HomeMy WebLinkAboutMINUTES-10/07/2008-RegularOctober 7, 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, October 7, 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, Harris, Roy.
Webelo Cub Scout Pack 94, Den 1 conducted the flag ceremony.
Citizen Participation
Eric Sutherland, 631 LaPorte Avenue, stated the City's municipally -owned utility is an asset for the
community and it was good to celebrate Public Power Week but more needs to be done to improve
electric production and lower the production of greenhouse gases.
Vivian Armendariz, 820 Merganser Drive, thanked Joe Olson, City Traffic Engineer, for doing an
inventory of street corners to determine if pedestrian crossing buttons are handicap -accessible and
for installing a radar -activated crossing detector on the corner of Maple and College to assist the
handicapped in crossing the street. She asked for funding to install more radar -activated street
crossings. She objected to closing City streets for the CSU Homecoming Parade.
Bruce Lockhart, 2500 East Harmony Road, did not support trash districting or recycling trash.
Carrie Gillis, 2213 Timber Creek Drive, stated Council did not have any discussion concerning
funding for transportation issues scheduled this year. Transportation funding is of great concern to
the citizens and needs to be addressed.
Citizen Participation Follow-up
Councilmember Ohlson stated transportation and economic health issues will be discussed every six
months. Transportation issues will be discussed before the end of the year. City Manager Atteberry
noted a work session has been added to the December 16 meeting for discussion of transportation
and economic issues.
Councilmember Poppaw stated Council will have a discussion on transportation when it considers
adoption of the Bicycle Plan at this meeting.
Councilmember Manvel stated a joint meeting with the Windsor Town Board will be held on
November 3 to discuss the I-25/392 interchange.
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October 7, 2008
Councilmember Roy stated the Consent Calendar on this Agenda contains two items relating to the
Mason Corridor which deal with transit, redevelopment and infill for Fort Collins.
Councilmember Troxell stated more regional discussion on transportation issues is needed.
Agenda Review
City Manager Atteberry requested Item # 17 First Reading of Ordinance No. 122, 2008, Temporarily
Suspending the Operation and Enforcement of the Land Use Code and Zoning Map Regarding the
Usage of the "Ricker Building" as an Emergency Daytime Severe Winter Weather Shelter for the
Homeless and Item #23 Resolution 2008-092 Authorizing a Revocable Permit to CGRS, Inc. to do
Environmental Testing on City Property at 220 North Howes Street be withdrawn from the Agenda.
Item #17 does not need to be considered as another site has been secured to provide daytime shelter
for the homeless. Item #23 does not need to be considered because the State is no longer requiring
the testing for contamination on City Property.
Eric Sutherland, 631 LaPorte Avenue, removed Item #9 Items Relating to Utility Rates and Charges
for 2009 from the Consent Calendar.
Bruce Lockhart, 2500 East Harmony, pulled Item # 19 First Reading of Ordinance No. 124, 2008,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary for the
Construction of Public Trail Improvements in Connection with the Mason Corridor Trail Project.
CONSENT CALENDAR
6. Consideration and Approval of the Minutes of the September 2, 2008 Regular Meeting,
Second Readina of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley _ofa Permanent Waterline Easement and a Temporary Construction Easement on the
City -Owned Dry Creek Stormwater Wetland.
The City of Greeley is in the process of building a 30-mile, 60-inch pipeline that will provide
water from its Bellvue water treatment plant located northwest of the City of Fort Collins to
the residents of the City of Greeley and surrounding towns. As part of this project, the City
of Greeley is constructing a portion of the new waterline across the Dry Creek Stormwater
Wetland located south of Vine Drive and east of North Lemay Avenue. Greeley has
requested a 50-foot permanent easement and a 75-foot temporary construction easement from
the Natural Areas Program. The area to be impacted by this project consists of 0.449 acres
within the permanent easement and another 0.656 within the temporary easement. This
Ordinance, unanimously adopted on First Reading on September 16, 2008, authorizes the
conveyance of the permanent waterline easement and the temporary construction easement.
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First Reading of Ordinance No 110 2008 Amending the City Code to Increase the Amounts
of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to
Reflect Inflation in Associated Costs of Services.
This Ordinance increases the fee schedules for the Capital Improvement Expansion fees and
Neighborhood Parkland fee by the estimated 2008 changes in the Denver -Boulder -Greeley
Consumer Price Index ("CPI").
Costs in the Capital Improvement Expansion fees ("CIEF") Study and the fee schedule for
the Neighborhood Parkland fees were calculated using costs from 1995. The fees were last
adjusted in 2007. This Ordinance increases the CIEF and the Neighborhood Parkland fees
by the estimated 2008 increase in the CPI of 3.70%, and the Street Oversizing fees by 6.30%,
which reflects the projected increase reported in the Engineering News Record.
9. Items Relating to Utility Rates and Charges for 2009.
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
The proposed ordinances increase wastewater rates 11 %, electric rates by 2.8% on average,
and electric development fees by 5-6%. If approved, changes would be effective January 1,
2009.
10. Items Relating to the 2009 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 114, 2008, Appropriating Downtown Development
Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009.
B. First Reading of Ordinance No. 115, 2008, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund For Payment of Debt Service for Fiscal
Year 2009.
The Downtown Development Authority Board of Directors (the `Board") adopted its
proposed budget for 2009 totaling $48,730,577 on September 11, 2008. The Board
determined the mill levy necessary to provide for payment of administrative costs incurred
by the DDA at its regular meeting of September 11, 2008. Ordinance No. 114, 2008,
appropriates the DDA and Beet Street operating funds for 2009 and sets the mill levy at 5.00
mills, unchanged since 2002 for the 2003 budget.
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October 7, 2008
Ordinance No.115, 2008, appropriates funds for 2009 DDA debt service payments from the
tax increment received by the City.
11. First Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer ofAppropriated
Amounts Between Funds or Projects.
The purpose of this annual "clean-up" Ordinance is to combine dedicated revenues or
reserves that need to be appropriated before the end of the year to cover the related expenses
that were not anticipated and, therefore, not included in the 2008 budget. The unanticipated
revenue is primarily from fees, charges, rents, contributions and grants that have been paid
to City departments to offset specific expenses. Prior year reserves are primarily being
appropriated for unanticipated operation expenses from reserves that are set aside for that
purpose.
This Ordinance appropriates prior year reserves and unanticipated revenue in various City
funds, and authorizes the transfer of appropriated amounts between funds. The City Charter
permits the City Council to provide by ordinance for payment of any expense from prior year
reserves. The Charter also permits the City Council to appropriate unanticipated revenue
received as a result of rate or fee increases or new revenue sources. Additionally, it
authorizes the City Council to transfer any unexpended appropriated amounts from one fund
to another upon recommendation of the City Manager, provided that the purpose for which
the transferred funds are to be expended remains unchanged; the purpose for which they were
initially appropriated no longer exists; or the proposed transfer is from a fund or capital
proj ect account in which the amount appropriated exceeds the amount needed to accomplish
the purpose specified in the appropriation ordinance.
If these appropriations are not approved, the City will have to reduce expenditures even
though revenue and reimbursements have been received to cover those expenditures.
12. First Reading of Ordinance No. 117. 2008, Appropriating Proceeds from the Issuance of City
of Fort Collins, Colorado, Water Utility Enterprise, Water Revenue Refunding Bonds, Series
2008, in the Maximum Aggregate Principal Amount of $19,000,000, in the Water Utility
Fund.
After the regular Council meeting tonight, the Board of the Water Utility Enterprise will
consider an ordinance which authorizes the issuance of City of Fort Collins Colorado, Water
Utility Enterprise, Water Revenue Refunding Bonds, Series 2008, in the Maximum
Aggregate Principal Amount of $19,000,000. The Bonds will be issued to refund, pay and
discharge all of the outstanding Water Revenue Refunding Bonds and Improvement Bonds,
Series 1998.
The City will be paying off higher cost bonds with new bonds that will have lower interest
rates. The passage of Amendment 1 (the TABOR Amendment) by the Colorado voters in
1992, required the City to form enterprises in order for its utilities to be able to issue
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October 7, 2008
municipal bonds without an election. Since that time, all utility bonds have been issued by
the appropriate utility enterprise. However, the City Charter grants only the Council the
power to appropriate the funds. Therefore, this action by the Council is necessary in order
to appropriate the bond proceeds for the Water Utility. Authorizing the issuance of the bonds
and appropriating the proceeds are both necessary to complete the bond transaction. The
final rates will be determined by selling the bonds at a competitive sale later this year.
13. Items Relating to the Mason Corridor/MAX Bus Rapid Transit Project -Phase 1.
A. Resolution 2008-090 Authorizing the Mayor to Execute an Intergovernmental
Agreement Between the City of Fort Collins and the Colorado Department of
Transportation for Funding of Phase 1 Improvements of the Mason Corridor/MAX
Bus Rapid Transit Project.
B. First Reading of Ordinance No. 118, 2008, Appropriating the Funds from the
Downtown Development Authority and Unanticipated Colorado Department of
Transportation SB-1 Funding into the Mason Corridor Capital Project Account.
These funding contracts between the City and CDOT and the City and DDA will allow for
work to advance on the Phase 1 of the Mason Corridor/MAX Bus Rapid Transit (BRT)
project. This funding will be used for final design/engineering, construction, and vehicle
acquisition. The design/engineering and construction improvements will include all elements
of the MAX BRT service, including passenger stations, pedestrian access improvements,
traffic signalization related to the BRT operations, signage/wayfinding, and converting
Mason and Howes streets to two-way operation. The MAX BRT vehicles will be 60-foot
articulated transit vehicles, designed to allow for low -floor boarding and will use alternative
fuel. Subsequent funding contracts will be submitted to the City from CDOT and the Federal
Transit Administration later this year and in 2009 to provide funding for the full corridor
improvements from the Downtown Transit Center to the new South Transit Center, south of
Harmony Road.
14. First Reading of Ordinance No 119 2008 Appropriating Unanticipated Grant Revenues in
the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
A grant in the amount of $19,513 has been received from the Colorado Division of Criminal
Justice (DCJ) for salaries associated with the continued operation of Restorative Justice
Services. A $2,168 cash match is required and will be met by appropriating funds from the
police operating budget. Restorative Justice is an alternative method of holding a young
offender accountable by facilitating a meeting with the young offender, the victim/victim
representative and members of the community to determine the harm done by the crime, and
what should be done to repair the harm. By identifying and repairing the harm caused by the
crime, criminal justice officials are optimistic repeat offenses by these youth will be reduced
and the needs and concerns of the victims and affected community will be addressed.
