HomeMy WebLinkAboutMINUTES-02/03/2009-RegularFebruary 3, 2009
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, February 3, 2009,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Hutchinson, Manvel, Ohlson, Poppaw, Roy, and Troxell.
(Councilmember Brown excused from Council meetings from October 28, 2008 through April 7,
2009, authorized by Resolution 2008-104.)
Staff Members Present: Atteberry, Krajicek, Roy.
Citizen Participation
John Clarke, 1505 West Prospect, stated the proposed changes to the 3-unrelated ordinance will
cause unintended consequences and the proposed changes need further public input before Council
considers the ordinance.
Matt Worthington, ASCSU member, stated students want to have input into any changes made to
the 3-unrelated ordinance but they have not been allowed a voice in the process.
Al Bacilli, 520 Galaxy Court, opposed the pay for performance philosophy the City has implemented
for its employees.
Wes Kenney, Fort Collins resident, stated the Fort Collins Symphony adds cultural and economic
benefits to the community.
Kristin Sommer, Fort Collins resident, played her flute to demonstrate how symphony music
enhances a community.
Terese Kepter, Executive Director, Fort Collins Symphony, asked Council to contribute $50,000 to
support the Symphony and to waive the fees charged at the Lincoln Center.
D.L. Roberts, 1400 Red Feather Road, Livermore, stated the CSU wind farm planned for Maxwell
Ranch violates the agreement the Maxwell family made with CSU and he did not support the
development of the wind farm.
Nina Jackson, 8530 Red Mountain Road, Livermore, stated her concerns with the information
provided by the Colorado State University Research Foundation about the Maxwell Ranch Wind
Farm. She asked for clarification of the City's functions regarding the distribution of energy
produced by the Wind Farm.
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Delores Williams, 415 Mason Court, stated the Maxwell Ranch was deeded to CSU for agricultural
use only and the proposed wind farm does not meet that requirement.
Eric Sutherland, 631 LaPorte Avenue, stated more information is needed about the Maxwell Ranch
Wind Farm, including who will be purchasing and using the energy generated.
Mark Settle, 2850 Kansas Drive, stated the occupancy limits placed on housing by the 3-unrelated
ordinance cause hardships for students and make housing unaffordable.
Shaun Reed, 3207 Killdeer Drive, CSU student, stated the 3-unrelated ordinance is unfair to students
and the process needs greater input from students.
Lisa Billings, Livermore, stated her concerns with the lack of information from CSU to residents
living near the Maxwell Ranch Wind Farm.
Don Fairbanks,830 Bonita Avenue, stated more input is needed to address the issues raised by the
3-unrelated ordinance. Any proposed changes should receive input from all affected parties,
including students.
Glen Billings, Livermore, stated CSU has not provided adequate information about the Maxwell
Ranch Wind Farm and needs to be more transparent to the public. Residents in the area of the Wind
Farm have many questions that CSU has not answered.
Katy Freudenthall, Director of Community Affairs, ASCSU, expressed concerns with moving the
discussion about the 3-unrelated ordinance to May 5, which is the week before CSU finals. She
asked if an earlier date could be chosen for the discussion.
Mary Smith, 1618 Sagewood Drive, stated trash districting has been an issue for many years and
needs to be addressed now. Trash trucks cause damage to neighborhood streets and decrease air
quality.
Tim Holt, Fort Collins resident, stated zoning in neighborhoods around the CSU campus needs to
be changed to allow for more boarding houses which would help provide affordable student housing.
Cheryl Distaso, 135 South Sunset, stated a sound test for the Buckingham neighborhood should be
scheduled in the winter as well as in the spring if the proposed Oxbow Music Venue will be used
as a year-round venue.
David Ambrose, CSU student, stated the 3-unrelated ordinance punishes students as a group and
makes it difficult to find affordable housing. Students contribute financially to the city and should
be heard in the discussion about occupancy limits.
Whitney Ruffin, 700 East Drake, stated the 3-unrelated ordinance forces students to live further from
campus and adds to traffic congestion.
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Bob Morain, 4206 Monmouth Court; stated more public input is needed on the 3-unrelated
ordinance.
Dan Palmer, Fort Collins resident, CSU student, stated more discussion with CSU students and the
community is needed to improve the 3-unrelated ordinance. Zoning regulations need to be changed
to allow more boarding houses.
Citizen Participation Follow-up
Mayor Hutchinson stated the item concerning the 3-unrelated ordinance has been withdrawn from
the agenda. The item only contained three small text changes in the ordinance and was not intended
to examine the effectiveness of the ordinance. One change addressed the issue of handling repeat
offenders, one clarified the wording of the regulation and one clarified the definition of family.
Open forums and public meetings about the ordinance will be held after the ordinance has been in
effect for two school years. The item was withdrawn to address possible unintended consequences
that would result from the text changes.
Councilmember Troxell stated a review of the 3-unrelated ordinance is needed now after it has been
in effect for two years. The review should not be delayed until two "school" years are completed.
He asked for a review of the 3-unrelated ordinance within one month.
Mayor Hutchinson stated the review will occur after two full school years,, which is the timetable that
has been in place since the ordinance went into effect. Having the review within one month does
not allow enough time for staff to provide a thorough and complete evaluation of the data now being
gathered on the effectiveness of the ordinance. Ample notice will be provided for public input when
the review begins.
Councilmember Ohlson stated the item concerning the 3-unrelated ordinance was withdrawn from
the agenda at the last minute because an issue arose that needed to be resolved. There are legitimate
exceptions in limited circumstances that need to be allowed within the 3-unrelated ordinance. Staff
needs time to resolve the issue, which means the text changes will be considered in early May. He
suggested Council either address the proposed text changes in April or wait until the fall when the
overall review of the ordinance will occur. City Manager Atteberry stated staff has been meeting
with Ms. Freudenthall and other students to gather their input into this ordinance which the City
wants to include as part of its review. There has not been any intent to exclude the students from the
process and staff is listening to their concerns.
