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HomeMy WebLinkAboutMINUTES-10/21/2008-RegularOctober 21, 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 21, 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: Jones, Krajicek, Roy. Citizen Participation Bob McCluskey, 719 West Shore Court, thanked Councilmember Brown for his years of active duty service and for his service to the City. Eric Sutherland, 631 LaPorte Avenue, urged Council to vote against the electric utility rate increase because there is a lack of planning for the City's energy future. Came Gillis, 2213 Timber Creek Drive, thanked Councilmember Brown for his service to the City. She urged Council to adopt an attitude of cooperation in the mediation process with the Town of Timnath. Kevin Cross, 300 Peterson, Fort Collins Sustainability Group, stated the Group did not support the proposed increase in electric rates as the new rates did not include funding for any of the measures recommended by the Climate Task Force to reduce community -wide greenhouse gas emissions. Mary Smith, 1618 Sagewood Drive, stated trash districting will benefit Fort Collins and two City Boards have given formal recommendations in support of trash districting. She urged Council to move forward with citywide trash districts. Shelly Leach, Fort Collins resident, member of the Women's Commission, stated the Commission encouraged citizens to vote in the November 4 election. Ray Smith, 1618 Sagewood Drive, urged Council to approve trash districting as it will keep the numbers of large trucks on neighborhood streets to a minimum and protect children walking to school. Ellen Lawson, 519 East Plum, stated trash districting would create one system that would improve recycling, air quality, and street maintenance. 206 October 21, 2008 Citizen Participation Follow-up Councilmember Troxell stated trash districting is not necessary and a neighborhood can choose to work together to use one trash hauling company. Councilmember Manvel stated urged citizens to vote early for the November 4 election as it is a long, complicated ballot. Councilmember Ohlson stated it is difficult for individual neighborhoods to work together to use one trash hauling company. It is much easier for neighborhoods with existing homeowner associations to contract with one trash hauling company. Agenda Review Deputy City Manager Jones requested Item#19Postponement ofltemsPertaining tothe Annexation of the Eagle View Natural Area to December 2, 2008 be withdrawn from Council consideration. Item #23 Resolution 2008-100Adopting the 2008 Update to the Three Mile Plan for the City of Fort Collins is withdrawn to allow for more staff review and will be brought for Council consideration no later than November 18. Item #30 Consideration of the Appeal to City Council of the Water Board's August 28, 2008 Denial of the Floodplain Variance for a School in the Poudre River 500- year Floodplain is postponed to December 16 to allow the Poudre School District Board of Education time to consider the school's application. Kevin Cross, 300 Peterson, withdrew Item #7, Items Relating to Utility Rates and Chargesfor 2009. CONSENT CALENDAR 6. Second Reading of Ordinance No. 110, 2008, Amending the City Code to Increase the Amounts of the Capital Improvement Expansion Fees Contained in Chanter 7.5 of the Code so as to Reflect Inflation in Associated Costs of Services. This Ordinance, unanimously adopted on First Reading on October 7, 2009, 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. Items Relating to Utility Rates and Charges for 2009. A. Second Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. 207 October 21, 2008 B. Second Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to Revise Electric Rates and Charges. C. Second Reading of Ordinance No.113, 2008, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. These Ordinances, unanimously adopted on First Reading on October 7, 2008, increase wastewater rates 11%, electric rates by 2.8% on average, and electric development fees by 5-6%. The changes will be effective January 1, 2009. 8. Items Relating to the 2009 Downtown Development Authority Budget. A. Second Reading of Ordinance No. 114, 2008, Appropriating Downtown Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009. B. Second 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. 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. Ordinance No. 115, 2008, appropriates funds for 2009 DDA debt service payments from the tax increment received by the City. Both Ordinances were unanimously adopted on First Reading on October 7, 2008. 9. Second 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. 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 was unanimously adopted on First Reading on October 7, 2008. 