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HomeMy WebLinkAboutMINUTES-07/15/2008-RegularJuly 15, 2008 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, July 15, 2008, 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: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy, and Troxell. Staff Members Present: Atteberry, Krajicek, Roy. Citizen Participation Eric Sutherland, 631 LaPorte Avenue, expressed his concerns with renewable energy credit purchases because the credits do not accomplish any savings in energy. Michael Devereaux, 2150 Maid Marian Court, asked Council to examine Transfort fares as they are not priced fairly for all citizens and will not entice new riders. Fred Kirsch, 509 South Bryan Avenue, Community For Sustainable Energy, stated Transfort should be expanded to conveniently serve all citizens of the city. Mel Hilgenberg, 172 North College, thanked the City Manager for supporting the Foxes baseball team. He also thanked Council for the 4th of July celebration in City Park but he expressed his displeasure with a band that played at that celebration. Bruce Lockhart, 2500 East Harmony Road, stated his concerns with the slowness ofthe development process in Fort Collins. Carrie Gillis, 2213 Timber Creek Drive, stated transportation issues need to be become a priority for Council and she asked Council to address transportation in a timely fashion. Citizen Participation Follow-up Councilmember Roy asked for information about the pricing for Transfort fares. He stated the renewable energy credits policy is being reviewed but it takes time to determine a better way to utilize the funds to support renewable energy. He stated this Council had never defeated a development proposal or an incentive package for development. Councilmember Poppaw stated the development process results in an excellent development as an end product. She asked when the Transfort Master Plan would be ready for Council consideration. City Manager Atteberry stated it should come before Council in the next six months. Council is July 15, 2008 scheduled to discuss items in the next months that contain transportation components, such as the Downtown River District Report, South College Corridor Plan and the 2009 Budget Exceptions. Councilmember Troxell asked ifthe City reviewed any complaints concerning a band's performance at City Park. City Manager Atteberry stated the complaint would be shared with the 4th of July planning committee. Councilmember Troxell stated transportation issues need to be addressed on a regional basis and a regional system should be developed to best serve the citizens. Councilmember Ohlson asked for discretion to be used when choosing bands for celebration events such as the 4th of July. Transportation issues need to be addressed but the proposal brought toward last year for the creation of a regional transit authority was not a well -designed proposal that would benefit Fort Collins. He did support a regional approach to resolving transportation issues in a more democratic way than the formation of an RTA. Councilmember Manvel stated the Metropolitan Planning Organization continues to seek funding alternatives to help address transportation issues in Northern Colorado. Mayor Hutchinson stated the I-25/392 interchange was a joint project between the City and the Town of Windsor that was working to resolve issues with an interchange that is not currently serving the public. He noted renewable energy credits and new trends in renewable energy were the topic of a Council work session, available on the City's website. Platte River Power Authority will make a decision this summer about investing $20-60 million in wind power and will be moving away from renewable energy credits. Agenda Review City Manager Atteberry requested postponement of Item #8 Second Reading of Ordinance No. 076, 2008, Appropriating Funds in the Downtown Development Authority Fund for Expenditure in Accordance with the Downtown Plan of Development to August 19th to allow time for a joint work session with the Downtown Development Authority. He asked that Council take no action on Item # 12 Second Reading of Ordinance No. 081, 2008, Authorizing the Conveyance of a Sanitary Sewer Easement and a Temporary Construction Easement on City Property to New Belgium Brewing Company, Inc. at the request of the applicant. CONSENT CALENDAR 6. Second Readiniz of Ordinance No. 074, 2008 Appropriating Prior Year Reserves in the Light and Power Fund for Capital Expansion at the Portner Substation and Capital Additions to the Timberline Substation. This Ordinance, unanimously adopted on First Reading on July 1, 2008, authorizes the appropriation of $4,017,604 in prior year reserves in the Light and Power Fund for substation 2 July 15, 2008 facilities. The funds will be used to supplement existing appropriations for the Portner Substation, located west of the Transfort facility. In addition, the appropriation will also purchase and install two transformers and foundations for the Timberline Substation, south of Prospect Road. Second Reading of Ordinance No. 075, 2008, Appropriating Unanticipated Grant Revenue in the Light and Power Fund for Energy_Star/Energy Efficiency Programs and Authorizing the Transfer of Matching Funds Previously Appropriated in the Light and Power Operating Budget. This Ordinance, unanimously adopted on First Reading on July 1, 2008, appropriates funds received from three grants received from the State of Colorado's Governor's Energy Office totaling $75,000. Combined with the Utilities matching funds, $50,000 will be used for each of three programs: ENERGY STAR for New Homes, Home Performance with ENERGY STAR (for existing homes) and Residential Solar Program (Photovoltaic). 8. Second Reading of Ordinance No. 076, 2008, Appropriating Funds in the Downtown Development Authority Fund for Expenditure in Accordance with the Downtown Plan of Development. Ordinance No. 076, 2008, unanimously adopted on First Reading on July 1, 2008, appropriates $2,800,000 from the Downtown Development Authority Operations and Maintenance 2004A DDA Bond Project and the 2007A Bond Project fund for the purchase of the Elks Building, 140 East Oak Street. The DDA Board has authorized the expenditure on this project. 9. Second Reading of Ordinance No. 077, 2008, Amending Sections 2-30, 2-32 and 2-34 of the City Code Pertaining to Notice of Public Meetings of the City Council and City Council Committees. This Ordinance, unanimously adopted on First Reading on July 1, 2008, makes several amendments to the provisions of the City Code dealing with the public notice requirements for regular and special meetings of the City Council. 10. Second Reading of Ordinance No. 079, 2008, Amending Section 4.5(b) of the Land Use Code of the Cily Pertaining to Shelters for Victims of Domestic Violence. This Ordinance, unanimously adopted on First Reading on July 1, 2008, amends the permitted use list of the Low Density Mixed -use Neighborhood (L-M-N) to cap the number of residents in a Shelter for Victims of Domestic Violence allowed as a Basic Development Review at 15 clients. The Ordinance also adds Shelters for Victims of Domestic Violence to be allowed as a Type Two Review but with an unlimited number of clients. July 15, 2008 11. Second Reading of Ordinance No.080 2008. Authorizing the Conveyance of a Stormwater Filtration and Detention Easement at the Gardens on Spring Creek (Horticulture Center) to Colorado State University. CSU has approached the City with an interest in constructing a water quality control project to treat storm flows from CSU's main campus. The majority of the project will occur on CSU's property adjacent to the City's Horticulture Center property. However, due to design constraints, CSU is requesting a stormwater easement to accommodate a portion of this project on City property. This Ordinance, unanimously adopted on First Reading on July 1, 2008, authorizes the conveyance of a28,581 square foot permanent easement for stormwater filtration and detention over a portion of the Horticulture Center property. 12. Second Reading of Ordinance No. 081, 2008, Authorizing the Conveyance of a Sanitary Sewer Easement and a Temporary Construction Easement on City Property to New Belgium Brewing Company, Inc. This Ordinance, unanimously adopted on First Reading on July 1, 2008, authorizes the conveyance of a sanitary sewer easement and a temporary construction easement on City property, located at 625 Ninth Street, to the owner of the adjacent property, New Belgium Brewery, Inc., to connect the Brewery's new building to the City of Fort Collins sewer system. The Brewery has agreed to pay the City a fee of $1000 for the easements and to restore the easement areas when construction is complete. 13. Second Readies of Ordinance No. 082, 2008, Vacating a Street Right -of -Way on Block 142 Established as Part of the 1873 Map of the Town of Fort Collins. This Ordinance, unanimously adopted on First Reading on July 1, 2008, vacates Lincoln Place right-of-way, located within Library Park, in preparation for the City's conveyance of a portion of the block to the Fort Collins Regional Library District. 14. First Reading of Ordinance No. 083, 2008, Amending Chapter 3 of the City Code to include Art Gallery Permits. This Ordinance will amend the City Code to include the fees and approval process for Art Gallery Permits. 15. Items Relating to Relocating Certain Provisions of the City Code Regarding Unreasonable Noise and Nuisance Gatherings to Chapter 17, Relocating Provisions Regarding Snow Removal to Chapter 20, and Making Amendments to the Penalty Provisions for Civil Infractions. A. First Reading of Ordinance No. 084, 2008, Relocating Certain Provisions of the City Code Regarding Unreasonable Noise and Nuisance Gatherings to Chapter 17 and Relocating Certain Provisions Regarding Snow Removal to Chapter 20. July 15, 2008 B. First Reading of Ordinance No. 085, 2008, Amending Certain Sections of the City Code and the Land Use Code Pertaining the Penalties for Civil Infraction Violations Ordinance No. 084, 2008, would relocate certain provisions within Chapter 17 and 20 of the City Code in order to place them logically within the Code for consistency and clarity of enforcement mechanisms. Ordinance No. 085, 2008, would clarify the penalties for civil infractions. Under this Ordinance, the third and subsequent violations of the same Code provision within a twelve- month period of time could be charged and prosecuted as criminal misdemeanors. 16. First Reading of Ordinance No. 086, 2008, Extending the Contracts of the City's Service Providers for Employee Benefits Programs to December 31, 2009. The vendors providing life insurance, dental insurance, vision insurance, and transplant insurance for City employees have serviced the City of Fort Collins for many years. This Ordinance will approve an extension of the current agreements with these vendors for an additional year to allow for sufficient time and resources for a competitive process to be completed in 2009. 17. First Reading of Ordinance No. 087, 2008, Authorizing the Lease of the Prairie Ridge Natural Area for Dryland Wheat Farming for up to Three Years. The Ordinance will authorize the lease of the Natural Area owned jointly by the Cities of Loveland and Fort Collins, located south of Fort Collins and west of Taft Hill Road. The property has been leased to the same tenant for eight years and will be used for rotational wheat crops. 18. First Reading of Ordinance No. 090, 2008, Authorizing the Conveyance of Two Waterline Easements and Two Temporary Construction Easements on City Property to the North Weld County Water District. The North Weld County Water District and East Larimer County Water District are in the process of acquiring the necessary easements for their waterline transmission project ("NEWT") which is scheduled to begin construction in January 2009. The City of Fort Collins Parks Department owns two parcels of land on which the Districts have requested an easement for their project. The North Weld County Water District has agreed to pay the City a fee of $1000 for the easements and will restore the easement areas when construction is complete. July 15, 2008 19. Resolution 2008-064 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 will adopt the recommendations from the Cultural Resources Board to disburse these funds. 20. Resolution 2008-065 Authorizing a Grant Aereement with the State of Colorado for the Power Trail. This Resolution authorizes the City Manager to enter into a grant agreement with the State of Colorado Department of Natural Resources, Division of Parks and Recreation. The grant funds will enable the City to extend the Power Trail south of Harmony to Trilby Road. 21. Resolution 2008-066 Makine Appointments to Various Boards and Commissions. A vacancy currently exists on the Cultural Resources Board due to the resignation of Jack Steele. Applications were solicited and Councilmembers David Roy and Lisa Poppaw conducted interviews. The interview team is recommending Anne Macdonald to fill the vacancy with a term to begin immediately and set to expire on December 31, 2010. A vacancy currently exists on the Landmark Preservation Commission due to the resignation of Alyson McGee. Applications were solicited and Councilmembers David Roy and Lisa Poppaw conducted interviews. The interview team is recommending Sondra Carson to fill the vacancy with a term to begin immediately and set to expire on December 31, 2011. A vacancy currently exists on the Senior Advisory Board due to the resignation of Judy Vasiliauskas. Applications were solicited and Councilmembers David Roy and Lisa Poppaw conducted interviews. The interview team is recommending Joan Deines to fill the vacancy with a term to begin immediately and set to expire on December 31, 2011. A vacancy currently exists on the Women's Commission due to the resignation of Patricia Stewart. Applications were solicited and Councilmembers David Roy and Lisa Poppaw conducted interviews. The interview team is recommending Becky Goldbach to fill the vacancy with a term to begin immediately and set to expire on December 31, 2009. Vacancies currently exist on the Youth Advisory Board due to the resignations of Matt Strauch and Scott Umbriet. Applications were solicited and Councilmembers Lisa Poppaw and David Roy conducted interviews. The interview team is recommending Vivian Acott and Lisa Parker to fill the vacancies with terms to begin immediately and set to expire on December 31, 2009 and December 31, 2010 respectively. Gel July 15, 2008 22. Routine Easements. A. Easement for construction and maintenance of public utilities from Reorganized Church of Jesus Christ of Latter Day Saints, for a right-of-way easement to install pad transformer to accommodate increased electric service, located at 220 East Oak. Monetary consideration: $10. B. Easement for construction and maintenance of public utilities from 6617 South College LLC, for a right-of-way easement to install pad transformer to accommodate REA transfer for the southwest enclave annexation, located at 6617 South College. Monetary consideration: $1000. C. Easement for construction and maintenance of public utilities from Margaret D. Wyatt, for a right-of-way easement to underground existing electric system, located at 6530 South College Avenue. Monetary consideration: $3,800. D. Easement for construction and maintenance ofpublic utilities from Janet E. Michaud, to install a 3 phase switch cabinet to underground existing electric system, located at 6805 South College Avenue. Monetary consideration: $500. ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 6. Second Reading of Ordinance No. 074, 2008 Appropriating Prior Year Reserves in the Light and Power Fund for Capital Expansion at the Portner Substation and Capital Additions to the Timberline Substation. Second Reading of Ordinance No. 075, 2008, Appropriating Unanticipated Grant Revenue in the Light and Power Fund for Energy Star/Energy Efficiency Programs and Authorizing the Transfer of Matching Funds Previously Appropriated in the Light and Power Operating Budget. 9. Second Reading of Ordinance No. 077, 2008, Amending Sections 2-30, 2-32 and 2-34 of the City Code Pertaining to Notice of Public Meetings of the City Council and City Council Committees. 