HomeMy WebLinkAboutMINUTES-05/19/2009-RegularMay 19, 2009
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting - 6:00 p.m.
A regular meeting of the Council of the City of Fort Collins was held on Tuesday, May 19, 2009,
at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered
by the following Councilmembers: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy, and
Troxell.
Staff Members Present: Atteberry, Harris, Daggett.
Citizen Participation
Thomas Edwards, 1 101 South Bryan, stated police should enforce bicycling laws to protect bicyclists
and motorists.
Bruce Lockhart, 2500 East Harniony Road, opposed the establishment of a pilot trash district
because trash districting will cause the loss of jobs.
Katie Freudenthall, Director of Community Affairs, ASCSU, requested an enhancement of current
partnerships with CSU through the community liaison program as part of Budgeting for Outcomes.
Kathleen Bailey, Fort Collins resident, stated establishing a pilot trash service district will be too
costly and she urged Council to halt any trash districting.
Citizen Participation Follow-up
Councilmember Roy stated enforcement ofbicycling laws is important forthe safetyof the bicyclists
and for the City to achieve its goal of being a "bicycle friendly" city. He asked how the request for
an enhancement of partnerships with CSU would be submitted through the BFO process. City
Manager Atteberry stated the current liaison can submit an enhancement offer that would be
processed the same as other offers.
Mayor Hutchinson asked if the City shared the cost of a community liaison staff person with CSU.
City Manager Atteberry stated the cost is shared equally with CSU.
Councilmember Ohlson asked how many tickets have been written for bicycle violations for the last
3 years.
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Agenda Review
City Manager Atteberry stated there were no changes to the published agenda.
Bruce Lockhart, 2500 East Harmony, pulled Item It 14 First Reading of Ordinance No. 059, 2009,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to
Construct Public Improvements Related to the Mason Corridor Bus Rapid Transit Project (Phase
One).
Councilmember Ohlson stated he had a few questions about Item #15 Items Relating to Richards
Lake Substation Modifications, but he did not want to pull the item. He asked if this item will
indirectly enable the Northern Integrated Supply Project (NISP) to proceed. Steve Catanach, Light
and Power Operations Manager, stated Poudre Valley REA is the beneficiary of the proposed
modifications to the Richards Lake Substation. The only link Poudre Valley REA has with the
Glade Reservoir/NISP project is an inquiry it sent asking if it would need to relocate a substation
located near the proposed site of Glade Reservoir. It is not involved in the NISP project in any way.
Mike Dahl, Platte River Power Authority, stated, if the NISP project is built, it could request service
from the appropriate electric supplier, who would be Poudre Valley REA. The interconnected
transmission system already exists in the area and could be used by the NISP project. The request
for modification to the Richards Lake Substation, made by Tri-State Generation and Transmission
Association, Inc. is made to provide greater reliability and is not connected with the NISP project,
but is solely to help improve the reliability of the Tri-State system in delivering electricity through
Poudre Valley REA to its customers in the Wellington, norther Larimer County and Foothills areas.
Councilmember Ohlson did not pull Item #15.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the April 14, 2009 Special Meeting, and the
April 21. 2009 Regular Meeting.
7. Second Readim-, of Ordinance No. 047 2009 Appropriating Unanticipated Revenue in the
General Fund for E91 I and Emergency Medical Dispatch Systems at the Poudre Emergency
Communications Center.
This Ordinance, unanimously adopted on First Reading on May 5, 2009, appropriates the
funds provided to Fort Collins Police Services by Larimer Emergency Telephone Authority
(LETA) to purchase equipment, train users and maintain equipment for emergency services
dispatching. The total amount to be appropriated is $50,935.
8. Second Reading of Ordinance No. 048 2009 Appropriating Prior Year Reserves in the
General Fund From Police Seizure Activities for Police Services.
This Ordinance, unanimously adopted on First Reading on May 5, 2009, appropriates funds
to be used by Police Services to pay for training as well as to fund partnerships with
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community groups that seek to promote positive youth activities, anti -violence, anti -drug,
and diversity activities.
9. Items Relating to the North College and East Willox Lane Capital Improvement Project.
A. Second Reading of Ordinance No. 049, 2009, Authorizing the Transfer of Existing
Appropriations from the Fort Collins Urban Renewal Authority Fund to the Capital
Projects Fund for the North College Avenue and East Willox Lane Improvement
Project.
B. Second Reading of Ordinance No. 050, 2009, Authorizing the Acquisition by
Eminent Domain Proceedings of Certain Lands Necessary to Construct Public
Improvements Related to the North College Avenue and East Willox Lane
Improvement Project.
Council has authorized the transfer of funds to the Fort Collins Urban Renewal Authority
(URA) for the purpose of providing a loan for the North College Marketplace Project,
located at the northeast corner ofNorth College and East Willox. Ordinance No. 049, 2009,
appropriates funding from the URA into a Capital Projects account for the design and
construction of the improvements to North College and East Willox. Ordinance No. 050,
2009, authorizes the use of the City's eminent domain powers to acquire rights -of -way for
the project, if necessary. Both Ordinances were unanimously adopted on First Reading on
May 5, 2009.
10. First Reading of Ordinance No. 054, 2009, Authorizinu_ the Transfer of Existing
Appropriations from the Downtown Development Authority Fund to the Capital Project
Fund for the Building on Basics Pedestrian Plan Project, Linden Street Streetscape Project.
Phase 1.
This Ordinance appropriates funding from the Downtown Development Authority (DDA)
into the project account for the Linden Street Streetscape project. This funding may be used
for any or all of the following phases of the project: design, engineering, right-of-way, and
construction for the segment of Linden Street from Jefferson Street/SH 14 north to the Poudre
River bridge. The City's matching funds are being provided by existing Building on Basics
Pedestrian Plan funds. In addition, CDOT has awarded the City $250,000 in funding for this
project to help the project achieve the improvements envisioned in the Downtown River
District Project approved by the City and DDA in 2008.
11. First Reading of Ordinance No. 055, 2009, Authorizing the Transfer of Appropriations from
the Downtown Development Authority Fund to the Capital Project Fund, Building on Basics,
Intersection Improvements, Jefferson Street/SH14 Project.
This Ordinance appropriates funding from the DDA into the project account for the
Alternatives Analysis study and recommended improvements to Jefferson Street/SH 14, from
North College Avenue to Mountain Avenue. The project includes the intersection of
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Jefferson, Riverside, Mountain, and Lincoln streets. Funding from the DDA may be used
for any or all of the following phases of the project: Alternatives Analysis study,
preliminary/final design, engineering, right-of-way, and construction. The City's matching
funds are being provided by existing Building on Basics intersection funds. In addition, the
Colorado Department of Transportation has awarded the City S 1,000,000 in funding for this
project to help the project achieve the improvements envisioned in the Downtown River
District Project approved by the City and DDA in 2008.
12. Items Relatinn to Certain Utility Service Programs and Requirements.
A. First Reading of Ordinance No. 056, 2009, Amending Chapter 26, Article VI, of the
City Code Relating to Certain Electric Service Programs and Requirements.
B. First Reading of Ordinance No. 057, 2009, Amending Chapter 26, Article 111,
Division 6 of the City Code Relating to Water Conservation.
Revisions in the two proposed Ordinances are housekeeping changes to more closely align
Code requirements with current utility programs and practices. The changes outlined below
do not represent any change in policy or direction. There will be no increase or decrease
in customers' utility rates.
13. First Reading of Ordinance No. 058 2009 Authorizing the Lease of the Collindale Golf
Course Residence at 1341 East Horsetooth Road for Up to Five Years.
The residence at the Collindale Golf Course was built in 1970, the same year the golf course
was constructed. The original use of the residence was for housing the Golf Course
Superintendent until 1997. Since that time, the residence has been rented to various golf -
related individuals. This action will approve a one year lease, with the City having the
option to renew the lease for additional one-year terns, up to five years. The leasing of the
Property is beneficial in that it will discourage vandalism and reduce the City's costs by
having the Tenant pay for the utilities.
14. First Reading of Ordinance No. 059 2009 Authorizing, the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the
Mason Corridor Bus Rapid Transit Project (Phase One).
The Mason Express ("MAX"), bus rapid transit project is entering into the right-of-way
acquisition phase of the project. Project acquisitions have been broken into three phases.
This Ordinance relates to Phase 1 and consists of seven distinct property ownerships. As a
critical, federally funded transportation project, City staff requests authorization to utilize
eminent domain, if necessary, and only if good faith negotiations break down, in order to
ensure a timely acquisition of the necessary property interests.
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15. Items Relating to Richards Lake Substation Modifications.
