City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 27, 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 Orly Lucero, Ty Keel, Mike Lavey, and Gary Noyes. Councilmembers Sue Betts and Jill Carlson were absent. Staff members present were Chief of Police Roy Lane, Director of Public Works Phil Johnson, Associate Planner Neva Connolly, Director of Planning and Building Sam Proffer, Airport Manager Russ Machen, Director of Finance Kathi Moss, Management Intern Peyton Heitzman, City Attorney Mike Green, and City Clerk Linda Smith, and City Manager John Dougherty. There were five 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 November 13, 2018, and Special Worksession of November 14, 2018. b. Approval of the payment of the Expenditure Vouchers of November 27, 2018. c. Approval of a Renewal 3.2% Beer Off Premises Liquor License for WalMart Inc., DBA WalMart Store #0966, located at 1835 East Main Street, Cortez. d. Approval of a Renewal Retail Marijuana Store/Retail Marijuana Cultivation Facility for David Krzysztofiak, LLC, DBA The Herbal Alternative, located at 1531 Lebanon Road, Cortez. e. Approval of a Special Event Permit for the Cortez Area Chamber of Commerce to host “Business After Hours” on Thursday, December 13, 2018, at Dolores State Bank, located at 744 East Main Street, Cortez. Councilmember Keel moved that Council approve the Consent Agenda with the additional expenditure list totaling $44,323.41. Mayor Pro-tem Lucero seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes 3. PRESENTATIONS – None. 4. CITIZEN PARTICIPATION – None. 5. PUBLIC HEARINGS a. Ordinance No. 1258, Series 2018. Associate Planner Connolly stated that Ordinance No. 1258, Series 2018, is being presented on second reading and approves four separate structures located CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 2 within the “Original Townsite of Cortez” and “Coffins Addition”, as historic properties. She stated that the properties are addressed as 21 East Main Street (Main Street Brewery), 111-113 East Main Street (Brand Central), 237 West Main Street (Slavens True Value), and 202 West North Street (known as the Calkins and Merlo House). She spoke about the five grants that the City has received to date surveying historic properties in the community and she noted that since the first survey was conducted in 2011, 45 eligible property owners have applied to City Council for historic designation. She reviewed the criteria from Section 6.19 of the Land Use Code regarding designation of historic structures and stated that staff recommends approval of the historic designation for the four structures. In answer to a question from Mayor Sheek, Associate Planner Connolly stated that the historic designation fee has been waived by the City for some time. Mayor Sheek opened the public hearing. One person in the audience raised their hand in support of the historic designations and the Mayor closed the hearing. Mayor Pro-tem Lucero moved that Council approve Ordinance No. 1258, Series 2018, approving four separate structures located within the “Original Townsite of Cortez” and “Coffins Addition” to be included in the City of Cortez Register of Historic Structures, Sites, and Districts, specifically the structures at 21 East Main Street, 111-113 East Main Street, 237 West Main Street, and 202 West North Street. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes b. Resolution No. 27, Series 2018. Associate Planner Connolly stated that Resolution No. 27, Series 2018, approves an application for a Conditional Use Permit to allow the construction of an open-sided carport within ten-feet of the front yard setback at 622 North Ash Street. She stated that Edward and Betty Goodall, property owners of 622 North Ash Street, submitted the application for the 28’x 20’ carport that would have three open sides. She stated that the carport would extend within five-feet of the property line, requiring a Conditional Use Permit as per Section 3.06(d)(4). She stated that the carport would be attached to the home and would have a pro-panel roof. She stated that Associate City Engineer Nic Stoker commented that as long as there are no carport sides on the structure, it would not impede site visibility for either Ash or Empire Streets. Associate Planner Connolly stated that the project was properly noticed in the newspaper for the Planning and Zoning and City Council meetings and notices were sent to the property owners within 300 feet of the property. She stated that Planning and Zoning Commission reviewed the project on November 6, 2018, and recommended approval. In answer to a question from Councilmember Keel, Associate Planner Connolly stated that if the Conditional Use Permit is approved, the applicants could construct the carport after completing the building permit process. Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Mayor Pro-tem Lucero moved that Council approve Resolution No. 27, Series 2018, approving an application for a Conditional Use Permit to allow the construction of an open-sided carport within ten-feet of the front yard setback at 622 North Ash Street, as submitted by Edward and Betty Goodall. Councilmember Noyes seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 3 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Jacobs Engineering Contract Amendment. Airport Manager Machen stated that Jacobs Engineering is presently contracting with the City Airport to provide engineering consulting services for a five-year period. He stated that as each Airport project is scheduled and funded by the Federal Aviation Administration (FAA), the contract must be amended to enter a more specific agreement for fees for that particular project. He stated that the