.
Councilmember Reports
Councilmember Manvel stated the local United Way received an award for "Make a Difference
Day."
Items Relating to Medical Marijuana, Adopted on First Reading
The following is staff s memorandum for this item:
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 045, 2010, Amending the City's Land Use Code by Adding
Medical Marjuana Cultivation Facilities as Permitted Uses in Various Zone Districts.
B. First Reading of Ordinance No. 046, 2010, Amending Article XVI, Chapter 15 of the City
Code Relating to Medical Marijuana.
C. First Reading of Ordinance No. 047, 2010, Amending Ordinance No. 025, 2010, to Clarify
the Application of Chapter 15, Article XVI of the City Code to Existing Medical Marijuana
Businesses.
These ordinances are being presented for Council's consideration in response to direction received
on March 16, 2010, when the Council adopted two ordinances establishing a comprehensive set of
regulations for medical marijuana businesses (MMBs).
Ordinance No. 045, 2010, would amend the Land Use Code to allow medical marijuana cultivation
sites to be located in additional zone districts besides the Industrial zone. Since three of these
districts currently also allow medical maryuana dispensaries, adoption of this Ordinance would
allow for the combination of dispensaries and cultivation sites on the same parcel of property in
those districts.
Ordinance No. 046, 2010, would amend the newly established MMB licensing regulations to
accommodate combined dispensaries and cultivation facilities and to address other concerns
expressed at thehearings that were held with regard to the licensing regulations and to respond to
questions that have since been presented to staff by members of the industry.
Ordinance No. 047, 2010, would amend the provisions of Ordinance No. 025, 2010 to clarify which
businesses will be considered existing businesses that are eligible to immediately apply for a license
and to authorize the issuance of a non provisional license to those businesses that meet the location
requirements contained in the MMB regulations and the zone district standards.
235
April 20, 2010
BA CKGR O UND/DISC USSION
On March 16, 2010, the Council adopted two ordinances regulating medical marijuana businesses.
The overall purpose of these ordinances is to acknowledge and protect the rights of patients and
their primary caregivers under the provisions ofAmendment 20 to the Colorado Constitution, while
also protecting the health, safety and welfare of the public and curtailing, to the extent reasonably
possible, the possession, use, distribution, or transportation of marijuana for unlawful purposes.
The first ordinance (Ordinance No. 025, 2010) amended the City Code to add a new Article XVI
which establishes a licensing system. The second (Ordinance No. 026, 2010) amended the Land Use
Code to allow medical mar�juana dispensaries in the C, CS, CCR, CCN, D, RDR, and CC zone
districts, and to allow medical marijuana cultivation facilities in the Industrial zone.
Proposed Amendments to the Land Use Code
At the public hearing on these ordinances, several MMB owners stated that there is a lack of
available building space in the I zone for cultivation sites. In response, the Council directed staff
to explore the possibility of allowing cultivation sites in other areas of the City. After investigating
that possibility, staff is proposing Ordinance No. 045, 2010 (the "LUC Ordinance').
Ordinance No. 045, 2010, would allow cultivation sites in the C-S, C-C-N and R-D-R zone districts,
as well as the "non -Riverside "portion of the C-L district. The reason for this recommendation is
that these zones currently allow for dispensaries and "light industrial " uses, and a cultivation site
might legitimately be viewed as a similar kind of use. The LUC defines a "light industrial" use as
follows:
"Light industrial shall mean uses engaged in the manufacture, predominantly from
previously prepared materials, of finished products or parts, including processing,
fabrication, assembly, treatment, packaging, incidental storage, sales or distribution
of such products. Further, light industrial shall mean uses, such as the manufacture
of electronic instruments, preparation of food products, pharmaceutical
manufacturing, research and scientific laboratories or the like. Light industrial shall
not include uses such as mining and extracting industries, petrochemical industries,
rubber refining, primary metal or related industries. "
As noted above, Ordinance No. 026, 2010, amended the LUC to allow medical marijuana
dispensaries in the C, C-S, C-C-R, C-C-N, D, R-D-R, and C-C zones. Therefore, with adoption of
Ordinance No. 045, 2010, it would be possible for MMB owners to combine a dispensary and a
cultivation site on the same property in the C-S, C-C-N and R-D-R districts. This would alleviate
the concern expressed by some MMB owners about the cost and inconvenience ofhaving to establish
and operate a cultivation site at a different location than the dispensary.
236
April 20, 2010
Proposed Amendments to the Licensing Regulations
Ordinance No. 046, 2010, is being presented in response to other concerns expressed at the public
hearing on March 16. This Ordinance .would amend the licensing regulations to achieve the
following:
Section 15-452 would be amended to require all primary caregivers who would otherwise
be exempt from the licensing requirements to obtain a license if they decide to join together
with others in collectively operating a cultivation site. Staff believes that these collective
sites present the same health and safety concerns as sites operated by an individual license
holder. At a collective site, each patient or primary caregiver participating in the collective
would be responsible for compliance with all licensing regulations as applied to his or her
portion of the facility.
Section 15-465 would be amended in the following respects:
to allow dispensaries to cultivate only non-floweringplants (whether for cloning or
sale) and to require that the cultivation of all other plants be conducted at the
cultivation facility shown on the licensee's application;
to require that cultivation facilities that are operated in the same building as a
dispensary be independently ventilated and secured so as to prevent entry to the
cultivation facility by patients during all hours of operation of the dispensary; and
to require the City to keep confidential, to the extent permitted by law, the location
of cultivation facilities.
