HomeMy WebLinkAboutMINUTES-10/16/2012-RegularOctober 16, 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, October 16, 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, Kottwitz, Manvel, Ohlson, Poppaw, Troxell and
Weitkunat
Staff Members Present: Atteberry, Nelson, Roy.
Agenda Review
City Manager Atteberry recommended removing Item No. 23, First Reading of Ordinance No. 116,
2012, A uthorizing the Appropriation of2013 Fiscal Year Operating and Capital Improvement Funds
for the Fort Collins -Loveland Municipal Airport, from the agenda.
Citizen Participation
Stacy Lynne, 305 West Magnolia, discussed the custody case of her son and alleged various crimes
relating to the case.
Bill Mullaney supported Stacy Lynne and alleged various crimes relating to her case.
Cheryl Distaso, Fort Collins Community Action Network, thanked Council for adopting the
Corporation Separation Movement Resolution.
Myles Crane, Human Relations Commission ember, announced an elder abuse forum.
Dam Grant, 227 Hawks Nest Way, Spokesbuzz Fort Collins, thanked Council, Fort Fund, and the
City of Fort Collins for supporting its band swap program.
Citizen Participation Follow-up
Mayor Weitkunat read a prepared statement regarding the Stacy Lynne custody case. She stated a
police investigator and the District Attorney's Office have concluded that no probable cause exists
to merit further action by Fort Collins Police Services against any of the multiple public officials
who have been the subject of Ms. Lynne's complaints.
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October 16, 2012
CONSENT CALENDAR
BUDGET CONSENT ITEM
6. First Reading of Ordinance No. 107, 2012, Being the Annual Appropriation Ordinance of
the Fort Collins Downtown Development Authority Relating to the Annual Appropriations
for the Fiscal Year 2013 and Fixing the Mill Lew for the Downtown Development
Authority for Fiscal Year 2013.
The'Annual Appropriation Ordinance is presented for First Reading. Ordinance No. 107,
2012, sets the Downtown Development Authority (DDA) 2013 Operations and Maintenance
Budget amount of $769,440 to be appropriated for fiscal year 2013 for the administrative
operations budget; appropriates the 2013 Line of Credit Draw in the amount of $1,000,000;
sets the amount of $3,197,535 for debt service payments to be appropriated for fiscal year
2013; and sets the 2013 Mill Levy for the Fort Collins DDA at five (5) mills, unchanged
since tax year 2002. The approved Budget becomes the Downtown Development
Authority's financial plan for 2013.
NON -BUDGET CONSENT ITEMS
7. Consideration and Approval of the Minutes of the September 18, 2012 and October 2, 2012
Regular Meetings
8. Second Reading of Ordinance No. 103, 2012, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds.
The purpose of this annual Clean -Up Ordinance is to combine dedicated revenues or
reserves that need to be appropriated before the end of the year to cover the related expenses
that were not anticipated and, therefore, not included in the 2012 budget appropriation. The
unanticipated revenue is primarily from fees, charges, rents, contributions and grants that
have been paid to City departments to offset specific expenses. ' Prior year reserves are
primarily being appropriated for unanticipated operation expenses from reserves that are set
aside for that purpose. This Ordinance, unanimously adopted on First Reading on October
2, 2012, appropriates prior year reserves and unanticipated revenue in various City funds.
Funding for the annual appreciation event to thank volunteers for serving on the City's
boards and commissions, funding for the November 6, 2012 special election and additional
funds for the Recreation Youth Football Program fund raiser in the Recreation Fund have
been included in the Ordinance on Second Reading:
9. Second Reading of Ordinance No. 104, 2012, Authorizing the Purchasing Agent to Enter
into an Agreement for the Financing by Lease -Purchase of Equipment.
The City of Fort Collins is lease -purchasing desktop computers and laptops for various City
departments. This Ordinance, unanimously adopted on First Reading on October 2, 2012,
authorizes the Purchasing Agent to enter into lease -purchase financing agreement with
Pinnacle Public Finance at an interest rate of 2.28%. The cost of the items to be lease -
purchased is $294,000. Payments at the 2.28% interest rate will not exceed $15,596 in 2013.
Money for 2013 lease -purchase payments is included in the 2013 budget requests. The
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October 16, 2012
effect of the debt position for the purpose of financial rating of the City will be to raise the
total City debt by 0.21 %. 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.
10. Second Reading of Ordinance No 105 2012 Amending Chapter 7 of the City Code
Relating to Redistricting_
This Ordinance, unanimously adopted on First Reading on October 2, 2012, amends Section
7-87(b) of the City Code to enact language that is consistent with the original intent that the
City Clerk, within 18 months after the decennial publication of the U.S. Census, recommend
district boundary changes necessary to ensure that, to the extent reasonably possible, there
is no more than a 10% deviation between the most populous and the least populous Council
district.
11. Second Reading of Ordinance No. 106, 2012. Vacating the City's Interest in the Streets
Known as Daisv Street and Columbine Street.
Daisy Street and Columbine Street are located between City Park Avenue and Bluebell
Street, north of Plum Street. The property that both Daisy Street and Columbine Street serve
is currently going through the development review process and is in the stages of final
review. All lots adjacent to these two short street stubs have been included within the
District at Campus West development proposal. This Ordinance, unanimously adopted on
First Reading on October 2, 2012, will vacate the public right-of-way to allow the parcels
and the streets to be replatted to accommodate the multifamily development.
12. Items Relating to the Colorado Parks and Wildlife Grant for the Fossil Creek Trail at East
Trilby Road Project.
A. Resolution 2012-094 Authorizing the City Manager to Enter Into a Grant Agreement
with Colorado Parks and Wildlife for the Fossil Creek Trail at East Trilby Road
B. First Reading of Ordinance No. 108, 2012, Appropriating Unanticipated Grant
Revenue from Colorado Parks and Wildlife in the Conservation Trust Fund for the
Fossil Creek Trail at East Trilby Road.
This Ordinance appropriates a $200,000 trail grant received from Colorado Parks and
Wildlife for the completion of the Fossil Creek Trail at East Trilby Road. The project
involves a new trail from Lemay Avenue, east along the north side of Trilby Road, to a
planned underpass of Trilby, just west of the location where Fossil Creek goes under the
road. The trail will then proceed south to connect with the Fossil Creek Trail, which was
constructed north of Carpenter Road in 2012. A spur trail will travel east along the north
side of Trilby Road to connect to the Power Trail. The total length of new trail will be about
one mile. Resolution 2012-094 authorizes the City Manager to enter into the grant
agreement.
11. First Reading of Ordinance No. 109, 2012. Appropriating a Grant from Great Outdoors
Colorado for the City's Portion of Larimer Countv's Poudre River Corridor and Regional
Trail Initiative Grant.
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October 16, 2012
Great Outdoors Colorado has awarded a grant to Larimer County for its Poudre River
Corridor & Regional Trail Initiative project. Larimer County is the lead agency for the grant
application that includes the City of Fort Collins, Town of Timnath, Town of Windsor, and
the City of Greeley. The grant request includes open space acquisitions, trail easements,
and trail development along the Poudre River from Fort Collins to Greeley. The total grant
project cost is $8,074,826, with the Great Outdoors Colorado grant being in the amount of
$5,098,150. The City of Fort Collins portion of the project is $1,558,880, with the Great
Outdoors Colorado grant amount being $737,597.
The City's portion of the project involves a new trailhead parking lot along Strauss Cabin
Road, extending the 10-foot wide concrete Poudre River Trail to the west side of I-25, an
overpass of I-25 and short trail connection to Timnath's trail east of I-25. The total length
of new trail will be about 0.5 of a mile. The trail placement on Arapaho Bend Natural Area
has been coordinated with the Natural Areas staff. Construction of the project is scheduled
to start in 2013.
14. First Reading of Ordinance No. 110, 2012, Approving a Fourth Amendment to the Fort
Collins-Timnath Intergovernmental Agreement Regarding Cooperation on Annexation
Growth Management, and Related Issues, Eliminating Original Terms Related to the
Boxelder Overflow Project and Establishing the Terms of Cost Sharing for Design
Engineering of Substituted Improvements in the Boxelder Basin.
On February 17, 2009, the City of Fort Collins (City) and the Town of Timnath (Timnath)
entered into an intergovernmental agreement (IGA) regarding annexations, growth
management, and related issues. The IGA resolved certain differences that had arisen
between the City and Timnath concerning a variety of planning and growth management
issues. The IGA sets forth provisions for the funding, design and construction of the
Boxelder Overflow Project. The IGA has been amended three times since for items such as
the extension of deadlines for approval of the respective GMA's and the deletion of all
references to Timnath's possible purchase of the Vangbo property.
The parties have determined that development of the Boxelder Overflow Project originally
contemplated by Timnath as described in the Intergovernmental Agreement is neither
feasible nor desirable, and have further identified a mutually beneficial alternative approach
to address flood impacts in the Boxelder Creek Basin as it impacts Timnath and Fort Collins,
referred to as the Boxelder Creek Flood Mitigation Projects. In order to move forward
cooperatively to further investigate, conceptually plan and preliminarily design the Boxelder
Creek Flood Mitigation Projects, the parties desire to apply toward those Projects a portion
of the funds previously paid into an escrow account by Fort Collins in accordance with
Article 7 of the Intergovernmental Agreement. The City and Timnath are entering into this
Fourth Amendment to the Intergovernmental Agreement in order to clarify and document
their intentions and mutual rights and responsibilities with respect to the Boxelder Overflow
Project and Boxelder Creek Flood Mitigation Projects.