Restorative Justice Services includes the RESTORE Program for shoplifting offenses, and
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Restorative Justice Conferencing Program (RJCP) for all other offenses. The grant period
is from October 1, 2008 to September 30, 2009.
15. First Reading of Ordinance No. 120,2008, Amending Section 2.9.3(B) of the Land Use Code
Modifving the Procedure for Initiating a Text Amendment.
There are two sub -sections to Section 2.9.3. The first, (A), describes the procedure for
amending the zoning map and the second, (B), describes the procedure for amending the text.
Presently, amending the text of the Land Use Code may be proposed by City Council, the
Planning and Zoning Board, the Director, any resident of the city, or any owner or person
having an interest in land located within the municipal boundaries of the city.
The change would delete the ability to propose a text amendment to the Land Use Code by
any resident of the city, or any owner or person having an interest in land located within the
municipal boundaries of the city.
Residents and owners are not prohibited from proposing text amendments. Instead of a
direct application, however, a request would be subject to established City Council policy
which requires that proposed changes would need to be supported by the City Manager, the
Leadership Team, or three Councilmembers.
16. First Reading of Ordinance No. 121, 2008, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
This Ordinance will amend Section 2-119 of the City Code to update the functions of the
Building Review Board. These provisions include:
Authorizing the Building Review Board to consider a contractor license applicant's
alternative qualifications;
Adding a new provision to formally authorize the Building Review Board to serve
as the "board of appeals" for appeals related to International Property Maintenance
Code (IPMC) and Supplemental Rental Housing Provisions; and
Adding a new provision to authorize the Building Review Board to advise City
Council on policy matters related to functions of the Board.
17, First Reading of Ordinance No. 122, 2008, Temporarily Suspending the Operation and
Enforcement of the Land Use Code and Zoning Map Regarding the Usage of the "Ricker
Building" as an Emergency Daytime Severe Winter Weather Shelter for the Homeless.
Local health and human service agencies have asked the City to assist in providing a facility
to house a temporary emergency daytime shelter for the homeless in the event of severe
winter weather.
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18. First Reading of Ordinance No 123 2008 Authorizing the Conveyance to the Platte River
Power Authority of an Easement and Right-of-Wav and aTemporary Construction Easement
on the City -Owned Fossil Creek Wetlands Natural Area.
Platte River Power Authority is constructing a new transmission line in southeast Fort
Collins to support a request from the City for a new substation at Trilby Road and Portner
Road. The new transmission line, referred to as the Harmony-Portner-Boyd 230kV
transmission line, will cross a portion of the Fossil Creek Wetlands Natural Area. The
transmission line will be constructed using a direct drilling procedure that will not result in
any surface disturbance within the permanent easement. A temporary easement consisting
of 0.493 acres will be used to stage and operate the drilling equipment. Surface disturbance
and subsequent restoration activities will occur within the temporary easement.
19. First Reading of Ordinance No 124 2008 Authorizing the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary for the Construction of Public Trail Improvements
in Connection with the Mason Corridor Trail Project.
The final phase of the Mason Trail project provides a critical connection between Colorado
State University, the existing Mason Trail between Harmony Road and the Spring Creek
Trail, and the City's community wide trail system (through connections with the Spring
Creek Trail and the Fossil Creek Trail). Due to the importance of this connection, staff is
seeking authorization to use the eminent domain process to acquire the necessary property
interests in the event that good faith negotiations are not successful; staff is hopeful and
optimistic that the private property acquisition will be accomplished by negotiated
agreement.
20. Hearin and First Reading of Ordinance No 125 2008 Amending the Zoning Map of the
City by Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
This is a request to rezone an 8.68 acre parcel located on the west side of South College
Avenue immediately north of Crestridge Drive. The current zoning district designation is
Community Commercial (CC) District. The applicant proposes zoning of Commercial (C)
District. A Structure Plan amendment is not necessary for this rezoning request. There are
no perceived issues or known controversies with this rezoning request.
21, First Reading of Ordinance No 126 2008 Authorizing the Purchasing Agent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for un to Five Additional Years.
The existing Agreement with City Park Nine Golf Course Golf Professional/Concessionaire,
DMAC Golf, LLC, as owned, operated, and assigned by David R. McCleave, PGA, expires
on December 31, 2008. As per terms in the RFP and the Agreement, the Agreement may
be extended beyond the original five (5) year term if performance is satisfactory, subject to
City Council approval and the negotiation of a mutually acceptable extension agreement for
October 7, 2008
up to five (5) additional years. This is contingent on staff recommendation, public
input/comment, a recommendation from the Golf Board, and final approval by the City
Council. A mutually acceptable Extension Agreement has been negotiated, and both the staff
and the Golf Board fully recommend approval by Council.
22. Resolution 2008-091 Authorizing the Initiation of Exclusion Proceedings of Annexed
Properties Within the Territory of the Poudre Valley Fire Protection District.
This resolution authorizes the City Attorney to file a Petition in Larimer County District
Court to exclude properties annexed into the City in 2007 from the Poudre Valley Fire
Protection District in accordance with state law and to allow for the provision of fire
protection services to such properties by the Poudre Fire Authority.
23. Resolution 2008-092 Authorizing a Revocable Permit to CGRS, Inc. to do Environmental
Testing on City Property at 220 North Howes Street.
225 Maple Street, LLC, owns the property located at 225 Maple Street which is the location
for Haiston Oil Company, Incorporated. Haiston Oil Company has relocated its business
from this location, and has removed its petroleum storage tanks from the site. In order to
complete the regulatory process regarding the storage tanks, an environmental investigation
is required. As part of the environmental investigation, Haiston Oil's consultant, CGRS,
Inc., has requested a revocable permit to collect soil samples on City -owned property at 220
North Howes Street, which is adjacent to its property. CGRS, Inc. anticipates the soil boring
process will take approximately 2 to 3 hours. CGRS may also need to do testing within the
building at 220 North Howes, or in the public right-of-way adjacent to 220 North Howes and
225 Maple Street. All costs associated with the soil boring and tests will be the
responsibility of CGRS, Inc. All lab results from the tests will be provided to the City at no
cost. The City is in negotiations to acquire 225 Maple Street.
24. Resolution 2008- 093 Authorizingthe Mayor to Execute an Intergovernmental Agreement
Between the City and the Colorado Department of Transportation Whereby the City Will
Receive a "CMAO" Grant and an Enhancement Program Grant for the North College
Avenue/US287 Improvement Project.
This Resolution authorizes the Mayor to enter into an agreement with CDOT for the City to
receive CMAQ and Enhancement grant funding for improvements along North College
Avenue/US287 Avenue from the Poudre River north to the Hickory/Conifer intersection.
These grants will help fund the planning, design/engineering, rights -of -way acquisition, and
construction costs for this project. In particular, the CMAQ grant funds will target bicycle
and pedestrian improvements and the Enhancement Funds will target the streetscape
improvements along the corridor. This project will be designed and built in collaboration
with the City's North College Improvement Project and Pedestrian Plan improvements
funded via the voter -approved "Building on Basics" 1/4 cent sales tax initiative.
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***END CONSENT***
Ordinances on Second Reading were read by title by Chief Deputy City Clerk Harris.
Second Reading of Ordinance No. 107, 2008, Authorizing the Conveyance to the City of
Greeley of Permanent Waterline Easement and a Temporary Construction Easement on the
City -Owned Dry Creek Stormwater Wetland.
Ordinances on First Reading were read by title by Chief Deputy City Clerk Harris.
8. First Reading of Ordinance No. 110, 2008, Amending the City Code to Increase the Amounts
of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to
Reflect Inflation in Associated Costs of Services.
9. Items Relating to Utility Rates and Charges for 2009.
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code
Relating to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code
to Revise Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
I0. Items Relating to the 2009 Downtown Development Authority Budget.
A. First Reading of Ordinance No. 114, 2008, Appropriating Downtown Development
Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009.
B. First Reading of Ordinance No. 115, 2008, Appropriating Revenue in the Downtown
Development Authority Debt Service Fund For Payment of Debt Service for Fiscal
Year 2009.
11. First Reading of Ordinance No. 116, 2008, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds and Authorizing the Transfer of Appropriated
Amounts Between Funds or Projects.
12. First Reading of Ordinance No. 117,2008, Appropriating Proceeds from the Issuance of City
of Fort Collins, Colorado, Water Utility Enterprise, Water Revenue Refunding Bonds, Series
2008, in the Maximum Aggregate Principal Amount of $19,000,000, in the Water Utility
Fund.
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October 7, 2008
13. First Reading of Ordinance No. 118, 2008, Appropriating the Funds from the Downtown
Development Authority and Unanticipated Colorado Department of Transportation SB-I
Funding into the Mason Corridor Capital Project Account.
14. First Reading of Ordinance No. 119, 2008, Appropriating Unanticipated Grant Revenues in
the General Fund for the Restorative Justice Program and Authorizing the Transfer of
Matching Funds Previously Appropriated in the Police Services Operating Budget.
15. First Reading of Ordinance No. 120,2008, Amending Section 2.9.3(B) ofthe Land Use Code
Modifying the Procedure for Initiating a Text Amendment.
16. First Reading of Ordinance No. 121, 2008, Amending Section 2-119 of the City Code
Pertaining to the Functions of the Building Review Board.
18. First Reading of Ordinance No. 123, 2008 Authorizing the Conveyance to the Platte River
Power Authority ofan Easement and Right -of -Way and a Temporary Construction Easement
on the City -Owned Fossil Creek Wetlands Natural Area.
19. First Reading of Ordinance No. 124,2008, Authorizing the Acquisition by Eminent Domain
Proceedings of Certain Lands Necessary for the Construction of Public Trail Improvements
in Connection with the Mason Corridor Trail Project.
20. Hearing and First Reading of Ordinance No. 125, 2008, Amending the Zoning Map of the
City by Changing the Zoning Classification for that Certain Property Known as the Vineyard
Rezoning.
21. First Reading of Ordinance No. 126, 2008, Authorizing the Purchasing Agent to Enter into
an Extension of the City Park Nine Golf Course Golf Services and Concession Agreement
for up to Five Additional Years.
28. Items Relating to the Adoption of the 2006 International Property Maintenance Code
(IPMC)O with Local Amendments Relating to Existing Building Conditions and Rental
Housing Standards.
A. Hearing and First Reading of Ordinance No. 108,2008, Amending Chapter 5, Article
II, Division 3, of the City Code for the Purpose of Adopting the 2006International
Property Maintenance Code (IPMQ8, with Amendments.
B. First Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division
2, of the City Code Relating to Supplemental Rental Housing Provisions.
