Meeting Summary
Council voted 4-3 to not increase the minimum wage in Fort Collins (Arndt, Canonico, Peel, Gutowsky No Ohlson, Francis, Pignataro Yes). Hear and read all of public comment below.
Council voted final passage 6-1 (Peel No) to Amending the Land Use Code to Include Guidelines and 1041 Regulations for the Administration of Designated Areas and Activities of State Interest. The 1041 powers give local governments the ability to regulate particular development projects occurring within their jurisdiction, even when the project has broader impacts. The 1041 regulations would allow for reviewing and permitting of two designated areas and activities of statewide interest: (1) major domestic water, sewage treatment; and (2) highway projects.
Council voted 6-1 (Ohlson No) to postpone indefinitely Amending the Land Use Code to Include Water Adequacy Determinations
The Issue: Minimum Wage
Public Comment Audio and Transcript
Meeting Notes
Fort Collins City Council Regular Meeting
Date & Meeting time: 5/16/23 @6:00 PM
Members Present: Mayor, Jeni Arndt. Mayor Pro Tem/Councilmember District 6, Emily Francis. Councilmember, District 1, Susan Gutowsky. Councilmember, District 2, Julie Pignataro. Councilmember, District 3, Tricia Canonico. Councilmember, District 4, Shirley Peel. Councilmember, District 5, Kelly Ohlson
Others present to note (media, public, other agencies):
Fort Collins Connexion (Broadband) Executive Director Chad Crager
Senior Environmental Planner Kirk Longstein
Senior Policy and Project Manager Ginny Sawyer
Senior Planner Jenny Axmacher
Public Comment Summary
For Minimum Wage Increase Proposal
“Workforce Development Centers talk to us about how hard it is to get people in elder care, health care construction, because of wages. And I think we have a lot of workers working with an enormous amount of integrity and dignity. But the wage that they're being paid does not honor their hard work and their dignity. We all know what $13.60 buys us right now, in terms of rent, childcare, groceries, gas, just not very much.”
Raising employee wages…. “And more importantly, I'm proud to say that the decision has not jeopardized the financial viability of our organization. Rather it has had the opposite effect. It has improved employee satisfaction, reduced turnover and the costs associated with that turnover and enhanced productivity.”
It’s increasingly expensive to live in Fort Collins and raising the minimum wage would help with basic living expenses
Studies show raising the minimum wage has a higher rate of those additional wage dollars being spent in the local economy vs wage increases higher up the wage scale
Support Individuals and Families
Studies show there is no negative downside to employment from raising the minimum wage
Raising the minimum wage would help fill positions at the lower end of the wage scale which have been increasingly hard to fill
The majority of minimum wage workers are above 25 and 30% are above 30
Home Care workers get paid low wages and raising the minimum wage would help this group of individuals make ends meet and attract better employees
Many minimum wage jobs were essential during the pandemic period and proves how important these jobs are to society
Workers paid a higher wage are more productive and more stable employees
Against Minimum Wage Increase Proposal
“it would be over $150,000 for one in wage increases and almost $250,000 in the other. Just on an increase in minimum wage, we don't pay our full minimum wage employees anywhere close to that, because the market doesn't dictate that anymore. We have to pay we are paying 2021 $22 an hour for our line cooks, we're paying 1819 and 20. For our dish machine operators, they're valuable employees that we want to keep the people that will have a wage increase from this are the tip credit employees that are our bussers, our servers and our bartenders. I don't know if we can figure out how to offset the $100,000 of wage increases in our businesses. Aside from making menu prices increases, which in turn, affect inflation, and then the whole cycle continues”
Pause minimum wage to avoid a greater shit to automation and AI impacts
Minimum wage workers may be moved to part time and may also lose benefits if a wage increase occurs
Raising the minimum wage puts business in a competitive disadvantage to surrounding areas because cost increases will be passed on in higher prices
Minimum wage discussions should occur at a regional level
Wage increases will be passed on to consumers via higher prices
Raising the minimum wage will reduce other benefits and perks for employees
Raising the minimum wage would especially hurt restaurants
Some restaurants could close reducing jobs, and prices would increase for customers
Minimum wage adjustments are for businesses to dictate not local government
Other Issues Public Comment
Consider a sales tax for affordable housing
In favor of 1041 regulations
Item 7 Connexion Broadband Arrangement Discussion with Larimer County Chad Crager
1000 premises near JJs corner at Harmony and Taft Hill
Larimer County will pay for design construction and drops including oversight of construction from a management company
Fort Collins will share 25% of revenue from locations until payment is complete back to the county estimated at taking 25 years
Any damage incurred during installation (happens very rarely) is paid to fix the damage issue
Discussion Item 9 Second Reading of Ordinance No. 071, 2023, Amending the Land Use Code to Include Guidelines and Regulations for the Administration of Designated Areas and Activities of State Interest.