Section 15-469 would be amended to increase --from two ounces to four ounces within a
seven day period of time -- the amount of medical marijuana that can be purchased or sold
by licensees. While staff continues to believe that sales to individual patients and primary
caregivers should remain at two ounces per seven day period, as approved by the Council
on March 16, the greater amount of four ounces is being recommended for sales between
licensees in order to better allow for the disposition of excess quantities by licensees and to
also allow licensees to obtain different strains ofinedical marijuana for particular patients.
Section 15-469 would be further amended to expand the categories ofpersons who can enter
a dispensary to include minors accompanied by a parent or guardian who is a patient.
Proposed Amendments to the Requirements and Procedures for Licensing Existing MMBs
Ordinance No. 047, 2010, amends the provisions of Ordinance No. 025, 2010, which added the
licensing requirement for MMBs to the City Code, also contains several sections that spell out the
process for the licensing of existing MMBs. Under these sections, the only businesses that will be
immediately eligible for licensing are those that obtained a sales and use tax license from the City
237
11
April20, 2010
on or before December 11, 2009, and that also commenced operation on or before March 26, 2010.
Existing businesses must apply for licensing no later than June 30, 2010. If they fail to apply by that
date, then they must immediately cease operation. If they apply for a license and the application
is denied, they must cease operation within ten days after the date of denial of the application.
Applicants whose applications are approved will be issued a provisional license until the City
Council determines, after receiving a report and recommendation from the City Manager, whether
they will be allowed to remain in their present locations. All applications must be in the same
business name and owner's name as appear on any other license or permit previously issued by the
City.
In administering these provisions, staff has encountered two significant questions of interpretation:
(1) When an applicant is a business entity rather than a natural person, what constitutes the
"same owner's name"?
This question is significant because, under the new licensing requirements, a license cannot be
issued to an entity if any of the principals of, or financial interest holders in, the entity have been
convicted of a felony criminal offense and have been released from court -ordered supervision within
the ten year period immediately prior to the date of the application. Also, while a business that has
changed principals may later be eligible to apply for an MMB license once Council has made the
"grandfathering" decision, it should not be considered an "existing business" that may be entitled
to possible grandfathering.
Therefore, staff is recommending that a license application be considered to be in the same owner's
name only if all of the persons listed on the application as having an ownership interest in an entity
are identical to those listed on the previous license application filed with the City.
(2) At what point should a business be considered to have "commenced operation"?
This question is significant because some businesses that were issued a sales and use tax license on
or before December 11, 2009, have actually commenced operation by making sales. Others have
made substantial investments in real or personal property and have begun cultivation but have not
yet begun actually selling medical marijuana. Still others have taken no action to commence
operation.
Staff is recommending that a business be considered to have commenced operation on or before
March 26, 2010, if it either began selling medical marijuana before that date, as shown on sales tax
returns filed with the City, or if its owners had invested at least $5, 000 before that date to purchase,
lease or improve real property or to acquire personal property (other than medical marijuana) for
the sole purpose of establishing or operating the business.
Finally, staff is recommending that Ordinance No. 025, 2010, be amended to allow for the issuance
of a non provisional license to applicants whose business location meets all of the location
requirements contained in Section 15-454 ofthe City Code and the zone district standards contained
238
April20, 2010
in the Land Use Code. There is no reason that the owners of these businesses should remain
uncertain about the status of their license with the City even though they may still be uncertain
about the legal status of their business under state or federal law. "
Ginny Sawyer, Neighborhood Administrator, discussed the current regulations and the changes the
proposed Ordinances would make to those regulations. Cultivation facilities would be allowed in
additional zone districts, which would add 544 acres to the land available for cultivation facilities.
For the zoning districts which would now allow both dispensaries and cultivation facilities,
cultivation would be allowed on -site at dispensaries. The amount of medical marijuana that can be
purchased or sold between licensed operators is proposed to be increased to 4 ounces per seven-day
period.
Troy Jones, MTA Planning and Architecture, 238 Walnut Street, proposed allowing medical
marijuana cultivation facilities at Airpark Village, specifically in existing hangars.
Douglas Stiff, 18245 East Brown Circle, Aurora, Colorado, stated he is a medical marijuana patient
and opposed further regulations.
Steve Ackerman, managing partner Organic Alternatives, 346 East Mountain, supported allowing
dispensaries to grow on -site or nearby in all zone districts.
P. J. DiPentino, 119 Greenwood Drive, supported regulations and allowing cultivation facilities in
Airpark Village.
Richard (no last name given), Fort Collins resident, Airpark Village Grow Co-op, discussed
potential plans for locating a co-op cultivation facility in Airpark Village.
Michael Stolting,1240 West Elizabeth, Medical MJ Supply, asked that his facility be grandfathered.
Kyle Kauffman, Top Shelf Colorado, encouraged grandfathering existing dispensaries and discussed
potential state regulations.
Nick Dice, 1240 West Elizabeth, Medical MJ Supply, encouraged allowing on -site cultivation and
encouraged grandfathering existing dispensaries.
Damian Farris, Top Shelf Colorado, asked that Council consider grandfathering existing
dispensaries.
Joe Dice, 1240 West Elizabeth, The Grow Shop, expressed concern regarding privacy issues and
encouraged grandfathering.
Michael Moeckler, Campus East Dispensary,1740 South College, expressed concern that landlords
will be unwilling to rent to dispensaries due to fear of breaking federal laws.
239
Apri120, 2010
Kirk Scramstad,123 East Drake, medical marijuana dispensary employee, supported the regulations.
Philip Hales, 220 Fishback Avenue, opposed the regulations.