15. Resolution 2012-095 Finding Substantial Compliance and Initiating Annexation Proceedings
for the Kechter Crossing Annexation.
This is a request to annex and zone 28.9 acres located on the south side of Kechter Road,
approximately 900 feet east of the intersection of South Timberline Road and Kechter Road.
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October 16, 2012
Kechter Crossing is adjoining and immediately west of a parcel of land owned by the City
of Fort Collins for the City's Affordable Housing Land Bank. This annexation is not
associated with the Kechter Farm development, which is located southeast of the Kechter
Crossing Annexation.
The requested zoning for this annexation is the Low Density Mixed -Use Neighborhood
District (L-M-N), which is in compliance with the City of Fort Collins Structure Plan and
the Fossil Creek Reservoir Area Plan. The surrounding properties are existing residential
land uses currently zoned FA-1 — Farming Zoning District in Latimer County to the north,
south, and west. The City land bank property to the west is zoned L-M-N.
16. Routine Easement.
Easement for construction and maintenance of public utilities from Fort Collins Downtown
Development Authority; to install an electric transformer to provide additional capacity,
located at Lot 27, Block l I I, east of Mason between Mountain Avenue and Oak Street.
***END CONSENT***
Ordinances on Second Reading were read by title by City Clerk Nelson.
8. Second Reading of Ordinance No. 103, 2012, Appropriating Prior Year Reserves and
Unanticipated Revenue in Various City Funds.
9. Second Reading of Ordinance No. 104, 2012, Authorizing the Purchasing Agent to Enter
into an Agreement for the Financing by Lease -Purchase of Equipment.
10. Second Reading of Ordinance No. 105, 2012, Amending Chapter 7 of the City Code
Relating to Redistricting.
11. Second Reading of Ordinance No. 106, 2012, Vacating the City's Interest in the Streets
Known as Daisy Street and Columbine Street.
Ordinances on First Reading were read by title by City Clerk Nelson.
First Reading of Ordinance No. 107, 2012, Being the Annual Appropriation Ordinance of
the Fort Collins Downtown Development Authority Relating to the Annual Appropriations
for the Fiscal Year 2013 and Fixing the Mill Levy for the Downtown Development
Authority for Fiscal Year 2013.
12. First Reading of Ordinance No. 108, 2012, Appropriating Unanticipated Grant Revenue
from Colorado Parks and Wildlife in the Conservation Trust Fund for the Fossil Creek Trail
at East Trilby Road.
13. First Reading of Ordinance No. 109, 2012, Appropriating a Grant from Great Outdoors
Colorado for the City's Portion of Larimer County's Poudre River Corridor and Regional
Trail Initiative Grant.
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October 16, 2012
14. First Reading of Ordinance No. 110, 2012, Approving a Fourth Amendment to the Fort
Collins-Timnath Intergovernmental Agreement Regarding Cooperation on Annexation,
Growth Management, and Related Issues, Eliminating Original Terms Related to the
Boxelder Overflow Project and Establishing the Terms of Cost Sharing for Design
Engineering of Substituted Improvements in the Boxelder Basin.
21. First Reading of Ordinance No. 112, 2012, Being the Annual Appropriation Ordinance
Relating to the Annual Appropriations for Fiscal Year 2013; Adopting the Budget for the
Fiscal Years Beginning January 1, 2013 and Ending December 31, 2014, and Fixing the Mill
Levy for Fiscal Year 2013.
22. Items Relating to Utility Rates, Fees, and Charges for 2013. .
A. First Reading of Ordinance No. 113, 2012, Amending Chapter 26 of the City Code
to Revise Water Rates and Charges.
B. First Reading of Ordinance No. H 4, 2012, Amending Chapter 26 of the City Code
to Revise Electric Rates, Fees and Charges.
C. First Reading of Ordinance No. It 5, 2012, Amending Chapter 26 of the City Code
to Revise Electric Development Fees and Charges.
Councilmember Manvel made a motion; seconded by Councilmember Troxell, to adopt all items
on the Consent Calendar. Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw. Horak and Troxell.
Nays: none.
THE MOTION CARRIED.
Staff Reports
Joel Radke, Mountain Region Director of the National Association of Government Webmasters,
presented Jim Thome with the Pinnacle Award for the City's web page.
Councilmember Reports
Councilmember Poppaw reported on a recent Fort Collins Symphony Orchestra performance and
the Housing Now conference, at which the Fort Collins Housing Authority participated in a charette
for affordable housing design.
Councilmember Troxell reported on the opening of two new city parks, including Registry Ridge
Community Park and Water's Way.
Mayor Weitkunat stated the two new parks represent the 47th and 48th city parks.
October 16, 2012
Ordinance No. 112, 2012,
Being the Annual Appropriation Ordinance Relating to the Annual Appropriations
for the Fiscal Year 2013; Adopting the Budget for the Fiscal Years
Beginning January 1, 2013, and Ending December 31, 2014;
and Fixing the Mill Levy for the Fiscal Year 2013 Adopted on First Reading
The following is staff s memorandum for this item.
"EXECUTIVE SUMMARY
The Annual Appropriation Ordinance is presented for First Reading. This Ordinance sets the City
Budget for the two-year period (2013-14) which becomes the City's financial plan for the next two
fiscal years. This Ordinance sets the amount of 5483, 445, 062 to be appropriated for fiscal year
2013. Including the 2013 adopted budgets for the General Improvement District (GID) No. I of
5193,666 and the Urban Renewal Authority (URA) of 51,038,682 the total City operated
appropriations amount to 5484, 677, 410.
This Ordinance also sets the 2012 City mill levy at 9.797 mills, unchanged since 1991.
BACKGROUND /DISCUSSION
For the fifth time the City has used a budgetingprocess called Budgetingfor Outcomes (BFO). This
process is a recommended best practice by the Government Finance Officers Association (GFOA).
It is a systematic process driven by goals and performance, to provide information that relates
budgeting to planning and results. Its purpose is to better align the services delivered by the City
with the things that are most important to the community.
The 2013-14 City Manager's Recommended Budget was delivered to Council in August. The
Recommended Budget strengthens key services related to transportation, police, fire, parks and
recreation and other community priorities such as the environment, economic development and
social sustainability, delivering on the commitment made to voters who approved the Keep Fort
Collins Great sales tax increase in 2010. The budget also and makes smart, long-term investments
in the future, with investments in the Poudre River, North College, and ForlZED.
City Council reviewed the Recommended Budget during four Council Work Sessions. In addition,
citizens have been able to provide input to Councilmembers through two public hearings and an
online feedback tool. From these discussions and additional information provided by staff, City
Council has provided direction and guidance for changes to be incorporated into I" reading of the
2013-14 Biennial Budget. The following table summarizes the Of not originally included in the
Recommended Budget.
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October 16, 2012
011P., Ft 111a Cd per Comwil nile,lillll
21113 %.'IoIIIII
21114 A ......... t
Fm.dmg
-f)tl'er;0.5I'..udre Schmid 1lhtl id Aller-1 lulu's 1'ru_raul
S 66,894
S 66,894
GF-I2elluclimu&Sale, Tax
OItar 6.8 h. FCG: 5uppm I :Ails Incnhatllr ut the Iirlclut•e
511,111111
611,0110
GF- Itednclimis & Sal" 'I:a
-Oft,,'9.7 Flit'il'11111aeI1I:11 ..el,ieC. nlleradllll.
37JI100
37,111111
eF-RCdtwti.....&Sided ax
-OfterS1.16Val kItall"'I, fin- Cit, l':l,L'alld T,101
179.661
111.863
GI' - Increiucd Saln'laN
-( Iffo 236.1 Conkilllllllt Cal'den Oil(,c:ich l'I'lhl'illll
112,961
.3,925
(rl'- Ille, a RCd .Salt'. I a%
-011'ei 1113.1 t he G,' iit La, n (al 52;0K)
'511.0011
-
4.17- I n el'ca.nl II,c lil,
-(1ticr 1117.4 C i cot Green .St. o Sti eel,
-
451I,000
GF- Illcrcascd l he Tax
-011c. II15.25 M'.1he.._. It. id_', Uuiyu
5110.000
250,0011
B('C & CIF 11ac'1 nx & 665K)
-(Other 101_' ('01' 11ehl 12clinm"in" l'acnlcnl.
d113.000
39111110
GF- It cserc ee
-(1tIci 116.26 I2S/392 Swna-e
100.0110
-
GF- hexer,
'Fowl (loin:. Funded Im Council Uirecdon
S 1.699,516
h I.451 .082
Note: GF = General Fund
To fund these Offers requires a combination of fundingsources. The first prudent place to evaluate
is Offers that have a lower priority and, thus, should not be funded or can have their amounts
reduced. The table below lists Offers that were eliminated or modified
lFl nlinations and Modificatiuus 21113 %mmint 21117 Anlouul - Fundin.
11tlell Unlunnvd Ile. luunt'll I111'cehOn
- Mel194.> Leal'll llh `pecailk(
1 I %O,II6y) \ (84J %OI
(;ellel':tl Fund
-(%f1Cl'25.Ill \\111' k1doce`aten Iniliatile Fund
(Inu,nu(l) 11111111110)
Sell l...... ance Fllud-I2e.el"'
-011ei 68.3 Council Agend:l lulproxanrnl,.
(I 15.111111) (I;J100)
General Funtl
Oiler, l2cduccd per S11111' Reunuulcndatioll
'
-III.11l lililic. Ku..vied!}cTeauslee
(I II ulliII) (Ill11'(11l)
Illililc Fund.
