HomeMy WebLinkAboutMINUTES-09/18/2012-RegularSeptember 18, 2012
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, September 18,
2012, 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: kottwitz, Manvel, Ohlson, Poppaw, Troxell and
Weikunat.
Councilmembers Absent: Horak.
Staff Members Present: Atteberry, Nelson, Roy.
AAzenda Review
City Manager Atteberry stated there were no changes to the published agenda.
Citizen Participation
Roger Dodds supported the Corporation Separation Movement and the resolution which will be
presented for Council consideration on -October 2.
Cheryl Distaso, Fort Collins Community Action Network, supported the Corporation Separation
Movement and the resolution which will be presented for Council consideration on October 2.
Chuck Washington, 1125 Deercroft Court, supported the reestablishment of Dial -a -Ride service to
the southeast part of town.
Devin Hirning, 2214 Fossil Creek Parkway, opposed the proposed business incentive package for
Avago.
Myles Crane, Human Relations Commission member, announced an elder abuse forum.
Steve Raimer, Fort Collins Mennonite Fellowship, supported the Corporation Separation Movement
and the resolution which will be presented for Council consideration on October 2.
CONSENT CALENDAR
Consideration and Approval of the Minutes of the August 21, 2012 and September 4, 2012
Regular Meetings and the August 28, 2012 Adjourned Meeting.
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September 18, 2012
Items Relating to the Wood Street Annexation and Zoning
A. Second Reading of Ordinance No. 052, 2012, Annexing Property Known as the
Wood Street Annexation to the City of Fort Collins.
B. Second Reading of Ordinance No. 053, 2012, Amending the Zoning Map of the City
of Fort Collins and Classifying for Zoning Purposes the Property Included in the
Wood Street Annexation to the City of Fort Collins.
These Ordinances, unanimously adopted on First Reading on June 5, 2012, annex and zone
17.3443 acres located on the east side of Wood Street, approximately 1,320 feet east of
North Shields Street. The property is developed and is in the 0 - Open District in Larimer
County. The requested zoning for this annexation is UE — Urban Estate. The surrounding
properties are currently zoned 0 — Open in Larimer County to the south and west, as well
as E —Employment in the City to the west (City of Fort Collins Fleet Services Building), and
POL — Public Open Lands in the City (Lee Martinez Park and McMurry Natural Area) to the
east and north. This is a 100% voluntary annexation.
Staff is recommending that this property be included in the Residential Neighborhood Sign
District. A map amendment will be necessary as this property is not already in the District.
8. Items Relating to the 2012 Downtown Development Authority -Related Financing Activities.
A. Second Reading of Ordinance No. 089, 2012, Authorizing the Establishment of a
Revolving Line of Credit to be Paid Solely with Downtown Development Authority
Tax Increment Funds for a Six Year Period in the Amount of up to One Million
Dollars Annually to Finance Downtown Development Authority Projects and
Programs in Accordance with the Downtown Development Authority Plan of
Development and Approving Related Documents.
B. Second Reading of Ordinance No. 090, 2012, Appropriating Prior Year Reserves in
the Downtown Development Authority Fund, Funds Drawn from the 2012 City of
Fort Collins Revolving Line of Credit Established to Finance Downtown
Development Authority Projects and Programs and Funds for Debt Service on the
Revolving Line of Credit.
The Board of Directors of the Downtown Development Authority (DDA) believes it would
be financially beneficial for the DDA and the community as a whole for a revolving Line of
Credit to be established with a local bank for 6-six-year period. The Line of Credit will be
used to finance DDA projects and programs. Ordinance'No. 089, 2012, unanimously
adopted on First Reading on September 4, 2012, authorizes the establishment of the Line of
Credit and approves the execution of the First National Bank documents.
