HomeMy WebLinkAboutMINUTES-01/02/2018-RegularJanuary 2, 2018
COUNCIL OF THE CITY OF FORT COLLINS, COLORADO
Council -Manager Form of Government
Regular Meeting — 6:00 PM
• ROLL CALL
PRESENT: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
Staff Present: Atteberry, Daggett, Coldiron
• AGENDA REVIEW: CITY MANAGER
City Manager Atteberry stated there were no changes to -the published agenda.
• CITIZEN PARTICIPATION
Representative Jenny Arndt congratulated the City on receiving the 2017 Malcolm Baldrige
National Quality Award. She noted this is only the third municipality to achieve such recognition
in the history of the program.
Representative Joann Ginal expressed her pride in the City.
Senator John Kefalas expressed appreciation for the work of the City.
Elizabeth Hudetz discussed fracking and noted the City's moratorium passed with.almost 60%
voter support. She discussed new legislation and the negative impacts of fracking on the
environment and stated Prospect's permits should be rescinded and no additional permits should
be approved.
Stacy Lynne showed photos of a restroom sign in Old Town Square which makes sophomoric jabs
about flushing kittens, puppies, and prosthetic limbs. She requested the sign be removed
immediately.
0 CITIZEN PARTICIPATION FOLLOW-UP
Mayor Troxell summarized the citizen comments and requested a staff update on the fracking
issue. City Attorney Daggett replied the moratorium provisions adopted by voters in 2013 were
explicitly found by the Larimer County District Court to be preempted by state law, and the
Colorado Supreme Court did affirm that decision. An item on tonight's Consent Agenda removes
those provisions from the City Code because they are unenforceable. The recent decision relates
to the power of the Colorado Oil and Gas Conservation Commission and the manner in which it is
obligated to evaluate potential rules and to regulate oil and gas activities.
Cassie Archuleta, Environmental Services, stated Prospect Energy received, approval for a re -
fracturing of a well just outside City limits last year. A similar proposal has been submitted this
year.
Councilmember Summers requested additional information regarding wells in City limits.
Archuleta replied there are 10 wells considered to be active, 3 of which are producing. All of these
wells are oil, not gas, and all are vertical, not horizontal.
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January 2, 2018
Councilmember Summers stated the Colorado Department of Health and Environment has not
found any systemic health issues that arise from hydraulic fracturing.
Councilmember Martinez requested the restroom sign be investigated.
Mayor Pro Tem Horak noted the City provided some funding for the project and is therefore
partially responsible for the insensitive language.
Councilmembers agreed the sign is not humorous.
Councilmember Cunniff stated signage for City and DDA facilities should be held to professional
standards.
• CONSENT CALENDAR
Mayor Troxell stated the public hearing for Item No. 11, Public Hearing and First Reading of
Ordinance No. 006, 2018, Granting a Non -Exclusive Franchise to the Public Service Company of
Colorado for the Right to Make Reasonable Use of City Streets, Public Utility Easements and
Other City Property to Install, Maintain, Locate and Operate Its Facilities Used to Provide
Natural Gas Services to Customers within the City, will be part of the Consent Agenda.
Councilmember Martinez withdrew Item No. 12, First Reading of Ordinance No. 002, 2018,
Appropriating Unanticipated Grant Revenue from the Colorado Department of Transportation
FASTER Transit Program Grant in the Transit Services Fund and Appropriating Prior Year
Reserves in the Transit Services Fund as a Grant Match for the Purchase of Two New Buses for
Transfort's Regional FLEX Route to Longmont and Boulder, from the Consent Agenda.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Stephens, to adopt and
approve all items not withdrawn from the Consent Agenda.
RESULT:
ADOPTED [UNANIMOUS]
MOVER:
Gerry Horak, District 6
SECONDER:
Kristin Stephens, District 4
AYES:
Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
1. Consideration and Approval of the Minutes from the December 5. 2017 Regular Council
Meeting, the December 12, 2017 Adiourned Council Meeting and the December 13, 2017 Special
Council Meeting. (Adopted)
The purpose of this item is to approve the minutes from the December 5, 2017 Regular Council
meeting, December 12, 2017 Adjourned Council meeting and the December 13, 2017 Special Council
meeting.