-011e. I'M.'' C.dlah... alile Leadcrchip tic. clapmcm
(561180) IIN,IIRIII
(;cuelld Feud
Total 1-1h. .latm,e, m.d ,ll... Idwali uny
S (4511.14R) $ (317.256)
The gap between Offersfunded per Council direction and Offers eliminated or modified is addressed
by other funding sources. As the table below indicates, the gap was addressed by utilizing funds
available in the Sales and Use (S&U) Tax reserves, increasing the Sales Tax forecast.from 2.20%
and 2.05% to 2.70% and 2.55% for 2013 and 2014 respectively, increasing the Use Tax forecasts
by S500K in each year ofthe budget, and utilizing General Fund reserves. Of the available S6.5M
Sales and Use Tax reserve being transferred to the General Fund via the annual Clean-up
Ordinance, only S700K has been used in this budget.' The increase of'both the Sales and Use Tax
forecasts is based on the strong results we continue to see through the end of the third quarter of
2012 and the anticipation of slightly higher growth rates in 2013 and 2014. Lastly, the use of
General Fund reserves comes from anticipated contribution to General Fund balance based upon
actual 2012 revenue results greater than forecast.
CII:111!R'] to F111111111, A?.II III pt1u115
2013 Ammint
2014 Animllll
Vale.
-Reduce GF ufl'ers
S 2511,145
S 117.256
- A,oilahle W. ( IChmv, d Imc,,r ited Recccling Facilitcl
14S,111111
'-37,1100
Used General Fund lie]clIe?
- Incl'eaxc Sale, av I.. mi'l
272/1110
272.0011
0.S'%• incie:l.e in hall, xem,
-Increase l4r Tax furec:u(
500.01111
S011.u1111
A\ ;'i ahlc (..r 1-1 hne l'l aln>
-General Fllmis Rncrrc.
;031,0011
391.000
TmA Chuq;ca to Fundiu;; .Acslimptiuus
S 1.723 0110
S 1,400. 00
The combination of the above table results in the following summarized changes between the
recommended budget and the amounts included in First Reading of the 2013-14 Biennial Budget.
Additionally, in final preparation it was determined that the Benefits Programs and Services Offer
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October 16, 2012
was originally overstated and indicated a use of Benefit fund reserves greater than actually
required This has been recalculated and the significantly reduced expense is reflected in the
summary table below. The $1.2 million will remain in the Benefits fund reserves and has no impact
on services or other Offers.
Snm In arc of Ch:m�es-
2013 :\mount
21114 Ammint Voles
- Rrenm men ded Budget Tnlal Appropriations
S 483J177.661
? 4911.389.409
- Ot'fers Funded per Comeil Direction
1,699.516
1.451I,682
- Blinlinutimis and AIndification.s Snbintal
(4511.14,S)
(317,256)
- Reed Ullaled 011l'I196.1 Bencill9 rI"IW I':I III aml Set Aice,
(677.042)
(13U.S38) lNo impaet... I t111n111N
-Shil'1111 Otter 1115.13 N URC O,er pa,,, lu 2013
1,2111L0110
(1?II0II0II)
-Other misce161ucous chat""es (It ansfers, nun GF ('OI's. etc.)
-(172.5SI1)
(4112,204)
Proposed Rud,,ct Total>ppr,pi intions
54S4.677.4I11
S4SS,53(093
This annual Appropriation Ordinance sets the amount of $483, 445, 062 to be appropriated for fiscal
year 2013. Including the 2013 adopted budgets for the General Improvement District (GID) No.
I of $193,666 and the Urban Renewal Authority (URA) of $1,038,682 the total City operated
appropriations amount to $484, 677, 410. Below is a summary of the proposed 2013-14 Ciry budget.
City Budget (in $ million)
Operations
Debt Service
Capital
Total Ciry Operated Appropriations*
Adopted 2013 Adopted 2014
$431.3 $440.4
21.2 20.5
32.2 27.6
$484.7 $488.5
Less Urban Renewal Authority (URA) (1.0) (1.8)
Less General Improvement District (GID) (0.2) (0.2)
Total Ciry of Fort Collins Appropriation $483.5** $486.5
* This includes GID and URA which are appropriated in separate ordinances.
** Delta due to rounding to $K
FINANCIAL/ECONOMIC IMPACTS
This Ordinance sets the annual appropriation for fiscal year 2013 in the amount of 483, 445, 062.
The Ordinance also sets the Ciry mill levy at 9.797 mills, unchanged since 1991.
ENVIRONMENTAL IMPACTS
The Budget contains multiple offers that will have positive environmental impacts, particularly those
funded by the Environmental Health Result Area.
PUBLIC OUTREACH
In preparation for First Reading of the 2013-14 Budget, there were two public hearings, as well as
an online tool whereby citizens could vote for the Offers for programs and services most important
to them. The data from the online tool was presented to Council for their review. Additionally,
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October 16, 2012
during the budget development there was a citizen on each of the Result Teams and two public open
houses were conducted to gain citizen input. "
Mike Beckstead, Chief Financial Officer, provided an overview of the proposed budget, including
the various changes that have been made since the original proposed budget. New additions include
the Poudre School District after -school program, the Arts Incubator, and the Great Lawn program.
Beckstead detailed the changes in funding which will allow for funding these additional programs.
City Manager Atteberry discussed the City's high credit rating and financial stability.
Rob Kagen, Parks and Recreation Boardmember, thanked Council and staff for hard work on the
budget.
Ann Hutchison, 402 Riddle Drive, Fort Collins Chamber of Commerce Executive Vice -President,
requested a delay in the adoption of the integrated recycling facility and supported the strong
economi ic health budget items.
Pranaya Sathe, Youth Advisory Board Chairperson; supported funding for the after -school program.
Irene Vernon, 6709 Poudre Canyon, supported funding for the after -school program.
Alex Blackmer, 430 West Myrtle Street, The Atmosphere Conservancy, supported funding for
renewable energy programs, the Fort Collins Solar Program, and electric vehicle charging stations.
Cheryl Distaso, Fort Collins Community Action Network, supported funding for the affordable
housing funding enhancement, the after -school program, and the extension of Dial -a -Ride to the
southeast part of town.
Dan Garvin, Colorado Iron and Metal, opposed the integrated recycling facility.
Rachel Vernon, 204 North Roosevelt, Northside Atzlan Advisory Board Co -Chair, supported
funding for the after -school program.
Mike Pruznick, 636 Castle Ridge Court, supported funding for Dial -a -Ride services in the southeast
part of town, and questioned the District 1 crime prevention funding.
Eric Sutherland, 3520 Golden Currant, opposed the integrated recycling facility and funding for
electric vehicle charging stations.
Roger Hageman, 3501 East Prospect, Hageman Earthcycle, opposed the integrated recycling facility.
Angelica Stole, Fort Collins resident, supported funding for the after -school program.
Ross Cunniff, 2267 Clydesdale, Energy Board member, supported funding for feed -through tariffs
and solar project. He stated the Board conditionally supports the electric vehicle charging stations.
He supported additional recycling options in the city.
Robert Hau, 1109 Heatherwood Lane, commended Council and staff on the budget.
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October 16, 2012
Councilmember Kottwitz requested input regarding the Council agenda improvements item. City
Manager Atteberry replied that item was included in the initial recommended budget; however, it
was not supported by Council and has been removed. City Clerk Nelson replied the software would
automate the agenda process for all departments. City Manager Atteberry noted additional work on
the item could reduce costs and result in a better product.
Councilmember Kottwitz asked about the possibility of having a searchable database relating to
Council voting. City Clerk Nelson replied one software product that was researched would provide
that service.
Councilmember Manvel stated that this item does appear to be a process improvement; however,
it is unclear how much staff time the product would save. He stated he would support the item given
a lesser cost.
Councilmember Kottwitz requested input regarding the integrated recycling facility. City Manager
Atteberry stated this facility would not be anti -business. This facility would divert refuse from the
landfill and noted its location will hopefully be more centrally located within the city than the
county landfill and recycling facility. Lucinda Smith, Interim Director of Environmental Services,
noted the current budget offer has to do with land acquisition and basic facility construction. The
operation of the facility is envisioned to go to the private sector.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. H2, 2012, on First Reading.
Councilmember Manvel suggested a type of grant program be applied to the workplace safety
initiative fund and requested comment on that suggestion. Mike Beckstead, Chief Financial Officer,
replied that characterization of the fund is accurate. Additionally, safety audits are conducted which
may lead to issues needing to be resolved.
CouncilmemberManvel made a motion, seconded by Councilmember Poppaw, to amend the motion
to add offer 25.10 back into the budget.
Councilmember Horak questioned the need for including this item as it does not need funding from
the budget. Beckstead replied the spending of what comes out of the self-insurance fund requires
Council approval and must be part of the spending appropriation.
Councilmember Horak questioned the need to have a fund regarding safety as those types of issues
should be taken care of preemptively. City Manager Atteberry replied these safety improvements
require an appropriation.
Mayor Pro Tem Ohlson stated he would support the amendment as the budget is a compromise
document.
The vote on the motion to amend was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson,
Poppaw, Horak and Troxell. Nays: none.
THE MOTION CARRIED.
MW
October 16, 2012
Councilmember Kottwitz expressed concern regarding the proposed recycling center and
encouraged communication with the private sector prior to Second Reading. She stated she would
not support the item unless it is designed to be run by the private sector. She supported expanding
Dial -a -Ride service to the southeast part of town and expressed concern regarding the proposed
electric vehicle charging stations. ,
Mayor Pro Tem Ohlson noted the proposed recycling center is not going to be completely privately
run but will be designed to complement existing private facilities.
