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HomeMy WebLinkAboutMINUTES-03/02/2010-RegularMarch 2, 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, March 2, 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 Eric Sutherland, 3520 Golden Currant, expressed concern about Council and City staff poorly addressing feed -in tariffs. Tom Weatherly, 2550 Custer Drive, discussed home utility reports and expressed doubt about their accuracy. Brian Shaver, 261 Pine, stated home owners should be allowed to enroll to receive home utility reports and expressed concern that residential utility usage details are not City business. Stacy Lynne, 216 Park Street, stated the City uses social engineering to coerce residents and expressed concern about the home utility reports as they relate to the International Council on Local Environmental Initiatives (ICLEI) and the Global Reporting Initiative. Barb Haggerty, 5 13 3 Millstone Way, expressed concern about home utility reports and asked about the costs for the program. Rudy Zitti, 1626 Fantail Court, expressed concern about home utility reports relating to privacy issues. He asked Council to re-evaluate its overreaching policies. Vivian Armendariz, 820 Merganser Drive, thanked Joe Olson from the Engineering Department for adding time to pedestrian crosswalks. She expressed concern regarding Council comments regarding citizen input. Cheryl Distaso, 135 South Sunset, Center for Justice, Peace, and Environment, stated her organization is researching accessibility issues in Old Town businesses and has secured funding for businesses needing temporary; portable ramps. The Center for Justice, Peace, and Environment will also be working with the City's Historic Preservation Department to provide adobe workshops. 158 March 2, 2010 Bruce Lockhart, 2500 East Harmony, encouraged citizens to attend the Plan Fort Collins.event. Shane Miller, 4325 Mill Creek, stated all forms of government are social engineering. Bill Jenkins, 710 Mathews Street, urged Council to adopt item No. 9 on the agenda, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to be Used for the 2010-2011 Fort Collins Bike Program, without any changes. He expressed support for Council's work. Rick Price, Bike Fort Collins Boardmember,1925 Wallenberg Drive, expressed support for Council and pride in Fort Collins and thanked City staff for repairing potholes at Whitcomb and Prospect. Citizen Participation Follow-up Mayor Hutchinson asked that home utility reports be placed on the agenda for a Leadership Team discussion and review by Council. Councilmember Roy expressed concern regarding City staff s discussion of feed -in tariffs, or grid - sharing. He thanked City staff for repairing potholes along Prospect. Councilmember Kottwitz expressed concern regarding home utility reports and asked if it would be possible for residents to opt -in to the program rather than opt -out. She asked why the information is being gathered and asked about funding sources. She also asked if other utilities are doing similar surveys. City Manager Atteberry replied there are other utilities across the country doing the survey and noted the funds are coming from Utilities, not the General Fund. Other questions will be answered at a later date. Councilmember Manvel stated the home utility reports are designed to help lower power consumption which will help lower utility rates but perhaps the execution of the reports needs to be changed. Agenda Review City Manager Atteberry stated the utility customer billing staff is not collecting information or data on residents or their homes through the home utility reports or surveys. City Manager Atteberry stated Council had new information regarding Item #8, Items Relating to the FC Bike Library Program, and recommended Council postpone Item #9, Items Relating to the FC Bikes Program, until March 16, 2010. Agenda Item 926, First Reading of Ordinance No. 024, 2010, Appropriating $350,000 from Prior Year Reserves, Committed to Police, in the Capital Expansion Fund for Crossroads Safehouse, and Item #27, Items Relating to Medical Marijuana also contain Ordinance revisions. I&M March 2, 2010 CONSENT CALENDAR 6. Second Reading of Ordinance No. 009, 2010, Appropriating Unanticipated Grant Revenue in the General Fund for the Restorative Justice Program. This Ordinance, unanimously adopted on First Reading on February 23, 2010, appropriates funding in the amount of $15,000 from a grant received from the Bohemian Foundation for salaries associated with the continued operation of the RESTORE Program within Restorative Justice Services. 7. Second Reading of Ordinance No. 010, 2010, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2010A, in the Maximum Aggregate Principal Amount of $4,100,000, in the Wastewater Utility Fund. This Ordinance, unanimously adopted on First Reading on February 16, 2010, appropriates the Wastewater Utility Enterprise Fund proceeds from bonds issued by Ordinance No. 005 of the Board of the Wastewater Utility Enterprise. The bonds will refund, pay and discharge all of the outstanding Sewer Revenue Bonds, Series 2000. The bonds being refunded have interest rates of 5.00% to 5.50%; the new bonds should result in an average interest rate of less than 4.00%. Overall, the transaction should yield cashflow savings of approximately $300,000 and net present value savings of at least $275,000. 8. Items Relating to the FC Bike Library Propram. A. Resolution 2010-017 Repealing Resolution 2010-007 and Authorizing the Mayor to Enter into an Intergovernmental Agreement with the State of Colorado Department of Transportation for the Purpose of Obtaining a Congestion Mitigation and Air Quality Grant in Support of the FC Bike Library Program. B. Second Reading of Ordinance No. 011, 2010, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to Be Used for the 2010-2011 Fort Collins Bike Library Program. The Colorado Department of Transportation (CDOT) has revised the FC Bike Library funding contract with the City of Fort Collins for 2010-11. Originally, CDOT had programmed the contract for both fiscal years 2010 and 2011. However, on March 1, 2010, CDOT notified the City that it can only contract for one year at a time. Therefore, the funding contract between the.City and CDOT is only for 2010 and will be amended to extend funding for. 2011. This change in contract administration does not change the overall two year funding amount; it just divides it into two one year segments. The funding contract and work plan for FY2011 will be provided to City Council for review next year. Resolution 2010-017 repeals Resolution 2010-007 to clarify the authorization granted under this Resolution is only for the year 2010 and that the amount of funding provided by the CDOT Congestion Mitigation & Air Quality (CMAQ) grant is in the amount of $82,790. 160 March 2, 2010 The City contracts with Bike Fort Collins, a local non-profit cycling organization, to manage and operate the Fort Collins Bike Library program which includes the continual improvement, refinement, and expansion of the Fort Collins Bike Library. Expansion includes incorporating additional bicycles and check-out stations into the FCBL program and incorporating additional community partners such as schools, businesses, and non-profit organizations. This Ordinance, unanimously adopted on First Reading on February 23, 2010, appropriates these grant funds and has been amended to reflect the funding for 2010 in the amount of $82,790. 10. Second Reading of Ordinance No. 013, 2010, Approving an Amendment to the Fort Collins- Timnath Intergovernmental Agreement Re ag rding Cooperation on Annexation, Growth Management and Related Issues, Extending the Deadline for the City of Fort Collins to Accomplish an Amendment to the City's Growth Management Area Boundary and Extending the Deadline for the Town of Timnath to Exercise an Option to Buy the City - owned Vangbo Open Space Property. On February 17, 2009, the City of Fort Collins and the Town of Timnath entered into an intergovernmental agreement regarding annexations, growth management, and related issues. The agreement resolved certain differences that had arisen between the City and Town concerning a variety of planning and growth management issues. The agreement set one-year deadlines for the City to amend its Growth Management Area boundary and for the Town to exercise a purchase option to acquire the City -owned Vangbo Open Space property. Ordinance No. 013, 2010, unanimously adopted on First Reading on February 16, 2010, extends those deadlines for six months (with the possible extension for an additional six months) and one year respectively. 11. Second Reading_of Ordinance No. 014, 2010, Vacating a Portion of Corbett Drive Right-of- way as Dedicated on the Plat of Front Range Village. The center of the roundabout at Corbett Drive and Council Tree Avenue in the Front Range Village Shopping Center, located at the northeast corner of Ziegler Road and Harmony Road, is proposed for vacation. The shopping center desires to place a Christmas tree and other decorations in the landscaped area of the roundabout during the holiday season. The City's holiday policy does not allow for this. This Ordinance, unanimously adopted on First Reading on February 16, 2010 vacates the center of the roundabout, at the request of Front Range Village. The center of the roundabout is currently maintained by Front Range Village and that will not change with this request. 