10. Second 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 Immediately following the October 21, 2008 Council meeting, the Board of the Water Utility Enterprise will consider on second reading Ordinance No. 006, which authorizes the issuance October 21, 2008 ofCity 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. All utility bonds are 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. This Ordinance, was unanimously adopted on First Reading on October 7, 2008. 11. Second 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. This Ordinance, unanimously adopted on First Reading on October 7, 2008, appropriates funding provided from contracts between the City and CDOT and the City and DDA to advance work 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. 12. Second 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, Juvenile Accountability Block Grant, for the continuation of Restorative Justice Services. This Ordinance, unanimously adopted on First Reading on October 7, 2008, appropriates those funds. A cash match of $2,168 (10%) is required and will be met by appropriating the funds from the Police Operating budget. 13. Second Reading of Ordinance No. 120, 2008, Amending Section 2.9.3(BB) of the Land Use Code Modifying the Procedure for Initiating a Text Amendment. This Ordinance, unanimously adopted on First Reading on October 7, 2008, amends the procedure to initiate a text amendment to the Land Use Code. The amendment deletes 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. 209 October 21, 2008 14. Second 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, unanimously adopted on First Reading on October 7, 2008, amends 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 (IPMQ 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. 15. Second Reading of Ordinance No 123 2008 Authorizing the Conveyance to the Platte River Power Authority of an Easement and Right -of -Way and a Temporary 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 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. This Ordinance, unanimously adopted on First Reading on October 7, 2008, authorizes the conveyance of the easements. 16. Second 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 Ordinance, unanimously adopted on First Reading on October 7, 2008, rezones 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. 17. Second 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. 210 October 21. 2008 This Ordinance, unanimously adopted on First Reading on October 7, 2008, extends the agreement with City Park Nine Golf Course Golf Professional/Concessionaire, DMAC Golf, LLC, for up to five (5) additional one-year renewable periods through December 31, 2013. 18. First Reading of Ordinance No.131, 2008, Apnronriating Funds for the Harmonyand Ziegler Roads Improvements Project: In Spring 2007, Council heard estimates and appropriations for the Harmony Road and Ziegler Road Improvements, Front Range Village Development. This Project is now complete, with the final pavement overlay completed this spring on Harmony Road and the roundabout at Horsetooth and Ziegler. The financial closeout of the project is underway. This appropriation reconciles the various funds that contributed to the project and appropriates additional amounts to cover unanticipated expenses in the project. 19. Postponement of Items Pertaining to the Annexation of the Eagle View Natural Area to December 2, 2008. A. Resolution 2008-097 Setting Forth Findings of Fact and Determinations Regarding the Eagle View Natural Area First Annexation. B. Hearing and First Reading of Ordinance No. 132, 2008, Annexing Property Known as the Eagle View Natural Area First Annexation to the City of Fort Collins, Colorado. C. Hearing and First Reading of Ordinance No. 133, 2008, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Eagle View Natural Area First Annexation to the City of Fort Collins, Colorado. D. Resolution 2008-098 Setting Forth Findings of Fact and Determinations Regarding the Eagle View Natural Area Second Annexation. E. Hearing and First Reading of Ordinance No. 134, 2008, Annexing Property Known as the Eagle View Natural Area Second Annexation to the City of Fort Collins, Colorado. F. Hearing and First Reading of Ordinance No. 135, 2008, Amending the Zoning Map of the City of Fort Collins and Classifying for Zoning Purposes the Property Included in the Eagle View Natural Area Second Annexation to the City of Fort Collins, Colorado. The above items represent a 100% voluntary request to annex approximately 86 acres known as the Eagle View Natural Area and place the area into the POL — Public Open Lands Zone District. The annexations encompass an area slightly larger than the 86 acre natural area, or a total of about 90.8 acres, due to the inclusion of adjacent County road rights -of -way. Staff 211 October 21, 2008 is requesting a postponement of these annexations to December 2, 2008 to allow time for consideration of various annexation strategies in the area of Kechter Road and Strauss Cabin Road. 20. First Reading of Ordinance No 136 2008 Designating the Loomis -Jones House, 401 