10. Second Reading of Ordinance No. 079, 2008, Amending Section 4.5(b) of the Land Use Code of the City Pertaining to Shelters for Victims of Domestic Violence. 11. Second Reading of Ordinance No. 080, 2008, Authorizing the Conveyance of a Stormwater Filtration and Detention Easement at the Gardens on Spring Creek (Horticulture Center) to Colorado State University. July 15, 2008 13. Second Reading of Ordinance No. 082, 2008, Vacating a Street Right -of -Way on Block 142 Established as Part of the 1873 Map of the Town of Fort Collins. Ordinances on First Reading were read by title by City Clerk Krajicek. 14. First Reading of Ordinance No. 083, 2008, Amending Chapter 3 of the City Code to include Art Gallery Permits. 15. Items Relating to Relocating Certain Provisions of the City Code Regarding Unreasonable Noise and Nuisance Gatherings to Chapter 17, Relocating Provisions Regarding Snow Removal to Chapter 20, and Making Amendments to the Penalty Provisions for Civil Infractions. A. First Reading of Ordinance No. 084, 2008, Relocating Certain Provisions of the City Code Regarding Unreasonable Noise and Nuisance Gatherings to Chapter 17 and Relocating Certain Provisions Regarding Snow Removal to Chapter 20. B. First Reading of Ordinance No. 085, 2008, Amending Certain Sections of the City Code and the Land Use Code Pertaining the Penalties for Civil Infraction Violations. 16. First Reading of Ordinance No. 086, 2008, Extending the Contracts of the City's Service Providers for Employee Benefits Programs to December 31, 2009. 17. First Reading of Ordinance No. 087, 2008, Authorizing the Lease of the Prairie Ridge Natural Area for Dryland Wheat Farming for up to Three Years. 18. First Reading of Ordinance No. 090, 2008, Authorizing the Conveyance of Two Waterline Easements and Two Temporary Construction Easements on City Property to the North Weld County Water District. 27. First Reading of Ordinance No. 088, 2008, Amending Chapter 20 of the City Code by Adding Regulations Pertaining Specifically to Dirt Yards and Dilapidated Fences. 28. First Reading of Ordinance No. 089, 2008 Amending Chapter 26 of the City Code to Reflect the Adoption of the Boxelder Regional Stormwater Master Plan. Councilmember Roy made a motion, seconded by Councilmember Poppaw to adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. Consent Calendar Follow-up Councilmember Ohlson noted Item #10 Second Reading of Ordinance No. 079, 2008, Amending Section 4.5(b) of the Land Use Code of the City Pertaining to Shelters for Victims of Domestic Violence would provide an important benefit to the community. July 15, 2008 Staff Reports City Manager Atteberry stated Harvard's John F. Kennedy School of Government has named the ClimateWise Program as one of the 50 most innovative programs in the world. He noted this year's Bike Week, held the week of June 23, had a record participation with over 22,000 vehicle miles reduced through that week. He stated Money Magazine has named Fort Collins as #2 on its "100 Best Places to Live" list. He noted the City's Employee Wellness Program has received the Gold "Well Workplace" Award from Wellness Council of America. Resolution 2008-067 Authorizing and Directing Staff to Prepare an Urban Renewal Plan and Existing Conditions Study for the Prospect South Area, Adopted The following is staff s memorandum on this item. "EXECUTIVE SUMMARY The City Council established an Urban Renewal Authority (URA) to provide assistance to redevelopment projects in specified areas of the city. The Prospect South Area is identified as a Targeted Redevelopment Area in City Plan. Capstone Development Corporation is proposing a mixed -use redevelopment project, including student housing on the edge of CSU's Main Campus, along with transit oriented design features adjacent to the Mason Corridor, and storm water management for an historically f ood prone site. The costs of redevelopment are significant and utilization of Tax Increment Financing (TIF) from the URA is needed to make the projectfinancially feasible. Staff is seeking Council's authorization to proceed with the preparation of an Existing Conditions Survey and draft an Urban Renewal Plan for the Prospect South Area. BACKGROUND In 1982, the Fort Collins City Council created an Urban Renewal Authority (URA) and designated itself as the governing board (known as the "Authority'). The boundaries of the URA are the municipal limits. The Fort Collins URA was created to prevent and eliminate conditions in the community related to certain "blight factors, " as defined in the State 's Urban Renewal Laws. State Statutes allow the URA broad powers to carry out its statutory mandate. Included are the powers to enter into contracts, borrow funds, and acquire property voluntarily or by eminent domain, among others. Urban renewal projects may be financed in a variety of ways. URAs are authorized to issue bonds and accept grants from public or private sources. The principal method offinancing urban renewal projects is through obligations secured by property tax or sales tax increments from the project area, or "tax increment financing" (TIF). The URA exercises its powers by planning and carrying out urban renewal plans in urban renewal areas. Urban Renewal Plan Areas have the following objectives that are consistent with City Plan: 0 July 15, 2008 PRINCIPLE GM-8 "The City will promote compatible infill and redevelopment in areas within the Growth Management Area boundary. " POLICY GM-8.1 "Redevelopment and infill development will be encouraged in targeted locations. The purpose ofthese areas is to channel growth where it will be beneficial and can best improve access to jobs, housing and services with fewer and shorter auto trips ... A major goal is to increase economic activity in the area to benefit existing residents and businesses and, where necessary, provide stimulus to redevelop. These areas should be defined from City Plan, Subarea Plans, Zoning and locational criteria such as: • Underutilized land; • Areas already undergoing positive change, which is expected to continue; • Areas where infrastructure capacity exists; • Areas where public investment is warranted from a policy perspective; • Areas with special opportunities, such as where major public or private investment is already planned; • Transportation opportunities: o along travel corridors o along enhanced travel corridors" POLICY GM-8.5 "The City will consider opportunities, and the costs and benefits for targeted public investment in order to encourage redevelopment and infill development in appropriate locations. " The area west of College Avenue and south of Prospect Road has been identified as a targeted redevelopment area in City Plan and directly correlates to the overall plan of the Mason Corridor enhancements. The following are the boundaries of the area staff will study (see attached map) for the potential designation as the Prospect South Urban Renewal Plan Area: North: Prospect Road, beginning one-half block East of College Avenue and extending to the BNSF railroad tracks one block West of College Avenue; East: The north -south alley that runs between South College Avenue and Remington Street; South: Johnson Avenue; and West: The BNSF railroad tracks; however, there is one small parcel west of the railroad and south of Prospect that will also be studied 10 July 15, 2008 Staff will further define the boundary as the evaluation of the existing conditions survey proceeds and a more in-depth assessment regarding the needs of the area is made. The major purpose of establishing a Prospect South Urban Renewal Plan Area would be to permit the utilization of tax increment financing (TIF) in redevelopment projects. TIF is a tool that is commonly used throughout Colorado for a variety of redevelopment and economic development purposes. Timnath, Loveland (Centerra), Westminster/Thornton, and many other Front Range communities use TIF as a principal tool for funding public improvements related to redevelopment and non -redevelopment sites. TIF has proven an effective tool by these communities to overcome significant public improvement costs to facilitate development to assist in producing a healthy economy in a competitive regional market. Given the lack of economic tools at the City's disposal and the effectiveness of TIF, staff believes that utilizing TIF is the most effective tool to help keep the targeted redevelopment areas competitive with these other communities. The obvious advantage of using TIF is that public assistance toward the development is driven by enhancements to the assessed valuation of the property and is funded through property tax revenues versus sales tax :ra WIMI I Citystaffhas been approached by Capstone Development Corporation who has determined this area is a key location for its proposed mixed -use redevelopment project. The proposed project includes student housing on the edge of CSU's campus, transit oriented design features along the Mason Corridor, and storm water managementfor this historicallyf oodprone site. All indications are that Capstone is ready to move forward with its redevelopment plans, however, the costs of redevelopment are significant. The use of TIF is key to Capstone's redevelopment plans for the site and for making the mixed -use student housing project feasible. The use of other public and private financing mechanisms is also anticipated. The Existing Conditions Survey (a.k.a. "Blight Study') will describe the conditions in line with statutory definitions that constitute "blight" that exist in the study area. Consideration should then be given to the creation ofan Urban Renewal Plan for the area to first ofall eliminate the conditions that constitute "blight" and to further promote the goals and objectives of City Plan. Authorizing staff to proceed with conducting the Existing Conditions Survey and preparation ofthe Prospect South Urban Renewal Plan does not commit the Council to formally adopting the survey and plan at this time. City Council will, however, eventually adopt a resolution of necessityfinding that blight exists within all, or a portion of, the study area and determining that the rehabilitation and/or redevelopment of the area is in the interest ofthe public health, safety, morals or welfare of the residents of Fort Collins, and adopt another resolution officially establishing the Prospect South Urban Renewal Plan Area. The Plan will examine the feasibility and desirability of implementing an urban renewal program and will make recommendations for correcting those conditions contributing to "blight". Staff has discussed the need for an existing conditions evaluation as a proper process for determining ifan urban renewal area is needed. Staffhas notified Larimer County ofthe intention to evaluate the area with an Existing Conditions Survey. Staffcontinues to meet with the County staff to identify specific details regarding the financial impacts to the County. The public outreach will 11 July 15, 2008 attempt to create strong community collaboration similar to that of the North College area without the need for an additional Citizen Advisory Group. This outreach includes individual contacts with property owners, at least one public open house, and written notification has been sent to property owners and tenants in the study area. " Christina Vincent, Urban Renewal Planner, stated the proposed resolution would authorize staff to prepare an Existing Conditions Study and Urban Renewal Plan for the Prospect South area. The area contains 27 acres. An Urban Renewal Plan would allow for the use of tax increment financing and evaluate the opportunities in redevelopment areas, allow an economic stimulus using the tax increment financing and provide needed improvements and public benefit. It promotes infill development and is a targeted redevelopment area within the City. Capstone Development has proposed a student housing project on 10 acres within the area. The Study is proposed for a larger area to evaluate the needs of the area, as the corridor has not been redeveloped in decades. The Capstone Project would be a mixed -use development located in close proximity to the Mason Corridor that would meet student housing needs. The location of the development is on the site of the Spring Creek Flood of 1997, so creative stormwater management practices need to be put into place. Expensive fixes to stormwater issues and the high price of the land are barriers to development of this area. There is a $1 million to $2 million gap in the financing of the proposed redevelopment. Tax increment financing could be used to bridge the gap and would not place additional taxes onto the current property owners and no taxing district would be formed. The first step in this process is for Council to authorize staff to conduct an Existing Conditions Study and prepare an Urban Renewal Plan. Staff has contacted individual property owners and written notification of this process was sent to property owners and tenants. At least one open house will be held and other districts such as the County and Poudre School District will be notified of the proposed Urban Renewal Plan. Walker May, 431 Office Park Drive, Capstone Development Manager, stated Capstone is the leading student house developer in the nation. One of Capstone's current programs is developing the campus edge, using mixed -use, urban infill development. This is a smart, sustainable form of development as it places a large number of students within walking and biking distance to a campus, takes pressure off streets and moves students out of single-family neighborhoods. The South Prospect property is an ideal location for this type of development as it is located within close walking and biking distance to CSU and has the potential for a URA to be formed. CSU expects to grow in the next 15 years and will not have campus housing to provide to those students. The Mason Corridor development will provide transportation options to campus, downtown and beyond. The high -density, mixed -use development is the type of growth and redevelopment the City has hoped would be placed along the Mason Corridor. There are barriers that affect the economics of the project: the high cost of land, expensive City impact fees, costly floodplain designation and subsequent stormwater improvements and the current lower, affordable rental rates that exist in the city which would lower revenues for the project. Capstone is seeking a public/private partnership to enable this development to proceed. 