Ordinance No. 090, 2012, unanimously adopted on First Reading on September 4, 2012,
appropriates unanticipated revenue from interest earnings in the amount of $191,032; from
project savings in the amount of $331,113; funds appropriated but not spent of $940,430;
funds from the 2010 Bond Series that were not appropriated in the amount of $500,000; and
funds from the 2012 Revolving Line of Credit draw of up to $1,000,000 for a total
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September 18, 2012
appropriation of $2,962,575. The DDA Board has authorized the expenditure on the various
projects and programs. This Ordinance also appropriates the debt service payment on the
2012 Line of Credit draw.
9. Second Reading of Ordinance No. 091, 2012, Appropriating Unanticipated Grant Revenues
in the General Fund for the Restorative Justice Services and Appropriating Funds from the
Police Operating Budget.
Ordinance No. 091, 2012, unanimously adopted on First Reading on September 4, 2012,
appropriates a grant in the amount of $45,000 from the Colorado Division of Criminal
Justice Juvenile Diversion fund for the continued operation of Restorative Justice Services,
which includes the RESTORE program for shoplifting offenses, and the Restorative Justice
Conferencing Program for all other offenses. A cash match of $7,440 is required and will
be met by appropriating funds from the police operating budget designated for Restorative
Justice Services. The total required match is 25%; an additional $7.560 in -kind match is
designated from the Eighth Judicial Probation Department.
10. Second Reading of Ordinance No. 093, 2012, Amending Section 26-279 of the City Code
to Allow a Reduction for Calculated Evaporative Losses in Determining Wastewater
Volume for Existing Large Industrial Processes.
In 2010, Chapter 26 of the City Code was modified to establish an additional method of
determining wastewater volume as the basis for Wastewater Service fees. That Code
amendment allowed Utilities to recognize specific quantities of water consumed or
processed in manufacturing processes for the City's industrial and large commercial
wastewater customers. Examples include cooling towers and other equipment or processes
where a measurable reduction in wastewater discharge, can be determined and metered. The
reduction may apply to either a specified portion of the user's facilities or the facility as a
whole.
This Ordinance, unanimously adopted on First Reading on September 4, 2012, adds an
option to Section 26-279 of the City Code to allow for the use of nationally accepted
industry standards of calculation to recognize specific quantities of water that are evaporated
off as part of an industrial process and as a result are not discharged to the wastewater
system. The models would provide a quantifiable amount of water which should not be
included in the wastewater discharge volume which serves as the basis for Wastewater
Service fees in lieu of metering for existing structures. This adjustment will be allowed only
for large industrial customers, and metering will still be required for newly constructed
facilities.
11. Second Reading of Ordinance No. 094, 2012, Desi nating the Schroeder House/Laurel
Apartments, 121 East Laurel, Street, as a Fort Collins Landmark Pursuant to Chapter 14 of
the City Code.
This Ordinance, unanimously adopted on First Reading on September 4, 2012, designates
the Schroeder Residence/Laurel Apartments at 121 East Laurel Street as a Fort Collins
Landmark. The property owner, Brian Beeghly, is initiating this request.
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September 18, 2012
12. Items Relating to the Forney Annexation and Zoning.
A. Second Reading of Ordinance No. 095, 2012, Annexing the Property Known as the
Forney Annexation.
B. Second Reading of Ordinance No. 096, 2012, Amending and Classifying for Zoning
Purposes the Property Included in the Forney Annexation.
These Ordinances, unanimously adopted on First Reading on September 4, 2012, annex and
zone 23.16 acres located on the north side of LaPorte Avenue, approximately 1,280 feet east
of North Taft Hill Road.
The parcels to be annexed, all owned by Forney Industries, are currently located in Latimer
County's I — Industrial Zoning District. The requested zoning for this annexation is the T -
Transition.
13. Second Reading of Ordinance No. 097. 2012, Authorizing the Conveyance of a Portion of
a Tract of Stormwater Utility Property to Coby S. Hughey and Linda C. Hughey.
In 1992, the final plat of Pheasant Ridge Estates dedicated Tract A to the City of Fort Collins
for the purpose of a detention basin. After the dedication, the developer certified to the City
that he could meet the required stormwater detention volumes without excavating and
grading the western most portion of Tract A (the portion adjacent to 1700 Westview Road.)