Councilmember Ohlson asked for a timeline of the review process of the 3-unrelated ordinance to
be provided to Council and the public. He requested staff look at zoning changes to some
neighborhoods, any possible changes to the regulations regarding boarding houses and
decriminalizing noise complaint charges without decreasing the effectiveness of the ordinance.
Councilmember Ohlson asked for more information about development of the wind farm on the
Maxwell Ranch. City Manager Atteberry stated the City owns natural areas land next to the
Maxwell Ranch and has only been involved in the project as an adjacent property owner. The City
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has no land use regulatory authority over the Maxwell Ranch as it is located far north of the City's
boundaries. Council will not be involved in any decisions regarding purchase of energy generated
at the site. The Mayor might have some input as a member of the Platte River Power Authority
Board.
Councilmember Manvel stated the Larimer County Commissioners have some regulatory powers
over large electrical projects, if they choose to exercise them and those`citizens concerned about the
wind farm should contact the Commissioners. He noted staff is committed to performing sound tests
before Council considers downtown cultural district noise standards so all interested parties will
know exactly what 70 decibels means.
Councilmember Roy stated a sound test should be done both in the winter and the summer to provide
adequate information to neighborhood residents. He asked for information regarding the Fort Collins
Symphony's $10,000 debt to the City. He stated that millions of taxpayer dollars have been spent
for the open spaces by Maxwell Ranch with the intent of preserving viewsheds and he asked for
more information about the Maxwell Ranch project. He noted that pay for performance was put into
place to provide a system hold employees accountable with the City organization.
City Manager Atteberry stated he will meet with members of the Symphony organization and
provide further information to Council.
Agenda Review
City Manager Atteberry stated Item #19 First Reading of Ordinance No. 015, 2009, Amending the
City Code and the Land Use Code Relating to Occupancy Limits has been withdrawn from the
Agenda. He noted staff is working with the Town of Timnath to get an improved Exhibit 1 for Item
911 Items Relating to an Intergovernmental Agreement Between the City of Fort Collins and the
Town of Timnath and he recommended Council allow staff to substitute the new exhibit into the
agreement when it is available.
Councilmember Troxell withdrew Item #12 First Reading of Ordinance No. 013, 2009,
Appropriating Unanticipated Federal Department of Energy Grant Revenue in the Light and Power
Fund.
CONSENT CALENDAR
6. Second Reading of Ordinance No. 005, 2009, Appropriating. Unanticipated Grant Revenue
in the General Fund for the Natural Resources Radon Program and Authorizing the Transfer
of Matching Funds.
The City has received a $4,051 grant from the Colorado Department of Public Health and
Environment for continuing radon education and outreach. This grant requires a local match
of $4,051 that will be provided from the existing 2009 Air Quality Improvement Budget.
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This Ordinance, unanimously adopted on First Reading on January 20, 2009, appropriates
the grant revenue and authorizes the transfer of the matching funds.
7. Second Readine of Ordinance No. 006, 2009, Appropriating Unanticipated Grant Revenue
in the General Fund for Continuation of the Restorative Justice RESTORE Program.
This Ordinance, unanimously adopted on First Reading on January 20, 2009, authorizes the
appropriation of $15,000 from a grant received from the Bohemian Foundation for salaries
associated with the continued operation of the RESTORE Program.
8. Second Reading of Ordinance No. 007, 2009, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service on Bond Series
2008A for the Year 2009.
This Ordinance, unanimously adopted on First Reading on January 20, 2009, appropriates
the tax increment revenue in -the Downtown Development Authority Debt Service Fund for
the payment of debt service for the year 2009 to the City of Fort Collins for the 2008A
Taxable Subordinate Tax Increment Revenue Bonds.
9. Items Relating to a Volunteer Handicap Parking Enforcement Program.
A. Second Reading of Ordinance No. 008, 2009, Relating to Changes in the City of Fort
Collins Traffic Code to Implement a Volunteer Handicap Parking Enforcement
Program.
B. Second Reading of Ordinance No. 009, 2009, Appropriating Prior Year Reserves in
the Transportation Services Fund for' the Volunteer Handicap Parking Enforcement
Program.
Ordinance No. 008, 2009, will allow citizen volunteers to observe violations of handicap
parking spaces, and provide evidence of the violation to a Parking Services enforcement
officer. The officer will confirm vehicle ownership information with the Department of
Motor Vehicles and issue a citation by mail to the owner of the offending vehicle. In
Colorado, vehicle owners areprimafacie responsible for parking citations, regardless of who
was driving the vehicle. Ordinance No. 009, 2009, appropriates the funds to implement the
Program. Both Ordinances were unanimously adopted on First Reading on January 20, 2009.
10. Second Reading of Ordinance No. 010, 2009, Amending Ordinance No. 058, 2007, Which
Amended the Zoning Map of the City of Fort Collins by Changing the Zoning Classification
for that Certain Property Known as the Rigden Farm Tract A Rezoning.
This Ordinance corrects an error discovered in Ordinance No. 058, 2007, which states that
the property should not be included in the Residential Neighborhood Sign District. Adoption
of this Ordinance changes Section 2 to read that the property was to be included in the
Residential Neighborhood Sign District.
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11. Items Relating to an Intergovernmental Agreement Between the City of Fort Collins and the
Town of Timnath.
A. Second Reading of Ordinance No. 011, 2009, Approving an Intergovernmental
Agreement Between Timnath and Fort Collins Regarding Growth Management Areas
and Associated Issues Authorizing Disposition of Property as Provided Therein.
B. Second Reading of Ordinance No. 012, 2009, Appropriating $1.2 Million in Prior
Year Reserves in the Stormwater Fund and Self -Insurance Fund and Irrevocably
Pledging an Additional $800,000 in Undesignated Reserves to be Contributed to the
Town of Timnath, Colorado for Improvements to the Boxelder Overflow Project.
Fort Collins and Timnath have negotiated a proposed intergovernmental agreement (IGA)
to resolve certain differences that have arisen between them regarding a variety of planning
and growth management issues. The IGA is intended to firmly establish the Growth
Management Areas (GMA) for each municipality. In addition, the IGA authorizes the
conveyance of an easement on Arapaho Bend Natural Area for a portion of the Boxelder
Overflow Project, and the potential sale of the Vangbo Natural Areas property to Timnath.
