HomeMy WebLinkAboutMINUTES-04/02/2013-RegularApril 2, 2013
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 2, 2013, 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 stated there were no changes to the agenda.
Citizen Participation
Mel Hilgenberg, 172 North College, reported on upcoming community events and commended
outgoing Councilmembers. He supported term limit changes and requested additional consideration
of the proposed on -campus stadium by the new Council.
Eric Sutherland, 3520 Golden Currant, discussed the concept of home rule for municipalities.
James Owiny, Human Relations Commission, extended an invitation to an event on May 2.
Glen Colton, 625 Hinsdale Drive, discussed the contrast between the Be Local program closing its
office and the proposed economic, incentive packages for Woodward and other multi -national
companies.
Richard Thomas,'1907 Wallenberg Drive, opposed the City's ex parte regulations.
Anita Rehner, 520 Sycamore Street, Diana Hammerdorfer, 227 Scott Avenue, and Chris Maldonado,
412 North Whitcomb, thanked Council for responding to concerns of Old Town property owners
by adopting Ordinance No. 033, 2013.
Ordinances on Second Reading were read by title by City Clerk Nelson.
Items Relating to an Agreement Between the City of Fort Collins, the Fort Collins
Downtown Development Authority, and Woodward, Inc. Relating to the Relocation and
Construction of the Company's Headquarters and Expanding its Manufacturing and Office
Facilities.
548
April2, 2013
A. Second Reading of Ordinance No. 055, 2013, Authorizing and Approving the
Execution and Delivery by the City of an Agreement with Woodward, Inc., and
Related Documents, Including Authorizing the Issuance of a Bond, in Connection
with an Economic Development Project Relating to Woodward, Inc.; and Providing
Other Matters Related Thereto.
B. Second Reading of Ordinance No. 056, 2013, Appropriating General Fund Reserves
to Fund a Reimbursement Reserve Fund in Connection with an Agreement Between
the City, Downtown Development Authority and Woodward, Inc., Regarding the
Link-n-greens Development.
9. Second Reading of Ordinance No. 044, 2013, Authorizing the Conveyance to Woodward,
Inc. of Two Non -Exclusive Permanent Drainage Easements and a Temporary Construction
Easement on City -Owned Property.
Items Relating to an Agreement Between the City of Fort Collins, the Fort Collins
Downtown Development Authority, and Woodward, Inc. Relating to the Relocation
and Construction of the Company's Headquarters and Expanding its
Manufacturing and Office Facilities, Adopted on Second Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
A. Second Reading ofOrdinance No. 055, 2013, Authorizing and Approving the Execution and
Delivery by the City of an Agreement with Woodward, Inc., and Related Documents,
IncludingAuthorizing the Issuance of a Bond, in Connection with an Economic Development
Project Relating to Woodward, Inc.; and Providing Other Matters Related Thereto.
B. Second Reading of OrdinanceNo.056,2013,AppropriatingGeneralFundReservestoFund
a Reimbursement Reserve Fund in Connection with an Agreement Between the City,
Downtown Development Authority and Woodward, Inc., Regarding the Link-n-greens
Development.
These Ordinances relate to providing business investment assistance to Woodward, Inc. to
encourage the relocation and construction of the company's headquarters and expanding its
manufacturing facilities in Fort Collins. The project will retain or create between 1,400 and 1,700
primaryjobs in the community, provide 31 acres of improved open space along the river (including
habitat restoration), and anchor the southeastern edge of the River District with a major employer.
The two items include:
A. An Agreement between the City, Downtown Development Authority, and Woodward, Inc.;
and
B. An appropriation of $2.27 million in General Fund Reserves in connection with the
Agreement with Woodward, Inc.
549
April2, 2013
Ordinance No. 055, 2013 was adopted on First Reading on March 26, 2013, by a vote of 6-1 (Nays:
Ohlson). This Ordinance has been amended on Second Reading to remove a "Whereas clause" in
response to Council comments on First Reading. Ordinance No. 056, 2013 was unanimously
adopted on First Reading.