12. First Reading of Ordinance No. 017, 2010, Authorizing the Transfer of Existing Appropriations from the Street Oversizing Fund to the Capital Projects Fund for the North College Avenue and East Willox Lane Improvements Project. . This Ordinance transfers $1,881,271 in existing appropriations from the Street Oversizing Fund into the Capital Projects Fund for construction of the College Avenue and Willox Lane Improvement Project to construct arterial improvements related to the Marketplace 161 March 2, 2010 development. The improvements are needed to construct College Avenue to current City standards and to provide bicycle, pedestrian and bus facilities. Improvements to Willox Lane will add dedicated turn lanes and construct new commercial access for the development. The project is jointly funded by the North College Urban Renewal Authority, the Street Oversizing Program, and developer contributions. 13. First Reading of Ordinance No. 018, 2010, Establishing Rental Rates and Delivery Charges for the City's Raw Water for the 2010 Irrigation Season. This Ordinance approves rates for the rental and delivery of the City's raw water supplies. The Water Utility uses these rates to assess charges for agricultural use, for various contractual raw water obligations and for raw water deliveries to other City departments. The proposed rate for each type of water is based on several factors including market conditions and assessments charged by irrigation companies. 14. First Reading of Ordinance No. 019, 2010, Amending Chapter 26 of the City Code Relating to Right of Entry and Nuisance Abatement and Article VII of Chapter 26 Relating to Stormwater Quality and Enforcement. Staff has identified changes to the City Code that are necessary to reflect recent changes to permits and policies issued by the Colorado Department of Public Health and Environment (CDPHE) and to improve enforcement mechanisms related to stormwater quality. The Ordinance will allow authorized City employees to investigate and abate imminent hazards to the City's Utilities systems and to recover costs of abatement from responsible parties. The Ordinance also includes amendments that are specific to Article VII of Chapter 26 related to stormwater to impose more stringent limitations than those required by CDPHE related to stormwater discharges, to allow stop work orders to be issued on construction sites for stormwater violations of the City Code, and to address proper maintenance and operation of private stormwater quality facilities. 15. First Reading of Ordinance No. 020, 2010 Amending Chapter 26 of the City Code Relating to Industrial Pretreatment Local Limits and Requirements. This Ordinance amends the City Code to provide legal authority to implement and enforce revised Federal pretreatment regulations. The Ordinance also contains revised pollutant local limits applicable to industrial wastewater dischargers. The modifications and revised local limits were developed based upon Environmental Protection Agency (EPA) Region VIII requirements and guidance and will be subject to EPA approval between the First and Second Reading of the Ordinance. 16. First Reading of Ordinance No. 021, 2010, Authorizing the Conveyance of Three Non - Exclusive Utility Easements on City Property to Qwest Corporation. In 1995 and 2004, the City of Fort Collins conveyed various easements on City property known as Avery Park to Qwest Corporation ("Qwest") for installation of utility improvements. Qwest recently discovered the utility improvements were erroneously 162 March 2, 2010 installed outside the granted easement area. Qwest is requesting the City convey new easements to reflect the actual location of the installed equipment. Qwest has also expressed interest in acquiring a new easement along the boundary of the City's property for additional utility improvements already installed by Qwest. In exchange, Qwest will terminate the existing easements. 17. First Reading of Ordinance No. 022, 2010, Expanding the Boundaries of the Fort Collins Downtown Development Authority and Amending the Plan of Development of the Authority. This item is a request to expand the boundaries of the Downtown Development Authority (DDA) and to amend the Plan of Development of the Authority to include properties in the 600 block of South Mason and 200 block of West Myrtle. The properties include the Avogadro's Number restaurant and site; the small shopping center at the southeast corner of Mulberry and Mason Streets which currently contains the Larimer County Democratic headquarters, a salon and a smoothie bar•, and 2 rental residences. 18. First Reading of Ordinance No. 023, 2010, Authorizing the Conveyance of a Perpetual, Non- exclusive Easement to Larimer County Canal No. 2 Irrigating Company. This Ordinance authorizes the granting of an easement by the City to the Larimer County Canal No. 2 Irrigating Company. The easement will allow for the continued use of the City Ditch for irrigation flows. Similar terms have been in place for over 100 years, and will avoid disruption of the right to run those irrigation flows. 19. Resolution 2010-014 Making Findings of Fact and Conclusions Pertaining to the Appeal by the Rigden Farm Master Association of the December 9, 2009 Determination of the Landmark Preservation Commission to Deny the Association's Request for Permission to Install Fiber Cement Siding on the Rigden Farm "Barn." On December 23, 2009, a Notice of Appeal was filed regarding the December 9, 2009 decision of the Landmark Preservation Commission to deny the request to install fiber cement siding on the historic Rigden Farm Barn. On February 16, 2010, City Council voted 7-0 to uphold the decision of the Landmark Preservation Commission. In order to complete the record regarding this appeal, Council should adopt a Resolution making findings of fact and finalizing its decision on the Appeal. 20. Resolution 2010-015 Authorizing the City Manager to Execute the 2010 Grant Agreement with the Federal Aviation Administration for Improvements at the Fort Collins -Loveland Municipal Airport. This Resolution authorizes the City Manger to execute a grant from the Federal Aviation Administration for Entitlement funds in the amount of $500,000. These funds will be used for design services for a capital construction project that will be done this summer. The 163 March 2, 2010 capital project will rehabilitate the Airport's primary runway and is anticipated to cost approximately $6.5 million. 21. Resolution 2010-016 Making Appointments to Various Boards and Commissions. This Resolution appoints new members to the Air Quality Advisory Board, the Community Development Block Grant Commission, the Parks and Recreation Board, and the Women's Commission. 22. Routine Deed General Warranty Deed from LN Real Estate, LLC, for a small strip of right-of-way as part of the City's North College Avenue and Willox Lane Intersection Improvement Project next to the North College Marketplace development. Monetary consideration: $10. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 6. Second Reading of Ordinance No. 009, 2010, Appropriating Unanticipated Grant Revenue in the General Fund for the Restorative Justice Program. 7. Second Reading of Ordinance No. 010, 2010, Appropriating Proceeds from the Issuance of City of Fort Collins, Colorado, Wastewater Utility Enterprise, Sewer Revenue Refunding Bonds, Series 2010A, in the Maximum Aggregate Principal Amount of $4,100,000, in the Wastewater Utility Fund. 8. Second Reading of Ordinance No. 011, 2010, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to Be Used for the 2010-2011 Fort Collins Bike Library Program. 10. Second Reading of Ordinance No. 013, 2010, Approving an Amendment to the Fort Collins- Timnath Intergovernmental Agreement Regarding Cooperation on Annexation, Growth Management, and Related Issues, Extending the Deadline for the City of Fort Collins to Accomplish an Amendment to the City's Growth Management Area Boundary and Extending the Deadline for the Town of Timnath to Exercise an Option to Buy the City - owned Vangbo Open Space Property. 11. Second Reading of Ordinance No. 014, 2010, Vacating a Portion of Corbett Drive Right-of- way as Dedicated on the Plat of Front Range Village. Ordinances on First Reading were read by title by City Clerk Krajicek. 12. First Reading of Ordinance No. 017, 2010, Authorizing the Transfer of Existing Appropriations from the Street Oversizing Fund to the Capital Projects Fund for the North College Avenue and East Willox Lane Improvements Project. 164 March 2, 2010 13. First Reading of Ordinance No. 018, 2010, Establishing Rental Rates and Delivery Charges for the City's Raw Water for the 2010 Irrigation Season. 