Ken Correia, Solace Meds, 301 Smokey Street, encouraged Council to consider grandfathering and
supported the regulations.
Richard Present, co-founder Greener Radio and Nature's Medicine, opposed the regulations.
Unidentified Larimer County Resident, Airpark Village Coalition, asked that Council consider
allowing cultivation facilities in Airpark Village.
Travis Cutbirth, 420 South Howes, asked for clarification regarding certain terms in the proposed
regulations.
Ann Malone, 220 Stuart, opposed medical marijuana usage and advertising.
Christian Bashley, commercial landlord, opposed the regulations and supported free market control
of the industry.
Eli (no last name given), Earthly Elements, opposed further regulations.
Derek Holden, Earthly Elements, supported spot grandfathering for dispensaries and cultivation
facilities.
Dustin Jesch, Indica RX, expressed concern regarding patient confidentiality and limits on wholesale
sales.
Mayor Hutchinson clarified grandfathering would be considered at a later date.
Councilmember Poppaw asked how home rule powers apply in this case. City Attorney Roy replied
the final state law will fully determine the answer but the present draft of House Bill 1284 allows
municipalities to have more stringent local laws. State and local licenses may both be ultimately
required as well.
Councilmember Poppaw asked for staff s opinion regarding the Airpark Village cultivation facility
proposal. Peter Barnes, Zoning Administrator, replied the current proposal has not been considered.
Staff has determined medical marijuana cultivation seems to be most similar to the light industrial
use category. The zones that allow light industrial uses which staff is not recommending for
cultivation facilities are the E — Employment zone, the HC — Harmony Corridor zone, and the LMN
— Low Density Mixed Use zone. Staff is concerned that locating cultivation facilities within 700
feet of Airway Avenue could result in safety issues and unintended consequences for nearby
property owners.
240
Apri120, 2010
Mayor Hutchinson suggested staff examine the Airpark Village proposal prior to Second Reading.
Councilmember Kottwitz asked if rezoning the Airpark Village parcel would be an option for those
proposing the cultivation facility there. Barnes replied that would be an option.
Councilmember Kottwitz asked why cultivation facilities and dispensaries were originally
determined to be separate uses and why staff now feels it is appropriate to combine them in certain
zones. Jerry Schiager, Police Services, replied the dispensaries are publically-licensed retail sites
and the cultivation sites are to remain off public record for security reasons. Staff was also told
combining the two was not a good business plan as each requires very different environments.
However, some zones are appropriate for the two uses to be combined.
Councilmember Troxell asked if addressing these issues in a more comprehensive fashion following
the state regulations would be more effective. City Attorney Roy replied the amendments are being
discussed now due to Council direction and in response to public feedback.
Councilmember Troxell asked how staff determined what zones should allow cultivation facilities.
Steve Dush, Current Planning Director, replied staff examined the impacts of a cultivation facility
and determined the impacts were similar to those of light industrial uses.
Councilmember Troxell asked what analysis of the I —Industrial zone had been done to determine
the amount of land available for cultivation facilities. in that zone. Dush replied staff did not
complete a building -by -building analysis, but was told by individuals in the industry that finding
locations for cultivation facilities solely in that zone was difficult.
Councilmember Troxell asked if staff is recommending additional zones because of Amendment
20 requirements. City Attorney Roy replied in the negative.
Councilmember Manvel asked how the wholesale amounts allowed in the proposed Ordinance will
compare to wholesale amounts that may be allowed by the state. City Attorney Roy replied state
licensing provisions would not go into effect until August 2011, with the exception of the provision
allowing municipalities to regulate in the interim, which would go into effect immediately.
Councilmember Manvel asked if buying and selling between licenses will be limited to monetary
exchanges only or if bartering or exchanging will be allowed. City Attorney Roy replied he would
examine the language prior to Second Reading.
Councilmember Ohlson asked about allowed uses in the D — Downtown zone. Barnes replied some
of the uses, such as auto repair, have been grandfathered, though they would not be allowed now.
The purpose statement for the Downtown zone does not call for such light industrial uses.
Councilmember Ohlson asked if interested parties, such as the City Manager or Councilmembers,
would be breaking the law to enter a dispensary if they do not carry a medical marijuana card.
Schiager replied the only legitimate customers of the businesses are those with legal authorization.
241
April 20, 2010
City Attorney Roy stated Council adopted the regulation allowing only cardholders into the
dispensaries; however, should Council view it as too restrictive, it can be changed.
Councilmember Roy .asked about provisions regarding guardians being allowed to enter
dispensaries. City Attorney Roy replied "guardian" is not defined, but the new provision would
allow a minor to come onto the premise if accompanied by a parent or guardian who is a patient.
Councilmember Ohlson asked if records are kept regarding purchasers and dates of purchase of
prescription drugs. Schiager replied that. information is available and documented, but may require
a court order to obtain.
Councilmember Ohlson asked why patient records would be collected at dispensaries. Schiager
replied having transaction limits is meaningless if there is no documentation of those transactions.
The purpose of collecting records is to assure transactions are legal, not to determine patients'
identities.
Councilmember Ohlson asked what documents are required to be signed by property owners or
landlords. Schiager replied the property owner should have knowledge and give consent that the
property is being used for the purpose of distributing or cultivating medical marijuana. Sawyer
replied there is only one document, which does need to be notarized.
Councilmember Troxell asked about separation requirements for cultivation facilities. Barnes
replied the adopted Ordinance did not set forth separation requirements for cultivation facilities
primarily because their locations are to remain anonymous.
