City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, MAY 10, 2016 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, Mayor Pro-tem Ty Keel, Bob Archibeque, Jill Carlson, Orly Lucero, Shawna McLaughlin, and Tim Miller. Staff members present were Director of Public Works Phil Johnson, Director of General Services Rick Smith, Airport Manager Russ Machen, Director of Planning and Building Sam Proffer, Chief of Police Roy Lane, City Clerk Linda Smith, City Attorney Mike Green, and City Manager Shane Hale. There were six 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 April 26, 2016. b. Approval of the payment of the Expenditure Vouchers of May 10, 2016. c. Approval of a Special Events Permit from the Cortez Area Chamber of Commerce, to host an event on May 12, 2016, at 31 West Main Street, Cortez. Mayor Pro-tem Keel moved that Council approve the Consent Agenda, with the additional expenditure list totaling $5,326.81. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes 3. PRESENTATIONS – None. 4. CITIZEN PARTICIPATION a. Montezuma-Cortez High School Dormitory Request. Debra McVicker, 16045 CR T, Cahone, stated that she is a CTE/Math Teacher at Montezuma-Cortez High School, and is concerned with the graduation rate for the students. She presented a proposal for a dorm-like structured environment that would house at risk students to graduate from high school. She stated that there is a successful program in Bloomfield and Shiprock, New Mexico. She stated that the program would help increase the graduation rate and hopefully help approximately 20 to 30 students. She stated that she is seeking funding for the project and was hoping Council could direct her on where to begin with the process. In answer to a question from Mayor Sheek, Ms. McVicker stated that she would like the dormitory to be close to the school, possibly across the street, and that it would be open the entire school year, seven days a week, and closed during the summer months. She gave Council a copy of her proposal which included information on the goals and objectives of the program as well as a proposed budget. In answer to a question from Councilmember McLaughlin, Ms. McVicker stated that she has spoken to School Superintendent Lori Haukeness, Human CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 2 Resource Director Dan Porter, principals, teachers, and students and they feel it is a positive move. City Attorney Green suggested that Ms. McVicker speak with the Housing Authority as they may be interested in joining in on the project. Council suggested that Ms. McVicker speak to the schools that have been successful with the program and obtain information on how they completed their process. In answer to a question from Ms. McVicker, City Manager Hale stated that Council has always been in support of education and the youth, but would need a more formal presentation before they could give their support for the project. 5. PUBLIC HEARINGS – None. 6. UNFINISHED BUSINESS - None 7. NEW BUSINESS a. Terminal Building Lease Extension to the Transportation Security Administration. Airport Manager Machen stated that the Airport has had a lease arrangement with the U.S. Federal Government for the Transportation Security Administration (TSA) since 2001. He stated that the purpose of the lease agreement is for the housing of their operational security staff and equipment. He stated that TSA occupies 453 square feet of terminal space in two offices in the Cortez Terminal, adjacent to the screening area and the baggage check-in areas. He stated that the TSA lease agreement is the same as the Airline lease agreement and they are charged the same on square foot usage. He reviewed the rate increases for the next five years and noted the new lease would be from July 1, 2016 to June 30, 2021. He stated that over the course of the five-years, the City will receive an increase of $4,419.02 in revenue which could be used to offset any utility rate increases over that period. Councilmember Archibeque moved that Council approve a terminal building lease extension to the Transportation Security Administration, commencing July 1, 2016, through June 30, 2021, at the increased lease rate. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes b. BLM Land Lease at the Airport. Airport Manager Machen stated that the U.S. Bureau of Land Management (BLM) currently has a land lease at the Cortez Municipal Airport for the purpose of an aircraft tanker base for forest fire suppression on BLM, US Forest Service, US Park Service, Bureau of Indian Affairs, US Park Service, and Colorado Forest Service lands. He stated that the BLM has notified the City of their interest in continuing operation of the tanker base for an additional four-year eight-month period, to align the lease in a calendar year format. He stated that the rent will be increased similar to how the City charges land leases for hangar construction. He stated that the fee was 22 cents and will be increased to 35 cents and a small fraction. In answer to a question from Councilmember Miller, Airport Manager Machen stated that there is not a cost to the City for the BLM to be located on the property. He stated that they have a water tap to the property so they can mix the slurry and they pay their own water bill. Councilmember McLaughlin moved that Council approve a four-year eight-month extension to the CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 3 Bureau of Land Management