30. First Reading of Ordinance No. 127, 2008, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for the Fiscal Year 2009; Amending the Budget for
the Fiscal Year Beginning January 1, 2009, and Ending December 31, 2009; and Fixing the
Mill Levy for Fiscal Year 2009.
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October 7, 2008
Councilmember Manvel 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.
THE MOTION CARRIED.
Consent Calendar Follow-up
Councilmember Manvel noted Item 424 Resolution 2008- 093 Authorizing the Mayor to Execute an
Intergovernmental Agreement Between the City and the Colorado Department of Transportation
Whereby the City Will Receive a "CMAQ" Grant and an Enhancement Program Grant for the
North College Avenue/US287Improvement Project provides funds to make improvements to North
College Avenue.
Councilmember Ohlson expressed concerns about the Building Review Board's handling ofrequests
for contractor licenses. The Board is to ensure that licenses are issued only to qualified contractors
that meet all requirements. A variance to the requirements should not be granted to enable a
contractor to gain experience as a contractor. He asked for clarification of the functions of the
Building Review Board to ensure variances for license requirements are handled correctly. He
requested a map that shows where Platte River Power Authority transmission lines are located and
for staff to ensure that any future transmission lines be placed underground. He asked for the City
to consider having its own environmental testing for contaminants done on City property even when
a private citizen is required to have testing done on neighboring properties.
Staff Reports
City Manager Atteberry stated the CDBG/HOME Program has received an Excellence in
Government award from the Volunteers of America, Colorado Branch.
Mark Jackson, Transportation Group Director, noted the City's Deicing Storage Materials Facility
has received national recognition for excellence in design, best practices and environmental
sustainability practices. He stated the City has been awarded Gold Level Bike -Friendly Community
status from the League of American Bicyclists.
City Manager Atteberry stated a $550,000 grant has been received from Great Outdoors Colorado
for Red Mountain and Soapstone Natural Area for trail development.
Councilmember Reports
Mayor Hutchinson attended the Colorado Municipal League, District 2 meeting to discuss regional
issues with other Larimer County and Weld County officials. He was elected President and City
Clerk Krajicek was elected Secretary/Treasurer of District 2.
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Items Relating to the Adoption of the 2006International Property
Maintenance Code (IPMC)® with Local Amendments Relating to Existing
Buildine Conditions and Rental Housing Standards. Adopted on First Readin¢
The following is staff s memorandum on this item.
"FINANCIAL 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
A. Hearing and First Reading of Ordinance No. 108, 2008, Amending Chapter 5, Article II,
Division 3, of the City Code for the Purpose of Adopting the 2006 International Property
Maintenance Code (IPMC)®, with Amendments.
B. First Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division 2, of
the City Code Relating to Supplemental Rental Housing Provisions.
These Ordinances address physical deterioration and health and safety conditions that affect the
well-being of neighborhoods, buildings, and residents of Fort Collins. Together, the proposed
regulatory tools will enhance the City's ability to provide the community with improvedpreventative
measures.
W.; il,T�BAP
Discussions emerged in 2005 among concerned citizens, community interest groups and City
Council members 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 and
rental housing impacts that may contribute to the deterioration of neighborhoods. Property
maintenance conditions and related complaints that are not addressed by existing code provisions
were the focus.
Current Obsolete Codes
The current adopted model code (1976 Uniform Code for the Abatement of Dangerous Buildings)
that addresses dangerous buildings is obsolete. The current Rental Housing Standards of 1982 are
inadequate to address today's rental housing needs.
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October 7, 2008
Solution
Staff proposes to adopt the IPMC with local amendments as a tool to replace the City's obsolete
codes relating to existing building conditions and rental housing. The City has already adopted the
International Code series for new construction. The IPMC is one of the International Codes that
applies corrective measures to existing substandard buildings and premises. Neighboring Front
Range and metro communities such as Greeley, Loveland, Longmont, Northglenn, Wheat Ridge,
Arvada and Commerce City have already adopted the IPMC and local amendments pertinent to their
needs.
Public Outreach
Staff engaged in extensive public outreach seeking recommendations and input for the proposed
IPMC with local amendments and Supplemental Rental Housing Provisions. This outreach
included:
• City boards and commissions;
• the real estate and rental industry;
• neighborhood groups and individual citizens; and,
• City Council Work Sessions - September 2006, August 2007, and March 2008.
Staffpresented and discussed at length the proposed 20061nternational Property Maintenance Code
(IPMC) with local amendments on April 24, 2008, June 26, 2008, July 9, 2008, July 31, 2008 and
August 28, 2008 with the Building Review Board (the appellate board for building code related
matters). At these five meetings, Board members provided concerns and input for the proposed
IPMC. On August 28, 2008, the Board also discussed the proposed Supplemental Rental Housing
Provisions specifically related to existing undocumented rental housing units. Board of Realtors
representatives, Eric Kronwall and Michelle Jacobs, attended the August 28, 2008 Building Review
Board meetings and offered their recommendation and input.
Direction from Council
(See March 11, 2008 Work Session Summary - Attachment 1)
Below are Council's recent direction and/or questions. Staff responses are in italics.
Clarify vacant versus abandoned and "Vacant Building Notification " process ( the Vacant
Building Notification process has been deleted per staff, Building Review Board and Board
of Realtor recommendations. The definition of "abandoned" is included in the Ordinance.
2. 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 this proposed Code and should be eliminated from the proposed
Exterior Nuisance Codes (Has been eliminated from the Exterior Nuisance Codes.)
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October 7, 2008
3. Clarify how the treatment of stagnant water on private property under the new proposed
code provision compares to how similar conditions on City property are addressed. The
City treats stagnant water on City property and mitigates it either mechanically or
chemically. With West Nile a concern, city staff is extremely active in the maintenance
program to eliminate or reduce any standing water on Cityfacilities. In addition, most of
the Storm Water sites that have standing water by design (wetlands) are monitored by
Colorado Mosquito Control (CMC).
4. Staff, including the City Attorney's Office, is to further develop the process to address
existing "non -recorded" housing/rooming unitsfor which no documentation or evidence can
be provided establishing their lawful creation (Included in Ordinance No. 109, 2008).
STAFFRECOMMENDATION
Staffhas incorporated Council direction and input from public outreach and recommends adoption
of the 2006International Property Maintenance Code (IPMC)® with local amendments, referred
to as the IPMC, which applies to all existing buildings EXCEPT owner -occupied single family
dwellings with no rooms for rent and which are NOT "dangerous," "unfit to occupy" or
"unlawful. "
Staffrecommends adoption ofthe proposed 2006IPMC with local amendments to protect, promote
and enhance the physical and economic health, safety, welfare and sustainability ofthe community
with respect to existing buildings, equipment and premises that are determined to be one or more
of the following:
• Substandard Structures or equipment., A substandard structure is one that may pose a risk
to the life, health or safety ofthe occupants or the public, even though it does not presently
constitute a danger.
• Unfitfor Human Occupancy: A structure is unfit for human occupancy whenever the code
official finds that it is in disrepair or lacks maintenance, is unsanitary, vermin or rat
infested, contains filth and contamination, or lacks ventilation, illumination, sanitary or
heating facilities.
• Dangerous Structures: A structure or premises is dangerous when it is no longer
structurally sound or poses an imminent threat to the health and safety of the public or the
occupants.
• Unlawful Structures: An unlawful structure is one that is occupied by more persons than
permitted by law or which was erected, altered or occupied without approval.
The penalties for not correcting these violations range from civil infractions to criminal
misdemeanors. Every violation requires notification and a reasonable time period for the property
owner to make necessary corrections.
The proposed IPMC as amended also replaces and updates the current "Rental Housing
Habitability Standards" adopted in 1982 that prescribe minimum requirements for basic living
conditions in rental housing, such as: shelter, safe exits, heating, sanitary bathroom facilities,
lighting and ventilation.
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New habitability provisions for rental housing under the IPMC with local amendments include:
• Insect Screens: From April 1 to November 1, windows or openings required for ventilation
will need to be supplied with screens for insect control and the prevention of West Nile and
other insect borne diseases upon signing of the lease/rental agreement.
• Heating: Increases minimum indoor heating capacityfrom 60 degrees F to 65 degrees F
except when outdoor temperature is below 4 degrees Fthe indoor temperature is whatever
the system is able to maintain.
• Egress Windows: Enlarges and lowers emergency escape/rescue openings in below -grade
sleeping rooms.
• Security Door Locks: Doors providing access to a dwelling unit will need to be equipped
with a deadbolt lock designed to be readily opened from the inside.
• Security Window Locks: Operable windows located within 6 feet above ground must be
equipped with a window sash locking device.
• Smoke Alarms: Smoke alarms are required for all rental housing.
• Carbon Monoxide Alarms: Carbon Monoxide alarms are required for rental housing with
fuel -burning appliances or an attached garage.
Are the proposed revisions too regulatory or restrictive?
Staff believes the proposed revisions are neither excessive in number of local amendments nor
over -regulatory in substance. The majority of local amendments are for administrative
purposes integrating the IPMC into the City Code. Many proposed local amendments delete
or substitute less restrictive requirements than the model IPMC. (See Attachment 3 for
deletions from the model IPMC)
Ordinance No. 109, 2008, Supplemental Rental Housing Provisions:
Staffrecommends amending Chapter 5, Article VI, Division 2 (Rental Housing Standards) of the City
Code relating to Supplemental Rental Housing Provisions to eliminate duplicate provisions now
included in the IPMC. These provisions apply to all rental housing, including single and multi-
family dwellings, manufactured housing, and hotels and rooming houses.
Staff recommends adoption of the proposed revisions to:
• Provide better clarity.
• Enhance health and safety of residents.
• Improve consistency and equity in the administration of regulations.
• Create a link to the IPMC for rental housing conditions, inspection and responsibility.
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Establish an approval process for "non -recorded" rental housing/rooming units by
establishing the date of creation or conversion of the additional housing unit for the
purposes of calculating correct and appropriate fees. Owners of dwellings, within multi-
family buildings without a Certificate of Occupancy (CO), will be required to provide
historical data in order to establish the date of creation or conversion. The owner will be
required to pay development fees based upon clear historic records of conversion or when
the unit wasfirst used as a rental. Ifthe owner is unable to provide evidence, then the owner
will be required to pay the fees in effect at the time of the issuance of the (CO).
Clarify the appeals process to be consistent with the Zoning Board of Appeals and the
Planning and Zoning Board; and to identify who is eligible to appeal and for notification of
adjacent property owners.