City Manager Atteberry requested staff input regarding the proposed electric vehicle charging
stations. Steve Catanach, Light and Power Operations Manager, stated the electric vehicle charging
stations are proposed to aid in relieving range anxiety for electric vehicle drivers and to illustrate
that Fort Collins is an electric vehicle -friendly city.
Councilmember Horak asked if there is a charge to users of the stations. Catanach replied the funds
to pay for the electricity would be covered through the parking fees and is a relatively small amount.
Councilmember Horak asked about the park maintenance item being listed as a project. Beckstead
replied it will be examined prior to Second Reading.
Councilmember Horak asked about connections between the Mason Street Corridor across to the
east side of College Avenue. City Manager Atteberry replied the Midtown study, now underway,
will address those connections.
Councilmember Troxell supported examination of the agenda software topic prior to Second
Reading. He supported the electric vehicle charging stations and commended the budget and staff
work.
Councilmember Horak requested additional context regarding the vehicle charging stations. City
Manager Atteberry assured Council that additional context would be provided prior to Second
Reading.
Councilmember Poppaw commended staff work on the budget. She supported funding southeast
Dial -a -Ride service. She encouraged a balance between innovation and basic community needs.
Mayor Weitkunat noted this budget allowed for additions rather than cuts due to the voter -approved
tax increase. She noted all of the available funds were not allocated and agreed the budget reflects
cooperation and compromise.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, 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.)
October 16, 2012
Items Relating to Utility Rates Fees and Charges for 2013 Adopted on First Reading
The following is staff's memorandum for this item.
"EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 113, 2012, Amending Chapter 26 of the City Code to Revise
Water Rates and Charges.
B. First Reading of Ordinance No. 114, 2012, Amending Chapter 26 of the City Code to Revise
Electric Rates, Fees and Charges.
C First Reading of Ordinance No. 115, 2012, Amending Chapter 26 ofthe City Code to Revise
Electric Development Fees and Charges.
The following monthly rate increases are recommended for 2013:
Service % Annual increase
Water 4.0%
Electric 4.33%
The proposed water increase is a flat 4% across the board to all customer classes. The electric rate
increases which average 4.33%are proposed to vary by customer class from 3.35% to 5.33%. The
proposed changes will impact individual electric customers more or less than the customer class
averages and will vary by season. Electric development fees are proposed to decrease an average
of 2.4% for residential and decrease an average of]. 6% for commercial development. There are
no changes in the monthly rates for wastewater or stormwater services being proposed for 2013.
With the rate changes contained in the proposed Ordinances, a typical single family customer's
monthly utility bill will increase 55.01 in the summer from S162.96 to 5167.97 and 52.95 from
$131.03 to $133.98 in non -summer months.
BACKGROUND /DISCUSSION
The recommended 2013 rate increases reflect the rates and revenues that are proposed in the City
Manager's Recommended 2013-2014 Budget. A11 proposed rates would be effective for meter
readings on or after January 1, 2013.
A. Monthly Water Rates - First Reading of Ordinance No. 113, 2012, Amending Chapter 26
of the City Code to Revise Water Rates and Charges.
Staff proposes a 4% water rate increase. The need for this increase is due to the High Park Fire.
The increase is a flat across the board increase to all rate classes. With the proposed rate, a typical
single family residential customer's monthly bill will increase 4% as shown in the following table:
87
October 16, 2012
Single Family Typical Use
2012 Monthly
Water Bill
Proposed 2013
Monthly Water Bill
$ Increase
% Increase
Winter 5,000 gallons
$25.58
$26.60
$1.02
4%
Summer 15,000 gallons
$51.33
$53.37
$2.05
4%
Monthly Average*
$33.67
$35.01
$135
4%
*Average based on seasonal use of 98.000 gallons per near
The High Park Fire in June 2012 affected the watershed serving Fort Collins Utilities on the Cache
Le Poudre. Initial estimates of costs associated with stabilizing the soil suggest it could cost Fort
Collins Utilities up to $10 million. With the City of Greeley and the Tri-districts also being affected
by the fire, inter -governmental coordination of these erosion control efforts have reduced the
estimated cost for soil stabilization by Fort Collins Utilities to $4-5 million. Fort Collins Utilities
continues to work with federal agencies to determine if any federal funds exist to reimburse Fort
Collins Utilitiesfor these efforts. At this time Fort Collins Utilities cannot be assured ofanyfederal
funds in 2013, yet the mitigation efforts need to continue in the spring of 2013.
There was an increase in demand for water during the hot, dry 2012 summer which is not expected
to continue into 2013. The longer term trend ofdecreasing demand due to conservation efforts has
resulted in operating revenues remaining at the same level over the last 5 years even with the recent
rate increases (3% in 2007, 2010 and 2011 and 6% in 2012). Some revenue growth is expected in
2012 over 2011 due to higher demand. However, it is not sufficient to maintain water rates at the
2012 levels given the uncertainty around the weather and the anticipated increase in operatingand
maintenance costs associated with the High Park Fire. The vast majority of the costs of operating
the water system are fixed and do not vary based on customer demand. However, the High Park
Fire has affected the metal content in water taken from the Cache Le Poudre resulting in higher
variable treatment costs for the foreseeable future.
This rate increase is not related to Halligan Reservoir which is to be funded from the Water Rights
Reserve. The Water Rights Reserve is funded by developers' cash -in -lieu -of water rights payments
and is restricted to the purchase of water rights and water storage only.
A new rate class is being proposed far service to commercial customers with an average daily use
in excess of 2.0 million gallons.
B. Monthly Electric Rates - First Reading of Ordinance No. 114, 2012, Amending Chapter
26 of the City Code to Revise Electric Rates, Fees and Charges.
Fort Collins wholesale and retail electric rates are among the lowest in the region and nation. This
will continue to be true following the 4.33% electric rate increase proposed for 2013. The 4.33%
increase is the system annual average and will not be applied to all customer rate classes. Based
on a cost -of -service study the proposed rates vary by rate class and season as follows:
October 16, 2012
Proposed Rate class Inerenses for 21113
Indi,;dwil rll.IIII lee, „ill \'111'\limit Ills t'I:IK ill ctl c.
' Sununu illcre:ues (.little, .IuhY S Ail,,.) will he Greater Haan m all ili.e.
Nan-Suuuuer
Sunnner
.lan -dlac. ,\nn fill :\vera Ge
luu - auG
,Sep - Dec
Re'identiltl lillcl'* Rifle
J.I'7
3.2'%
3.:"/,.
ReNdelaml Uelll:llld R:lll•
],]'%
3, G,%
3.4'Z,
t ie11,'fill S U n let- (]Illnll atl l l l l l l eI cI:II Ic's (11illl ]i kW)
a,9'%,
3.7"/.
4.1'%,
Gt'llea ill ',,a i ice 25 (mmill t'1II111nci-c I:11 bum cen 25-49 I(\\')
J.$'%�
3.S'%
4.1'%,
Gencenl Seal ice ill (nlydiu ill cunmlercial br(u'evn 50-749 I:\\')
3.9%
4.111/4
4.3'%,
Grnrral Sere ice 750 (I:u '--e canitindn.o' ial Greif R•r Ilmu 749 I:\\')
I
Su6nlaliou Sell ice (induslriel Iil'ucllr li(0ul it eu6euuiun)
5.5'%
5.3'Z,
5.3'%.
T1111tic SiGnals
3.S'%,
3.S'%
3.S'
Ilaaali,elit,
ILII'7
0.0'Z,
:AI erwg• $\Sit- IfI Incrall ee
4.6'%,
3.9'%
This is a new rate class proposed for 2013
The 4.33% overall annual increase consists of a 3.83% increase for purchased power from Platte
River Power Authority (PRPA) and a 0.5% increase for the new Fort Collins Solar Program, which
is included in the City Manager's Recommended Budget.
Platte River's 2013 purchase power rate increase is due to several key factors:
Reduced surplus sales
Increasedfuel costs
Increased renewable energy costs
The higher increases for the commercial rate classes are due to purchased power costs being a
higher percentage of total costs for these rate classes.
A new rate class is being proposed for service to industrial customers connected directly to a
substation. Customers who qualify for this rate class do not share in the costs associated with the
operation and maintenance of the distribution infrastructure between the substations and meters.
The renewable energypurchased from PRPA is increasing from $0. 019 per kilowatt-hour to SO.024
per kilowatt-hour. This increase is due to the higher costs ofpurchasing Renewable Energy Credits
(RECs) with the associated energy compared to purchasing RECs that are not bundled with the
associated energy. Maintenance and decommissioning costs for some of the Vestas turbines at
Medicine Bow are also accounted for in the price increase.
October 16, 2012
Staff is also proposing to delete the Code duplication and clarify the terms ofpayment for each rate
class by referring all rate classes to Section 26-713.
Monthly Utility Bill Summary
The following chart summarizes the impact of the proposed rate changes on a typical single family
residential customer during the summer.;
Typical Residential Customer - Monthly Utility Bill
Current
Estimated
$
%
SUMMER
2012
2013
Increase
Increase
Electric
$66.49
569.46
52.97
4.5%
700 kWh/mo
Wastewater
4.800 val/mo
$30.88
$30.88
50.00
0.0%
yvQA
Stormwater.
8,600 sq.ft. lot.
