City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, OCTOBER 28, 2014 1. The meeting was called to order at 7:30 p.m., and was opened with the Pledge of Allegiance. Councilmembers present were Mayor Karen Sheek, Bob Archibeque, Tom Butler, Mayor Pro-tem Ty Keel, Orly Lucero, Shawna McLaughlin and Jim Price. Staff members present were Director of Planning and Building Kirsten Sackett, City Planner Tracie Hughes, Airport Manager Russ Machen, Chief of Police Roy Lane, Account Clerk/Deputy City Clerk Sara Coffey, City Manager Shane Hale, and City Attorney Mike Green. There were seven people present in the audience. 2. The Consent Agenda items acted upon by Council were as follows: a. Approval of the Worksession and Regular Meeting Minutes of October 14, 2014. b. Approval of the payment of the Expenditure Vouchers of October 28, 2014. c. Approval of a renewal 3.2% Beer Retail Liquor License for Wal Mart Stores Inc., DBA Wal Mart Store No. 0966, located at 1835 East Main Street, Cortez. d. Approval of a Change in Trade Name from Koko’s Friendly Pub and Grill to the new name, Destination Grill, and a renewal Tavern Liquor License for Cortez Conference Center LLC, located at 2121 East Main Street, Cortez. Mayor Pro-tem Keel moved that Council approve the Consent Agenda, with the additional expenditure list totaling $160,294.49. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes 3. PRESENTATIONS – None. 4. CITIZEN PARTICIPATION - None. 5. PUBLIC HEARINGS a. Resolution No. 22, Series 2014. City Planner Hughes stated that Trevor Lytle, on behalf of property owners Victor and Magdalena Nunez, has submitted an application to the City for review of a site development plan for the construction of a new restaurant on property addressed as 1019 East Main Street. She stated that the restaurant would have seating for 78 inside and 32 outside and parking is proposed at 29 spaces which exceeds the requirement of 27.5 spaces. She stated that the applicant must complete an amended plat for the property prior to the construction of the restaurant as the boundary between the proposed restaurant site and the lot to the west needs to be adjusted. She stated that only the lot that will be developed was considered for meeting the requirements of CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 2 the Land Use Code. She reviewed the comments received from the utility suppliers and affected special districts and noted that CDOT (Colorado Department of Transportation) has approved an access permit for the property. She stated that the proposal meets the goals and objectives of the Comprehensive Plan and staff recommends approval through Resolution No. 22, Series 2014, with five conditions which were read for the record. In answer to a question from Mayor Pro-tem Keel, City Planner Hughes spoke about the request from the Cortez Sanitation District regarding the location of the sewer manhole and stated that a landscaped island has been removed from the drawings to provide the requested location for the manhole. She stated that in place of the landscaping, two additional parking spaces will be available which allows room for the Cortez Sanitation truck to complete maintenance in the area. Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Councilmember Archibeque moved that Council approve the site development plan for the construction of a new restaurant on property located at 1019 East Main Street, for property owners Victor and Magdalena Nunez, through Resolution No. 22, Series 2014, with five conditions. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Great Lakes Airlines Operations Lease. Airport Manager Machen stated that the current airline lease with Great Lakes Airlines expires at the end of this year and the City has agreed to offer a new lease with modest increases in building rent to reflect projected future utility costs. He stated that the square foot cost increase was figured at 2.1% inflation rate per year over the four year period commencing January 1, 2015 and expiring December 31, 2018. He stated that an incremental increase to the landing fees is also proposed which helps defer airfield maintenance costs and regulatory requirement specific to an airline’s operations. Councilmember McLaughlin moved that Council approve an operations lease with Great Lakes Airlines to be effective through December 31, 2018. Councilmember Archibeque seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes b. Grant Agreement between the State of Colorado of Local Affairs and the City of Cortez. City Manager Hale stated that the City was awarded a $1,000,000 Energy and Mineral Impact Assistance Grant to be used towards the Cortez Fiber Expansion Phase II Project. He stated that the City needs to accept this money formally by entering into a contract with the State. He stated that the matching amount for the grant is $1,000,000 and would be pledged from three funds, $250,000 from the Cortez Community Network (CCN) fund reserves, a $250,000 loan to the CCN fund by the General Fund, and a $500,000 loan to the CCN fund by the Equipment