Due to the City's change of use for this portion of Tract A, the adjacent property owners,
Coby and Linda Hughey, have expressed an interest to obtain the portion of Tract A that
abuts their property at 1700 Westview Road. This Ordinance, unanimously adopted on First
Reading on September 4, 2012, authorizes the conveyance of a portion of Tract A to the
Hugheys.
14. Items Relating to the High Park Fire Remediation.
A. Second Reading of Ordinance No. 098, 2012, Appropriating Additional Prior Year
Reserves in the Water Fund for Additional High Park Fire Remediation.
B. Resolution 2012-090 Authorizing the Mayor to Sign Additional Intergovernmental
Agreements Regarding Funding of Cache La Poudre Watershed Mitigation in
Response to the High Park Fire.
On August 21, City Council approved an emergency ordinance appropriating reserves from
the Water Fund to begin the soil stabilization efforts required to limit the impacts of the High
Park Fire on the Cache la Poudre watershed. That appropriation allowed work to begin on
the Hill Gulch, which had been identified as the most critical area comprising Phase 1 of the
effort for the whole 5,657 acres which will require aerial mulching and seeding per the Burn
Area Emergency Response (BAER) report. That work is anticipated to be completed in 2
weeks, allowing the next critical area, Boyd Gulch, to be treated before October. This
Ordinance seeks $2,000,000 from the Water Fund reserves to tackle.the soil stabilization
efforts in the Boyd Gulch and other high -priority areas to be completed in 2012.
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September 18, 2012
On August 21, City Council also approved Resolution 2012-079 authorizing the Mayor to
sign two Intergovernmental Agreements to allow the initial work to be done in Boyd Gulch.
With the additional funding being requested through Ordinance No. 098. 2012, it will be
necessary to enter into similar agreements to complete the additional soil stabilization
efforts.
15. First Reading of Ordinance No. 099, 2012. Amending the City Code and Adopting the First
Amendment to the City of Fort Collins General Employees' Retirement Plan as Amended
and Restated January 1, 2012, to Change the Make-up of the General Employees Retirement
Committee.
The existing structure of the General Employees' Retirement Committee (GERC) has 6
positions and must include at least 3 active employee members and only 1 retiree receiving
a benefit. The GERC recommends more flexibility in appointment of committee
representatives by changing those 4 positions to be any of the following: an active employee,
a former employee that is vested but not yet receiving a benefit, or a retiree receiving a
benefit.
16. First Reading of Ordinance No. 100, 2012, Appropriating Unanticipated Grant Revenue in
the Transportation Services Fund for the State Fiscal Year 2012-2013 Safe Routes to School
Program.
The City of Fort Collins Transportation Planning Office has received a $27,500 federal grant
through the Colorado Department of Transportation for the FY 2012-13 Safe Routes to
School (SRTS) program. This funding will allow the City's Safe Routes to School Program,
administered and staffed by Transportation Planning, to enhance its pedestrian and bicycle
safety education programs.
17. First Reading of Ordinance No. 101, 2012, Adjusting the Terms of the Youth Advisory
Board to Coincide with the School Year.
At the request of the Youth Advisory Board, and at the direction of Council, this Ordinance
amends the terms of members of the Youth Advisory Board so that terms begin June 1 and
expire May 31. This change will allow newly appointed members to include Youth
Advisory Board meetings and activities when planning for the upcoming school year. The
Youth Advisory Board does not meet during the summer months.
The terms of all City boards and commissions expire on December 31 as required by
Ordinance No. 070, 2000. This Ordinance provides that the next time the Boards and
Commissions Manual is updated, the term expiration dates of the City Boards and
Commissions will be addressed in the Manual.
18. Resolution 2012-091 Amending Resolution 2006-124 to Revise the Process for City Council
Evaluation of the Performance of the City Manager, City Attorney and Municipal Judge
Resolution 2006-124 outlines the process for completion of the annual formal performance
evaluation of the City Manager, City Attorney and Municipal Judge (the "Employees"), as
well as the process for determining compensation and benefit changes. In order to improve
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September 18, 2012
communication and provide more timely information to Council, the due date for Employee
self -evaluations and compensation requests will be moved from 4 days prior to the
Employees annual review to 20 days prior.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Nelson.