$14.26
S 1426
$0.00
0.0%
light runoff '
Water
$51 -33
553.37
52.05
4.0%
15.000 aalhi
Total Estimated
Average
$162.96
5167.97
$5.01
3.1%
Monthly Utility
Bill
The following chart summarizes the impact of the proposed rate changes on a typical single family
residential customer during the non -summer months:
Typical Residential Customer - Monthly Utility Bill
WINTER
Current
Estimated
$
%4
2012
2013
Increase
Increase
Electric
$60.31
562.24
51.93
3.2%
700 kWh/mo
Wastewater
4,900 eal/mo
$30.88
530.88
$0.00
0.0%
W QA
Stormwater
8,600 sq.ft. lot,
$14.26
S 14.26
$0.00
0.0%
h(ht I'nnoff
Water
$25.58
526.60
$1.02
4.0%
5.000 -, I/mo
Total Estimated
Average
$131.03
$133.98
$2.95
2.2%
Monthly Utility
Bill
October 16, 2012
The average non -summer utility bill is expected to be $142.80 in 2013 and the average utility bill
in the Summer is expected to be $183.51 in 2013, or 29% higher than the non -summer bill.
The following two charts compare Fort Collins Utilities' monthly utility bill to others along the
Front Range in 2012 at non -summer rates and then at summer rates.
$1E0
2012 Residential Rate Compml ison
Winter Water Use - 5.000 Gallons
$140
$100 .
$80
$50
$40
$213
i3t
$
Lengmorrt
Lo oeland
Denver
Boulder
Greeley
Ft. Collins
Aura ra
Co Sprs
ElSYonrnv-ater
$7.77
$ -139
'$9A0
$725
$$5.03
$916
$R.Y
$.
❑Vi6steurater
$2151
1 $C4.11
$Y, f,0
$21.47
$2053
$30$3
$T7.43
$3127
❑VUaler
$114X
$NL2
1.18.70
$20.P
$27.80
$2557
$38.41
1 $31169
■E aric
$55.70
1 $5725
$70.54
$7054
$7054
$EO �:1
$7054
$7799
$250
2012 Residential Rate Comparison
Summei Watel Ilse 15.000 Gallons
$200
$150
$100
$50
'
+s-ems
Loveland
Longmont
Boulder
Denver
Ft. Collins
Creeleq
Aurora
Co.Sprs
0c'or-n er
$U39
$7.77
$7Z
$9DL
$14M
$5&.
sa5
❑1fVa;tw�aer
$13'fl
$2151
$2147
$'5a3
$3D�
$37�4
$1V.4t
$3t27
�UUater
$, L�
$�.12
$4294
$5433
$5t42
$83.43
$9111
$g351
■ Electric
$W-%
$5576
$E0.77
$00.77
$Epi.4?
$E0.7'i
$E0 7
$77.99
91
October 16, 2012
C. Plant Investment Fees (PIFs) and Electric Development Fees - First Reading of
Ordinance No. 115, 2012, Amending Chapter 26 of the City Code to Revise Electric
Development Fees and Charges.
City Code requires staff to present water, wastewater and stormwater plant investment fees to
Council for approval no less than every other year. These fees were last changed in 2011 effective
on January 1, 2012. No changes are recommended for 2013 for water, wastewater and stormwater
plant investment fees.
Electric Development Fees
Electric development fees are also required to be approved by City Council no less than every
second year although historically staff has recommended annual changes. The current electric
developmentfees were approved by Council in 2011 and were effective January 1, 2012. There is
a small decrease in fees recommended for 2013.
Electric development fees recover both actual on -site costs (buildingsite charges) and allocated off -
site costs (electric capacity charges) to serve commercial or residential development. These fees
are adjusted annually to reflect changes in costs oflabor and materials. While some costs continue
to increase, an adjustment to the development fee model used to calculate the fees has resulted in
a decrease in costs ofapproximately 2%for most developments. The table below shows the changes
for a typical single family lot and a model commercial development.
Typical Single Family Lot
8600 square foot lot. 70 foot of street frontaee. 150 amp service.
4/0 secondary service
Current 2012
Proposed 2013
S Change
% Change
$3,233
$3,156
($77)
-2.4%
Model Commercial Development
82,000 square foot lot, 190 ft street fiontage. 250 ft primap service.
600 amps, 208Volt. 3-phase. I- transformer
Current2012
Proposed 2013
S Change
% Change
530.981
$30,471
($510)
-1.6%
FINANCL4L /ECONOMIC IMPACTS
The rates are projected to increase 2012 annual operating revenues of the Water Fund by 4% and
the Light and Power Fund by 4.33%. The projected revenue from the rate increases is included in
the City Manager's Recommended 2013-2014 budget projections. The increases are necessary to
fund purchased power, the Fort Collins Solar Program, and to ensure treated water quality is not
diminished as a result of the High Park Fire.
The proposed rate ordinances will increase costs for a typical residential customer by $5.01 in the
summerfrom$162.96to$167.97and $2.95from$131.03to$133.98innon-summer months. Utility
92
October 16, 2012
programs can help customers to reduce their water and electric use and to lessen the financial
impact of the rate increases.
ENVIRONMENTAL IMPACTS
Fundingfrom the proposed electric rate increase will allow the Utilities to continue programs and
services aimed at meeting the goals and objectives of the Energy Policy and Climate Action Plan.
Accurate seasonal price signals may delay/avoid the need for additional peak electric generation.
Water rates provide fundingfor conservation programs and environmental regulatory compliance.
BOARD /COMMISSION RECOMMENDATION
At its September 20, 2012 meeting, the Water Board unanimously voted to recommend approval of
the proposed 2013 water.
The Energy Board unanimously recommended approval of the proposed 2013 electric increase at
its October 4, 2012 meeting. The draft Board minutes are attached.
PUBLIC OUTREACH
Notice of the proposed electric rate changes was published in the Coloradoan on ,September 30,
2012, and a mailing was sent city electric customers outside of the city limits in accordance with
state requirements. Commercial customers have been advised of the proposed increases.
Staff plans to conduct outreach to all customers following adoption of the Ordinances. "
Brian Janonis, Utilities Executive Director, introduced the three ordinances relating to water and
electric rates.
Lance Smith, Utilities Strategic Financial Planning Manager, stated the impact of the proposed rate
increases will be a 4.3% increase to the electric fund and a 4% increase to the water fund. The
electric increase will vary by customer class and seasonally. The water increase is an across-the-
board increase. There are two components to the electric rate increase: 3.83% of the increase is the
retail impact of Platte River Power Authority's wholesale increase and 0.5% increase is for the Fort
Collins Solar Program. The water fund increase is due to mitigation efforts and increased treatment
costs due to the High Park Fire. The third Ordinance for Council consideration is related to Plant
Investment Fees which need to be updated every two years. If approved, the new rates would go
into effect January I, 2013.
Eric Sutherland, 3520 Golden Currant, stated Fort Collins is not in a leadership position in the
electric utility field. He questioned the change in utility bills showing only two months of prior
usage rather than twelve months.
Mike Pruznick, 636 Castle Ridge Court, requested information regarding the length of time for the
water fund increase and asked about federal rebates being applied to rate categories.
Ross Conniff, 2267 Clydesdale; stated the Electric Board supports the proposed Ordinances.
93
October 16, 2012
Smith stated the twelve month usage information was removed from the utility bills due to the lack
of space on the paper; however, customers using on-line billing have access to the past twenty-four
months of billing history. The substation rate is new because no customers have previously been
served directly from a substation; that is anticipated to occur in 2013.
Councilmember Horak asked what rate those on net metering receive. Janonis replied the net
metering rate is the lowest residential summer rate.
Councilmember Horak requested commercial rate information be provided priorto Second Reading.
Janonis replied it would be provided.
Councilmember Marvel asked about the substation rate. Smith replied the customers have a direct
connection to the substation and have committed to maintaining the infrastructure from the
substation.
Councilmember Troxell asked about public outreach to commercial customers. Janonis replied key
customer accounts luncheons have occurred three times this year.
Councilmember Troxell stated he opposes the tiered rates as they will create higher peaks. He asked
when a report will be available regarding the tiered rate program. Smith noted several parameters
changed this year, including record heat and the High Park Fire, making the isolation of the impact
of the tiered rates difficult. Much of the increases to utility bills were driven by water consumption.
Councilmember Manvel noted Utilities did provide data relating to tiered rates and acknowledged
those rates were skewed due to abnormal summer conditions. When normalized, the data did not
appear to show higher peaks.
Councilmember Kottwitz noted her constituents are served by the Fort Collins -Loveland Water
District and asked about potential increases in rates there. She asked about potential federal
reimbursement for High Park Fire costs. Janonis replied the Fort Collins -Loveland Water District
has experienced extremely high demands and is currently in debt to the City for millions of gallons
of water. Some reimbursement will occur in terms of the Fire; it will help with the mitigation and
revegetation. -However, additional financial impacts remain.
Mayor Pro Tern Ohlson asked if residential users are subsidizing commercial and industrial users.
Janonis replied cost of service studies are conducted for all utilities to ensure no subsidies are
occurring. There is a great deal more infrastructure servicing residential customers.
Councilmember Manvel made a motion,.seconded by Councilmember Poppaw, to adopt Ordinance
No. 113, 2012, on First Reading. Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Kottwitz, Horak and
Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. 114, 2012, on First Reading.
0
October 16, 2012
Councilmember Horak noted the majority of the rate increase is due to the Platte River Power
Authority increase.
Mayor Pro Tern Ohlson noted the rate increase is not being used to fund basic government services.
Councilmember Kottwitz expressed concern about the return on investment for energy efficiency
programs. She stated she agrees with the pass -through vote but is concerned about the rate structure
changes and will not support the motion.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Ohlson, Poppaw; Horak and
Troxell. Nays: Kottwitz.