2. Postponement to January 16, 204 of Second Reading of Ordinance No. 136, 2017, Approving
the Addition of Permitted Use Associated with the Long Pond Wireless Telecommunications
Facility Project Development Plan #160018. (Adopted)
Staff is requesting postponement to January 16, 2018, of Council's consideration of this Ordinance on
Second Reading.
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After closing the public hearing at First Reading of this Ordinance on December 19, 2017, City Council
requested staff input regarding the possibility of adding three more conditions to its approval of the
Long Pond Wireless Telecommunications Addition of Permitted Use (APU) (in addition to those
conditions already included in Ordinance No. 136, 2017, as adopted). It is recommended that Council
reopen the public hearing to consider additional evidence pertaining to additional conditions or other
issues specified by Council and allow comment on such matters by both the applicant and the public.
Postponement of Second Reading to January 16, 2018 will allow time for required notice to be provided
for the reopening of the public hearing on this item. Reopening the public hearing on January 16 will
allow new information related only to the three conditions to be added to the record.
This Ordinance, unanimously adopted on First Reading on December 19, 2017 approved, with
conditions, the Long Pond Wireless Telecommunications APU, made in conjunction with PDP160018.
The APU would allow the addition of wireless telecommunication facilities as a permitted use on a
parcel of land located in the Low Density Mixed -Use Neighborhood (LMN) zone district. Wireless
telecommunication facilities are not a permitted use in the LMN. PDP160018 proposes a 60-foot tall
wireless telecommunications facility disguised as a silo at 2008 Turnberry Road. On First Reading, a
condition was added that reduced the height of the facility to 45 feet or less and specified a location
for the facility near the existing barn located in the northeast portion of the site.
3. Items Relating to the Fort Collins Traffic Code. (Adopted)
A. Second Reading of Ordinance No. 173, 2017, Amending Various Sections of the Fort Collins
Traffic Code.
B. Second Reading of Ordinance No. 174, 2017, Amending Various Sections of Part 21 of the Fort
Collins Traffic Code Regulating Bicycles.
These Ordinances, unanimously adopted on First Reading on December 19, 2017, amend the Fort
Collins Traffic Code to ensure that the Code is consistent with Colorado traffic laws.
Changes were made to Section 2101(2) between First and Second Reading to be consistent with
current City Code provisions that allow power -driven mobility devices, including electrical assisted
bicycles, to be used by persons with temporary or permanent mobility disabilities on bike or pedestrian
paths or recreational trails.
4. Second Reading of Ordinance No. 175, 2017, Deleting Chapter 12, Article VIII from the Code of
the City of Fort Collins Regarding Hydraulic Fracturing. (Adopted)
5.
This Ordinance, unanimously adopted on First Reading on December 19, 2017, removes references
to a prohibition on oil and gas related activities from Chapter 12, Article VIII of the City Code. This is
an administrative clean-up item reflecting the 2016 Colorado Supreme Court decision that struck down
the City's hydraulic fracturing moratorium because state law preempted it.
Iki0
Point Drive Extension. (Adopted)
This Ordinance, unanimously adopted on First Reading on December 19, 2017, declares
approximately 1.4 acres of Tract A owned by the City Utilities' Wastewater Utility Enterprise as right-
of-way for the construction of Sharp Point Drive between Nancy Gray Avenue and Midpoint Drive.
Tract A is a 1.9-acre parcel which was originally platted as a public access and loading easement in
the 1970s as part of the Prospect Industrial Park. The Sharp Point Drive connection was shown on the
City's Master Street Plan in 1998. The platted easement merged into fee property upon acquisition by
the Wastewater Utility Enterprise in 2002.