Councilmember Kottwitz asked if zones allowing both cultivation facilities and dispensaries would
have separation requirements. Bames replied for any combined facility with a dispensary in it,
separation requirements would apply.
Councilmember Roy asked about the definition of a licensee and whether a licensee would be
allowed to do business with operations outside Fort Collins. Schiager replied anyone conducting
a medical marijuana transaction in the City of Fort Collins would have to be licensed as a Medical
Marijuana Business in Fort Collins.
Councilmember Roy asked how many existing businesses in Fort Collins are grandfathered,
regardless of type of use. Bames replied he would research the answer.
Councilmember Roy asked about advertising provisions, particularly in publications outside Fort
Collins. City Attorney Roy replied he would research the answer.
Councilmember Poppaw asked if it is legal for a Fort Collins licensee to acquire any amount of
medical marijuana from another municipality or jurisdiction. City Attorney Roy replied that would
be legal, given the limitations on amount.
242
April20, 2010
Councilmember Roy made a motion; seconded by Councilmember Poppaw, to adopt Ordinance No.
045, 2010, on First Reading.
Councilmember Manvel asked about the Development Review process for medical marijuana
businesses. Barnes replied when a new building is constructed, or a building's use is changed, the
applicant must go through a Development Review process to ensure compliance with applicable
City regulations. The building's use would not be part of the process, as allowed uses are already
defined in the Land Use Code.
Councilmember Manvel asked if odors produced by cultivation facilities would be part of the
Development Review process. Barnes replied they would be, and any violations after approval
would be required to be corrected.
Councilmember Troxell stated he would not support the motion as the Ordinances are simply
expansions which do not well serve the City of Fort Collins.
Councilmember Kottwitz asked for clarification prior to Second Reading regarding some of the
procedural issues.
Councilmember Ohlson asked when the Airpark Village issue would be discussed. Mayor
Hutchinson replied staff has direction to bring analysis back for Second Reading.
City Attorney Roy asked for clarification as to what issues need to be resolved prior to Second
Reading. Councilmember Kottwitz replied information regarding available properties for cultivation
facilities in the I — Industrial zone would be helpful. City Attorney Roy stated he is unsure that data .
can be accurately gathered.
Councilmember Ohlson asked if staff is recommending adding the other zones to the list of those
available for cultivation facilities. Steve Dush, Current Planning Director, replied the Planning and
Zoning Board did receive a staff recommendation to add those zones.
Councilmember Troxell asked if staff was concerned that the regulations would essentially drive the
medical marijuana industry underground. Schiager replied staff has received feedback that
cultivation sites are not available.
Councilmember Troxell stated there is more than a square mile of land zoned I — Industrial available
for the use and reiterated he would not support the motion.
Councilmember Manvel stated he would support the motion as the regulations make it possible for
law-abiding citizens to obtain their medical marijuana.
Councilmember Kottwitz asked if the notarized forms were a requirement from the Ordinances
already passed. Sawyer replied it is a new detail for the proposed Ordinances.
243
14pri120, 2010
Mayor Hutchinson stated he would support the motion.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and
Roy. Nays: Troxell.
THE MOTION CARRIED.
Councilmember Roy made a motion, seconded by Councilmember Poppaw to adopt Ordinance No.
046, 2010, on First Reading.
Councilmember Kottwitz stated she would support the motion, as it is an appropriate compromise.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and
Roy. Nays: Troxell.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Troxell to adopt Ordinance
No. 047, 2010, on First Reading.
Councilmember Ohlson asked that staff prepare an option for Second Reading regarding proposed
expenditures for existing medical marijuana businesses.
Councilmember Roy stated he would support the motion and noted many businesses have been
grandfathered when other changes have been made to the Land Use Code.
Councilmember Troxell stated he would support the motion and noted many of the existing medical
marijuana businesses have begun only within the last two years.
Mayor Hutchinson stated he would support the motion and added Fort Collins should keep its
regulations consistent with nearby municipalities.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy,
and Troxell. Nays: none.
THE MOTION CARRIED.
Ordinance No. 041, 2010,
Amending Sections of the Land Use Code
Relating to Occupancy Limits, Adopted on Second Reading
The following is staff s recommendation for this item.
244
April20, 2010
"EXECUTIVE SUMMARY
The current occupancy regulations should be amended to ensure that they meet Council 's original
intent for limiting the occupancy of dwelling units. This Ordinance, adopted on First Reading on
April 6, 2010, by a vote of 5-2 (Nays: Kottwitz, Troxell) accomplishes this by refining the definition
of Dependent, by adding a "host family" category as another acceptable way to increase the
number of occupants allowed in a dwelling unit, and by revising the definitions of Family and
Occupancy.
In response to feedback from Council and the public on First Reading, the Ordinance has been
revised to change the definition of "dependent" so that the term "natural child" now reads
"biological child". Both terms mean a child by birth, as distinguished from an adopted child. "
Beth Sowder, Neighborhood Services Manager, discussed the amendments to the Land Use Code
relating to the definitions of family, dependent, and occupy, as well as the process for obtaining a
host family permit.
Susan Pawlak, 4014 Mesa Verde Street, expressed concern that the regulations do not allow for
individuals to assist others with housing in the event of a hardship.
Councilmember Manvel noted the regulations do allow, for a period of 30 days, any number of
guests in a home.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
041, 2010, on Second Reading.
Councilmember Troxell stated he would not support the motion as the proposed regulations make
the Three -Unrelated Ordinance worse.
Councilmember Manvel asked Councilmember Troxell for clarification. Councilmember Troxell
replied it is not within the City's purview to regulate an individual's right to open his home.