It also authorizes a contribution by Fort Collins to Timnath's Boxelder Overflow Project.
The IGA terminates overlapping annexations by Timnath and Fort Collins in the vicinity of
Harmony and I-25. Furthermore, the IGA makes clear that the Riverwalk property, at the
southwest corner of I-25 and Harmony will stay within the Fort Collins' GMA. Both
Ordinances were unanimously adopted on First Reading on January 20, 2009.
12. First Reading of Ordinance No. 013, 2009, Appropriating Unanticipated Federal Department
of Energy Grant Revenue in the Light and Power Fund.
This project will modernize and transform a portion of the electrical distribution system in
the City by developing and demonstrating a coordinated and integrated system of mixed
distributed electric resources, including renewable generation (solar), rotary- and inverter -
based generation, and demand response methods, that will reduce peak loads on multiple
distribution feeders in the downtown area by up to 30% and deliver improved efficiency and
reliability.
13. First Reading of Ordinance No. 014, 2009, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
This Ordinance will amend Section 2-119 of the City Code to correct an error in Section 2-
119(5) that incorrectly references the "1976 Uniform Code for the Abatement of Dangerous
Buildings." Through an oversight, this previously adopted model code (no longer in effect)
which has been replaced by the 2006 International Property Maintenance Code, was
inadvertently referenced.
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14. Resolution 2009-008 Adopting the City's 2009 Legislative Policy Agenda.
Each year, the Legislative Review Committee (LRC) develops a legislative agenda to assist
in the analysis of pending legislation. The Legislative Policy Agenda is used as a guide by
Council members and staff to determine positions on pending legislation and as a general
reference for state legislators and our congressional delegation.
15. Resolution 2009-009 Authorizing a Revocable Permit to the Board of Governors of the
Colorado State UniversitySystem for Access to City -owned Property.
This permit will enable Colorado State University to acquire the City's Cable 14 TV signal
and retransmit it onto the CSU campus. Council action is required to authorize a permit for
the use of City right-of-way.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Krajicek.
6. Second Reading of Ordinance No. 005, 2009, Appropriating Unanticipated Grant Revenue
in the General Fund for the Natural Resources Radon Program and Authorizing the Transfer
of Matching Funds.
7. Second Reading of Ordinance No. 006, 2009, Appropriating Unanticipated Grant Revenue
in the General Fund for Continuation of the Restorative Justice RESTORE Program.
8. Second Reading of Ordinance No. 007, 2009, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund for Payment of Debt Service on Bond Series
2008A for the Year 2009.
9. Items Relating to a Volunteer Handicap Parking Enforcement Program.
A. Second Reading of Ordinance No. 008, 2009, Relating to Changes in the City of Fort
Collins Traffic Code to Implement a Volunteer Handicap Parking Enforcement
Program.
B. Second Reading of Ordinance No. 009, 2009, Appropriating Prior Year Reserves in
the Transportation Services Fund for the Volunteer Handicap Parking Enforcement
Program.
10. Second Reading of Ordinance No. 010, 2009, Amending Ordinance No. 058, 2007, Which
Amended the Zoning Map of the City of Fort Collins by Changing the Zoning Classification
for that Certain Property Known as the Rigden Farm Tract A Rezoning.
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February 3, 2009
11. Items Relating to an Intergovernmental Agreement Between the City of Fort Collins and the
Town of Timnath.
A. Second Reading of Ordinance No. 011, 2009, Approving an Intergovernmental
Agreement Between Timnath and Fort Collins Regarding Growth Management Areas
and Associated Issues Authorizing Disposition of Property as Provided Therein.
B. Second Reading of Ordinance No. 012, 2009, Appropriating $1.2 Million in Prior
Year Reserves in the Stormwater Fund and Self -Insurance Fund and Irrevocably
Pledging an Additional $800,000 in Undesignated Reserves to be Contributed to the
Town of Timnath, Colorado for Improvements to the Boxelder Overflow Project.
Ordinances on First Reading were read by title by City Clerk Krajicek.
12. First Reading of Ordinance No. 013, 2009, Appropriating Unanticipated Federal Department
of Energy Grant Revenue in the Light and Power Fund.
13. First Reading of Ordinance No. 014, 2009, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
21. First Reading of Ordinance No. 018, 2009, Appropriating Unanticipated Revenue in the
Capital Projects Fund for the Interstate 25 and State Highway 392 Interchange and
Improvements Project.
Councilmember Manvel made a motion, seconded by Councilmember Troxell to adopt and approve
all items not withdrawn from the Consent Calendar and to allow staff to substitute Exhibit I to the
Agreement in Item # 11. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel noted Item 97 Second Reading of Ordinance No. 006, 2009, Appropriating
Unanticipated Grant Revenue in the General Fund for Continuation of the Restorative Justice
RESTORE Program provides a great benefit to the community by holding those who shoplift
accountable for their actions.
Staff Reports
City Manager Atteberry stated City employees have earned the United Way award for the greatest
increase in actual number of employees donating to the United Way.
City Manager Atteberry stated the December 2008 sales tax collection was only 1/2% lower than
December 2007 sales tax.
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City Manager Atteberry noted all free publications have been moved from free-standing newsracks
into the condominiums provided by the DDA. A few paid publications will still be in free-standing
newsracks because the condos currently do not have the coin mechanisms needed to collect the
payments for the publications.
Mike Freeman, Chief Financial Officer, stated FortZED emerged from the UniverCity Connections
group. ZED stands for zero energy district and the idea is to create as much alternative power as the
district uses. Funding requests to the Department of Energy and the Governor's Energy Office have
been submitted to jump-start this project. The federal stimulus package will have large sums
available for smart grid projects. The partners of FortZED have put a proposal together to expand
the footprint of the district from 5 megawatts to 50 megawatts which will increase the size of the
project significantly. The proposal submitted for federal stimulus funds requests $250 million and
other funding has been identified to contribute to the district, as well. It is unknown at this time
whether any stimulus funds will be awarded to FortZED.
