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HomeMy WebLinkAboutMINUTES-04/17/2012-RegularApril 17, 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, April 17, 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: Horak, Manvel, Ohlson, Poppaw, Troxell and Weikunat. Councilmembers Absent: Kottwitz Staff Members Present: Atteberry, Harris, Roy.. Agenda Review City Manager Atteberry stated the order of the agenda has been changed and Item #23 Consideration of the Appeal of the Planning and Zoning Board's February 16, 2012 Denial of Two Stand -Alone Modifications Concerning the Proposed Remington Annex located at 705, 711 and 715 Remington Street will be considered after Items #24 and 25. Citizen Participation Karen Miller, 4407 Hummingbird Drive, suggested Hughes Stadium could be refurbished rather than CSU constructing a new stadium. Judy Rodriguez, 525 East Stuart, asked about the future plans for Hughes Stadium. John Hurst, PO Box 999, discussed Resolution 2006-126 regarding Front Range Village and stated the public should be informed of the PIF via placards at registers. Chester McQueary, 613 Princeton Road, opposed the proposed on -campus stadium at CSU. Chase Eckert, Associated Students of Colorado State University Governmental Affairs Director, discussed the increase in Transfort ridership for CSU students. Carl Patton, 619 Skysail Lane, opposed the proposed. on -campus stadium at CSU and suggested Council read a statement compiled by the SOS Hughes group. Doug Brobst, 1625 Independence Road, opposed the proposed on -campus stadium at CSU and questioned the future of Hughes Stadium. 337 April 17, 2012 Sandy Lemburg, 6851 Poudre Canyon, opposed the proposed on -campus stadium at CSU and suggested Council pass a non -binding resolution opposing the stadium. Ross Cunniff, 2267 Clydesdale Drive, requested that Council question Dr. Frank about CSU's plans for additional student housing and the way in which those plans may be affected by the proposed stadium. Thomas Sneider, 416 West Swallow, urged Council to ask Dr. Frank if he is willing to make a commitment that private funding will pay for the impact of the stadium on City infrastructure. Linda Vrooman, 912 Cheyenne Drive, stated a representative from IKON stated the City will not be responsible for funding infrastructure improvements. Citizen Participation Follow-up Mayor Weitkunat stated Council has a meeting next Tuesday, April 24, with Dr. Frank, CSU President. _ -- - City Manager Atteberry stated staff will review the possibility of a placard requirement at Front Range Village. Councilmember Troxell thanked Mr. Eckert for his service at ASCSU and recognized CSU students for the positive impact they have on the community. City Manager Atteberry expressed appreciation for Mr. Eckert and the ASCSU group. CONSENT CALENDAR 6. Consideration and Approval of the Minutes of the March 6 and March 20, 2012, Regular Meetings. 7. Second Reading of Ordinance No. 025, 2012, Appropriating Prior Year Reserves. This Ordinance, unanimously adopted on First Reading on April 3, 2012, appropriates prior year's reserves for expenditures authorized in 2011 by Council but which could not be completed by the end of 2011. This Ordinance was amended on First Reading to remove the request of $145,500 for a Transportation Utility Analysis. 8. Second Reading of Ordinance No. 026, 2012, Appropriating Prior Year Reserves in the Natural Areas Fund for the Purpose of Providing Natural Areas Programming Not Included in the 2012 Adopted City Budget. This Ordinance, unanimously adopted on First Reading on April 3, 2012, appropriates prior year reserves in the Natural Areas Fund for the purpose of land conservation, construction of public improvements, restoration of wildlife habitat and other natural areas program needs to benefit the citizens of Fort Collins. 338, April 17, 2012 9. Second Reading of Ordinance No. 027 2012 Appropriating Unanticipated Revenue in the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Exhibits Project. Ordinance No. 027, 2012, unanimously adopted on First Reading on April 3, 2012, appropriates Non -Profit Partner revenue of $225,000 into the Museum Exhibit Capital Project. 10. Second Reading of Ordinance No. 029, 2012, Authorizing the Purchasing_ Agent to Enter into an Agreement for the Financier by Lease -Purchase of Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. This Ordinance, unanimously adopted on First Reading on April 3, 2012, authorizes the Purchasing Agent to enter into a lease -purchase financing agreement with Pinnacle Public Finance at 2.15% interest rate. The cost of the items to be lease -purchased is $1,579,444. Payments at the 2.15% interest rate will not exceed $167,010 in 2012. Money for 2012 lease -purchase payments is included in the 2012 budget.- The effect of the debt position for the purpose of financial rating of the City will be to raise the total City debt by 1.03%. A competitive process was used to select Pinnacle Public Finance for this lease. Staff believes acceptance of this lease rate is in the City's best interest. 11. Second Reading of Ordinance No. 030 2012 Amending Chapters 2 Through 27 of the City Code to Update Terminology and Titles Used in Various Code Provisions and to Eliminate Outdated References. This Ordinance, unanimously adopted on First Reading on April 3, 2012, updates titles and terminology used in the City Code to correspond with current City organizational titles and department names. No substantive changes are included in the Ordinance. In addition, certain terminology used in the Code, such as the term "boarding house," is no longer consistent with corresponding references in other portions of the Code. These terms are updated in the Ordinance. - 12. Second Reading of Ordinance No. 031, 2012, Authorizing_ Amendments to a Conservation Easement Held by the City on the Hansen Property In July 2011, the First National Bank of Omaha foreclosed on Parcel 11(south parcel) of the Hansen Ranch property, on which the City of Fort Collins Natural Areas Department (NAD) holds a conservation easement (CE). NAD also holds a conservation easement on Parcel I (north parcel). Once the Bank took possession of Parcel II, Ric and Myrna Hansen, who reside on Parcel I, denied the Bank access through the existing driveway that bisects their parcel and serves as the only access to Parcel II. This Ordinance, unanimously adopted on First Reading on April 3, 2012, authorizes an amendment to the easement to grant permission for a driveway to be constructed to access Parcel II, while allowing the NAD to make needed corrections and updates to the easement deed. In return, the development right for a secondary residence on the Parcel II will be extinguished. The City will also take this opportunity to amend language in the CE to increase its oversight and enforcement capability on the CE and update some of the terms of the CE. 339 April 17, 2012 13. Second Reading of Ordinance No. 032, 2012, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the North College Avenue Roadway Improvement Project - Vine to Conifer. The North College Avenue Improvement Project — Vine to Conifer is a road improvement project that extends from Vine Drive on the south to the intersection of Hickory Street on the north. In 2010, Ordinance No. 085, 2010, authorized the use of eminent domain proceedings to acquire the necessary property interests for the Project. All property interests were secured for construction to move forward. While relocating existing utilities for the upcoming road work, City staff determined that additional right-of-way area containing approximately .011 acres is needed on one parcel to accommodate a realignment of a planned pedestrian bridge. City staff has contacted the affected property owner who is open to working with the City on the new acquisition. Since the Project is located on a Colorado Department of Transportation (CDOT) facility and the Project is partially funded by CDOT, this acquisition must follow the same eminent domain procedures_ used in the previous acquisitions for the Project. This Ordinance was unanimously adopted on First Reading on April 3, 2012. 