Councilmember Ohlson stated the Occupancy Ordinance has helped with the negative consequences
of renters in low -density neighborhoods. He stated he would support the motion.
Councilmember Kottwitz agreed with Ms. Pollock's point and stated she would not support the
motion.
Councilmember Roy stated the Occupancy Ordinance has been tremendously helpful in terms of
neighborhood livability and stated he would support the motion.
Councilmember Poppaw stated the Occupancy Ordinance protects neighborhoods and quality of life.
She stated she would support the motion.
245
Apri120, 2010
Mayor Hutchinson noted the Ordinance will repair an unintended consequence of the Occupancy
Ordinance.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy. Nays:
Troxell and Kottwitz.
THE MOTION CARRIED.
Ordinance No. 043, 2010,
Appropriating Unanticipated Revenue and Electric Revenue
Bond Proceeds for the Smart Grid Investment Grant Project in the
Light and Power Fund and for Bond Issuance Costs, Adopted on First Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
Fort Collins Utilities (FCU) has been selected by the Department of Energy (DOE) for a Smart Grid
Investment Grant (SGIG) award. The proposal and award included participation from the Cities
of Loveland, Longmont and Fountain for a total award of $36, 202, 527. The collaboration with the
other cities was done to improve the chances of being selected by DOE — FCU was advised DOE
wanted collaborative projects that included larger geographic areas and integrated funding.
FCUprojects proposed to the DOE totaled $31, 483, 001. The DOE has offered to fund 50% of the
proposed projects ($15, 741, 500). The largest of the proposed projects was for the installation of an
Advanced Metering Infrastructure (AMI) system. In addition to the AMI project, components of the
Utilities Information Technology (IT) Long Range Strategic Plan related to the implementation of
AMI and smart grid technology were included in the proposal. Expansion of the FCUfiber optic
system and grid automation equipment was also included in the proposed projects.
The Ordinance appropriates $18,101,264 in unanticipated grant revenues and $15,741,501 in
proceeds from the sale of Electric Revenue Bonds proposed to be issued in Ordinance No. 001 of
the Board of the Electric Utility Enterprise, for the purpose of funding the Smart Grid project. It
appropriates $258, 499 for bond issuance costs. These appropriations are all in the Light and Power
Fund.
If this Ordinance is approved on First Reading, staff will bring a resolution to the Council on
Second Reading, authorizing the City Manager to execute the contract with the DOE related to the
SGIG and authorizing the City Manager to enter into partner agreements with each of the project
partners: the Cities of Loveland, Longmont and Fountain, Colorado.
BA CKGR O UND/DISC USSION
The DOE grant provides Fort Collins Utilities with an opportunity to install an AMI system,
accelerate the implementation of its long range IT needs and to begin the modernization of its
electrical distribution system.
MR
April 20, 2010
Construction, design and operation of the electrical system are fundamentally the same as they were
50 years ago. Today though, the electric industry, the country and the world are faced with
significant issues that are the direct result of the use and production ofenergy. Measures to address
these issues are creating momentum for change. Specifically, in relation to the electric utility
industry, the issues of greenhouse gases produced through the production of electricity, the
changing expectations of customers and the need to address and insure both the physical and cyber
security of the electrical infrastructure must be addressed. Each of these elements - customer
expectations, use of energy, security and the ability to reduce greenhouse gases - are elements of
a smart grid as defined by DOE.
The Department of Energy (DOE) has defined seven principal characteristics as focal points for the
modernization of the existing electrical grid. These key elements are becoming recognized as the
definition of a smart grid. The characteristics are:,
1. Anticipates and responds to system disturbances
2. Enables active consumer participation
3. Operates resiliently against attack and natural, disaster
4. Provides power qualityfor the digital economy
5. Accommodates all generation and storage options
6. Enables new products, services and markets
7. Optimizes asset utilization and operates efficiently
The paragraphs below discuss each of these smart grid elements as defined by DOE. Descriptions
of "Today's Grid" and the ideal "Modern Grid" are defined by the National Energy Technology
Laboratory, a section of the DOE. Light &Power (L&P) staff is providing two additional
descriptions: a third descriptive element that presents the current status of "Today's Fort Collins
Grid" and a descriptive element that elaborates on "What the SGIG will do for FCU". The intent
is to describe how the Smart Grid Investment Grant will help Fort Collins move towards each of the
defined elements of a smart grid.
1. " Anticipates and responds to system disturbances
Today's Grid. Responds to prevent further damage. Focus is on protection of assets following
system faults.
Modern Grid: It will self heal by performing continuous self -assessments to detect and analyze
issues, take corrective action to mitigate them and, if needed, rapidly restore grid components or
network sections. It will also handle problems too large or too fast-moving for human intervention.
Today's Fort Collins Grid. FCU's electrical system has an outstanding record of reliability. The
almost all underground system is the envy of other utilities. However, as infrastructure ages, it will
become more important to be able to monitor the health of the system components and predict
April20, 2010
failures before they happen. Investment in technology that predicts future failure and reconfigures
the grid will need to be made in the future.
What the SGIG will do for FCU: The transition to a self -healing grid will take years.
Technology is currently under development that will provide the necessary physical control along
with the analysis software necessary to solve how the system should be reconfigured safely and
quickly during an event. The SGIG will allow FCUto install approximately 10 remotely controlled
switches on the distribution system. The switches will have the capability to be controlled from the
Light and Power Systems Control and Operations Center (SCO). Control will be manual by system
operators. This will give staff the opportunity to gain experience in the use of remote switching and
eventually automated controls that reconfigure the system automatically. Prior to the award of the
grant, L&P placed $125, 000 per year in both the 2010 and 2011 budgets for remote switching. The
grant will add an additional $125, 000 offunding to the project (DOE: $125, 000, FCU: $250, 000).
