City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, FEBRUARY 13, 2018 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, Jill Carlson, Orly Lucero, and Shawna McLaughlin. Councilmember Bob Archibeque was absent. Staff members present were Director of Public Works Phil Johnson, Director of Planning and Building Sam Proffer, Director of Parks and Recreation Dean Palmquist, Fire/Building Inspector Sean Canada, City Planner Tracie Hughes, Director of General Services Rick Smith, Police Chief Roy Lane, Patrol Officer Boyd Neagle, City Clerk Linda Smith, City Manager Shane Hale, and City Attorney Mike Green. There were 15 people 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 January 23, 2018. b. Approval of the payment of the Expenditure Vouchers of February 13, 2018. c. Approval of a renewal Hotel and Restaurant Liquor License for Hunan Kitchen Inc., DBA Hunan Chinese Restaurant, located at 2561 East Main Street, Cortez. d. Council will consider approving a Special Event Permit for the Cortez Area Chamber of Commerce to sponsor a ‘Business After Hours’ on February 15, 2018, at Southwest Printing/Brand Central, located at 113 East Main Street, Cortez. e. Council will consider approving a Special Event Permit for The Pinon Project to sponsor a Celtic Fair on June 23, 2018, at Parque de Vida, 400 West Mildred Avenue, Cortez. Councilmember Lucero moved that Council approve the Consent Agenda with the additional expenditure list totaling $32,323.28. Mayor Pro-tem Keel seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes 3. PRESENTATIONS – None. 4. CITIZEN PARTICIPATION – None. 5. PUBLIC HEARINGS a. Ordinance No. 1237, Series 2018. City Attorney Green stated that Ordinance No. 1237, Series 2018, approves the procedures for Declaration of Emergency Ordinance. He stated that the ordinance sets lines of succession for decision making and the authority for each person in the line CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 2 of succession. He stated that the ordinance also authorizes alternatives to normal practice and procedures such as overtime, Council meeting places, notices, etc. He stated that the ordinance is one of the pieces necessary for interaction and recovery of funds from State and Federal reimbursement sources. City Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Mayor Pro-tem Keel moved that Council approve on final reading Ordinance No. 1237, Series 2018, an ordinance approving the procedure(s) for Declaration of Emergency Ordinance. Councilmember Carlson seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes b. Ordinance No. 1238, Series 2018. City Attorney Green stated that Ordinance No. 1238, Series 2018, prohibits unauthorized entry onto the Cortez Municipal Golf Course. He stated that there are three controlled access points (on the east, north, and the clubhouse) that allow patrons to enter the course and any other entrance would not be allowed. Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Councilmember McLaughlin moved that Council approve on final reading Ordinance No. 1238, Series 2018, an ordinance prohibiting unauthorized entry onto the Cortez Municipal Golf Course. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes c. Public Hearing on New Retail Marijuana Store License for Chronic Therapy LLC - Cortez. Mayor Sheek noted that the public hearing is a Quasi-Judicial Item and asked if anyone had any discussion on the item prior to the Council meeting; however, no one spoke. City Attorney Green presented each of the Councilmembers with a book outlining specific evidence for the hearing for a new Retail Marijuana Store license to be reviewed for Chronic Therapy LLC – Cortez, to be located at 1020 South Broadway. He spoke about the process for the public hearing. Sandy Beddor, owner/CFO, was present along with her son/co-owner Jason Saunders. Other owners who were unable to attend were her other son Matthew Saunders (coaching the US Ski Team at the Olympics) and family friend Robert Domagata. Ms. Beddor spoke about the journey of their business which began with the growing and selling of medical marijuana. She stated that they obtained their first license in Wheat Ridge in 2014 and obtained two more licenses in Aurora in 2016. She spoke about the ups and downs with the new industry and noted they have made mistakes along the way. She stated that they continue to receive ongoing training and try to stay up on the ever changing rules with the marijuana industry. She stated the family run company currently employs 40+ employees with a livable wage. She stated that many of the employees are now able to buy their own car and some have been able to buy a home. She stated they are very excited to join the Cortez community and their goal is to be active in many community events. She gave background on each of the owners and noted their participation in many