12 July 15, 2008 Cheryl Olson,126 West Harvard, a property owner involved in the transaction with Capstone, stated six acres of her property have been vacant since the flood of 1997 and have contributed no income to the owners, the City or the County for over 10 years. The economics of development have prevented the sale of the property. The property is located in a prime location for student housing and the community needs more places for students to live. She urged Council to support the development of an urban renewal plan to assist with the high costs of redeveloping this area. Nancy York, 130 South Whitcomb, asked for an explanation of tax increment financing and a cost benefit analysis of the project. Pete Seale,1837 Scarborough Drive, stated CSU plans to expand by 5000 students in the next five years and this project would be an ideal solution for housing those students. Bruce Lockhart, 2500 East Harmony Road, asked if the use of eminent domain would be authorized to acquire property for the project. Councilember Ohlson stated this resolution would authorize an Existing Conditions Study and more discussion on the financial aspects of the project would occur at a later date. He asked if the Study would cover a larger area than the property where Capstone proposes to build the student housing. Vincent stated the boundary is larger than the Capstone proposed development so staff can evaluate the entire existing conditions of the area. Councilmember Brown asked what type of retail would be included in the Capstone development. Vincent stated the area is zoned Employment, which allows a wide use of retail options. The Capstone proposal includes shops and consumer retail but not establishments serving alcohol. Councilmember Brown asked how dependent this project was on the development of the Mason Corridor. City Manager Atteberry stated the Mason Corridor is an important component of the Capstone development, but the temporary delay in federal funding for the Mason Corridor should not prevent the Capstone development from moving forward. Councilmember Brown asked if the solutions to the stormwater issues associated with this area will have an impact downstream and cause the City to spend a large amount of funds to correct. Bob Smith, Water Planning an Development Manager, stated there will not be any negative impacts downstream from the project. Councilmember Roy asked for the cost of staff time spent on this project. Joe Frank, Advance Planning Director, stated this was a significant project and he would provide the number of hours already spent on this project and the cost. Councilmember Roy asked for an explanation of tax increment financing (TIF) and its relationship to the Urban Renewal Authority. Frank stated adoption of an urban renewal plan establishes a base level of tax increment. For the next 25 years, any additional taxes generated in excess of the base dollar amount as a result of taxable improvements or increases in value, the increase in taxes accrues 13 July 15, 2008 to the Urban Renewal Authority for use to build infrastructure or other amenities for the benefit of the public. Councilmember Ohlson asked if the tax increment was based on any improvements to a property or if it was determined on any increase in value of a property. Frank stated the increment the URA will receive will include taxes from taxable improvement and property taxes that result from an increase in the value. The theory behind an urban renewal authority is that there would be no change in those areas, but for the action of the urban renewal authority enhancing and making public improvements. City Attorney Roy stated when a general reassessment of the property in the district occurs, the tax base and the increment are proportionally adjusted. The TIF would include all taxes collected above the base that is locked in at the time the Urban Renewal Plan is adopted, but a reassessment is apportioned between the base and the TIF. Councilmember Ohlson asked if planning fees were collected to offset the cost of staff time in assessing proposed developments. Frank stated development fees are collected to help pay for the cost of staff review of proposed developments. The URA collects only property tax and does not collect any impact fees. City Manager Atteberry stated development pays a large percentage of the cost of the development process and the General Fund also pays a portion. Mike Freeman, Chief Financial Officer, stated the Advance Planning staff are not part of the cost of the development process fees. Current Planning, building inspection, development review staff, transportation and utilities collect the impact fees. City Manager Atteberry stated as the URA begins operation, the General Fund would subsidize the URA for a time, but the goal is for the URA to be self-sustaining. Councilmember Poppaw asked if eminent domain will be used to acquire property within the URA boundary. Frank stated URAs do have the power of eminent domain and each urban renewal plan adopted by the City has retained the ability to use eminent domain only as a tool of last resort. There are no plans being considered that would use eminent domain. City Atteberry stated the Capstone development is a voluntary transaction between a developer and a property owner and eminent domain would not be appropriate. Councilmember Troxell asked why the boundary for the proposed urban renewal plan was not set further east. Vincent stated the boundaries for the Existing Conditions Study follow parcel lines to be consistent with ownership and to allow the evaluation to be as thorough as possible. Councilmember Ohlson made a motion, seconded by Councilmember Poppaw, to adopt Resolution 2008-067. Councilmember Troxell stated the proposed area fits the description of an Urban Renewal Authority and the Capstone Project would be greatly beneficial to both CSU and the community. The URA is an appropriate solution to assist in development of the site. Councilmember Poppaw stated the project is greatly needed and the infill and redevelopment opportunity will benefit the city. 14 July 15, 2008 Councilmember Ohlson stated the resolution authorizes the Existing Conditions Study and preparation of an urban renewal plan but no approval is being given to any project at this time. Councilmember Brown stated the Capstone project would be a unique solution to problems created by passage of the 3-unrelated ordinance and will improve neighborhoods where students did reside. Councilmember Manvel stated the area is appropriate for an urban renewal plan to aid in redevelopment of the aging area. Councilmember Roy stated the growth projected for CSU enrollment means housing solutions for those students need to be addressed. He asked if areas south of the proposed URA area following the Mason Corridor should be included in the proposed URA. He encouraged the developer to strive to attain Gold LEED rating with the development. This project is a good example of infill development that is good for both CSU and the City. Mayor Hutchinson noted the project meets the criteria for infill development, fits Fort Collins and meets other needs. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 088, 2008, Amending Chapter 20 of the City Code by Adding Regulations Pertaining Specifically to Dirt Yards and Dilapidated Fences, Adopted as amended on First Reading The following is staff s memorandum on this item. "FINANCL4L IMPACT Costs to the City to enforce the codes are anticipated to be covered by the current operating budget for the Neighborhood and Building Services Department (NBS). Property owners will have expenses related to correcting violations and complying with the codes/standards. EXECUTIVE SUMMARY This Ordinance addresses physical deterioration of properties that affect the well-being of neighborhoods in Fort Collins. The proposed regulatory tools would enhance the City's ability to provide the community with improved preventative measures. 15 July 15, 2008 BACKGROUND Discussions emerged in 2005 among concerned citizens, community interest groups and City Council about the physical condition ofbuildings, rental standards, and exterior premises nuisance codes. Revisions to occupancy limits and other neighborhood quality -of -life code changes precipitated the discussions. Concerns have been directed at physically neglected properties that can accelerate the deterioration of neighborhoods. Property maintenance conditions and related complaints that are not addressed by existing code provisions were the focus. There has been extensive public outreach seeking recommendations from City boards and commissions, the real estate and rental industry, neighborhoodgroups and individual citizens. Four City Council Work Sessions have occurred: September 2006, August 2007, February 2008 and March 2008. In response, staffproposes to add two provisions to Chapter 20 ofthe Municipal Code dealing with dirt yards and dilapidated fences and walls for all violations visible from public right-of-way or ground level of neighboring properties. RECENT DIRECTION FROM COUNCIL (See attachment ]for March 11, 2008 Work Session Summary) Below are Council's suggested revisions from the work sessions specifically related to exterior - premises nuisance codes. In italics are responses and references where they are addressed in the proposed code language. A. Severe weathering of exterior building/structure surfaces (walls, etc.) because of deteriorated protective coating (paint) and severely damaged roofing allowing water into the building are covered by the Dangerous Building Code and should be eliminatedfrom the proposed Exterior -Premises Nuisance Codes (removed from Exterior -Premises Nuisance Codes.) B. Bringforwardfor Council consideration an ordinance that adds exterior nuisance codes that will apply to all properties within the City of Fort Collins. C. Enforce the proposed codes from all public rights -of -way and ground level of neighboring properties (included in the ordinance). D. Provide reasonable lengths oftime for people to correct violations. This is already required by Code Sec. 19-66(a)(1), Rules for Civil Infractions. The length of time is determined by the severity of the condition as well as other mitigating factors. E. Bring more detailed information and provide a matrix explaining all possible assistance programs for owner -occupied properties with low incomes (See Attachment 2). F. Place emphasis on assisting people with available resources to address violations before utilizing enforcement efforts or issuing citations. 16 July 15, 2008 G. Explore including fences that are dilapidated or of inappropriate materials, e.g., plastic sheeting, metal roofing/building panels, plywood/OSB sheathing, scraps, etc. (The Ordinance requires that fence and wall repairs must be made with compatible materials of comparable composition, color, size, shape and quality.) Exterior -Premises Nuisance Provisions Originally, the exterior premises nuisance provisions being considered included four items: (])dirt yards; (2) dilapidated fences and walls; (3) peeling paint; and (4) deteriorated roofs/gutters. Council directed staff to remove items (3) and (4) - peeling paint and deteriorated roofs/gutters. Ifadopted, these nuisance provisions (dirt yards and dilapidated fences and walls) will be added to Chapter 20 of the City Code and will apply to violations visible from any public right-of-way (including alleys) orfrom the ground level ofadjacentproperties. Violations will be civil infractions and subject to civil penalty. Persons not in compliance will be given a reasonable amount of time for compliance and extensions will be granted for mitigating circumstances such as weather, working with assistance programs, etc. The proposed Exterior -Premises Nuisance provisions are summarized as follows: • Yards: No less than eighty percent (80916) of any yard area, excluding sidewalks and driveways, must be covered with grass, ground cover plants or other landscaping material, such as mulch, decorative gravel, stone or paving bricks. Ground cover consisting of crushed rock, gravel, or similar material must be one quarter (114) inch or larger in size and shall be maintained at a depth that is sufficient to cover all exposed areas of dirt. • Fences and Walls: All fences and walls must be maintained so that they are structurally sound and in good repair so that there are no broken, loose, damaged, removed or missing parts (i.e., pickets, slats, posts, wood rails, bricks, panels). Repair offences and walls must be made with compatible materials ofcomparable composition, color, size, shape and quality of the fence or wall to which the repair is being made. Assistance Programs Available (See attachment 2 for detailed matrix) Assistance Programs are summarized below as requested by City Council. The main source for financial assistance for low-income, owner -occupied properties would be from the Lorimer Home Improvement Program (LHIP). A summary of this program is: • Contact person — Amy Irwin — Loveland Housing Authority — 970-667-3232 17 r July 15, 2008 • This program is funded with federal, state, county and local money, and it is administered through the Loveland Housing Authority. • Low-income families may qualify for 0 — 5% interest loans up to $24,999 (most repairs are much lower cost than this). • Home improvementprojects include repairs such as roofreplacement or repair, new siding, exterior paint, some fence repairs or replacement, etc. • The application process is very simple, and City or LHIP staff can assist people through this process. • The City of Fort Collins contributed $60,000 in 2005 to this program for home improvement projects in Fort Collins. • In 2007, 12 loans were given. Between January 2004 and August 2005, 17 households received loans. In August 2005, there was a waiting list of 26 households. • Amount available for loansf uctuates each year depending upon how much collected from current loans (average 12 loans per year at approximately $9, 000 per loan). • Since yards and fences would not qualify for a LHIP loan, additional funds could be added to this program specifically for Exterior -Premises Nuisance Code violations (yards and fences) and can be set aside to assist people who qualify and need assistance to comply. • LHIP is willing to have these set up as grants rather than loans which would cost less to administer. If it is set up as a grant program, an ongoing annual allotment will be needed versus a loan program which can be self-sustaining. • Staff could pursue additional funding for LHIP to use specifically for exterior - premises property maintenance concerns either this fall as part of the City's competitive process or through the next Budgeting for Outcomes process (2010- 2011). Volunteer Programs Neighborhood Services and CSU provide significant volunteer programs that assist many neighborhood projects every year. These include Adopt -A -Neighbor, Fall Clean-up, and CSUnity. In the past two years, these programs have utilized over 2,000 volunteers to assist with approximately 160 neighborhood projects. Many of these projects included yard clean-up, fence repair, landscape work painting, etc. Neighbors have reported that the volunteers were kind, respectful and a valuable resource. 18 July 15, 2008 When appropriate, Neighborhood Services would also utilize other volunteer -based programs and agencies including Fort Collins Board of Realtors, Group Workcamps Foundation, Habitat for Humanity, United Way, Jaycees, Volunteers ofAmerica, Interfaith Council, and Northern Colorado Homebuilders' Association. In addition, Neighborhood Services could utilize and partner with Resource and other local businesses as a possible source of low-cost landscaping and fence materials. This would be done by staff matching the particular need with the appropriate agency available to assist. PUBLIC OUTREACH Extensive public outreach has occurred over the past two years. Boards and Commissions (see Attachment 3 for minutes) Planning and Zoning Board Work Session — July 13, 2007 Affordable Housing Board — September 6, 2007 and June 5, 2008 Building Review Board — July 26, 2007 and April 24, 2008 Public meetings, presentations and outreach • Open Public Meetings —January 25, 2007; February 1, 2007; July 24, 2007 • Small stakeholder meetings — March — May 2007 • Newspaper columns and newsletter articles — 2007 and 2008 • North Fort Collins Business Association presentation — September 26, 2007 • Affordable Housing Coalition presentation — October 17, 2007 • Associated Students of Colorado State University — October 31, 2007 • Fort Collins Board of Realtors — January 15, 2008 and January 29, 2008 • Colorado Apartment Association presentation —March 18, 2008 • Center for Public Deliberation Capstone discussion —April 21, 2008 Feedback varied significantly with opinions on both sides of the issues. There is a general concern for the potential financial hardship new codes can place on low-income residents. Timeline An educational promotion for the Exterior -Premises Nuisance provisions will occur during the remainder of 2008. Enforcement will commence on January 1, 2009. Standard operating policy will be to: (1) first focus on alternative resolutions for the violations through assistance programs and volunteer efforts prior to taking enforcement action; and (2) provide citizen friendly informational materials that detail options available. The use of enforcement will be reserved and used as a last resort to obtain compliance. " Jeff Scheick, Planning Development and Transportation Director, stated the concerns about exterior property maintenance standards are directed at physically neglected properties that can accelerate neighborhood deterioration and cause a decline in property values. Peeling paint and deteriorating 19 July 15, 2008 roof gutters will be addressed in the International Property Maintenance Code that will be brought to Council in September. Council has expressed concerns about assisting homeowners to comply with the provisions in this ordinance. Staff will help the community by utilizing assistance and volunteer programs, where available and appropriate, in order to help people comply before enforcement is used. If enforcement is necessary, it will be done by the existing compliance inspectors and no additional staff will be added. Rules for civil infraction require a reasonable amount of time be allowed for correction of the violation. Staff will work with property owners to develop a timeline to make compliance achievable. All contacts will be made through a citizen - friendly letter and personal contact by Neighborhood Services staff with information and options about assistance and volunteer programs prior to using enforcement. Staff has examined property maintenance standards in other comparable communities in Colorado and across the country in the development of these regulations. The proposed standard for yards is that no less than eighty percent (80%) of any yard area, excluding sidewalks and driveways, must be covered with grass, ground cover plants or other landscaping material, such as mulch, decorative gravel, stone or paving bricks. 