THE MOTION CARRIED.
Councilmember Manvel made a motion, seconded by Councilmember Poppaw, to adopt Ordinance
No. 1 15, 2012, on First Reading. Yeas: Weitkunat, Manvel, Ohlson, Poppaw, Kottwitz, Horak and
Troxell. Nays: none.
THE MOTION CARRIED.
Resolution 2012-096
Approving an Agreement Between the City and Avago Technologies
Wireless (USA) Manufacturing, Inc., to Provide Business Investment
Assistance for Phase Two of the Building Four Retrofit Adopted as Revised
The following is staffs memorandum for this item.
"EXECUTIVE SUMMARY
This Resolution considers a Business Investment Agreement between the City and Avago
Technologies R'ireless Manufacturing, Inc. (A vago Technologies). The A vago Technologiesproject
will consist of building out the remaining 12,160 square feet space in Building 44 and making
substantial equipment purchases on their FortCollins campus, representing an investment of
approximately 5165 million and 135 new jobs. The Agreement provides two investments: (I) a use
tax rebate (expected to span two years) on manufacturing equipment purchased as part of the
expansion, and (2) a personal property tax rebate on the same equipment for ten years. The City
of Fort Collins' Business Investment Agreement requires Avago Technologies to meet several
performance metrics: (1) the continued operations ofBuilding 94 for manufacturingfor a minimum
duration of the rebated years, (2) purchase certain equipment that add substantial value to the Fort
Collins property, and (3) the creation of 135 new jobs at their Fort Collins campus. Both
investments relate to revenues the City would not otherwise collect if the expansion did not occur
within the City. In terms of evaluating the investment agreement, the ratio of private investment to
total public investment is S27:S1.
BACKGROUND /DISCUSSION
NOTE: The Economic Health Office (EHO) recognizes the need for continued improvement of the
process of developing economic assistance packages. To that end, EHO has made several
95
October 16, 2012
refinements to the process and agreements in the past nine months. However, these improvements
are not sufficient alone. The EHO plans to develop a complete framework to guide the economic
assistance process, specifically tax rebates. The framework will include improved evaluation
criteria, an enhanced economic impact analysis model (including both revenues and costs), and
refined performance measures. Tentatively, the EHO plans to present a draft framework to City
Council at the January 22, 2013 work session. In the meantime, the EHO will continue to improve
the process and agreements where feasible while working through the projects in the pipeline.
The City of Fort Collins does not enter into Business Investment Agreements lightly. In the last 7
years, the Economic Health Office (EHO) has broughtforth three Business Investment Agreements.
The EHO anticipates bringing.forth two similar packages — the current Avago Technologies
agreement before Council and another one in the near ,future. Negotiations with company
representatives started in early 2012. Avago Technologies reviewed three sites —Fort Collins, CO,
Texas, and Singapore. The collaboration between with city, county and state has allowed Fort
Collins to stay competitive within the site selection process. City staff reviewed City Plan as its
guiding principal in negotiations. City Plan policy EH 1.1 reiterates the importance ofsupporting
the enhancement of the community's economic base and job creation by,focusing on retention,
expansion, incubation and recruitment efforts that bring jobs and import income or dollars to the
community, particularly businesses in the adopted Target Industry Clusters. Avago Technologies
is a vital employer in the Technology (Chip R&D) Cluster. The importance of business support and
talent management is also reiterated in the newly adopted Economic Health Strategic Plan.
As stated in the previous paragraph, the total assistance package includes collaboration between
the City of Fort Collins, Larimer County, and the State of Colorado. The City of Fort Collins' total
investment package has a value of approximately 54.5 million, with the overall investment package
valued at approximately $5.9 million. City Council is being asked to consider the City of Fort
Collins'portion ofthe incentive package ofapproximately $4.5 million. Ofthe City's approximately
54.5 million incentives proposed, 51.3 million is presently allowable through the existing
manufacturing use tax rebate (MUTR) policy. The 1.5 percent rebate allowable through the MUTR
policy is subject to annual review and subsequent approval by the City's Financial Officer per City
code. The additional 52.6 million in manufacturing use tax rebates and 5629,100 of personal
property tax rebates (overa 10 yearperiod) need City Council approval. The State of Colorado's
Office of Economic Development and International Trade (OEDIT) has earmarked $337,500 in
Strategic Funds and $116,800 in Colorado First Training grants. The Lorimer County
Commissioners are reviewing the request for S930,100 on personal property tax rebates over 5
years. Larimer County is expected to make their decision after approval from the City of Fort
Collins City Council.
Over the next 10 years, the company's investment will directly generate an estimated $2.6 million
in tax revenues after the rebates for the City of Fort Collins. This revenue includes the sales and
use tax on construction materials, real and personal property taxes on the new building and
equipment, and additional sales tax revenues over the rebated period generated by the direct and
indirect jobs created by the expansion. The diversified jobs (from technicians to engineers) created
by Avago Technologies will assist in alleviating some of the skills mismatch identified in the
Economic Health Strategic Plan. In addition, the ripple effects of the expansion through spin-off
jobs as employees spend their paychecks in the region on food, clothing, and other goods and
services.
October 16, 2012
In 2006, the City of Fort Collins commissioned a study to evaluate the geographic concentration and
interconnectedness of companies within the community in order to determine potential industry
clusters. The study identified several existing and emerging industry clusters. The identified
clusters were modified into five targeted industry clusters, which became the focus of job creation
activities. These clusters included: Clean Energy, Bioscience, Technology (Hardware & Software),
Water Innovation, and Uniquely Fort Collins.
On August 17, 2010, the City of Fort Collins adopteda Resolution authorizing anddirecting the City
Manager to continue to support the following: participating in the formation and development of
cluster initiatives relating to the identified targeted industries of the City' working with regional
partners and local business entities to develop strategic plans for the clusters, and; supporting the
advancement of the plans as they are implemented for the purpose of primary job retention,
expansion, and creation.
In June 2012, the City of Fort Collins adopted the Economic Health Strategic Plan (EHSP) as a
continuous evolution ofthepreviouseconomic planning efforts. The EHSP has identiifiedfourgoals
as the pillars of the plan:
1. Facilitate a stronger support network for existing employers, new businesses, and small
business;
2. Enhance the innovation ecosystem and the economy that supports companies at all stages
and aligns with City goals;
3. Create a system for talent development, retention and recruitment that responds to and
anticipates employers' needs,
4. Develop community assets and infrastructure necessary to support the region's employers
and talent.
This Resolution addresses the Economic Health Office's goal of facilitating a stronger support
netx,orkfor existing employers, new businesses, and small business by diversifying the employment
and tax base of the community. In addition, the EHSP acknowledges the negative economic and
community impact of a primary employer closing or relocating outside of the City of Fort Collins.
COMPANY BACKGROUND
Avago Technologies has a 50-year history of innovation dating back to its origin within Hewlett-
Packard Company (HP). The company began as HP's components division back in the early 1960s,
and thrived therefor three decades. When HP spun offAgilent Technologies in 1999, the company
became Agilem's Semiconductor Products Group (SPG) and expanded into new markets and
applications. In late 2005, SPG was acquired by several private equity partners and Avago
Technologies was founded. Avago Technologies is a leading global supplier of analog interface
components for wireless, wireline, and industrial applications. Over the years, Avago has
assembled a team of over 2, 000 design and product engineers, and maintains highly collaborative
design and product development resources around the world that have resulted in the development
of numerous innovative technologies. Avago Technologies currently employs approximately 700
people in Fort Collins.
Lyl
October 16, 2012
BUSINESS ASSISTANCE
The City of Fort Collins' Economic Health Office (EHO) does not use a "one size fits all " approach
when it comes to Business Investment Agreements. The request for tax incentives involves a multi-
step process. After initial contact/request and investigation, the EHO drafts a package based on
detailed informationfrom the company in regard to estimated costs for expansion and/or relocation,
estimated new jobs, etc. After development of the Business Investment Agreement, the Economic
Health Director and staff present the information to the Economic Advisory Commission and the
Council Finance Committee for their feedback and recommendations. After feedback and
recommendations from these committees, the Business Investment Agreement is presented to City
Council for their consideration.
The Business Investment Agreement being offered to Avago Technologies is consistent with both the
EHSP and the City Council directives:
• Theproposed Business Investment Agreement rebates tax revenues generated by theproject,
without the project these revenues would not be received by the City.
• The EHSP clearly identif es business retention and expansion as a principal goal for the
City's job creation efforts over business attraction; the proposed expansion supports this
goal.
• City Plan calls for creating a diversity ofjobs that enables citizens and businesses to thrive;
the proposed expansion provides an array ofjobs and salary ranges. Most importantly, the
expansion creates much needed high-tech manufacturing jobs.
It should be noted that Council has not yet approved the proposed Business Investment Agreement,
but ifapproved, expenditures are expected to occur in 2013-14. The EHO is responsible for putting
in a Budge[ Offer for this project. Ifthat Offer is bought, the appropriation (authorization to spend
up to that amount) will be complete. However, Council will still be required to authorize the
Business Investment Agreement and appropriation. Revenue expected to be budgeted for this deal
is being budgeted in 2013-14 in an isolated funding source account. Payments would only be made
up to a maximum of the offer amount and would be dependent upon the deal specific revenue
received.
PROJECT OVERVIEW
Avago Technologies plans on building out the remaining 12,160 sq ft of clean room space in
Building #4 and making substantial equipment purchase on their Fort Collins campus. The initial
package was submitted to A vago Technologies confidentially. Thefinalassistancepackage includes
additional estimated assistance incentives from both the State of Colorado and Lorimer County.