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6. Second Reading of Ordinance No. 177, 2017 Amending the Zoning Map of the City of Fort
Collins by Changing the Zoning Classification for That Certain Property Known as Spring Creek
Rezoning REZ1170001. (Adopted)
This item is a quasi-judicial matter and if it is considered on the discussion agenda it will be considered
in accordance with the procedures described in Section 1(d) of the Council's Rules of Meeting
Procedures adopted in Resolution 2017-017.
This Ordinance, unanimously adopted on First Reading on December 19, 2017, amends the City's
Zoning Map to adjust the location, size and boundary between two zone districts within a 19.55 parcel
located at the southeast corner of South Shields Street and Hobbit Street. The result of the shift is
that the Neighborhood Commercial (N-C) zone is shifted south and reduced by 2.88 acres while the
Medium Density Mixed -Use Neighborhood (M-M-N) zone is shifted north and gains a corresponding
amount of land area. As proposed, the N-C zone would be reduced to 6.42 acres and the M-M-N zone
would be enlarged to 13.13 acres.
This rezoning of less than 640 acres is subject to the criteria included in Section 2.9.4 of the Land Use
Code and subject to certain conditions in Section 2.9.4(H). Such a zoning may be approved, approved
with conditions, or denied by Council after receiving a recommendation from the Planning and Zoning
Board, which voted (6-0) to recommend the rezoning with six conditions. The six conditions have been
agreed upon by the applicant and neighbors from the surrounding residential neighborhood (including
the Sheeley and Wallenberg neighborhoods), as well as consultation with staff.
7. First Reading of Ordinance No. 001, 2018, Appropriating Unanticipated Grant Revenue in the
General Fund for the Fort Collins Police Services Victim Services Unit. (Adopted)
The purpose of this item is to fund the Victim Services Unit of Fort Collins Police Services for victim
advocacy services under the Colorado Victim Rights Amendment for victims of crime and their family
members. The Fort Collins Police Services Victim Services Unit has been awarded a 12-month grant
in the amount of $45,500 for the period from January 1, 2018 to December 31, 2018, by the Eighth
Judicial District Victim Assistance and Law Enforcement (VALE) Board to help fund services provided
by this team. These funds will be used for part of the salary for the victim advocate who provides crisis
intervention services during weekday hours and is housed in the Victim Services office. These funds
will also pay for a portion of the operational expenses needed to provide 24-hour, 7-days/week
services to victims of crime in the community.
8. First Reading of Ordinance No. 003, 2018, Appropriating Prior Year Reserves in the General
Fund and the Recreation Fund and Authorizing the Transfer of Appropriations in the Recreation
Fund to the General Fund for the James Ross Proving -Up House Restoration. (Adopted)
The purpose of this item is to appropriate previously received grant funds of $16,080 received from
the Cache la Poudre Heritage Alliance and unanticipated revenue of $3,357 from the Fort Collins
Historical Society for the restoration of the James Ross Proving -Up House. The total new appropriation
is $19,437. The grant is matched by Historic Preservation funds of $32,847 and Recreation
Department funds of $27,000 from prior year reserves.
9. First Reading of Ordinance No. 004, 2018, Appropriating Prior Year Reserves in the
Transportation Fund into the Capital Project Fund for the Harmony and Strauss Cabin
Intersection Proiect and Transferring Appropriations from the Capital Projects Fund to the
Cultural Services and Facilities Fund for Art in Public Places (Adopted)
The purpose of this item is to appropriate $891,000 of prior year reserves in the Transportation Capital
Expansion Fee Fund and authorize the transfer of appropriations from the Transportation Capital
Expansion Fee Fund into the Capital Project Fund for the Harmony and Strauss Cabin Intersection
Improvement Project. In addition, this item will transfer $8,760 in prior year reserves from the
Transportation Fund to the Capital Projects Fund for the purpose of transfer to the Cultural Services
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and Facilities Fund for Art in Public Places. This project will construct road and intersection
improvements, utility relocations, and fully signalize the intersection of Harmony Road and Strauss
Cabin Road. The project will install southbound left and right turn lanes, pork chop islands, and
American's with Disabilities Act (ADA) accessible sidewalk connections.