14. Resolution 2012-023 Authorizing the Lease of City -Owned Property at 812 North Shields for Up to Two Years. In 2000, the City purchased the property located at 812 North Shields as part of the Operations Services Master Plan. Leasing of the property has been continual from the time of purchase. Staff recommends that the City continue to lease this site. 15. Resolution 2012-024 Authorizing the Execution of an Intergovernmental A-zreement Between the City and the Colorado Department of Transportation for the Maintenance of Traffic Signals Within the Fort Collins Growth Management Area. The City has a long-standing contract with the -Colorado Department of Transportation (CDOT) to maintain traffic control devices within the City's Growth Management Area. This update increases the amount that CDOT pays the City for maintenance of signs and pavement markings to more accurately reflect actual costs incurred by the City. Under this new contract, the amount paid to the City by CDOT will increase from $193,440 to $217,568 annually. The contract is for 5 years. 16. Resolution 2012-025 Making Findings of Fact Regarding the Appeal of the February 16, 2012, Planning and Zoning Board - Denials of Two Stand-alone Modifications Concerning the Proposed Carriage House Apartments Located at 1305 to 1319 South Shields Street. On March 1, 2012, an appeal of the February 16, 2012 decision of the Planning and Zoning Board to deny the Carriage House Apartments, Modification of Standards was filed by Charles A. Bailey with Catamount Properties, Ltd. On April 3, 2012, City Council voted to uphold the decision of the Planning and Zoning Board. In order to complete the record regarding this appeal, the Council should adopt a Resolution making findings of fact and finalizing its decision on the appeal. 340 April 17, 2012 17. Resolution 2012-026 Making an Appointment to the Fort Collins Housing Authority Board of Commissioners. Councilmember Lisa Poppaw's term on the Fort Collins Housing Authority expires on May 1, 2012. Councilmember Poppaw has expressed a desire to be reappointed. This Resolution will reappoint Councilmember Poppaw to the Fort Collins Housing Authority Board of Commissioners until May 1, 2017. 18. Resolution 2012-027 Making an to the Parks and Recreation Board. A vacancy currently exists on the Parks and Recreation Board due to the resignation of Selena Paulsen. Mayor Pro Tem Kelly Ohlson and Councilmember Aislinn Kottwitz reviewed the applications on file. The interview team is recommending Todd Galbate to fill the vacancy with a term to begin immediately and set to expire on December 31, 2015. ***END CONSENT*** Ordinances on Second Reading were read by title by Interim City Clerk Hams. 7. Second Reading of Ordinance No. 025, 2012, Appropriating Prior Year Reserves. 8. Second Reading of Ordinance No. 026, 2012, Appropriating Prior Year Reserves in the Natural Areas Fund for the Purpose of Providing Natural Areas Programming Not Included in the 2012 Adopted City Budget. 9. Second Reading of Ordinance No. 027, 2012, Appropriating Unanticipated Revenue in the Capital Projects Fund for the Fort Collins Museum/Discovery Science Center Exhibits Project. 10. Second Reading of Ordinance No. 029, 2012, Authorizing the Purchasing Agent to Enter into an Agreernerif for the Financing by Lease -Purchase of -Vehicles and Equipment and Appropriating the Amount Needed for Such Purpose. 11. Second Reading of Ordinance No. 030, 2012, Amending Chapters 2 Through 27 of the City Code to Update Terminology and Titles Used in Various Code Provisions and to Eliminate Outdated References. 12. Second Reading of Ordinance No. 031, 2012, Authorizing Amendments to a Conservation Easement Held by the City on the Hansen Property. 13. Second Reading of Ordinance No. 032, 2012, Authorizing the Acquisition by Eminent Domain Proceedings of Certain Lands Necessary to Construct Public Improvements in Connection with the North College Avenue Roadway Improvement Project - Vine to Conifer. 26. Second Reading of Ordinance No. 028, 2012, Appropriating General Fund Reserves for the Purpose of Rebating Use Tax to Hewlett Packard Company in Support of the Building Six Annex Expansion in Accordance with Resolution 2010-029. 341 April 17, 2012 Ordinances on First Reading were read by title by Interim City Clerk Harris. 24. First Reading of Ordinance No. 034, 2012, Amending Section 26-464 of the City Code to Establish a Medical Assistance Program for Electric Customers. 25. First Reading of Ordinance No. 033, 2012, Amending Chapter 26 of the City Code to Allow for On -Bill Utility Financing. Councilmember Manvel made a motion, seconded by Councilmember Horak, to adopt and approve all items on the Consent Calendar. Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Ordinance No. 034, 2012, Amending Section 26-464 of the City Code to Establish a Medical Assistance. Program for Electric Customers, Option C Adopted on -First Reading The following is staff s memorandum for this item. "EXECUTIVE SUM11L4RY The Medical Assistance Program is apilotprogram which is aimed atprovidingfinancial assistance for customers who are in the tiered residential electric rate class and who have electric medical equipment in their home. Staff is presenting three options for consideration by Council. Fort Collins Utilities is seeking direction on the program details and approval from the City Council to implement this program. Specifically, staff is asking City Council to determine the scope of the program and to adopt the Ordinance allowing the establishment of the program. The program is focused on reducing the cost associated with the additional electrical needs of those with life support equipment in their household. Options for other medical equipment and air conditioning needed to improve the quality of life for those with immune compromising diagnoses are also being presented for consideration. • Option A limits coverage to electrical life support and mobility durable medical equipment. The maximum discount is $12.50 per month. Option B extends coverage to all electrical durable medical equipment. The maximum discount is $12.50 per month. Option C extends coverage to all electrical durable medical equipment and includes a discount for customers whose medical needs require air conditioning. The maximum discount during non -summer months is $12.50 per month. The maximum discount during summer months is $41.73 per month. The key differences between the three options are shown in the Ordinance in bold face type. 342 April 17, 2012 Fort Collins Utilities is recommending the implementation of Option C with an income limitation as a pilotprogram to be implemented by June 1, 2012 when the higher seasonal tiered rates become effective. Based on 2012 participation and costs of the program for the remainder of the year, the program can be adjusted prior to the 2013 cooling season for any necessary changes. BACKGROUND /DISCUSSION On December 6, 2011, Council adopted Ordinance No. 166, 2011, increasing the Residential Class Electric Rates. The new rates support the conservation values of the City through a tiered rate. structure and include a seasonal variation to reflect the higher cost of energy during the summer. In the discussion leading up to the vote to adopt the Ordinance, Council requested Fort Collins Utilities to develop a program so as not to impose any additional economic hardship on those customers who may have sufficient monthly energy usage attributed to medical equipment to be pushed into the second or third tiers. The Pilot Medical Assistance Program is the result of that request. The -program could include an income limitation to focus the program on those most in need of economic assistance. It could also include a component with an air conditioning allowance during the cooling season (June — August) for those with medical conditions adversely affected by hotter summer temperatures. Research indicated there are a number of discount programs for customers with medical issues around the country. Comparisons of the programs in the western region of the United States served as a basis for the development of this program. Please see Attachment 2 for a table comparing the programs at other utilities. In addition, outreach for this program has involved review by the Energy Board and meetings with patient advocacy groups and physicians. In determining a reasonable household income ceiling, the Area Median Income (AMI) used by the Federal Housing Authority provided an independent source of income information based on the number of people in a household. The AMI is specifically formulated for Larimer County and factors in" local costs of living. 