These standards supplement the provisions contained in the proposed 2006 IPMC with local
amendments and are necessary to protect the public health, safety and welfare of the residents of
Fort Collins. The revisions apply to ALL rental housing, including single and multi family
dwellings, hotels and rooming houses.
The penalties range from civil infractions to criminal misdemeanors depending on the severity of
the violation. Notice must be given to the property owner allowing a reasonable amount of time to
correct the violation (depending on the severity of the violation.)
PUBLIC MEETINGS, BOARDS AND COMMISSIONS
Extensive public outreach has occurred over the past two years, including:
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; May 8, 2008
• International Building Code Review Committee — November 8, 2007
• Fort Collins Board of Realtors — January 15, 2008 and January 29, 2008, and attendance
at Building Review Board meeting August 28, 2008
• Colorado Apartment Association presentation — March 18, 2008
• Center for Public Deliberation Capstone discussion —April 21, 2008
Boards and Commissions (see attachment 4 for Board minutes and recommendations)
Planning and Zoning Board Work Session —July 13, 2007
Affordable Housing Board — September 6, 2007 and June 5, 2008
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Building Review Board —July 26, 2007; April24, 2008; June 26, 2008; July 9, 2008 (special
work session); July 31, 2008; August 28, 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
The 2006 IPMC with local amendments and Supplemental Rental Housing Provisions will be
implemented upon adoption. "
Beth Sowder, Neighborhood Services Manager, stated the 2006 International Property Maintenance
Code (IPMC) is applicable to all residential and non-residential buildings and will replace the current
Dangerous Building Code and the Rental Housing Standards and bring them together into one
document. The Supplemental Rental Housing provisions wilt amend Chapter 5 of the City Code and
provide a fair process for the City to evaluate, inspect and approve non -recorded dwelling units.
These are separate dwelling units that have been added to single-family dwelling units, sometimes
many years ago, but the City currently has no process to make such additions legal. Adoption of the
2006 IPMC will establish the standards used to determine the safety of buildings, structures and
equipment. It includes a variety of conditions from substandard, to unfit to occupy, unlawful and
dangerous. The Supplemental Rental Housing provisions will provide a consistent and equitable
process to address non -recorded dwellings.
The current Codes that address rental properties and dangerous buildings are outdated. The two
proposed ordinances will aid and improve the functions staff currently performs during the course
of normal work duties without adding additional cost to the City. Property owners may incur
additional costs for correction if their properties are found in violation of the Code. In extreme
cases, if the condition is not corrected, the property may be vacated or, ultimately, tore down. The
proposed Code changes are intended to prevent deterioration of neighborhoods by establishing basic
standards for maintenance of properties while also ensuring the health and safety of all residents.
After receiving Council direction at work sessions, the terms "vacant" and "abandoned" have been
more clearly defined. "Vacant' is now defined as unoccupied while "abandoned" imparts a degree
of disrepair and poses a public nuisance. Exterior surfaces must be repaired when 25% of the
exterior protective surface is degraded. Degraded is defined as conditions when siding is missing,
where there are holes or the exterior lacks a protective barrier such as paint, to the extent that water
is entering the wall cavity.
The Supplemental Rental Housing Standards are proposed to provide a process to address dwelling
units created in the past, often as the result of remodeling or reconfiguring a single-family dwelling
unit without City review or approval. The intent is to have the unrecorded dwelling units receive
permits and make them safe and to be fair when calculating permit and development fees based on
when the dwelling was converted. Inspections would be performed to ensure the units are safe and
in compliance and a certificate of occupancy would be issued.
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The IPMC will replace the City's current rental housing standards as well as the Dangerous Building
Code. The IPMC is a national standard and could be reviewed and updated by the City every three
years in conjunction with the national review cycle. The local amendments provide four degrees of
hazards or conditions and appropriate levels of violation. Staff will be able to address substandard
conditions which need repair before deterioration occurs to a level where the property is considered
dangerous. The proposed IPMC will require larger basement bedroom escape windows, screens
during West Nile virus season, the ability to heat to 65 degrees, locks on doors and windows, smoke
alarms and carbon monoxide detectors where gas appliances are used and/or garages are attached.
Some concerns have been expressed that Fort Collins is too aggressive with the proposed
amendments and that too many local amendments are being applied to the national standard. Staff
proposes amending 130 individual Code sections out of the 253 contained in the national standard.
Of those local amendments, 33 are definitions that are added for clarity, 6 definitions were amended
to clarify and connect the terms used in other adopted City Codes, 65 were amended to provide
terminology for clarity and to reference specific sections of the City Code. The remaining 26
changes are local amendments proposed to address specific physical conditions such the four degrees
of hazard and appropriate penalties, updates to the rental housing standards and other amendments
exempt non -rented, owner -occupied single-family dwellings from the substandard conditions. Ten
of the local amendments are less restrictive than the national standard such as exempting owner -
occupied dwellings from the substandard conditions by having screens required only on rental
dwellings, by deleting all the minimum habitable room dimensions and deleting the heating
requirements for indoor work places. Six are for clarity and are neither more or less restrictive, four
are considered more restrictive and relate to rental housing improvements, and six are intended to
retain current standards applicable to rental housing.
Some concerns have been expressed that adoption of these standards will make Fort Collins more
restrictive than neighboring communities. A survey of Loveland, Greeley and Longmont shows Fort
Collins is generally less restrictive. Those communities apply the IPMC to all buildings, including
owner -occupied dwelling units, require screens on all dwelling units year-round, minimum room
sizes on all dwelling units, all dwelling units must be able to heat up to 68 degrees and work places
must be able to heat to 65 degrees. Those communities require smoke alarms in all housing and do
not have a minimum requirement for exterior and interior deteriorated paint.
The Supplemental Housing Standards are intended to create a process to allow unrecorded multiple
dwelling units to acquire a certificate of occupancy. It also includes an appeal process through the
Building Review Board. The process to issue a certificate of occupancy for existing, multi -family
rental units where there is no prior City review or approval begins with the determination of whether
the zoning allows for multi -family dwellings. The property owner, with staff's assistance, must
show evidence of when the building was converted to multi -family units, then fees will be figured,
based on the fee schedule of that date. If the date is before 1965, the original fees would be waived.
The owner must submit a signed affidavit declaring he/she was unaware the dwelling unit in question
did not have a certificate of occupancy at the time of purchase. If no affidavit is submitted, the
building will be treated as if it were created, converted or constructed in the present time and be
subject to current fees. If no evidence is found to show when the building was converted, current
fees would be used to assess the fees to be paid. The new IPMC standards would be used to perform
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an inspection to ensure safety and compliance. Once any violations that are found are corrected, a
certificate of occupancy will be issued.
Both the proposed IPMC and Supplemental Rental Housing Standards have been extensively
discussed with various citizen groups and stakeholders. The Planning and Zoning Board and the
Affordable Housing Board recommend adoption of the IPMC and approve the concept of addressing
unrecorded dwellings in a consistent and equitable way. The Building Review Board supports
adoption of the IPMC. The Board recommends adopting the provision relating to unrecorded
buildings only if any identified past -due development fees of a non -recorded dwelling are waived
if the current owner was not the responsible party for the creation of the non -recorded dwelling.
Staff believes the proposed fees for non -recorded dwellings provides a consistent and equitable
approach for the community.
Lloyd Walker, 1756 Concord Drive, stated it is time to update the rental housing standards and he
supported adoption of both ordinances. It is appropriate to require non -recorded multi -family
dwelling units to be brought to current standards.
Debbie Tamlin, 1210 Kirkwood, President of the Fort Collins Board of Realtors, supported adoption
of the IPMC. The provisions in the Code will allow staff to deal with dangerous properties in the
community. The Board of Realtors supports the exemption of owner -occupied, single-family
detached, dwelling units that have no rooms for rent from the standards. The Board does not support
the provisions in the supplemental rental housing standards requiring a certificate of occupancy for
non -recorded multi -family dwelling units and the fees that would be associated with the certificate.
No other jurisdiction in the United States imposes retroactive fees on compliant or non -compliant
rental units. The Board requested that Section 5-260 and Section 5-261 be removed from the Code.
Eric Kronwall,1119 Monticello Court, thanked staff for allowing much public input into the process
of adoption of the IPMC and rental housing standards. He supported adoption of the IPMC.
Carrie Gillis, 2213 Timber Creek Drive, stated City staff should have the tools to address unsafe
buildings. She did not support the exemption of owner -occupied dwellings from the standards in
the Code.
Chip Parrish, member of the Board of Realtors, stated adoption of the IPMC will benefit the
community and help to maintain property and provide standards for rental units. He did not support
the local amendments that are being added as they were onerous and did not add greater benefits to
the community. He did not support charging fees for a certificate of occupancy for non -recorded
dwelling units.
Jeff Schneider, Fort Collins resident, did not support imposing fees on non -recorded multi -family
dwelling units.
City Attorney Roy read new language for Ordinance No. 109, 2008, Section 5-261(b) in its entirety.
He noted the year 1965 is used as the cut-off date because City records of fees and other records
relating to the conversion of units are poor or non-existent prior to that year. The fees collected on
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conversions made before 1965 would be nominal and the amount of time needed to search the
records and compute the fees would outweigh the fees themselves. Building permit fees will need
to be paid for whatever work is necessary to bring the dwelling unit into compliance with the current
rental housing standards. Colorado law states the fees need to be fair and rational and staff believes
the fees meet that requirement because they are reasonably related to the cost of mitigating the
impacts of the unit. It is unclear whether these fees would be considered retroactive fees or fees that
are past due.
Mayor Hutchinson asked if someone who recently purchased a house must pay the fees for a
conversion done twenty years ago, but no certificate of occupancy was ever issued. City Attorney
Roy stated the current owner would have to pay the fees unless the owner could show, with clear and
convincing evidence, the date when conversion occurred and can sign an affidavit stating they had
no knowledge that a certificate of occupancy was not issued for the dwelling. As the ordinance is
currently written, the current owner must pay the fees, unless the conversion date was before 1965.
The policy question before Council is how to deter property owners from unlawfully converting
single-family dwellings into multi -family dwelling units without paying the proper fees. Waiving
the fees would not provide any consequence for illegally converting a dwelling, other than requiring
the payment of the fees necessary to bring the property up to Code, so the property owner would not
have paid all the fees that would have been due at the time of the conversion or construction. He
noted the ordinances establish minimum habitability standards for the City to enforce and does not
relate to the mutual obligations of landlord and tenant, which are addressed in State law.
Councilmember Brown asked what changes had occurred that would ensure the City's records are
correct after 1965. Lee stated records kept after 1965 are more accurate because a specific form was
used to record all the necessary information. There are only general, handwritten notes for
information kept before 1965, which were not very accurate. 1965 is a reasonable cut-off date
because fees charged before that year were nominal.