Smith Street as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owners of the property, Ralph and Patricia Tvede, are initiating this request for Fort Collins Landmark designation for the property. The property has significance to Fort Collins under Landmark Preservation Standards (1) and (3). The residence is one of the oldest frame houses in Fort Collins, and embodies many distinctive characteristics of the Vernacular Architectural Style of the late 19th and early 20th centuries. Additionally, the house at 401 Smith is significant for its association with Abner Loomis, an important and well-known early citizen of Fort Collins. Furthermore, the Loomis -Jones House is a rare surviving example of vernacular residential architecture, built within two decades after the establishment of the Fort Collins town site. It has been an integral part of the Eastside residential area since before 1894 and contributes to the historic architectural character and diversity of the area. 21. First Reading of Ordinance No 137 2008 Designating the Ricketts Farm, 2300 West Mulberry as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. The owners of the property, Richard and Teresa Ricketts, are initiating this request for Fort Collins Landmark designation for the property. The property has significance to Fort Collins under Landmark Preservation Standards (2) and (3). The Ricketts Farm was the home of the Philander Ricketts family, prominent early citizens of Fort Collins. The residence, designed and constructed by Philander Ricketts, embodies many unusual construction techniques of the period, as well as many distinctive characteristics of early 20th century Vernacular Architecture. 22. Resolution 2008 099 Submitting the Urban Renewal Plan for the Prospect South Area to the Planning and Zoning Board the Latimer County Board of Commissioners and the Poudre School District Board of Education. Staff is taking the necessary steps to bring forward an Urban Renewal Plan for Prospect South. One of the necessary steps required by Colorado's Urban Renewal Law is for the Council to formally submit the Urban Renewal Plan to the Planning and Zoning Board, the Poudre School District Board of Education, and the Larimer County Board of Commissioners for its review and, with respect to the Planning and Zoning Board, for a written recommendation as to its conformity with City Plan. The Planning and Zoning Board is scheduled to review the proposed Urban Renewal Plan on November 20, 2008. The Council is scheduled to conduct a public hearing and consider resolutions approving an Existing Conditions Study and the Urban Renewal Plan for the Prospect South area at its December 2 regular meeting. Adoption of this Resolution, 212 October 21, 2008 referring the Plan to the other respective bodies, does not commit the Council to approving the Existing Conditions Study and Urban Renewal Plan for the Prospect South area. 23. Resolution 2008-100 Adopting the 2008 Update to the Three Mile Plan for the City of Fort Collins. The Three -Mile Plan is a policy document that is required to ensure that the City complies with the regulations of the Colorado Revised Statutes. This is the 2008 update to the Three - Mile Plan for the City. 24. Resolution 2008-101 Authorizing a Grant Agreement with the State of Colorado and an Intergovernmental Agreement with Latimer County to Receive Grant Funds from the State of Colorado for Construction of Trails and Other Public Improvements at Soapstone Prairie Natural Area. The City of Fort Collins and Latimer County have received a special cycle trails grant from the State of Colorado's Great Outdoors Colorado (GOCO) to help fund construction of trails and other public improvements at Soapstone Prairie Natural Area and Red Mountain Open Space. This Resolution will authorize the City Manager to sign a Grant Agreement with the State of Colorado and enter into an Intergovernmental Agreement (IGA) with Larimer County to facilitate acceptance and dispersal of the funds. 25. Resolution 2008-102 Approving and Adopting an Identity Theft Prevention Program of the City's Utilities for the Detection, Prevention and Mitigation of Identity Theft. Under the revision to the FACT Act 2003 (Fair and Accurate Credit Transactions Act), each utility is required to have policies and procedures in place by November 1, 2008 which meet the standards outlined by Federal Agencies including the Federal Trade Commission. There are a number of red flags or potential warnings of identity theft included in current legislation. Portions of these occur more frequently in utilities than others. The role of the Council acting as the City's Board of Directors is to grant initial approval of the Identity Theft Program plan before implementation and annual report review. 