'Without more detailed information than the median income, it was necessary to take some portion of this AMI as.the program is designed to help those customers who will seethe tiered rate increase as a substantial economic hardship. The income table included in the draft application shows the income ceiling as 60% of the Larimer County AMI. This level of income is close to 185% of the federal poverty level and is higher than that used for many other income -based social assistance programs. A certain level offraud prevention is recommended for this program. The application requires the customer to sign an affidavit allowing for Fort Collins Utilities to request documentation to verify income qualifications, if the pilot program has an income ceiling. The application also requires a signed affidavit from a physician verifying the need for durable medical equipment which requires electricity or the need for a temperature controlled household for those customers with certain immune compromising diagnoses. The lawful presence affidavit is required by Colorado state law because participation in the program is considered a local public benefit. An appeal process will be included in the program for those customers who are experiencing a financial hardship due to their medical needs or whose medical condition requires air conditioning, yet fall outside the scope of the program. The Utilities Executive Director will have the authority 343 April 17, 2012 to consult a medical professional as'a hearing officer for medical appeals of a decision that any electrical medical equipment does not meet established criteria. The Utilities Executive Director will have the authority to allow an exception to the established financial criteria. Staff is providing Council with three. options for the program. Attachment 1—Program Options summarizes the options, including the pros and cons and the associated costs of each option. Based on City Council 's direction and adoption of the Ordinance on First Reading, staff will return with the specific program for Council to, consider adopting on Second Reading on May 1. If adopted, staff anticipates implementation of the program before June 2012. FINANCIAL /ECONOMIC IMPACTS It is difficult to estimate the anticipated enrollment in this program and the enrollment depends on what is included in the adopted program. This is because the program may potentially be more comprehensive than other programs reviewed by staff. In addition, data on the prevalence of certain diseases in Fort Collins is not available. For these reasons it is recommended that we consider this program to be a pilot program from June 2012 through May 2013. Once the program has been implemented, enrollment and costs will be better understood so any changes necessary to continue the program or better meet these customers' needs can be brought back to City Council by the second quarter of 2013. The revenue shortfall in 2012 associated with this program will be accommodated within the Light & Power Reserves for 2012 and 2013. While it is hard to estimate the economic impacts of a new program, this program is not increasing electric rates for customers at this time and is providing a reduction' for the eligible customers. Thus, it is not expected that this program will have any substantial economic impact on the community as a whole but it will provide some relief for customers participating in the program. It is expected that the savings seen by these customers will be spent elsewhere within the local community. —ENVIRONMENTAL IMPACTS. - This program has minimal negative environmental impacts. This program in conjunction with the new tiered rate structure has the potential to help customers be more aware of their personal energy usage and may be an opportunity in the future to expand on energy efficiency education programs. " Lance Smith, Utilities Strategic Financial Planning Manager, stated this item was postponed from March 6 to allow for additional community outreach. Since the initial discussion before Council, staff has spoken with citizens, physicians, and patient advocacy groups, and has presented the item to the Energy Board and Senior Advisory Board. He discussed the three options available for Council consideration and stated staff is recommending this program proceed as a pilot program to be reviewed in one year. Ross Cunniff, Energy Board Chairperson, stated the Energy Board supported Option C with an income limitation. Dolores Kueffler, Fort Collins Program Manager for the National Multiple Sclerosis Society, supported Option C. ME April 17, 2012 Eric Sutherland, 3520 Golden Currant, opposed the wording of the options. Mayor Weitkunat noted Council received a revised Ordinance which includes two provisions that define the terms electrical durable medical equipment and healthcare common procedure coding system. Councilmember Manvel asked why the discounts are being given at the bottom rather than at the top tier. Smith replied the recommended program gives all customers the same incentive to conserve. Councilmember Troxell asked about the cost estimates for implementing the pilot program. Patty Bigner, Utilities Customer Relations Manager, replied this program will be absorbed into the existing customer service function and it is not anticipated that the program will require additional staffing or cost. Councilmember Manvel suggested deleting or changing the wording regarding tiered rates on the program application form. City Attorney Roy suggested referencing the general rate increase as the justification for the program rather than the"tiered rate structure. Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Option C of Ordinance No. 034, 2012, as amended by removing the reference to the tiered rates in the second Whereas clause, on First Reading. Councilmember Troxell stated he does not support the tiered rate structure and can therefore not support the item. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw and Horak. Nays: Troxell. THE MOTION CARRIED. Ordinance No. 033, 2012, Amending Chapter 26 of the City Code to Allow for On -Bill Utility Financing, Adopted as Amended on First Reading The following is staff s memorandum for this item. "EXECUTIVE SUMMARY This Ordinance revises language in Chapter 26 of the City Code to enable Utilities to provide financing and on -bill servicing of loans for energy efficiency, water efficiency and renewable energy projects. Utilities is proposing to pilot a new program element for 2012, providing on -bill financing for residential customers participating in the Home Efficiency Program, the Solar Rebate Program and for customers who need to repair or replace a water supply line. The primary goal of the on -bill financing pilot is to facilitate more efficiency upgrades in the residential sector. These upgrades reduce our need forfuture energy resources, reduce our environmental footprint, promote local economic health by investing in our built environment and improve the health, comfort and safety of our homes. 345 April 17, 2012 Council approved a budget exception in fall 201 ] for the 2012 budget to provide $300, 000 for on - bill financing, subject to bringing the necessary changes in the City Code and additional details of the pilot program. Funding for subsequent years will be addressed through the Budgeting for Outcomes process. BACKGROUND /DISCUSSION Policy Alignment The proposed pilot On -Bill Utility Financing Program supports the policy goals of Plan Fort Collins, the Climate Action Plan, Energy Policy and Water Conservation Plan. The Program will be a valuable addition to Utilities' efficiency and renewable energy programs which foster sustainability through energy and water use reductions, local contractors and investment in the built environment and improved home comfort, health and safety. Specific Council Policy references: Development of On -Bill Financing is a -near -term priority action item (#35) within Plan Fort - - Collins. EnergyPolicy objectives which align with On -bill Financing include: o Promote sustainable practices in homes and businesses by supporting increased efficiency in existing buildings. o Strive to invest climate improvement monies locally in programs that have long-term positive impacts. History Fort Collins Utilities has offered the Zero Interest Loan Program (ZILCH) since the early 1980s. The Program was very successful for many years. However, in recent years. the Program saw relatively little activity. The recent national mortgage crisis resulted in changes to the requirements for local government entities to be able to originate loans for home improvements'. -As a result, the Zero Interest Loan Program was suspended in early 2011. The Program restarted in fall 2011 under a model where the loans are unsecured. The On -Bill Financing Program will supersede the energy and water efficiency aspects of the Zero Interest Loan Program. The air quality related aspects of the Zero