A. Resolution 2009-047 Authorizing the City Manager to Execute a License Agreement
with Platte River Power Authority.
B. First Reading of Ordinance No. 060, 2009, Authorizing the Conveyance of a Utility
Easement to Tri-State Generation and Transmission Association, Inc.
Tri-State Generation and Transmission Association, Inc. ('Tri-State') has requested a
connection for transmission facilities between Platte River's transmission system and Tri-
State. To facilitate this connection, two new breakers and associated equipment must be
installed in the City's Richards Lake Substation. In order for this connection to occur, the
City must grant Platte River a License to install facilities that are not specifically designated
to provide service to the City and must grant Tri-State an easement to cross the substation
property with its connection.
16. Resolution 2009-048 Adopting the Recommendations of the Cultural Resources Board
Regarding Fort Fund Disbursements.
The Cultural Development and Programming and Tourism Programming accounts (Fort
Fund) provide grants to fund community events. This Resolution adopts the
recommendations from the Cultural Resources Board to disburse these funds.
***END CONSENT***
Ordinances on Second Reading were read by title by Chief Deputy City Clerk Harris.
7. Second Reading of Ordinance No. 047, 2009, Appropriating Unanticipated Revenue in the
General Fund for E91 I and Emergency Medical Dispatch Systems at the Poudre Emergency
Communications Center.
8. Second Reading of Ordinance No. 048, 2009, Appropriating Prior Year Reserves in the
General Fund From Police Seizure Activities for Police Services.
9. Items Relating to the North College and East Willox Lane Capital Improvement Project.
A. Second Reading of Ordinance No. 049, 2009, Authorizing the Transfer of Existing
Appropriations from the Fort Collins Urban Renewal Authority Fund to the Capital
Projects Fund for the North College Avenue and East Willox Lane Improvement
Project.
B. Second Reading of Ordinance No. 050, 2009, Authorizing the Acquisition by
Eminent Domain Proceedings of Certain Lands Necessary to Construct Public
Improvements Related to the North College Avenue and East Willox Lane
Improvement Project.
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22_ Second Reading of Ordinance No. 051, 2009, Amending the City Code Relating to
Enforcement of Occupancy Limits.
23. Second Reading of Ordinance No. 052, 2009, Amending Section 12-19 and Article XV of
Chapter 15 of the City Code Relating to Trash Collection.
Ordinances on First Reading were read by title by Chief Deputy City Clerk Harris.
10. First Reading of Ordinance No. 054, 2009, Authorizing the Transfer of Existing
Appropriations from the Downtown Development Authority Fund to the Capital Project
Fund for the Building on Basics Pedestrian Plan Project, Linden Street Streetscape Project,
Phase 1.
11. First Reading of Ordinance No. 055, 2009, Authorizing the Transfer of Appropriations from
the Downtown Development Authority Fund to the Capital Project Fund, Building on Basics,
Intersection Improvements, Jefferson Street/SH 14 Project.
12. Items Relating to Certain Utility Service Programs and Requirements.
A. First Reading of Ordinance No. 056, 2009, Amending Chapter 26, Article VI, of the
City Code Relating to Certain Electric Service Programs and Requirements.
B. First Reading of Ordinance No. 057, 2009, Amending Chapter 26, Article III,
Division 6 of the City Code Relating to Water Conservation.
13. First Reading of Ordinance No. 058, 2009, Authorizing the Lease of the Collindale Golf
Course Residence at 1341 East Horsetooth Road for Up to Five Years.
14. First Reading of Ordinance No, 059, 2009, Authorizing the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary to Construct Public Improvements Related to the
Mason Corridor Bus Rapid Transit Project (Phase One).
15. First Reading of Ordinance No. 060, 2009, Authorizing the Conveyance of a Utility
Easement to Tri-State Generation and Transmission Association, Inc.
20. First Reading of Ordinance No. 061, 2009, Amending Chapter 26 Article VI of the City Code
Relating to the Provision of Electric Service.
21. First Reading of Ordinance No. 062, 2009, Amending Chapter 26, Article VI of the City
Code Relating to Net Metered Electric Service.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt and approve
all items not withdrawn from the Consent Calendar.
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Councilmember Ohlson asked for pulled Item # 14 to be considered at this time. The Mayor allowed
discussion of this item.
Ordinance No. 059, 2009,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands
Necessary to Construct Public Improvements Related to the Mason Corridor
Bus Rapid Transit Project (Phase One), Adopted on First Reading
The following is staffs memorandum for this item.
"FINANCIAL IMPACT
Property acquisition costs will be covered by available project fiords, whether or not eminent
domain is required.
EXECUTIVE SUMMARY
The Mason Express ("MAX "), bus rapid transit project is entering into the right-of-way acquisition
phase of the project. Project acquisitions have been broken into three phases. This Ordinance
relates to Phase 1 and consists ofseven distinct property ownerships. Asa critical, federally funded
transportation project, City staffrequests authorization to utilize eminent domain, ifnecessary, and
only ifgood faith negotiations break down, in order to ensure a timely acquisition of the necessary
property interests.
BACKGROUND
The Mason Corridor bits rapid transit project, branded Mason Express or "MAX", is a five mile,
north -south byway which extends from Cherry Street on the north, to south of Harmony Road (the
site of the new South Transit Centel). MAX will link major destinations and activity centers along
the City 's primary transportation and commercial corridor including, "Old Town ", Colorado State
University, Foothills Mall, and South College retail areas. In addition to greatly enhancing the
City's north -south transportation movement, MAX will be a significant catalyst for economic
growth, both as a short-term stimulus and as a long-term development/re-development driver. The
City is targeting a 2011 Fall operation date for the corridor.
The project is predominately located within the outside twenty-five feet of the east half of the
Burlington Northern Santa Fe Railway (the `BSNF") property, however, overall project right-of-
way will consist of a combination of property owned by the BNSF, Colorado State University,
private land owners, and the City. At present, in addition to the BNSF, Colorado State University,
the Colorado State University Research Foundation, and several ditch companies, the project will
involve property acquisition from forty-two distinct property owners. Each acquisition is unique,
but the typical acquisition need for Phase 1 of the Project can be characterized as a ten foot
permanent easement and a thirty to fifty foot temporary construction easement along the rear of the
property. Fee simple ownership is also needed in a variety of locations to accommodate stations,
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utilities and other ancillary project improvements. City staff has taken great effort to minimize
impacts to property owners, and will continue to do so as the project progresses.
To accommodate workflow and timing, property acquisitions have been broken into three phases.
Phase 1 consists ofseven distinct property ownerships (see attached location map). The remaining
property ownerships will be divided between Phases 2 and 3, and will come as separate agenda
items in the coming months.
In addition to hosting a number ofpublic forums on various aspects of the project, City staff has had
initial communications with all the property owners along the corridor. Additionally, staff has had
detailed communications with the seven ownerships in Phase 1. Furthermore, the Phase I
ownerships have also been notified by certified mail ofstafs intention to request authorization to
use eminent domain, if necessary, to acquire project property interests.
In all communications staff strongly emphasizes the City's desire to cooperatively work towards
achieving a voluntary agreement.
To ensure the integrity of the project schedule, maintain certain project efficiencies and to remain
a viable Federal Transit Administration funded project, it is critical that the City have the ability
to acquire the property interests in a timely manner. In addition, since this is a federally ftmded
project, Council must authorize eminent domain (if necessary) before appraisals and negotiations
can take place. Staff has a high degree of respect and understanding for the sensitivity of the
process and commits to utilizing the option only if absolutely necessary and only if good faith
negotiations are not successful. "
Bruce Lockhart, 2500 East Harmony, stated the use of eminent domain should not be authorized and
he asked if any follow-up reports would be provided to Council to provide oversight. He did not
support the use of any funds for the Mason Corridor Project.
City Manager Atteberry stated authorizing the use of eminent domain is a standard operating
f
procedure for most capital projects done by the City, but is rarely used.
Counci I in ember Troxel I asked for an explanation of the use of eminent domain. Helen Matson, Real
Estate Services Manager, stated the project is a federally funded project and federal requirements
state the use of eminent domain must be authorized prior to an appraiser examining the site. A
notice of interest letter will be sent to each property owner that includes information about eminent
domain and the property owner's right to get their own appraisal. Before the letter can be sent,
Council must authorize the use of eminent domain, if needed. City Manager Atteberry noted
Council will be notified in an executive session before any eminent domain proceedings are started.
Mayor Hutchinson noted Mr. Lockhart's comments would have been appropriate for Citizen
Participation and he asked if Councilmembers Manvel and Roy would accept a friendly amendment
to the motion that would move Item # 14 back onto the Consent Calendar. Councilmembers Manvel
and Roy accepted the friendly amendment.