Councilmember Reports
Councilmember Manvel stated he has attended meetings with the Colorado Department of
Transportation regarding the North I-25 Environmental Impact Statement and long-term
transportation possibilities to provide mass transit from Northern Colorado to Denver.
Items Relating to Contracts with Platte River Power Authority, Postponed Indefinitely
The following is staff's memorandum on this item
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 016, 2009, Authorizing an Amended and Restated Organic
Contract for Platte River Power Authority.
B. First Reading of Ordinance No. 017, 2009, Authorizing an Amended and Restated Contract
With Platte River Power Authorityfor the Supply of Electric Power and Energy.
The Organic Contract between the four member cities of Estes Park, Fort Collins, Longmont and
Loveland was originally signed in 1975 and last amended in 1998. The Organic Contract forms
Platte River Power Authority. A change to the Organic Contract requires the approval of all four
member municipalities. Most of the changes to the Organic Contract are in the nature of updates
intended to reflect current organizational practices, as detailed more fully below.
In addition, staff and Platte River have negotiated changes to update the Contract for the Supply of
Electric Power and Energy and termination of the Transmission Facilities Agreement. Changes to
the Contract for the Supply of Electric Power and Energy incorporate relevant terms from the
Transmission Facilities Agreement. The most significant change to the Contract is a provision
which allows the City to develop generation resources up to 3,000 kilowatts to supply Cityfacilities;
this is approximately 60% of Cityfacilities demand. The agreement does not limit the size or ability
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of customers to install generation resources for their own use, nor for third party developers to
install generation at a customer's site.
BACKGROUND
October 28, 2008 work session
During the October 28, 2008 worksession, Council discussed both the Amended Energy and Power
Supply Contract between the City of Fort Collins and Platte River Power Authority, and the
Amended and Restated Organic Contract between the Cities of Fort Collins, Longmont, Loveland
and Estes Park.
Discussion in reference to the Energy Supply Contract centered on new language that allows the
City to develop and own generation to serve the electric energy demands of its own facilities. The
previous Energy Supply Contract limited the City's ability to self generate to zero. The revised
contract proposes a limit of one percent of the peak load within Fort Collins, which amounts to
approximately 3,000 kW of generation (about 60% of the load for all city facilities). Council
expressed concern.over the 1 % cap and asked why it couldn't be 2%, 3% or even greater. Joe
Wilson, Platte River's General Counsel, provided a detailed explanation. Previous bonds sold by
Platte River were sold with a commitment to the buyers that Platte River would be the sole provider
to the four cities. Platte River has been aware of the cities desire to support, provide, and develop
renewable resources. Discussions with Platte River's Bond Counsel resulted in an agreement that
the I %cap could be considered de minimis. At the request ofthe Utilities Executive Director, Platte
River requested information from their Bond Counsel on the potential to increase the limit on
generation for City facilities up to 10%. A copy of the response is attached. (Attachment 9)
Council also commented on a document Brian Moeck provided before the meeting detailing Platte
River's commitment to environmental concerns and stewardship. Council complimented Platte
River on its efforts and asked if language could be added to the "whereas" clauses and the
"purpose "section ofthe Organic Contract reflective of Platte River's commitment to environmental
stewardship. The suggested changes have been incorporated into both Contracts. The following
statements have been included:
WHEREAS, the Municipalities are committed to the delivery ofelectricity that
is both affordable to their customers and generated in a manner that reflects good
stewardship of the environment; and
WHEREAS, during its existence the Authority has developed a portfolio of
generation resources and demand side management programs that deliver affordable
power and energy in conformance with relevant environmental regulations; and
WHEREAS, the Municipalities acting in concert through the Authority wish
to continue their commitment to provide electric power and energy with cost effective
and environmentally responsible resource options that enhance the sustainability of
the Northern Colorado region;
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(Note: The additional language added to the PURPOSES section at 2.1(i) is underlined below to
indicate the change)
1.1 PURPOSES
The purposes of the Authority are to conduct its business and affairs for the
benefit of the Municipalities and their inhabitants
(i) to provide the electric power and energy requirements of the Municipalities
and the retail customers within the Municipalities in a cost effective manner that
reflects high standards of environmental stewardship and sustainability;
Revisions to the Organic Contract
In June 1975, the municipalities of Fort Collins, Longmont, Loveland and Estes Park established
Platte River Power Authority to develop both energy resources for the production of electric energy
and transmission infrastructure to deliver electric energy to the four member municipalities.
The Organic Contract Establishing Platte River PowerAuthority as a Separate Governmental Entity
dated June 17, 1975 defined the roles of each of the municipalities within the organizational
structure of Platte River, defined membership on the Board ofDirectors, and established the by-laws
within which the Board operates.
In July 1998, the Organic Contract was amended to allow Platte River to provide additional
functions, services orfacilities to any combination oftwo or more ofthe member municipalities. An
example of an expanded service is Platte River 's provision and management of the Banner Customer
Information System used by both Longmont and the City of Fort Collins. The modification also
allowed Platte River to enter into telecommunication activities, which they continue to manage for
the City.
The amendments that staff and Platte River are presenting to Council in the Amended and Restated
Organic Contract Establishing Platte River Power Authority as a Separate Governmental Entity (the
"Updated Organic Contract') add to the services that Platte River may provide to Fort Collins by
noting that Platte River will assist Fort Collins in reaching its renewable energy requirements.
Additionally, language has been added which specifically details that Platte River will provide
services and products that improve the efficiency of generation, transmission and use of electrical
energy. The proposed changes also bring current the expiration dates of the terms of the Platte
River appointed directors. Those dates are as follows; December 31, 2011 for Estes Park,
December 31, 2008 for Fort Collins, December 31, 2010 for Longmont and December 31, 2009 for
Loveland. Additional changes allow board members to participate in Board meetings via
teleconferencing. Changes also provide authority to the Board to appoint an interim Platte River
General Manager if and when a vacancy exists in that office. The previous provision automatically
designated the Board Chairman. The Updated Organic Contract also extends the term of the
Contract from an end date of 2040 to 2050.