7. Items Relatine to the Wood Street Annexation and Zoning.
A. Second Reading of Ordinance No. 052, 2012, Annexing Property Known as the
Wood Street Annexation to the City of Fort Collins.
B. Second Reading of Ordinance No. 053; 2012, Amending the Zoning Map of the City
of Fort Collins and Classifying for Zoning Purposes the Property Included in the
Wood Street Annexation to the City of Fort Collins:
8. Items Relating to the 2012 Downtown Development Authority -Related Financing Activities.
A. Second Reading of Ordinance No. 089, 2012, Authorizing the Establishment of a
Revolving Line of Credit to be Paid Solely with Downtown Development Authority
Tax Increment Funds for a Six Year Period in the Amount of up to One Million
Dollars Annually to Finance Downtown Development Authority Projects and
Programs in Accordance with the Downtown Development Authority Plan of
Development and Approving Related Documents.
B. Second Reading of Ordinance No. 090, 2012, Appropriating Prior Year Reserves in
the Downtown Development Authority Fund, Funds Drawn from the 2012 City of
Fort Collins Revolving Line of Credit Established to Finance Downtown
Development Authority Projects and Programs and Funds for Debt Service on the
Revolving Line of Credit.
9. Second Reading of Ordinance No. 091, 2012, Appropriating Unanticipated Grant Revenues
in the General Fund for the Restorative Justice Services and Appropriating Funds from the
Police Operating Budget.
10. Second Reading of Ordinance No. 093, 2012. Amending Section 26-279 of the City Code
to Allow a Reduction for Calculated Evaporative Losses in Determining Wastewater
Volume for Existing Large Industrial Processes.
11. Second Reading of Ordinance No. 094, 2012, Designating the Schroeder House/Laurel
Apartments, 121 East Laurel, Street, as a Fort Collins Landmark Pursuant to Chapter 14 of
the City Code.
12. Items Relating to the Forney Annexation and Zoning.
A. Second Reading of Ordinance No. 095. 2012, Annexing the Property Known as the
Forney Annexation.
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September 18, 2012
B. Second Reading of Ordinance No. 096, 2012, Amending and Classifying for Zoning
Purposes the Property Included in the Forney Annexation.
13. Second Reading of Ordinance No. 097, 2012, Authorizing the Conveyance of a Portion of
a Tract of Stormwater Utility Property to Coby S. Hughey and Linda C. Hughey.
14. Second Reading of Ordinance No. 098, 2012, Appropriating Additional Prior Year Reserves
in the Water Fund for Additional High Park Fire Remediation. 1.
23. Second Reading of Ordinance No. 092, 2012, Amending Certain Provisions of the Land Use
Code to Afford Better Regulation of Multi -Family, High Density Housing Developments
Ordinances on First Reading were read by title by City Clerk Nelson.
15. First Reading of Ordinance No. 099, 2012, Amending the City Code and Adopting the First
Amendment to the City of Fort Collins General Employees' Retirement Plan as Amended
and Restated January 1, 2012, to Change the Make-up of the General Employees Retirement
Committee.
16. First Reading of Ordinance No. 100, 2012, Appropriating Unanticipated Grant Revenue in
the Transportation Services Fund for the State Fiscal Year 2012-2013 Safe Routes to School
Program.
17. First Reading of Ordinance No. 101, 2012, Adjusting the Terms of the Youth Advisory
Board to Coincide with the School Year.
24. First Reading of Ordinance No. 102, 2012, Authorizing and Approving the Execution and
Delivery by the City of a Site and Improvement Lease and a Lease Purchase Agreement and
Related Documents, Concerning the Leasing by the City of Open Space and Natural Areas.
a Deicing Materials Storage Facility and a Centralized, Police Services Building. to
Refinance the City's 2004 Lease Agreement at a Lower Interest Rate: Ratifying Action
Previously Taken; and Providing Other Matters Related Thereto.
Councilmember Manvel made a motion, seconded by Councilmember Troxell, to adopt and approve
all items on the Consent Calendar. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw and
Troxell. Nays: none.