Land Lease at the Cortez Municipal Airport at the newly established land lease rate. Mayor Pro-tem Keel seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes c. T-Hangar Rate Increase at the Airport. Airport Manager Machen stated that the Airport assumed the T-hangars at the Airport about eight years ago when the FBO surrendered the lease back to the City. He stated that the City has kept the T-hangar rental at $50.00 and staff is recommending that, due to inflation and the condition of the T-hangars, the rental amount be increased to $60.00. He stated that the airport receives approximately $4,200.00 annually in rental revenue and with the proposed increase, an additional $850.00 per annum will be realized. Councilmember Archibeque moved that Council approve an increase of $10.00 per month in T- hangar rent through December 31, 2020. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes d. Letter of Support for Low Income Housing Tax Credits. City Manager Hale stated that the City has been approached by the Treadstone Group, who has recently purchased Valley Sun Village which is located at 700 East 2nd Street, for a letter of support for their redevelopment of the property. He stated that the property consists of 50 one-bedroom units and provides low income housing to senior citizens. He stated that the letter of support would be sent to the Colorado Housing Finance Authority (CHFA). He noted that the renovation will include new energy- efficient, Energy Star rated appliances and the total amount of the project is estimated at $3,326,400 ($66,528 per unit). Council agreed the housing development could use some updating which would include both interior and exterior improvements. Councilmember Carlson recused herself as she noted she represent Valley Sun Village as their attorney. Councilmember Archibeque moved that Council authorize the Mayor to sign a letter of support for the Treadstone Group, DBA Valley Sun Partners, to receive Low Income Housing Tax Credits for redeveloping Valley Sun Village. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes * Yes Yes Yes Yes Yes *Councilmember Carlson recused herself from the discussion and vote due to a possible conflict-of- interest. e. Intergovernmental Agreement between the Colorado Television Translator Association. Chief of Police Lane stated that the City applied for a grant from the Department of Local Affairs to place communication equipment on the Caviness Mountain DTR Radio site to enhance communications for the east side of Montezuma County, the Town of Mancos and the western part of La Plata CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 4 County. He stated that the Television District has offered to partner with the City on the project and place the equipment on their tower. He stated that there is no fee involved in the agreement at this time; however, if the utilities go up because the City’s equipment is located on the tower, they may ask for some fee in the future. Mayor Pro-tem Keel moved that Council authorize the Mayor to sign the Intergovernmental Agreement between the Colorado Television Translator Association and the City of Cortez for the purpose of expanding the State’s 800 MHz Radio System. Councilmember Carlson seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes f. 2016 Vehicle Bid. Director of General Services Smith stated that the 2016 Equipment Fund provides $130,000 for the purchase of three police vehicles (1-right hand drive jeep, 1 mid-size van, and 1 patrol pickup) and one utility pickup for Public Works. He stated that the 2016 Water Fund has budgeted $40,000 for the purchase of one utility pickup. He stated that two local bids were received and were compared to the Colorado State Bid, which had the local vendor preference and delivery charges attached to it. He stated that Bid Item 2 is for a full size ¾-ton 4 wheel drive, regular cab with utility bed and includes an extra snow plow package. He reviewed staff recommendations for award of the bid for the purchase of the five vehicles. Councilmember Lucero moved that Council award the 2016 Vehicle Bid as follows: Bid Item 1: one unit to the low-bidder New Country at the bid amount of $27,529.73; Bid Item 2: two units to the low-bidder New Country at the bid amount of $41,020.31 each; Bid Item 3: one unit to the low- bidder Keesee Motors at the bid amount of $24,564.00; and Bid Item 4: one unit to the low-bidder New Country at the bid amount of $30,221.40, for a grant total of $164,355.75. Councilmember Miller seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes g. Grant Agreement between the State of Colorado Department of Local Affairs and the City of Cortez. City Manager Hale stated that the City was fortunate to receive a $2 million dollar grant from the Department of Local Affairs, which will be used to remodel 123 Roger Smith Avenue for the new City Hall. He stated that staff anticipates that the grant will cover the lion’s share of the remodeling of the building. He stated that bids have been received on the project and information will be presented to Council for award of the project at the May 24, 2016, Council meeting, contingent upon receiving the executed grant back. He stated that staff will be meeting with the engineer to review the bids prior to the presentation before Council to see if any possible items could be cut. Mayor Pro-tem Keel moved that Council accept Energy and Mineral Impact Assistance Grant 9113, Cortez