different programs and organizations. She stated that they would use local vendors and contractors and plan to hire approximately 12 local people for the Cortez facility. CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 3 Craig Small, Hoban Law Group, stated that his clients have been positive additions to the communities in which they currently have licenses. He explained the issues which the applicants have had over the years. He stated that in Denver the applicants were employees of a marijuana cultivation facility and the owner was going through license transfers and the license which the applicants were working under had expired. He stated that the applicants were fined $20,000 and worked with the Marijuana Enforcement Division (MED) to clarify the error and were issued a marijuana cultivation license following the investigation. He stated that during the completion of the investigation with MED, the applicants had applied to Commerce City for a new license in their community and had made two errors on the application. He spoke about the errors on the application which were amended with the State; however, the applicants were charged with various misdemeanors, two of the applicants in Arapahoe County and two in Adams County. He explained the process that followed the various charges which were processed in 2016 and stated that Ms. Beddor was sentenced to 18 months probation, which she complied with and her sentence has been deferred. He stated that Mr. Domagata received a sentence of 18 months unsupervised probation and his sentence will end in November 2018. He stated that Matthew Saunders received unsupervised probation which ends July 2018 and Jason Saunders was sentenced to supervised probation which ends November 2018. Mr. Small spoke about the inspections that they have passed with no issues in the two communities in which the applicants currently have marijuana licenses. He referenced three letters that were received, one from Robert Peterson, Marijuana Enforcement Division for Aurora, one from Wheat Ridge Mayor Pro-tem George Pond, and Former Director for the Wheat Ridge Licensing Authority Kathy Franklin noting support for the applicants. He also stated that a letter is included in the packet from the applicant’s bank, Safe Harbor. Mr. Small further reviewed the exhibits which were included in the packet for Council’s review and stated that he feels his clients have done their best to be transparent. In answer to a question from Mayor Pro-tem Keel, Ms. Beddor stated that they were looking for another location to open a retail store and Cortez had openings. She stated that she visited Cortez and found it to be a good fit for what they were looking for. In answer to a question from Councilmember Carlson, Mr. Small stated that all the owners were originally charged with felonies and pled guilty to misdemeanors. Ms. Beddor stated that the charges were different for each person, though the reason for the charges were the same. Mr. Small stated that the charges were all centered around the same issue with two of the defendants being charged in Arapahoe County and two being charged in Adams County. Councilmember Carlson stated that the City’s regulations reference that licenses shall be issued based on good moral character and asked what would be done should one of the applicants break their probation and the license is issued for the Cortez store. Mr. Saunders spoke about the probation that he is completing and stated that there have been no issues since the sentencing and he noted that one of the sentences will be completed in July and the others in November of this year. Ms. Beddor stated that the renewal licenses for Wheat Ridge and Aurora have been issued by the State with the cities knowing about the misdemeanor convictions. She stated that they have done their best to be a good business. Julie and Wayne Nadolske, owners of Lotsa Pasta/Thatza Pizza, stated that they have owned the property at 1020 South Broadway for over 15 years and have recently put the property up for sale. Ms. Nadolske stated that they are reviewing the possibility of moving Lotsa Pasta/Thatza Pizza to 105 East Main Street (previous Antonio’s) should their current property be sold for a new marijuana store. She stated that she met Ms. Beddor and felt she was a trustworthy person. She stated that the CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 4 previous issues of the applicants were disclosed up front and Ms. Beddor has stated that all the issues were being taken care of. She stated that the building would be sold to Chronic Therapy should Council approve their application. Patrol Officer Boyd Neagle was sworn in. It was noted that Officer Neagle completed the investigation and City Attorney Green asked Officer Neagle about the various exhibits included in the book distributed to Council at the beginning of the