Councilmember Brown expressed his concerns about charging fees to a property owner who was not
responsible for converting a dwelling unit and requiring that property owner to prove when the
conversion occurred even though the City's records are not very accurate, particularly for the 1960s.
He asked what will be accomplished by collecting the fees in arrears and what would be the amount
of fees charged in arrears. Lee stated fees need to be charged in arrears as a matter of fairness to
those property owners who have already paid fees to legally convert their properties. If a property
was converted after 1965, the impact fees would be approximately $400 and the fees increase as the
conversion date becomes more recent. The fees charged will be based on the impact fees in place
at the time of conversion. Impact fees are in place to offset the impact of the dwelling units. The
fees would be approximately $15,000 if the conversion is charged with today's fee.
Councilmember Manvel asked what was the standard dwelling size used to calculate the fees. Lee
stated the fees were based on a 1500 square foot basement dwelling unit. The fees are based on
different factors. Some are impact fees, plant investment fees for sewer, water and electric, and the
cost of purchasing the actual amount of water supplied for the life of the unit. In 1965, the fees for
water were only $200, but today the water fees are $5,000 to $6,000. In 1985, the permit fee, sales
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and use tax, street oversizing fee, water and sewer tap, raw water fee, secondary electric fee would
have totaled $3,000.
Councilmember Ohlson asked at what point do City records show, with certainty, whether a
certificate of occupancy was issued and fees were paid for the conversion of a dwelling unit. Lee
stated the records from 1970 forward are reasonably accurate.
Councilmember Ohlson asked if units that were illegally converted will now be considered as legal
units. Lee stated the proposed ordinance requires the units that were converted illegally to be
brought up to Code and obtain a certificate of occupancy in order to rent the units. Zoning of the
property is one factor that will be considered when a certificate of occupancy is requested. If the
property is not zoned for rentals, the use of the property as rental units must stop.
Councilmember Poppaw asked what would be the result of changing the cut-off date from 1965 to
1975. Lee stated the properties that did not pay the fees before 1975 would not be charged any fees.
If the conversion was done after 1975, the fees for the date the conversion occurred would be
charged.
Mayor Hutchinson asked what the fees would be if a dwelling unit was converted in 1975 and did
not receive a certificate of occupancy. Lee stated the property owner would be responsible for
providing evidence that the unit was converted in 1975 and not more recently. Staff would assist
in providing that evidence by offering City records and other resources to examine. Staff would
examine the converted units to determine when the conversion took place. If a date is established
that is consistent with the property itself and the available records indicate the conversion was before
1975, the fees that would have been paid at the time of conversion would be waived. If the date of
conversion is established to be 1975, the property owner will pay the impact fees that would have
been due in 1975.
Councilmember Ohlson asked why the IPMC will not apply to non -rented single family dwelling
units. Lee stated the Building Review Board recommended removing owner -occupied dwelling units
and the Board of Realtors endorsed removing the provision.
Councilmember Ohlson asked why the minimum room size was deleted and the minimum heating
requirement was set to 65 degrees. Lee stated the requirements were set in such a way so as to build
as large a consensus as possible among the various groups reviewing the proposed Code. The IPMC
sets the minimum heating requirement for homes at 68 degrees and 65 degrees in work places.
Councilmember Manvel asked why so many local amendments were being added. Lee stated the
local amendments were proposed to concentrate on serious health and safety issues and to set those
standards higher than the IPMC. Local amendments requiring carbon monoxide alarms and larger
egress windows from basement bedrooms are stricter than what is required in the IPMC and affect
health and safety.
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Councilmember Roy asked for an estimate of the number of illegally converted rental units. Lee
stated there are 1400 duplexes in the city, but there was no way to estimate the number that have not
received a certificate of occupancy.
Councilmember Roy asked how the City will learn about housing that has been illegally converted.
Mike Gebo, Deputy Building Official, stated a complaint must be filed against a property before the
City investigates whether a duplex is legal. Generally, neighbors will notify the City that too many
people are living at a residence and violating the 3-unrelated ordinance, which begins the City's
investigation. Utility records, tax records, sales information, and affidavits from neighbors would
be used to ascertain when the property was converted.
Mayor Hutchinson asked for more information to be provided for Second Reading regarding the cut-
off year for unrecorded duplexes and the pros and cons of changing the cut-off year from 1965 to
1975.
("Secretary's note: The Council took a brief recess at this point in the meeting.)
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
108, 2008 on First Reading.
Councilmember Ohlson made a friendly amendment to change the minimum heating temperature
requirement from 65 degrees to 68 degrees Fairenheit (20 degrees Q. The friendly amendment was
acceptable to Councilmembers Manvel and Roy.
Councilmember Troxell asked what was the difference between the 2003 IPMC and the 2006 IPMC.
Lee stated the 2006 IPMC is the latest version. There are not many differences between the 2003
and 2006 editions and staff recommends using the most recent version of a code. Gebo noted the
proposed 2006 IPMC is a maintenance code. Currently, commercial buildings are required to meet
the standards in the 2006 Building Code. Staff is in the process of reviewing the 2006 International
Residential Code and is moving towards adoption of 2006 versions of all the Codes.
Councilmember Ohlson noted an illegal conversion must first match the zoning requirement for the
property as a first step in obtaining a certificate of occupancy. The idea is to encourage compliance
and not be punitive with fees. The public process in considering the proposed Code has been lengthy
with many opportunities for public input. Compromises have been reached, but the proposed Code
with local amendments will benefit Fort Collins.
Councilmember Manvel stated the local amendments provide clarity for definitions and improve the
basic IPMC. Much effort and staff time has been dedicated to developing the proposed Code with
local amendments which is a great improvement over the current Code, adopted over 20 years ago.
Councilmember Roy stated the proposed Code does strengthen requirements and he thanked staff
and citizens who have spent many hours developing the proposed ordinance.
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Mayor Hutchinson noted the proposed Code will give staff tools to address dangerous housing that
staff currently does not have. Staff has taken an international code and customized it to Fort Collins.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
109, 2008, on First Reading, with the modification presented by City Attorney Roy.
Councilmember Troxell stated he did not support the idea of charging fees for unrecorded converted
dwelling units.
Councilmember Brown stated he did not support the idea of retroactively collecting fees on
properties that were converted years ago.
The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, and Roy.
Nays: Brown, Troxell.
THE MOTION CARRIED.
Resolution 2008-094
Adopting the 2008 Bicycle Plan, Adopted
The following is staff s memorandum on this item.
"FINANCIAL IMPACT
Approval of the 2008 Bicycle Plan does not create a direct financial impact for the City. Future
implementation ofthe Bicycle Plan recommendations may involve financial commitments by the City
and those items will be brought forward for City Council review at the appropriate time.
EXECUTIVE SUMMARY
The 2008 Bicycle Plan is an update to the 1995 Bicycle Program Plan. The 2008 Bicycle Plan
presents existing conditions of the bicycle facilities, evaluates the City's accomplishments over the
last 13 years, and proposes recommendations for bicycle facilities and programs. The Plan further
articulates the vision for bicycling in Fort Collins, expanding its relationship beyond engineering,
education, encouragement and enforcement to include economy, environment and community.
BACKGROUND
The 2008 Bicycle Plan involved extensive public outreach over the last several years. It was
presented to several City Boards and Commissions, local organizations, a Citizen Advisory
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Committee, and the general public. Many ideas collected through that process have been included
in the Plan. Comments made by the Transportation Board were addressed in the 2008 Bicycle Plan.
In addition, the following organizations and City Boards were presented with the Plan and have
provided support: Air Quality Board, Bike Fort Collins, Downtown Development Authority,
UniverCity, Economic Advisory Commission, Natural Resources Advisory Board, Parks and
Recreation Board, Senior Advisory Board, and the Youth Advisory Board. The 2008 Bicycle Plan
provides a platform for implementation ofmany bicycle -related improvementsfor the Fort Collins
community.
As an overview of existing programs, the 2008 Bicycle Plan specifically highlights the progress
made in Fort Collins with regard to engineering, education, encouragement, and enforcement since
the 1995 Plan. Beyond that, recommendations were made to continue efforts toward improving
bicycling opportunities in Fort Collins and are summarized as follows:
• Engineering: interim solutions, innovative solutions, improved signal detection.
• Education and Encouragement: expansion ofexistingprograms.
• Enforcement: proactive campaigns, coordination and education for the public as well as
local enforcement agencies.
Furthermore, based on public input, the 2008 Bicycle Plan was expanded to address the following
areas of concern and provided the associated recommendations:
• Economy: bicycle -related tourism and bicycle -related commercial development.
• Environment: measurement methods ofenvironmental benefits.
• Community: potential for Bicycle Advisory Committee, Platinum Level designation with the
League of Bicyclists.
The format and timing for implementation of the recommendations resulting from the 2008 Bicycle
Plan were not established as part of the Plan. This approach provides on -going possibilities for
community organizations as well as the City to use the Plan as a solid foundation to improving the
future of bicycling in Fort Collins. The Plan indicates some innovative planning measures but
encourages the evolution of ideas to improve bicycling. Finally, the 2008 Bicycle Plan maintains
the message that Fort Collins is a great place to ride for all ages and all levels ofability.
In addition, staff has recently learned of the recent upgrade in designation by the League of
American Bicyclists. As indicated in the attached letter, dated September 19, 2008, the League of
American Bicyclists has awarded the City of Fort Collins with a Gold Level designation. "
Mark Jackson, Transportation Group Director, stated the proposed Bicycle Plan has received much
public input and is a plan supported by the community.
Denise Weston, Senior Transportation Planner, stated the City has recently received the Gold Level
Designation from the League of American Bicyclists. The Plan has been presented to many of the
City's boards and commissions, Bike Fort Collins, the Downtown Business Association and the
general public. Many of the recommendations received at these public input sessions were included
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in the Plan. The Plan addresses engineering issues such building bicycle facilities and a list of other
prioritized infrastructure projects. Interim solutions are proposed such as signage or striping that
could be done on an immediate basis. The implementation of the Transportation Master Plan will
include the full implementation of the roadway improvements such as maintaining priority commuter
routes. Improving signal detection loops will help recognize bicycles at local intersections. Multi -
modal recommendations would expand bicycle -transit, bicycle -pedestrian and bicycle -auto linkage
and increase bicycle parking throughout the city and at transit stops.