26. Resolution 2008-103 Reappointing Utilities Executive Director Brian Janonis to the Platte River Power Authority Board of Directors. The Platte River Power Authority Board of Directors is comprised of two representatives from each of the four member cities. The Mayor (or Mayor's designate) fills one slot and the second representative is appointed by the Council. Utilities Executive Director BrianJanonis has served as the City's representative since February 2008 to the expiration of his term on December 31. 2008. This Resolution reappoints BrianJanonis for the newterm which expires December 31, 2012 or until such appointment is changed by the Council. 213 October 21, 2008 ***END CONSENT*** Ordinances on Second Reading were read by title by City Clerk Krajicek. 6. Second 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. 7. Items Relating to Utility Rates and Charges for 2009. A. Second Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. B. Second Reading of Ordinance No.112, 2008 Amending Chapter 26 of the City Code to Revise Electric Rates and Charges. C. Second Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. 8. Items Relating to the 2009 Downtown Development Authority Budget. A. Second Reading of Ordinance No. 114, 2008, Appropriating Downtown Development Authority Operating Funds and Fixing the Mill Levy for Fiscal Year 2009. B. Second 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. 9. Second 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. 10. Second 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. 11. Second 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. 12. Second 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. 214 October 21, 2008 13. Second Reading of Ordinance No. 120, 2008, Amending Section 2.9.3(B) of the Land Use Code Modifying the Procedure for Initiating a Text Amendment. 14. Second Reading of Ordinance No. 121, 2008, Amending Section 2-119 of the City Code Pertaining to the Functions of the Building Review Board. 15. Second Reading of Ordinance No. 123, 2008, Authorizing the Conveyance to the Platte River Power Authority of an Easement and Right -of -Way and a Temporary Construction Easement on the City -Owned Fossil Creek Wetlands Natural Area. 16. Second 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. 17. Second 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. 31. Items Relating to the Adoption of the 2006 International Property Maintenance Code (IPMQ9 with Local Amendments Relating to Existing Building Conditions and Rental Housing Standards. A. Second 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 (IPMQ0, with Amendments. B. Second Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division 2, of the City Code Relating to Supplemental Rental Housing Provisions. 32. Second 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. Ordinances on First Reading were read by title by City Clerk Krajicek. 18. First Reading of Ordinance No. 131,2008, Appropriating Funds for the Harmony and Ziegler Roads Improvements Project. 20. First Reading of Ordinance No. 136, 2008, Designating the Loomis -Jones House, 401 Smith Street, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 21. First Reading of Ordinance No. 137, 2008, Designating the Ricketts Farm, 2300 West Mulberry, as a Fort Collins Landmark Pursuant to Chapter 14 of the City Code. 215 October 21, 2008 Councilmember Manvel made a motion, seconded byCouncilmember Poppawto adopt and approve all items not withdrawn from the Consent Calendar. Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Staff Reports Chuck Seest, Finance Director, gave a report on the status of City debt and bond rating. The City has a $350 million portfolio invested primarily in bonds that have continued to pay interest and mature. Cash kept for operations, which can vary on a weekly amount from $8 million to $15 million, is divided between the local agency investment funds in the state and First National Bank which minimized the City's losses in the recent national financial crisis. The City did experience a $45,000 investment loss when the Colorado Diversified Trust, the liquid government investment pool, experienced a loss of millions of dollars after Lehman Brothers went under. The investment portfolio is expected produce a 3.5% return for 2008. The stormwater and water utilities debt rating has been upgraded to AA+. That rating will benefit the City when bonds are sold. The City's "Policy Target" to manage debt states no more than 15% of overall governmental expenditures can be used to service debt. Debt service costs have been kept below 10% for the past two years. Councilmember Ohlson asked if the phrase "Policy Target" could be changed to indicate 15% is a maximum amount allowed for debt service. Seest stated the phrase "Policy Target" originated in the 1980s, when the City's debt service was much higher than 15% and lowering the debt service to 15% was a target goal of the City. It is a phrase that can be changed. Councilmember Ohlson asked for a comparison to peer cities of the total debt in dollar amounts and percentages. Councilmember Brown