City Hall Renovation, and to authorize the Mayor to execute the agreement. Councilmember Lucero seconded the motion, and the vote was as follows: CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 5 Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes h. Commercial Lease Agreement with Lawson Construction. Director of Public Works Johnson stated that the Colorado Department of Transportation (CDOT) recently awarded Highway 491/Lebanon reconstruction project to Lawson Construction. He stated that Lawson Construction has contacted the City of Cortez and wishes to lease five acres of City-owned property located in the Industrial Park Expansion for the duration of the CDOT project which is estimated at approximately six months. He stated that Lawson Construction had used the property when they completed the North Broadway reconstruction, though the property was not owned by the City at that time. He stated that the property is a good staging area for the project and the contractor will restore the property to its original state after the project ends. He stated that the Lease Agreement stipulates a rental rate of $1,500/month for six months, equaling $9,000 total to be paid to the City. In answer to a question from Councilmember Carlson, Director of Public Works Johnson stated that the company won’t move from the property until the project is completed as there is nowhere else for them to go. Councilmember McLaughlin moved that Council authorize Shane Hale, City Manager, to sign the Commercial Lease Agreement with Lawson Construction Company to lease five acres of City- owned property in the Industrial Park Expansion area while Lawson is working on the Highway 491/Lebanon reconstruction project. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes i. Letter of Support for Tax Credits for Calkins Building. City Manager Hale stated that the City has been working with OWL Companies, Becky Barber, for many months in order to figure out the best way for the Calkins Building to be rehabilitated. He stated that Ms. Barber has a contingent offer with the School District to purchase the building and has recently been successful in placing the Calkins Building on the National Historic Register. He stated that in order to make the project profitable, Ms. Barber is attempting to garner tax credits for both the historical nature of the property as well as from the Colorado Housing Finance Authority (CHFA) since the property would include affordable housing units. He stated that Ms. Barber asked the City of Cortez for a letter of support for the tax credits. He stated that the City’s Comprehensive Plan is very supportive of this concept noting that the plan supports the development of safe and affordable housing as well as encourages infill development. Mayor Pro-tem Keel moved that Council authorize the Mayor to sign a letter of support for Becky Barber to receive Low Income Housing Tax Credits and/or Historic Tax Credits for redevelopment of the Calkins building. Councilmember Archibeque seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 6 8. DRAFT ORDINANCES/RESOLUTIONS – None. 9. OTHER ITEMS OF BUSINESS a. Citizen Request for Allowance of Manufacturing and Cultivation of Marijuana in the Industrial Park. City Manager Hale stated that the City allows grow, cultivation, and the sale of marijuana to occur in the Central Business and Commercial zoned properties in the City, with additional restrictions that include safe distances from churches, school, and other facilities. He stated that the rules that govern marijuana sales in the City were developed after countless hours of research and deliberation by an ad-hoc committee, staff, City Council, and the public at large. He stated that Council has been asked to consider allowing grow operations in the Industrial Park once before, but Council opted to restrict the use to the current zones. He reviewed the discussion that has occurred in the past on the request to allow marijuana to be grown in the Industrial Park and the main objections to the change. He stated that staff is oft-approached by people who would like the City to consider changing the rules that govern the industry in a variety of ways. He stated that opening the door on the code will likely result in additional and continued requests to Council to reconsider. He stated that no action is required for Council on the request; however, Council could direct staff to bring back a change to the City’s code that would allow the expanded use, to prepare more information for Council to consider prior to giving direction, or to direct staff not to prepare any changes to the code at this time. He stated that since there is no legislation in front of Council for consideration, he asked that no straw poll vote be taken. In answer to a question from Mayor Pro- tem Keel, City Attorney Green stated that a new use has not been added to the Industrial zone since Adult Entertainment was added (in 2000). City Manager Hale stated that it is not unprecedented to look at allowing different uses in zones throughout the City as currently Planning and Zoning is looking at allowing craft breweries in a different zone (Neighborhood Business). Mark Rogers stated that his proposal is to add the manufacturing and cultivation of marijuana in the Industrial Park. He spoke about the various buildings in the Industrial Park, several of which he owns, that are or will be vacant and that they could be used for the