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Revisions to the Amended Contract for the Supply of Electric Power and Energy
Fort Collins and Platte River are proposing an Amended Contract for the Supply of Electric Power
and Energy (the "Updated Energy Supply Contract'). The Transmission Facilities Agreement
between Platte River and Fort Collins, dated February 22, 1980, will be terminated with the
execution and some of its terms are incorporated into the Updated Energy Supply Contract, while
others are addressed in Appendix a to the Updated Energy Supply Contract.
The Updated Energy Supply Contract obligates Platte River to sell and deliver and Fort Collins to
purchase and receive all electrical energy which Fort Collins requires; in effect, it is an all -
requirements contract with an exception as described below. The Contract defines the roles and
responsibilities of each of the entities with respect to providing electric energy, the disposition of
excess energy, the responsibility to maintain adequate rates, and required compliance with Western
Area Power Administration requirements for the purchase of federally generated power.
The above noted exception to the all -requirements obligation addresses the amount ofgeneration
the City can develop to provide service to City -owned facilities. The contract as it currently stands
limits the amount ofgeneration the cities could develop for their own use. The member cities were
able to keep any generation resources they owned prior to the establishment of Platte River, which
allowed Longmont and Loveland to continue to own and operate their small hydro -electric plants.
Fort Collins had no such resources. The amended Contract designates municipal generation up to
1 % ofpeak as de-minimus. The amendment will have a very positive effect on the City. Fort Collins
will be able to develop approximately 3000 kilowatts of renewable generation. The total load
associated with cityfacilities is about 5000 kilowatts, so more than half of this could be met with
municipal generation (renewable or other resources). 3000 kilowatts is enough generation to power
approximately 1,000 to 1,200 homes. Depending on the resource developed, 3000 kilowatts of
generation could reduce carbon dioxide emissions by between 7, 000 to 19, 000 tons per year. The
amended Contract does not limit the amount or size of generation customers can install at their
homes or businesses. The option for customers to develop their own generation has always existed
and is not impacted by this amended contract.
Fort Collins and Platte River jointly occupy all of the substations serving the City. The proposed
changes clarify that each party has license to occupy any substation where the parties jointly use
facilities. The language of the Updated Energy Supply Contract clarifies the planning requirements
and the timelines needed to insure that adequate time is given for the siting, design and construction
of new transmission and substation facilities. For example, it reduces from four years to two years
the prior notification the City must give Platte River of the need for a new substation if no new
transmission is required if new transmission is required, the City must give Platte River four years
notification.
The Energy Supply Contract term is also extended from 2040 to 2050. This is of critical importance
because the power supply agreements between Platte River and the cities are securityfor Platte
River bonds and these agreements must have terms beyond the terms of the bonded indebtedness.
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Appendix B to the Updated Energy Supply Contract specifies the responsibilities of each entity as
either the owner or joint user of a facility. The responsibilities for site work, foundation
construction, and operation and maintenance tasks are defined in Appendix B.
Platte River purchases energy from the Western Area Power Administration (WAPA) on behalf of
the Cities. The WAPA General Power Contract Provisions have been added as an exhibit to the
Energy Supply Contract.
The amendments to both agreements give additional flexibility to both Platte River and the City in
addressing Governor Ritter's goal to reduce the City's carbon emissions by 20% below 2005 levels
by 2020 and 80% below 2005 levels by 2050. Both the City and Platte River have committed
themselves through formal resolutions to reaching these goals. The development or acquisition of
additional renewable resources along with the implementation of energy efficiency programs and
services by Platte River, and the City's ability to develop renewable resources for its own use,
provide both Platte River and the City new avenues towards this goal. Additionally, the amendments
provide clarity to the roles and responsibilities of each entity. "
Brian Janonis, Utilities Executive Director, stated the contracts provide the City with the ability to
self -generate up to 3000 kilowatts of renewable energy. The contracts clarify some longstanding
issues regarding responsibilities at the substations and they support the City's environmental
objectives.
Brian Moeck, General Manager of Platte River Power Authority, stated an extension of the contracts
is requested every 10 years. The existing contracts expire in 2040 and the request is for a 10 year
extension to 2050 for financing purposes. The City's Electric Board has reviewed and unanimously
approved the contracts.
Councilmember Troxell asked about the process to amend the contracts in the future. Moeck stated
the contracts do not have any language that gives a time frame to readdress the contracts. A request
to consider a change may be brought forward at anytime through the members on the Platte River
Board.
Councilmember Poppaw asked if a provision could be added to the contract that would require a
review after five years and if such a provision would be too onerous for Platte River. Moeck stated
it would be possible to include a five year review in the contract. He suggested asking the Electric
Board to review the contract annually and the Board could come to Council with any suggestions
for change. This would allow for the opportunity to address any requested changes on a more
flexible basis.
Mayor Hutchinson noted Council can discuss any potential changes at any time.
Councilmember Poppaw stated an annual review by the Electric Board would be beneficial but she
also wanted a written provision that would require Council to review the contract after a certain
period of time. City Attorney Roy stated the Organic Contract and the Electric Supply Contract
contain provisions that address the ability of the parties to amend the contracts at anytime. He noted
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the contract may not be terminated as long as Platte River has bonds, notes or other obligations
outstanding. A provision could be added to the contract that stated a periodic review will be
conducted or an internal policy could be developed to require such a review. After a review, any
changes the City chooses to propose could then be considered by Platte River and the other parties
to the contract. The Energy Supply Contract contains language that states the Contract remains in
effect until it is terminated and it does not have specific language about the parties's ability to amend
the contract during the term of the agreement. If all the parties to an agreement want to amend an
existing agreement, changes can be made to the agreement at any time.
Mayor Hutchinson allowed public comment at this time.