Additionally, the grant application included $31,800 (DOE: $15,900, FCU: $15,900)forintegration
of outage communications from the AMI meters into the existing Outage Management System
(OMS). The project proposal also included funding for additional fault detection equipment on the
system to help identify event locations. (DOE: $50, 000, FCU.-. $50, 000)
2. Enables active consumer participation
Today's Grid. Consumers are uninformed and non participative with the power system.
Modern Grid: The smart grid will give consumers information, control, and options that enable
them to engage in new "electricity markets. " Grid operators will treat willing consumers as
resources in the day-to-day operation of the grid. Well-informed consumers will modify
consumption based on the balancing of their demands and resources with the electric system's
capability to meet those demands.
Today's Fort Collins Grid: FCU has a robust customer education program. Additionally, the
implementation of the Opower program provides significant information to customers that allows
them to better manage their electrical usage if they choose to do so. FCU also provides several
demand response programs for customers to choose to use. Automated hot water heater control and
air conditioning control are offered. A peak demand signal is also provided to customers to help
them choose to control costs.
What the SGIG will do for FCU: In addition to the AMI system, which will provide the
foundational technology for providing information to customers, the SGIG proposal includes two
elements that will provide significant support for the provision of additional information to
customers and more demand response program choices for customers.
The grant application included the implementation of a Meter Data Management System (MDMS).
A MDMS is a software package that is designed to help manage and analyze the data collected by
smart meters. During the original cost benefit analysis performed on the AMI system the size of the
FCU system and the total cost of a MDMS made it impractical. However, the funding through the
F
April 20, 2010
SGIG along with the implementation ofsmaller lower cost MDMS systems makes installation more
attractive. The total amount included in the application for MDMS was $3, 000, 000 (DOE:
$1, 500, 000, FCU $1, 500, 000).
The SGIG also includes a budgeted amount of $5, 314, 830 (DOE: $2, 657, 415, FCU: $2, 657, 415)
for an enhanced demand response program. The long range IT plan identified the need to upgrade
or replace the demand response software currently used by FCU to send the signal to participating
customers' water heaters and air conditioners. In the near future, FCU's existing software will no
longer be supported and the devices used to signal and cycle the water heater and air conditioning
units for customers will become obsolete. The project includes the upgrade of the software along
with an additional 21, 000 control devices. However, as staff has worked to refine the projects
associated with the SGIG it has become evident that recruiting new participants in programs with
the installation of an additional 21, 000 devices over a three year period will be a challenge. The
overall intent of the enhanced demand response programs is to meet the demand response goal of
a 5% reduction in peak demand by 2015 and 10% by 2020 as detailed in the 2009 Energy Policy.
Staff is currently reviewing other technologies and customer options to help achieve the demand
reduction goal. Technologies under consideration are thermal storage and system voltage reduction
utilizing the AMI technologyfor feedback on system performance. Staffestimates that through peak
reduction gained with demand response programs, peak demand charges from Platte River to FCU
will be reduced by approximately $1, 260, 000 per year.
Recently, several citizens expressed concern in reference to the data Utilities will be gathering with
the AMI system and Utilities control of devices through customers participating in the enhanced
demand response programs. FCU recognizes the importance of customer confidentiality and the
level of trust customers expect when providing information to secure their utility service. Customer
records are protected by the FCU Customer Records Policy and FCU takes measures to ensure its
compliance with federal and state regulatory standards. The Customer Records Policy is attached.
The information FCU will be gathering though the AMI system is similar to the data currently
collected for billing purposes. The primary difference is the frequency of the collection. Rather
than monthly, the utility will be capable of reading meters every few minutes. The intent is to have
the data available for the customer to help them better monitor their costs and usage and to enable
customers to make better decisions about their usage. The existing demand response system has
been in place since 1982 for electric water heater control and since 2007 for air conditioner control
and has only been installed for customers who have volunteered for the program. Load control
through the enhanced demand response programs in the SGIG will be voluntary programs just as
they are today. It is expected that air conditioner control will be accomplished through an in -home
thermostat (IHT) that will allow the customer to cancel a load -control request, should they wish to
do so.
AMI meters will also lay the path to allow consideration ofdynamic rate structures such as Time -of -
Use (TOU), Critical Peak Pricing (CPP) and other rates. A cost of service study is currently
underway in Light and Power. Once the cost ofservice study is completed, the utility will begin rate
conversations with Council, the Electric Board and the community. Any changes in rate design will
include a transition period appropriate for the change being considered.
249
April 20, 2010
3. Operates resiliently gainst attack and natural disaster
Today's Grid: Vulnerable to malicious acts of terror or natural disasters
Modern Grid: The Smart Grid will incorporate a system -wide solution that reduces physical and
cyber vulnerabilities and enables a rapid recovery from disruptions. Its resilience will create an
image that intimidates would-be attackers. It will also be less vulnerable to natural disasters.
Today's Fort Collins Grid: As noted, the reliability of the FCU electrical system is well above
national standards. The high reliability is due to the responsiveness of electrical crews when a
problem occurs, the design standards used, and the Council direction that all lines should be
underground.
The other arena where security is of significant concern is cyber security. The control systems and
communication infrastructure that is used throughout the system must be secure from hackers. FCU
is not required to comply with North American Electric Reliability Corporation (NERC) Critical
Infrastructure Protection (CIP) standards. However, FCU's goal is to comply with those design
standards. FCU currently does not completely meet all of the NERC-CIP standards and had
planned and budgeted for several projects in the 2010-11 budget to help move toward compliance..