D.K. Kemp, Bicycle Coordinator, stated continuation of current safety programs such as the CoExist
Campaign and adding new programs are proposed in the Plan, as well as expanding public -private
partnerships and community relationships. The enforcement component has been improved in the
proposed Plan and will be combined with education. A new component of the proposed Bicycle
Plan is economic recommendations. Promoting the city as a bicycling destination will bring national
events to the city. People from around the country will come for bicycling events. More work needs
to be done to attract bicycle manufacturers and other businesses related to bicycling to the city.
Better measurement tools are needed to measure the environmental benefits from bicycling. The
current tools do not offer an accurate assessment. One recommendation is to form a bicycle advisory
committee to allow for the exchange of ideas from all areas of the community.
Weston clarified the Bicycle Plan recommends the pursuit of a bicycle advisory committee and also
recommends an independent, public process to determine the members of the committee. The
committee should represent the entire community. After the Bicycle Plan is adopted,
implementation strategies will be prepared by staff. If a bicycle advisory committee is formed, it
could advise on the implementation strategies.
Rick Price, 1925 Wallenberg Drive, stated Fort Collins is a great place for bicycling and he
supported adoption of the Bicycle Plan. He urged Council to create a bicycle advisory committee
and to commit to working towards the Platinum Level Designation by 2012.
Brad Abrahamson, 6124 Paragon Court, stated the current bicycle trails were a great benefit for Fort
Collins and the proposed Bicycle Plan would improving bicycling even more. He supported building
a velodrome in the city.
Bruce Votipka, 2812 Cherrystone Place, stated the Bicycle Plan is a visionary, comprehensive plan
that will achieve its goal of integrating the bicycle into the daily lives of the residents of Fort Collins.
He wanted more emphasis placed on educating the public about bicycle safety.
Bill Jenkins, 710 Mathews Street, urged Council to adopt the Bicycle Plan as the Plan affirms and
promotes the importance of bicycling in the community.
Cheryl Distaso, 135 South Sunset, supported allowing wheelchairs to legally use bicycle lanes and
she urged Council to adopt the Bicycle Plan.
Tim Anderson, 1115 Clubview Terrace, supported adoption of the Bicycle Plan and the creation of
a bicycle advisory committee.
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Jeff Morrell,1615 Sand Creek Court, stated the Bicycle Plan provides an excellent vision for the city
and he asked Council to establish a bicycle advisory committee to assist in implementing the Plan.
Lila Hickey, Fort Collins resident, stated the Plan will encourage more people to ride bicycles and
will help Fort Collins develop the image of "Bike Town USA."
Councilmember Brown asked for the cost analysis of working towards the platinum designation.
Kemp stated the City needs to continue the programs currently in place which are funded by grants
from Congestion Mitgation and Air Quality (CMAQ) Program. Other local, state and federal grants
are available to fund bicycle programs. The Bicycle Plan includes high cost items for major capital
improvements and smaller cost items for educational campaigns. A specific cost to achieve platinum
designation is not available. Many projects listed in the Bicycle Plan will be incorporated with
projects from Transportation Planning, so it is important to collaborate with Transportation Planning
to leverage funds for state and federal funding. Jackson stated the Building on Basics capital
improvement fund will provide some funding for the capital projects listed in the Bicycle Plan. The
League of American Bicyclists does not have a set checklist the City must follow to achieve platinum
designation. That designation is reached by growing the bicycle program, having greater community
involvement, and showing the longevity of the program.
Councilmember Brown asked if funds will be taken from other areas to pay for the platinum
designation if more grant funding is not received. Jackson stated the amount of resources available
will dictate which projects will be implemented. The City has capital improvement project lists that
are prioritized by criteria for all modes of travel. Bicycle projects often fit very nicely with other
transportation improvement projects that are high priority capital improvement projects. Kemp
noted the Streets Plan includes all modes of travel, so bicycles are often included in capital
improvement street projects.
Mayor Hutchinson asked if Council will review specific capital improvement projects as they are
developed. City Manager Atteberry answered in the affirmative. He noted bicycle projects
frequently can be folded into a road capital improvement project and the grant funding for bicycle
projects can be used in conjunction with the capital funding.
Councilmember Ohlson stated implementation of the Bicycle Plan should result in the City achieving
platinum designation.
Councilmember Troxell asked that implementation of the Plan include all other alternative modes
of transportation. Bicycle manufacturers and local businesses should be encouraged to actively
participate in the Plan, which will improve the city's economic health. Evaluation of the Bicycle
Plan is critical and safety education and enforcement needs to play a key role in implementation.
Councilmember Roy asked for details about forming a bicycle advisory committee. City Manager
Atteberry stated staff supports the idea of a bicycle advisory committee but the City is not ready yet
to form the committee. Staff will bring a code amendment for Council consideration that would
amend the roles and responsibilities of the Transportation Board and would create a direct link
between the bicycle advisory committee and the work of the Transportation Board. Committee
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October 7, 2008
membership could be expanded beyond the Transportation Board members. Appointment to the
committee could be done by the City Manager to enable formation of the committee in a more timely
fashion.
Councilmember Roy made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2008-094.
Councilmember Manvel stated the creation of a bicycle advisory committee is an important
component of the Plan and should happen quickly. The Plan is an excellent one and has broad
support from the community.
Councilmember Ohlson made a friendly amendment to change the fourth whereas clause in the
resolution to read "...(3) the community, by involving a bicycle advisory committee"
Councilmember Roy accepted the friendly amendment.
Councilmember Ohlson asked if use of cyclovias or car -free events, as discussed in the Plan, was
elitist or too exclusionary. Kemp stated the concept of a cyclovia is to inspire recreation on City
streets through walking, skating, bicycling or other alternative modes of transportation and is
designed to bring the community together. They are not exclusionary as the events would be only
for a short amount of time. The events would encourage people to come to a public place to gather
without using their cars.
Councilmember Roy stated the bicycling community has made a tremendous effort to help Fort
Collins achieve gold designation. Platinum designation is possible with continued community
involvement. A bicycle advisory committee will be an integral part of that achievement.
Councilmember Brown stated the Plan will greatly benefit Fort Collins and he thanked the bicycling
community for its efforts and input into the Plan.
Councilmember Poppaw stated the Plan was excellent and the goal of achieving platinum
designation should be set.
Mayor Hutchinson stated encouraging bicycling in Fort Collins will provide an economic benefit to
the city and the Plan will provide greater benefits.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
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October 7, 2008
Ordinance No. 127, 2008,
Being the Annual Appropriation Ordinance Relating to the Annual
Appropriations for the Fiscal Year 2009; Amending the Budget for the
Fiscal Year Beginning January 1, 2009, and Ending December 31, 2009;
and Fixing the Mill Levy for Fiscal Year 2009, Adopted on First Reading
The following is staff s memorandum on this item.
"FINANCIAL IMPACT
This Ordinance amends the City Budget for fiscal year 2009 and represents the annual
appropriation for fiscal year 2009 in the amount of $548, 437, 224. The Ordinance also sets the City
mill levy at 9.797 mill, unchanged since 1991.
EXECUTIVE SUMMARY
This Ordinance amends the adopted 2009 Budget and sets the amount of $548,437,224 to be
appropriated for fiscal year 2009. The Net City Budget, which excludes internal transfers between
Cityfunds, is $440, 379, 274 for 2009. The Net City Budget, as amended, is allocated to:
Operations
Debt Service
Capital
Adopted
2009
$351, 346,102
26,232,854
58, 776, 761
Amended
2009
$356,110, 925
26, 235, 588
58, 032, 761
This Ordinance also sets the 2009 City mill levy at 9.797 mills, unchanged since 1991.
BACKGROUND
City Council adopted the 2008-2009 Biennial Budget and appropriated monies for expenditure in
fiscal year 2008. State statutes and the City Charter both require an annual appropriation to cover
expenses for the ensuing year (2009) based upon the adopted budget. The Second Reading must be
done before the last day of November and is currently scheduled for October 28, 200&.
2009 Revenue Update
The revenue forecast model was updated in July of 2008 with data from the first six months of the
year. The update was presented to the Finance Committee on July 21. Sales tax revenue is
projected to increase 4.0% in 2009 over 2008 collections due to the influence ofcurrent retail trends
and the addition of the Front Range Village retail center. The 2009 use tax "ceiling" is reduced
slightly to reflect the decrease in residential building activity and automobile sales.
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October 7, 2008
General Fund Revenue:
Adopted 2009 Amended 2009
Sales Tax (2.25) $49,840,160 $52, 270,182
Use Tax (2.25) $ 8,300,000 $ 8,200,000
Recommended 2009 Budget Additions
After reviewing all the requests, the City Manager is recommending the following adjustment to the
2009 budget which was presented to the Finance Committee on September 15. One addition has
been made since the Finance Committee reviewed the list of adjustments. The addition is the
Homelessness Initiative Support for $100,000. This request is for one-time money from the
General Fund. The adjustments are listed in two categories: Basic Operational —requests that are
needed for operation and maintenance of the service area; and Enhancements — requests that
expand the scope of service. General Fund recommended adjustments total $1,326,568 and
recommended adjustments to Other Funds total $2, 704, 505.
General Fund.•
On oin One-time
A. Basic Operational
1.
Parks Maintenance — Fuel Costs
$ 60,500
2.
Parks Maintenance — Weed Control
30,000
3.
Parks Maintenance — Trail Mowing
5,135
4.
Operations Services — Natural Gas
42,000
5.
Budget Accounting & Reporting Tool -Phase 2
65,000
6.
Streets Snow Removal Fuel & Materials
215,226
7.
Signal Maintenance Fuel Costs
11,786
8.
Signs & Pavement Markings Fuel & Paint
60,417
9.
Pavement Management Program
323,280
10.
Street Patching & Maintenance Fuel & Asphalt
78,964
11.
Sweeping, Mowing Road Shoulders & Maintenance
of Alleys, Unpaved Roads —Fuel
42,405
12.
Streets Facility Natural Gas
7,505
13.