14. First Reading of Ordinance No. 019, 2010, Amending Chapter 26 of the City Code Relating to Right of Entry and Nuisance Abatement and Article VII of Chapter 26 Relating to Stormwater Quality and Enforcement. 15. First Reading of Ordinance No. 020, 2010 Amending Chapter 26 of the City Code Relating to Industrial Pretreatment Local Limits and Requirements. 16. First Reading of Ordinance No. 021, 2010, Authorizing the Conveyance of Three Non - Exclusive Utility Easements on City Property to Qwest Corporation. 17. First Reading of Ordinance No. 022, 2010, Expanding the Boundaries of the Fort Collins Downtown Development Authority and Amending the Plan of Development of the Authority. 18. First Reading of Ordinance No. 023, 2010, Authorizing the Conveyance of a Perpetual, Non- exclusive Easement to Larimer County Canal No. 2 Irrigating Company. 26. First Reading of Ordinance No. 024, 2010, Appropriating $350,000 from Prior Year Reserves, Committed to Police, in the Capital Expansion Fund for Crossroads Safehouse. 27. Items Relating to Medical Marijuana. A. First Reading of Ordinance No. 025, 2010, Adding an Article to Chapter 15 of the City Code Governing the Licensing, Location and Operation of Medical Marijuana Dispensaries. B. First Reading of Ordinance No. 026, 2010, Making Amendments to the City Land Use Code Relating to Medical Marijuana. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt the Consent Calendar as modified, including the postponement of Item No. 9 to March 16, 2010. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Consent Calendar Follow-un Councilmember Roy asked that City staff respond to questions he submitted earlier regarding Item 913, First Reading of Ordinance No. 018, 2010, Establishing Rental Rates and Delivery Charges for the City's Raw Water for the 2010 Irrigation Season, prior to Second Reading. 165 March 2, 2010 Staff Reports City Manager Atteberry stated the Northern Colorado Community Foundation, not the City, is funding a speaking engagement by Thomas Frey and encouraged residents to attend the Plan Fort Collins event. Councilmember Reports Councilmember Poppaw stated she attended the Governors Arts Council awards, for which the City was nominated. Mayor Hutchinson discussed the Platte River Power Authority's long-term innovative climate action plan. Ordinance No. 024, 2010, Appropriating $350,000 from Prior Year Reserves, Committed to Police, in the Capital Expansion Fund for Crossroads Safehouse, Adopted as Revised on First Reading The following is staff s memorandum for this item. "EXECUTIVE SUMMARY In the fall of 2009, Crossroads Safehouse requested assistance from the City in funding the renovation of its new, expanded domestic violence shelter. Council directed staff to investigate. options for funding Crossroads. Following further scrutiny of HUD regulations, a professional appraisal of the existing shelter (which is owned by the City), a review of Crossroads'financials and business plan for its new facility, and an evaluation of the City's capital improvement expansion fees the following is recommended: 1. That the City Council appropriate $350, 000 from Police Capital Improvement Expansion Fees for the renovation and construction of Crossroads' new facility; and 2. That the sale of the existing Safehouse facility be deferred until at least 2014, at which time existing obligations to HUD will be fulfilled, the City will own the building free and clear, and Council can formally consider the option of selling the building and using a portion of the revenues to repay the Police Capital Expansion Fund. BA CKGR O UND/DISC USSION In the fall of 2009, Crossroads Safehouse requested 5500, 000 in City funding to be used for the renovation of Crossroads' new regional facility. , City Council discussed this request at length during the 201012011 City budget hearings and directed the City Manager to investigate funding options and bring forward a recommendation at the earliest date possible. 166 March 2, 2010 Since that time, staff has analyzed information and looked at the feasibility of various funding options. The City owns the existing Safehouse facility and leases it to Crossroads for $1/year. At the time of Crossroads' initial funding request, the suggestion was made that the City sell the facility and use the proceeds for the new regional facility. However, the purchase and upgrade of that building has been funded by Community Development Block Grants (CDBG) and, as a result, the use and sale of the facility fall under a number of Housing and Urban Development (HUD) regulations. Much effort has gone into discerning which HUD regulations would apply, were the City to pursue this option, and just what, if any, equity the City might have in the existing facility. In addition to analysis of the HUD regulations, staff has: completed a review of Crossroads' financial status, including past audits, projections for the new expanded facility, and capital campaign contributions and pledges to date • toured the new facility and analyzed the renovation plans and budget hired a professional real estate appraiser to assess the value of the existing City -owned facility currently occupied by Crossroads. The following summarizes the findings from the analysis 1. Crossroads currently has sufficient funding and has planned for ongoing funding of the expanded facility, including increased operational expenses. 2. The renovation plans and budget for the expanded facility are well founded, thorough, and based on sound practices. 3. The real estate appraisal, of the existing facility indicates the market value of the property ranges from $556, 000 fora "quick sale" to $1.16 million. This value is based on the market for private group homes and includes analysis of comparable sales both locally and along the entire Front Range. Most contracts would probably be contingent upon approval of a proposed new use through the City's land use requirements. 4. CDBG monies are expected to be invested in real propertyfor at least five years, after which time the CDBG investment is considered to have served its use and the activity is "closed out. " In the case of the current Crossroads facility, the closeout of the activity will occur in 2014. This means that: a. If the property is sold prior to 2014, the entire value of the property (minus a small amount the City put into it for rehabilitation) must be returned to the CDBG program. b. If the property is sold after 2014, the entire proceeds from the sale of the property would go to the City. 167 March 2, 2010 5. The question was raised as to whether equity in the existingfacility can be transferred to the new facility. The short answer is that this is not possible without first selling the existing facility. If the building is sold prior to 2014, the proceeds from the sale would be returned to the CDBG program and then distributed through the CDBG open competitive process for "eligible activities. " Crossroads could apply for funds through the CDBG competitive process. Staff also explored whether the City could lend Crossroads money for the renovation of the new facility and then use proceeds from the sale ofthe existing building to pay the City back. However, CDBG funds are prohibited from being used to pay off existing loans; this is not an option if the building is sold before 2014. 6. In the case of Crossroads Safehouse, there is a clear nexus between the Council 's goals for a safe community, the services provided by Crossroads, the need for a larger facility for those services, and the mission of Police Services. Based on the above findings, staff is recommends the following: First, that $350, 000 be appropriated for the construction and renovation of the new Crossroads facility usingfunds from the Police Capital Expansion Fee balance. Crossroads initially requested $500, 000 from the City; however, the new facility will draw clients from across the state. This recommendation takes into consideration the percentage of Fort Collins residents that will be served. This contribution of $350, 000 would be contingent on Crossroads raising 90% of the total needed for the capital campaign prior to beginning construction. Secondly, staffrecommends that the marketing and sale of the existing Safehousefacility be deferred until 2014 and reevaluated at that time. There are several reasons for this: • By late 2014 the community will have received its benefit from CDBG program funds and thus the entire equity of the building will be available to the City. • The economic climate and real estate market is expected to improve in the comingyears; the City will likely be able to sell the building at a higher price than possible in today's market. • It will be very difficult to market the property while Crossroads occupies it due to security concerns. The address of the Safehouse is confidential and cannot be advertised to potential buyers using conventional marketing techniques. • If the building is marketed now, there is the risk of having a contract on the building and nowhere for Crossroads to move in the event its capital campaign does not progress on the planned timeline. Crossroads does not have funds to pay rent to a new owner. • The community's needs will continue to evolve in the coming four years and so will the Council's policies around meeting those needs. As the fall of 2014 nears, Council can assess options and decide what course of action to take. It may make sense to sell the building at that time and use a portion of the revenue to repay the Police Capital Expansion 168 March 2, 2010 Fund. Another option might be to utilize the building for some other City or community need. In the meantime, staff will explore alternatives for interim use of the building once Crossroads has vacated it. Staff believes this is a good solution for the City and the community. FINANCIAL IMPACT The December 31, 2009 balance in the Capital Expansion Fund reserve for Police is estimated at S1, 803, 000. These funds are collected when new development occurs and are used to help pay debt service on the new Police building. Should Council wish to appropriate $350, 000 in one-time funds for Crossroads' new facility, staff recommends it be taken from this funding source. SUSTAINABILITY. ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS From an economic standpoint, these recommendations strengthen the partnership that the City and Crossroads Safehouse have had for over 30 years. The move to the new facility will also open up a number of options for use or sale of the existing facility. The plans for the new Safehouse have received national recognition for innovative environmental design; it will be the first "green" domestic violence shelter in United States. The public purpose served by this expenditure is clear. In 2009, 436 women and children were sheltered at the Crossroads'Safehouse for a total of 8,553 nights of housing. An additional 138 individuals were turned away because the shelter was full. The expanded facility will enable Crossroads to serve all those in need. It will serve not only Fort Collins residents but others from the region and across the state. " City Attorney Roy read language changes made to Ordinance No. 024, 2010. Tess Heffernan, Policy and Project Manager, stated the City has owned the existing Crossroads Safehouse facility since 1979, and rents it to Crossroads Safehouse for $1 per year. The facility is no longer adequately sized for its needs and the organization has been gifted a new building. Crossroads asked the City for $500,000 to put toward its capital campaign for renovations of the new facility. This Ordinance is a result of Council direction to investigate funding options for Crossroads, Because Community Development Block Grant (CDBG) funds have been used for the existing facility, it falls under HUD regulations which will not allow the existing building to be sold until the fall of 2014 without putting all of the proceeds from the sale back into the CDBG program. An appraisal on the existing, City -owned building showed it might be worth as much as $1.16 million, given the appropriate market. Staff recommends that Council consider appropriating $350,000 for the new facility from the Police Capital Expansion Fee balance and defer the sale of the existing facility in order realize the full value of the sale in 2014. March 2, 2010 Eric Sutherland, 3520 Golden Currant, expressed concern about the City's priorities with respect to lending $5.2 million to build the RMI2 facility. Funding the new Crossroads Safehouse facility should be a priority. Shane Miller, 4325 Mill Creek, requested a financial analysis of the number of crimes that might be deferred or prevented by this facility. He expressed support for Crossroads and asked if another use for the existing facility would be allowed by CDBG until it is sold. Councilmember Kottwitz asked if Crossroads was financially prepared to take on the operations and maintenance of the new facility without future City involvement. Heffernan replied in the affirmative. Councilmember Kottwitz asked what the Police Capital Expansion Fee could fund. Atteberry replied it is an impact fee paid by new business and residential development and the fund has not been used for operating expenses but for capital improvements within Police Services. City staff believes this is a reasonable use of the funds and noted they could be repaid with proceeds from the sale of the existing building. The existing building is planned to have an interim use between now and its sale. Councilmember Kottwitz asked if the Police Capital Expansion reserves would be depleted should Council approve this appropriation and what will be the remaining balance. Heffernan replied the balance of the fund, as of the end of 2009, was $1.8 million. Councilmember Troxell clarified Crossroads needs to have written commitments for 90% of its monetary needs prior to having access to the $350,000 from the City. He asked where Crossroads is in the process of fundraising. Vicki Lutz, Crossroads Executive Director, replied Crossroads has raised 76% of the $5.3 million of its capital campaign. Councilmember Roy asked for information regarding how residents could make private donations to Crossroads. Ms. Lutz replied the Crossroads Outreach Center is located at the corner of Myrtle and College. Councilmember Troxell asked about the schedule for the new facility. Lutz replied they are currently removing asbestos and gutting the building and hope to have funding for construction beginning in May. Councilmember Ohl son made a motion, seconded by Councilmember Roy, to adopt Ordinance No. 024, 2010, as revised, on First Reading. Councilmember Roy expressed support for Crossroads and stated he would be supporting the motion. Councilmember Kottwitz thanked staff for finding the money from an appropriate source. 170 March 2, 2010 Councilmember Poppaw expressed gratitude to Crossroads and stated the residents who use the services deserve a safe facility. Councilmember Manvel expressed support for Crossroads and the service it provides to the community. Mayor Hutchinson expressed support for the item and use of the reserve funds. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Items Relating to Medical Marijuana, Adopted as Revised on First Reading The following is staff s memorandum for this item. "EXECUTIVE SUMMARY A. First Reading of Ordinance No. 025, 2010, Adding an Article to Chapter 15 of the City Code Governing the Licensing, Location and Operation of Medical Marijuana Dispensaries. B. First Reading of Ordinance No. 026, 2010, Making Amendments to the City Land Use Code Relating to Medical Marijuana. City staff has prepared two ordinances regulating medical marijuana businesses for Council's consideration. Second Reading of these ordinances is scheduled for March 16, 2010. The first proposed ordinance establishes a licensing process for all medical marijuana businesses as well as location requirements for medical marijuana dispensaries (MMDs) and their associated cultivation sites, and requirements governing the operation of these facilities. The regulations also address the cultivation of marijuana by patients and primary caregivers who serve no more than one patient and do not constitute an MMD. The second ordinance provides zoning regulations for medical marijuana businesses. The overall purpose of the regulations that would be imposed by the ordinances is to protect the rights of patients and primary caregivers as afforded by Amendment 20 and to also protect the public health, safety, and welfare of the community. The uniqueness and newness of this industry set it apart from other licensed business models and these .regulations focus on serving the community as a whole, and not on protecting particular business models. A moratorium on the issuance of new licenses to medical marijuana businesses went into effect on December]], 2009 and is scheduled to expire on March 31, 2010. If approved on Second Reading as scheduled, the ordinances would take effect prior to the expiration of the.moratorium. 