What the SGIG will do for FCU: The SGIG provides $208, 820 towards the implementation of
cyber security enhancements. Security enhancements were budgeted at $385, 000 in the 2010-11
budgets. The SGIG will provide funding at 35% ($208, 820) of the total project cost. The intent is
to bring the Utilities smart grid infrastructure into compliance with NERC-CIP design standards.
Although FCU is not required to comply, it is prudent to adopt the standards as they apply to a
distribution system. FCU is not required to, and will not, report to the NERC, which is the most
onerous component of the CIP standards.
4. Provides power quality for the digital econom
Today's Grid: Focused on outages rather than power qualityproblems. Slow response in resolving
power quality issues.
Modern Grid. It will monitor, diagnose, and respond to power quality deficiencies resulting in a
dramatic reduction in the business losses currently experienced by consumers due to insufficient
power quality.
Today's Fort Collins Grid. FCUcurrently receives relativelyfew power quality complaints from
customers. Typically, power quality problems are associated with either internal issues within a
facility, or interference from adjacent properties.
What the SGIG will do for FCU. • As Fort Collins moves forward and larger numbers of
distributed generation units are connected to the FCU system, it will become more critical to
monitor power quality. The SGIG proposal included a project to install waveform recording
250
Apr
- il20, 2010
equipment to monitor high speed events on the system and to install meters capable of recording
high speed electrical events at our largest customer sites. The proposed project is S400, 000 (DOE:
$'200, 000, FCU: S200, 000)
S. Accommodates all generation and storage options
Today's Grid: Relatively small number of large generating plants. Numerous obstacles exist for
interconnecting Distributed Energy Resources (DER)
Modern Grid: It will seamlessly integrate all types and sizes of electrical generation and storage
systems using simplified interconnection processes and universal interoperability standards to
support a "plug -and -play " level of convenience. Large central power plants including
environmentally friendly sources, such as wind and solar farms and advanced nuclear plants, will
continue to play a major role even as large numbers of smaller distributed resources, including
Plug-in Electric Vehicles, are deployed.
Today's Fort Collins Grid. As with most electrical distribution systems the FCU electrical
distribution system was designed to be a one-way power delivery system. Small generation
resources such as solar panels and small wind turbines can feed electricity back into the grid. At
current levels these distributed generation resources have not created any issues. However, as we
look to the future and envision solar panels becoming cost competitive or lower than the cost of
energy supplied by the local utilities, it becomes evident that the electrical distribution
infrastructure could serve a role for which it was never designed. The grid could become a two-way
channel for electrical delivery and sales. Additionally, the use of the energy stored in plug -in -
hybrid -electric -vehicles to stabilize the intermittent generation from some resources will also tax
the existing system.
What the SGIG will do for FCU.• Installation of the AMI system will provide feedback to the
Utility on current system conditions. This Information can then be used to analyze the system and
in some cases help manage how and when distributed energy resources feed into the system. With
customer consent, plug -in -hybrid -electric -vehicles could be used as stored energy devices. When
the energy stored in a vehicle is needed to supplement the grid or level the production from
intermittent resources, the utility could contract with customers to purchase the power from their
vehicles.
6. Enables new products and markets
Today's Grid: Limited wholesale markets still working to find the best operating models. Not well
integrated. with each other. Transmission congestion separates buyers and sellers.
Modern Grid. The Smart Grid will link buyers and sellers together —from the consumer to the
Regional Transmission Organization (RTO). It will support the creation of new electricity markets
from the home energy management system at the consumer's premise to technologies that allow
251
April20, 2010
consumers and third parties to bid their energy resources into the electricity market. The Smart
Grid will be transactive and will support consistent market operation across regions.
Today's Fort Collins Grid: Utilities within the state of Colorado do not currently trade through
an RTO or Independent System Operator (ISO) model for wholesale electricity sales today. The
DOE's intent with this smart grid component is to insure that information from either an RTO or
ISO (if developed) is flowing to the retail customer and that they then have a choice on their cost
of wholesale electricity.
What the SGIG will do for FCU: The installation of a communication infrastructure including
the optional home area networks proposed in the FCUAMI system will support the development of
new product and service options that can be delivered via the system to consumers.
7. Optimizes assets and operates efficiently
Today's Grid: Minimal integration of limited operational data with Asset Management processes
and technologies. Siloed business processes. Time based maintenance.
Modern Grid: Operationally, the Smart Grid will improve load factors, lower system losses, and
dramatically improve outage management performance. The availability of additional grid
intelligence will give planners and engineers the knowledge to build what is needed when it is
needed, extend the life of assets, repair equipment before it fails unexpectedly, and more effectively
manage the workforce. Operational, maintenance and capital costs will be reduced thereby keeping
downward pressure on prices.
Today's Fort Collins Grid: FCUis currently in the process of implementing an Asset Management
program. The intent of the program is to help inventory utility assets, assess infrastructure
condition and plan for. maintenance and replacement through risk -based modeling.
WhattheSGIGwill doforFCU: The AMlsystemwill be a communication system that provides
information on the operation and health of components on the system. The enhanced information
will allow FCU to manage and schedule maintenance ofthe system more efficiently and respond to
outages more quickly. Workforce efficiency will also improve if outages can be avoided and
problems addressed through scheduled maintenance.
PROJECT EXECUTION PLAN
During the interim period between the announcement of the intent to award the grant and now, a
team of City staff has been working to refine the tasks proposed in the original grant application.