Staff Presentation Senior Environmental Planner Kirk Longstein
1041 Regulations Permitting Process
Impacts Domestic Water, Waste Water, Highway, Interchanges
3 Stage Review Process
Applicability of Standards (FONSI Finding of No Significant Impact)
Full Permit Review (Completeness Check & Neighborhood meeting)
Permit Decision Making (Planning and Zoning, City Council)
Removed Pipe Size Diameter
Excludes Projects within the existing right of way
Added a definition to redefine Applicability of Standards determination FONAI to a FONSI, Impact, Cumulative Impacts, Significance
Added a conceptual submittal document that summarizes the potential for a significant impact
Moved neighborhood meeting requirements to after review of the applicability of standards
Extend comment period during the pre-application activity review
Second Reading Amendment 1 Delete reference to Council Pre-Application Hearing Regarding Areas and Activities of State Interest
Mitigation guarantee if FONSI issued
Public Comment
Joe R District 5
1041 agreements will be run by consultants
Intergovernmental Agreements would be have clearer outcomes and run by the city
Recommends pausing on approval
A project of an acre is considered statewide interest
Mayor Arndt Question about using consultants
Senior Environmental Planner Kirk Longstein Consultant support would be needed to administer the 1041 permitting process working with existing staff. Intergovernmental Agreement support staffing requirements have not been studied
Councilmember Peele Question about financial guarantees
Senior Environmental Planner Kirk Longstein Financial guarantees are required for plans to address restoration of habitat buffers
Mayor Arndt Question about cost to get a 1041 permit
Senior Environmental Planner Kirk Longstein
Basic Development Review 15k
Full Permit Application 24k
3rd Party costs 20-30k
Total cost ~64k which is under 100k
Mayor Arndt Question about timelines
Senior Environmental Planner Kirk Longstein
Step 1 30 days to determine if the process is required
Step 2 60 days to collect application materials
Steps 3 Neighborhood Meeting and then Council Review within 90 days
Total timeline 6-9 months
Amendment 1 Remove Pre-Application Council Meeting Option Passes 7-0
Amendment 2 Discussion guarantee that proposed mitigation that considered by the Director in issuing a FONSI is completed
Councilmember Peel Question Clarification about potential double mitigation financial planning
Staff
Applies to FONSI Finding of No Significant Impact Mitigations only not full permit which is a separate code section
FONSI is end of permitting process with the city
Amendment Passes 7-0
Councilmember Ohlson-Regulations are not as restrictive as other areas and covers less items. It’s a cautious approach. Thanks Staff
Mayor Pro Tem Francis- City code does not allow for many additional items. Thanks Staff.
1041 Regulations Pass 6-1 Peel voting no
Mayor Arndt asks for staff report in a year on how the process is going
Discussion Item 10 Minimum Wage Adjustment for Fort Collins
Ginny Sawyer Senior Policy and Project Manager
Other Larimer County areas have not signaled interest in regional approach
If adopted implemented January 1, 2014
Minors can be paid 15% less
Tipped Wage would be $3.02 cheaper then minimum wage
Minimum wage ramp up by 2027 Minimum Wage Option A $17.15 Option B $17.81 both options adjust to Consumer Price Index after that date
Councilmember Canonico any studies around impacts to areas with population around Fort Collins
Ginny Sawyer No, For Denver many levers for Cause and Effect
Mayor Arndt
Supports minimum wage increase at the state level
Agreed with all comments
Complicated issue
Child Care workers should make more
Small Businesses would leave Fort Collins and/or price increases, more chains and corporatization
Hurts small businesses can’t exempt employers with less than 20 people
Unemployment insurance fund has additional costs to businesses
Will vote no
Mayor Pro Tem/Councilmember Francis
Cost of living varies in the state and has dramatically increased in Fort Collins over the past 5 years
Many employees make below $17-$18 an hour
This is an affordability issue workers can’t meet basic necessities
Impacts women and people of color more, equity issue
Workers come to fort collins because they can’t afford to live here
Consumer Price Index guardrail adjustments happen after 2017
Will vote yes
Councilmember Pignataro
Will help people save for housing
Money obtained will be spent in the community
Support option B higher wage option
Councilmember Canonico
Supports all commenters
Tough Decision
Colorado and by extension Fort Collins have increased and continue to increase the minimum wage
Businesses are dealing with a lot of issues pandemic recovery leave,
Early Childhood Workers are a concern and Larimer County will have a ballot initiative to potentially increase pay for that sector
Suggests increasing 2.5% over CPI every year instead of higher increases from 2014-2017
No on current proposals
Councilmember Gutowsky
Appreciates public comment
Many employers are paying above minimum wage market is driving wages
Many businesses are doing ok
85% of businesses in Fort Collins have less than 50 employees
Businesses are a way for owners to make money and some would have issues with survivability
Layoffs may occur
Prices would increase so wage increases would have less of an effect