THE MOTION CARRIED.
Staff Reports
Kim Newcomer, Communication and Public Involvement Manager, provided a brief overview of
the growing mobile internet market and stated the City has created several different mobile
applications, both for the public and employees.
Dan Coldiron, Chief Information Officer, reviewed the most popular City applications. He
announced the City's website was awarded the Pinnacle Award from the National Association of
Government Webmasters as the best website in the nation for medium-sized organizations.
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September 18, 2012
Lynn Sanchez, Wellness Program Coordinator, provided an overview of the City's employee
wellness program and stated the City's health claim costs are trending in a positive direction.
Rick Richter, Interim City Engineer, discussed the MAX bus rapid transit construction and stated
the Mason Street two-way conversion has occurred. He stated downtown station construction will
begin after the first of the year. He stated construction on the south transit center recently began.
Claire Thomas, Public Relations Coordinator, announced the Mason to the MAX event to be held
Thursday, September 27 and a public open house to be held October 3
Mayor 'Pro Tern Ohlson asked about the timing of the construction of the railroad -required
pedestrian and bike overpass. Richter replied that project will likely be re -bid in March of 2013 with
construction in the spring 2013. Tomas stated there is a full communication plan in place for that
project as well.
Councilmember Reports
Councilmember Kottwitz thanked the Parks Department for its work with the Southridge
Community Association.
Councilmember Troxell reported on the 100 year anniversary celebration and fireworks at City Park.
Councilmember Poppaw reported on the current exhibits at the newly renovated Lincoln Center.
Mayor Weitkunat announced the current vacancies on City boards and commissions and encouraged
citizens to apply.
Ordinance No. 092, 2012,
Amending Certain Provisions of the Land Use Code to Afford Better Regulation of Multi -
Family, High Density Housing Developments, Adopted as Amended on Second Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
At City Council's direction, the Community Development and Neighborhood Services (CDNS)
department analyzed what immediate measures Council could consider to help mitigate adverse
impacts ofcurrent andfuture multi family housing in areas adjacent to single family neighborhoods.
This Ordinance, adopted 6-1 (Kottwitz) on First Reading on September 4, 2012 will:
1. require Medium Density Mixed -Use Neighborhood (MMN) land use and development
standards for all multi family projects, particularly outside the Transit -Oriented
Development (TOD) Overlay Zone.
2. modify the Neighborhood Commercial zone district to ensure a significant commercial
component.
3. require an operation, management and security studyforlarger multi -Jam ilydevelopments.
"
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September 18, 2012
Laurie Kadrich, Community Development and Neighborhood Services Director, discussed feedback
received from the Planning and Zoning Board and other groups regarding these proposed changes.
The Planning and Zoning Board did not recommend approval on Second Reading.
Troy Jones, Affordable Housing Board member; stated the Affordable Housing Board would like
to see the Second Reading of this item postponed for further consideration.
Jeffery Martin, Fort Collins Board of Realtors President, supported the proposed changes but asked
that there be some consideration of a floor provision for the security, operation, and management
plan requirements, and some consideration of possible exemptions for affordable housing
developments and those with a majority of owner -occupied units.
Joel Rovnak, 1308 Bennett Road, supported the Ordinance and stated it is a product of the Student
Housing Action Plan process and reflects compromise.
Sean Dougherty, 1344 Catalpa, Fort Collins Board of Realtors, expressed general support for the
Ordinance, but expressed concern regarding the expedited process and suggested exemptions for
affordable housing and small developments.
Eric Sutherland, 3520 Golden Currant, opposed the expedited process.
Clint Skutchan, Fort Collins Board of Realtors Chief Executive Officer, expressed general support
for the Ordinance, but expressed concern regarding the expedited process. He requested
consideration of exemptions for affordable housing and a possible postponement to allow
consideration by the Affordable Housing Board.
Mayor Weitkunat asked that staff define multi -family housing as it applied in this case. Ted
Shepard, Chief Planner, replied the definition will not change - multi -family housing refers to a
three-plez or greater and there is no ownership or student aspect to the definition.