Fund. He explained that CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 3 the loans/transfers were originally reflected in the 2014 Budget, but will be carried over and reflected in the 2015 Budget. He stated that the project would add 27 miles of fiber and complete the Fiber to the Business loop. Mayor Pro-tem Keel moved that Council authorize Mayor Sheek to sign the Grant Agreement between the State of Colorado Department of Local Affairs and the City of Cortez, for project EIAF 7509 – Cortez Fiber Expansion Phase II. Councilmember Price seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes c. Resolution No. 23, Series 2014. Director of Planning and Building Sackett stated that the City of Cortez has received an application for a replat of property owned by Black Oil Company, Inc., approximately addressed as 420 South Broadway, located at the southeast corner of the intersection of South Broadway and Third Street. She stated that the property consists of four separate tracts of property, totaling 1.82 acres in size, and the applicant is proposing a plat amendment to consolidate the four tracts, removing lot lines and creating two new lots, to be named Lot A and Lot B of the FD Replat. She stated that Lot A, with 40,119 square feet, will be the location of the Family Dollar Store and Lot B, will be a vacant lot with 40,659 square feet. She stated that the property owners have been working with the utility providers to complete the requirements which were placed on the site plan proposal, which was approved by Council on April 22, 2014, through Resolution No. 12, Series 2014. She stated that condition “g” of the resolution noted that the replat would be required prior to issuance of a building permit. She stated that Section 6.09 of the City’s Land Use Code describes the conditions under which a replat or plat amendment may be allowed and noted that the request meets the requirements as the proposal is to vacate one or more lot lines between adjacent lots when the owner of such property join in the application for the plat amendment. She stated that staff recommends approval through Resolution No. 23, Series 2014, with three conditions including that the property owners shall be responsible for any costs associated with any necessary utility relocation or realignment. In answer to a question from Mayor Sheek, Director of Planning and Building Sackett stated that the project would probably not begin until spring. Mayor Pro-tem Keel moved that Council approve the application for the replat of a portion of Tract 1 of the Payson Townsite, as submitted by Leading Tech Development, agent for owner Black Oil Company, Inc., through Resolution No. 23, Series 2014, with three conditions. Councilmember Archibeque seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes d. Discussion on the Location of DO Cortez in Relation to Retail Marijuana Distance Requirements. Director of Planning and Building Sackett stated that after the recent adoption of the retail marijuana regulations, staff created an updated map that depicts the locations of the current medical marijuana facilities located in Cortez. She stated that during staff discussion of the locations of current marijuana facilities it appeared that DO Cortez, previously called True Earth, did not meet the distance requirements as it was too close to the park. However, after conducting CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 4 additional research, it was discovered that the medical marijuana regulations do not include a distance requirement to parks but the new retail regulations have included parks. She stated that the new regulation would therefore not allow DO Cortez to apply for a retail license for their current location. Director of Planning and Building Sackett noted that the zoning for the marijuana facilities have always remained the same since the first ordinance adopted in 2010; however, it is unclear why parks was taken out of the ordinance that was finalized in 2012. She reviewed the history of marijuana ordinances since 2010 and commented that if the intent of Council was to adopt the retail marijuana ordinance with similar distance requirements as required for medical marijuana facilities, then the park distance may not have been meant to be included in the most recent ordinance. City Manager Hale noted that in the original medical marijuana ordinance (No. 1135, Series 2010) the City’s regulations required that the marijuana facilities must be 500 feet from any public, private, or charter school, licensed day-care facility, licensed pre-school, or dedicated public park; however, the language was changed in the 2012 ordinance, possibly due to the State Statue language which does not include parks in their distance requirements. He stated that Ordinance No. 1164, Series 2012, reads that all medical marijuana facilities, shall be at least 1,500 feet from any school, alcohol or drug treatment facility, the principal campus of any college, university, or seminary, residential child care facility or other medical marijuana business. However, due