Eric Sutherland, 631 LaPorte, stated the contracts do not reflect changes in the energy industry and
do not contain 21 st century policy. The issue of parity and who will pay for renewable energy in the
future should be addressed in these contracts.
Councilmember Ohlson asked what the result would be if the contract is not adopted at this time.
Moeck stated the City will continue to receive service under the existing contract until the end of that
contract. If Council votes to never renew the contract, that would need to be disclosed on the current
bond issue. If the intent is to continue working on the contract, a disclosure will not be required.
Councilmember Olson stated one proposed change to the Energy Supply Agreement would allow
the City to develop its own generation resources up to 1% of its annual peak demand for City
facilities and he asked for the consequences of changing that percentage to 2% or 3%. Moeck stated
a request was given to Platte River to consider a change of 10% and ask bond counsel for the results
of that request. A letter from bond counsel stated under current conditions asking for any increase
in the percentage from the rating agencies is not recommended for fear it might have a negative
impact on the bond rating request. Allowing 1% generation was negotiated many months ago and
any increase will affect the bond rating.
Councilmember Ohlson asked if the Whereas clauses in the Organic Contract could be amended to
strengthen environmental responsibility and address the issue of climate change. City Attorney Roy
requested specific direction from Council as to what the Contract should say that would be
acceptable to Council.
Councilmember Ohlson stated the wording should be strengthened regarding environmental
protection and further consideration of the ordinances should be postponed until the language is
strengthened. City Attorney Roy asked it the matter is time sensitive. Moeck stated his preference
that Council adopt the ordinances on first reading and make any necessary changes before second
reading in such a way that the contract remains fundamentally the same.
Councilmember Ohlson noted the contract will remain in effect until 2050 and he wanted strong
language about environmental issues.
Councilmember Roy stated a letter from Mr. Moeck states "Platte River is an entity discrete from
the member municipalities which have no control over the actions of Platte River except through
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their representation on the Board of Directors" and he asked if Mr. Moeck was balancing requests
from the cities or from the 8-member Board. Moeck stated he reports to the Board, which is
composed of 2 members from each participating municipality. The Board provides most of the
direction he is given, but Platte River also recognizes it serves 250,000 customers and it cares about
the issues that concern those citizens.
Councilmember Roy asked if the Contract could be adopted if this Council does not support the
Contract. Moeck stated the existing Contract stays in place unless all four municipalities agree to
the amended Contract. City Attorney Roy stated the Contract is a four party agreement and cannot
be modified without the consent of all parties. If one of the parties does not approve the amended
Contract, the existing Contract will remain in force until 2040.
Councilmember Roy stated his concerns about the length of the contract and that it did not seem to
contain enough forward -thinking ideas for a contract that will be in effect until 2050. Moeck stated
the Organic Contract creates Platte River Power Authority and discusses the governance model. The
issues such as climate change are more directly related to the Energy Supply Contract, which is a
two-party agreement between Fort Collins and Platte River.
Councilmember Poppaw supported postponement of consideration until the language in the Contract
can be improved. Council wants to adopt the Contract, provided it contains the proper language.
Councilmember Manvel stated the Organic Contract can be modified with unanimous approval of
the four member municipalities. The old Contract will continue in effect if one party does not
approve the new Contract. Any change to the Energy Supply Contract would be between Fort
Collins and Platte River. Fort Collins could effect a change with the approval of any one other party
of the four member municipalities. Changing the Energy Supply Contract does not take unanimous
approval of all four municipalities. Moeck stated if the City wants to increase from its own
generation from 1% to 2%u, Platte River would choose to get bond counsel approval. Platte River
does try to keep the Energy Supply Contracts to each of the four cities the same. If bond counsel
agreed to a higher percentage at some time in the future, Platte River would want to offer that same
higher percentage to all four parties. A majority of the Board of Directors would be needed to
approve a new Energy Supply Contract. If the Board vote is a tie vote, the vote becomes a
"weighted" vote. If the Fort Collins Boardmembers and another party vote for the new Agreement,
those votes become the majority.
Mayor Hutchinson noted achieving I % of the City's own generation resources is an ambitious goal.
Achieving 1%u with a 3,000 kW solar project would take 15 acres of solar panels and cost
approximately $30 million.
Councilmember Poppaw stated the amount of energy that would be generated by 1% is
approximately 3000 kW or 60% of City facility demands. She asked if the remaining 40% of energy
demands of City facilities could be provided by renewable energy by a contract with Platte River and
if the Platte River Board needed to get permission to generate the remaining 40% in such a manner.
Moeck stated the first 60% or the remaining 40% of generation of energy for City facilities could be
done by renewable energy by Platte River as long as the City paid for such projects. Projects for
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individual communities that are not done for all four communities are paid by the individual
communities. Such projects are generally of a size that requires Board approval. No special project
requested by a member community has been denied by the Board. The issue is fairness and whether
all four communities should pay for the project or only the communities who are benefitting from
the project.
Councilmember Poppaw asked for clarification on the issue of parity of payments and how payments
for projects are divided between the member cities and if any cities are receiving benefits for which
they are not paying. Moeck stated one issue that has been raised concerned the new bond issue
paying for transmission for Loveland and Longmont. That transmission line has already been built
in Fort Collins. All of the transmission and generation is a pooled resource and the cost is charged
equally through a tariff that is the same for all four cities. The renewable portfolio is a pooled
resource that is either delivered energy or renewable energy credits and each city requests the amount
of renewable energy from that pool. Each community requests a different amount, but pays the same
dollars per megawatt hour and the same cents per kilowatt hour. There is also the issue of a
customer information system, installed years ago, that benefits Fort Collins and Longmont and those
two communities are paying for that service. A fiber optics system has been built around all the
cities with additional fibers added for Fort Collins and Longmont. Longmont wanted to own and
operate that system itself. The fibers in Loveland and Fort Collins are leased to those that want to
lease them and Platte River sends those two cities the funds received from the leasing.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Roy asked for information on Platte River's role in the Windy Gap Project. Moeck
stated Platte River owns the rights to 16,000 acre-feet from the Windy Gap Diversion Project on an
annual basis. Platte River currently transfers 5,150 acre-feet of water when the water is available,
of which 4,200 acre-feet goes to Fort Collins first, then the water is used in Anheuser-Busch's
manufacturing process. The City gets the use of the totally consumable water and Platte River, in
return, take treated effluent from the City's system to Rawhide Plant Hamilton Reservoir for cooling
purposes. Both Platte River and the City rely on water from the Windy Gap Project.