10. First Reading of Ordinance No. 005, 2018, Authorizing the Acquisition by Eminent Domain of
Certain Lands Necessary to Construct Public Improvements in Connection with the Suniga
Road Improvements Project (Adopted)
it.
The purpose of this item is to obtain authorization from City Council to use eminent domain, if deemed
necessary, to acquire property interests needed to construct improvements to Suniga Road
Improvements Project. The project will construct a new arterial roadway between College Avenue and
Blondel Street. Improvements include construction of a complete arterial street which includes four
travel lanes, protected bike lanes, landscaped parkways, medians, sidewalks and utility improvements.
In order for the City to construct these improvements, the City will need to acquire certain property
interests adjacent to the project area. The project will affect seven properties. Acquisitions will include
fee purchase right-of-way, permanent utility and drainage easements and temporary construction
easements. Staff has had contact with all affected property owners. Timely acquisition of the property
is necessary to meet the anticipated construction schedule. Staff.fully intends to negotiate in good faith
with the affected owners and is optimistic that all property negotiations can be completed prior to the
start of the Project. Staff is requesting authorization of eminent domain for all property acquisitions for
the Project only if such action is deemed necessary.
(Adopted)
The purpose of this item is to consider approval of a natural gas Franchise Agreement between the
City of Fort Collins and the Public Service Company of Colorado ("Public Service"). Without a change
in the financial burden to residents, this Franchise Agreement grants a non-exclusive franchise to
Public Service to make reasonable'use of City streets, public utility easements and other City property
for Public Service's provision of natural gas utility services within the City. The franchise fee will be
equivalent to the.current occupation tax imposed (1.07%) to compensate the City for the use of its
property. The franchise fee rate can be increased by the City Council in the future by ordinance but
at a rate not to exceed 3% of gross revenues.
12. Resolution 2018-001 Authorizing the Execution of an Intergovernmental Agreement Between
the City and the Colorado Department of Transportation for Transfort FLEX Service. (Adopted)
The purpose of this item is to authorize Transfort to enter into an Intergovernmental Agreement with
the Colorado Department of Transportation (CDOT). This agreement will result in the receipt of
$200,000 in grant funds through the statewide competitive pool of the FASTER Transit program for
fiscal year 2018. Transfort will be required to match the $200,000 in grant funds with a $200,000 local
match, which was appropriated through the previous BFO cycle and is accounted for in the approved
2018 Transfort budget.
13. Resolution 2018-002 Authorizing an Intergovernmental Agreement with Colorado State
University Reqarding the Elizabeth Street and Shields Street Bicycle and Pedestrian
Underpass. (Adopted)
The purpose of this item is to authorize the City Manager to sign on behalf of the City a Memorandum
of Understanding (MOU) with the Board of Governors of the Colorado State University System to
define the rights and responsibilities of the parties concerning the ownership and maintenance of the
newly completed Elizabeth and Shields Bicycle and Pedestrian Underpass and adjoining right-of-way
areas.
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14. Resolution 2018-003 Making Appointments to Various Boards, Commissions, and Authorities
of the City of Fort Collins. (Adopted)
The purpose of this item is to appoint individuals to fill vacancies that currently exist on various boards,
commissions, and authorities' due to resignations of board members and vacancies to be created
upon the expiration of terms of current members. Applications were solicited during September,
October, and November. Council teams interviewed applicants during November and December. This
Resolution appoints individuals to fill current vacancies and expiring terms.
This Resolution does not fill all vacancies. Interviews are continuing, and any remaining vacancies
will be advertised as needed.
• END CONSENT
• CONSENT CALENDAR FOLLOW-UP
Mayor Pro Tem Horak commented on good news items relating to FLEX service and off -campus
infrastructure improvements made by CSU.
Councilmember Stephens thanked board and commission candidates in regard to Item No. 15,
Resolution 2018-003 Making Appointments to Various Boards, Commissions, and Authorities of
the City of Fort Collins. '
Councilmember Overbeck thanked board and commission members for their service.
Councilmember Martinez commended Item No. 7, First Reading of Ordinance No. 001, 2018,
Appropriating Unanticipated Grant Revenue in the General Fund for the Fort Collins Police
Services Victim Services Unit.