BACKGROUND /DISCUSSION
During the First Reading ofthese Ordinances, City Council asked forfollow-up on four items. These
items include:
• An explanation of the$4.0 million in net benefits listed in Year ]from the Economic Impact
Analysis;
• An understanding of the anticipated utility usage and impact of the proposed Project; and
• A description of the efforts of the City of Fort Collins related to Talent Development; and
• Data on Woodward's current emissions, waste output, and recycling (some data to be
provided in the Read -Before).
Each item is discussed below.
Year I Net Benefits Explained
City Council asked for additional information related to the net benefits chart listed on Page 4 of
A Report of the Economic Impact of Project Blue Home in Fort Collins, CO dated March 8, 2013
(the analysis of 1, 400 employees). Specifically, City Council would like to understand the makeup
of the approximately $4.0 million in net benefits projected in Year 1. These net benefits are
comprised of several revenue sources, as shown in Table 1, primarily including use tax on
Construction Spending, use tax on Manufacturing Purchases, and Building Permits and.Capital
Expansion Fees. The total revenue anticipated in Year I is approximately $9,325,165 less
$5,305,879 in rebates for a net benefit of $4, 019,287 shown in Year I of the chart on Page 4. The
economic impact analysis is based on the initial schedule presented by Woodward, which had all
phases starting construction and, therefore, paying fees and use tax before the end of 2015 or Year
2 of the analysis. This schedule is subject to change.
Table 1 C
Year 1— Summary of Net Benefits
Item
Total -
Less Rebates
N e t
Benefit
Construction S endin *
$2,455,089
$1,953,105
$501,984
Manufacturing Purchases
$198,238
$158,591
$39,648
Building Permits &Ca italEx ansionFees**
$6,671,838
$3,194,183
$3,477,655
Total
$9,325,165
$5,305,879
$4,019,287
*Includes Visitor Spending and Taxable Purchases by the Firm listed on Page 36
** Includes Lodging Taxes listed on Page 38
550
April2, 2013
Utility Impacts
Water/Wastewater
Based onpreliminary estimates, Woodward anticipates consuming between 8and 18 million gallons
annually, which represents approximately 0.1 to 0.2 percent of the annual water treated and
delivered by Fort Collins Utility (FCU). Woodward anticipates proportionate share of wastewater.
This consumption equates to approximately 75 to 225 average homes. Plenty of capacity exists in
the area with major water transmission lines in both Lincoln Avenue and Lemay Avenue. In
addition, a major wastewater collection line crosses the site. Finally, FCU does not anticipate any
negative impacts to the system from the increased water consumption.
Energy
Based on preliminary estimates, Woodward anticipates consuming between 2,000 and 3,000
megawatt -hours (MWh) per month. On an annual basis this represent between 1.6 and 2.4 percent
of the total city energy use. The average household in Fort Collins, based on actual data, consumes
approximately 740 kilowatt-hours (KWh) per month (or 0.74 MWIi). Therefore, this consumption
equates to approximately 2,700 to 4,100 average households. Adequate capacity exists in the area
to serve Woodward's anticipated demand. Finally, FCU does not foresee any negative impacts to
the system from the increased energy consumption.