hearing. Officer Neagle spoke about his investigation, which included background checks on the four applicants. Officer Neagle noted that a license has been issued by the Colorado Department of Revenue for Chronic Therapy – Cortez LLC and he reviewed other exhibits including the premises drawing and a letter from the Planning and Building Department noting the premises meets the zoning and the distance requirements for a marijuana store. Officer Neagle agreed that the information on applicants presented by Mr. Small is the same information in which he had found during his investigation. City Attorney Green stated that staff is not making a recommendation and that the applicants have been found to be in compliance with the City’s regulations. In answer to a question from Mayor Sheek, Officer Neagle stated that the State would not have issued a license if they had found the applicants to be of unsavory character. Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Councilmember Lucero moved that Council approve a new Retail Marijuana Store License for Chronic Therapy – Cortez LLC, to be located at 1020 South Broadway, Cortez. Mayor Pro-tem Keel seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Bid Results for 2018 Supplemental Snow Removal. Director of Public Works Johnson stated that in the past there have been times when the snowfall accumulation has been more than the Public Works and Parks crews can keep up with. He stated that the City would like to have 24-hour availability of equipment and an operator should an emergency call-out be needed due to the weather conditions. He stated that Public Works sent out an Invitation to Bid to provide the City with supplemental snow removal services for the streets and parking areas during large winter snow storms. He stated that only one bid was received from Daniel’s Concrete and Excavation. He stated that staff recommends the bid be awarded to Daniel’s Concrete and Excavation at the hourly rates as provided in the bid. Mayor Pro-tem Keel moved that Council award the 2018 Supplemental Snow Removal Bid to Daniel’s Concrete and Excavation. Councilmember Carlson seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 5 b. Appointment to Planning and Zoning Commission. City Planner Hughes stated that Ken Brengle recently resigned from the Planning and Zoning Commission and the City was fortunate to have an interested citizen submit a letter of interest to serve on the Commission soon after the position was advertised. She stated that Robert Rime was interviewed February 6, 2018, by the Planning and Zoning Commission and has been recommended to Council for appointment. Councilmember Carlson moved that Council appoint Robert Rime to the Planning and Zoning Commission. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes c. Bid for the Police Department HVAC Replacement Project. Director of General Services Smith stated that the Cortez Police Department was constructed in 1996 and the existing HVAC system is at the limit of its useful life. He stated that the department has experienced numerous heating and cooling issues in the past few years and is in need of a replacement. He stated that ME&E completed an assessment of the building and engineering plans for the proposed project. He stated that four bids were received for the project and Garrh’s Inc. was the low bidder at $265,111.00. He stated that ME&E has reviewed the bids and staff is recommending the bid be awarded to Garrh’s Inc. Councilmember McLaughlin moved that Council award the bid for the Police Department HVAC Replacement Project to the low bidder - Garrh’s Inc. at the bid amount of $265,111.00. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes d. Resolution No. 6, Series 2018. City Manager Hale stated that Resolution No. 6, Series 2018, approves a lease of real property between the City of Cortez and Crow Canyon Archaeological Center. He stated that the City owns the building that serves as the Colorado Welcome Center and for the past few years has leased retail space to the Mesa Verde Museum Association. He stated that last year Mesa Verde Museum Association determined that the venture wasn’t profitable enough to continue and the City solicited interest for the space receiving a letter from Crow Canyon. He stated that staff has meet with two of the representatives from Crow Canyon and they expressed their reasons for wanting to occupy the space at the Welcome Center. He stated the City would like to bring the sales of Mesa Verde tickets back to the Welcome Center sometime in the future and discussion will be held later in the year on those options. He stated that the lease with Crow Canyon is the same as what was in place for the Mesa Verde Museum Association and staff recommends approval of the lease agreement with Crow Canyon Archaeological Center for a two- year term. Mayor Sheek complimented