Councilmember Manvel asked if the twenty-five foot setback would apply to a three or four-plex
being built next to a residential dwelling. Shepard replied geographic specific zone standards of the
Land Use Code will override these citywide standards.
Mayor Weitkunat asked about the removal of the fifty unit minimum. Kadrich replied that change
was suggested by the Planning and Zoning Board through a work session. It was also suggested by
Council and citizen groups.
Councilmember Manvel clarified that the idea of having a specific threshold was rejected; however;
the flexibility to have extensive security and more management for larger projects does exist.
Councilmember Troxell requested a summary of the Planning and Zoning Board discussion.
Kadrich replied the Board considered whether or not to recommend this phase one of the Land Use
Code proposals for adoption. She stated the first motion stated the Board "cannot support Land Use
Issue 920 unless and until more extensive stakeholder and public outreach is conducted, and a
thorough analysis is conducted and evaluated, we cannot support this Land Use Code change. We
are not convinced it provides an actual solution to the problems associated to multi -family housing
projects that we have reviewed." Kadrich stated that motion was approved unanimously and that
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September 18, 2012
the Board went on to discuss the NC zone change. That motion was approved by a vote of 4-2. The
third motion was that the Board cannot support the Land Use Code Issue 924, which is the
operations, management, and security study "unless and until more extensive stakeholder and public
outreach is conducted and a subsequent thorough analysis is performed and evaluated, we cannot
support this specific proposed Land Use change. And in this case, we are not convinced this
proposal is appropriate for inclusion in the Land Use Code.". That motion was approved
unanimously by the Planning and Zoning Board.
Councilmember Manvel requested staff input on whether or not this change does belong in the Land
Use Code. Kadrich replied it could be part of the City Code and governed through Neighborhood
Services. The staff recommendation was specific to comments received from the public.
Mayor Weitkunat asked if most of the public outreach had occurred in neighborhoods around and
near CSU. Kadrich replied she was uncertain; however, most of the written input received did come
from the West Central Neighborhood area, as well as around campus.
Mayor Weitkunat questioned whether or not the management and security requirement is necessary
as a universal code change that has merit citywide.
Councilmember Kottwitz asked if the fifty unit minimum was originally in both the security study
portion and the setback portion. Shepard replied it was just in the operations, management, and
security plan provision.
Councilmember Kottwitz asked if staff has recommended any changes between First and Second
Reading. Kadrich replied it is not too late to delay Second Reading or separate out part of the
proposed changes. She stated the Code does have provisions to make exemptions for affordable
housing.
Councilmember Kottwitz asked if the process had been expedited due to a request by some
Councilmembers. Kadrich replied in the affirmative.
Councilmember Manvel made a motion to postpone Second Reading of Ordinance No. 092, for two
weeks in order to obtain additional input from the Affordable Housing Board. The motion was not
seconded.
Councilmember Manvel made a motion, seconded by Mayor Pro Tent Ohlson, to adopt Ordinance
No. 092, 2012, on Second Reading.
Councilmember Kottwitz stated she did not second the motion for postponement as she did not want
the two week limit.
Mayor Pro Tern Ohlson stated he does not care if the operation, management and security study is
in the Code as long as it works the way it should and offers protection to existing single-family
neighborhoods. He stated he would not support attempts to exempt affordable housing from these
standards, given the definition of affordable housing is not specific enough. Additionally, the Code
already provides the ability for affordable housing projects to be exempted from certain projects.
He noted Council did'not adopt a moratorium on these types of projects in exchange for working
at a more expedited pace on regulations.
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September 18, 2012
Mayor Weitkunat made a motion, seconded by Mayor Pro Tem Ohlson, to amend Ordinance No.
092, 2012, by striking section 3.8.29(G), in reference to the multi -family development standards for
operational management and security plan.
Mayor Weitkunat stated she would like to see that aspect placed in the Student Housing Action Plan
to come forward in another venue.
Councilmember Manvel stated he would support the requirement coming back in another format.
The vote on the motion to amend was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Troxell,
Ohlson and Poppaw. Nays: None.
THE MOTION CARRIED.