Interest Loan Program, with funding from the Environmental Services Department, will be continued under a revised administrative model that is currently being developed. Home Efficiency Program Description Utilities began offering the Home Efficiency Program to customers in 2010, with a goal ofproviding a comprehensive and bestpractices approach to improving the performance of existing homes. The Home Efficiency Program elements guide homeowners with: Low-cost audits which prioritize home improvement measures to address the barrier of "what to do " Participating contractor lists which address the barrier of "who to call " Rebates which partially address the 'first cost" barrier 346 April 17, 2012 Installation standards and verification which address the barrier of "is it done right" Since January 2010, the Home Efficiency Program has: • Completed over 1,100 audits • Supported efficiency improvement projects in over 375 homes Trained over 100 individuals from 40 contracting companies • Received ratings from customers of over 95% "extremely satisfied" with the audit, contractor and rebate aspects of the Program The On -Bill Financing Program will be integrated into the Home Efficiency Program and provide the financing mechanism for homeowners to implement recommendations from the audit using the established contractors and installation standards of the Home Efficiency Program. Pilot Program Summary The objective of the On -Bill Financing Program element is to increase the number of residential efficiency and renewable energy projects by addressing the up front cost barrier via on -bill ,financing. Key aspects of the Program include: Simple application and approval processes Financing 100% ofproject costs Repayment of loans on the utility bill Specific elements of the Program include: • Eligible properties are single family homes and townhomes, both owner occupied and rental properties with the owner as applicant. • Project types are based on existing definitions within utility programs and include energy efficiency (e.g., insulation, furnace; AC, windows), water supply line replacement/repairand renewable energy (e.g., solar PV and wind) - • Direct Program zrpenses will be recovered via fees and interest rates • On -Bill Financing will replace the existing Zero Interest Loan Program. The proposed Program is based on selecting best practices from on -bill programs in Kansas, Kentucky, South Carolina and Oregon and loan parameters from a successful Fannie Mae and Pennsylvania energy improvement loan program. Together with the proven components of Fort Collins Home Efficiency Program, an On -Bill Financing Program element will further support customers who choose to improve the efficiency of their homes. . 347 April 17, 2012 Pilot Program Details Description Details Customer Energy projects — Utilities electric customer eligibility Water projects — Utilities water customer Project Home Efficiency Program eligibility 23 types ofprojects based on rebate categories http: //www.fcQov. com/utilities/residential/conserve/ener-U- e ciencv/home-e ciencv program/rebates Renewable energy rebate requirements • httv://www.fcgov.com/utilities/residential/conserve/renewables/solar- rebates Water supply line replacement/repair (similar to Zero Interest Loan Program) Not carried over from Zero Interest Loan Program • Air quality projects, high efficiency clothes washers Rental Owner is applicant and note holder -" properties Owner options for payment mechanism: _= • Owner receives separate loan payment bill from Utilities, or • Tenants may make payments depending on lease type and if utility account is in tenant's name (requires notification and acknowledgement by tenant Applicant Varies with loan amount and credit score (2 tiers) qualification • Utility bill payment history • Credit score • Income Loan details Amount: $1,000 to $15,000 Term: 3 to 10 years Interest: prime plus2-5% Application fee ($25) Ori ination ee ($150 Risk Chapter 26 utility service —permanent lien and disconnect provisions mitigation Recorded lien (provides notification for title search) and security Loan qualification track record Payments Payments on utility bill. and Pavoff Pavoff on loan completion or propertv sale Pilot Program Administration The pilot program will be administered collaboratively by Utilities staff and a third party (to be selected). Due to the state and federal requirements related to mortgage origination, Utilities will seek a third party to complete several of the steps in the loan process. The table below represents a simple overview ofsteps and likely split of responsibilities between Utilities and the third party. 348 April 17, 2012 Loan Process Responsible Party Utilities 3rd Parry Efficiency Audit required X Application: project approval based on preliminary rebate application and contractor estimate X X Application: Bill payment history, credit score, income X X Project verification X Loan origination X Contractor payment X Set up loan within billing system X Recording of obligation X Loan payment servicing X Pilot Program: Next Steps Utilities has several tasks that need to be completed prior to being able to offer the pilot On -Bill Financing Program to customers. The goal is to be ready to offer this service to customers by June 1. These steps include: • Finalize testing of billing system • DocumentTinalize internal business processes and 3rd party resources • Document accounting procedures • Integrate financing options with existing Home Efficiency Program outreach and marketing plans On -bill financing has great potential to increase efficiency and renewable energy projects in the community. It is the intent of this 2012 pilot program to prove the concept in Fort Collins with a limited scope ofbuilding, project types and available funds. Future expansion of the Program could include the small commercial sector and additional projects types (e.g., expanded water conservation measures, both indoor and outdoor). The structure of the pilot, especially the loan parameters, is based on successful programs with extended track records. This structure was chosen because it is scalable, both in administrative and financial terms. The long-term vision is to attract capital to the loan fund so that the funding is not limited to what Fort Collins Utilities can provide, either through reserves or ratepayer funds. FINANCIAUECONOMIC IMPACTS Council approved a budget exception in fall 2011 to provide $300, 000 for on -bill financing, subject to bringing the necessary changes in City Code and additional details of the pilot program, which are presented here. This funding for the 2012 pilot is coming from Utilities reserves. Utilities expects to also have available approximately $30, 000 in remaining Zero Interest Loan funds from the 2012 adopted budget which can be utilized by the pilot program. Based on 2011 efficiency project rebate requests, it is expected that this level of funding will support 50 to 75 efficiency projects. 349 April 17, 2012 The On -Bill Financing Program element will add to the positive economic impact of the Home Efficiency Program. There are currently 40 participating contractors working with the Program, with over 100 individuals going through training for best practices installation standards. Retrofit projects in 2011 represented an investment (by homeowners, supported by rebates) ofapproximately $1.2 million towards improving existing home efficiency. Utility bill savings from improved homes also results in additional spending on local goods and services. ENVIRONMENTAL IMPACTS The On -Bill Financing Program supports the City's goals for energy use reduction through efficiency, carbon emissions reduction from improving the efficiency of the built environment and increasing local renewable energy production. Homes are seeing 5-50% (15% on average) energy reductions as a result of improvements made through the Home Efficiency Program. The opportunityfor on -going participation in the Program is many thousands of homes. The On -Bill Financing Program is expected to be a very effective approach to reaching these homes in the coming years. The Home Efficiency Program also directly addresses indoor environmental air quality. The audit, installation standards and project verification testing 'specifically address combustion safety of natural gas appliances and educate homeowners on other aspects of indoor air quality. " Mike Beckstead, Chief Financial Officer, commended John Phelan, Utilities Energy Services Manager, and Jessica Ping -Small, Sales Tax Manager, for their work on the proposed program. He noted