to the location of a local drug and alcohol facility being too close for an already established marijuana facility, it was removed through Ordinance No. 1165, Series 2012. City Manager Hale stated that when Ordinance No. 1192, Series 2014, was completed for retail marijuana licensing, the language was pulled from a Steamboat Springs ordinance and their ordinance included parks. He stated that DO Cortez meets the distance requirements for their medical marijuana facility; however, they would not be allowed to expand to retail sales as the regulations now have the parks as a distance requirement. City Attorney Green stated that it would be cleaner for the City to amend the current ordinance regarding the distance requirements to a park rather than issue a waiver to the park requirements. In answer to a question from Councilmember McLaughlin, City Attorney Green stated that it would not increase the availability of space for additional marijuana facilities as the Federal Government requirements are that a marijuana facility shall be at least 1,000 feet away from any school due to the Drug Free Zone regulations. In answer to a question from Mayor Pro-tem Keel, Director of Planning and Zoning Sackett stated that the discussion held at the last Council meeting regarding the Industrial Zone and the closeness of parks in that area is a different discussion as currently the Industrial Zone is not an allowed zone for marijuana facilities at all. In answer to a question from Councilmember Archibeque, Director of Planning and Building Sackett stated that currently there are four medical facilities and no one has been approved for a retail license and that the current facilities may choose to stay medical facilities only. She commented that it appears the only available space for a new marijuana facility is along South Broadway and depending on which marijuana facility is approved first, that will then determine if more than one facility could be located in the area. She pointed out that this requirement is due to the fact that marijuana facilities cannot be located within 1,500 feet of another marijuana facility. Discussion was held regarding the issuance of a waiver and/or cleaning up the language eliminating parks from the current regulations. City Attorney Green stated that if Council would like the parks requirement taken out of the distance regulations, he could prepare an ordinance for first reading on November 11, 2014. City Manager Hale noted that if it was not Council’s intent to have parks CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 5 included in the distance requirements for retail marijuana facilities, then the ordinance should be changed. Director of Planning and Building Sackett stated that she feels the addition of parks in the regulations for retail marijuana was unintentional and that staff had felt all along that they wanted to operate the retail marijuana regulations in the same manner utilized for medical marijuana. Jonny Radding, owner of DO Organics, pointed out that parks is not included in the medical marijuana regulation ordinance and commented that he had spoken several times with City staff regarding the location of True Earth and it was assured that the premises meets the requirements for a marijuana facility. He stated that he appreciates the City fixing the regulation but requested that the Council issue him a waiver so he can move forward with his retail license application. He commented that he has an appointment in Denver with the marijuana officials on November 10, 2014, to review his retail marijuana license application and the State has an approximate turn- around of 30 days for approval and he would like to be able to proceed with the City license in that time frame. City Manager Hale stated that he would recommend that Council change the regulations rather than issue a waiver as the ordinance would be presented to Council for review on final reading by the end of November allowing Mr. Radding time to submit his retail license to the City by the end of the month. Mr. Radding stated that he would like some assurance that he would be allowed to apply for a retail license and Mayor Sheek stated that she wants the City to do right by the business and fix the ordinance. In summary of the discussion, Council agreed to have an ordinance prepared for first reading on November 11, 2014, eliminating parks from the distance requirements and mirroring what is required for medical marijuana facilities in regard to distances. e. Contract with Rudosky Golf, LLC. Director of Parks and Recreation Palmquist stated that the current contract with Rudosky Golf, LLC, for golf professional services at the Conquistador Golf Course will expire on December 31, 2014. He stated that Rudosky Golf, LLC (Micah Rudosky) continues to provide exceptional customer service at the Conquistador Golf Course, and it is recommended that the City continue to retain Mr. Rudosky’s services as the golf professional at our golf course. He stated that the new golf professional contract would increase the annual base amount from $30,000 to $32,000 and from 9% to 10% of the fees collected for private cart use on the course. He stated that Rudosky Golf LLC, will be eligible for a yearly bonus based on revenue increases from the daily fees collected and that the past three year’s average for daily fees collected has been adjusted up from $133,868 to $141,187. He stated the project amount to be paid out in the 2015 budget is $36,382. Council agreed that the services provided by Mr. Rudosky are exceptional. Councilmember Archibeque moved that Council approve the golf professional contract with Rudosky Golf, LLC, for three years commencing on January 1, 2015, and expiring on December 31, 2017. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes f. Lease Agreement for Mountain Bicycle Multi-Purpose Trail. Director of Parks and Recreation Palmquist stated that a lease agreement with Keith Evans for lease of property that is located to the east of the Geer Natural Area and north of the Carpenter Natural Area and Trail is being presented to Council for approval. He stated that the land is not in the City limits; however, the lease would give the City control over the land for use as a mountain bike multi-purpose trail facility. He stated CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 6 that the property would be considered a part of the City of Cortez and is similar in nature to the softball complex located south of the City. He stated that the property is approximately 40 acres and would provide another five and a half miles of hiking/mountain bike trails to the Carpenter Natural Area. Mr. Evans commented that the City should be commended for staying on the ball and offering the quality of life to its citizens that is so important and beneficial to everyone. Director of Parks and Recreation Palmquist noted that Mr. Evans has been one of the community volunteers that has been helping to establish the new trails in the Geer Natural Area. Council thanked Mr. Evans for allowing the City to add his property to the trail system and for his work on the new trails. Councilmember McLaughlin moved that Council approve the lease agreement with Keith Evans for the use of property located to the east of the Geer Natural and north of the Carpenter Natural Area for a mountain bike multi-purpose trail facility. Mayor Pro-tem Keel seconded the motion, and the vote was as follows: Archibeque Butler Keel Lucero McLaughlin Price Sheek Yes Yes Yes Yes Yes Yes Yes 8. DRAFT ORDINANCES/RESOLUTIONS – None. 9. ADDITIONAL CITIZEN PARTICIPATION – None. 10. OTHER ITEMS OF BUSINESS 11. CITY ATTORNEY’S REPORT – None. 12. CITY MANAGER’S REPORT a. Recreation Center Pool/Street Rehabilitation/State of the Community Update. City Manager Hale stated that the pool boilers at the Recreation Center need to be replaced and the new boilers should be received in about two weeks. He stated that as soon as the boilers are received, they will be installed by staff within a few days. In answer to a question from Mayor Pro-tem Keel, Director of Parks and Recreation Palmquist stated that the current boilers have been in place for ten years and usually have a life expectancy of seven to eight years. Mayor Sheek asked that a notice be placed at the Recreation Center that the pool is cool due to the boiler being down. City Manager Hale also stated that Sligo Street has been paved and should be painted and re-opened on Wednesday, October 29, 2014. He stated that street rehabilitation on East Second Street is also complete and the chip and seal project will be completed within the week. He noted that the Chamber of Commerce is hosting a State of the Community forum at 7:30 a.m. at the San Juan Coffee Company on Wednesday, October 29, 2014, if anyone would like to attend. 13. CITY COUNCIL COMMITTEE REPORTS a. Mayor’s Report on Workshop. Mayor Sheek stated that during the workshop budget presentations were made by City Departments: Airport, IT Department, Library, Municipal Court, Marketing, and Planning and Building. She stated that Council general information included a CITY COUNCIL REGULAR MEETING OCTOBER 28, 2014 PAGE 7 review of the year for Southwest COG and the City was notified that they will receive funding from the State of Colorado Energy and Minerals Impact Grant that will be used to re-write the Land Use Code. b. Mesa Verde Country Tourism Board. Councilmember McLaughlin stated that Executive Director Heather Hughes has resigned from the board and April Ralph will be serving as an Interim Director until a new director can be hired. c. Parks, Recreation, and Forestry Advisory Board. Councilmember Butler stated that work continues on the trails that are being constructed at the Geer Natural Area and discussion at the Parks, Recreation, and Forestry Advisory Board include Capital Improvements projects for 2015 and 2016. He stated that the Centennial Park pond reclamation project is ongoing and tree trimming continues. The regular meeting was adjourned at 8:45 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ___________________________________ Sara Coffey, Deputy City Clerk