asked what was the composition of the investment portfolio. Seest stated the investments were primarily in federal agency -backed notes such as federal home loan credit, Fannie Mae, Freddie Mac, and in Triple -A corporates such as Bershire-Hathaway. Councilmember Ohlson asked about future warning signs. Seest stated understanding what the recent federal actions mean for Fannie Mae and Freddie Mac investments and where to reinvest the City's funds will be a constant challenge. Deputy City Manager Jones stated the Water Treatment Facility recently received a second Bronze Environmental Achievement Award from the Colorado Department of Public Health and Environment for its substantial natural gas savings. The Water Treatment Facility also won the Director's Award for Partnership for Safe Water for continued success in water quality. 216 October 21. 2008 Councilmember Reports Councilmember Ohlson stated the Downtown Development Authority annual retreat was held and proposals for 2009 such a future downtown amphitheater, a state-of-the-art community market, alley improvement projects were discussed. Items Relating to the Adoption of the 2006International Property Maintenance Code (IPMC)® with Local Amendments Relating to Existing Building Conditions and Rental Housing Standards Adopted on Second Reading The following is staff s memorandum on this item. "EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 108, 2008, Amending Chapter 5, Article II, Division 3, of the City Code for the Purpose ofAdopting the 2006International Property Maintenance Code (IPMC)9, with Amendments. B. Second Reading of Ordinance No. 109, 2008, Amending Chapter 5, Article VI, Division 2, of the City Code Relating to Supplemental Rental Housing Provisions. Ordinance No. 108, 2008, unanimously adopted on First Reading on October 7, 2008, adopts the IPMC with local amendments as a tool to replace the City's obsolete codes relating to existing building conditions and rental housing. Ordinance No. 109, 2008, adopted on First Reading on October 7, 2008, by a vote of 5-2 (nays: Brown, Troxell) amends 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. On First Reading, Section 5-261 of the City Code regarding fees was amended. In order to explore additional options with regard to that provision, the Council Leadership Team has recommended that no changes be made to Section 5-261 at this time. Therefore, thatprovision has been withdrawn and will be considered separately at the Council Meeting of December 2, 2008. " Jeff Scheick, Planning Development and Transportation Director, stated the 2006 International Property Maintenance Code (IPMC) establishes minimum health and safety requirements and corrective procedures applicable to all existing residential buildings and all non-residential buildings and replaces obsolete regulations currently in effect. The rental housing standards updates existing rental housing regulations relating to administration and procedures and eliminates duplicate provisions that are included in the IPMC. It will apply to all rental housing, including single and multi -family dwellings, manufactured housing, hotels and rooming houses. The rental housing standards have been revised by withdrawing provisions establishing collection of permit and impact fees for conversion to, or creation of, rental dwelling units. This provision will be considered as a 217 October 21, 2008 separate item on December 2. Adoption of the IPMC and the rental housing standards will improve staff s ability to administer the regulations and should not require additional administrative costs. The conditions that need correction may result in additional cost to the property owner. Mayor Hutchinson noted the issue of fees charged for non -recorded converted rentals has been removed from the ordinance and will be considered separately on December 2. Carrie Gillis, 2213 Timber Creek Drive, stated the requirements of the IPMC should not be limited to rentals, but should include owner -occupied, single family dwellings. She urged Council to include owner -occupied dwellings in the IPMC. Alan Cram, 2425 Hampshire Square, did not support adoption of the rental housing standards as current codes were already in place to address issues that arise and another layer of rules were not necessary. Mayor Hutchinson stated asked how many rental properties would be affected by the rental housing standards. Mike Gebo, Deputy Building Official, stated six properties in town are dangerous buildings that cannot be addressed by using the current Code. Many rental properties will need improvement to meet the new rental housing standards. Councilmember Manvel asked if the new provisions to the rental housing standards were a big change from the current standards. Gebo stated improvements are contained in the new provisions such as enlarging egress windows in basement bedroom windows and requiring smoke and carbon monoxide detectors. Mayor Hutchinson