Councilmember Troxell stated he would not support the motion to adopt the Ordinance as further
discussion should occur with stakeholders and the public.
Councilmember Manvel expressed appreciation for the Planning and Zoning Board comments but
noted most of the Board's objections were related to process concerns.
Councilmember Kottwitz stated she would not support the motion and disagreed that this process
is an alternative to a moratorium.
Mayor Pro Tern Ohlson noted staff always has the ability to bring forward suggested changes should
they become necessary.
Councilmember Troxell stated he does not want staff to be bound to artificial timelines.
Mayor Pro Tern Ohlson noted the timeline is related to Council's work plan.
Mayor Weitkunat stated she would support the motion as this is a good first step to begin the process
of correcting what is happening in our neighborhoods.
The vote on the motion to adopt Ordinance No. 092, 2012, as amended, was as follows: Yeas:
Weitkunat, Manvel, Ohlson and Poppaw. Nays: Troxell and Kottwitz.
THE MOTION CARRIED.
Ordinance No. 102, 2012,
Authorizing and Approving the Execution and Delivery by the City of a Site and
Improvement Lease and a Lease Purchase Agreement and Related Documents, Concerning
the Leasing by the City of Open Space and Natural Areas, a Deicing Materials Storage
Facility and a Centralized Police Services Building, to Refinance the City's 2004 Lease
Agreement at a Lower Interest Rate; Ratifying Action Previously Taken; and Providing
Other Matters Related Thereto. Adopted on First Reading
The following is staff s memorandum for this item.
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September 18, 2012
"EXECUTIVE SUMMARY
Circumstances are favorable to refinance the 2004 Certificates of Participation (COPS). Bank of
America has proposed terms for the new debt that result in a net present value savings of $4.8
million and equates to 13.4% of the refunded principal. The 2012 debt will mature in the same time
frames as before. Police through 2026, Natural Areas through 2019, and Transportation through
2024.
BACKGROUND /DISCUSSION
In 2004 COPS of S48.7 million were issued to acquire open space areas that included Soapstone,
Bobcat Ridge, Andrijeski, and Coyote Ridge: construct a new police facility; and construct a
sand/salt storage facility for the streets department. Debt payments go through June 1, 2026. The
average coupon interest on the remaining 2004 certificates is 5.19%.
Although market rates have been low for some time now, refinancing was delayed because the 2004
debt is not callable until June 1, 2014. An escrow account will continue to make payments on the
2004 COP's until the call date.
Bank ofAmerica submitted the best and lowest proposal amongfour proposals received through a
Request for Proposal process. Terms are 1.82% through 2026, callable in 5 years, and a step down
payment structure relating to each project that is similar to the existing debt service schedule.
The settlement date for issuing the refunding certificates is expected to occur before October 18,
2012.
Supporting the City in this financing deal are the law firm gfSherman & Howard and the f nancial
consulting firm of BLX
FINANCIAL /ECONOMIC IMPACTS
The net cash savings will be about S5.9 million with a net present value of S4.8 million that is 13.4%
of the refunded principal. In 2013 the savings will be approximately S648, 000.
Refunding Impact to 2013 Budget
Original
Revised
Change
2013
2013
Inc(Dec)
General Fund $
1,478,531
$ 1,881,729
$ 403,198
Capital Expansion Fund
350,090
350,090
-
Capital Project Fund
750,192
-
(750,192)
Police Facility
2,578,813
2,231,819
(346,994)
Natural Areas Fund
1,396,131 '
1,126,674
(269,458)
Transportation Fund
136,919
105,860
(31,059)
$
4,111,863
$ 3,464,352
$ (647,510)
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September 18, 2012
Mike Beckstead, Chief Financial Officer, stated this is a good news, cost savings item.
John Voss, Controller/Assistant Financial Officer, stated the term "certificate of participation" is a
type of debt and discussed the items funded by it beginning in 2004. Interest rates are now favorable
for refinancing and this refinance will result in cash savings of $5.9 million.
Mayor Pro Tem Ohlson asked if the $403,198 has already been factored into the budget. Beckstead
replied it has not yet been factored into the budget and will need to be dealt with in 20I J-2014.