These incentives will ultimately require the approval of their respective groups. In the case of the
State Strategic Funds, the Colorado Economic Development Commission earmarked $33 7,500for
this project on March 8, 2012. Additionally, the Colorado Office of Economic Development and
International Trade (OEDIT) have earmarked $116, 800 in Colorado First training grants on March
23, 2012. A formal application from Avago Technologies will be required to finalize both of these
state incentives. -The Lorimer County Commissioners will review the request for personal property
tax rebate assistance. The City of Fort Collins' Economic Health Office has met with the Larimer
County Manager and Assistant Manager to discuss the process and timeline for the assistance
package. In May 2012, the Economic Health Director gave an initial presentation to the Lorimer
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October 16, 2012
County Commissioners and the Commissioners asked that this be brought forth after City of Fort
Collins City Council approval. Since Lorimer County has a new County Manager, on June 6, 2012,
the Economic Health Director has had a follow-up discussion with County Manager Hoffmann
about Avago Technologies Business Assistance Package.
The City of Fort Collins uses a variety of local investments to assist primary employers with
expansion efforts. The total value ofthe proposed investment package is approximately S5.9 million
and includes local, county and state investments (approximately $4.6 million in local investment,
S930,100 in county investment, and $454, 300 in state investment). Of the City's approximate S4.5
million proposed incentives, SL 3 million is presently allowable through the existing MUTR policy.
The 1.5 percent rebate allowable through the MUTR policy is subject to annual review and
subsequent approval by the City's Financial Officer per City code. The additional $2.6 million in
manufacturing use tax rebates and S629,100 of personal property tax rebates (over a 10-year
period) need City Council approval. The use tax rebate includes a rebate for a full3.0 percent, and
will disqualify Avago Technologies for additional manufacturing use tax rebate on the same
equipment. This results in an approximate $3.9 million savings on the proposed equipment costs.
Both investments relate to revenues the City would not otherwise collect if the expansion did not
occur within the City. The ratio of private investment to overall total public investment is $27: $1.
The package includes the following items shown in Table 1:
Build -Out Building #4
Upfront Investments
Total
State: Strategic Fund (Earmarked March s, 2012)
$2,500 / Job 135 Jobs
$337,500
State: CO First Job Training Grants (Earmarked March 23, 2012)
$116,800
City: Manufacturing Equipment Use Tax Rebate
$3,882,200
Utilities: Integrated Design Assistance
$12.500
Total One Time
$4,349,000
On -Going Investments
Duration
Total
County: Personal Property Tax Rebate
5 Years
$ 930,100
City: Personal Property Tax Rebate
10 Years
$ 629.100
Total On -Going
$1,559,200
Grand Total All Investments
Source: City of Fort Collins - Economic Health
$5,908,200
It should be noted that the Business Investment Agreement is a performance -based offer. Avago
Technologies must make certain equipment purchases adding substantial value to their Fort Collins
property (Table 2), maintain manufacturing operations for at least the duration ofthe rebated years,
and meet certain job creation criteria (Table 3) in order to receive their rebates. The Agreement
includes a payback mechanism by Avago Technologies if performance requirements are not met.
The City of Fort Collins has modeled the job creation criteria on the Colorado Office of Economic
Development and International Trade's (OEDIT) Strategic Fund OEDIT's requirements state that
"each net new permanent FTE jobs shall be in addition to Grantee's existing employees/positions
in Colorado.... and shall be maintained for at least one year after such employee's hire date... "
Avago Technologies will work cooperatively with the Economic Health Office to verifyjobs created
(The Economic Health Off ces' Jobs Creation Performance Standards can be found in Exhibit D of
the Business Investment Agreement).
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October 16, 2012
Table 2: Equipment Location
Anticipated
Value
Percentage
of Tools
of Value
Location
Building 1
$6 Million
4%
Building 2
$18 Million
13%
Building 4
$118 Million
83%
Total
$142 Million
100%
Anticipated Jobs
Year Cumulative Jobs Anticipated Salaries
2013 Not less than 20
2014 Not less than 100
2015 Not less than 135
Total 135 $5.6M
The proposed expansion is anticipated to add 135jobs including:
• 10 Engineers with a starting pay of SI00, 000 annually;
• 22 Technicians with a starting pay of $60, 000 annually;
• 5Professionallevelsupportstaff(e.g.,procurementengineers,finance,facilitysupport)with
a startingpoy of $70,000 annually, and
• 98 Hourly Operators with a starting pay of S30, 000 annually (base salary calculation does
not include benefits or overtime and shift premiums).
• For a combined annual income of approximately S5.6 million.
Furthermore, Avago Technologies will work cooperatively with the City of Fort Collins' Sales Tax
Department, which is responsible for audits of the submitted use tax rebates. Avago Technologies
will provide a second schedule aspart oftheir monthly use tax returns that reflect estimated monthly
manufacturing equipment expenditures for this project. The purpose of the second schedule is to
allow the Sales Tax Department to isolate revenues collected that are earmarked for rebate to the
company. The City of Fort Collins and Avago Technologies agree that this separate second
schedule is an estimate and will need to be adjusted at the end of the year. The estimated monthly
manufacturing equipment expenditure schedule would be due by the end of each month.
FINANCIAL / ECONOMIC IMPACTS
Jon Roberts, Managing Director, and Caroline Alexander, Consultant, of TIP Strategies prepared
a Fiscal and Economic Impact Analysis of Avago Technologies planned clean room expansion
(Attachment 2).
The following summarizes the expected revenue to the City of Fort Collins generated by the
expansion:
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October 16, 2012
• The combined Personal and Real Property taxes generated over a 10 year period will result
in $1.2 million revenue collected by the City of Fort Collins. .
• Construction activity will generate 129 construction jobs and 144 equipment installation
jobs during the duration of the project. These initial jobs are expected to generate another
127 spillover jobs across the economy.
• Construction will generate an additional $462,000 in sales and use tax revenues on
materials and likely infuse $18.1 million in earnings into the regional economy.
• The 135 direct newjobs createdfor this clean room build-out.will support an additional 135
spinoffjobs. An average salaryfor the 135 direct new jobs created is estimated at $41, 500,
with 37 of the 135 new jobs starting at a salary at or above $60, 000 and 98 of the new jobs
starting at a salary of $30, 000 or more. The 135 direct new job average salaries do not
include healthcare and other benefits provided by Avago Technologies to their employees.
• The Fiscal and Economic Impact Analysis recognizes that addition sales tax and property
tax revenue will be generated by the spin-off jobs; however, the analysis provides a
conservative estimate of economic impact and does not estimate these revenues.
The proposed Business Investment Agreement outlines the expected expenditures anticipated by the
City of Fort Collins:
• All of the estimated $3.9 million in use tax revenue collected on the purchase of the
manufacturing equipment will be rebated (note: Avago Technologies will not be eligible for
additional MUTR on the same equipment from this expansion);
• Half of the estimated $1,258,200 in annual Personal Property Tax revenue collected on
equipment will be rebated for ten years for a total of approximately $629,100 (Attachment
5),
• Avago Technologies will take advantage of the Integrated Design Assistance offered by the
City of Fort Collins for a savings of $12, 500.
Note. other direct costs for infrastructure improvements (such as streets and utilities) were
upgraded during the original construction of Building 94, which are now sunk costs.
Net impact of the Business Investment Agreement is approximately $2.6 million in new revenue to
the City of Fort Collins or a $27: $1 comparison of private investment to total public investment
ratio, as shown in Table 4.
Table 4: Estimated Revenue, Rebate, and Net Revenue for the City of Fort Collins
On -Going Investments
Use Tax Rebate Allowable by Code (2 years)'
Additional Use Tax Rebate Requested for Consideration (2 years)'
Personal Property Tax Rebate (10 years)`
Real Property Tax Rebate
Construction Use Tax
Sales Tax
Total On -Going
' Annual year-to-year estimated schedule of rebates are provided as Attachment 6
Total
Estimated Total Net Revenue
Revenue Rebate over Rebate Period
$1,319,050
$1,319,050
$0
$2,563,100
$2,563,100
$0
$1,258,200
$629,100
$629,100
$574,500
$0
$574,500
$462,000
$0
$462,000
$919,200
$0
$919,200
$7,096,050
$4,511,250
$2,584,800
11111H
October 16, 2012
ENVIRONMENTAL IMPACTS
Avago Technologies anticipates an additional usage of 2 MW of electric power at build out and
about 30M gal of water, but that will come back to a 16M gal once the new system is running
(estimated 3 month spike). Water is essential to the operations ofAvago Technologies' Fort Collins
facility as it is used in many ofthe processes, as well as the cooling towers. The total usage will still
be below Avago Technologies peak ofseveral years ago. Existing infrastructure is already in place
to support these increases. City staffhas determined Avago's usage of overall City electricity is 5%
and water is approximately 3%. In addition, Avago Technologies continually works with the City
oJFort Collins' Utilities and Integrated Design Assistance program to improve energy efficiencies.
Furthermore, A vago, Technologies g. Avago Technologies is a Platinum Climate Wise partner with
the City oJFort Collins, the Environmental Protection Agency Gold "Environmental Leaders, "and
a charter member of the Colorado Industrial Energy Council group sponsored by the Governor's
office. Avago Technologies is currently in their 3'd year of a 5-year commitment to reduce electric
utility consumption on a "per unit basis, " and are currently at 30% reduction.