Councilmember Roy asked if the Contract contained a provision that would use the Windy Gap
Project to support a second power plant. Moeck stated the Rawhide Energy Plant was originally
designed for three coal units of equal size and the water was acquired in the Windy Gap Project for
use at a second plant. However, air quality regulations have changed and it would now be very
difficult to build a second coal unit. Platte River does not have any plans to build a second coal unit.
Councilmember Roy asked if the Windy Gap Firming Project was necessary for Platte River
operations. Moeck stated in the drought of 2001-2002 taught Platte River that the Windy Gap
Project does not always provide the water needed each year. The Firming Project will buy a piece
of a new reservoir so Platte River can store Windy Gap water to ensure the 5,150 acre-feet of water
are available each year rather than counting on the water coming from the Diversion Project itself.
Both Projects provide assurance that Platte River can meet its obligations to Fort Collins to provide
the 4,200 acre-feet that goes through the City's system and Platte River then takes 4,200 acre-feet
at the end.
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Mayor Hutchinson noted the Contract does not contain any reference to the Windy Gap Project.
Councilmember Ohlson stated the perceived lowest costs are not always the actual lowest cost
especially when health, air quality and environmental costs are included. He asked that the these
issues be acknowledged as being of equal importance. City Manager Atteberry suggested Council
postpone its vote on the Contract until these issues are addressed.
Councilmember Ohlson asked for a review of the Contract every five years to be included within the
City's timeframe, even if it is not included in the Contract or the Energy Supply Contract. City
Manager Atteberry noted the power industry and Fort Collins Utilities are changing rapidly and a
periodic review would be a good idea that can be done at a local level. Council could amend the
duties of the Electric Board to include a periodic review of the Contract.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to postpone to a later
date, consideration of Ordinance Nos. 016 and 017, 2009 until staff and Platte River have modified
thelanguage.
Councilmember Troxell noted the Electric Board voted to approve the Contract by a vote of 4-0,
with two members recusing themselves and one member absent. The proposed agreements provide
the flexibility to provide for the innovations and changing needs in the delivery of electric services
of the future of Fort Collins. Platte River has a remarkable record in providing electric power and
environmental stewardship. It has provided renewable energy to Fort Collins and the other member
cities for over 10 years. The extra language being requested is not necessary and he did not support
a postponement.
City Attorney Roy clarified that the intent of the motion was to postpone consideration of both
ordinances. Councilmembers Roy and Manvel agreed the intent was to postpone both ordinances.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: Troxell.
THE MOTION CARRIED.
Items Relating to an Intergovernmental Agreement between
the City of Fort Collins, the Town of Windsor and
the Colorado Department of Transportation, Adopted on First Reading
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
The Transportation Commission's approval of the System Level Study on January 21, 2009 and the
approval of the Intergovernmental Agreement (IGA) will allow the project to be designed and ready
for construction. Design funding in the amount of $],937,878 was earmarked for this project by
CDOT. Of that amount, 5169,355 will be withheld for CDOT review, the remaining funds of
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$1, 768,523 will cover the cost of consultant design and City and Town review. The total amount
appropriated will be $1, 768, 523. The total cost of the design will be funded by CDOT so no local
match is required. The preliminary cost of the interchange construction is estimated to cost an
additional $22.7 million (not including right-of-way). The cost of constructing the interchange and'
right-of-way acquisition is not part of this IGA. if construction funding becomes available, a second
IGA will be required.
EXECUTIVE SUMMARY
A. Resolution 2009-010Approving an Intergovernmental Agreement with the Town of Windsor
and the Colorado Department of Transportation Concerning the Design of the Interstate
25/State Highway 392 Interchange.
B. First Reading of Ordinance No. 018, 2009, Appropriating Unanticipated Revenue in the
Capital Projects Fund for the Interstate 25 and State Highway 392 Interchange and
Improvements Project.
The City Council and the Windsor Town Board have held three joint work sessions to discuss the
I-25 and State Highway 392 Interchange Improvements and System Level Study (1601 Process). The
System Level Study for this interchange was approved by the Transportation Commission on
January 21, 2009. This approval, along with a signed IGA, will allow the project to move into the
final design phase. This agreement outlines the disbursement of the $1, 937, 878 million available
from CDOT for the design of the interchange. Ordinance No. 018, 2009, authorizes the
appropriation of$1, 768,523 in lieu ofrevenue from the General Fund to the Capital Projects Fund
for the design of the 1-25 and SH392 Interchange Improvements.
BACKGROUND
The 1-25 and State Highway 392 Interchange is an integral, yet poorly functioning part of the state
transportation network. In January 2006, the City of Fort Collins (City) and the Town of Windsor
(Town) entered into an Intergovernmental Agreement (IGA) to develop a plan for the improvement
of the interchange, including implementation strategies.
A plan was presented to the City, the Town, and affected interest groups. A joint task force (staff
from the Town, City, and a potential Developer) was formed to focus on the specific financing tools
to use for funding scenarios of the interchange improvements. The System Level Study includes
three possible funding scenarios.
The two-year process to develop the I-251SH 392 Interchange Improvement Plan was completed in
early 2008. The Study established a foundation for implementing the needed interchange
improvements and developing some financing tools available to the Town and the City.
The next step was the completion of a CDOT approved System Level Study. The Cityand Toivn
chose to move forward with the System Level Study. A System Level Study is a CDOT mechanism
for seeking approval from the Federal Highway Administration (FHWA) to reconstruct or modify
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an interchange on the Interstate Highway System. The Study included conceptual design,
environmental clearance, and a financing package. Staff representatives from Fort Collins and
Windsor worked in collaboration with a consultant team to complete the requirements of CDOT and
FHWA. The System Level Study was approved by the Transportation Commission on January 21,
2009. Completion of these requirements allows the project to be designed and ready for
implementation when construction funding is available.