Not supporting
Councilmember Ohlson
Very Disappointed
Documentation did not address positive impacts in his view
Lowest paid workers should be paid more
Stories are not better than data
Most studies show there are minimal negative impacts
People have more to spend and spend in the economy
Supports highest minimum wage option that could pass
Asked if 20 workers or less or tipped workers could be exempt can’t from state
Councilmember Peel
Research and data depend on variables hard to find data reflecting this area
Government regulation is increasing costs
Local businesses talked to and gave hard numbers that show negative impacts, higher costs passed on, lower hours, choosing to stop operating overall
Some non profits said this would hurt them
Mayor Pro Tem/Councilmember Francis
Community is very split
Some businesses ok with changes
People having more autonomy with higher wages on how to spend is good
Mayor Arndt
Government is telling businesses to pay workers more
Another option government to make direct payments to low income individuals so government shoulders cost not businesses
Income supplemental discussions with Denver
Councilmember Ohlson
Interesting concept but another tax payer subsidy to corporations
Councilmember Canonico
Reach out to state legislators about changing law to exempt small businesses and tipped workers from minimum wage increasese
Minimum Wage Option B increase fails 4-3 Arndt, Canonico, Peel, Gutowsky No Ohlson, Francis, Pignataro Yes
Councilmember Canonico
Explore Regional and/or Boulder Consortium Approach
Boulder Consortium timeline rate this year and implementation next year
Discussion Item 11 Amending the Land Use Code to Include Water Adequacy Determinations
Staff Presentation Senior Planner Jenny Axmacher
Policy needs to be updated for more complicated development and dealing with multiple water providers
Proposed policy 3 categories (Established Potable Water, New Potable water entities, Non-Potable water like irrigation)
Review happens once by CDNS director with consultant support and is not appealable
New Potable water provider evaluation criteria includes water quality and quantity, dependability of supply and supplier, availability of supply, and financial sustainability of supplier
Proposed code changes were shared with stakeholders for feedback and all existing water providers within city limits participated
Council Decision Points
When would permit determination occur (Suggest Final Development Plan/Basic Development Review with an option to defer until building permit process)
Established Provider Review providers would need to provide a letter or water supply plan to council outlining water resources prior to submitting will serve letters
New(other) providers to exclude from established providers service area or get their consent to operate
Planning and Zoning recommend additional time to study policy impacts
Staff recommending approval of changes
Public Comment
Tim G East Larimer County Water District Counsel
ELCO has a detailed analysis process for an applicant wishing to remove from a supplier
Fort Collins will regulate business models of existing suppliers
Additional proposed changes have been made after Planning and Zoning review
Recommends postpones changes and gather more input
Max M
ELCO doesn’t have it’s own water supply
To add water supply ELCO must consent or exclude the property and there is no interest in either option
Suggest follow Colorado law to simplify process
Executive Session 6-1 Ohlson votes No
Water court litigation questions from proposed changes around water adequacy
Water adequacy change impacts to existing federal state or local law
Councilmember Peel-Did not have time to fully review documentation prior to the meeting will vote no
Mayor Pro Tem Francis- Suggests postponing vote and having discussions during a council work session
Councilmember Pignataro- Supports Francis approach and also is interested in Planning and Zoning feedback
Vote to postpone indefinitely 6-1 Ohlson No vote
Other Business
Councilmember Canonico- Discuss Minimum Wage with Boulder Consortium of cities and other regional areas
Councilmember Pignataro- Explore a city led regional approach
Staff- Will give updates via memos on progress to either of these approaches
Councilmember Canonico- Add Minimum Wage Increase to the legislative agenda
Staff- Will add to legislative review committee agenda
Council vote to extend the time for the hearing of the appeals filed regarding the Planning and Zoning Commission’s March 23, 2023, decision approving the Ziegler/Corbett Overall Development Plan Major Amendment, MJA220004, to September 5, 2023. Passes 7-0
Council will discuss temporary council member appointment (since 2 existing members will be absent) to the Metropolitan Planning Organization (MPO) for voting items as the first item during the 5/23 council work session timeslot
Observer Follow-Up Questions
Will the minimum wage be addressed again with a proposed increase of Consumer Price Index plus 2.5%
Will there be additional discussion or research around government payments to lower income workers directly?
When will staff bring Water Adequacy discussions back to Council?
What is the timeline for next steps on Minimum Wage engagements with Boulder consortium, regional engagement and/or leading a regional consortium?
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