asked what outreach has been done to gather public input. Felix Lee, Director of Neighborhood and Building Services, stated outreach began over two years ago when a work session was held with Council. Numerous public meetings have been held; staff has made several presentations to the Board of Realtors and to various boards and commissions. Councilmember Brown asked if a historically designated home that is used as a bed and breakfast or as a rental unit could be required to meet the standards. Lee stated an exception exists for historic properties, if the exception is not related to health or safety. If a modification is necessary for health or safety reasons, the City would allow modification of the historic home. Councilmember Troxell stated statistics provided by staff show there are approximately 12,000 renters in the city and he asked if the City had a list of addresses for rentals. Lee stated no list was available to staff. Councilmember Troxell asked how many rentals need to make improvements to become compliant with the new standards and if the current Code is sufficient to address most issues that arise. Gebo stated inspectors find many properties that are lacking smoke detectors, have malfunctioning heating systems, or do not have screens in the summer, but no set number is known of how many rentals will need corrections. The current Code does not address some issues, such as requiring heating capability to 68 degrees, requiring smoke detectors or carbon monoxide detectors in all dwellings, 218 October 21, 2008 requiring screens during the summer months. The new provisions are improvements to the basic tools already available to inspectors. Councilmember Troxell asked for the cost of rent of an average rental property and what will be the impact of the new provisions on rental rates. Lee stated he could provide the average rent cost at a later date. Staff projects the costs of most improvements will be recouped by the property owner in just a few months. Councilmember Troxell asked if market demand for rentals would force property owners to keep their properties up to acceptable standards without needing more regulations imposed upon property owners. Scheick noted the public outreach done for the past two years included a large portion of the housing industry and the feedback received from those groups showed that the market can afford the improvements that will be required and keep rents at a consistent rate. Councilmember Manvel asked why owner -occupied dwellings will be excluded from the IPMC. Lee stated the exemption was included in the amendments to the IPMC because of concern about owner property rights issues. A renter has less control over the dwelling conditions and the IPMC will assist renters with issues that can arise with rental units. Mayor Hutchinson noted the exclusion of owner -occupied properties was intended to make the IPMC less intrusive and still allow renters some recourse with properties that are not up to certain standards. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 108, 2008 on Second Reading. Councilmember Manvel stated raising the heating standard from 60 degrees to 68 degrees will lessen the use of space heaters in rental housing and increase safety. Requiring screens on windows in the summer also will protect renters from West Nile virus. If a property already meets the standards in the IPMC with amendments, the property owner will not have any increased cost to bring the property up to the standard. Councilmember Troxell stated data has not been provided to support adding more requirements for rental housing. The rental housing market will mandate that landlords keep their properties in acceptable condition and those properties that are not in habitable living conditions will not be rented. Councilmember Ohlson suggested staff develop a plan to provide an amnesty period of up to one year to bring non -conforming duplexes into compliance and get a certificate of occupancy, provided the zoning of the property allows for multi -family dwellings, with no charge of impact fees, other than the processing costs required to obtain a certificate of occupancy. The goal is reinvestment in properties, compliance, and improving the safety of the residents. Councilmember Roy stated it is reasonable for the City to ensure renters have a safe and healthy place to live. 219 October 21, 2008 Mayor Hutchinson noted a list of rentals is not available because the City does not require rental registration. Councilmember Brown stated he did not support charging impact fees on properties that were converted years ago but he could support an amnesty period to provide time for non -conforming rental properties to acquire a certificate of occupancy. Safety standards for renters are essential. Councilmember Troxell stated the City currently has affordable and safe housing and the supplemental rental housing standards are too intrusive and no data has been provided to show a need for those standards. Mayor Hutchinson stated the proposed standards are not intrusive into private property and provide reasonable standards for housing. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 109, 2008 on Second Reading. Councilmember Roy expressed his support for an amnesty period to bring non -conforming rental properties into compliance and acquire a certificate of occupancy. Councilmember Manvel noted the portion of the supplemental rental housing standards that required fees for non -conforming rental properties had been removed and he asked why all Councilmembers did not now support the ordinance. Councilmember Troxell did not believe there was a safety issue with rental housing in the City and the proposed standards only add more regulations that are not necessary and will negatively impact affordable housing by causing increase in rent. Councilmember Manvel stated the ordinance mainly contains definitions and does not contain any increased standards that could increase costs. Lee stated the revised ordinance is primarily administrative, clarifying the appeals process, fines, civil citations and other procedural matters and does not address habitability standards. Councilmember Ohlson stated staff had worked diligently to build consensus on this item and the standards provide very basic requirements for renters that address safety and health. Protecting the rights of renters is a basic component of government and he would have liked the standards to be more stringent. Councilmember Troxell stated the ordinance did incorporate dwelling conditions and he did not believe added regulations were necessary. 220 October 21, 2008 The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, and Roy. Nays: Troxell, THE MOTION CARRIED. ("Secretary's note: The Council took a brief recess at this point in the meeting.) 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 Second Reading The following is staffs memorandum on this item. "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 Citys 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. This Ordinance, adopted on First Reading by a vote of 6-1 (nays: Brown) will authorize 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. " Councilmember Manvel made a motion, seconded by Councilmember Roy, to adopt Ordinance No. 124, 2008, on Second Reading. Mayor Hutchinson asked why authorization to use eminent domain is required. Helen Matson, Real Estate Services Manager, stated the project is federally funded and any time federal funds are used, eminent domain must be authorized to receive those funds. The property owner is very cooperative and staff does not anticipate using eminent domain. Councilmember Roy asked for an update on the Mason Corridor Project. Mark Jackson, Transportation Group Director, stated acquiring this property will help staff complete the Mason Trail north to the CSU campus. Two grade -separated crossings are underway along the Mason Trail. The Transit Project has received $4.6 million from the State of Colorado for the first phase of the Mason Corridor Bus Rapid Transit from the Downtown Transit Center into CSU. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. 221 October 21, 2008 Resolution 2008-104 Excusing the Absence of Councilmember Diggs Brown From Future Meetings of the City Council, Adopted The following is staff s memorandum on this item. "EXECUTIVE SUMMARY As a member of the country's armed services, Councilmember Brown has received orders for deployment outside of the United States. This will be the last Council meetingfor Councilmember Brown until his deployment is over or until his term on the Council ends in April 2009. Resolution 2008-104 excuses Councilmember Brown from all regular and special Council meetings during his deployment and recognizes his contributions as a Councilmember and member of the armed services. BACKGROUND In addition to his service to the community as a member of the Fort Collins City Council, Major Diggs Brown is an active member ofthe Colorado Army National Guard. Major Brown has recently received orders for deployment outside of the United States, and this will be his last Council meeting. Under the City Charter, a Council seat is considered vacant if the Councilmember misses regular and special meetings for 60 consecutive days, unless excused by resolution of the Council. " The following citizens expressed their thanks and appreciation to Councilmember Brown for his service to the City and the United States: David May, 225 South Meldrum Eric Kronwall, 1119 Monticello Court Kevin Westhuis, 2944 Telluride Court, Fort Collins Board of Realtors Mel Hilgenberg, 172 North College Vivian Armendariz, 820 Merganser Drive Councilmember Ohlson made a motion, seconded by Councilmember Troxell, to adopt Resolution 2008-104 and he read the resolution in its entirety. Councilmember Poppawthanked Councilmember Brown for his service on City Council and wished