171 March 2, 2010 BA CKGR O UND/DISC USSION Regulating the medical mar�juana industry is a unique challenge for the City. Marijuana use, production, and sale is illegal under federal law, and the State of Colorado has not yet created a framework to regulate the medical marijuana industry. In this environment the medical marijuana industry has grown exponentially in a very short time. The number ofauthorized medical marijuana patients has grown from S, 000 in March 2009 to an estimated 60, 000 today. The number of medical marijuana businesses has grown in numerous Colorado communities to meet this increasing demand and in the past year the number of medical marijuana businesses issued sales tax licenses in Fort Collins has increased from 3 in 2009 to 95 currently active. This is a very new industry for local government to regulate, and for this reason the ordinance proposed by staff is different from other local business regulations. While some of the components are borrowed from the licensing ofpawn shops and liquor establishments, many of the components are unique to this use. Staff has attempted to provide a framework that establishes a clear and legal method for people to provide and consume medical marijuana while curtailing unlawful use and guarding against the secondary effects of MMDs. Staff has researched this issue, collected public input, and considered the concerns of patients, primary care -givers, dispensary operators, other business people and neighborhood residents. Staff believes that local regulations are needed to meet the unique aspects of this industry while addressing larger community concerns. The approach proposed by staff is innovative in relation to other local jurisdictions in regulating areas that are important to our city. Key Definitions Some of the definitions in the proposed ordinances are taken from Amendment 20 or other sources. Others have been developed by staff in order to implement the regulatory approach that staff is recommending, which is different in a number of respects from other models that were reviewed. For example, the term "medical maryuana business " has been developed to capture all components of a medical marijuana operation including, cultivation, delivery, and retail sales and operations. The terms "medical maryuana dispensary" and "medical marijuana cultivation facility" are also newly defined terms that are used in the regulations to address individual aspects of the business. License Requirements As discussed at the February 9, 2010 work session, an extensive licensing process is proposed as the first component of the regulations. Other requirements include payment of an application fee and an annual license fee. The fees would cover costs associated with the background check, zoning review, mapping required to determine ifseparations are met, application coordination, and routing to other departments. The initial non-refundable application fee is estimated to be approximately $.500. �If the applicant meets all application, licensing, and zoning requirements, the proposed licensed premises would be inspected and, upon approval, an annual fee of approximately $700 172 March 2, 2010 would be collected. The purpose of this fee would be to cover the cost of compliance checks by Police Services and other applicable City departments each year. The first step in the licensing process would be to conduct a background check on the applicant, manager, and all of the financial interest holders in the proposed medical marijuana business. Applicants would have to be at least 21 years of age. No license would be issued to persons who, within the last ten years, have been released from anyform of court supervision for a felony criminal conviction or any crime involving fraud or intent to defraud, or to a person who has had an medical marijuana business license revoked or who has submitted anyfraudulent information in connection with the application. Prior to issuance of the license, the proposed premises would be inspected for compliance with all building and fire codes. In order to ensure compliance with all applicable regulations, no person or entity would be licensed to operate more than three local medical marijuana businesses. All medical marijuana businesses operating in the City would have to be licensed, even if they are just delivering to patients in the Cityfrom an out-of-town business establishment. City sales tax would be collected on all such transactions. Inspections Licensed premises, including cultivation facilities, would be subject to inspection by both Police Services and any other department concerned with compliance issues. Books, records, and inventory would need to be made available. At no time could the City release or make public any confidential record of the state, including patient information, except as otherwise required by law. Location and Land Use Code Requirements The City's Land Use Code (L UC) will be amended to specifically identify MMDs as a permitted use in those zone districts where MILIDS are considered to be compatible with neighboring uses. Staff recommends that the various sections of Article 4 of the LUC be amended by adding a medical marijuana dispensary to the list ofpermitted Basic Development Review uses in the Downtown (D), River Downtown Redevelopment (RDR), Community Commercial (CC), Community Commercial - North College (CCN), Community Commercial-Poudre River (CCR), Commercial (C), and Service Commercial (CS) zones. Cultivation facilities will be limited to Industrial (I) zones. In addition to the zoning designations, staff is recommending separation requirements be included in the licensing regulations. The purpose of these is twofold. First, the 1, 000foot separation requirement from other MMDs is intended to avoid "clusters" of MMDs so as to minimize their cumulative impact on any particular area of the community. Second, community feedback and model ordinances from other communities suggest that separation requirements from such uses as schools, places of worship, parks and recreation areas are advisable because of the concern that exposure ofyouth to MMDs could decrease their perception of harm related to the use of marijuana or other drugs. 173 March 2, 2010 The home occupation regulations in Section 3.8.3 of the LUC currently allow medical marijuana businesses to operate from dwelling units. The current regulations prohibit retail sales activities of medical maryuana products on the premises, but do not prohibit the storage of inventory or the cultivation of marijuana on the premises. Based on public input received during the moratorium and concerns for the safety of the home occupation license holder and neighbors, staff believes that neither the keeping of inventory nor the cultivation activities associated with a medical marijuana business are appropriate uses ofproperty in a residential neighborhood. In the proposed LUC Ordinance, those persons who were issued a home occupation license prior to the effective date of the moratorium will have to modify their business activity, if necessary, so that the dwelling unit is used only as a business office. The Home Occupation license will not be renewed at the time of its expiration. Operations The following requirements would apply to the MMDs. • Each dispensary would have to be operated by the licensee or a designated manager. • On -site sales would be allowed only to patients and primary caregivers. Sales could include marijuana in any usable form, starter plants, seeds, paraphernalia, and other retail merchandise. No mature marijuana plants could be sold or maintained at the MMD. Quantities of maryuana sold to patients or primary caregivers would be limited to amounts permitted under Amendment 20 for personal medical use, with a limit of two ounces per customer per week. • Access to the licensed premises would be limited to those lawfully entitled under Amendment 20 to possess and use medical marijuana, as well as others whose presence is reasonably necessary to conduct business, assist patients, or repair, improve or inspect the licensed premises. • Food products containing marijuana would have to contain warning labels explaining legal limitations on possession and use. If the food has not been inspected by state or county health officials, the label would have to so indicate. • No on -site consumption of marijuana would be permitted. • No on -site cultivation of maryuana plants would be permitted. • Security requirements would include safes and video cameras. • Hours of operation would be limited to 8AMto 8PM. 174 March 2, 2010 Detailed transaction records would be required, and books and records would be subject to inspection by the City to ensure compliance with applicable regulations. All normal Sign Code requirements would have to be met. In addition, ifthe term "marijuana" or an equivalent symbol (e.g., marijuana leaf) was used on a sign, or in any advertising, it would have to be preceded by the word "medical. " Limitations on Cultivation Sites The following would apply to cultivation facilities: • Cultivation facilities would be allowed only in the Industrial zone. • To the extent permitted under the Colorado Open Records Act, the location of the site would not be made available by the Cityfor public inspection. • The cultivation site would have to be operated by the licensee or by a primary caregiver employed by the licensee. • No signs indicating the nature of the operation would be permitted. • No outdoor cultivation would be allowed. • No on -site consumption or sales would be allowed. • Marijuana grown at the site could be distributed only through the retail outlet of the same MMD or delivery business. Limitations on Cultivation by Persons Exempt from Licensing Patients andprimary caregivers who are exemptfrom licensing would be allowed to cultivate, grow or process marijuana with the following restrictions: • No outdoor growing. No more than 12 marijuana plants may be grown, with a maximum of 6 being mature. No patient or primary caregiver may have more plants than they are entitled to possess under Amendment 20. Grandfathering At the February 