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The vote on the motion to adopt the Consent Calendar was as follows: Yeas: Hutchinson, Kottwitz,
Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Staff Reports
City Manager Atteberry congratulated the staff in the City's Cultural, Parks, Recreation and
Environment service area for being named a finalist for the 2009 National Gold Medal Award for
Excellence in Park and Recreation Management.
City Manager Atteberry stated the CSU community liaison launched the Party Warning Program
several weeks earlier, in cooperation with CSU police and Fort Collins Police Services. The pilot
program ran from April 17 through May 17. CSU students living off -campus were given the
opportunity to register parties and received educational materials about partying safely. Seventy-six
parties were registered and seven of those parties received complaints, with only one citation issued,
while a total of 127 noise complaints were received throughout the city during the same time period.
Kathleen Bracke, Transportation Planning Director, stated the conversion of Mason and Howes into
two-way streets is an important milestone for the Mason Corridor Project. Staff has provided
considerable outreach to the downtown businesses and the community about the conversion as part
of the first phase of the Mason BRT project. The conversion project is a signing and striping project
to convert Mason and Howes streets back to two-way traffic. The conversion is necessary to keep
the BRT vehicles moving efficiently along the Corridor. Steve McQuilken, Mason Corridor Project
Manager, stated the conversion work will begin on June 8 on North Howes Street and is scheduled
to be completed by the end of June. The Mason Street conversion will probably begin in August.
The conversion will not remove any parking spaces from Howes Street and will affect only a few
parking spaces on Mason Street.
Councilmember Marvel asked for a profile of Mason Street and how it will look with bike lanes,
driving lanes, bus lanes and outdoor seating areas. Bracke stated the design drawings will be
provided to Council.
Councilmember Roy noted the two-way street conversion will also encourage two-way bicycle
traffic.
Councilmember Reports
Councilmember Poppaw held a District meeting about saving through sustainability. The Larimer
Emergency Telephone Authority (LETA) system was used to send a recorded message to the citizens
of her District to announce the meeting. The LETA system includes a non -emergency component
that is available to all the partner agencies at no cost.
Councilmember Manvel attended a Livable Cities conference in Oregon which promoted a
sustainable system to build a city.
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Councilmember Ohlson stated the Downtown Development Authority has committed another $2
million to the Museum/Discovery Center project.
Mayor Hutchinson stated Platte River Power Authority held a Boardmember retreat to discuss the
Climate Action Plan for Platte River.
Ordinance No. 061, 2009,
Amending Chapter 26 Article VI of the City Code Relating to
the Provision of Electric Service, Adopted on First Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
The proposed Code change has been drafted to clarify that the City is the sole provider- of retail
electric service with the City. The revised Code has been drafted with the goal ofaddressing three
key issues. The first is the establishment ofservice territory protections similar to those afforded
investor owned utilities, rural electric associations and other municipal utilities throughout the
State. The second goal is to align service area definitions with bondholder expectations. The third
goal is to support the development ofrenervablegeneratiori projects, including those owned by third -
parry entrepreneurs selling electricity at retail within City limits, provided certain conditions are
met.
BACKGROUND
Staff had three specific goals in the development of the proposed code change. The first was to
provide the same level of service area protection as that provided to utilities regulated by the
Colorado Public Utilities Commission. The following details the reasons considered in the
development of the first goal.
In 2007, a customer in the City ofLongmont started to evaluate a potential arrangement with a third
parry solar developer. Under the proposed business model the developer would install and own the
solar generation plant and would sell the energy to the customer at a negotiated rate. Upon review
it was revealed that the City ofLongmont's service territory code did not clearly prohibit this type
ofarrangement, although Colorado statutes would have prohibited this arrangement if it had been
proposed in the service territory of an investor -owned utility or rural electric association.
Subsequently, the City ofLongmont City Code was amended to provide protections identical to those
in Colorado statute.
Rather than oppose the solar development, Platte River and the City of Longmont offered td enter
into a buy -sell agreement with the developer in order to support the customer. The development did
not advance.for unrelated economic reasons.
After becoming aware of the situation in Longmont, the City of Fort Collins examined its existing
service area ordinances. It was discovered that the existing City Code did not expressly prohibit
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"behind the fence " competitors from selling electric service to customers if there is no need to cross
over City right-of-way or other- City property. The potential loss of large customers could adversely
affect both Platte River and the City. The knowledge that this risk exists required that the risk be
reported to bond holders.
The current City code states:
Sec. 26-441. Franchise required
"Except as otherwise provided herein, it shall be unlawful to furnish or offer to
furnish to any property in the City any electrical service transmitted through wires
installed or maintained in, on, under or over any street, alley, sidewalk, easement or
other public place in the City unless the City Council has, by ordinance, granted a
franchise allowing such service. Any such franchise shall comply with all provisions
of the Charter and shall specify the area of the City in which such service is
permitted. "
The current Code makes it unlawful to provide electrical service to any property in the City through
wires or equipment in any public right-of-way without a franchise agreement with the City. The
Code does not specifically address service from another entity, only that service cannot be provided
by facilities on public property.
The existing Code would also allow third party generation developers to install on -site generation
without interaction or coordination with the City, unless they wished to interconnect with the City's
system.
The proposed ordinance clearly states that no other entity can provide electric service to customers
within City limits except under specVic conditions that are designed to advance the installation and
development of reneivable resources and to ensure continued reliability of the Fort Collins electric
system.
The second stated goal is to bring the Fort Collins Code into line with Platte River bond holder
expectations. Previous bond purchasers had the expectation that no retail competition existed in
the areas served by the Platte River member cities. The discovery of the potential for retail
competition under the current Code requires disclosure of'this information to the bond holders, if
not remedied.
The issue was also brought to the attention of the bond rating agencies and potential buyers during
Platte River's recent bond issuance in March gf2009. The Bond Issue Book detailing Platte River's
offering included thefollowing disclosure:
"In 2008 Fort Collins became aware that a possible loophole existed in its service
territory protection code provision. Under the current language of this code
provision it may be possible for a competitive provider to site a generator on the
property ofa municipal customer and provide retail electric service to that customer
provided the facilities of the competitive provider do not cross municipal streets and
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rights -of -way. An amended code provision will be considered by the governing body
of Fort Collins in early 2009. "
Although this issue did not have a negative impact on Platte River's recent bond issuance, the
concerns expressed during presentations to the City, the Electric Board and the Natural Resource
Advisory Board were legitimate concerns that needed to be disclosed in the discussion.
As noted, the third goal in developing the proposed code change is to provide support for the
development of renewable generation within the City. _
Under the proposed Code change, there is no restriction on the ability of a customer to develop any
level ofgeneration for the customer's own use offgrid.
Customers may also install generation for their use and tenants' use on their own property. This
scenario may fall under the Public Utilities Commission rules on master metering. The master
metering rules provide protection to consumers that are sub -metered. The rules insure that the
landlord (or master meter operator) does not add additional charges or increase the cost of energy
to the tenant.
With the proposed Code change, customers may also install generation for their own use and cross
City right-of-way, if approved by City Council through a revocable permit. An example of a
potential situation where this applies is at CSU. CSU is currently developing a new parking
structure on Prospect Avenue. The structure is separated from campus by Lake Street, a public
right-of-way. CSU intends to install a solar array on the roof of this structure. The current Code
would either require CSU to apply for a fi-anchise in order to cross the right-of-way or require the
City to abandon the street and turn it over to CSU. The proposed ordinance will allow Council to
grant a permit to CSU to allow the interconnection of its array with the campus electrical system.
The proposed change will also allow the retail sale of energy to a City customer from a qualifying
renewable resource by a third -party entity provided certain conditions are met. The high initial
capital cost of installing a photovoltaic system can make it difficult for either a homeowner or a
business to install a system. Several companies offer third party turn key financing and installation
for customers that enter into long term power purchase contracts. The proposed ordinance will
allow third -party generators to install systems up to 10 kWfor residential customers and 1,000 kW
for commercial customers. Above 1,000 kW the proposed Code change requires Platte River, the
City, the third party generator and the customer to enter into a buy sell agreement within which
Platte River will commit to the purchase of the energy generated by the third parry for resale to the
City and then to the customer at the price agreed upon between the third party generator- and the
customer. This allows Platte River to stay within the chain of title of the energy and to remain as
the sole provider of energy to the City for levels greater than those established in this ordinance. If
the ordinance is approved on First Reading, staff will bringforivard a third parry service agreement
for Council consideration on .June 2.