Mayor Troxell closed the public hearing for Item No. 11, Public Hearing and First Reading of
Ordinance No. 006, 2018, Granting a Non -Exclusive Franchise to the Public Service Company of
Colorado for the Right to Make Reasonable Use of City Streets, Public Utility Easements and
Other City Property to Install, Maintain, Locate and Operate Its Facilities Used to Provide
Natural Gas Services to Customers within the City.
• CONSIDERATION OF COUNCIL -PULLED CONSENT ITEMS
15.
The purpose of this item is to request a 2018 appropriation in the amount of $1,200,000. Transfort was
awarded $960,000 through a CDOT grant for the purchase of two new buses for Transfort's Regional
FLEX route to Longmont and Boulder. This grant requires a local match of $240, 000.
Councilmember Martinez asked if the $240,000 local match is funded solely by Fort Collins. Mark
Jackson, Planning, Development, and Transportation, replied Boulder County and a number of
cities along the Flex route participate financially; however, this match is fully funded from
Transfort transit reserves.
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January 2, 2018
Councilmember Martinez suggested other municipalities should participate in providing matching
funds in the future as they are benefitting as well.
Mayor Pro Tem Horak stated this service was started and encouraged by the North Front Range
Metropolitan Planning Organization which includes Weld and Larimer Counties and associated
cities. Fort Collins is funding this match because the buses are Fort Collins buses and can be used
for Transfort needs.
City Manager, Atteberry stated he will provide statistics related to the cost sharing for Flex.
Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance
No. 002, 2018, on First Reading.
Councilmember Cunniff commended the item and its impact on air quality.
RESULT:
ORDINANCE NO. 002, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
MOVER:
Gerry Horak, District 6
SECONDER:
Ross Cunniff, District 5
AYES:
Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
• DISCUSSION ITEMS
16. First Reading of Ordinance No. 007, 2018, Amending Section 2-606 of the Code of the City of
Fort Collins and Setting the Compensation of the Chief Judge. (Adopted on First Reading)
The purpose of this item is to establish the 2018 salary of the Chief Judge. City Council met in
executive session on November 28, 2017, to conduct the performance review of Chief Judge Kathleen
M. Lane. This Ordinance sets the 2018 compensation of the Chief Judge.
Councilmember Martinez made a motion, seconded by Councilmember Cunniff, to adopt
Ordinance No. 007, 2018, on First Reading, increasing the Chief Judge's compensation by 3%.
Base salary and total. compensation figures were calculated.
Mayor Pro Tem Horak asked if Judge Lane will be remaining at 0.8 FTE. Judge Lane replied she
is planning to ask for an increase to a full 1.0 FTE in the next budget cycle, to be divided between
herself at 0.75 and the Assistant Chief Judge at 0.25.
Councilmembers Martinez and Overbeck commended Judge Lane and her work.
Councilmember Stephens commended Judge Lane's work with Special Agency Session.
Mayor Troxell thanked Judge Lane for her work and longevity in the community.
RESULT:
ORDINANCE NO. 007, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
MOVER:.
Ray Martinez, District 2
SECONDER:
Ross Cunniff, District 5
AYES:
Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
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17. First Reading of Ordinance No. 008, 2018, Amending Section 2-581 of the Code of the City of
Fort Collins and Setting the Compensation of the City Attorney. (Adopted on First Reading)
The purpose of this .item is to establish the 2018 salary of the City Attorney. City Council met in
executive session on November 13, 2017, to conduct the performance review of Carrie Daggett, City
Attorney. This Ordinance sets the 2018 compensation of the City Attorney.
Mayor Pro Tern Horak suggested a 2.5% increase.
Base salary and total compensation figures were calculated.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Martinez, to adopt Ordinance
No. 008, 2018, on First Reading, increasing the City Attorney's compensation by 2.5%.
Councilmember Overbeck commended the City Attorney and her team.
Councilmember Martinez commended the City Attorney on utilizing suggestions.