9, 2010 work session, a majority of Council requested bringing forward a grandfathering option that would make all of the proposed regulations effective immediately except 175 March 2, 2010 the new location requirements. Those would not apply to existing medical mar�juana businesses until Council decides by ordinance that they should apply. The purpose of delaying that decision would be to determine two things: a. whether the City's other medical marijuana business regulations and any new state laws have significantly reduced the number of existing MMDs that would not meet the new location requirements; and b. how harmful it would be to grandfather those that are left. Pending that decision about grandfathering, no new medical marijuana businesses would be allowed to submit an application for a license. The medical. marijuana businesses that were established prior to the effective date of the ordinance would need to apply for a license and pay the application fee before April 30, 2010. Those that fail to apply by that date and those that apply but are denied licenses because they do not meet the non-locational requirements (such as the background check) would need to cease operations. Those that meet the licensing requirements would be issued a provisional license. They would not have to pay the $700 annual license fee unless and until Council decides that they can remain in operation at their current location. Once Council decides whether to grandfather existing businesses, applications will be accepted for new businesses. FINANCIAL IMPACT The medical maryuana regulation program is intended to be self -funding. Staff has considered the time and costs involved in medical marijuana business licensure and has estimated the fees accordingly. In an effort to save applicants money, the fee structure has been divided into two parts. The initial application fee which is presently estimated to be $500, would be due at the time of submittal. This fee would cover the estimated costs of administrative processing, zoning, location, and mapping research as well as background checks. If the application proceeds, staff would then perform on -site inspections of all licensed facilities. Prior to issuing the license, a second fee of $700 would be due. This fee would cover the anticipated costs of annual inspections, including compliance checks throughout the year. It would be charged annually upon renewal of the license. The amount of both these fees could be adjusted as deemed necessary by the City Manager but the amount of the fee would not exceed estimated costs. SUSTAINABILITY.• ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS As noted above, the fee structure has been estimated to cover staff time and out-of-pocket costs. The proposed regulations also take into consideration local business concerns regarding clustering and appearance issues that some feel could deter redevelopment. While some will argue that not allowing outdoor cultivation misses a sustainability aspect, communityfeedback and stafffindings show the risks outweigh the benefits. " 176 March 2, 2010 City Manager Atteberry thanked City staff for work on this item. ' City Attorney Roy discussed revisions to the Ordinance relating to separation requirements, noting they pertain only to medical marijuana dispensaries, not cultivation facilities. The goal of the regulations is to strike a balance between the implementation and intent of Amendment 20, to accommodate and allow for the use and possession of medical marijuana by patients and primary caregivers. The regulations are also designed to protect the safety and security of those persons as. well as the general public and to acknowledge the fact that marijuana is still an illegal, controlled substance under federal and state law. Ginny Sawyer, Neighborhood Administrator, discussed the provisions of the Ordinance noting they include a licensing process, zoning and separation requirements, and retail operation and cultivation facility requirements. Licenses, which will require an application fee and annual fee, will be required for all medical marijuana businesses, including both retail and cultivation facilities. Individual patients or primary caregivers with only one patient will not require licenses. License fees will fund City staff requirements. Background checks of the applicant, designated manager, and all interest holders will be required. Licenses would not be issued to any person convicted of a felony or any crime related to fraud or distribution of a controlled substance within the last 10 years or to any person or entity which has had a medical marijuana business license revoked or has submitted false information. Dispensaries would be allowed in seven zones, cultivation -facilities would be allowed only in the I -Industrial zone and home occupation licenses would only be granted for a home office, not for on -site growing or storage. Sawyer discussed separation requirements between dispensaries and schools, recreation facilities, parks, places of worship, and other dispensaries and noted sales would be limited to 2 ounces per patient per week. Sawyer discussed the cultivation facility provisions and public outreach program which included interviews, individual meetings, focus groups, and an open house. City Attorney Roy stated the issues receiving the most feedback were separation requirements, the extent to which these businesses should be allowed in residential areas, and whether the exemption for small primary caregivers is adequate or should be broadened to include primary caregivers with two, or up to five, patients. Tim Gordon, Medicinal Gardens, 420 South Howes Street, asked that separation requirements be reduced to 500 feet and include only schools. Scoot Crandall, Team Fort Collins Executive Director, expressed concern regarding health issues resulting from marijuana use. Russ Orsbom, 420 South Howes Street, expressed support for medical marijuana. Dr. Bruce Cooper, Medical Director of the Health District of Northern Larimer County, stated medical marijuana should be tightly regulated and expressed concern regarding public health and safety issues related to cultivation and dispensaries in residential areas. 177 March 2, 2010 Alfred Reaud,.1104 Columbine Court, opposed the 1000 foot separation requirement regarding churches and expressed concerns relating to patient privacy. Alan Donnigan, 3161 Birmingham Drive, opposed cultivation facilities in residential areas. Michael Harmon, 315 Gordon Street, stated he is a medical marijuana patient and expressed support for the regulations. Jim Tilmant, 5703 Pebble Beach Court, expressed concern that the Colorado constitutional guarantees regarding medical marijuana have been ignored. Donna Lawson, 346 East Mountain, stated she is a caregiver and co-owner of a dispensary. She expressed support for regulations but asked Council to re -consider the separation requirements. Dr. Nancy Smith, 420 South Loomis, Center for Family Care Director, expressed concern regarding the effect of medical marijuana dispensaries on the community's youth. David Mabsor, 601 Mansfield Drive, expressed support for medical marijuana. Dr. Donald Beard, 1216 Morgan Street, retired pediatrician, expressed support for regulation. Kirk Scramstad, 821 Colorado Street, expressed concern regarding cultivation regulations. Ray Czaplewski, 2012 Huntington Circle, expressed support for the regulations. Travis Cutbirth, 420 South Howes, Medicinal Gardens, encouraged Council to consider 500 foot distance requirements for entities other than schools and discussed possible residency requirements for primary caregivers. Eric Sutherland, 3520 Golden Currant, expressed concern about the effects of marijuana and alcohol on individuals and communities. Ian Leverette, Compassionate Outreach and home occupation license holder, expressed concern regarding fear taking over decision making. Joe Dice, The Grow Shop, expressed concern regarding provisions related to criminal records. Amanda Broz, 802 '/2 Smith Street, expressed concern that the provisions stigmatize medical marijuana patients. Dori Mann, 1801 Creekwood Drive, expressed concern that the 1000 foot separation requirement is not enough. Jamison Coppola, Front Range Baptist Academy, stated the separation requirements should be at least 1000 feet. 178 March 2, 2010 Bob Powell, Fort Collins resident, expressed concern regarding the unintended consequences of Amendment 20. He urged Council to adopt the regulations. Rob Haas, Fort Collins resident, asked Council to limit the number of plants and expressed concern regarding degradation of neighborhoods. Dr. Michael Smith, 420 South Loomis, expressed support for the regulations. Lloyd Walker, 1756 Concord Drive, expressed support for the regulations and asked that MMDs not be included as acceptable home occupations. Nick Dice, owner of a medical marijuana dispensary, stated several of the regulations are too stringent. Mike Moeckler, 1740 South College, owner of Campus East Dispensary, expressed concern regarding patient confidentiality. Matthew Burke, Fort Collins resident, expressed concern that several of the regulations are too strict. Sandra Dennis,1740 South College, Campus East Dispensary employee, expressed concern that the regulations are too restrictive. Sam Leischer, Fort Collins resident, expressed support for this new industry and stated the regulations are too restrictive. Kim Lurbe, owner Nature's Medicine, expressed concern that some of the regulations are too restrictive. Scott Friedman, caregiver and grower, stated the 12 plant maximum for in -home growth is not enough but expressed support for other regulations. Shane Miller, 4325 Mill Creek, stated marijuana has low risks relative to most ingested medicines. He discussed statistics relating to medical marijuana. Charles (no last name given), stated he is a new Fort Collins resident and discussed the relationship between medical marijuana and fitness. Monte Barry, 415 South Howes Street, stated the 12 plant limit and separation requirements are too. restrictive. Steven (no last name given), asked that regulations be placed on doctors who issue medical marijuana cards. 