Utilities currently remit in lieu of taxes and franchise.fees 6% ofthe revenues collected. Discussions
with the Electric Board and Natural Resource Advisory Board related to the collection of Payments
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in Lieu of Taxes (PILOTs) from an entity selling energy at the retail level received two different
recommendations. The Electric Board recommends the City waive the collection of PILOT's to
insure that the City is providing the maximum incentive towards the installation of renewable
resources. The Natural Resources Advisory Board recommends the City collect PILOTS for retail
energy sales. Collection of PILOTS would protect funds currently collected by the City's General
l-'und. Staff also recommends that any entity operating as a retail provider within the City pay
PILOTS. The impact on General Fund revenues for a residential installation would amount to
approximately $0.004 per kilowatt hour. This would amount to $13.53 per year fora residence with
a 2.5 kWsystem. It is more difficult to predict what the actual financial impact would be ifPILO7s
were waived for commercial installations because of the variables involved in peak demand and
coincident demand billing. Modeling of a 1,000 kW system for one of the City's large industrial
customers indicates that the annual PILOTS lost would be $8, 600 per year. "
Steve Catanach, Light and Power Operations Manager, stated the proposed Code changes define the
City of Fort Collins Light and Power Utility as the sole provider of electric service within city limits.
The changes also bring the Code in line with bondholder expectations and to support the installation
of renewable generation, including generation owned by a third party selling electricity at retail in
the city limits. The current Code requires any electric or service provider crossing a pub] icly-owned
right-of-way to obtain a franchise agreement from the City. The proposed Code language will align
the Code language with language used by other utilities across the state. The proposed Code change
will not affect any customers installing renewables off grid, installing renewables from their own use
or customer generators. that supply renewable energy to a tenant on their property or adjacent
properties. The Code change will allow a revocable permit to be granted to a customer who provides
renewable energy across a right-of-way. Another proposed Code change will allow a third party
renewable generator to sell electricity at retail within the City's service territory. Residential
customers will be allowed to install generators on their homes up to 10 kW. Commercial customers
will be allowed to generate up to 1000 kW.
Eric Sutherland, 631 LaPorte Avenue, stated the Code change that defines Fort Collins Light and
Power Utility as the sole provider of electric service within city limits is not necessary because the
City Charter already grants the City that right. He urged Council not to adopt the Ordinance.
Phil Friedman, 201 South Grant, stated the Ordinance takes a prudent approach to address issues that
might be forthcoming with additional small scale distributive generation. The payments in -lieu of
taxes should not be suspended from third party purchase agreements.
Bruce Lockhart, 2500 East Harmony, stated allowing different providers of electricity in one market
would reduce the cost of energy through competition. He urged Council not to adopt the Ordinance.
Councilmember Ohlson asked for clarification of the recommendations from the Electric Board and
the Natural Resources Advisory Board. The minutes provided from the Boards do not clearly state
the vote of the Boards.
Councihnember Ohlson asked why the issue of bondholder expectations was raised because the
Platte River bonds sold very quickly without the Code change in place. Catanach stated the issue
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May 19, 2009.
of retail competition that did exist in the areas served by the Platte River member cities was raised
before the bonds were sold. The issue did not affect the sale of the bonds, but the potential for retail
competition under the current Code requires disclosure of this information to the bondholders and
needs to be corrected. Brian Moeck, Platte River Power Authority General Manager, stated a
loophole exists in the current Code that does allow retail competition, under some circumstances.
Platte River has an all -requirements contract with the City. Platte River did disclose the issue to
potential bondholders and stated the issue was being addressed by the City. The bonds did sell
rapidly for many reasons but continuing to allow retail competition could affect future bond ratings.
Councilmember Roy asked if allowing retail competition would create a more competitive
environment with the use of new energy technologies and make the bonds more attractive. Moeck
stated having a retail competition could adversely affect the bond rating of Platte River. Retail
competition in other states, such as Texas, has not brought about lower costs and has brought about
many regulatory problems.
Mayor Hutchinson asked if adopting the Code change that states the City's Light and Power Utility
will be the sole provider of electric service within city limits will have any adverse effects. Moeck
stated he did not foresee any adverse effects.
Councilmember Ohlson asked Mr. Sutherland for an explanation of his concerns about the proposed
Code changes. Mr. Sutherland stated State law and the City's Charter already give an iron -clad
monopoly for the City Utility to offer electric service to its customers. Tile only issue that needs to
be resolved is creation of regulations that allow distributed energy generation to thrive in Fort
Collins. The proposed regulations are not the best model for the City to follow. He has spoken with
the bond rating company and was told the issue of retail competition would not affect the bond
ratings, so Council did not need to consider that change.
Councilmember Ohlson asked for staffs opinion on whether the City's Charter already gives the
City a monopoly. Carrie Daggett, Deputy City Attorney, stated the City has very broad power and
the Charter does give the City much authority to control the activities of persons who are crossing
City rights -of -way. The Public Utilities Commission also certifies public utilities. There is a
category of provider that operates not as a public utility but as a contract utility provider, not
providing service to the general public, but to selected customers on a contract basis. Potential
circumstances exist where such a utility provider could provide service to a large customer without
crossing City right-of-way. The proposed Code change is intended to ensure an opening is not left
for those kinds of services to be created without any City role in regulating and addressing
interconnection with the City's system.
Councilmember Troxell suggested the word "renewable' be removed from the second Whereas
clause so that it reads: "... are appearing in the energy market" to reflect the total energy market.
Councilmember Troxell stated the Ordinance provides for distributed generation and allows
renewable energy development within the city. He asked how the Utility will manage the generation
systems that will appear in neighborhoods and at what point the numbers of generators will impact
the'entire system. Catanach stated the Utility is already developing a model to determine the impact
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May 19, 2009
of renewable generators on the system. In a neighborhood, several houses generating at maximum
capacity could overtax the transformer for that area. Staff is working with a consultant to identify
saturation levels and will review the Code as technologies change and the levels of distributed energy
increase.
Councilmember Troxell asked for clarification of the definition of "High voltage transmission" in
Section 7 of the Ordinance. Catanach stated the definition is a modified version of an older
definition that used the word "impulses." Division 2 has been clarified to show it relates to high
voltage transmission facilities.
Councilmember Troxell stated the City has a policy of undergrounding electric cables and he asked
if the Ordinance will allow any above -ground poles and wires. Catanach stated some areas that are
annexed into the city have above ground utilities already in place. Utilities has the goal of
undergrounding those cables, but it takes time to allocate the funding needed to do the
undergrounding.
Councilmember Roy asked for an estimate of the amount of payment in -lieu of taxes (PILOTS) that
would be waived over a two-year period. Catanach stated a few hundred dollars would have been
waived from the systems already in place. In the future, the impact to the General Fund could be
several thousand dollars as systems expand. Staff recommends collection of payment in -lieu of
taxes.
Councilmember Roy asked if the cost of photovoltaic will decrease as more systems are installed.
Catanach stated breakthroughs in photovoltaic technology will decrease the cost and increase the
production capacity. Review of the Ordinance periodically to address the impact of new
technologies on the City's system will be important.
Councilmember Ohlson asked if the Ordinance has been reviewed by any consultant. Catanach
stated no consultant has been involved.
Councilmember Roy asked if the member cities of Platte River were also considering similar
ordinances and if the member cities were home ruled. Catanach stated Longmont has already taken
action to ensure they are sole providers. The proposed changes have been discussed with the Platte
River Board of Directors. Additionally, Platter River has made decisions in support of the Ordinance
such as removing themselves from the need of any buy -sell agreement up to 1000 kW of production.
Those decisions apply to the other member cities, as well. Jenny Lopez-Filkins, Assistant City
Attorney, stated the member cities are home ruled and each member municipality has ordinances that
clearly set service territories. Daggett stated Estes Park is not a home rule town. Loveland has
language that addresses service areas in its Code.
Councilmember Troxell made a motion, seconded by Councilmember Manvel, to adopt Ordinance
No. 061, 2009 on First Reading with an amendment that removes the word "renewable' from the
second Whereas clause.
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May 19, 2009
Councilmember Roy asked for the addition of PILOTS to the ordinance. Catanach stated the
ordinance will allow the Utility to charge PILOTs or the equivalent sales or use tax through third
party retail sales. Daggett stated the requirement for PILOTs is in a different section of Chapter 26
of City Code and applies to all charges to electric customers. Catanach stated a third party generator
would be selling electricity to the customer that would be offsetting the energy delivered by the City
of Fort Collins to that customer. Staff recommends charges tax on the electricity sales of the third
party generator. The Electric Board recommended not collecting PILOTs. The Natural Resources
Advisory Board and staff recommend collection of PILOTs, so no change is needed to the section
in Chapter 26 that discusses PILOTS.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohl son, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Ordinance No. 062, 2009,
Amending Chapter 26, Article VI of the City Code Relating
to Net Metered Electric Service, Adopted on First Reading
The following is staff's memorandum for this item.