him well. Councilmember Roy commended Councilmember Brown for his service and dedication to the City 222 October 21, 2008 Councilmember Troxell expressed his appreciation for Councilmember Brown's service to the country by serving in the U.S. Army for many years and for his service to the City. He noted Councilmember Brown was instrumental in creating the Veterans Plaza. Councilmember Manvel thanked Councilmember Brown for his commitment to the City and his willingness to discuss issues and work with Council. Councilmember Ohlson stated excusing Councilmember Brown was an appropriate decision by Council and he thanked Councilmember Brown for his dedication to the City. Mayor Hutchinson expressed his gratitude to Councilmember Brown for his service to the community and to the country. Councilmember Brown stated it was a great honor to serve in the military for 30 years and to serve on Council for 3 1/2 years. He was proud of working to add two patrol officers to the City's police force without raising taxes and for initiating the creation of the Veteran's Plaza at Spring Canyon Community Park. Mayor Hutchinson presented Councilmember Brown with a framed picture of downtown Fort Collins in appreciation of his service. The vote on the motion was as follows: Yeas: Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Abstain: Brown THE MOTION CARRIED. Items Relating to Utility Rates and Charges for 2009, Adopted on Second Reading The following is staffs memorandum on this item. "EXECUTIVE SUMMARY A. Second Reading of Ordinance No. 111, 2008 Amending Chapter 26 of the City Code Relating to Wastewater Rates and Charges. B. Second Reading of Ordinance No. 112, 2008 Amending Chapter 26 of the City Code to Revise Electric Rates and Charges. C. Second Reading of Ordinance No. 113, 2008, Amending Chapter 26 of the City Code to Revise Electric Development Fees and Charges. These Ordinances, unanimously adoptedon First Reading on October 7, 2008, increase wastewater rates 11 %, electric rates by 2.8% on average, and electric development fees by 5-6%. The changes will be effective January 1, 2009. " 223 October 21, 2008 Councilmember Roy asked if adopting the proposed rate changes will prohibit the City from making changes to the Energy Policy. Brian Janonis, Utilities Executive Director, stated staff has added a fourth goal of cooperation with Platte River Power Authority to the draft Energy Policy after receiving direction from Council and plans to present the Policy for Council consideration on December 2. Plans to implement the Policy should be completed early in 2009 and staff will return to Council with the rate impacts and Council will be able to modify rates in mid-2009. Mayor Hutchinson noted Council can act at any time to modify the rates, but implementation plans should be completed before any rate changes are contemplated. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 111, 2008, on Second Reading. Mayor Hutchinson stated the proposed rate increases are a cost of business adjustment. The cost of coal transportation and other expenses has forced Platte River to increase its prices. The City's utility is required to be operated so that it neither makes a profit nor lose money. The wholesale cost of electricity from Platte River has increased, so that cost must be passed on to the customers. The vote on the motion was as follows: Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 112, 2008, on Second Reading, Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Roy made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 113, 2008, on Second Reading. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Other Business Councilmember Brown made a motion, seconded by Councilmember Troxell, to cancel the November 4, 2008 regular Council meeting. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the meeting until the conclusion of the General Improvement District No. I meeting and the Water 224 October 21, 2008 Utility Enterprise meeting and then reconvene to conduct any other business that may come before the Council, including a possible executive session. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. ("Secretary's note: The Council adjourned at 9:05 p.m. and reconvened at 9:10 p.m.) Executive Session Authorized Councilmember Ohlson made a motion, seconded by Councilmember Roy, to go into executive session to discuss potential litigation and confer with the City's attorneys regarding related legal issues, as permitted under Section 3-31(a)(2) of the City Code and, if applicable, Section 24-6- 402(3)(a)(11) of the Colorado Revised Statutes. 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.) Adjournment Councilmember Ohlson made a motion, seconded by Councilmember Manvel, to adjourn the meeting to Tuesday, October 28, 2008 at 6:00 p.m. Yeas: Brown, Hutchinson, Manvel, Ohlson, Poppaw, Roy and Troxell. Nays: none. THE MOTION CARRIED. The meeting adjourned at 10:15 p.m. ATTEST: 225