Mayor Pro Tern Ohlson expressed concern that these types of costs always manage to be covered
whereas certain expenditures desired for public improvements by Council cannot always be funded.
Beckstead noted this refinance will result in $4.4 million in savings to the General Fund over the
next fourteen years; therefore, reserves can be used in the next four years with the security that they
can be replenished over the final ten years of this financing term. Additionally, sales tax revenues
have been higher than anticipated.
Mayor Pro Tern Ohlson commended staff for work on the item.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. 102, 2012, on First Reading. Yeas: Weitkunat, ManveL Kottwitz, Ohlson, Poppaw and Troxell.
Nays: none. ,
THE MOTION CARRIED.
Public Hearing on the 2013-2014 Recommended
Biennial Bud et for the City of Fort Collins Hcarin2 was Held
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
This is the first official public hearing on the City Manager's 2013-2014 Recommended Biennial
Budget.for the City of Fort Collins. The purpose of this public hearing is to gather public input on
the 2013-2014 budget.
In an effort to receive further public input, a second public hearing is scheduled for the October 2,
2012 Council meeting. Public input will also be taken during the budget adoption meetings on
Tuesday, October 16 and Tuesday, November 20, 2012 at 6: 00 p.m. in the Council Chambers.
The City Manager's 2013-2014 Recommended Budget can be reviewed at the Main Library, the
Harmony Branch Library, Council Tree Library,. or the City Clerk's Office. The recommended
budget can also be viewed online at www.fc9ov.com/budget. "
Mayor Weitkunat noted this is a public hearing and stated additional hearings will be held October
2, 16, and November 20.
Edye Slovick, 5706 Wingfoot Drive, supported the addition of Dial -a -Ride service in southeast Fort
Collins.
September 18, 2012
Ellen Lirley, 3201 Sharps Street, supported the items that have been recommended for funding
relating to the Senior Center and requested $1 million in funding for the Senior Center expansion
from the Building Community Choices funds.
Joan Black, 1206 Canvasback Court, supported funding for Dial -a -Ride and Transfort in southeast
Fort Collins.
Sandy Gordon, 300 Remington, supported funding for the Senior Center expansion.
Marjorie Morningstar, 2237 Dover Drive, supported funding for the Senior Center expansion and
requested $1 million in funding for the Senior Center expansion from the Building Community
Choices funds.
Deborah Flynn, Green Ride Colorado, supported funding for the ClimateWise program.
John Drigot, 3321 Snowbrush Court, Poudre Valley Health Systems Sustainability Coordinator.
supported funding for the ClimateWise program.
Linda Hopkins, 1809 Rangeview Drive, Senior Center Expansion Committee Chairperson,
supported funding for the Senior Center expansion and requested $1 million in funding for the
Senior Center expansion from the Building Community Choices funds.
Linda Gabel, 826 Blonde] Street, Senior Advisory Boardmember; supported funding for the Senior
Center expansion and requested $1 million in funding for the Senior Center expansion from the
Building Community Choices funds.
Kevin Cross, 300 Peterson, Fort Collins Sustainability Group, supported funding for several portions
of the Environmental Health portion of the budget. He requested that Council consider funding the
Landscape Transform to Xeriscape offer.
Bob Overbeck, Fort Collins resident, supported funding for the Senior Center expansion and for arts
and culture programs, specifically the Arts Incubator of the Rockies.
Rick Cullen, Fort Collins resident, supported funding for solar programs.
Eric Sutherland, 3520 Golden Currant, supported funding for transit and Transfort.
Mayor Pro Tern Ohlson noted the majority of Council will work hard to,fill the $500,000 gap for
the Senior Center.
Councilmember Kottwitz asked that staff follow-up regarding southeast service of Dial -a -Ride prior
to the final work session on the budget.
Councilmember Troxell stated the Arts Incubator of the Rockies is currently unfunded and stated
he would like funding considered.
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September 18, 2012
The meeting adjourned at 8:43 p.m.
ATTEST:
City Clerk
Adjournment
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