"EXECUTIVE SUMMARY
The proposed addition to Chapter 26, Article VI the City Code defines the net metering requirements
for qualifying renewable generation facilities. In light of'recent technological and legislative
developments, the City of Fort Collins intends to formalize its net metering program. Pursuant to
a pilot program, the City of Fort Collins has offered net metering services to its customers since
2005 through special services contracts. The intent of this amendment to the City Code is to codify
the net metering rate in the Utility's existing rates.
BACKGROUND
Over the course ofseveral years, sta/fhas developed a net metering program to establish a standard
approach to allow customers to generate renewable energy and use that energy to reduce energy
purchased from the City. A pilot program was established in 2005 and the City currently has 32
participating customers.
Net metering is defined as provision of service to a customer that has a qualifying renewable
generation resource where the energy generated by that customer that is delivered to the local
electric distribution grid is used to o�fset energy provided by the electric distributions utility to that
customer over a defined period of time.
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May 19, 2009
The solid line in the graph represents a residential customer's annual electrical consumption. The
dashed line represents generation from a 5 kilowatt solar array and the dashed -dotted line
represents the net energy delivered to the customer or back to the utility over the course of the year.
Under a net metering service rate the customer's generation would directly offset their usage
between monthly billing cycles. Any excess generation delivered back to the utility will be credited
to the customer and applied towards subsequent bills. For example, the customer above generated
excess energy in March, April, May, June and October. The excess energy generated will be
credited towards the usage amount shown on the customer's bills in subsequent months, effectively
reducing subsequent utility bills. Ai the end of the year, should the customer have generated more
energy than they received, the utility will buy back the excess energy.
Table 1. — Sample net metering service for a residential customer with 5 kW qualifying system
Month
Bill
kWh Use
kWh Ger
Net
New Bill
Jan
$ 52.53
748
562
186
$ 16.01
Feb
$ 55.59
795
561
234
$ 19.14
Mar
$ 45.43
639
656
(17)
$ 3.91
Apr
$ 40.17
558
643
(85)
$ 3.91
May
$ 37.95
524
669
(145)
$ 3.91
Jun
$ 43.79
614
666
(52)
$ 3.91
Jul
$ 55.69
797
672
-
$ 3.91
Aug
$ 59.00
848
685
-
$ 3.91
Sep
$ 5208.
741
649
81
$ 9.17
Oct
$ 40.22
559
640
81)
$ 3.91
Nov
$ 42.82
599
508
10
$ 4.55
Dec
$ 53.01
756
531
225
$ 18.51
Totals
$ 578.27
1 8,177
1 7,442
735
$ 94.74
Table I is an example of how the customer- with a 5 kilowatt system would have been billed during
the year. As noted, the customer was a net generator between March and June which offset
purchases during July and August. In October, the customer generated 81 kilowatts -hours which
offset all but 10 kilowatt-hours in November. The $'3.91 charge shown during months where energy
was either negative or zero is the Fort Collins Utilities standard fixed charge, which covers a
portion of the costs incurred through meter reading, customer service and billing functions. The
Service Charge is levied whether any energy is consumed or not.
If the modeled customer had been a net generator over the course of the year as shown in Table 2,
which models installation of a 7 kilowatt system for the same customer, then the Utility would have
"balanced the books "at the end of the year and paid the customer for the el(cess energy at a rate
per kilowatt hour consistent with the energy rate paid by that customer.
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May 19, 2009
Table 2. — Sample net metering service for a residential customer with 7 kW
qualifying system
Month
Bill
kWh Use
kWh Gen
Net
New Bill
Jan
$ 52.53
748
756
8
$ 3.91
Feb
$ 55.59
795
715
80
$ 9.13
Mar
$ 45.43
639
889
(250)
$ 3.91
Apr
$ 40.17
558
849
291
$ 3.91
May
I $ 37.95
524
885
361
$ 3.91
Jun
$ 43.79
614
883
269
$ 3.91
Jul
$ 55.69
797
898
(101)
$ 3.91
Aug
$ 59.00
848
903
(55)
$ 3.91
Sep
$ 52.08
741
871
130
$ 3.91
Oct
$ 40.22
1 559
1 848
289
$ 3.91
Nov
$ 42.82
1 599
1 686
(87)
$ 3.91
Dec
$ 53.01
1 756
1 710
-
1 $ 3.91
Totals
$ 578.27
1 8,177
1 9,893
(1,716)1
52.14
Under the State's net metering statute, regulated utilities are required to buy back excess generation
at the end of the year at the average incremental cost. This is equivalent to the Platte River
wholesale rate of S0.0177 per kilowatt-hour. The statute states that municipally owned utilities
"Shall credit excess generation to the customer -generator in a manner deemed appropriate by the
municipally owned utility. " In order to provide a strong incentive to help facilitate the installation
and development of renewable resources, the Electric Board, Natural Resources Advisory Board
and staff recommend that the City purchase the excess energy generated at the retail energy rate for
the specific customer's rate class. In the example above, the customer is billed under the Residential
energy rate. The rate has a S3.91 fixed charge and a SO. 06498 per kilowatt-hour charge. At the end
of the annual billing period the 1, 716 kilowatt-hours of excess energy generated by the customer
would have been purchased for S111.51. Please note that in the examples above, the more
significant savings realized by the customer is through the offset energy not used over the course of
the year, not the realized gain at the end of the year.
A State statute requires utilities to provide net metering up to 10 kilowatts for residential and 25
kilowatts for commercial/industrial customers. The Electric Board, Natural Resources Advisory
Board and staff recommend that the City establish a level of 1 megawatt (1,000 kilowatts) as the
adopted maximum. Above 1, 000 kilowatts net metering may still apply, but will have to be discussed
with the customer in association with Platte River's Tariff 3. Tariff 3 addresses generation above
1,000 kilowatts and the potential need for ancillary services such as back-up capacity, metering,
system protection, operational coordination, voltage support and reporting must be addressed. An
installation above 1,000 kilowatts will not necessarily be excluded from net metering but additional
coordination must be addressed.
The Cities of Longmont and Loveland have both adopted rates that provide net metering up to 50
kilowatts. Longnont purchases the excess generation at the customer's retail rate and Loveland
purchases it at its avoided cost of $0.021 per kilowatt-hour. The Town of Estes Park has adopted
10 kW for residential and 25 kff�for commercial customers, as established in the State legislation.
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May 19, 2009
Estes Park buys back the excess generation at the end of the year for its avoided cost of 50.021 per
kilowatt -hour -
During the January 13, 2009, work session, Council asked what other utilities are doing in support
ofrenewoble generation development including net metering, excess generation purchases, rebates
and REC purchases. The attached map (Attachment 1) indicates which states have adopted net
metering requirements, which states have voluntary programs and which states have no net metering
policy. As seen, 40 states and Washington DC have adopted a net metering policy. The limits
established vary widely. The lowest limits shown on the map are those legislated by Colorado for
municipalities and cooperatives. The largest levels are those states that have no established
maximum. The attached table (Attachment 2) provides additional detail on each of the state
programs along with monthly and annual compensation. As shown, the level ofreimbursement for
excess energy generated varies widely. Some states buy back at retail levels, other at the avoided
generation costs and others do not purchase excess energy at the end of the year but instead simply
reset the level to zero.
Attachment 3 is a list of the incentives for renewables and energy efficiency programs of by
utilities, municipalities, and private entities within the State of Colorado. The information was
found at wiviv.dsireusa.org, which provides an extensive database of federal, state and local
incentives for renewables and efficiency. Programs offered both throughout the state and the nation
vary widely.
The net metering statute also requires municipalities to adopt and post interconnection standards
that are functionally similar to those adopted by the Public Utilities Commission. The City's
Interconnection requirements were developed utilizing the International Electronic and Electrical
Engineers (IEEE) standard 1547, approved in June 2003, as a model. TI7e PUC reguirenhents ,,were
also developed utilizing IEEE 1547. Additionally, Utility engineers are currently working with Dr.
Keith Malmedal and Dr. PX. Sen of NEI Inc. to revise the Utilities existing interconnection
standards. This work will also include an analysis of the level of risk different sizes and types of
installations pose to the operations ofneighboring customers and the type ofprotection that should
be provided to insure that there is no negative impact to those customers.
Staff, the Electric Board, and the Natural Resources Advisory Board believe that the above
recommendations provide a strong incentive for the installation and development of renewable
resources within the City. It is also recommend that the net metering rate either have a sunset
provision or a requirement that the rate is re-evaluated in the next three years or sooner. If
renewable resources installations are widespread throughout the system, then it is prudent to
evaluate both the financial and operational impact these systems are having on the City.
