City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 8, 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, Bob Archibeque, Mayor Pro-tem Ty Keel, Jill Carlson, Orly Lucero, Shawna McLaughlin, and Tim Miller. Staff members present were Chief of Police Roy Lane, Director of Parks and Recreation Dean Palmquist, Director of Public Works Phil Johnson, Finance Director Kathi Moss, City Clerk Linda Smith, City Attorney Mike Green, and City Manager Shane Hale. There were 18 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 25, 2016. b. Approval of the payment of the Expenditure Vouchers of November 8, 2016. c. Approval of a renewal Tavern Liquor License for the Cortez Veterans Inc., located at 320 North Harrison Street, Cortez. d. Approval of a renewal Brew Pub Liquor License for Four Corners Brewing LLC, DBA Main Street Brewery and Restaurant, located at 21 East Main Street, Cortez. Mayor Pro-tem Keel moved that Council approve the Consent Agenda, with the additional expenditure list totaling $480,231.52. 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 3. PRESENTATION a. Holscher, Mayberry & Company will Present the 2015 Audit. Tim Mayberry, of Holscher, Mayberry & Company, presented the 2015 City of Cortez audit to City Council and spoke about the highlights of the audit. He stated that the General Fund is in good standing with reserves after the purchase of the new City Hall building and the fund balances continue to be in good shape. He stated that the Self-Insured Health Fund will need to be monitored to be sure there are adequate resources to cover the claims. He stated that the Community Fiber Network Fund has positive equity but the equity is the system itself and the fund carry-over has a deficient balance. He stated that the new accounting software recently purchased will be so much better than in the past as it will allow other staff members to complete the prep work and allow the Finance Director to complete the review of the accounting reports prior to the next audit. In answer to a question from Mayor Pro-tem Keel, Mr. Mayberry stated that the current revenue in in good standing with a three month General Fund reserve. He stated that the City is healthy and the revenue will build back over time. He stated that the City has been able to build up their resources and not take out a lot of debt CITY COUNCIL REGULAR MEETING NOVEMBER 8, 2016 PAGE 2 to complete a capital project. City Manager Hale reviewed the ending fund balance for 2015 and what is projected for 2016 and noted that the City shows an increase in the fund balance from 2015. He stated that the City budgets conservatively for revenues which comes in higher than is budgeted, which results in an increase to the fund balance. b. High School History Class. Mayor Pro-tem Keel stated that several of his 10th Grade History Class students were in attendance to view the Council meeting process. The students introduced themselves and received a City pin. 4. CITIZEN PARTICIPATION – None. 5. PUBLIC HEARINGS – None. 6. UNFINISHED BUSINESS - None 7. NEW BUSINESS a. Appointment to the Parks, Recreation, and Forestry Advisory Board. Director of Parks and Recreation Palmquist stated that Lonn Andrews recently resigned from the Parks, Recreation, and Forestry Advisory Board and Rachel Medina has submitted a letter of interest. He stated that the Parks, Recreation, and Forestry Advisory Board interviewed Ms. Medina on October, 21, 2016, and have recommended her appointment to the board. He stated that the nine member Parks, Recreation, and Forestry Advisory Board consists of two youth positions and currently there is one youth position open. It was noted that it is never too early to get involved in civic activities and City Manager Hale asked if any of the students in the audience are interested in the open seat to speak to the Director of Parks and Recreation after the meeting. Director of Parks and Recreation Palmquist stated that the Parks, Recreation, and Forestry Advisory Board meets on the third Friday of each month from 7:00 to 8:00 a.m. Councilmember Archibeque moved that Council appoint Rachel Medina to serve on the Parks, Recreation, and Forestry Advisory Board. 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. Cancel December 27, 2016, Council Meeting. City Clerk Smith stated that traditionally the City has canceled the last meeting in December due to the closeness to the holidays. Mayor Pro-tem Keel moved that the December 27, 2016, Council meeting be canceled. 