the detailed implementation work will occur following Council adoption. John Phelan, Utilities Energy Services Manager, stated Council previously appropriated $300,000 for an on -bill utility financing program, subject to staff returning with a proposed structure and details. Tonight's item will set the parameters of the proposed pilot program and make revisions to Chapter 26 of the City Code to establish financing and the servicing of loans as a utility service. Phelan detailed the specifics of the proposed program and noted the program will not be subsidized. Eric Sutherland, 3520 Golden Currant, suggested loans, not giveaways, should be subsidized. Ross Cunniff, Energy Board Chairperson, stated the Energy Board supported this program. Fred Kirsch, Fort Collins resident, Community for Sustainable Energy member, thanked staff for its work on the item and stated this will be an example for other programs throughout the state. Mayor Weitkunat requested that staff address the loan cap written into the document. Beckstead replied the loan cap is within the range of home equity loans and car loans. The range of 3% to 6% interest will not deter customers from using the program. Councilmember Manvel asked about the rate range. Beckstead replied the range was set for flexibility. Councilmember Manvel asked about the application and origination fees. Beckstead replied they will be used on a trial basis during the pilot program and can be revisited at its conclusion. Phelan 350 April 17, 2012 replied the application fee is a one-time payment and the origination fee can be included in the loan financing. Councilmember Troxell asked about cost estimates for the pilot year. Phelan replied the S300,000 in capital funding is expected to fund approximately 50 to 75 of the typical home efficiency improvement projects. Beckstead noted staff s commitment is to complete this pilot program, and potentially beyond, without adding any incremental resources to the program. Councilmember Troxell asked about the objectives and goals of the pilot program. Phelan replied staff would like to see a substantial increase in the number of projects. Mayor Weitkunat noted Council has received a revised version of the Ordinance. Councilmember Manvel made a motion, seconded by Councilmember Troxell,.to adopt Ordinance No. 033, 2012, as revised, on First Reading. Councilmembers Manvel and Troxell thanked Mr. Kirsch and other citizens for keeping this issue at the forefront. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. (Secretary's note: The Council took a brief recess at this point in the meeting.) Consideration of the Appeal of the Planning and Zoning Board's February 16, 2012 Denial of Two Stand -Alone Modifications Concerning the Proposed Remington Annex located at 705, 711 and 715 Remington Street. Planning and Zoning Board Decision Upheld The following is staff s memorandum for, this item. 1QEXECUTIVE SUMMARY In January 2012, the Appellants submitted five stand-alone Modifications of Standards requests to the Planning and Zoning Board; however, only two of these requests are the subject of this Notice of Appeal. One of the two modifications requests is relating to the Historic and Cultural Resources, General Standard in the Land Use Code (LUC) (Section 3.4.7(B)), regarding the preservation of structures deemed individually eligible for local landmark designation; and, regarding the preservation of structures that are officially designated on the National Register of Historic Places and/or the State Register of Historic Properties, and/or which are located within an officially designated historic district. The second modification request is for the relocation of a structure that is individually eligible for local landmark designation, and/or relocation of a structure that is designated on the National or State Registers, and/or relocation of a structure that is located within an officially designated historic district (Section 3.4.7(E)). The Appellants requested to redevelop the properties located at 705, 711 and 715 Remington Street by demolishing or relocating three existing single family residences located within the Laurel School National and State Register 351 April 17, 2012 Historic District, including one that is determined to be individually eligible for local landmark designation, and constructing one multi family building with 42 units in their place. On February 16, 2012, the Planning and Zoning Board considered five stand-alone Modification of Standard requests, including requested modifications to LUC Sections 3.4.7(B) and 3.4.7(E). After testimony from the applicants, the public and staff, the Planning and Zoning Board denied all five modifications of standards requests (5-1). On March 1, 2012, the Appellants filed a Notice of Appeal with the City Clerk's Office seeking redress of the action of the Planning and Zoning Board for two of these Modifications of Standard requests. The Appellants allege that the Planning and Zoning Board failed to conduct a fair hearing because it considered evidence that was substantially false and grossly misleading and failed to properly interpret the relevant provisions of the Land Use Code when denying the two stand-alone Modifications of Standards requests in question. BACKGROUND /DISCUSSION The Remington Annex Development project proposes to tear down the buildings and structures on three properties, at 705, 711, and 715 Remington Street. All three properties are located within the boundaries of the Laurel School National Register District, established in 1980. At the time the District was established, two of the properties, at 705 and 715 Remington, were less than fiftyyears old (the minimum age for designation, without special consideration), and were identified as intrusions to the District. The middle property, the Button House at 711 Remington Street, was found to contribute to the district, and is designated on the National Register as a contributing element of the Laurel School National Register District. Properties designated on the National Register of Historic Places are also designated on the State Register of Historic Properties. With the exception of the two "intrusion " properties, all other properties located in the 700 block of Remington Streetare designated on both the National and State Registers. Additionally, two ofthese other properties, 700 Remington Street and 729 Remington Street, are further designated as Fort Collins Landmarks. - - - The properties at 705 and 711 Remington Street contain buildings and structures that are over fifty years old. Therefore, the proposal to demolish or relocate these buildings is subject to Chapter 14, Article IV, of the Municipal Code, commonly called the "Demolition/Alteration Review Process. " In April 2008, pursuant to the policies and procedures established in Chapter 14 of the Municipal Code, the Community Development and Neighborhood Services (CDNS) Director and the Landmark Preservation Commission (LPC) Chair determined that the property at 705 Remington Street was not individually eligible for local landmark designation. In August 2011, the residence at 711 Remington Street was reviewed by the CDNS Director and the LPC Chair. The residence at 711 Remington Street was determined to be individually eligible for local landmark designation. Constructed in 1888, theButton House has unique and distinct architectural features that both make it individually eligible and add to the character of the 700 Remington Street Block and the Laurel School neighborhood contest. As provided for in Chapter 14, Article IV, of the Municipal Code, on October 12, 2011 and January 11, 2012, the LPC conducted a Preliminary Hearing on the proposed demolition or relocation of the historic dwelling. LPC Preliminary Hearings are an opportunity for the applicant and the Commission to explore alternatives to demolition or substantial alteration, including relocation to 352 April 17, 2012 an appropriate location. At the Preliminary Hearing, a mutually agreeable solution was not identified, and the Commission moved that the application proceed to a Final Hearing. An LPC Final Hearing is scheduled after the receipt of submittal requirements, including approved plans for the redevelopment of the property. For the Planning and Zoning Board to approve a Project Development Plan, it must comply with all applicable Sections of Article 3 and Article 4 of the Land Use Code. The General Standard pertaining to Historic and Cultural Resources, Section 3.4.7(B), describes the Code's applicability to this proposed project. The property at 711 Remington