Additionally, changes in the equipment and technology available, the incentives provided byfederal,
state and local entities could change significantly in the next three to five years making review
prudent. "
Steve Catanach, Light and Power Operations Manager, stated net metering will allow a customer
generate energy and any excess energy produced will be added to the City's system and the customer
will receive a credit for the excess energy. The credit is carried forward month by month. The
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May 19, 2009
customers account is reviewed once a year to "zero out' the account. If the customer has generated
more energy than he has used, the Utility will purchase the electricity. The recommendation from
the Natural Resources Advisory Board and the Electric Board is to purchase excess energy produced
at retail rate of the customer and to support net metering for systems up to 1000 kW.
Eric Sutherland, 631 LaPorte, stated State law requires all service territories over 5000 metered
customers to provide net metering. Fort Collins is the last service territory in the State to adopt net
metering. He believed the cap of 1000 kW was too high and should be set at a level adjusted for
each system.
Phil Friedman, 201 South Grant, stated the growth of photo -voltaic systems on rooftops will not
increase at a rapid pace in the current economic times but it is important to set a net metering policy
now.
Bruce Lockhart, 2500 East Harmony, opposed the adoption of the Ordinance because the energy
produced by net metering would be unstable and would adversely affect the electric grid.
Councilmember Kottwitz asked for more information about the cap on net metering systems of 1000
kW and if the energy from photo voltaic systems would be unreliable. Catanach stated the intent of
the Utilities is not to stand in the way of development and the limiting factor in development of a
renewable resource is the customer's infrastructure. The ability of a customer to feed energy back
into the City's system will be limited by the infrastructure the customer has in place. Renewable
resources will be intermittent because they are limited to when the sun shines and the wind blows.
Electricity is a commodity that is produced the moment the consumer asks for it. The demand from
customers is constantly changing. The current technology of the grid allows a 15% reserve that is
ready to compensate for the loss of production or increase in load. The reserve helps support
renewable production, up to a certain capacity. In the future, the implementation of smart grid
technology will allow better control of distributed resources. The efficiency of the system has been
greatly improved and can compensate for larger levels of renewables. The 1000 kW limit provides
the maximum incentive for customers to invest in renewable energy.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. 062, 2009 on First Reading.
Councihmember Ohlson asked why Fort Collins is the last community to adopt a net metering policy.
Catanach stated Fort Collins has been providing net metering to its renewable customers since 2005.
Time was needed for staff to gather Council feedback at a work session and to answer all questions
raised. Staff did not believe there was any downside to the delay because the City already offers net
metering.
Councilmember Manvel asked why language is repeated in multiple sections of the ordinance.
Daggett stated the ordinance contains repeat language to minimize the potential for errors by the
codifier. The language is added in multiple sections because the rate schedules in Chapter 26 for
the Electric Utility contains a comprehensive set of requirements for each rate category and the
repeat language is provided for customer convenience so they can look at a rate schedule and see the
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May 19, 2009
different pieces that apply to a particular category of service. Catanach state the ordinance language
references particular kilowatt/hour charges related to each rate. When the rates change and the
designated lettering changes, the language is included in each rate instead of one generic reference.
Councilmember Roy stated the other member cities of Platte River have adopted varying limits for
the amount of excess energy a system can put into Platte River's system. It is difficult to make good
decisions about the power plant when each member sets such different caps.
Mayor Hutchinson noted the four cities that comprise Platte River have different values concerning
investments in renewables. Platte River has been able to accommodate those differences and work
with each member city. Fort Collins is ahead of the other cities in encouraging the use of
renewables. Requiring the four cities to reach agreement on some issues might bring the lowest
common denominator for some issues.
Councilmember Manvel stated the decision to encourage the use of renewables is not based on cost.
Council has set a goal to reduce the community's emissions and reducing the use of coal -powered
energy generation is one method to reduce those emissions.
Councilmember Troxell stated net metering is a key building block to providing reliable electric
service. FortZed is one project developed to demonstrate the reduction by 20-30% of peak usage by
using installed distributed energy resources that are already in place.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, Manvel, Ohison, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Ordinance No. 051, 2009,
Amending the City Code Relating to Enforcement
of Occupancy Limits, Adopted on Second Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
This Ordinance, adopted on First Reading on May 5, 2009 by a vote of 5-2 (nays: Kottwitz, Troxell),
amends the City Code to eliminate the existing requirement that an opportunity be given to property
owners to cure occupancy violations prior- to the issuance of a citation. City Code Section 19-65(a)
(1) sets forth the procedures to be used by the City's Code enforcement officers in enforcing civil
infractions, including the occupancy regulation. The proposed amendment to this Section authorizes
enforcement staff to serve civil citations on violators of the occupancy limit regulation without first
serving a notice of violation. Elimination of the notice requirement will apply to all violators of the
occupancy regulation, both first-time offenses and repeat offenses. "
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May 19, 2009
Jeff Scheick, Director of Planning, Development and Transportation, stated Council chose to adopt
Option 1 of the Ordinance on First Reading, which removed the requirement to give notice prior to
issuing a citation for an occupancy violation. The revision enhances the enforcement of the existing
occupancy ordinance by allowing staff to issue a citation without prior notice, when appropriate.
Katie Freudenthall, Director of Community Affairs, ASCSU, urged Council not to adopt the
ordinance. Removing the notice requirement takes away due process and gives too much discretion
to City staff.
Eric Sutherland, 631 LaPorte, stated the occupancy ordinance is not fair to some segments of the
community. He urged Council not to adopt the Ordinance.
Councilmember Troxel I made a motion, seconded by Councilmember Kottwitz, to postpone Second
Reading of Ordinance No. 051, 2009 until the two-year review is completed.
Councilmember "froxell stated changes should not be made to the occupancy ordinance at the same
time that the ordinance is under review and stakeholder groups are meeting to provide input about
the ordinance.
Councilmember Manvel stated staff believes changing the enforcement of the occupancy ordinance
will make the ordinance more effective. It will be many months before any other changes to the
ordinance will be considered and this change to enforcement is needed now.
Councilmember Kottwitz stated addressing this issue at this time when most ofCSU is not in session
is not fair to students and the ordinance should not be considered until after the two-year review is
completed.
Councilmember Ohlson noted First Reading of the Ordinance was held when CSU was in session.
Any changes to the occupancy ordinance will not occur for many months and enforcement of the
ordinance will always be of primary importance. Staff is impeded in its enforcement of the
ordinance currently in place and allowing this change to the ordinance will allow adequate
enforcement.
Councilmember Troxell stated some have claimed that the occupancy ordinance has improved the
quality of life for neighborhoods, even without this change to enforcement, and postponement ofthis
ordinance should not decrease neighborhood quality of life.
Councilmember Manvel stated the changes in the proposed ordinance will not affect those renters
who are not in violation of the occupancy ordinance.
Mayor Hutchinson stated the City is committed to doing a thorough public outreach, research and
by staff of the occupancy ordinance that will culminate in October. The changes to enforcement that
will be authorized by this ordinance do not relate to the occupancy policy.
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May 19, 2009
The vote on the motion was as follows: Yeas: Kottwitz, and Troxell. Nays: Hutchinson, Manvel,
Ohlson, Poppaw, and Roy.
THE MOTION WAS DEFEATED.
Councilmember Roy made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No.
051, 2009 on Second Reading.
Councilmember Kottwitz stated the stakeholder groups were not given an opportunity to express
their opinions about the enforcement of the occupancy ordinance. The numberof violations has been
greatly reduced without the adoption of this ordinance.
Councilmember Troxell stated the change to enforcement directly impacts CSU students who are
not currently in session and are not here to provide input.
Councilmember Roy stated the zoning of neighborhoods is important to create affordable living in
Fort Collins to control the intensity and use of an area. Tools for enforcement of the current
occupancy ordinance are needed to continue to improve the quality of life in neighborhoods.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: Kottwitz, Troxell.
THE MOTION CARRIED.
Ordinance No. 052, 2009,
Amending Section 12-19 and Article XV of Chapter 15 of the City Code
Relating to Trash Collection, Adopted on Second Reading
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
Ordinance No. 052, 2009, adopted on First Reading on May 5, 2009 by a vote of 4-3 (nays:
Hutchinson, Kottwitz, Troxell), makes several significant changes to City Code, as well as several
"housekeeping" changes to Chapter 15, "Solid Waste Collection and Recycling Set -vices" and
Chapter 12, "Collection and Disposal of Refuse, Rubbish and Recyclables. " The -goals of these
Code changes are to increase the pricing incentive for solid waste customers to reduce trash and
improve recycling diversion rates.