179 March 2, 2010 Councilmember Kottwitz asked if medical marijuana falls under DUI and DWAI regulations. Jerry Schiager, Police Services, replied driving under the influence of medical marijuana is illegal. Councilmember Kottwitz asked if medical marijuana providers need to follow HIPPA. City Attorney Roy replied state confidentiality requirements are at issue and the City's proposed regulations do not violate those. Councilmember Kottwitz asked about regulations for medical marijuana in food. Schiager replied the proposed regulations require a warning label that the food products have not been inspected and contain marijuana. Councilmember Kottwitz asked what would happen to existing dispensaries that do not meet separation requirements from one another. Schiager replied staff would return to Council a few months after commencing the licensing program with information regarding violations of separation requirements. Council would then be charged with resolving those issues. Councilmember Kottwitz asked if it is possible to move growing plants from one facility to another. Schiager replied soil -potted plants would likely be easy to move, though hydroponic systems may not. Councilmember Kottwitz asked why outdoor growing is not allowed under the regulations. Schiager replied it is for security reasons and noted the fencing requirements would likely violate the City's fence code. Councilmember Kottwitz asked about the hours of operation limitations. Schiager replied the limitations prevent an evening sales and use atmosphere. Councilmember Kottwitz asked what is funded by the application and annual fees. Schiager replied approximately $100 per application fee pays for police staff time for background checks, and approximately $400 per annual license renewal fee provides staff time for inspections and compliance checks. Councilmember Ohlson asked why a records check would include a list of patient names. Schiager replied the local interest is in verifying the transactions to individuals. Councilmember Ohlson asked if the City regulates participation in any other businesses based on prior criminal records. Teresa Ablao, Assistant City Attorney, replied other regulated industries, including alcohol and pawnbrokers, discuss good moral character which references prior criminal records as a whole. Councilmember Ohlson asked why proposed regulations for this industry include no prior convictions for the past 10 years. Ablao replied the timeframe for alcohol licenses could be as much as a lifetime. City Attorney Roy stated the regulations are aiming to be less restrictive and more objective in terms of limitations regarding criminal history. 180 March 2, 2010 Councilmember Ohlson asked if the proposed application and renewal fees are similar to those of other businesses. Ablao replied the local fees for liquor licenses are approximately the same. Councilmember Manvel asked if the 10 year requirement was to be from the date of conviction or the date of release. City Attorney Roy replied it is from the last date of court -ordered supervision. Councilmember Ohlson asked why the regulations do not allow growing in MMDs, and, if the regulations are not going to allow that, why more time cannot be allowed to move those aspects of the business. Schiager replied that regulation came from discussions with MMD operators and is, due primarily to security concerns. The timeline regarding moving the growing operations is somewhat flexible and dependent upon Council's decision. City Attorney Roy asked that Council provide clear direction on which regulations grace periods are desired. Councilmember Ohlson expressed concern that, given the separation requirements, there is little to no land available for MMDs or cultivation facilities. Steve Dush, Current Planning Director, replied there are 408 acres of total available land within the City that would be available for MMDs. Councilmember Manvel expressed concern that MMDs would be allowed in zones which, though not solely residential, may contain residences, such as the Old Town North area. City Attorney Roy noted the grandfathering decision and decision regarding separation requirements will both play a role in determining the number of facilities the City can and will accommodate. Councilmember Manvel noted there are few existing available buildings in the I -Industrial zone for cultivation operations and expressed concern that new buildings may need to be constructed. Dush replied the vacancy rate was not examined, just the available acreage. Councilmember Manvel asked how the limited access provision would be enforced. Schiager replied there would be enforcement likely based upon complaints. Mayor Hutchinson suggested Council make a motion, then consider amendments regarding separation requirements, exemptions regarding the number of patients for primary caregivers, a variance to the amount of time that needs to have passed since an applicant's sentencing for those with criminal records, and the amount of time for businesses to come into compliance. Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. '025, 2010, as revised, on First Reading. Councilmember Manvel suggested the separation requirement remain at 1000 feet from schools and be changed to 500 feet for all other protected interests, such as churches and recreation facilities, and between MMDs. Councilmembers Kottwitz and Poppaw expressed concern regarding separation requirements from childcare centers. , 181 March 2, 2010 Mayor Hutchinson suggested staff prepare maps showing 1000 foot separation from schools, child care facilities, and places of worship and 500 feet from recreation areas, rehabilitation facilities, residential zoning, and between MMDs. Councilmember Ohlson expressed concern that some of these separation regulations are essentially a "back -door" way to push MMDs out of the City altogether. Councilmember Poppaw stated her goal is to protect children and the aspects of the community which existed prior to MMDs. She suggested the 1000 foot separation from recreation facilities remain. Dush stated there would be eight existing MMDs that would meet the separation requirements, as proposed. Should the distance drop to 500 feet, there would be 22 existing MMDs that would meet the requirements. There are currently 95 licensed MMDs, though they may not all be in operation. Councilmember Ohlson suggested primary caregivers be allowed to have five or less patients rather than just one, but only be allowed to grow the same number of plants in -home. Schiager noted the home occupation license would come into play with a licensed MMD that would grow off -site and operate its office from home. City Attorney Roy clarified that, with the existing proposed regulations, primary caregivers would be allowed to grow up to 12 plants in -home and would not be required to hold a medical marijuana business license or home occupation license if they are providing only for themselves or up to one patient. The issue would be increasing the number of patients to up to five. Councilmember Manvel asked if caregivers could purchase medical marijuana from a grower and sell it to their patients. Schiager replied in the affirmative. Councilmember Ohlson made a motion, seconded by Councilmember Roy, to amend Ordinance No. 025, 2010, to allow primary caregivers to have up to five patients in their homes without triggering the need for a home occupation or medical marijuana business license and still limiting the number of plants allowed in -home to 12. Councilmember Poppaw asked for a report regarding the increase in traffic which would result from increased patient numbers. Dush replied caregivers often deliver medicine but estimated an increase -of eight trips per day. Councilmember Troxell expressed concern about the potential increase inpatient numbers and stated he would vote against the amendment. Peter Barnes, Zoning Administrator, stated home occupations are allowed in all zones throughout the City and vehicular trips to and from those businesses are not regulated. 