Talent Development Activities
In June 2012, City Council adopted the Economic Health Strategic Plan (EHSP). The plan defines
four major objectives of the City regarding the continued health and resiliency of the economic in
Fort Collins. One of these objectives relates to workforce development. As a result of adoption, the
Economic Health Office (EHO) has begun a variety of activities in the workforce and talent
development arena, including:
• Conveyed a small working group to further review workforce development, including: Front
Range Community College Corporate Solutions, Larimer County Workforce, Larimer Small
Business Development Corporation (SBDC), and other professionals engage in workforce
development —Meet Monthly
• Actively participate in the Larimer County Workforce Investment Board, with SeonAh
Kendall taking over the team's Board seat — Meet Monthly
• Participate in the Larimer SBDC Advisory Board —Meet Monthly
• Fund support of the Larimer County Workforce —Annual Workforce Summit; EHO support
funds analysis of workforce conditions in Larimer County with special emphasis on the
disconnect between needed skills and available workforce — Analysis Second and Third
Quarter 2013, Summit in Fall 2013
• Developing a partnership with Poudre School District through the small working group —
Seeond and, Third Quarter 2013
• Expanding the Business Retention and Expansion Survey to address labor and workforce
issues — Spring 2013
• Participate in the Northern Colorado Healthcare Consortium, which is currently focused
on developing workforce particularly nurse aids and other essential support staff for the
healthcare industry — Meet Quarterly
551
April 2, 2013
• Supporting the development of a workforce report to be prepared by Lorimer County —
Third Quarter 2013
• Conductseveral business site visits discussing a variety oftopics including: workforce needs
and challenges and raising awareness and connection of available training grants —
Multiple Meetings Monthly
• Expanding the EHO team's knowledge on training grant programs available through the
State of Colorado and HIB visas to leverage expertise available globally — On going
• Funding the support of a Manufacturing Council for Lorimer County. The Council will
include executives from the County's largest manufacturers and will focus on a wide range
of topics including workforce challenges and development— Forthcoming
Emissions/Waste/Recycling
Two decades ago, Woodward reported air emissions to the Colorado Department of Public Health
and Environment in compliance with their air permit. The AIRS database records from that time
show that Woodward's emissions of VOCs (volatile organic compounds) reached just over 100 tons
per year in 1993 and 1994. The VOC emissions dropped to 18 tons per year in 1995! As of 1997,
VOC emissions for Woodard dropped below the de minimus reporting threshold.
In June 2012, Woodward received an air permit compliance inspection confirming that Woodward
is in full compliance with their air permit. The report states that over the years, the vast majority
of emission points (22) have been canceled as processes have changedor been modified. As of
June 2012, only a single point (#15) remains "active" and chemical throughputs regarding these
solution tanks were evaluated. Both chemicals (nitric acid, hydrochloric acid) appear below de
minimus level threshold,for Air Pollution Emission Notice (APEN) exemption.
The most recent (2011) Toxics Release Inventory (TRI) data for'Fort Collins shows that Woodward
reported emissions of 22 pounds of lead in 2011, and zero pounds of chromium, copper and nickel
as shown in Attachment 2. Staff has requested historic data from the Environmental Protection
Agency and the Colorado Department ofPublic Health and Environment. This data, ifreceived, will
be provided as a Read Before item for the April 2, 2013 City Council meeting.
In addition, staff is collecting data on Woodward's hazardous waste production and handling as
well as recycling program. This data will be provided as part of a Read -Before item on April 2,
2013.
BOARD / COMMISSION RECOMMENDATION
The Economic Advisory Commission (EAC) met on March 27, 2103 to review thefinancial package.
The EA had previously met on March 20, 2013 to review the Project description, Public Benefits,
and Economic Impact Analysis of the proposed Project. The EA voted 5-1 (nays: Colton) in favor
or recommending adoption of the Agreement with Woodward, Inc, see Attachment 3. The meeting
minutes from March 27, 2013 are included as Attachment 4. "
Bruce Hendee, Chief Sustainability Officer, provided a brief summary of the business assistance
package and its benefits to the city. Since First Reading, the term "employee" has been defined to
refer to a full-time employee, or the equivalent of one full-time employee, who would be working
at a Fort Collins site and have available benefits. Also, since First Reading, the employee
552
April2, 2013
requirements have changed slightly and there is a rebate holdback, should those requirements not
be met. Hendee discussed the anticipated water, wastewater and energy usage for the project. With
respect to emissions, Hendee stated Woodward has participated in an overall management system
to reduce its carbon footprint and has had no reported emissions releases between 1998 and 2010.
The emissions released in 2011 were far below the state's requirements.
Eric Sutherland, 3520 Golden Currant, supported the package and Woodward's model of corporate
citizenship.
Arvid Bloom, 1372 Iva Court, supported the business assistance package and Woodward's support
of the community.
Nancy York, 130 South Whitcomb, challenged Woodward to address its electrical energy use. She
expressed concern about storm drainage into the Poudre River and requested air and water emissions
monitoring. She commended the outgoing Councilmembers.