Crow Canyon on the proposal they are offering which would include various programs and education for the tourists. Mayor Pro-tem Keel moved that Council approve Resolution No. 6, Series 2018, approving a lease of real property between the City of Cortez and Crow Canyon Archaeological Center. Councilmember Lucero seconded the motion, and the vote was as follows: CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 6 Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes Yes e. 2018 Third Party Beneficiary Funding Agreement for Montezuma Inspire Coalition. Director of Parks and Recreation Palmquist stated that Montezuma Inspire Coalition, which the City is a member of, was awarded a Great Outdoors Colorado grant for $1,843,109 on December 19, 2017. He stated that the purpose of the grant is to inspire local youth to get outdoors more. He stated that Montezuma Land Conservancy is the fiscal agent for the Montezuma Inspire Coalition funding, and is requesting the City enter into an agreement in order to receive funds and participate in the grant opportunity. He stated that the City will receive $18,680 over the next three years which will be used towards outdoor field trips for both youth and families to engage in outdoor activities, including river rafting through a commercial outfitter, hiking, fishing, backpacking, and overnight camping. He stated that the City anticipates the total cost for the trips to be approximately $34,400. He stated that staff recommends the City enter into the Great Outdoors Colorado Funding Agreement with the Montezuma Land Conservancy. Mayor Pro-tem Keel moved that Council enter into the Great Outdoors Colorado Funding Agreement between the Montezuma Land Conservancy and the City of Cortez. Councilmember Lucero seconded the motion, and the vote was as follows: Archibeque Carlson Keel Lucero McLaughlin Sheek absent Yes Yes Yes Yes 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 a. City Hall Anniversary, Employee Appreciation Party, Feasibility Study, and New Intern Begins. City Manager Hale stated that Monday, February 19, 2018, marks the first anniversary of moving into the new City Hall. He thanked the Employee Appreciation Party Committee (Cheryl Lindquist, Bret Jansen, Jon Brooks, Vickie Haddix, Rosa Dimon, and Linda Smith) for their work on the party which was held on Saturday, February 10, 2018. He stated that there was a great turn- out and the venues of Loungin’ Lizard and The Sunflower Theater were really nice. He thanked Councilmember Carlson for signing up the comedians for the party. He noted that Finley Engineering is in Cortez this week working on the Fiber Feasibility Study. He also noted that City Intern Peyton Heitzman will begin with the City on February 26, 2018. 13. CITY COUNCIL COMMITTEE REPORTS a. Mayor’s Report on Workshop. Mayor Pro-tem Keel stated that during the workshop new CITY COUNCIL REGULAR MEETING FEBRUARY 13, 2018 PAGE 7 employees Code Enforcement Officer/Building Inspector Keith Cramer, Golf Course Superintendent Tom Kramlich, and Sr. Parks Worker/Irrigation Don Cantrall were introduced. He stated that discussion was held on the Library re-organization of positions and the 2017 Long Range Advance goals were reviewed. Also, discussion was held on lowering the price on the Industrial Park office building and Public Works Director Johnson and Water Superintendent Rich Landreth reviewed the current status of the City’s water supply. An Executive Session was held for a conference with the City Attorney for the purpose of receiving legal advice on specific legal questions per C.R.S. Section 24-6-402(4)(b). b. Miscellaneous Meetings. Mayor Sheek asked if anyone from Council could attend the MCEDA (Montezuma County Economic Development Association) meetings which Councilmember Tim Miller had served on. City Manager Hale stated that he would attend if possible. She also mentioned that the Broadband Forum would be held at City Hall on Tuesday, February 20, 2018, from 6:00 p.m. to 8:00 p.m. She invited anyone interested to attend. She noted that the Women League of Voters will be sponsoring a ‘Meet the Candidate Night’ at City Hall on Thursday, March 15, 2018. She stated that both the Broadband Forum and Candidate Night will be live streamed if anyone would like to watch from their home. c. Eagle Badge. Mayor Pro-tem Keel introduced Kale Hall who was present in the meeting working on his communication badge for Eagle Scouts. d. Thanks to Police Department. Mayor Sheek extended a thank you to the Police Department for handling a recent incident in the City which could have had a different outcome. She stated that the leadership from Chief Lane and the good police officers led to everyone going home safely. The regular meeting was adjourned at 9:10 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ________________________________ Linda L. Smith, City Clerk