80% was derived to ensure the standard was applied to a yard that needed a significant amount of work and not one that had a small, bare patch. It also matches with the weed ordinance that states weeds cannot be more than 20% of a landscaped area. The determination of a dirt/dead yard situation will be made based on what a person of average height could see when standing. The regulation of dilapidated fences will ensure the fences are in good structural shape and repairs are made consistent with the materials used in the rest of the fence. Assistance programs are available for homeowners not in compliance with the regulations. The Larimer County Home Improvement Program (LHIP), funded with federal, state and local money is willing to partner with the City by administering this section of the program if money is given specifically for items in yards and fences. The application process is relatively simple and City staff and LHIP staff can assist people through the process. Money given to assist people with yards and fences could be given as loans or grants. Grants cost less to administer but need an ongoing funding source. A loan program could be self-sustaining, except for the cost of administration. LHIP currently has limited funds available to assist low-income property owners with home improvement repairs and those funds can only be used for home improvement projects, possibly fence repair but not for dirt yard improvement. LHIP is willing to administer the program if the City is willing to make additional money available to assist low-income property owners with dirt/dead yards and fences. Many volunteer organizations are also available to provide assistance with neighborhood projects. A. J. Feldman, Fort Collins resident, opposed the proposed ordinance as it will require additional funding from the City. He did not think the issue of dirt yards and fences was a big problem in Fort Collins and the determination of dirt/dead yards and fences would be subjective. Martha Denny, 1756 Concord, supported adding dirt yards and dilapidated fences to the property maintenance code and encouraged Council to expand the ordinance by including dead trees and shrubbery. 20 July 15, 2008 Mel Hilgenberg,172 North College, asked about the magnitude of dead yards and dilapidated fences, who will enforce the ordinance and how will it be enforced. He asked if the Housing Authority would be involved in assisting people to reach compliance. Pete Seale,1837 Scarborough Drive, stated appearance does matter and he supported the ordinance. Fences that are falling down are eyesores in a neighborhood and should be addressed. Neighborhood groups will help seniors and low-income families with the required repairs. Wendy Parker, 2904 Tharp Drive, Fort Collins Board of Realtors representative, stated the Board opposed the ordinance as only a few homes in Fort Collins have dead yards or dilapidated fences and the regulations are not necessary. Cheryl Distaso, 135 South Sunset, stated a problem with dead yards and poor fences does exist but her concerns were that the ordinance states property owners not in compliance will be given "a reasonable amount of time" to comply but there is no definition of "reasonable." The home owner bears too great a burden to comply with this ordinance as many people are experiencing financial hardships because of the economy. LHIP loans must be repaid. The proposed assistance also relies too heavily on volunteer help. George Smith, 1717 Cedar, opposed the ordinance as any problems with yards and fences in Fort Collins is not great enough to warrant this level of regulation. Lloyd Walker, 1756 Concord Drive, supported passage of the ordinance as the appearance of neighborhoods is a factor in safety and crime prevention. The ordinance reinforces that a value is placed on maintaining one's landscape and he requested Council add dead trees and shrubs to dirt/dead yards and dilapidated fences. Carrie Gillis, 2213 Timber Creek Drive, urged Council not to adopt the ordinance as it places a burden on property owners and will affect affordable housing. Nancy York, 130 South Whitcomb, encouraged Council not to adopt the ordinance as the costs to property owners would be too great. Eric Kronwall, 1119 Monticello Court, stated his appreciation for removing peeling paint and roofing from the ordinance. ("Secretary's note: The Council took a brief recess at this point in the meeting.) Councilmember Troxell asked what number of yards and fences in the city would be considered problems and who would be responsible for enforcement. Beth Sowder, Neighborhood Services Manager, stated a study done by staff last summer in the northwest quadrant of the city showed 106 potential violations of the dirt yard standard and 15 fence violations. At that time, staff only viewed properties from the public street. The Code Compliance Inspectors in Neighborhood Services would be responsible for enforcement of the Code. 21 July 15, 2008 Councilmember Troxell asked for the fine schedule for infractions. Sowder stated the fine schedule would follow the civil infractions as listed in the City Code, with a $100 fine for the first violation. The fine would not be imposed until all efforts to provide assistance and a sufficient amount of time for the property owner to correct the problem. Councilmember Troxell stated adding more restrictions on properties without enforcing the current restrictions will not solve the problem of property maintenance and will not result in better neighborhoods. Councilmember Poppaw asked if there was currently any recourse if a property has a dirt front yard. Sowder stated a dirt yard would not be in violation of the present Code. Councilmember Brown asked if Larimer County has agreed to expand its LHIP program to include dirt yards and dilapidated fences. Sowder stated she has spoken with the Larimer County Home Improvement Program Board and it has agreed to accept money specifically set aside to administer this program to provide assistance for yards and fences. The program is already in place to handle home improvement projects. The City would provide funds to LHIP and it would administer those funds for Fort Collins residents who would apply to receive assistance specifically for yards and fences. Councilmember Brown asked if weeds were considered ground cover for a yard. Sowder stated the yard coverage includes anything green that grows or non -vegetation such as mulch and gravel. Councilmember Brown asked for the specifics of the loans LHIP makes to low-income residents. Sowder stated the loans are dependent on the person's ability to pay back the loan; some loans are deferred until the property is sold. The interest ranges from 0-5%, and, the repayment schedule depends on the property owner's ability to pay. Sowder will provide information about the handling of loans in default in this program. Councilmember Poppaw asked if vegetable gardens would be allowed in a front yard. Sowder stated vegetable gardens in the front yard are currently allowed under the Code and would continue to be allowed under the proposed ordinance. Councilmember Ohlson asked if the terminology could be changed from "nuisance" to "good neighbor" in the ordinance. City Attorney Roy answered in the affirmative. Councilmember Ohlson asked if the assistance program would include grants for low-income homeowners as well as loans and if $25,000 was available to provide those grants. City Manager Atteberry stated the City could provide $25,000 on a one-time basis, then the program could go through the BFO process. City Manager Atteberry asked if staff had examined the possibility of administering an assistance program through the City instead of using LHIP. Sowder stated Neighborhood Services could administer a grant program with specific criteria through its current Neighborhood Grant Program, but using LHIP is a good collaboration as it already has the program in place and start-up money 22 July 15, 2008 would not be needed to begin another administrative process. LHIP is willing to administer the program using either grants or loans, as long as the City has provided funding for these specific items. It costs less to administer grants; however, the program is not self-sustaining as there is no payback but would need a continual funding stream. Councilmember Ohlson noted his preference for providing grants for low-income property owners to enable them to purchase materials and administering those grants through a City program. City Manager Atteberry stated staff would analyze both options and determine whether using LHIP or administering grants through the Neighborhood Services program is a better option. Mayor Hutchinson stated there was a balance to be maintained between the role of the City in setting property maintenance standards and property owner rights. Front yards and fences tend to be part of a public interface. Backyards are more private areas and not in the public eye. He asked if any consideration was given to exempting back yards from the proposed standard and what would be the process of detection, inspection and enforcement for back yards. Sowder stated enforcement would be done on a property where it is visible from either a public right-of-way, including an alleyway, or the ground level of a neighboring property. Code compliance inspectors only go onto private property when property owners request them to do so in order to view something. One option would be to specify that violations would only be addressed if they were seen from the public street or sidewalk as opposed to an alley or a neighboring property. There are potential problems with including back yards and fences in the regulation as there could be an issue of ownership of a dilapidated fence since it could be located on a property line. Councilmember Roy asked for more information on requiring property owners to remove dead trees and shrubbery. City Manager Atteberry stated staff would provide that information. Councilmember Manvel asked if most properties with dirt yards and dilapidated fences became that way through neglect or because the owners could not afford to keep up their property. Sowder stated there was no way to determine the cause until regulation is put into place and statistics are gathered on violations that are issued. Councilmember Ohlson asked if addressing only violations that could be seen from the public street or sidewalk would include backyards that could be seen from the street. Sowder stated any part of a yard that could be seen from a street or sidewalk would fall under the proposed standards. Councilmember Manvel made a motion, seconded by Councilmember Ohlson, to adopt Ordinance No. 088, 2008 on First Reading. Councilmember Ohlson stated living next door to a property that has a dirt front yard is a problem and can lower property values. Appearances matter and allowing properties to have dirt yards and dilapidated fences deteriorates the quality of life in neighborhoods. Neighboring communities have already put these standards into place. Assistance will be offered to aid property owners in bringing their properties into compliance and enforcement will be used as a last resort. He supported amending the ordinance so that it only applied to violations visible from the street and sidewalk and eliminated backyard violations. 23 July 15, 2008 Councilmember Manvel asked if changing the terminology from "nuisance" to "good neighbor" was possible. City Attorney Roy stated the issue is larger than just changing this ordinance. An entire chapter of the City Code is devoted to the regulation of nuisances. Declaring a condition a nuisance is one justification for regulating the condition. Many other changes need to be made to be consistent within the Code. He would review the possibility of changing the terminology within this ordinance as long as the change does not undermine the validity of the regulation. Councilmember Manvel noted changing the terminology within the ordinance may not be necessary as most people will not read the ordinance but using different terminology in material provided to the public could be a better approach. Mayor Hutchinson asked if the proposed regulations could be included in a different part of the Code and not be placed under the Nuisance chapter. City Attorney Roy stated, from a legal standpoint, there was no problem with declaring these violations a nuisance in the ordinance, explaining the justification in terms of a nuisance and using the terminology "good neighbor policy" in material provided to neighbors. Removing the term "nuisance" from the ordinance itself will require further legal review. Councilmember Ohlson stated the goal was to make this ordinance user friendly and not to eliminate all nuisance ordinances. Councilmember Manvel made a friendly amendment to add a provision that enforcement only applies to areas visible from the public street. Councilmember Ohlson accepted the amendment. Mayor Hutchinson asked if further direction was needed for staff to review the ramifications of removing the term "nuisance" from the ordinance. City Attorney Roy stated direction has been received to review the term "nuisance" and he will provide Council a recommendation about revising the language. Councilmember Manvel clarified the amended motion does not contain any reference to revising the term "nuisance" and he noted the City Attorney will review the issue of using the term "nuisance" throughout the City Code and will give Council a legal opinion at a later date. Councilmember Roy asked how this amendment to the motion would affect enforcement by Neighborhood Services. Sowder stated staff would only apply this Code to any areas of a yard that are visible from the public street or sidewalk. Staff would not apply the Code to areas of yards that might be visible from alleys or the ground level of a neighboring property. Councilmember Roy stated he could not support the amended motion as he had seen properties in his district where violations were visible from alleys and enforcement should include areas of yards visible from alleyways. Councilmember Ohlson stated the proposed ordinance only addresses dirt yards and fences in ill repair that could be removed or fixed and does not address other violations or problems. 