FAA has provided funding to complete the Taxiway Shoulder Project that began in 2013, and therefore an amended contract is required with Jacobs Engineering to complete the engineering services for the project. He stated that the FAA mandates that an Independent Fee Estimate (IFE) is obtained to have a comparative cost estimate in order to have a foundation in which to conduct negotiations with Jacobs Engineering for fees for the project. He stated that J.D. Heithoff (from Idaho) provided the IFE and negotiations were completed with Jacobs Engineering and approved by the FAA on November 19, 2018. He stated that the contract calls for an engineering fee for all services for AIP-32, Construction of Taxiway Shoulders, at an amount not to exceed $388,158.00. He stated that the City is responsible for 5% of the cost ($19,258.00), the State is paying a similar 5%, and the FAA will pay the remaining 90%. Councilmember Lavey moved that Council approve an amendment to the Airport Engineering Services Contract with Jacobs Engineering, in an amount not to exceed $388,158.00 for Phase 2 of the Taxiway Shoulder Project. Mayor Pro-tem Lucero seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes b. Airport Car Rental Agreement Extension with Hertz Corporation. Airport Manager Machen stated that the Airport On-Site Car Rental contract expires January 31, 2019, with a new contract period of February 1, 2019 to January 31, 2022. He stated that Hertz is currently the lone provider at the Airport as Enterprise has expressed their desire to maintain its current location off-site (offering curbside service) and no response was received from other car rental companies. He stated that the current contract calls for Hertz to pay a minimum of $1,550 per month or 10% of gross receipts, which ever is greater. He noted that 10% is the typical amount charged by most airports for car rental services. He stated that Hertz has paid an average of $2,555 per month to date in the current contract, only paying the minimum amount one month. He stated that, with increased passenger count for the airline, car rental revenue has ticked upward and Hertz has a good record of operation and payment of commissions over their multiple contract periods with the Airport. He stated that staff recommends that the Car Rental Provider Contract with Hertz be extended for another three-year period. In answer to a question from Mayor Sheek, Airport Manager Machen stated that there is a cab company in Cortez, but he does not know if there are Uber drivers in the area. Councilmember Keel moved that Council extend the Car Rental Provider Contract at the Cortez Municipal Airport with Hertz Corporation at the Cortez Municipal Airport for a three-year period. CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 4 Councilmember Noyes seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes c. Bid for Winter 2018-2019 Supplemental Snow Removal. Director of Public Works Johnson stated that 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 is looking for 24-hour availability of equipment and an operator on an hourly basis, with emergency call-out to be determined by the Director of Public Works based on weather conditions. He stated that two bids were received, one from a company in Ashland, Virginia, and local company, Daniel’s Concrete. He stated that the bid is required to be awarded to a Montezuma County equipment operator and therefore staff is recommending that the bid be awarded to Daniel’s Concrete with the equipment rates as quoted. In answer to a question from Councilmember Noyes, Director of Public Works Johnson stated that there is money set aside for snow removal services and should the service not be needed the money will not be used. Councilmember Lavey moved that Council award the bid for the Winter 2018-2019 Supplemental Snow Removal to Daniel’s Concrete. Councilmember Keel seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes d. Resolution No. 28, Series 2018. Director of Planning and Building Proffer stated that Resolution No. 28, Series 2018, amends fee and charges for Planning and Building Department services and materials provided by the City of Cortez. He stated that every year the Planning and Building Department evaluates the fee structure to set reasonable fees and make changes where necessary. He stated that over the years, the fee process has been streamlined, and in a few instances raised when appropriate. He reviewed the three fee changes that were being recommended: Cash-in lieu fee, the use of the ICC Building Valuation Data Table (August 2018), and a flat fee for constructing residential decks. Discussion was held on when a permit is needed for the construction of a deck. It was noted that a deck under 30” in height and that does not have a roof is not required to have a permit. He stated that there may be additional fee changes in 2019 with the completion of the revised Land Use Code. Councilmember Keel moved that Council approve Resolution No. 28, Series 2018, amending the fee and charges for the Planning and Building Department services and materials provided by the City of Cortez. Mayor Pro-tem Lucero seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes e. Ordinance No. 1259, Series 2018. Director of Finance Moss stated that Ordinance No. 1259, Series 2018, appropriates supplemental funds, rectifies budgeted excess, and makes budget revisions for the 2018 Fiscal Budget. She stated that Article VII, Section 22 of the City Charter CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 5 allows for revised appropriations at the expiration of eight months of the audit year. She stated that final budget hearings were held in October and November with individual departments and Ordinance No. 1259, Series 2018, recommends that the 2018 Budget be revised to a total amount for all funds to $31,423,502, which is $852,679 lower than was originally proposed. She stated that the revisions were included with the proposed 2019 Budget. Councilmember Noyes moved that Council approve on first reading, Ordinance No. 1259, Series 2018, an ordinance appropriating supplemental funds, rectifying budgeted excesses, and making budget revisions for the 2018 Fiscal Budget, and set for public hearing on December 11, 2018. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes f. Ordinance No. 1260, Series 2018. Director of Finance Moss stated that Ordinance No. 1260, Series 2018, approves the annual appropriations for the fiscal year beginning January 1, 2019, and ending December 31, 2019, and sets the mill levy for said fiscal year. She stated that meetings were held with the City Manager and Finance Director prior to the proposed budget being reviewed with City Council and the final 2019 budget is being presented for first reading. She stated that the budget is balanced and totals $32,870,654 across all funds. She reviewed the highlights of the budget including capital projects and explained how the mill levy is calculated. She stated that the most restrictive regulation (City’s Charter) applies for the mill levy for 2019, which will set the mill levy at 1.30 mills. Mayor Sheek complimented Director of Finance Moss and staff for the great job that was done on the budget and noted that the City continues to be both fiscally responsible and provides great amenities that the community enjoys. Director of Finance Moss specifically thanked Accounting Technician II/Payroll Clerk Lynette Reece for helping with the budget process noting she will be an asset for the preparation of future budgets. Councilmember Keel moved that Council approve on first reading, Ordinance No. 1260, Series 2018, approving the annual appropriations for the fiscal year beginning January 1, 2019, and ending December 31, 2019, setting the mill levy for said fiscal year, and setting the ordinance for a public hearing on December 11, 2018. Councilmember Noyes seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes g. Resolution No. 29, Series 2018. Chief of Police Lane stated that Resolution No. 29, Series 2018, approves the request for the Police Department to apply for a Department of Local Affairs (DOLA ) grant to help control the black/grey marijuana market. He stated that funding is available to help the Police Department with funding for work that is completed in the marijuana market. In answer to a question from Councilmember Keel, Chief of Police Lane stated that he thinks the black/grey marijuana market is the name that was just put forth by the State. Councilmember Noyes asked if it was the State’s words or the Chief’s words that the black/grey marijuana market has become an issue with the legalization of recreation marijuana and Chief of Police Lane stated that it was his words and his personal experience. In answer to a question from Mayor Sheek, Chief CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 6 of Police Lane stated that the State will reimburse the amount that is spent on the marijuana investigations and he estimated that it would be approximately $30,000 (mostly in salaries) this year. Mayor Pro-tem Lucero moved that Council approve Resolution No. 29, Series 2018, approving the request for the City to apply for a Department of Local Affairs (DOLA) grant to help control the black/grey marijuana market. Councilmember Noyes seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes h. Resolution No. 30, Series 2018. Director of Public Works Johnson stated that Resolution No. 30, Series 2018, approves refuse collection rates for the City of Cortez. He stated that Public Works periodically reviews the refuse collection rates to be sure that the fund stays fiscally able to maintain services. He stated that rate increases are being proposed at 3.5% which will equate to seventy-five cents ($0.75) a month with proportionate increases for dumpster fees. He stated that the minimum rate for a single poly cart will be raised from $21.00 to $21.75 and a 2-yard dumpster will be raised from $47.25 to $49.00 each for once-a-week pick-up. He stated that small incremental increases have been made annually and the total rate increase over the past four years has been $2.75. He stated that the County landfill has increased their fees this year 29%; however, the City does not have to increase their fees that much due to the incremental annual increases that have been made over the years. Councilmember Keel stated that he is thankful that the City is mindful that the increase is passed on to the taxpayers and is kept as minimal as possible. Director of Public Works Johnson complimented the Refuse Department crew noting that they are exceptional employees and stated that Cortez is a model for how recycling can be done. Councilmember Keel moved that Council approve Resolution No. 30, Series 2018, approving refuse collection rates for the City of Cortez, Colorado, and superseding Resolution No. 33, Series 2017. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes i. Resolution No. WE-2018-1, Series 2018. Director of Public Works Johnson stated that Resolution No. WE-2018-1, Series 2018, establishes the water rate charges and the water development charges for the City of Cortez. He stated that rate adjustments are needed to keep up with the rising costs of infrastructure repairs, treatment chemicals, and capital expenditures. He stated that the City has identified many water lines that need replacing in the future and periodic improvements that need to be made to the water plant. He stated that the water rates will be increased approximately five percent (5%) which equates to a minimum rate for a residential ¾- inch water meter, which includes the first 1,000 gallons, from $21.80 to $22.90 per month. Also, the water rate usage charge per 1,000 gallons of water used, over the first 1,000 gallons, will increase from $2.92 to $3.07 and the commercial water dock fee will increase from $16.50 to $17.50 for 1,000 gallons. Director of Public Works Johnson stated that tap fees are proposed to increase from $5,301 to $5,566 for a ¾” water tap with proportionate increases for other taps. He CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 7 spoke about the average use of water in the community over the year and the need to educate the public on efficient water use. He stated that the City needs to continue building the capital reserves for the Water Enterprise in order to meet the future needs of the water system. Councilmember Noyes moved that Council approve WE-2018-1, Series 2018, establishing the water rate charges and water development charges for the City of Cortez Water Enterprise, to be effective January 1, 2019. Councilmember Keel seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes j. Resolution No. 31, Series 2018. Management Intern Heitzman stated that Resolution No. 31, Series 2018, permits the City to apply for a Department of Local Affairs (DOLA) EIAF grant for the development of the new neighborhood park. She stated that the City will be finalizing the purchase of the park property on November 30, 2018, with the help of Great Outdoor Colorado (GOCO) funds awarded this past March. She stated that the EIAF grant application is due December 1, 2018, and the grant will be awarded in the spring of 2019. She stated that the City will provide matching funds as required by the DOLA grant which were allocated in the 2019 Budget. She stated that if the City is awarded the requested funds, the contract will be brought back to Council for approval. In answer to a question from Mayor Sheek, City Attorney Green stated that the City is purchasing the entire property from the School District and an agreement with the Housing Authority for the property they will be buying for their development will be handled at a future Council meeting. In answer to a question from Mayor Pro-tem Lucero, Management Intern Heitzman stated that the DOLA grant will require a 50/50 match which will come from the General Fund and the Conservation Trust Fund. Mayor Pro-tem Lucero moved that Council approve Resolution No. 31, Series 2018, permitting the City to apply for a Department of Local Affairs (DOLA) EIAF grant for the development of the new neighborhood park. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek absent absent Yes Yes Yes Yes Yes 8. DRAFT ORDINANCES/RESOLUTIONS – None. 9. OTHER ITEMS OF BUSINESS a. Parade of Lights. Councilmember Noyes asked about the route (east bound on the north lane) for the parade which will be held on Saturday, December 1, 2018, at 6:00 p.m. Chief of Police Lane stated that the south side of Main Street will also be closed to traffic and people can walk to the edge of the medians to watch the parade. 10. ADDITIONAL CITIZEN PARTICIPATION – None. 11. CITY ATTORNEY’S REPORT – None. CITY COUNCIL REGULAR MEETING NOVEMBER 27, 2018 PAGE 8 12. CITY MANAGER’S REPORT a. Complaint from Citizen. City Manager Dougherty noted that the complaint received from a citizen in Cortez that was placed in the Council mailboxes has been dealt with and handled by the Public Works Department to the citizen’s satisfaction. 13. CITY COUNCIL COMMITTEE REPORTS a. Mayor’s Report on Workshop. Mayor Sheek stated that during the worksession a presentation was given on the development of a new incentive program that is being worked on in the Planning and Building Department and discussion was held on anticipated costs for the new neighborhood park. Also, discussion was held on nepotism as outline in the City’s Personnel Handbook. Mayor Sheek stated that Council then adjourned to Executive Session for a conference with the City Attorney for the purpose of receiving legal advice on specific questions regarding settlement of litigation, as per C.R.S. Section 24-6-402(4)(b). b. Parks, Recreation, and Forestry Advisory Board. Councilmember Lavey stated that the Parks, Recreation, and Forestry Advisory Board meet on November 16, 2018, and discussion included the status of the south neighborhood park and a review was completed on the 2016 Master Plan. c. Cortez Cultural Center Board. Councilmember Lavey stated that discussion at the Cortez Cultural Center Board meeting included upcoming events such as the tree lighting (Festival on the Plaza) that will be held on Saturday, December 1, 2018, following the parade. He noted that the Birding Festival is planned for May 8-12, 2018. He stated that Southwest Open School is displaying some of their art work at the Center in December and January. d. Mesa Verde Country Meeting. Mayor Sheek stated that the budget was being reviewed and discussion was held on more advertisement of the area. e. Library. Mayor Sheek stated that the Library architects (Humphries Poli) met with the community and Library staff a few weeks ago to receive suggestions for renovating the Library. She noted that good information was shared. f. Police Beards in November. Chief of Police Lane stated that the Police Department employees have been growing their beards the month of November and have contributed $40 each to participate in the fund raiser which will be given to Hospice. The regular meeting was adjourned at 9:00 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ___________________________ Linda L. Smith, City Clerk