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 c. Fee Waiver Request for Home Occupation Permit. City Manager Hale stated that Barbara Howe CITY COUNCIL REGULAR MEETING NOVEMBER 8, 2016 PAGE 3 has withdrawn her request for the waiver of a Home Occupation Permit. d. City Hall Solar. City Manager Hale stated that the City has been exploring the benefits of placing a solar array on the new City Hall building. He stated that the City would like to have the solar panels installed alongside the roof that is being replaced on the City Hall building. He stated that two solar companies in Durango were identified as possible avenues to provide the size of system that would both provide a decent return on investment (ROI) as well as not be an initial budget buster. He stated that the two proposals considered were from Solar Works and Shaw Solar. He reviewed the two proposals and stated that staff recommends that Shaw Solar (DBA Solar Garden Partners 2, LLC) be awarded the proposal as they have offered a performance lease option which would allow the City to make nominal annual payments of $4,100 with a buyout of $15,682 on year six. He stated that the agreement would allow Shaw Solar to receive all the tax benefits, any renewable energy credits, or any other rebates from the State of Colorado, Federal Government, or local utility as the City does not qualify for those benefits. He stated that it is a win/win for both the City of Cortez and Shaw Solar. He stated that the solar panels would also offer three LEED points towards the new City Hall project. He spoke about the savings in electricity for years into the future and Mayor Pro-tem Keel stated that he is always in support of the City doing anything that will save the taxpayers money in regards to utility payments. Discussion was held on the warrantee of the panels and City Manager Hale stated that the warrantees are from the manufacturer for 25 years. It was noted that the sixth year for final buyout in the agreement should be 2022, not 2023. Councilmember Carlson moved that Council authorize the Mayor to sign the Solar Lease Agreement between the City of Cortez and Solar Garden Partners 2, LLC, with the change to the balloon payment being made in 2022. Councilmember Archibeque seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes No Yes 8. DRAFT ORDINANCES/RESOLUTIONS – None. 9. OTHER ITEMS OF BUSINESS – None. 10. ADDITIONAL CITIZEN PARTICIPATION – None. 11. CITY ATTORNEY’S REPORT – None. 12. CITY MANAGER’S REPORT – None. 13. CITY COUNCIL COMMITTEE REPORTS a. Mayor’s Report on Workshop. Mayor Sheek stated that during the workshop Council received the 2017 Budget with the following departments: Police Department, Parks and Recreation, Mesa Verde Country, City Council, and City Manager. Discussion was also held on the City Employee Self-Insured Health Plan. CITY COUNCIL REGULAR MEETING NOVEMBER 8, 2016 PAGE 4 b. Historic Preservation Board. Councilmember Carlson stated that discussion was held on the Parade of Lights which will be held on December 3, 2016, and the theme is A Journey through Historic Cortez. She stated that the inventory is continuing on the south side of Main Street; however, it was discovered that two of the businesses being inventoried have the same address. She stated that the Medicine Man building and the Nero’s/Sands Hotel building will be added to the inventory to meet the 24 businesses required for the grant. She stated that Linda Towle has announced that she would like to be replaced in the next year as chairperson of the Historic Preservation Board. c. Golf Advisory Board. Mayor Pro-tem Keel stated that discussion at the Golf Advisory Board included projects coming up for the golf course, new fees for annual pass holders and the new black tee box at Hole 9. d. Montezuma Community Economic Development Association (MCEDA). Councilmember Miller stated that the MCEDA Board meeting was canceled. e. Ute Mountain Ute Tribe Ceremony. Councilmember Lucero stated that he attended the swearing in ceremony of the new Ute Mountain Ute Tribal Council Members on November 4, 2016. He stated that he spoke to several members of the Tribal Council about the continuation of working together and Mayor Sheek stated that she would like City Council to host a dinner for the new Tribal Council at a workshop after the first of the year. 14. EXECUTIVE SESSION Mayor Pro-tem Keel moved that Council adjourn at 8:10 p.m. to Executive Session for a conference with the City Attorney for the purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-402(4)(b). Councilmember McLaughlin seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Miller Sheek Yes Yes Yes Yes Yes Yes Yes Council returned to the regular meeting at 8:45 p.m. No decisions were made during the Executive Session and the regular meeting was adjourned at 8:48 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ________________________________ Linda L. Smith, City Clerk