For Second Reading, the proposed Code language requiring poly -cart recycling containers on page
6 of the Ordinance has been revised to make more clear the intended meaning of the requirement
with respect to container size. "
City Manager Atteberry stated the ordinance being considered by Council is not about establishing
a pilot trash district. Consideration of a pilot trash district will be held on July 21.
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May 19, 2009
Ann Turnquist, Policy and Project -Manager, stated the City is looking for ways to decrease the
impact of trash trucks on neighborhoods and improve recycling. The current residential recycling
rate is between 13 and 20% and many of the proposed Code changes focus on ways to improve the
recycling rates, including pay -as -you -throw pricing. Also included is a requirement for trash haulers
to provide large recycling poly -carts.
Mark Loyoso, Gallegos Sanitation General Manager, requested Council not consider adoption of
pay -as -you -throw and keep the flat rate, instead. A flat rate is based on fixed operational costs and
is fair to all customers. A fuel surcharge is needed to account for fluctuating fuel prices. The poly -
carts will cost more than City staff estimates and changing the Code to require the trash haulers to
furnish the carts to customers places an unfair burden on the haulers.
Lucia Liley, 300 South Howes, on behalf of the local trash hauling companies, stated Loveland's
recycling rates are 55-60% as compared to Fort Collins' rate of 14%. Loveland's trash hauler
regulations are similar to what Fort Collins currently has in place. Boulder also has higher recycling
rates but has trash hauler regulations that are similar to the current regulations in Fort Collins.
Loveland and Boulder provide more recycling education to their citizens and offer free yard waste
pickup which is largely responsible for keeping the recycling rates above 50%. The flat rate system
currently in place fairly allocates all fixed operational costs among the customers. Changing the
system to pay -as -you -throw unfairly places greater costs on large group households. The proposed
regulations will unfairly impact some customers and will not help the City reach its goal of reducing
trash and increasing recycling.
Ray Meyer, General Manager of Ram Waste Systems, stated a fuel surcharge is needed to offset
rising fuel costs. Pay -as -you -throw unfairly penalizes larger households, even though a larger
household might be recycling more than a smaller household.
John Puma, Ram Waste Systems owner, stated the cost of $45 for each poly -cart was not accurately
presented by City staff. The actual cost to the haulers will be $65-70, which includes shipping from
the manufacturer, assembly, delivery to the customer, taxes and maintenance. Staff indicated the
haulers' cost for the carts would be offset by allowing recycling pickup to change from once a week
to biweekly pickup, but this does not take into account the additional cost incurred by the haulers
in collecting and servicing the carts. The time that will be needed to collect the recyclables will be
increased, even though pickup will occur less frequently. The recycling trucks currently used by the
trash haulers are not designed to handle the larger poly -carts.
Matt Gallegos, Gallegos Sanitation, stated the pay -as -you -throw regulation, combined with the
additional requirements to provide large recycling containers and the elimination of the fuel
surcharge will significantly increase service costs at all levels and customer rates will increase.
Patty Kennedy, 559 South Saint Louis Avenue, Loveland, S & S Sanitation, stated her company has
concerns with elimination of the flat rate and the costs surrounding the requirement to provide larger
recycling carts. The burden and cost of recycling should not be placed on the trash haulers.
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May 19, 2009
Stacy Lynne, 216 Park Street, urged Council not to adopt the Ordinance because it will penalize
families.
Dan DiWaard, Northern Colorado Waste Management Senior District Manager, stated fuel
surcharges are necessary for the trash haulers to recoup their costs. The poly -carts will be much
more expensive than staff has indicated.
Bruce Lockhart, 2500 East Harmony, urged Council not to adopt the proposed Ordinance.
Ray Harvey, 301 Peterson, stated recycling scrap steel and aluminum makes sense because it is
economically feasible to recycle but recycling other items is not economical. Many recycling
processes harm the environment. He urged Council not to adopt the Ordinance.
Rudy Zitti, 1626 Fantail Court, asked for the data used to predict reduced fuel costs and reduced
impacts to streets with the creation of trash districts.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Mayor Hutchinson asked forany impacts of postponing Second Readingofthis Ordinance until July
21, when the pilot trash servicing district plan will be considered. Tumquist stated it would be
possible to change some of the implementation dates that are in the Ordinance, but staff does not
recommend postponement of the proposed Code changes. One implementation date relates to the
change in the rate structure and is set to begin July 1, 2009. The other implementation date relates
to the requirement of poly -carts and is set to begin January I, 2010.
Councilmember Troxell asked why Loveland and Boulder have much higher diversion rates with
trash regulations in place that are similar to the current ones in the Fort Collins Code. Susie Gordon,
Senior Environmental Planner, stated Loveland provides 95% of the trash hauling services for its
residential customers. Boulder also has a single trash hauler providing trash services and has
aggressive pay -as -you -throw rates. Boulder and Loveland both provide curbside yard waste hauling.
Boulder has an added.sales tax that is used for recycling purposes.
Councilmember Troxell asked if other communities use the same accounting methods to determine
recycling rates. Gordon stated most communities follow the Environmental Protection Agency's
guidelines that exclude industrial materials. Tumquist noted a significant part of the wastestream
is yard waste. Loveland and Boulder include yard waste as part of their recycling services.
Councilmember Manvel asked if Boulder and Loveland use poly -carts for recyclables. Gordon
answered in the affirmative.
Councilmember Kottwitz asked why yard waste was not included in the proposed ordinance.
Tumquist stated staff drafted the ordinance based on direction provided by Council at work sessions.
Yard waste was not one of the high priority items indicated by Council. Removing yard waste from
the wastestream will significantly impact the diversion rate but will also greatly impact citizens.
Councilmember Kottwitz asked if composting was considered as part of increasing the diversion
May 19, 2009
rate, along with more education for the community. Gordon stated Loveland applies a monthly
environmental fee to households that helps pay for the yard waste recycling and composting done
by Loveland. Fort Collins has many educational programs through the Natural Resources
Department.
Councilmember Kottwitz asked about the marking requirements for trash trucks and the cost to the
haulers to mark their trucks. Tumquist stated the Code change will require trash trucks that are used
to collect recyclables to be clearly marked to show recyclables are not being dumped into the
wastestream. Not all trucks will need to be marked and haulers will probably use removable signage
so a trash truck could be used one week for recycling and another week for trash hauling.
Councilmember Manvel asked what percentage of administrative costs applied to fuel. Tumquist
stated the trash haulers have indicated fuel costs range from 3-10% of their total costs.
Councilmember Troxell asked if going to a straight pay -as -you -throw fee rate will penalize larger
families. Tumquist stated a larger household will pay a greater price but the more a household
recycles, the less the household will pay.
Councilmember Poppaw noted the rates are not increasing per capita, but a household will pay more
if it throws more trash away.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Ordinance No.
052, 2009, on Second Reading.
Councilmember Kottwitz made a motion, seconded by Councilmember Troxell, to postpone
consideration of Ordinance No. 052, 2009, on Second Reading until July 21.
Councilmember Kottwitz stated the proposed ordinance will affect the entire community and more
clarification is needed before Council has its final consideration, which should be delayed until July
21, when the pilot trash servicing district plan is discussed. Further discussion is needed about yard
waste, allowing a fuel surcharge and opting into the program using poly -carts for recycling.
Councilmember Ohlson noted many months have already been spent in developing the proposed
changes to City Code and it was time to move forward.
Councilmember Poppaw stated the issue has been under discussion and studied by the City for years
and now is the time to act. The Code changes should not be delayed.
Councilmember Troxell stated many questions about this issue still have not been answered and
more time was needed to include all input from citizens to have a better solution than the ordinance
as it is currently written.
Mayor Hutchinson noted some questions have been raised by citizens that have not been answered
by staff. He supported postponement of second reading.
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The vote on the motion to postpone Second Reading of Ordinance No. 052, 2009 was as follows:
Yeas: Hutchinson, Kottwitz, and Troxell. Nays: Marvel, Ohlson, Poppaw, Roy.
THE MOTION WAS DEFEATED.
Councilmember Manvel stated a fuel surcharge should not be allowed because it would be a fixed
fee and the pay -as -you -throw plan is intended to be purely volume based.
Councilmember Kottwitz stated other avenues to reducing the wastestream and improving recycling
rates should be considered. The proposed ordinance will require local trash haulers to invest large
amounts of funds and will raise the rates of the customers.
Councilmember Ohlson stated the proposed ordinance is result of many months of work, public
outreach and much compromise. Pay -as -you -throw pricing is the way to reduce the solid
wastestream and encourage more recycling. The City has a solid waste reduction plan and a Climate
Action Plan with goals that cannot be ignored. The public interest will be served with these Code
changes.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to amend Section
8 of Ordinance No. 052, 2009, to change the date from July 1, 2009 to September 1, 2009.