Street meets all three criteria for applicability. The Code states: "If the project contains a site structure or object that (1) is determined to be individually eligible for local landmark designation..., [or] (2) is officially designated as a ... state landmark, or is listed on the National Register of Historic Places; or (3) is located within an officially designated historic district or area, then to the maximum extent feasible, the development plan and building design shall provide for the preservation and adaptive use of the historic structure. The development plan and building design shall protect and enhance the historical and architectural value of any historic' property that is: (a) preserved and adaptively used on the development site;. or (b) is located on property. adjacent to the development site... New structures must be compatible with the historic character of any such historic property, whether on the development site or adjacent thereto. " As conceptually proposed, the project does not comply with Sections 3.4.7 (B) and 3.4.7(E), due to the failure to demonstrate either that the plan provides for the preservation of the National and State Register designated, and individually eligible Landmark home, at 711 Remington Street; or by providing evidence that the applicant has, to the maximum extent feasible, attempted to comply with the code provision and that no feasible and prudent alternative exists and all possible efforts to comply with the regulation or minimize potential harm or adverse impacts have been undertaken. Therefore, the Appellants chose to submit two "stand-alone " modification requests. ACTION OF THE PLANNING AND ZONING BOARD At its February 16, 2012, meeting, the Planning and Zoning Board denied all five Modifications of Standards requests for this project. Regarding the two modification requests that are the subject of this Notice of Appeal, the Planning and Zoning Board made the following motions: 1. The Board moved to deny the modification request to Section 3.4.7(B) of the Land Use Code ' based on the fact that the modification would be detrimental to the public good. 2. The Board moved to deny the modification request to Section 3.4.7(E) of the Land Use Code based on the fact that the modification would be detrimental to the public good. The Board considered the testimony of the applicant, affected property owners, the public and staff, and voted to deny the requests for modifications ofstandards to Section 3.4.7(B) and 3.4.7(E) of the Land Use Code (5-1). 353 April 17, 2012 QUESTIONS COUNCIL NEEDS TO ANSWER Did the Planning and Zoning Board fail to hold a fair hearing? 2. Did the Planning and Zoning Board fail to properly interpret and apply relevant provisions of the Land Use Code? ALLEGATIONS ON APPEAL On March 1, 2012, the Appellants filed a Notice of Appeal with the City Clerk's Office. The Appellants allege that the Planning and Zoning Board failed to conduct a fair hearing and failed to properly interpret and apply relevant provisions of the Land Use Code when denying the two stand-alone modification of standard requests to Section 3.4.7(B) and 3.4.7(E) of the Land Use Code. A. Failure to Conduct a Fair Hearing in that the Planning and Zoning Board Considered Evidence Substantially False and Grossly Misleading. The Appellant states, "The Board deferred to staff opinion and a prior erroneous determination of eligibility based on substantially false and grossly misleading evidence as was demonstrated to be blatantly incorrect... " The Appellants maintain that the Planning and Zoning Board considered evidence that was substantially false and grossly misleading. In support, the Appellants maintain that the building at 711 Remington Street is not eligible for Fort Collins Landmark designation, stating that it does not meet the standards for designation; cite two specific comments made by the Board during the February 16, 2012 Hearing and identified in the Notice of Appeal as, "...references to certain City policy interpreted as discouraging students from bring (sic) cars to campus - in favor of zip car subscriptions - and references to potentially thousands ofpossible project designs that preserve the allegedly eligible property... "; and cite a letter from Dr. Kozial. The Appellant asserts that the Board relied on the product of this false information in accepting the eligibility determination for the 711 Remington structure. The Planning and Zoning Board did not consider the eligibility of the building at 711 Remington Street in making its motion to deny the two modifications ofstandards requests, as determining the eligibility of the property is not in its purview. The determination of eligibility was made in full accordance with the policies and procedures established in Chapter 14 of the Municipal Code. As documented in the staff report and in the Hearing Transcript, the factual information that the building is designated on the National Register of Historic Places as well as on the State Register of Historic Properties, and was determined to be eligible for designation, was provided to the Board in its staff report and during the February 16, 2012 Hearing before the Board. The Planning and Zoning Board did not consider references to zip cars in making its motion to deny the two modifications of standard requests. All discussion relating to zip cars was made in the Board's discussion of the first of the f ve modification ofstandard requests, that to Standard 4.9(D)(1) Density. During this discussion, board member Schmidt did state in 354 April 17, 2012 reference to the proposed PDOD process that she hoped that'it would encourage creativity, including zip car subscriptions. (Transcript, page 39, sentences 9-15) In making its motion to deny the two modifications of standard requests, the Planning and Zoning Board did not consider references to "...potentially thousands of possible project designs that preserve the ... property...... The only reference to the number of potential alternative designs occurs on page 47 of the Transcript, when board member Carpenter states, "I think the other thing that I would like to point out is that, incumbent on us, if we were to allow this modification, would be that we think the applicant has shown that no feasible or prudent alternative exists, and that all possible efforts were made to comply and to find feasible alternatives. And, I can think of a lot of feasible alternatives that haven't been looked at for this to stay where it is and to not be relocated. " In making its motion to deny the two modifications of standard requests, the Planning and Zoning Board did not consider the letter from Dr. Kozial. While the Appellants ' attorney, Mr. Johnson did readout loud certain passages from the letter during his presentation, the Transcripts from the Hearing make it clear that the Board did not discuss this information or consider it in making its motion. B. Failure to Properly Interpret and Apply Relevant Provisions of Section 2.8.2(H)(2) of the Land Use Code in the Request for a Modification of Section 3.4. 7(B) and 3.4.7(E) of the Land Use Code. The Appellant states, "A modification of standard is allowed if granting the modification is not detrimental to the public good" and the Appellant maintains that the Planning and Zoning Board failed to properly interpret and apply relevant provisions of the City Plan and the Land Use Code zone district standards in relationship to the eligibility of the property in making its decision that modifications of Standards 3.4.7(B) and 3.4.7(E) would. be detrimental to the public good. The question, thus, is do the benefits to the community of retaining the historic structure at 711 Remington Street and maintaining the character of the existing Laurel School National and State Register Historic. District outweigh the benefits to the community of additional student housing at this location. The Appellant states that the granting of the modifications is not detrimental to the public good because the proposed project addresses eleven City Plan policies. Therefore, the Planning and Zoning Board failed to properly interpret and apply relevant provisions of the Land Use Code. On February 16, 2012, the Appellant requested that the Planning and Zoning Board (Board) grant modifications to Section 3.4.7(B) and Section 3.4.7(E) of the Land Use Code.. These Land Use Code (LUC) Sections are as follows: Section 3.4.7(B) General Standard If the project contains a site, structure or object that (1) is determined to be individually eligible for local landmark designation or for individual listing in