Councilmember Stephens commended the City Attorney for her sound legal and ethical advice.
Mayor Troxell commended the City Attorney on her work.
RESULT: ORDINANCE NO. 008, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ray Martinez, District 2
AYES: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
18. First Reading of Ordinance No. 009. 2018. Amendinq Section 2-596 of the Code of the Citv of
Fort Collins and Settinq the Compensation of the City Manager. (Adopted on First Reading)
The purpose of this item is to establish the 2018 compensation of the City Manager. City Council met
in executive session on November 13, 2017, to conduct the performance review of Darin Atteberry,
City Manager. This Ordinance sets the 2018 compensation of the City Manager.
Mayor Pro Tern Horak suggested a 2.5% compensation increase.
Mayor Pro Tern Horak made a motion, seconded by Councilmember Summers, to adopt Ordinance
No. 009, 2018, on First Reading, increasing the City Manager's compensation by 2.5%
Base salary and total compensation figures were calculated. '
Councilmembers Overbeck and Summers commended the City Manager on his work and service
Councilmember Stephens thanked the City Manager for ensuring issues are addressed in a timely
manner.
Councilmember Cunniff stated he would support the motion but noted City Manager Atteberry is
the highest paid City Manager in Colorado. He commended the City Manager on his work.
Councilmember Cunniff requested information on the salary funding split, including a possible
broadband utility, for both the City Manager and City Attorney prior to Second Reading.
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January 2, 2018
Councilmember Martinez thanked the City Manager for his professionalism and work. He noted
City Manager Atteberry is the longest serving City Manager in Colorado and his salary is average
on a national level. He stated City Manager Atteberry has made Fort Collins a world -class city.
Mayor Pro Tem Horak noted salaries are set based on the average of the market for each position.
Mayor Troxell thanked the City Manager for his service over the past 14 years, citing several
examples of excellent work. He thanked the Councilmembers for their service and creation of a
positive environment for its direct employees and the City organization as a whole.
RESULT: ORDINANCE NO. 009, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ken Summers, District 3
AYES: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
19. Items Relating to Funding Improvements to the 1-25/Prospect Interchange. (Adopted)
A. Resolution 2018-004 Authorizing the Execution of an Amendment to the Intergovernmental
Agreement Between the City of Fort Collins and the Colorado Department of Transportation for
the Interstate 25 Improvements Between State Highway 14 and State Highway 402.
B. Resolution 2018-005 Approving and Authorizing the Execution of a Memorandum of
Understanding with Benefitted Property Owners Regarding .Financial Participation in the I-
25/Prospect Interchange Improvements.
The purpose of this item is to amend an existing Intergovernmental Agreement with the Colorado
Department of Transportation and enter into a Memorandum of Understanding with private property
interests proximate to the interchange at 1-25 and Prospect Road. These agreements form the basis
of a public -private funding partnership model to accelerate improvements to the aging and congested
1-25/Prospect Interchange. City staff is also continuing to negotiate with the Town of Timnath for its
payment of a share of the costs for these improvements.
Mark Jackson, Planning, Development, and Transportation, introduced several staff members and
CDOT program manager, Scott Rees. He stated improving northern I-25 has been a Council
priority for years and the project, and potential inclusion of the Prospect interchange, will provide
a significant safety and mobility benefit for Fort Collins and northern Colorado.
Jackson discussed the aging infrastructure at the Prospect interchange and the opportunity to
partner with Timnath, CDOT, and the property owners near the interchange to include it as part of
the overall I-25 corridor project. The partnership will save an estimated $7 million and will speed
the timing of the project. '
Mike Beckstead, Chief Financial Officer, discussed the memorandum of understanding that has
been formed as a result of the negotiations. He noted the benefit of the arrangement declines if
development does not occur or occurs later than 'anticipated. The intent for financing is to do
certificates of participation and use City assets for collateral. This item would authorize the IGA
with CDOT and the MOU for the property owners.
Councilmember Cunniff noted the difference between the 13% and 15% Timnath contribution is
$350,000 and expressed appreciation for efforts made to increase that.