The table below provides a general summary of the tasks associated with the project.
Staff is currently developing Request -for -Proposal (RFP) documents for a Project Manager /
Integrator to assist with the project. The intent is to hire a consulting agency with experience tying
the different components of the project together in order to insure a seamless integration between
our existing systems and the new.
252
April20, 2010
Staff is also in the process of preparing RFP's for the AMI system, the MDMS system and for a
Cyber security evaluation. "
Steve Catanach, Light and Power Operations Manager, discussed the Department of Energy Smart
Grid Investment Grant awarded to Fort Collins Utilities and the plan for installing and implementing
an Advanced Metering Infrastructure system and Smart Grid system. Residents will be able to
research information regarding prices per kilowatt hour at given times on a new web page.
Eric Sutherland, 3520 Golden Currant, asked if this proposal would lower utility rates for low
income families and if undergrounding the electric utility has resulted in reduced operating costs.
Phil Friedman, 201 South Grant Avenue, discussed Fort Collins' use of wind power and noted the
Smart Grid and Advanced Metering Infrastructure technology are also cutting edge ideas.
Bruce Lockhart, 2500 East Harmony Road, discouraged adopting new technology and expressed
concern relating to cyber security on the electric grid and privacy relating to utility records.
Ann Malone, 220 Stuart, expressed concern regarding central control of in -Home thermostats.
Kevin Cross, 300 Peterson Street, supported tiered rates and the Smart Grid and AMI technology,
Councilmember Kottwitz asked if any rate structure other than tiered rates would work with the
AMI system. Catanach replied there. are other possibilities, including time -of -day rates.
Councilmember Kottwitz asked if the City would be going into debt, through the issuance of $15.5
million in bonds. Catanach replied in the affirmative.
Councilmember Kottwitz asked when and how the money would be recouped. Catanach replied
approximately $1.3 million per year in operational savings will be achieved with daily operations
and demand reductions will save approximately $1 million per year. - The Demand Response
Management System will be presented for Council approval late this year.
Councilmember Kottwitz asked if customers will need to purchase the in -home meter. Catanach
replied customers can participate in energy audits and will be given the meter.
Councilmember Poppaw asked if existing appliances are compatible with the in -home meter.
Catanach replied "smart" appliances, which will communicate with those control devices, will not
be available until the end of the year.
City Manager Atteberry clarified new appliances will not be required by the City.
Catanach stated there are two goals to the program: an energy efficiency goal which is associated
with customer costs and a demand reduction goal which has to do with the billing structure with
Platte River Power Authority.
253
Apri120, 2010
Councilmember Kottwitz asked if utility rates would be reduced after recouping the costs in seven
years. Catanach replied there is a positive return on investment which will, at the least, mitigate how
large rate increases might be.
Councilmember Kottwitz asked about the timeline associated with the Department of Energy grant.
Catanach replied the City has 36 months to complete the project and 18 months to have the majority
of the money committed.
Councilmember Kottwitz asked if this grant could be applied for in the future. Catanach replied he
did not anticipate this level of assistance to be I available in the future.
Councilmember Kottwitz asked for clarification regarding the implementation process and privacy
issues prior to Second Reading.
Catanach stated customer data is held by Utilities and held privately with the exception of law
enforcement. Meters will be able to be read every 15 minutes, as opposed to monthly, which will
allow customers to make more informed decisions regarding energy consumption. The Utilities
Privacy Policy prohibits sharing that information. Hacking into an individual meter would not allow
access to any other meter and the system does not connect to any other system.
Councilmember Ohlson asked how many iterations of the systems have occurred to work out
glitches. Catanach replied the solid state meters have been in the field for 10 years and Advanced
Meter Reading has been occurring since the late 1990s. Home Area Network communication
between the meter and devices in the home is new.
Councilmember Ohlson asked if technology improvements could be made between now and when
the City actually purchases and installs the devices, or if commitments have been made to purchase
existing technology. Catanach replied products will be ordered beginning in 2011.
Councilmember Ohlson asked Mr. Sutherland if he thought this proposal is a good idea. Mr.
Sutherland replied the City is basing return on investment on reducing demand charges that the
Utility pays to Platte River Power Authority. He stated he wanted assurance that ratepayers are
heading down the correct path.
Councilmember Ohlson asked if undergrounding has reduced or slowed the rate of increase of utility
rates. Catanach replied there have been significant cost savings and increased reliability as a result
of undergrounding.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
043, 2010, on First Reading.
Councilmember Roy asked how the old meters would be recycled. Catanach replied as many parts
as possible will be recycled.
254
Apri120, 2010
Councilmember Manvel asked what the total electric billing averages for a year. Catanach replied
the operating budget is approximately $100 million per year.
Councilmember Manvel asked about the expected difficulty in getting 21,000 households to
participate in the in -home metering program. Catanach replied there is flexibility in the proposal
to put together a portfolio of demand response elements.
Councilmember Roy thanked staff for its work and presence at the meeting.
Councilmember Poppaw thanked staff for its work.
Councilmember Kottwitz stated she would not support the motion as she is unsure the $15.5 million
debt is worth the risk.
Mayor Hutchinson stated Utilities is an Enterprise Fund, which does not relate to any General Fund
deficiencies.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy, and
Troxell. Nays: Kottwitz.
THE MOTION CARRIED.
Other Business
Councilmember Poppaw stated the Planning and Zoning Board has asked Council to produce
feedback regarding specific input it would like from the Board.
Adjournment
The meeting adjourned at 11:05 p.m.
Mayor
ATTEST:
City Clerk
255