the State or National Registers of Historic Places; (2) is officially designated as a local or state landmark, or is listed on the National Register of Historic Places; or (3) is located within an officially designated historic district or area, then to the maximum 355 April 17, 2012 extent feasible, the development plan and building design shall provide for the preservation and adaptive use of the historic structure. The development plan and building design shall protect and enhance the historical and architectural value of any historic property that is: (a) preserved and adaptively used on the development site; or (b) is located on property adjacent to the development site and qualifies under (1), (2) or (3) above. New structures must be compatible with the historic character of any such historic property, whether on the development site or adjacent thereto. Section 3.4.7 (E) Relocation or Demolition A site, structure or object that is determined to be individually eligible for local landmark designation or for individual listing in the State or National Registers of Historic Places may be relocated or demolished only if, in the opinion ofthe decision maker, the applicant has, to the maximum extent feasible, attempted to preserve the site, structure or object in accordance with the standards of this Section, and the preservation of the site, structure -or object is not feasible. In order for the Board to approve the modification requests to LUC Section 3.4.7(B) and 3.4.7(E), the Board must find that the modifications are not detrimental to the public good and that one or more of the four criteria outlined in LUC Section 2.82(H) are fully complied with. LUC Section 2.8.2(H) states that: The decision maker may grant a modification of standard only if it finds that the granting of the modification would not be detrimental to the public good, and that: (2) the granting of a modification from the strict application of any standard would, without impairing the intent and purpose of this Land Use Code, substantially alleviate an existing, defined and described problem of city=wide concern or would result in a substantial benefit to the city by reason of the fact that the proposed project would substantially address an important community need specifically and expressly defined and described in the city's Comprehensive Plan or in an adopted policy, ordinance or resolution ofthe City Council, and the strict application ofsuch a standard would render the project practically infeasible. Some ofthe City Plan policies listed on page 3 ofthe Notice of Appeal do not apply to the proposed project. The staff report specifically addresses this fact on page 17 stating, "Relationship to City Plan Policies: The project site is not located in the targeted redevelopment area as the applicant asserts. " Additionally, staff report to the board notes that, "the granting of two modifications, one to Section 3.4.7 (B) and one to 3.4.7 (E), would not result in a substantial benefit to the city. Moreover, the proposed project does not substantially address any important community need specifzcally'and expressly defined and described in the city's Comprehensive Plan (Staff Report, pg. 18). The Planning and Zoning Boards' discussion at the Hearing did not cover specific City Plan policies, as they relate to the two requested modifications in question. In its denial of the two stand 356 April 17, 2012 alone modification of standard requests, the Planning and Zoning Board did not make specific findings regarding the cited City Plan policies referenced by the Appellant in the Notice of Appeal. C. The Appellant alleges that the Planning and Zoning Boardfailedtoproperly interpret and apply relevant provisions of the Land Use Code in that the proposed project is not detrimental to public good in relationship to the eligibility of the Property and the lack of exterior integrity of Property. In doing so, that the Board failed to properly interpret and apply the Code in that the requested modification of standard The property was determined to be individually eligible pursuant to the process outlined in Chapter 14 of the Municipal Code. The Planning and Zoning Board did not make a determination ofindividual eligibilityfor local landmark designation on February 16, 2012. Land Use Code 3.4.7(C), Determination of Landmark Eligibility, specifically states that the determination ofeligibilityfor local landmark designation will be made in accordance with the process laid out in Chapter 14 of the Municipal Code. The determination of eligibility for the residence at 711 Remington Street was made following the process outlined in Chapter 14 of the Municipal Code. D. The Appellant alleges that the Board failed to properly interpret and apply the Code in that the requested modification of standard and relocation of the Property substantially alleviates existing, defined and described problems of city-wide concern and substantially addresses and benefits important community needs. The motions made by the Planning and Zoning Board at its February 16, 2012 Hearing denying the two stand alone modification ofstandard requests did not contain any language referencing adopted city policies, the intent or purpose of the Land Use Code or any statements regarding the project in terms of the LUC Section 2.8.2(H)(2). SUMMARY The property at 711 Remington Street is designated on the National Register of Historic Places as well as on the State Register of Historic Properties. Additionally, the residence was determined to be individually eligible for local landmark designation pursuant to the policies and procedures contained in Chapter 14 of the Municipal Code. When a building that is located within the Laurel School National and State Register Historic District and/or has been determined to be individually eligible is proposed to be demolished, relocated or significantly modified as part of a development plan, then the plan is subject to the standards contained in Section 3.4.7 of the Land Use Code. As proposed, the project did not meet Section 3.4.7 requirements, and the Appellant requested a modification of these standards preceding the submittal of a Project Development Plan, heard on February 16, 2012. In order to grant a modification request, the Board must make the findings outlined in Section 2.8.2(H) of the Land Use Code. The Board moved to deny all five of the request for modifications (5-1), including the two that are the subject of this appeal, based on their determination that granting the modifications would be detrimental to the public good. " Assistant City Attorney Daggett reviewed the appeal procedure and noted this appeal will be heard under the procedure in place prior to the recent appeal procedure changes. She stated Council can opt to uphold, overturn, or modify the Planning and Zoning Board's original denials, or remand all or part of the decisions back to the Board for rehearing or further consideration of specific matters. USIFA April 17, 2012 Courtney Levingston, City Planner, discussed the Remington Annex project and the requested modifications of standard. She stated the property at 711 Remington Street, one of the three homes proposed to be demolished as part of this project, was determined to be individually eligible for local landmark designation. Karen McWilliams, Historic Preservation Planner, discussed the City's demolition/alteration review process. She stated this block of Remington Street contains ten other historically designated properties in addition to 711 Remington Street. She stated the appellant asserts the Planning and Zoning Board failed to conduct a fair hearing because it considered evidence substantially false and grossly misleading and also asserts that the building at 711 Remington is not eligible for local landmark designation. McWilliams noted the Board did not consider the eligibility of the building at 711 Remington Street in making its motion to deny the two modification requests as that it is not within the Board's purview. Levingston stated the appellant also asserts that the Planning and Zoning Board failed to properly interpret and apply relevant provisions of the Land Use Code when it denied the two modification .. requests. The appellant maintains the two modification requests are not detrimental to the public =- good and the project would advance the public good because it substantially addresses adopted plans and policies. Levingston stated Council must consider whether or not the Planning and Zoning Board failed to hold a fair hearing and whether or not the Board failed to property interpret and