24 July 15, 2008 Councilmember Roy noted the violations on properties he had seen in his district were not dirt yards or rundown fences. Councilmember Brown stated he could not support the motion as adding these standards will place a too great a burden on low income property owners. It is an intrusion on neighbors and is not encouraging neighbors to help neighbors. Councilmember Troxell stated regulating dirt yards and fences would only lead to further regulations of private properties and pits neighbor against neighbor. Councilmember Roy stated staff and Council has worked many months to develop this ordinance and, while it does not provide solutions to other problems that exist with homeowner properties, it is a step in the right direction and can be strengthened at a later date. Councilmember Manvel stated assistance will be provided for property owners who cannot afford to bring their property into compliance. Properties that do not comply with the proposed standards lower the value of homes in a neighborhood and these standards will make a difference to neighbors who have to live near such properties. There are those who do not care about the effect of the appearance of their properties on their neighbors and having an enforceable code will allow the City to address egregious problems. Councilmember Poppaw stated this ordinance will encourage neighbors to be good neighbors and care for their property. The assistance measures will alleviate some of the financial burden this ordinance could cause. Councilmember Ohlson stated low income property owners will benefit from these standards and the assistance offered. Loans through existing programs and grants with volunteer help to assist in repair will be available to those who qualify. The ordinance will not pit neighbor against neighbor but will avoid conflicts between neighbors as enforcement will based on standards the code compliance inspectors can measure. Mayor Hutchinson stated the amended ordinance will benefit Fort Collins, does not intrude into back yards and provides assistance to those who cannot afford to bring their properties into compliance. The vote on the motion as amended was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays: Brown, Troxell. THE MOTION CARRIED. Jeff Scheick noted Neighborhood and Building Services has recently received the Building Code and Inspection Service Analysis from the Insurance Service Office (ISO), which is the organization whose primary mission is to provide advisory insurance underwriting and rating information to insurers utilizing a building code effectiveness grading classification. In 2005, the City scored a "9" for commercial and "4" for residential, on a scale of 1 to 10, with 1 being the best. The ISO has done another assessment of the City for 2007 and scored the City at a "2" for both commercial and 25 July 15, 2008 residential. The scoring is based on the adopted Building Codes, the updates with respect to the International Building Code and the International Energy Conservation Code, the qualifications of the building inspectors and the number of inspections done. Items Relating to the Boxelder Regional Stormwater Master Plan, Adopted on First Reading The following is staff s memorandum on this item. "FINANCIAL IMPACT The latest capital cost estimate for the regional improvements is $12.5 million. A FEMA grant of $3 million reduces the costs to be shared by the Town of Wellington, Larimer County and the City of Fort Collins to $9.5 million. Fort Collins'share is about $1.9 million. This will not require an increase in Fort Collins stormwater rates nor significantly affect the 30 year stormwater program build out. EXECUTIVE SUMMARY A. Resolution 2008-068AuthorizingExecution ofanlntergovernmentalAgreementEstablishing the Boxelder Basin Regional Stormwater Authority as a Separate Governmental Entity and Approving the Boxelder Creek Regional Stormwater Master Plan. B. First Reading of Ordinance No. 089, 2008 Amending Chapter 26 ofthe City Code to Reflect the Adoption of the Boxelder Regional Stormwater Master Plan. As requested by City Council in 2004, City staff along with representatives from Lorimer County, the Town of Wellington, and other agencies and interests, have prepared a proposed Boxelder Regional Stormwater Master Plan. The same group also studied options for implementation and is recommending a Regional Stormwater Authority. Staff believes the proposed Boxelder Regional Stormwater Master Plan will be beneficial to the citizens of Fort Collins because it will protect the health, property, safety and welfare of the City; the ecological health of Boxelder Creek will be enhanced; pollution will be reduced; and is cost effective. It is to the City's advantage to participate in the proposed regional authority because it makes already cost effective improvements more economical by sharing costs; it avoids substantial public infrastructure costs for road crossings; it equitably shares the cost between participating agencies; it provides economic benefits by removing undeveloped lands with frontage along I-25 from the f oodplain; and it provides the means to begin to solve stormwater problems in areas that will likely be in the City limits in the future. The interests ofthe City are protected by inclusion oflanguage to ensure a holistic approach toward stormwater quality best management practices, stream stability, and habitat enhancement; by M July 15, 2008 inclusion of an impact fee to equitably recover costs from properties when they develop; and by representation on the Authority Board to influence Authority direction. BACKGROUND PROPOSED BOXELDER REGIONAL STORMWA TER MASTER PLAN In 2004, City Council adopted the stormwater basin master plan for the Boxelder basin west ofI--25. A master plan for the portion of the basin east of I-25 was not adopted because of the need to develop a regional approach with adjacent government agencies. The City of Fort Collins, Lorimer County and the Town of Wellington, along with representatives from the Colorado Department of Transportation, private property owners, the Colorado Water Conservation Board, the Boxelder Sanitation District and two irrigation and reservoir companies formed a team known as the Boxelder Alliance to provide funding and direction for the development of the regional master plan. The Master Plan contains 512.5 million in regional flood control projects which benefit the Town of Wellington, Larimer County, and the City of Fort Collins. These improvements would be funded by the participating agencies. The characteristics of the Boxelder Basin, the history of the Basin, the potential for damages, and the proposed improvements are summarized in the attached Proposed 2006 Boxelder Creek Stormwater Master Plan Summary. (See Attachment 1) Ofparticular interest to City Council may be the fact that the proposed Master Plan only reduces flows in the overflow area next to I-25; flood flows along historic Boxelder Creek south of County Road 54 are not changed. Intergovernmental Agreement for Stormwater Cooperation Stormwater Authority The proposed Intergovernmental Agreement (IGA) between the participating agencies would form an Authority to jointly fund, build, own and operate the regional stormwater facilities in the Boxelder Creek Basin. County public improvement districts, county local improvement districts, municipal special improvement districts, Title 32 special districts and a regional Stormwater authority were researched as various ways to fund the improvements. The selected option was a regional Stormwater Authority (Authority) supported by a monthly stormwaterfee and a plant investment fee. A feasibility study was completed to determine each entity's appropriate share, the optimum level for the Authority's average fees and the timing of the improvements in the basin. Key provisions of the Intergovernmental Agreement to form the Authority are: The service area of the Authority is those lands tributary or contributing runoff to Boxelder Creek 27 July 15, 2008 • The Authority would fund the design, construction and operation and maintenance of the regional stormwater improvements. • The Authority would be primarily a funding mechanism, not another significant layer of government with multiple employees. • Fort Collins would pay its share from existing stormwater utilityfees collected in the basin. • Wellington and Lorimer County would enact new fees for their shares ofthe improvements. • The Authority would be governed by a five member Board of Directors. Each Member (County, Town and City) selects one Director. There are two unaffiliated Directors; one selected jointly by the County and Town, and one selected jointly by the County and City. At least one of these unaffiliated Directors shall not be employed by or be an elected official of any Member. Each Director has one vote. • The Authority can only be dissolved by unanimous vote ofthe Members, and only ifall debts of the Authority have been paid or provided for. • The Authority would cooperate and collaborate to improve stormwater quality and protect and enhance Boxelder Creek • An Authority Manager would be hired or the Authority would contract for services. The Manager would likely be employed on apart -time basis and could bean employee of one of the Members. • The IGA sets a range of average monthly fees for developed properties and plant investment fees for newly developing properties anticipated by the authority. Once proposed by the Authority's board of directors, unanimous approval from participating jurisdictions would be required to approve any changes to the range offees. The Directors have the authority to set the fees within the range set in the IGA. • Financial participation would be determined by each jurisdiction's developed area in the basin. As annexation and development occur over time, participation by the jurisdictions would change accordingly. Overall, it is estimated County properties would pay for approximately 50116, Town of Wellington 30%, and the City of Fort Collins 20%. These numbers could change slightly if Timnath extends its GMA north of Mulberry Street. In order to estimate what each entity's overall share of the regional improvements would be, the following table showing the current and projected future totals for each jurisdiction was prepared. Jurisdiction Current Area Current (%) Current with GMA Area GMA (%) Fort Collins 4,080 acres 12 % 6,198 acres 17.7 % Wellington 1,811 acres 5 % 2,131 acres* 6 % Timnath 1,685 acres** 4.8 % Larimer County 29,182 acres 83 % 25,079 acres 71.5 % * Estimate because Wellington's GMA is being developed at this time. * * Includes the recently proposed GAM expansion north of Mulberry Street. Assumes Timnath participation based on those lands tributary to Boxelder Creek north of Prospect Street per the proposed IGA between Timnath and the County. Larimer County and the Town of Wellington are scheduled to consider this item later in July, after City Council consideration. At this time staff does not have the exact dates for these discussions. July 15, 2008 City Council Work Session City Council discussed this item at its May 27, 2008 Work Session. A summary of that discussion is included in Attachment 2. Council asked staffto recalculate the benefit/cost ratio using only benefits normally used by the City (i.e., excluding certain indirect benefits.) With the recently revised cost estimate of $12.5 million and using the City's standard method, the revised benefit to cost ratio for the entire basin is 1.48. Council asked staff to ensure the Authority would use a common holistic approach toward stormwater quality best management practices, stream stability, and habitat enhancement and protection. The IGA includes language such that the creek is protected and enhanced as the master plan is implemented. As feasible, projects will include the design ofpermanent natural habitat and other natural features. Specifically, items considered would include the enhancement and restoration of native vegetation, wildlife habitat, naturally meandering stream channel topography and other similar natural features. Specifically targeted are the lowest quality reaches of the stream, which will result in a more consistent stream from an ecological perspective. All improvements of the Authority will be designed utilizing best management practices so as to minimize the potential impacts to stream water quality. Council asked staff to ensure the Authority would integrate the stormwater master plan with trails and buffers along the creek corridor. The IGA provides that the Authority would cooperate and collaborate with other governmental entities and property owners, to incorporate and to encourage the design ofimprovements to provide for natural habitatpreservation and restoration, preservation ofview sheds and aesthetic values, transportation connections, such as trails, and to advance other compatible public purposes and uses. Council asked staff to provide responses to comments by the Water Board, Natural Resources Advisory Board and Land Conservation and Stewardship Board. Responses not covered elsewhere in this Agenda Item Summary are covered in Attachment 3. Public Outreach The process of informingproperty owners located in the basin during the development of the master plan began in early 2005 and continues today. A variety of communication tools such as customer mailings, web pages, press releases, media interviews, public and one-on-one meetings, open houses, and outreach to both internal and external groups were used. During the development of the master plan, the Alliance met on a monthly basis. These meetings were open to the public with many interested parties attending. Open houses were held and newsletters were mailed to properties located in the basin throughout the development ofthe master plan. Also, property owners and key entities did have a representative on the Alliance and were an integral part in the development of the master plan. 29 July 15, 2008 A second phase of the outreach program is being initiated by Larimer County and the Town of Wellington regarding the formation of their stormwater utilities. City Boards and Commissions The Water Board discussed this matter at its April 2008 and June 2008 meetings. Excerpts of the Water Board's meeting minutes and a letter from the Board is included in this packet. (See Attachment 4) The Natural Resources Advisory Board discussed this matter at its April and May 2007 meetings andpasseda recommendationfor adoption. A letter with the NaturalAreas Advisory Board recommendation and excerpts of the Board's minutes are included in this packet. (See Attachment 5) The Planning and Zoning Board discussed this item at its May 2007 work session, expressing general support of the master plan. The Land Conservation and Stewardship Board discussed this item at its May 2008 meeting and an excerpt of those minutes is included in this packet. (See Attachment 6) ITEMS TO CONSIDER REGARDING THE REGIONAL AUTHORITY • Execution ofan IGA wouldformalize cooperation betweenjurisdictions andensure equitable participation. • To mitigate the flooding hazards on Boxelder Creek, it's more efficient to take a regional approach. • The IGA enables staff to initiate regional discussions on compatible public purposes and uses such as, stormwater quality, natural resource protection and enhancement, and trails. • Creation of an Authority creates an organization supported by multiple jurisdictions that would be advantageous in the application ofgrants. • The enactment offees by the County and Wellington enables their financial participation in the improvements. The City of Fort Collins would not have to do it alone. • Currently the City's share is relatively small compared to the others. • Boxelder Creek has a long history of flooding. The master planned improvements reduce flood damages on existing structures and removes the overtopping of roadways used by property owners and emergency response vehicles. • The master plan strives to achieve a balance between reducing flood damages and maintaining the natural functions of Boxelder Creek. • There will be economic benefits for removing undeveloped lands with frontage along 1-25 from the floodplain. • After construction of the improvements, maintenance of the improvements will be shared. • For the area south of Prospect, Timnath has declined to participate in the regional improvements and is proceeding with the construction ofits own improvements. Timnath has submitted a Conditional Letter of Map Revision (CLOMR) to the Countyfor review and approval. The CLOMR is the first step in the federal process to ultimately revise the federally designated FEMA floodplain map in Timnath. • If Fort Collins chooses not to participate, the Countyplans to assign a FEMA-approved $3 million PDMgrant for Phase 1 of the Boxelder improvements to Wellington. The County would then decline to participate in any future cooperative efforts in regard to stormwater on Boxelder Creek. If