David May, Fort Collins Area Chamber of Commerce, thanked Council for its support of the
business assistance package and commended the outgoing Councilmembers.
Glen Colton, 625 Hinsdale Drive, questioned why the largest companies in town do not pay their
full share and questioned the impacts of additional residents on the city's resources.
Mel Hilgenberg, 172 North College, supported the business assistance package.
Councilmember Manvel asked about the emissions report which states the lead measurement was
not based on actual measurements. Lucinda Smith, Environmental Sustainability Director, replied
Woodward estimated those emissions, based on a,process looking at its control technology for the
closed -loop system. An actual stack emissions test would likely yield a lower emissions amount.
Councilmember Manvel asked about the 1,400 employment level in any four -week period. Hendee
replied the level must be maintained for any four -week period, but noted Woodward is making a
long-term commitment by locating its headquarters on the property.
Councilmember Kottwitz made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 055, 2013, on Second Reading.
Deputy City Attorney Daggett read changes made to the Ordinance exhibit.
Councilmember Kottwitz stated she is extremely proud to support this item. She thanked
Woodward, staff, and Council for work on the item.
Councilmember Troxell stated he would support the business assistance package.
Mayor Pro Tem Ohlson stated he would not support the business assistance package, given his
reasoning from First Reading. He stated future incentive packages should include the emissions and
energy and water report prior to First Reading.
553
April2, 2013
Councilmember Horak stated he would support the business assistance package and cited its benefits
for both short and long term.
Mayor Weitkunat expressed her enthusiastic support for the business assistance package.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Poppaw, Horak and
Troxell. Nays: Ohlson.
THE MOTION CARRIED.
Councilmember Kottwitz made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 056, 2013, on Second Reading.
Councilmember Troxell commended the economic and environmental analyses, but cautioned
against static analyses in the future.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak
and Troxell. Nays: none.
THE MOTION CARRIED.
City Manager Atteberry commended Council for setting the context of sustainability and sustainable
economic development and commended the large amount of staff work on the item.
Ordinance No. 044, 2013,
Authorizing the Conveyance to Woodward, Inc. of Two Non -Exclusive
Permanent Drainage Easements and a Temporary Construction
Easement on City -Owned Property, Adopted on Second Reading
The following is the staff memorandum for this item.
"EXECUTIVE SUMMARY
The proposed Woodward Link-N-Greens Campus ("Woodward') will be a master planned campus
providing the ability to retain and grow primary jobs for the community. The campus will
accommodate Woodward's continued growth of its current operations in Fort Collins. It also
includes adjacent commercial services that can be used by Woodward employees and thepublic with
close access to downtown and the Mulberry corridor. The planned campus will help to improve the
river corridor through the site including restoration of the natural river corridor landscape, habitat,
and appropriate recreation opportunities.
For this development, Woodward has requested that the City grant Woodward two permanent
drainage easements for stormwater flows, one which would include construction of a buried
drainage pipe and the other for a graded swale. In addition, a temporary construction easement
is needed for grading, landscaping, and associated restoration work on City -owned property
adjacent to the Poudre River. This Ordinance, unanimously adopted on First Reading on March 26,
2013, authorizes the conveyance of the requested easements. "
554
April2, 2013
Councilmember Horak made a motion, seconded by Councilmember Troxell, to adopt Ordinance
No. 044, 2013, on Second Reading.
Councilmember Horak stated wastewater going into the Poudre will be in better shape than with the
current use as a golf course.
Mayor Pro Tern Ohlson stated he would support the motion, but questioned the value of the land.
The vote on the motion was as follows: Yeas: Weitkunat, Manvel, Kottwitz, Ohlson, Poppaw, Horak
and Troxell. Nays: none.
THE MOTION CARRIED.
Other Business
Councilmember Horak stated the triple bottom line needs to be more consistently addressed when
considering business assistance packages.
Mayor Weitkunat announced a special meeting of Council to be held Tuesday, April 9, 2013.
Adjournment
The meeting adjourned at 7:07 p.m
FORT Co
yor
ATTEST:
W U NU UDIRZ
O
City Clerk
555