apply relevant provisions of the Land Use Code. Mayor Weitkunat noted several Councilmembers visited the site with staff on April 12. Councilmember Horak stated at the site visit he asked why the property would be eligible for local landmark designation, and was given a brief answer by staff. Appellant Presentation Jeff Johnson, attorney for the appellants, stated -the relocation of the structure at 711-.Remington - Street is the crux of the appeal. He stated the appellant would like Council to grant the modification to allow the relocation of the structure with the condition that the site to which the building will be relocated is suitable to the City. Relocation of the structure will allow for investment in the block face to allow for an appropriate transition between the commercial zone district and the NCM zone, and will substantially address needs outlined in City plans and policies. If the relocation is granted, the project is not approved, and Land Use Code Section 3.4.7 will still apply. Robin Bachelet, Appellant, discussed the student housing projects she and her husband have built near CSU and requested Council support relocation of the structure at 711 Remington Street. Ms. Bachelet stated the conceptual review of the project resulted in a comment from Karen McWilliams noting the properties at 705 and 715 Remington are not eligible, and the property at 711 Remington is probably not eligible. She stated the conceptual review comments did not indicate these properties are located in the Laurel Historic District or are part of a national historic district. Ms. Bachelet described the conflicting comments received from staff regarding eligibility and whether or not the Landmark Preservation Commission would be involved. Ms. Bachelet read portions of a letter from Dr. Koziol, an historic preservation expert, opposing the eligibility of the structure at 711 Remington. 358 April 17, 2012 Ms. Bachelet stated there are twelve intrusion properties surrounding her property on Remington, and only IS of the 100 dwellings studied on Remington Street are owner -occupied. Opponent Presentation Rick Zier, attorney representing parties -in -interest in opposition to the appeal, discussed the neighborhood and surrounding historical properties. He outlined the opposition arguments supporting the Planning and Zoning Board's decision to deny the modifications of standard, stating the two modifications would be detrimental to the public good as they would weaken the sense of identity and heritage of the Laurel School National Register Historic District and overall neighborhood context. Mr. Zier stated a structure's location makes it historic and relocating it would change the authenticity of the Historic District. Marcy Riser, 622 Remington Street, stated relocation would destroy the integrity of the property and negatively impact the Historic District. She requested Council uphold the denials of the Planning and Zoning Board. Appellant. Rebuttal Christian Bachelet, Appellant, stated the properties have been neglected for years and noted they had plans that included the structure which were not feasible projects. Mr. Bachelet expressed concern there is no avenue available to refute eligibility and noted there was no disclosure citing eligibility when they purchased their property. Mr. Johnson stated the property lacks exterior integrity and significance. The proposed project encourages the Land Use Code by renewal and innovation, encourages patterns of land use development through infill, encourages appropriate development within transit corridors, and fosters a more rational relationship between the commercial properties and the historic district. Mr. Johnson noted three of the Landmark Preservation Commission members supported relocation of the structure. He stated the applicant has -created six different building plans and has appeared before the Landmark Preservation Commission twice to attempt to find a solution to the issue. Opponent Rebuttal Mr. Zier stated the Planning and Zoning Board did not rely on false or grossly misleading evidence and did not fail to properly interpret the Land Use Code and requested the Board's decision be upheld. Council Discussion Councilmember Troxell asked about the alleged changing determinations made by Ms. McWilliams. McWilliams replied the comments attributed to her from the Conceptual Review were summary comments and were corrected at the time the comments were provided to the applicant, six months prior to the purchase of the property. McWilliams read the summary and corrected comments. Councilmember Troxell requested input regarding the ability to refute a determination of eligibility. McWilliams replied the appellants can refute the eligibility determination by providing substantive new information and requesting a new determination or, by working through the process and 359 April 17, 2012 continuing to the Landmark Preservation Commission final hearing; at which time, any decision of the Commission is directly appealable to Council. r Councilmember Horak made a motion, seconded by Councilmember Poppaw, that the Planning and Zoning Board did not fail to conduct a fair hearing. Councilmember Troxell stated the applicant is using the mechanism at its disposal and he is unsure as to why the applicant cannot get a fair hearing of the issue. Councilmember Horak agreed there are some issues regarding eligibility which need to be addressed within the City organization; however, this hearing is not the appropriate time to deal with that issue. Councilmember Troxell expressed concern the current processes regarding eligibility are detrimental to the City. Councilmember Manvel stated the process has been followed and the Board conducted a fair and complete hearing. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Poppaw, to uphold the decision of the Planning and Zoning Board denying the proposed modification of standards for Land Use Code Section 3.4.7(B). Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Horak made a motion, seconded by Councilmember Poppaw, to uphold the decision of the Planning and Zoning Board denying the proposed modification of standards for Larid-Use Code Section 3.4.7(E). Mayor Weitkunat noted Council was limited by the appeal process in terms of what issues can be addressed. The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Horak and Troxell. Nays: none. THE MOTION CARRIED. Councilmember Troxell requested information regarding the schedule to address these process issues moving forward. Deputy City Manager Jones replied a memo will be delivered to Council within a week outlining the problem statements, scope of work, public involvement, and schedule for meeting dates. Mayor Pro Tern Ohlson agreed that the historic preservation process needs clarification and stated historic preservation within the community has been too relaxed. 360 April 17, 2012 Councilmember Troxell agreed and stated efforts should be sharpened with respect to what properties should be preserved. McWilliams replied a recent assessment resulted in suggestions for achieving more predictability in the historic preservation process. Ordinance No. 028, 2012, Appropriating General Fund Reserves for the Purpose of Rebating Use Tax to Hewlett Packard Company in Support of the Building Six Annex Expansion in Accordance with Resolution 2010-029, Adopted on Second Reading, The following is staffs memorandum for this item. "EXECUTIVE SUMMARY This Ordinance, appropriates $241,193 of General Revenue Funds for a Use Tax rebate approved by City Council on May 18, 2010 by Resolution 2010-029. The Resolution approved an agreement between the City and Hewlett Packard Company to provide Business Investment Assistance for the Building 6 Anner Expansion. The additional operations created approximately 100 jobs with an annual average wage of$90,000. The City's assistance included both a onetime use tax rebate and a personal property tax rebate on lab equipment for a total value of $1.6 million. This Ordinance, adopted on First Reading on April 3, 2012 by a 6-0 vote (Poppaw withdrew) appropriates $241,193 in use tax rebate, which is substantially less that the maximum rebate approved of $600, 000. " Councilmember Poppaw withdrew from the discussion of Ordinance No. 028, 2012, due to a conflict of interest. Councilmember Horak made a motion, seconded by Councilmember Manvel, to adopt Ordinance No. 028, 2012, on Second Reading. Yeas: Weitkunat, Manvel, Ohlson, Horak and Troxell. Nays: none. THE MOTION CARRIED. The meeting adjourned at 9:55 p.m. ATTEST: Interim City Clerk Adjournment 361 GtJ yor