this happens, it is anticipated Wellington would do the same. This 30 July 15, 2008 would result in the loss ofpartners for Fort Collins in regional stormwater cooperation both strategically and financially. If the other jurisdictions decide to continue efforts on Boxelder Creek and the City chooses not to, then the City will lose its "place at the table " to participate in the discussions. " Bob Smith, Water Planning and Development Manager, stated in 2004, Council requested staff develop a Master Plan for Boxelder Creek. A regional improvements Plan has been developed that will require $12.5 million to implement with the funding proposed to be provided jointly by the Town of Wellington, the City of Fort Collins and Latimer County. Boxelder Creek is a basin covering approximately 260 square miles. Boxelder Creek has a floodplain covering 5,000 square miles and history of flooding that impacts multiple jurisdictions. The Master Plan improvements are proposed in four key areas: a Clark Reservoir detention facility, Edson Detention Pond, middle Boxelder Creek improvements and the Larimer and Weld Canal Crossing. Larimer County has been approved for a FEMA pre -disaster mitigation grant of $3 million to help fund these improvements. The $3 million grant includes a $1 million match with 50% provided by Latimer County, 30%provided by Wellington and 20%provided by Fort Collins. The City's portion of the match would be $200,000. Revenues are appropriated in the Boxelder Basin budget for the match. It could take ten years or more to finish the improvements, but when they are completed, approximately 2500 acres of land will be removed from the floodplain. About 1400 acres of those 2500 acres is currently vacant, with 500 acres located within City limits or the Growth Management Area. The improvements will remove 306 structures from the floodplain and road overtopping designation from 33 road crossings. Staff has determined that a Stormwater Authority is the most logical mechanism to fund the proposed improvements. The proposed Stormwater Authority would be governed by a 5-member board, one member appointed by each agency, one member appointed by the City and the County and a member appointed by Wellington and the County. The Authority would be a financing vehicle, not another layer of government and would foster the opportunity to apply for grants since it would be a multiple -agency organization. It would have uniform fees and impact fees in the Basin. Property in Fort Collins, Wellington or the County would all have the same fee. The intergovernmental agreement would set a range on the rates and monthly and impact fees. The IGA contains provisions for the protection and enhancement of the environmental features on Boxelder Creek. Maintenance of the facilities is also addressed in the IGA. Timnath has submitted a Conditional Letter of Map Revision (CLOMR) to the County for its own project to build and address its floodplain needs. If the City does not participate in the IGA, the County and Wellington will continue to pursue the grant. The County will decline to participate in any stormwater programs on Boxelder Creek or with a stormwater authority that might be formed to fund the remaining projects. Jim Hibbard, Water Engineering and Field Services Manager, stated participation in the Boxelder IGA will provide a positive benefit to the citizens of Fort Collins. Protecting over 300 structures from the threat of flooding and reducing or eliminating road overtopping on 33 road crossings will 31 July 15, 2008 protect the health and safety of citizens. A partnership with the other agencies will share the costs and make the project more economically feasible. Road infrastructure costs will be reduced and the Project would assist with economic development in the area. Provisions have been added to the IGA that provide for the design of Authority projects to protect and enhance environmental aspects of the projects. The IGA also contains the provision that the Authority will collaborate with public agencies and private property owners to support preservation of habitats, viewsheds and aesthetics and trails and transportation connections. Even though both the City and County have a 100-foot buffer zone along Boxelder Creek, a trail could be located within the buffer zone, provided it is compatible with the ecological character or wildlife use of the natural habitat. The Master Plan does provide some protection for the riparian corridor as it will eliminate the overflow but will maintain the flows within Boxelder Creek. The City's interests have been protected in the IGA. Council would appoint one member to the Authority's Board and jointly appoint another member with Larimer County. A range limit has been placed on rates and fees. Member agency approval will be necessary to change the rate and fee limits as well as to allow the Authority to issue debt. The costs of implementing the improvements to the Basin will be shared by member agencies. Lori Brunswig, 1901 Ridgewood Road, stated the Master Plan will cost considerably more than $12 million to implement and she asked for clarifications of the cost of the Plan. Larry Noel, Mayor of Wellington, urged Council to approve the IGA and the Plan as it will be beneficial to both Wellington and Fort Collins. Marc Engemoen, Larimer County Public Works Director, expressed the County Commissioners' support for the formation of the Boxelder Stormwater Authority as it will help to protect lives and property. Larry Lorentzen, Wellington Town Administrator, supported the regional effort to form a stormwater authority and he stated Wellington has adopted the Boxelder Regional Stormwater Master Plan and created a stormwater enterprise to collect stormwater fees. The Town Board will consider the IGA next week. Gary Wockner, 516 North Grant, stated the Water Board voted against the proposed Master Plan because current City stormwater fees would be funding this project that would remove developable land from the floodplain along I-25 and not require future developers to pay the expense to meet the City's floodplain regulations. Rising gas prices will keep citizens from driving long distances to shop and will make any development along I-25 riskier. The Plan would subsidize I-25 development. He did not support the Master Plan or IGA. Nancy York, 130 South Whitcomb, questioned the amount of staff time spent on this project. She did not support the Plan. 32 July 15, 2008 Councilmember Brown asked if the City's stormwater fees will increase if this project moves forward. Hibbard stated the project should not cause stormwater fees to increase, based on the projected 25-year build -out. Councilmember Brown asked about the consequences if the City does not approve the Plan or IGA. Hibbard stated the County has informed staff that if the City chooses not to participate, the County and Wellington would accept the $3 million FEMA grant and build the Clark reservoir project, which is primarily beneficial to the Town of Wellington. The Town of Timnath is proceeding with building its flood control improvements on the lower portion of the Basin, which will leave the middle portion of the Basin, which is located in the City limits or in the GMA, for the City to fund improvement projects on its own, at a cost much greater than the $1.2 million the City would contribute with the proposed Plan. Councilmember Brown asked ifAnheuser-Buschwas located in the floodplain in this area. Hibbard answered in the negative. Councilmember Manvel asked if the County would make any improvements to Edson Reservoir or modifications to Boxelder Creek, which are located outside the City's GMA, if Council chooses not to approve the Plan. Hibbard stated the County has indicated it will not make any of these improvements. Much of the area currently in the County is also contained in the City's GMA and will be annexed into the City at some point in time. Areas such as the commercial zone at I-25 and Mulberry are located in the County and have severe stormwater problems. Establishing the Authority now starts the funding stream in the County to help address those areas that may be annexed into the City at a future date. Councilmember Ohlson asked what would happen to Wellington should the Plan not be approved by Fort Collins and if staff would help Wellington if the Plan was not approved. Hibbard stated Wellington would proceed with the County and improvements to Clark Reservoir would be made, which would be beneficial to Wellington. The City has provided grant writing expertise with the application to FEMA and that expertise has been beneficial to Wellington. Staff could provide some expertise and guidance to Wellington but could not be involved in a major project unless it benefitted Fort Collins. Councilmember Ohlson asked what other projects would be approved with the adoption of the Plan. Hibbard stated the Master Plan takes a comprehensive look at drainage improvements, including sizing culvert crossings for all the roads and the total Master Plan includes the cost of those culverts. Those costs are not typically paid out of the Stormwater Fund and might be projects that are never built. In addition to the $12.5 million in regional improvements, the Plan includes costs for road improvements that are part City, part County and part Wellington responsibilities that will be made in the future. The Master Plan provides the criteria by which to size the culverts under those roads at a total cost of approximately $10 million that are not necessarily being funded as a part of the regional improvements. The overall Boxelder Master Plan restated some of the costs associated with Boxelder Creek at Prospect Road which is in the City limits and contained in the 2004 Master Plan. The consultant included those costs in the proposed Master Plan to make the Plan a basin -wide model. The improvements to Boxelder at Prospect Road have already been approved as a part of the 2004 Master Plan. The IGA addresses the $12.5 million in regional improvements. 33 July 15, 2008 Mayor Hutchinson noted approval of the Master Plan is not the same as appropriating the funds for all the improvements listed in the Plan. The proposed IGA focuses on a part of the Master Plan. Hibbard stated the Master Plan will contain statements indicating there are other projects that should be addressed, if development proceeds in the area. Councilmember Manvel asked why a copy of the Boxelder Creek Regional Stormwater Master Plan was not included with the Resolution. Smith stated the Master Plan examines a system as a whole, from one end of the basin to the other, from Clark Reservoir to the Poudre River under 1-25 and Prospect. All the improvements west of I-25 have already been approved as part of the 2004 Master Plan, including stability and erosion control along Boxelder Creek and improvements to Prospect and Mulberry. The proposed improvements are those determined to have a regional benefit, at a cost of $12.5 million, and relate to reducing the flows for the members of the Authority. The focus is the regional Master Plan associated with the IGA. Councilmember Manvel asked what would happen if Council did not approve the Master Plan. Smith stated approval of the IGA needs to include approval of the Regional Master Plan, which contains $12.5 million in improvements. Councilmember Ohlson asked if CSU had reviewed the proposed Plan. Hibbard stated CSU has not reviewed the Plan as it is in Master Plan form. When the design stage of the project is reached and decisions need to be made as to the specific type of best management practices to be used, whether creation of wetlands or restoration of the creek, staff could ask CSU to review the design. The Master Plan contains two items not included in the $12.5 million: $10.1 million for improvements at Prospect and Boxelder Creek as it was already approved in the 2004 Master Plan and $9.6 million for various roadway crossings in the Basin. Councilmember Ohlson asked if using stormwater funds for these improvements would benefit and subsidize landowners and developers without requiring them to pay their fair share as removal of their land from the floodplain will increase the value of that land. Hibbard.stated vacant property does not pay stormwater fees. When a property is developed, an impact fee is paid by the development that covers the cost of a portion of the improvements previously made and paid for by the rate payers. The development then pays its share of the rates, along with all the other rate payers so that the development stays current. Councilmember Manvel asked if the impact fee was the same, regardless of where a property is located. Hibbard stated the fee is the same as everyone shares in the responsibility for the mediation of flood waters. In this Basin, the floodplains were widened in 2001 when the rainfall standard was changed which devalued many properties. Smith stated the fees in City Code are based on the amount of runoff or the demand a property places on the system. There is no difference in fees based on zoning or other criteria. Mayor Hutchinson asked for clarification of the goals and policy used for the planning of the Master Plan. Hibbard stated the policy is to protect the health, safety and property of the citizens of Fort Collins. All Master Plans recommend projects that should be built based upon the benefits to existing structures. These projects do take vacant land out of a floodplain, but that is not the reason the improvements are proposed. The impact fee was put into place to balance the potential inequity 9M July 15, 2008 of someone getting "a free ride" based upon projects that previous rate payers have paid for. The impact fee is also based on the imperviousness of a development to ensure it is paying for the demands being placed on the system. Mayor Hutchinson noted taking land out of the floodplain is a secondary benefit from these improvements but the policy is structured so that development is not subsidized. Hibbard stated policy would need to be changed if the City wanted to charge more for people who own property in floodplains. The impact fee was designed to ensure that development paid its fair share and was not subsidized. Councilmember Manvel asked what other major stormwater projects are being planned. Hibbard stated the Old Town Basin and the Canal Importation Basin are the most capital intensive. Upcoming projects in the Old Town Basin include projects through the Old Town area west to LaPorte and Shields. The Canal Importation Basin currently has the Red Fox Meadows project underway and another $20-$30 million in projects are left to be built in that Basin. Old Town Basin and the Canal Importation Basin were essentially built out before the advent of the modern stormwater system and are the basins that need the most improvements. Councilmember Manvel asked what the consequences would be if the fee policy for stormwater fees was reconsidered. Hibbard stated a large amount of funding for projects could be affected if the fee policy were changed. If the goal is to make stormwater fees less expensive, there are options available such as adopting a lower level of protection. The current Policy is that a project is included in the Master Plan if it will save money for citizens in the long run. Councilmember Manvel asked how the benefits provided by these improvements were calculated. Hibbard stated the benefit to cost ratio of 1:48 was the benefit for the entire project, not just for Fort Collins. All the projects work together to produce the final outcome. The calculations were based on the cost of damages caused by a 100-year flood, the damages caused by a 50-year flood, the damages caused by a 25-year flood, combining them with probability analysis, annualize that statistic and compare to present worth. The calculation does not take into account any increased value of land or loss of life. Mayor Hutchinson noted the fee policy can be changed at a later date and the planning for this Master Plan was done in accordance with current policy. Hibbard stated this plan is in compliance with current policies. Mayor Hutchinson asked for the benefits of proceeding with the Regional Stormwater Authority. Hibbard stated regional cooperation will ensure