182 March 2, 2010 Schiager expressed concern that regulating in -home primary caregivers, particularly if they have up to five patients, would be difficult given they are not subject to home occupation licenses or medical marijuana business licenses. Councilmember Ohlson asked if three unrelated persons living in the same home could all legally be caregivers. Schiager replied that situation is legal but they would still only be able to grow 12 plants in the dwelling unit. Councilmembers Ohlson and Roy withdrew their motion to amend Ordinance No. 025, 2010. Councilmember Troxell noted individuals in the medical field cannot have a felony criminal record and be licensed. He expressed support for the criminal record aspects of the regulations as written. Councilmember Roy made a motion, seconded by Councilmember Ohlson, to amend Ordinance No. 025, 2010, to allow citizens to participate in the medical marijuana profession five years after the end of any court -ordered sentence for a felony conviction. Councilmember Ohlson stated he would like to see these provisions be changed to be a bit more subjective, similar to the Liquor Licensing Authority. Ablao replied the regulations for medical marijuana businesses were not written that way because medical marijuana business licensing does not provide for a hearing, hearing officer, or licensing authority to make those decisions. The vote on the motion was as follows: Yeas: Roy. Nays: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and Troxell. THE MOTION FAILED. Councilmember Kottwitz stated she would like to allow MMDs more time to meet the regulations than the proposed April 30 date. Councilmember Poppaw asked how grandfathering would impact the decisions made with the Ordinances. City Attorney Roy stated the two time issues include the April 30 deadline for existing sales tax license holders to apply for the medical marijuana business license. Once granted a medical marijuana business license, the business is immediately subject to the other regulations. The grandfathering issue comes at the end of this process when it will be determined how many existing MMDs qualify for a new license, depending upon state regulations. Should an existing business qualify for a new license, Council will.be able to determine if it is going to grandfather that business despite the separation requirements. Councilmember Kottwitz asked that an expanded timeframe for relocating cultivation facilities be researched prior to Second Reading. 183 March 2, 2010 Councilmember Manvel asked about the provision to keep the locations of grow sites out of the public record. Schiager replied there would be an application page noting the property address that would be kept confidential. City Attorney Roy replied the information would be kept confidential unless otherwise required by law. Councilmember Ohlson stated he would support the motion to adopt Ordinance No. 025, 2010, on First Reading but expressed concern that, if existing businesses are not grandfathered, the 1000 foot separation requirements may be too stringent. Councilmember Roy expressed gratitude to City staff for working with all interested parties and thanked citizen participants. He expressed disappointment that fear has been a driving factor in discussing the item. He stated he would not support the motion. Councilmember Kottwitz stated the purpose of the regulations is to protect the community and ensure patients receive the best, most economical treatment. Councilmember Poppaw thanked City staff and Council for the discussion. Councilmember Troxell commended staff and the fact that the regulations take the City's youth into consideration. Councilmember Manvel thanked staff and expressed concern regarding separation between MMDs and residences. Mayor Hutchinson expressed support for the work done to achieve the overall goal of protecting the public health, safety, and welfare as well as the rights of patients and their primary caregivers, while discouraging the unlawful use and distribution of marijuana. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and Troxell. Nays: Roy. THE MOTION CARRIED. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 026, 2010, on First Reading. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw and Troxell. Nays: Roy. , THE MOTION CARRIED. Extension of the Meetine Councilmember Manvel made a motion, seconded by Councilmember Roy; to extend the meeting past 10:30 p.m. Yeas: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. 184 March 2, 2010 THE MOTION CARRIED. Items Relating to the FC Bike Library Program, Adopted on Second Reading The following is staff s memorandum for this item. "EXECUTIVE SUMMARY A. Resolution 2010-017 Repealing Resolution 2010-007 and Authorizing the Mayor to Enter into .,, an Intergovernmental Agreement with the State of Colorado Department of Transportation for the Purpose of Obtaining a Congestion Mitigation and Air Quality Grant in Support of the FC Bike Library Program. B. Second Reading of Ordinance No. 011, 2010, Appropriating Unanticipated Grant Revenue in the Transportation Services Fund to Be Used for the 2010-2011 Fort Collins Bike Library Program. The Colorado Department of Transportation (CDOT) has revised the FC Bike Library funding contract with the City of Fort Coll ins for 2010-11. Originally, CDOT had programmed the contract for both fiscal years 2010 and 2011. However, on March 1, 2010, CDOT notified the Citythat it can only contract for one year at a time. Therefore, the funding contract between the City and CDOT is only for 2010 and will be amended to extend funding for 2011. This change in contract administration does not change the overall two year funding amount; it just divides it into two one year segments. The funding contract and work plan for FY2011 will be provided to City Council for review nextyear. Resolution 2010-017repeals Resolution 2010-007 to clarify the authorization granted under this Resolution is only for the year 2010 and that the amount offunding provided by the CDOT Congestion Mitigation & Air Quality (CMAQ) grant is in the amount of $82, 790. The City contracts with Bike Fort Collins, a local non-profit cycling organization, to manage and operate the Fort Collins Bike Library program which includes the continual improvement, refinement, and expansion of the Fort Collins Bike Library. Expansion includes incorporating additional bicycles and check-out stations into the FCBL program and incorporating additional community partners such as schools, businesses, and non-profit organizations. This Ordinance, unanimously adopted on First Reading on February 23, 2010, appropriates these grant funds and has been amended to reflect the funding for 2010 in the amount of $82, 790. " Stacy Lynne, 216 Park Street, expressed doubt that there is demand for bicycle rental in the City. She expressed concern regarding, the cost of snow removal on the City's trails and asked that Council not accept grants for bike programs as those are taxpayer dollars. Alfred Reaud, 1104 Columbine Court, expressed support for bicycle path snow removal and the City's trail program. Shane Miller, 4325 Mill Creek, supported the use of taxpayer monies to fund bike programs. r 185 March 2, 2010 City Manager Atteberry stated it is responsible for City staff to compete for federal and state grants for all types of uses. Councilmember Roy asked about progress regarding providing bicycles for low-income residents or those without credit or debit cards. David Kemp, Bicycle Coordinator, replied accommodations have been made for every individual wishing to rent a bike. Additionally, there is one station on the CSU campus which does not require a credit card for rentals. Councilmember Roy asked that the web page contain information reflecting that fact. Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2010-017. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and Troxell. Nays: none. THE MOTION CARRIED Councilmember Roy, made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No. 011, 2010, on Second Reading. Councilmember Manvel expressed support for the program and its expansion. Mayor Hutchinson discussed the overwhelming bicycle support in the community. The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and Troxell. Nays: none. THE MOTION CARRIED. Other Business Councilmember Poppaw asked that City staff and Council pursue registering lobbyists in the City. Adjournment Councilmember Ohlson made a motion, seconded by Councilmember Roy, to adjourn until the conclusion of the City Council work session on March 9, 2010, and reconvene at that date and time in order to consider a possible executive session for the purpose of discussing pending litigation and related legal issues with the attorneys for the City as permitted under Section 2-31(a)(2) of the City Code. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and Troxell. Nays: none. THE MOTION CARRIED. 186 March 2, 2010 The meeting adjourned at 11:50 p.m. Mayor ATTEST: City Clerk IE VA