BOARD / COMMISSION RECOMMENDATION
Negotiations of the planned Avago Technologies expansion and related Business Investment
Agreement were conducted confidentially.
The Economic Health Office presented the Business Investment Agreement before the Council
Finance Committee on June 18, 2012 and was asked to review, and clarify information in regard to
the environmental impact and direct costs associated with Project Beta. The request for
clarification has been addressed in this agenda item summary.
The Economic Advisory Commission was first introduced to the project under the code name
"Project Beta" on May 16, 2012. The Economic Advisory Commission had a second discussion in
regard to Project Beta on.lune 20, 2012 and unanimously passed 6-0 their support ofthe assistance
package (Attachment 3). The commission believes that the Avago Technology's investment creates
financially attractive employment and the resulting skills add to our community's technical exposure
for other companies engaged in this technology segment. Furthermore, this awareness enhances
the quality ofA7orthern Colorado's employer portfolio for prospecting and closing other high quality
companies' interest in the region.
PUBLIC OUTREACH
Negotiations of the planned Avago Technologies expansion and related Business Assistance
Package were conducted confidentially. "
Josh Birks, Economic Health Director, described the current process used for developing business
incentive packages. He detailed the recent improvements to the process and discussed Avago's
contributions to the community. Birks detailed the purpose of the Resolution.
Ross Cunniff, 2267 Clydesdale, opposed the business assistance package.
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October 16, 2012
Ann Hutchison, 402 Riddle Drive, Fort Collins Chamber of Commerce Executive Vice -President,
supported the business assistance package.
Monte Barry, 415 South Howes, opposed the business assistance package without an exploration
of work conditions.
Bob Carnahan, 4325 Westbrooke Court, supported the business assistance package.
Doug Bettinger, Avago Technologies Chief Financial Officer, supported the business assistance
package and discussed Avago's history in Fort Collins.
Mike Pruznick, 636 Castle Ridge Court, opposed the business assistance package.
Tim Johnson. 1337 Stonehenge Drive, suggested the business assistance funds should be used to
.build up city infrastructure rather than be used to aid Avago.
Sharie Grant, 1455 Freedom Lane, OfficescapesNorthem Division President, supported the business
assistance package.
Joe Rowan, 621 Gilgalad Way, supported the business assistance package as being an investment
in the community.
Greg Woods, 2621 Rigden Parkway, supported the business assistance package.
Walt Delish. Northern Colorado Economic Development Corporation President, supported the
business assistance package.
Donna Chapel, Fort Collins Chamber of Commerce Chairperson, supported the business assistance
package.
David Palm, 4360 Shadowbrook Court, supported the business assistance package.
Glen Colton. 625 Hinsdale Drive, opposed the business assistance package as a whole, but supported
the rebate in manufacturer's use tax of $1.3 million.
Nancy York; 130 South Whitcomb, opposed the business assistance package.
Gina Janett, 730 West Oak, opposed the business assistance package.
Trudy Haines, 625 Hinsdale Drive, opposed the business assistance package as a whole, but
supported the rebate in manufacturer's use tax of $1.3 million.
Sam Solt, 1304 Teakwood Drive, supported the business assistance package.
Eric Sutherland, 3520 Golden Currant, stated payments in lieu of taxes should be considered as a
revenue source.
David May, Fort Collins Chamber of Commerce, supported the business assistance package.
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October 16, 2012
Councilmember Poppaw asked what percentage of the area median income is provided by the 98
jobs which will provide $30,000 incomes. Birks replied he was unsure.
Councilmember Poppaw stated the income level is 50% of the area median income. She asked what
kind of impact those job additions will have on Larimer County and the City of Fort Collins and
expressed concern that area social service programs will be strained. Birks replied staff has focused
on evaluating the income against a single average wage. The starting salary for these positions is
$30,000 before adding in benefits and the operators tend to supplement incomes with shift premiums
and position elevations. Birks stated staff can only speculate on how many of these individuals
would require support services.
Councilmember Poppaw requested that the Avago team address rumors of existing workforce
reductions. Mr. Bettinger replied there are no planned workforce reductions at Avago in Fort
Collins.
Mayor Pro Tent Ohlson noted a building permit for this expansion was pulled several months ago
and asked why this package is being billed as an incentive. Birks replied staff discovered this
information today and passed it on to Council immediately. He stated process improvements are
being examined.
Mayor Pro Tern Ohlson asked if there had been any knowledge of the pulled building permit. Birks
replied his staff had some knowledge Avago was moving forward in good faith but no one was
necessarily aware that building permit was pulled.
Mayor Pro Tern Ohlson questioned the analysis of the impact of indirect jobs. Birks replied staff
is committed to continuous improvement and stated all of the potential revenues should be analyzed.
One of the process improvements will be an evaluation of direct impacts as well as indirect impacts,
both from revenue and cost perspectives.
Mayor Pro Tem Ohlson asked how Avago performed in the last incentive package application and
questioned why that information was not included in this packet. Birks replied staff is committed
to annual audits; however, that has not been completed on the first Avago agreement.
Mayor Pro Tern Ohlson suggested process improvements for the future but stated he would support
the business assistance package as he is supportive of the expansion and retention of local
businesses. However, he stated he would not support packages in which the equipment has already
been purchased or building permits have already been pulled in the future.
Councilmember Manvel suggested the following type of statement should be considered for
inclusion: "failure of Avago to substantially retain its existing workforce in addition to the jobs
created will lead to a reduction in the City concessions contained in the agreement." He asked about
the accuracy of the statement made by Mr. May indicating that some communities in Colorado do
not have manufacturing equipment use taxes and personal property taxes. Birks replied the cities
of Loveland, Greeley, and Windsor do not have a use tax on manufacturing equipment, but he is
unsure about personal property taxes.
Councilmember Troxell made a motion, seconded by Councilmember Poppaw, to adopt Resolution
2012-096 as revised on October 16, 2012.
104
October 16, 2012
Mayor Weitkunat requested a description of the revisions. Birks replied the addition is in the
directive part of the Resolution and instructs the City Manager to only sign the agreement after the
following suggested changes have been made: changing the effective date to June 8, 2012, the date
the building permit was pulled, extend the use tax payments out over time as opposed to the way
they were conceived in the original agreement, condition any rebate payment on the maintenance
of the targeted number ofj obs, and also to require Avago to continue to retain the existing workforce
;in a substantial and reasonable way.
Councilmember Poppaw thanked Avago for being a good corporate citizen and respectfully
requested that it be mindful of the needs.of low-income employees.
Councilmember Troxell commended Avago and stated he would support the Resolution.
Councilmember Horak made a motion, seconded by Councilmember Manvel, to amend the
Resolution by removing the word "general" from point number four of the agreement, and add the
following phrase to the end of the sentence: "define how this will be determined and the
consequences of not substantially retaining its existing workforce." He stated this would define the
term "substantially change" and would define consequences for not meeting that requirement.
City Attorney Roy 'stated Council should clarify whether it intends this to be a requirement, the
breach of which would have a consequence, or whether it is to be a statement of intent.
Councilmember Poppaw asked if the types of jobs will be specified. Councilmember Horak replied
the wording should be general enough to allow the City Manager leeway to create a reasonable,
enforceable agreement.
City Attorney Roy suggested the inclusion of a provision that will help ensure the retention of
Avago's existing workforce, in addition to the jobs created by the project over the term of the
agreement. Councilmember Horak replied he would accept that language.
Councilmember Poppaw asked if the Avago representatives have any thoughts on the proposed
language. Mr. Bettinger replied Avago would 'be'happy to work with the City Manager and the City
Attorney's Office on mutually-agreeable,language.',o .
Mayor Pro Tern Ohlson stated general statements''should tnever be included in these types of
agreements. He opposed the suggested language.as'it is not enforceable.
City Attorney Roy stated it is important that Council Understand this Resolution is not the actual
agreement, but rather direction to add certain kinds of provisions to the agreement. Given Council's
varying opinions, City Attorney Roy stated the agreement could be negotiated, rewritten, and
brought back before Council.
Councilmember Horak withdrew his motion to amend, stating he is comfortable allowing the City
Manager and Avago to work out an acceptable agreement.
Councilmember Horak stated this type of template should be used for business assistance
agreements with primary employers into the future.
105
October 16, 2012
Councilmember Kottwitz stated Avago is an integral part of the culture of Fort Collins and
supported the agreement. •
Mayor Pro Tern Ohlson stated he would support the Resolution and added Fort Collins has not
overdone its incentives. 13e expressed concern regarding some of the process issues.
Mayor Weitkunat stated these types of packages are business investment assistance packages and
provide investment in the community.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak
and Troxell. Nays: none.
THE MOTION CARRIED.
Councilmember Horak made a motion, seconded by Councilmember Manvel, to adjourn to October
23, 2012, for the purpose of considering Items Relating to the 1-251SH392 Interchange Process,
Consideration of the Appeal of the August 9, 2012 Zoning Board of Appeals Decision to Approve
a Variance to Allow the Existing Off -Premise Sign (Billboard) Located in the BNSF Railroad Right
of Way at 190 West Prospect Road to be Removed and Reinstalled at a New Location Within the
Same Railroad Right of Way at 190 West Prospect Road, as well as a possible executive session and
other items that may be determined at a later date. Yeas: Weitkunat; Manvel, Kottwitz, Ohlson,
Poppaw, Horak and Troxell. Nays: none.
THE MOTION CARRIED.
The meeting adjourned at 11:15 p.m.
ATTEST:
&)"U& &&-�'
City Clerk
Adjournment
106