Lincoln Center Services
10,25
Total General Fund Basic Operational
$ 887,468 $ 65,000
B. Enhancements
1. Pilot Program, Asst. District Attorney on Site
1. Repay Larimer County for DDA Parking Garage $186,100
4. Homelessness Initiative Support _
Total General Fund Enhancements $186,100
Total General Fund Adjustments $1,073,568
182
100,000
$ 188, 000
$ 253,000
October 7, 2008
Other Funds:
Onzoinr One-time
A. Basic Operational
1. PEA Station 4 Debt Payment $234, 354
2. Harmony Road Maint. Fuel & Materials 17,637
3. Golf Fuel Costs 49,787
4. Utility - Information Technology Functions
not budgeted 536,400
5. Pavement Management Program 966,720
6. Utility Funds Fuel Costs 416.607
Total Other Funds Basic Operational $ 2,221,505 $0
B. Enhancements
1. Security Improvements to 330 S. College and
700 Wood Street $ 200,000
2. Downtown Parking Demand Analysis 30,000
3. Utilities Security Coordinator $ 75, 000
4. Utilities-Equipment/Furniture for Additional Staff 20,000
5. Light & Power - Energy Services Program
Coordinator 60,000
6. Light & Power - Energy Services Engineer 98,00
Total Other Funds Enhancements $ 233, 000 $ 250, 000
Total Other Fund Adjustments
Miscellaneous
$ 2,454,505 $ 250,000
In addition to the recommended adjustments, a couple of miscellaneous adjustments must be made
to correct the 2009 appropriations for recent changes. The additional revenue projected to be
received in the Sales & Use Tax Fund must be appropriated for transfer to the General Fund and
to the other funds receiving this revenue.
Also, with the refinancing ofthe City's certificates ofparticipation in June 2007, the debt payments
in the Capital Leasing Corporation Fund have changed. Total debt payments have increased by
about $3, 000 with the General Funds portion increasing by less than $10, 000. These appropriation
changes must also be made and are included in the Amended 2009 appropriations. "
City Manager Atteberry stated this ordinance is a mid -cycle adjustment to the adopted budget. The
2009 budget is $548.5 million and includes operational expenses, capital and transfers. The budget
continues the City's commitment to world -class service. He stated his concerns with the City's
ability to continue providing the levels of service expected by the citizens and how the City will pay
for those services. No tax increases are proposed in this budget. Proposed increases in wastewater
and electric utility services are included in the budget which were projected when the 2008-2009
budget was adopted. Property taxes have remained at the same rate since 1991. The budget
continues programs, services, and staffing levels implemented in 2008, with a few exceptions.
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October 7, 2008
Mike Freeman, Chief Financial Officer, stated the revenue picture is stronger than projected for
2009. An increase of 4% in sales tax revenue is projected for 2009, largely the result of new sales
tax opportunities from Front Range Village. The use tax projection is about the same as for 2008.
Property tax revenues are projected to increase at a modest rate for 2009. Investment earnings will
decrease but adjustments have been made. Payment -in -lieu -of -taxes, revenues from the utilities and
enterprises that are paid to the general fund, will increase slightly, around 1 %.
Councilmember Ohlson clarified that sales tax will not increase 4% in 2009, but the revenues
collected from sales tax are projected to increase by 4% and revenues from property taxes are
expected to increase by 2%. The City's share of property taxes has not changed since 1991.
Freeman stated although the sales tax revenue growth will be strong in 2009, staff projects the sales
tax growth in revenue will slow to 2.5% or less in 2010 and 2011. Staff recommends not allocating
all the revenue that will be available in the general fund in order to have reserves available for the
2010-2011 budget. Staff is projecting about $5 million in reserves, beyond the Council's 60-day
policy for the general fund, and recommends the reserves be allocated as revenue into the 2010-2011
budget process.
The proposed electric rate increase of 2.8% is the result of a pass -through charge from Platte River
Power Authority. A major capital project to rebuild the Mulberry Wastewater Treatment Plant is
underway and a rate increase to the wastewater fee is needed to support the debt service for the new
plant. The stormwater and water rates are not being increased at this time.
City Manager Atteberry stated costs in the general fund have been kept lower than projected and
revenues have been higher than projected which has created a $6.5 million balance in the general
fund. Staff recommends using $1.5 million to fund exceptions to the 2009 budget and carry the
remaining $5 million into the 2010-2011 budget because of the expectation of lower than projected
sales tax revenue for the 2010-2011 budget cycle. It is recommended to use $1.3 million for
exceptions to the general fund. Significant fuel price increases had impacted City operations and
increases to departmental fuel budgets are requested. Pavement management allocation in the
general fund is requested for $323,000, coupled with unanticipated excess revenues from the 1/4 cent
sales tax dedicated to transportation. The cost of materials related to pavement maintenance has
increased 40% over a two-year period.
New programs recommended for funding include a one-year pilot program between the district
attorney's office and the police department to place an attorney from the district attorney's office in
the Police Services building to create a closer relationship with the district attorney's office. The
Homeless Initiative to end homelessness in Fort Collins in 10 years would receive $100,000 in one-
time dollars that would leverage additional community resources to help put a coordinator in place.
The City has a long-term obligation to Latimer County to pay for the Civic Center Parking structure
and an exception is requested to meet this obligation. 42% of the requested funds are related to
increased fuel and energy costs, 30% for operating enhancements and 28% for the new programs.
Other funds, which are non -general funds, total $2.7 million. Other funds to be used for pavement
management total $966,000, which is in addition to the request for funds from the general fund.
Debt payments from capital expansion fees would be dedicated to the new Fire Station 4, planned
October 7, 2008
for the corner of Taft Hill and Drake Road. Information Technology services in Utilities has
requested security and energy services enhancements in Utilities to correct security deficiencies to
protect assets the City owns. He noted an amendment to the proposed ordinance removes $100,000
from the 2009 budget that was designated for implementation of the Downtown River District.
Bruce Lockhart, 2500 East Harmony Road, asked how the City's finances have been affected by the
downturn in nation's economy and the stock market.
City Manager Atteberry stated the City has lost about $45,000 invested in a trust fund.
Councilmember Brown asked if consideration was given to retiring some debt by using the revenues
that are recommended to be placed in reserve. Freeman stated debt retirement was not considered.
Maintaining current services in the next budget cycle will be quite difficult to achieve without setting
aside reserves for the 2010-2011 budget.
Councilmember Troxell asked what process was used to choose the new programs proposed under
the exceptions. City Manager Atteberry stated most of the requests for the 2009 budget are critical
items such as fuel costs. Pavement management has been an important priority for Council. The
pilot program to place a district attorney at Police Services was chosen because it addressed public
safety issues. The pilot program to assist the Homeless Initiative was chosen to leverage some of
the City's resources now to help meet the goal of no homelessness in Fort Collins in 10 years. The
repayment to Larimer County for the Civic Center parking structure must be done to honor the
agreement made with the County.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
127, 2008 on First Reading.
Councilmember Ohlson stated the proposed budget takes a fiscally conservative approach but it does
continue street maintenance and recognizes that fuel costs have increased dramatically.
Mayor Hutchinson stated the process to develop the budget is an open process that focuses on citizen
needs. The decision to place $5 million in reserves is a prudent fiscal decision and looks ahead to
the next budget cycle.
The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
Suspension of Rules
Councilmember Troxell made a motion, seconded by Councilmember Manvel, to suspend the rules
and extend the meeting. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
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October 7, 2008
THE MOTION CARRIED.
Items Relating to Utility Rates and Charges for 2009 Adopted on First Reading
The following is staffs memorandum on this item.
"FINANCIAL IMPACT
The rate Ordinances are projected to increase the annual operating revenues of the Wastewater
Fund by 11 % and the Light and Power Fund by approximately 2.8%. No increases are proposed
for water and stormwater monthly rates. The combined utility fees for atypical single family
residence will increase $3.68 per month.
Proposed electric development fees and charges cover costs of new commercial and residential
development. The financial impacts vary by the size and nature of the development. If the proposed
fees are adopted, electric development fees and charges will increase 5 to 6%. The combined utility
development fees for a typical single family residence (exclusive of raw water requirements which
are not changing) will increase from $10, 639 to $10, 790 or 1.4%.
The proposed fees will be effective January 1, 2009.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating
to Wastewater Rates and Charges.
B. First Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to Revise
Electric Rates and Charges.
C. First Reading of Ordinance No. 113, 2008, Amending Chapter 26 ofthe City Code to Revise
Electric Development Fees and Charges.
The proposed ordinances increase wastewater rates 11 %, electric rates by 2.8% on average, and
electric development fees by 5-6%. If approved, changes would be effective January 1, 2009.
BACKGROUND
MONTHLYRATES
Wastewater
Ordinance No. 111, 2008 increases the City's wastewater rates by 11 %. The increase is applied
"across the board" to all customers. With the proposed rate, a typical single family residential
customer's monthly bill will increase from $22.06 to $24.48 or $2.42 per month in 2009. This is
based on a system average of 5,200 gallons per month winter quarter average (WQA) water use.
ILR
October 7, 2008
The wastewater rate increase is needed to generate sufficient revenue to fund the wastewater
operations and meet the increase in long-term debt service obligations for a major capital project
to replace the trickling filter, make odor control improvements and prepare for future regulation -
based improvements at the Mulberry facility.
The Mulberry plant was built in 1946 with upgrades in 1958 and 1972. In the past two years, the
treatment performance of the plant's 60 year old trickling filter (which provides first -stage
secondary treatmentfor the plant f ow) has degraded several times requiring it to be taken off-line,
cleaned and restarted. Failure of the trickling filter creates a significant increase in odors until it
has been cleaned. Even after restarting, the trickling filter's effectiveness has not recovered to its
pastefficiency. In late 2006, a study by MWHConsultingEngineers was commissioned to determine
the best solution for the long-term use of the Mulberry plant. Upgrading the plant's secondary
treatment processes by removing the tricklingfilter and its associatedfacilities and installing a new
aeration basin and associated facilities is the most cost-effective solution. Because the trickling
filter is already recommended for replacement, odor control improvements will also take
place. Upgrading the facility will also allow the Utilities to prepare for future regulation -based
improvements. The improvements, including design and construction, are projected to cost $31.8
million and will be funded by debt.
An I L% increase is proposed for 2009, 10% for 2010, and 9% for 2011 to maintain reserve
requirements, meet debt service, and continue operations and maintenance functions.
Electric
The Utilities are proposing an electric rate increase averaging 2.8% in 2009. The rate increase is
wholly due to the increases in purchase power costs from Platte River Power Authority, the City's
wholesale energy supplier. On August 28, 2008, Platte River's Board adopted a 3.8% wholesale
rate increase for 2009. Platte River's increases are due to several factors:
• Increased coal and rail costs at Rawhide and Craig power plants.
• Increased purchased power costs from WAPA (Western Area Power Administration).
• Mercury mitigation costs.
• Expanded energy efficiency programs (1 % ofrevenues per PR 's 2007Integrated Resource
Plan).
• Capital expenditure increases (new projects and increased material costs for existing
projects).
• Reduction in surplus sales revenues.
Platte River's long term financial budget also includes avoiding significant rate hikes for the
expenses needed for replacement power when the Rawhide plant is out of commission for 5 to 6
weeks. PRPA's rate increases for these costs will be spread out over 6 years from 2009 to 2014.