cultivation of marijuana. He spoke of the jobs that would be generated by allowing the buildings to be used for a grow type of use and noted that there would not be any sales taking place at the facilities. He spoke about how the smell of marijuana could be remedied for the buildings and noted that all security issues could be addressed. It was noted that the City would not receive a tax from the growing of the marijuana as the tax is received during the sale. Discussion was held on an excise tax and how that process would be handled which would require approval of the voters. City Attorney Green stated that it seems the distance requirement is also being requested to be changed as Mr. Rogers is asking that several buildings to be allowed to grow marijuana in the Industrial zone. Discussion was held on what affect grow facilities in the Industrial Park would have on other businesses. Council asked that staff provide more information on the request including input on the safety of grow facilities in the Industrial zone as well as insight as to why the use was not allowed in the Industrial zone in the first place. City Attorney Green stated that the dispensaries were allowed in the Central Business District/Commercial zone as it is in an area that is patrolled more often. City Manager Hale stated that he would have staff research information on the subject and report back to Council. 10. ADDITIONAL CITIZEN PARTICIPATION CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 7 a. Semi-Trucks using Chestnut Street for a Truck Route. Mark McLaughlin, 234 North Chestnut Street, stated that there are approximately five to ten semi-trucks that are traveling down North Chestnut Street every day. He stated that prior to the reconfiguration of Highway 491 he did not notice a lot of truck traffic on Chestnut Street. He stated that he is concerned that an accident will happen as there are a lot of children that live in the neighborhood. He asked that the City place ‘No Truck Traffic’ signs on Chestnut Street. City Manager Hale stated that there have been some complaints received about truck traffic on Empire Street and he stated that staff could complete some courtesy stops to see why people are driving down the different streets. Chief of Police Lane stated that he would have his officers watch and see if there is truck traffic in the area and if there is, they could stop the trucks and ask them why they are using the street. Director of Public Works Johnson stated that he would contact CDOT and make sure that there is not any issues with the trucks using an alternative route during the reconstruction of Highway 491 going north. 11. CITY ATTORNEY’S REPORT – None. 12. CITY MANAGER’S REPORT a. Clean-Up Geer Natural Area. City Manager Hale stated that the first clean-up day of the Geer Natural Area will be held on Saturday, May 14, 2016, and will be spearheaded by the Montezuma Land Conservancy. He stated that about 30 volunteers are anticipated and lunch will be provided following the clean-up time. 13. CITY COUNCIL COMMITTEE REPORTS a. Mayor’s Report on Workshop. Mayor Sheek stated that during the workshop new City employee, Welcome Center Assistant Manager Sandra Crow was introduced. Also, Kelly Barbello, Director of the Colorado Welcome Center spoke about Welcome Centers across the state and the amount of visitors that come to Cortez. Jill Seyfarth and Linda Towle spoke about CLG Grants and the possible historic designation for City Hall. Lori Johnson and Paul Holler gave an update on the County/City Mitigation Plan and Jeff Weinmeister spoke about the happenings of the Chamber of Commerce and the new goals that have been set for the agency. Mr. Weinmeister stated that the Chamber of Commerce is working with the Bike Tour Colorado group as they will be going through Cortez in June. He stated that the Chamber will be helping organize some events while they are here. b. Golf Advisory Board. Councilmember Archibeque stated that the Golf Advisory Board met on April 27, 2016, and discussion was held on upcoming golf tournaments including the Hospice Golf Tournament and the Ice Breaker. He stated that revenue is down due to the golf season not being able to start as soon as last year due to the bad weather. He stated that the grass is greening up and the water has been turned on. He spoke about the projects that the crew is working on and stated that discussion was held on access to the golf course from the residential neighborhoods. c. Montezuma Community Economic Development Association (MCEDA). Councilmember Miller stated that MCEDA has decided to help with support for the County Broadband Project and Economic Development Specialist Chelsea Jones will be spending some of her time helping with marketing of the project. He stated that discussion is being held on putting a question on the CITY COUNCIL REGULAR MEETING MAY 10, 2016 PAGE 8 November ballot asking the County residents for a sales tax to help fund the project. d. Cortez Historic Preservation Board. Councilmember Carlson stated that she was not able to attend the Cortez Historic Preservation Board meeting; however, the board would like the public to know about the 7th Annual Historic Preservation Day, which will be held on Saturday, May 21, 2016, at the Sunflower Theater from 10:00 a.m. to noon. The regular meeting was adjourned at 9:15 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ________________________________ Linda L. Smith, City Clerk