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Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to adopt
Resolution 2018-004.
Councilmember Cunniff stated he would support the motion despite being concerned about the
City's overall debt load. He commended staff work on the item.
Councilmember Martinez asked about the source of borrowed funds. Beckstead replied bonds
would be issued:
Councilmember Martinez asked about Timnath's financial participation. Beckstead replied that
amount is still being finalized; however, the MOU is written such that the property owners and
Fort Collins would•pay whatever portion Timnath does not.
City Manager Atteberry noted conversations with Timnath have been very positive
Councilmember Martinez asked what motivation Timnath has to pay if it knows the project will
occur regardless. Mayor Pro Tem Horak replied it is a matter of trust and historic performance.
Mayor Troxell stated this proposal is in the best interest of the City of Fort Collins.
RESULT: RESOLUTION 2018-004 ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Bob Overbeck, District 1
AYES: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
Mayor Pro Tem Horak made a motion, seconded by Councilmember Overbeck, to adopt
Resolution 2018-005.
Mayor Pro Tem Horak commended staff work and the overall partnership aspects of the proposal.
RESULT: RESOLUTION 2018-005 ADOPTED [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Bob Overbeck, District 1
AYES: Martinez, Stephens, Summers, Overbeck; Troxell, Cunniff, Horak
20. Items Relating to Broadband Facilities and Services. (Adopted on First Reading)
A. First Reading of Ordinance No. 010, 2018, Appropriating Prior Year Reserves in the General Fund
as a Loan to the Light and Power Fund for the Electric Utility's First Year Operations and
Maintenance Costs for Telecommunication Facilities and Services.
B. First Reading of Ordinance No. 011, 2018, Amending the Code of the City of Fort Collins to
Authorize and Implement the City's Provision of Telecommunication. Facilities and Services as
Provided in City Charter Article Xll, Section 7.
The City has been engaged in a multi -year process of research, due diligence, and community
engagement that resulted in two successful ballot measures. The first in November 2015 gave the City
the authority to provide high-speed broadband services to the community, the second, in November
2017 added telecom activity to the City Charter and demonstrated support for borrowing up to $150
million to provide fiber to the premise infrastructure.
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At the November 28, 2017, Council Work Session discussion concerning the City's Broadband
updates, including an estimated timeline, major milestones, appropriation and governance
recommendations, staff highlighted the need to dedicate resources to support further development
and details associated with a Municipal Retail model.
Staff is requesting $1.8M of funding to be appropriated to support first year start-up costs associated
with recruiting and hiring personnel, consulting, equipment, and branding to support the initiative.
Funding would come from the General Fund as a loan to the Light and Power Fund as start-up funding
until bonds can be issued to support the total broadband build out. The bonds will be structured
allowing a planned repayment to the General Fund of start-up costs supported by this appropriation.
The reserves will be restored from the proceeds of the bond issuance, pending the Council's adoption
of the corresponding bond ordinance (currently scheduled for the March 20 and April 3 meetings).
To evidence the repayment of this loan, the City Council, acting as the Electric Utility Enterprise Board,
will be considering an ordinance in a separate agenda item at this meeting which will agree to and
direct the repayment of this loan to the General Fund when the bond proceeds are received.
In addition, certain City Code changes are needed to authorize the City Electric Utility to begin
implementing its provision of broadband facilities and services and to receive and expend the General
Fund loan through the Light and Power Fund. These changes are proposed in Ordinance No. 011,
2018, which accompanies this agenda item.
The changes in Ordinance No. ,011, 2018, relate to the Charter amendment the voters approved this
past November that grants to Council the power to authorize the Electric Utility to acquire, construct,
provide, fund and contract for telecommunication facilities and services and that grants to the
Enterprise of the Electric Utility the power to issue bonds to fund these facilities and services. These
changes also include assigning to the City Manager the direct responsibility to administer and
supervise the Electric Utility's provision of broadband facilities and services.
City Manager Atteberry stated new suggested language would authorize the City Manager to
delegate supervision of the utilities to the Deputy City Manager.