The proposed 2.8% increase in 2009 will vary slightly by rate class. Residential rates will increase
2.5%-2.7%, commercial rates will increase 2.7%-2.9%, and industrial rates will increase
187
October 7, 2008
approximately 3.2%. For a typical residential customer using 700 kilowatt-hours per month, the
monthly bill will increase $1.26 per month from $49.40 to $50.66.
Monthly Rate Summary
The following table summarizes the impact ofthe proposed rate increases on a typical single family
residential customer's monthly utility bill. In total, a "typical " customer's bill will increase $3.68
per month.
Typical Residential Customer - Monthly Utility Bill
Current
Proposed
$ Increase
%
2008
2009
Increase
Electric
700 kWh per month
$49.40
$50.66
$1.26
2.6%
Wastewater
5,200gallons/month
winter quarter use
$22.06
$24.48
$2.42
11 %
Stormwater
8,600sq. jc lot, light runoff
$14.26
$14.26
$0.00
0%
Water
January 5, 000 gallons
$22.56
$22.56
$0.00
0%
July 21,000 gallons
$60.90
$60.90
$0.00
0%
Total January Monthly Utility Bill
$108.28
SlI L 96
$3.68
3.4%
Total June Monthly Utility Bill
$146.63
$150.30
$3.68
2.5%
ELECTRIC DEVELOPMENT CHARGES
Electric development charges include the allocated and actual costs to the utility for each
commercial or residential development. The two components of these charges are the Electric
Capacity Fee for the off -site electric system, and the Building Site Charge for the on -site electric
costs. The electric development charges are typically increased annually to adjust for inflation and
cost increases. Increases range from 5.1 %for single family, 5.7%for multi family, and 5.8%for
commercial development. The increases are due primarily to the significant increases experienced
in the cost of transformers, metals and other construction materials.
The impact to a typical single family residence (8,600 sq. ft. lot, 150 amp service) is an increase of
$151 from $2,876 to $3,027, or 5%.
The Water Board reviewed the 2009 water utilities budget and monthly wastewater rate increase
at the September 25, 2008 Board meeting. The Board approved a motion supporting the proposed
budget and rate change.
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October 7, 2008
The Electric Board reviewed the 2009 Light and Power budget and the proposed increases to the
electric rates and development fees and charges at its meeting on September 17, 2008. The Board
approved a motion supporting the proposed budget and fee changes. "
City Manager Atteberry noted the rate increases that are recommended in the proposed ordinances
are pass -through increases from the Platte River Power Authority.
Eric Sutherland, 631 LaPorte Avenue, stated the rate increase for the electric utility includes an
additional amount paid to Platte River Power Authority for energy efficiency expenditures. He asked
if those funds would be spent on local energy efficiency programs. He asked Council to consider
amending Ordinance No. 112, 2008 to eliminate the Green Pricing Program as it was not
accomplishing its goal of financing renewable energy programs.
Bruce Lockhart, 2500 East Harmony, did not support using funds to support renewable energy
sources such as wind power.
Councilmember Roy asked for assurances that the energy funds would be spent on local energy
efficiency programs. Brian Janonis, Utilities Executive Director, stated the electric rate increases
are pass -through costs from Platte River for increased coal and rail costs at the Rawhide and Craig
power plants; increased purchase power costs from Western Area Power Authority; mercury
mitigation costs; expanded energy efficiency programs which are for large, industrial customers,
such as computer industry customers; capital expenditure increases and a reduction in surplus sales
revenues.
Mayor Hutchinson asked if Platte River had plans to increase the purchase of renewable energy
credits (RECs). Janonis stated Fort Collins is not purchasing any additional RECs but is maintaining
the existing contracts.
Councilmember Manvel stated the wastewater utility currently has five reserve funds totally $23
million and he asked why new bonds were being issued to fund the rebuilding of the Mulberry
wastewater treatment plant instead of using the reserves. Terri Bryant, Utilities Finance and Budget
Manager, stated the reserves are not being used because the reserves are not adequate to fund the $31
million project. $6.8 million of the reserves are being used for the design portion of the project and
there are $5 million in other capital projects being planned.
Councilmember Manvel asked if now was a poor time to buy bonds, given the current financial crisis
in the country. Bryant stated the City does not intend to actually sell the bonds until January with
the hope that the bond market will be in better shape after the first of the year.
Councilmember Roy asked if a portion of the increase in electric rates will be used for local energy
efficiency programs. Janonis stated the energy efficiency programs are for local large industries with
planned projects that are looking for additional energy efficiency. Smaller residential and
commercial energy efficiency programs are run internally through the Utilities department.
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October 7, 2008
City Manager Atteberry stated more information about Platter River efficiency programs would be
provided for second reading. When Platte River agreed to the 5-year rate increase schedule, the
increases were intended to cover coal and transportation costs and were spread over a five-year
period to lessen the impact on consumers.
Councilmember Ohlson asked for information to be provided before second reading about
improvements to the Drake wastewater facility to provide odor control; if it was possible to sell
RECs and use the funds to invest locally; and why the proposed wastewater rates are 30% to 40%
higher per month for Fort Collins residents than Greeley and Longmont.
Councilmember Troxell stated the proposed rate increase is different from the future of distributive
power generation which be discussed at a work session in three weeks.
City Manager Atteberry asked what the typical residential bill will increase to with the proposed rate
increases. Bryant stated the wastewater rate increase will raise a typical residential bill by $2.42 per
month to about $28.48.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
111, 2008 on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
112, 2008 on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No.
113, 2008 on First Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell.
Nays: none.
THE MOTION CARRIED,
Ordinance No. 124, 2008,
Authorizing the Acquisition by Eminent Domain Proceedings of Certain
Lands Necessary for the Construction of Public Trail Improvements in
Connection with the Mason Corridor Trail Project. Adopted on First Readine
The following is staff s memorandum on this item.
We
October 7, 2008
"FINANCIAL IMPACT
Property acquisition costs will be covered by available project funds, whether or not eminent
domain is required.
This phase ofthe Mason Corridor Trail project will rely on grant finding administered through the
Colorado Department of Transportation.
EXECUTIVE SUMMARY
The final phase of the Mason Trail project provides a critical connection between Colorado State
University, the existing Mason Trail between Harmony Road and the Spring Creek Trail, and the
City's community wide trail system (through connections with the Spring Creek Trail and the Fossil
Creek Trail). Due to the importance of this connection, staff is seeking authorization to use the
eminent domain process to acquire the necessary property interests in the event that good faith
negotiations are not successful; staff is hopeful and optimistic that the private property acquisition
will be accomplished by negotiated agreement.
BACKGROUND
In October 2000, the Fort Collins City Council approved the overall Master Plan for the Mason
Transportation Corridor, includingplannedbicycle/pedestrian trail improvements. AsofSeptember
2006, the City completed the first phase of these trail improvements which extend from Harmony
Road north to the Spring Creek Trail.
The current phase, and the last independent segment of the Mason Trail (north of Prospect Road the
trail is combined with the Mason Corridor Bus Rapid Transit guideway) continues the existing trail
alignment along the west side of the Burling Northern Santa Fe (BNSF) Railway corridorfrom the
Spring Creek Trail, north to Prospect Road, a distance ofapproximately one-halfmile. As currently
designed, the proposed segment of trail passes through three separate Colorado State University
(CSU) ownerships and one private property. This Ordinance only pertains to the private property
owner.
The purpose of this Ordinance is to permit staff, if absolutely necessary and only if extensive good
faith negotiations are not successful, to use eminent domain to acquire the necessary property
interests for the proposed trail improvements. Over the past two years the City has had numerous
cooperative and constructive conversations with the property owner, and has every indication that
negotiations will be successful. The property ownerfavors the trail and has made significant efforts
to include the trail in the owner's pending re -development plans. However, due to the
transportation importance of the bicycle/pedestrian link between Colorado State University, the
existing Mason Trail, the Spring Creek Trail and the City's community wide trail system, and in
deference to the Colorado Department of Transportation's preference to have eminent domain
authorization present prior to formal negotiations, staff recommends adoption of this Ordinance. "
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October 7, 2008
City Manager Atteberry noted this ordinance relates to the Mason Trail and authorization of the use
of eminent domain is required by the Colorado Department of Transportation.
Bruce Lockhart, 2500 East Harmony, did not support the use of eminent domain for any reason.
Councilmember Manvel noted eminent domain is used only as a last resort and the Mason Trail is
not only a recreational trail but is a transportation corridor for many bicyclists.
Mayor Hutchinson asked how often the City has used eminent domain to acquire property. Helen
Matson, Real Estate Services Manager, stated over ten years, staff has requested authorization for
the use of eminent domain for 100 properties, but only went to court for one property. This request
is required because the project is receiving federal funding, which requires the ability to use eminent
domain. City Manager Atteberry noted City policy states eminent domain proceedings will not be
used unless there are compelling reasons to use it.
Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No.
124, 2008 on First Reading. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays:
Brown.
THE MOTION CARRIED.
Other Business
Councilmember Brown requested a brief report on the status of City debt, how the debt is rated, the
projected revenues relating to the debt and how it will be paid, current revenues compared to
projections for revenues for the current year to be given at the next meeting and on an annual basis.
City Manager Atteberry stated the report will be given at the next meeting.
Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the
meeting until the end of the other meetings that Council will be conducting in order to then
reconvene and entertain a motion to go into executive session. Yeas: Brown, Hutchinson, Manvel,
Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council adjourned at this point in the meeting to conduct the other
meetings scheduled for tonight.)
Executive Session Authorized
Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive
session, as permitted under Section 2-31(a)(2) of the City Code, to confer with attorneys for the City
regarding potential litigation, and to the extent that the State Sunshine Law may be applicable to the
City, under Section 24-6-402(4)(b) and (e) to confer with the City's attorneys for the purpose of
receiving legal advice on specific legal questions and to determine positions relative to matters that
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October 7, 2008
may be subject to negotiations; to develop strategy for negotiations; and to instruct negotiators.
Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
Suspension of Rules
Councilmember Brown made a motion, seconded by Councilmember Manvel, to suspend the rules
and extend the meeting past midnight. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy
and Troxell. Nays: none.
THE MOTION CARRIED.
("Secretary's note: The Council went into executive session at this point in the meeting and
returned at 12:25 a.m.)
Adjournment
Councilmember Ohlson made a motion, seconded by Councilmember Roy to adjourn the meeting
to 6:00 p.m. on October 14, 2008 to consider additional items of business. Yeas: Brown,
Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 12:26 a.m.
ATTEST:
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City Clerk
193