Councilmember Manvel noted the trash haulers have stated they send their bills out on a quarterly
basis. Changing the date will help the haulers make the billing changes required by the Code
changes in a timely fashion.
The vote on the motion to change the date was as follows: Yeas: Hutchinson, Kottwitz, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Troxell stated the original issue was presented as too many trash trucks in
neighborhoods, safety and noise. The proposed ordinance does not address that issue. Recycling
is not the only answer because many recyclables are shipped to China, which leaves a large carbon
footprint and does not accomplish any savings. A wastestream analysis is needed that would
incorporate new technologies. The proposed Ordinance targets local businesses and has many
unintended consequences that will affect citizens.
Councilmember Ohlson stated long term data is needed and he asked staff to submit a budget offer
that would develop a wastestream analysis that would show what is being generated, where it is
going, residential and commercial waste over the next two years. City Manager Atteberry stated the
data is not available and some of the proposed Code changes will enable staff to gather the data
requested.
Councilmember Manvel stated more regulation of trash hauling is needed to increase recycling rates.
Banning yard waste and cardboard from the wastestream will be other major steps to be considered
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May 19, 2009
later. Steps must be taken to enable the City to reach goals set in the wastestream reduction plan and
the Climate Action Plan. The pay -as -you -throw pricing should not raise costs but should redistribute
the costs from those who have less trash to those who have more trash.
Mayor Hutchinson stated allowing a fuel surcharge and the cost of the poly -carts are issues that
should be addressed. A systems analysis of the wastestream in Fort Collins should be done.
The vote on the motion to adopt Ordinance No. 052, 2009 on Second Reading. as amended, was as
follows: Yeas: Manvel, Ohlson, Poppaw, Roy. Nays: Hutchinson, Kottwitz, and Troxell.
THE MOTION CARRIED.
Suspension of Rules
Councilmember Manvel made a motion, seconded by Councilmember Roy, to suspend the rules and
extend the meeting. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy. Nays: Kottwitz, Troxell.
THE MOTION CARRIED.
Resolution 2009-049
Making Board and Commission Liaison Assignments and Various
Committee Board and AuthorityAppointments, Adopted as Amended
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
This Resolution makes Councilmember liaison assignments to boards and commissions and makes
various committee, board and authority appointments.
BACKGROUND
Following the Council organizational meeting in April of odd -numbered years, Councilmembers
decide which ofthe various board and commission liaison assignments and committee appointments
are ofinterest to them as individuals_ At the recent City Council Retreat (May 2-3) Councilmembers
discussed liaison and committee assignments.
A 2009-2011 Planning Grid (Attachment 1) has been included to facilitate tracking Council's
recommendations for assignments. Names that were preliminarily decided at the Council Retreat
have been included in the Planning Grid and Resolution 2009-049. At this meeting, names will be
inserted in the Resolution for those assignments that were not preliminary decided at the Council
Retreat.
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May 19, 2009
Appointments to the Colorado Municipal League Policy Committee are considered in the fall of each
year. The Policy Committee will not meet before the new terms begin, therefore, this appointment
will be considered in September or October.
Resolution 2007-042 appointed Lisa Poppaw to the Housing Authority with a term to expire on May
1, 2012. Since Councilmember Poppaiv wishes to remain as a member ofthe Housing Authority and
her present term has not expired, a separate Resolution has not been prepared. "
Councilmember Roy made a motion, seconded by Councilmember Poppaw to adopt Resolution
2009-049 with amendments to name the liaisons not yet appointed to Boards.
Councilmember Ohlson noted he would like to continue as liaison to the boards lie previously has
served as liaison.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to amend Resolution
209-049 and name Councilmember Ohlson as liaison to the Building Review Board. Yeas:
Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
CouncilmemberTroxell made a motion, seconded by Councilmember Kottwitz, to amend Resolution
2009-049 to allow Councilmember Troxell to remain as liaison to the Electric Board. Yeas:
Hutchinson, Kottwitz, and Troxell. Nays: Manvel, Ohlson, Poppaw, Roy.
THE MOTION WAS DEFEATED.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to amend Resolution
2009-049 to name Councilmember Poppaw as liaison to the Electric Board. Yeas: Manvel, Ohlson,
Poppaw, Roy. Nays: Hutchinson, Kottwitz, Troxell.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Councilmember Kottwitz, to name
Councilmember Kottwitz as liaison to the Parks and Recreation Board. Yeas: Hutchinson, Kottwitz,
and Troxell. Nays: Manvel, Ohlson, Poppaw, Roy.
THE MOTION WAS DEFEATED.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to name
Councilmember Ohlson as liaison to the Parks and Recreation Board. Yeas: Manvel, Ohlson,
Poppaw, Roy. Nays: Hutchinson, Kottwitz, Troxell.
THE MOTION CARRIED.
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Councilmember Poppaw made a motion, seconded by Councilmember Roy, to name Councilmember
Manvel as liaison to the Transportation Board.
Councilmember Troxell noted he has enjoyed serving on the Transportation Board and there seems
to be a disparity in choosing liaisons since he has been chosen for only one Board.
Councilmember Manvel stated a liaison does not serve on a Board and a Councilmember should not
participate in the discussions of a Board.
Councilmember Troxell noted he has attended Board meetings, but has met every requirement of a
Council liaison and has not participated as if he were a Boardmember.
The vote on the motion was as follows: Yeas: Manvel, Ohlson, Poppaw, Roy. Nays: Hutchinson,
Kottwitz, Troxell.
THE MOTION CARRIED.
Councilmember Troxell made a motion, seconded by Councilmember Kottwitz, to name
Councilmember Kottwitz as liaison to the Water Board.
Councilmember Kottwitz noted she has extensive experience with water issues and water rights in
Colorado.
Councilmember Poppaw stated a Councilmember cannot serve on a Board but serves as a liaison to
a Board.
Councilmember Kottwitz stated background knowledge in a particular area will be helpful to
understand the issues considered by a Board.
The vote on the motion was as follows: Yeas: Hutchinson, Kottwitz, and Troxell. Nays: Manvel,
Ohlson, Poppaw, Roy.
THE MOTION WAS DEFEATED.
Councilmember Manvel made a motion, seconded by Councilmember Ohlson, to name
Councilmember Roy as liaison to the Water Board. Yeas: Manvel, Ohlson, Poppaw, Roy. Nays:
Hutchinson, Kottwitz, Troxell.
THE MOTION CARRIED.
Councilmember Manvel removed his name from consideration for the Legislative Review
Committee.
May 19, 2009
Councilmember Manvel made a motion, seconded by Councilmember Roy to appoint
Councilmembers Hutchinson, Ohlson, and Poppaw to the Legislative Review Committee. Yeas:
Manvel, Ohlson, Poppaw, Roy. Nays: Hutchinson, Kottwitz, Troxell.
THE MOTION CARRIED.
Mayor Hutchinson stated he currently serves on the Platte River Power Authority Board of Directors
in his capacity as Mayor. A motion to change the appointment to Platte River and place a
Councilmember on the Board would remove Brian Janonis, Utilities Executive Director, who has
special knowledge and skills necessary to make decisions. City Manager Atteberry stated Council
has received a list of requirements for the Board of Platte River. He urged Council to keep the
Utilities Executive Director on the Platte River Board because his expertise is needed on the Board
and the member cities have their utilities directors serving on the Board, as well.
Councilmember Manvel made a motion, seconded by Councilmember Troxell, to make no changes
to the Platte River Power Authority Boardmembers. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson,
Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Poppaw withdrew her name for consideration for the Poudre Fire Authority Board
of Directors.
Councilmember Poppaw made a motion, seconded by Councilmember Troxell, to appoint
Councilmember Kottwitz to the Poudre Fire Authority Board of Directors. Yeas: Hutchinson,
Kottwitz, Manvel, Olilson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Poppaw made a motion, seconded by Councilmember Manvel, to appoint
Councilmember Roy as an alternate to the North College Urban Renewal Plan Citizen Advisory
Committee. Yeas: Hutchinson, Kottwitz, Manvel, Ohlson, Poppaw, and Roy. Nays: Troxell.
THE MOTION CARRIED.
Councilmember Troxell noted the distribution of liaison assignments is biased and does not reflect
a Council that wants to represent all the citizens of Fort Collins.
The vote on the motion to adopt Resolution 2009-049, with amendments was as follows: Yeas:
Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays: Kottwitz, Troxell.
THE MOTION CARRIED.
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Adjournment
The meeting adjourned at 11:33 p.m.
ATTEST:
City Clerk �64 to 3
May 19, 2009
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