each party pays its fair share of the improvements. It is a major milestone to have two other jurisdictions to partner with this project and to address these regional improvements, as well as other improvements such Mulberry and I-25. This regional cooperation will make it easier for the City to annex areas in the GMA that have already had these stormwater improvements added so the City will not have to pay for those improvements at a later date. Councilmember Roy stated the IGA has strict guidelines regarding changes and it will be difficult for Fort Collins to leave the Regional Stormwater Authority at a later date, if it chose to do so. He 35 July 15, 2008 asked for the total cost of executing the entire Master Plan by the Authority. Smith stated the cost is $12.5 million for the regional components. Hibbard stated the Plan does restate improvement projects contained in the 2004 Master Plan at Boxelder Creek and Prospect. The Regional Authority will not pay for those improvements as that area is entirely within the jurisdiction of the City of Fort Collins and benefits only the City. The Town of Wellington is establishing a stormwater utility that will pay for some of the regional components but will also cover costs for projects that will benefit only Wellington. Councilmember Roy asked if the Regional Authority would have the ability to make all the improvements listed in the Plan, including those improvements that are also included in the 2004 Master Plan. Carrie Daggett, Deputy City Attorney, stated the Authority is being charged with implementing the Master Plan, in accordance with the Master Plan, which clearly identifies the improvements that are considered regional improvements. The Plan also identifies improvements that will be undertaken by individual jurisdictions. Councilmember Roy asked if a monetary value was assigned to any loss of riparian area with the removal of land from the floodplain. Hibbard answered in the negative. Mayor Hutchinson noted the improvements would not change any of the creek flows within Boxelder Creek but the floodplain changes would be made in areas that are dry, except during a 50 or 100-year flood. There will not be any change to riparian habitat. Hibbard stated the flows in Boxelder Creek through the central part of the Basin, as it relates to the City's GMA primarily, will stay the same. Staff did ecological assessments along the Creek and discovered that the locations where the improvements will occur are in portions of the Creek that have been impacted greatly by people. Implementing these projects will raise the quality of the Creek so it is a more consistent stream from beginning to end. In some areas there could be minor loss of riparian habitat but other areas will have the habitat enhanced. Councilmember Roy asked how many homes and structures in the Basin are eligible for flood insurance. Smith stated all homes are eligible for flood insurance, whether or not they are located in a floodplain. It was not known how many structures in the area have flood insurance. ("Secretary's note: The Council took a brief recess at this point in the meeting.) Councilmember Troxell asked for information about the Boxelder Alliance and stated many areas of expertise were represented on the Alliance and the relationships built in that group were valuable in regional cooperation to solve the stormwater issues. Smith stated the Alliance, composed of 10 different agencies and interests, helped direct the development of a master plan and looked at strategies to fund the improvements. Councilmember Troxell noted without regional cooperation the projects could be completed but would occur in a haphazard manner. Smith stated each site would have to comply with floodplain regulations but could still proceed individually. Councilmember Troxell made a motion, seconded by Councilmember Brown, adopt Resolution 2008-068. 36 July 15, 2008 Councilmember Ohlson stated the cost benefit analysis should have included the cost of damage to ecological systems. The proposed improvements did not use 21 st century methods to tame natural, healthy ecological processes such as flooding. Trails should not be placed in a buffer zone located around the Creek. He did not support the Plan. Mayor Hutchinson stated the Alliance and City staff followed long-standing City policies in developing the Master Plan. Councilmember Roy stated his concernwith the organization and governance of the Boxelder Basin Regional Stormwater Authority. Any amendments to the Plan take a unanimous vote of all the entities involved in the agreement, which would be difficult to accomplish. Authorizing the creation of the Authority is creating a separate governmental entity and removes the ability to make policy and ownership of the projects from Council. Councilmember Troxell stated protection of life and property is important and the proposed stormwater improvements will accomplish that goal. A regional solution will benefit all and will be a good use of public funds. Councilmember Manvel stated the current stormwater policy was the basis for the development of the proposed Plan. The current policy should be reevaluated at a later date. He asked for a revision to the Plan to make it clear the only projects financed under the Plan are the regional improvements and not the additional improvements in the City. Daggett stated there is agreement among the members in the Authority to add a provision to Section 5.01 to clarify that the Regional Authority will only have the authority to collect rates, fees and charges will be only for funding regional improvements as described in the Plan. Councilmember Brown stated Boxelder Creek floods, takes lives, destroys property, washes out roads and causes millions of dollars in damage. The proposed improvements will fix those problems for a small amount of funds instead of delaying those improvements to a later date and spending more money. Mayor Hutchinson stated the Regional Authority is a funding mechanism and does not set policy. It is a regional partnership that protects the City's interests and it is to the advantage of the City to participate. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, and Troxell. Nays: Ohlson, Poppaw, and Roy. THE MOTION CARRIED. Councilmember Troxell made a motion, seconded by Councilmember Brown, to adopt Ordinance No. 089 on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, and Troxell. Nays: Poppaw, and Roy. 37 July 15, 2008 Meeting Extended City Manager Atteberry stated consideration of the Metropolitan District Service Plans is time - sensitive and needs to be considered at this time. If a Metro District Policy is adopted, there are two projects, one on Harmony and one on Mulberry, that are anticipated to pursue a Metro District. Councilmember Manvel made a motion, seconded by Councilmember Roy, to suspend the rules and extend the meeting. Yeas: Brown, Hutchinson, Manvel, Ohlson, Roy and Troxell. Nays: Poppaw. THE MOTION CARRIED. Resolution 2008-069 Adopting a Policy Concerning the Approval of Metropolitan District Service Plans Adopted The following is staffs memorandum on this item. "FINANCL4L IMPACT There is no direct financial impact to the City when a Metropolitan District is formed to finance and install public infrastructure related to a development project. The financial impact is to theproperty owners within the Metropolitan District who pay a property tax to the District to pay for the infrastructure construction related to the development. EXECUTIVE SUMMARY The City Council is being asked to consider adopting a policy regarding the formation of Metropolitan Districts. Metropolitan Districts are a common tool used in Colorado to assist in financing significant infrastructure related to developing property. In the past, the City of Fort Collins has not encouraged the use of Districts. Recently, the City has been asked to consider the use of Districts and staffhas drafted a proposed policy on their use and presented the Policy to the Council Finance Committee and the entire City Council in a work session. The City's proposed Policy includes a variety of proposed restrictions on the use of Metropolitan Districts that are outlined in the Agenda Item Summary and Resolution 2008-069. BACKGROUND Overview of Metropolitan Districts A Metropolitan District is a type ofspecial district authorized by Title 32 of the Colorado Revised Statutes. Special districts authorized by Title 32 are quasi -municipal corporation and are political subdivision of the State of Colorado. They are able to issue tax-exempt financing to finance a portion of the total cost of public infrastructure and may also own, operate and maintain public improvements and facilities. W July 15, 2008 As of Apri12008, the number of Title 32 Districts within the State of Colorado totaled 1, 698. Within the total there are the following types: Metropolitan Districts 1,052 Water or Sanitation Districts or Both 277 Fire Protection Districts 126 All Others (Parks and Recreation, Health Services, etc.) 243 Total of Title 32 Districts in the State 1,698 Metro Districts are the most common type of Title 32 District within the State of Colorado, commonly used in both residential and commercial developments in other communities. In Northern Colorado all the larger cities allow for Metropolitan Districts. The City of Boulder is the only city that staff could identify in the state that does not allow metro districts. A Metropolitan District isformed once a "service plan "is submitted to and approved by the jurisdiction in which the property is located. The Service Plan is similar to a City Charter or State Constitution in that it outlines the purpose of the Metropolitan District and its functions and powers. The service plan is submitted to the government agency within which the development is proposed. The service plan is the essence of the Metropolitan District. It outlines key points such as: • A description of the capital improvements to be constructed and/or funded. • A map of the District's boundaries. • An estimate of population and valuation for assessment purposes. • A financial plan showing how improvements and/or services will be financed. • A preliminary schedule showing when debt will be issued. It is very important that the service plan reflect the policy goals and objectives ofthe City. The City Council is the deciding body regarding whether a service plan meets the City's policy goals and objectives — the City Council has the sole discretion to approve or not approve a service plan. A Metropolitan District is a government entity recognized under Colorado law. It has a Board of Directors that meet on a regular basis and the District will often hire staff (usually a professional management company, general counsel and finance personnel). The Board of Directors are publicly accountable and must conduct open meetings with proper notice given to the public and must maintain minutes of all meetings. A Metropolitan District Board must: adopt an annual budget at a public hearing. 39 July 15, 2008 complete an annual audit by June 30th. file an annual report to the City that includes information on the progress of the District in implementing the service plan. The main purpose of a Metropolitan District is to fund infrastructure that facilitates the overall development which typically includes the following types of improvements: • Street Improvements • Stormwater Improvements • Transportation Improvements • Parks and Recreation Improvements • Water Improvements • Sanitary Sewer Improvements • Operations and Maintenance (O&M) for above items Once the District has been formed and service plan is approved, the District may issue tax-exempt bonds, to be repaid by the mill levy and the full faith and credit of the District. This would be similar to debt that the City may issue that is backed by general obligation property taxes. Recommended Fort Collins Policies Relating to Metro Districts Historically, the City of Fort Collins has not encouraged the formation of Metropolitan Districts. The use of Metropolitan Districts has grown statewide from 295 in 1999 to 1052 in 2008, and now nearly all Front Range municipalities allow for their formation. Fort Collins is the only municipality in Northern Colorado that does not allow Metropolitan Districts, which puts the City at a disadvantage in a competitive marketplace. Staffbelieves that Metropolitan Districts are an appropriate tool to offer developers with certain provisions being put in place that are described later in this agenda item summary. Metropolitan Districts allowfor the developer to publiclyfinance significant infrastructure related to the development of an overall project. The developer is then allowed through the District to pay for those improvements over time through the District's assessment ofa property tax that generally lasts for 20 to 25 years, or until the debt is repaid. The City is not involved in the financing of the infrastructure, the burden to repay the debt falls with the property owners in the District area. No liabilityfor making payments falls to anyone outside the District and therefore there is not liability for the City or other residents outside the District. Metropolitan Districts are very common in the development community. They allow a developer to finance significant infrastructure costs and amortize the cost over time, with future property owners and tenants paying the cost. In a project that did not include the formation of a Metropolitan District, the developer has to secure private financing for infrastructure improvements. The Developer then spreads that cost over the development through the sale of raw or developed land and/or through lease/rents. m July 15, 2008 There are potential downsides to allowing Metropolitan Districts. These include having multiple governmental entities within the City, and the potential loss oftax revenues to the State of Colorado and Federal Governments. However, staff sees more positives in allowing Metropolitan Districts than in continuing to discourage their formation. Staff is recommending that the City Council consider imposing several policies that would limit the usage of Metropolitan Districts. The proposed policies are summarized as follows: Metropolitan Districts should be allowed for projects that are mostly commercial, with the exception of mixed use projects, where it is recommended that halfthe assessed value ofthe project must come from the commercial component of the project. Staff's recommendation is to focus the use of Metropolitan Districts on commercial projects which is consistent with the City's attention to sustaining and growing primary employment and encouraging major retail center redevelopment and development. Metropolitan District funds could be used to payfor significant inf •astructure improvements such as: • Major arterial, and arterial roadways • Regional stormwater improvements • Regional water/wastewater improvements • Public/private improvements such as open space, regional trail connections The intent ofthe Metropolitan District is to help f nance major infrastructure thatfacilitates an overall commercial or mixed use project not to take the place of all typical developer required infastructure improvements. 3. Metropolitan Districtfunds can be usedforpayingfor enhancements or improvements above City requirements: Public amenities Landscaping Other projects that the City may deem to be important Often times, a commercial developer will voluntarily propose enhancements that are above and beyond City requirements. It is advantageous to the developer to allow them to finance these enhancements through the Metropolitan District and advantageous to the City in that the overall quality of the development is enhanced. 4. An overall cap on the Metropolitan District of40 mills would be established. Staffbelieves it is important to limit the overall tax liability to future property owners and tenants within the Metropolitan District. A 40 mills cap is sufficient to allow the District to finance significant infrastructure while also limiting the tax liability. It is recommended that the Metropolitan District Board decide how much of the overall cap to allocate to operations and maintenance versus the repayment of debt, as long as the 40 mills cap is not exceeded. 