This IGA between the Town, City and CDOT identifies the process for administrating the S1, 93 7,878
million that is available from CDOT. The IGA identifies the scope of workfor the design, describes
how the design contract will be managed, and defines funds for CDOT `s design review. The scope
of work includes provisions specifying that any additional wetlands mitigation beyond levels
required by the National Environmental PolicyAct (NEPA), as well as retaining walls along SH-392
west of the interchange will be the financial responsibility of the City of Fort Collins. With the
Transportation Commission approval of the System Level Study and the approved IGA, the
interchange design can begin immediately and will allow the project to be ready for construction
in the Fall 2009, qualifying the project for potential stimulus package funding. "
Mark Jackson, Transportation Group Director, stated the System Level Study was unanimously
approved by the Transportation Commission and the Project is ahead of schedule. The next step is
the design phase, which, if completed in a timely fashion, could allow the Project to receive funds
from the federal stimulus package funding. This resolution is requesting approval of an
intergovernmental agreement between the City, Windsor and the Colorado Department of
Transportation (CDOT). The IGA is required by CDOT and will allow CDOT to disburse the $1.9
million in state and federal funds that are set aside for the interchange design work. Staff from Fort
Collins and Windsor will take the lead on the design and CDOT will reimburse the communities for
their costs. The scope of work includes wetlands mitigation, retaining walls, and special treatments
on the west side of the interchange. Accelerating the design process of the interchange will not
compromise the design process, which will begin as soon as the three parties sign the IGA. The goal
is to have the design completed by July 2009.
Councilmember Ohlson asked if funding from the federal stimulus package will remove the private
sector from its share of the costs. Jackson stated any development project at the interchange would
be assessed development impact fees, either before the development or in a pay -back agreement.
Councilmember Ohlson asked if the placement of the frontage roads is included in the agreement.
Jackson stated the upcoming meetings between Fort Collins and Windsor will discuss the placement
of the frontage roads as part of the design process.
Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt Resolution
2009-010. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
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Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
018, 2009 on First Reading. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays:
none.
THE MOTION CARRIED.
Ordinance No. 013, 2009,
Appropriating Unanticipated Federal Department of Energy
Grant Revenue in the Light and Power Fund, Adopted on First Reading
The following is staff'.s memorandum on this item.
"FINANCIAL IMPACT
Resolution 2008-106 authorized the City Manager to execute an agreement with the Department of
Energy to .enter into subcontract agreements with project partners that outline, per the grant
submittal, how matching funds are contributed and Department of Energy (DOE) funds are
distributed among the partners. The total budget for the project is S11.1 million as follows: .
Total project budget: S11,052,949
Total matching funds: S 4,729,569
Funds requested from DOE: S 6,323,380
The Ordinance appropriates S6,323,380 of unanticipated grant revenue.
EXECUTIVE SUMMARY
This project will modernize and transform a portion of the electrical distribution system in the City
by developing and demonstrating a coordinated and integrated system of mixed distributed electric
resources, including renewable generation (solar), rotary- and inverter -based generation, and
demand response methods, that will reduce peak loads on multiple distribution feeders in the
downtown area by up to 30% and deliver improved efficiency and reliability.
BACKGROUND
The applicant for the overall project is the City of Fort Collins. The project will address the
research, development, and demonstration of a coordinated and integrated system of 3.5 MW of
mixed distributed resources in Fort Collins to achieve a 20-30% peak load reduction on multiple
distribution feeders. The City has worked with several cooperating government and private entities
to create a unique combination of world -class research facilities, global industry leaders and local
entrepreneurs to develop and plan the project.
Project partners working with the City to provide matching contributions and to implement the
project included Colorado State University, Larimer County, the Governor's Energy Office, New
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Belgium Brewing Company, Advanced Energy, Brendle Group, Caterpillar, Eaton, Spirae, and
Woodward Governor.
The DOE grant funding for the project totals S6, 323, 380, and the matching funds required for the
project total 84, 729, 369. The grant will be disbursed over a three year period.
Utilities staff will administer the grant requesting reimbursements for the City and project partners,
filing the appropriate federal grant reports, tracking grant expenditures, and coordinate activities
among the partners. The City of Fort Collins Utilities will request funding from the Department of
Energy and reimburse partners for their agreed upon contributions. "
Councilmember Troxel l withdrew from the discussion of Item 912, First Reading of Ordinance -No.
013, 2009, Appropriating Unanticipated Federal Department of Energy Grant Revenue in the"Light
and Power Fund, due to a conflict of interest.
Eric Sutherland, 631 LaPorte, stated it was unclear how the Fort Collins Utilities will be shaped by
this grant and how benefits from FortZed will improve the entire community. Other communities
have more progressive energy policies than Fort Collins that do benefit their entire communities and
not just one district. FortZed creates one area that is "zero energy" but will not benefit the whole
city.
Councilmember Ohlson asked for information from Mr. Sutherland regarding the energy policies
developed by other communities and what changes should Fort Collins consider making to become
more progressive in the energy field in the next five years. Mr. Sutherland stated he would provide
that information to Council and staff.
Councilmember Manvel stated the goals of FortZed could be made clearer and more information
should be made available to the public. Brian Janonis, Utilities Executive Director, stated more
information on the goals and objectives of FortZed would be provided to Council and to the public
through the City's website.
Mayor Hutchinson stated the City needs to make a greater effort to publicize its efforts in moving
towards greater use of renewable energy. City Atteberry stated those interested could look at the
"Utilities of the 21st Century" and see where best management practices are occurring within the
Fort Collins Utilities which has been moving towards greater use of renewables and sustainability
for some time.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
013, 2009 on First Reading. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays: none.
Withdrawn: Troxell.
THE MOTION CARRIED.
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Adjournment
The meeting adjourned at 9:20 p.m.
Mayor
ATTEST:
City Clerk
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