Mike Beckstead, Chief Financial Officer, stated this appropriation is for $1.8 million. He
discussed the plan for moving the broadband proposal forward.
Glen Akins thanked the City and voters for providing this opportunity.
Hannah Johnson, ASCSU, thanked the City for its commitment to innovation and stated this is an
amazing opportunity. The ASCSU Senate has a formal resolution in support of the broadband
initiative.
Eric Sutherland opposed the residential electric rate schedule. He opposed the broadband ballot
question language.
City Attorney Daggett showed the language change which would give the City Manager additional
discretion in shaping the management team working on utilities, specifically broadband. The
amendment would amend Ordinance No. 011, 2018. She stated part of the purpose of the language
was to allow it to change over time.
City Manager Atteberry confirmed that purpose and stated there may be a time in the future in
which all 5 utilities would fall under the Utilities Executive Director, and this would allow the City
Manager to make that change administratively.
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January 2, 2018
Mayor Pro Tem Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance
No. 010, 2018, on First Reading.
Councilmember Summers asked why $1.8 million needs to be borrowed from the General Fund.
Beckstead replied conversations were held to determine if pulling the funds from the Light and
Power reserves or the General Fund reserves would be better. Conversations with Council have
indicated Light and Power ratepayers will not be subsidizing the broadband startup.
Councilmember Summers stated money could be borrowed from Light and Power and paid back
with interest, therefore the ratepayers would actually receive a benefit.
Councilmember Cunniff stated he is leaning toward using General Fund reserves citing concerns
that there are maintenance needs in the Utility fund that, if borrowed against, would increase the
cost to ratepayers.
Councilmember Summers stated the infrastructure needs were related more to the General Fund
and noted the bonds are expected to be issued by March or April.
City Manager Atteberry stated this decision is within Council's discretion. He has been consistent
in thinking this should come from the General Fund in order to keep the funding pure and, to date,
the General Fund has covered the broadband conversation. However, the final decision remains
with Council.
Councilmember Martinez asked how many outstanding loans against the General Fund exist.
Beckstead replied there are a couple loans with the Urban Renewal Authority, about $5 millionfor
the Summit project, and about $2.5 million for the Innosphere project. Some of those loans have
come from the Water Fund, however. Beckstead stated he would provide a follow-up memo with
details.
Mayor Pro Tem Horak agreed with the staff recommendation for the use of the General Fund.
City Manager Atteberry corrected a statement and noted the Light and Power Fund did contribute
to some of the broadband planning. He stated he would provide follow-up details.
Councilmember Cunniff thanked voters for supporting' this initiative and commended City staff
for their work. '
Councilmember Martinez stated he wants assurance the loan is repaid regardless of which fund is
used.
Councilmember Overbeck stated he would support the motion and discussed the importance of
maintaining net neutrality and consumer protection.
Councilmember Summers stated this is a vote about funding, not broadband itself.
Councilmember Stephens thanked the speakers and citizens for their support.
Mayor Troxell thanked the speakers and staff for their work.
City of Fort Collins Page 135
January 2, 2018
RESULT: ORDINANCE NO. 010, 20181ADOPTED ON FIRST READING [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ross Cunniff, District 5
AYES: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
Mayor Pro Tern Horak made a motion, seconded by Councilmember Cunniff, to adopt Ordinance
No. 011, 2018.
Mayor Pro Tern Horak stated his motion does not include the new language as the current language
still allows for charge changes.
Councilmember Cunniff agreed with Mayor Pro Tem Horak.
Mayor Troxell encouraged Mr. Sutherland to have a conversation to affect change rather than go
to court.
RESULT: ORDINANCE NO. 011, 2018, ADOPTED ON FIRST READING [UNANIMOUS]
MOVER: Gerry Horak, District 6
SECONDER: Ross Cunniff, District 5
AYES: Martinez, Stephens, Summers, Overbeck, Troxell, Cunniff, Horak
• ADJOURNMENT
The meeting adjourned at 8:08 PM.
Mayor
ATTEST:
City C rk
City of Fort Collins Page 136