41 July 15, 2008 5. The Metropolitan District would have an overall time limit of 40 years. Given that the purpose of the District is to finance significant infrastructure, it makes sense to then limit how long the Metropolitan District can be in place. Given that most Districts will finance their debt over 20 to 25 years and that debt it generally issued 3-5 years following the formation of the District, 45 years is sufficient time for the District. It is further recommended that the time limitfor the Metropolitan District would start upon the adoption of the Service Plan." City Manager Atteberry stated it is expected that two projects will come forward for a November election if a Metro District Policy is adopted. One project would be in the Harmony corridor and the other would be in the Mulberry/Timberline area. An election would be necessary and would be held in November. Information concerning the Districts and their service plans must be submitted to the County Clerk's office in a timely fashion. This resolution will adopt the Policy and the two projects are separate issues not under consideration by Council at this time. Mike Freeman, Chief Financial Officer, stated the purpose of a Metro District is to fund commercial development and associated infrastructure. A question was raised by the Finance Committee as to how a Metro District might apply to a mixed -use development which would include housing. One of the challenges with the Metro District Policy is that a variety of potential policy questions could arise with different developments that the Policy could not address. Staff is proposing a revision to the Policy that would limit mixed -use projects to those that are predominantly commercial with minimal residential housing. Each Service Plan will be approved on a case -by -case basis by Council. Gary Wockner, 516 North Grant, opposed the Metro District Policy concept as it privatizes profit and socializes cost. The City of Boulder does not allow metro districts as the districts are quasi - governmental taxing, bonding, zoning authorities within the City that can be odds with the City. The District's elected Boards are not as accountable to the public. Metro districts allow private developers on private property to issue tax-exempt bonds that gives private development the same tax breaks as not -for -profit organizations. Rich Shannon, Pinnacle Consulting, stated he has worked with metropolitan districts for ten years and problems associated with a metro district are the exception, rather than the rule. Over 1000 metro districts have been formed and many cities use them to support public policy goals. He encouraged Council to adopt the Metro District Policy with specific guidelines for the development community. Offering the tool of metro districts as a finance mechanism to fund expensive infill development would provide a great benefit to the City. Marcus McCaskin, attorney, Grimshaw & Herring Law Firm, stated his firm represents many metro districts in the State. The proposed Policy sets the framework for how the districts will be handled in the City. He was available to answer any general questions regarding metro districts. Nancy York, 130 South Whitcomb, opposed the Metro District Policy as it will not help the City and will subsidize private development. 42 July 15, 2008 City Attorney Roy stated the Policy has been revised in Section D to read "all Districts and all persons or entities developing property within a District must comply with all provisions of the City Code and Land Use Code and all related standards." Section E has been revised to add "However, mixed use proposals may be considered on a case by case basis." The proposed revision to Section E is an attempt to address the concern that was expressed about mixed -use not being defined or being defined in the wrong way but the idea is to address a mixed -use proposal on a case -by -case basis. Section F (2) has been revised to add "by way of example, Metro District funds could be used to pay for essential infrastructure improvements, including but not limited to the following: (a) major arterial, and arterial roadways; (b) regional stormwater improvements; (c) regional water/wastewater improvements; and (d) public/private improvements such as open space and regional trail connections." This revision provides an illustration of the kinds of situation where a metro district may be acceptable and to answer the concern of using a metro district to fund basic infrastructure instead of using them to fund infrastructure that is more regional in nature that would not necessarily be required of the developer. Councilmember Ohlson stated a metro district is not to be used to fund the normal expenditures that developers would usually pay for developments such as residential streets and stormwater but was to be used for issues that are above and beyond those normal expenditures. He asked if the Policy was "ironclad" about that intent. Mayor Hutchinson noted a metro district would be an instrument to build better and enhanced infrastructure. He asked for language to clarify that a metro district is not for basic infrastructure improvements. City Attorney Roy suggested language that would read in Section F.1: "Formation of a District will not be favorably received if the District will be used to fund basic infrastructure requirements normally required of developers." Mayor Hutchinson suggested a revision to Section F.2: "not to pay for essential infrastructure improvements but to pay for infrastructure enhancements above basic improvements." Councilmember Manvel stated the proposed addition of Section F.2 was not necessary. Councilmember Ohlson asked how difficult it was to revise the Policy. City Attorney Roy stated the Policy is a guide only and nothing in the Policy is intended to limit the discretion of the Council which retains full authority regarding the terms and limitations of all District Service Plans. The Policy is not legally binding and Council has the discretion, on a case -by -case basis, to approve or disapprove a particular proposal. If Council determines the Policy does not operate in a manner Council desires, it can amend the Policy. Councilmember Ohlson noted the Finance Committee was clear that a metro district was not to be used for residential development. In the past, metro districts have been used for residential development with disastrous results. Councilmember Manvel suggested changing Section E to read "....Predominantly commercial as used in the Policy shall mean that the assess value derived from non-residential usage is no less than 90% of the assessed value of the project." With the constraints of the Gallagher Amendment, this would mean a mixed -use proposal would be 75% commercial and 25% residential. He also 43 July 15, 2008 suggested adding "Special circumstances and special cause must be demonstrated for exceptions to be granted" to the end of Section E. City Manager Atteberry stated those changes would be workable. Councilmember Manvel asked Mr. Shannon to comment on the proposed change to the Policy. Mr. Shannon stated the change should be fine as it does send a message that Council will allow the use of metro districts on a conservative basis. The Policy does allow Council the discretion to make exceptions when a project is presented that Council likes and adds significantly to the community. The 90% figure may not mean much to the development community. City Manager Atteberry noted the figure is helpful to staff and does express Council's desire to focus on commercial development. Staff would discourage a developer from bringing a residential proposal to Council for a metro district. Mayor Hutchinson noted the Policy is primarily in support of commercial development as use of metro districts for residential development has caused many problems in other places in the past. Meeting Extended Councilmember Manvel made a motion, seconded by Councilmember Brown to suspend the rules and extend the meeting past midnight. Councilmember Poppaw objected to continuing the discussion on metro districts at such a late hour as citizens who may have wanted to comment on the topic have already gone home. Councilmember Ohlson noted the Metro District Policy was a time -sensitive issue and should soon be completed. He supported continuing the discussion. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Roy and Troxell. Nays: Poppaw. THE MOTION CARRIED. Councilmember Roy asked for citizen input. Nancy York, asked about the consequences to Fort Collins citizens if a project that is financed by a metro district is not completed. Gary Wockner, stated allowing metro districts is a huge decision that will affect how the city grows and develops for a long time. He did not approve of changing the language in the Policy without more consideration and he did not think the discussion should continue past midnight. Councilmember Ohlson asked what the consequences would be if the Policy were not adopted and the two proposed projects did not make the November election. Freeman stated the impact to the City will not be terrible but staff has been working for months to craft a policy that would work for M, July 15, 2008 Council and allow the two proposed projects to place a metro district proposal on the ballot for November. Councilmember Ohlson noted there is a cost to establishing a metro district and he asked for more clarity in the future about the costs of establishing metro districts and URAs and who will benefit from the formation of these financial plans. Mayor Hutchinson stated information about who benefits and who pays for a metro district will be presented when each proposal is considered under the Metro Policy. The resolution under consideration sets a policy to allow Council to formally consider metro districts but does not approve specific metro districts. City Manager Atteberry stated information on individual projects will include specifics as to benefits and costs of the project. Adoption of this Policy preserves a tool to be used by an applicant with a proposed development that Council can take under consideration and decide whether the proposed project is beneficial to the city. Councilmember Poppaw asked for specific information requested by Council to be provided in a more timely manner. She asked how a dispute between the City and the board of a metro district would be resolved and if Council will have any jurisdiction over the Board. Freeman stated a metro district is a separate governmental entity under State law. The purpose of a metro district is set in the service plan and the proposed Policy states the purpose of the district will be limited to only building infrastructure for commercial projects. The powers of the district are approved by Council when the district is formed. It the district acts outside the bounds of its service plan, the City would have recourse against it. If the district does what is stated in the service plan that was approved by Council, no other recourse is available. Councilmember Poppaw questioned the language in the Policy which states "special circumstances and special cause must be demonstrated for exceptions to be granted" and she asked if the Policy could be amended by future Councils. She believed the definition of "predominantly commercial" as no less than 90% of the assessed value could be changed under "special circumstances." City Manager Atteberry stated future Councils have the ability to amend any policy a Council adopts. The language does allow some flexibility and consideration of a project that is special and unique that could be brought before Council. A project that utilizes a metro district might also look at other options for financing infrastructure improvements. Council will have the ability to decide if using a metro district is an appropriate tool for a proposed project. Councilmember Ohlson stated a Metro District Policy should be put in place to see how it works. Amendments can be made to the Policy at a later date. He requested specific information on each project about the costs to the state and federal governments when a metro district is put in place. He did not agree with allowing a development to have 25% residential, as would be allowed with the proposed amendment, as that could become disastrous with those households having tax rates that are three times higher than the rest of the residential property in For Collins. Any fine-tuning of the Policy can be done later. Councilmember Roy stated a metro district would be in existence for 40 years and could not be dissolved, once it was put into place. 45 July 15, 2008 Councilmember Manvel asked for an explanation of "multiple -district structures" and the statement "it is the intent of the City that citizen/resident control of Districts is encouraged to occur as early as possible." Freeman stated situations could occur where a project is phased in and the timing of those phases would create multiple districts. Approval of multiple districts would have to be approved in the service plan and by Council. When districts are first formed, they are generally run by the developers as there are no tenants. In a multiple -district scenario, the idea is for the tenants and/or citizens, if some residential is included, to take control of the district and make decisions. Councilmember Troxell made a motion, seconded by Councilmember Manvel, to adopt Resolution 2008-069, as amended. Councilmember Poppaw stated not enough time has been allowed for consideration of the proposed Policy, with amendments. Councilmember Roy stated the there could be a large, long term impact of establishing metro districts, and not enough time has been given for consideration of the proposed Policy. Councilmember Ohlson stated Council has great control over the formation of metro districts as the Policy requires individual projects receive Council approval before a metro district can be formed. He did not believe having more time to consider the proposed Policy would result in a substantially better Policy than the one that is proposed. City Manager Atteberry stated he would conduct a review of the process to bring proposed policies before Council to ensure Council has enough time for consideration. Councilmember Roy stated the Metro District Policy creates the ability to have different entities that are run by people not elected by the citizens of Fort Collins. Councilmember Ohlson noted all City rules, regulations, design standards, and development process will be in place for a project requesting establishment of a metro district. He asked what powers a metro district board would have. City Manager Atteberry stated all Land Use Code provisions and the development process must be followed for each project. Freeman stated the only authority granted to a metro district board is to finance infrastructure projects for a certain period of time, limited to 40 years, with an assessed mill levy that will has a cap. Councilmember Roy asked how citizens could seek relief if the metro district does not work. Freeman stated the purpose of the district was to finance infrastructure. Problems could arise if the project was not built and there was difficulty in repaying the debt issued to build the infrastructure, and the property owners would need to handle the situation through the district. Having Council only consider projects that are legitimate projects that have gone through conceptual review and have an infrastructure plan, is in the Metro District Plan to minimize any potential long-term problems. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, and Troxell. Nays: Poppaw, Roy. THE MOTION CARRIED. m July 15, 2008 Other Business Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to cancel the regular meeting of August 5, 2008, for National Neighborhood Night Out. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. Councilmember Ohlson made a motion, seconded by Councilmember Manvel to adjourn the meeting to 6:00 p.m., August 12, 2008 for apre-application hearing for Loveland Commercial, North College and Willox. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. Adjournment The meeting adjourned at 12:40 a.m. Mayor ATTEST: �p City Clerk 47