City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, NOVEMBER 12, 2019 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, Sue Betts, Jill Carlson, Ty Keel, Mike Lavey, and Gary Noyes. Staff members present were City Planner Tracie Hughes, Director of Public Works Phil Johnson, Airport Manager Russ Machen, Airport OPS Technician Efrain Vaquera, Finance Director Ben Burkett, Management Intern Peyton Heitzman, Recreation Supervisor Rosa Dimon, City Clerk Linda Smith, City Manager John Dougherty, and City Attorney Mike Green. There were 24 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 22, 2019. b. Approval of the payment of the Expenditure Vouchers of November 12, 2019. Councilmember Keel moved that the Consent Agenda be approved with the additional expenditure vouchers of $4,834.29. Councilmember Carlson seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes 3. PRESENTATIONS – None. 4. CITIZEN PARTICIPATION a. Land Use Code Concerns. Greg South, 7127 CR 25.4 stated that he has concerns for the overreach of the proposed Land Use Code as it would be detrimental to new businesses as well as existing businesses and that Council should vote no. b. Land Use Code Concerns. Emiko South, 7127 CR 25.4 stated that she does not support the Land Use Code and has spoke to several businesses and everyone she has spoken to, except one, does not know anything about the code. She stated they are concerned about how the code would impact their businesses. She doesn’t understand why a new code is being presented when the old code could be changed as needed. Councilmember Carlson asked that any concerns regarding the code be put in writing so Council can review them. c. Land Use Code Concerns. Mindy Nelson, 22094 Road N, stated that she does not support the Land Use Code due to concerns with the landscaping, screening, and buffering requirements. She noted her concern with Agenda 21 and stated that Federal funds destroys State rights. She stated that Council was elected to serve, not to rule and she asked that more time be given for the public to review the code. CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 2 5. PUBLIC HEARINGS a. Ordinance No. 1269, Series 2019. City Planner Hughes stated that Ordinance No. 1269, Series 2019, approves the vacation of the alleyway lying between Tracts C and D of the Montview Subdivision as requested by Rosie Carter, 50 East Carpenter Street. City Planner Hughes stated that the alley does not connect to any other right-of-way on the east side and the applicant owns the parcels to the north and the south. She stated that there has been no opposition to the request and the Public Works Director has no concerns with vacating the alley. She reviewed Land Use Code Section 6.25, Vacation of Rights-of-Way and Easements and noted that this vacation will not be in violation of any of the criteria. She stated that two of the neighbors of the property have sent letters that they have no objections with the vacation of the alleyway. Mayor Sheek opened the public hearing. David Butler, 50 East Carpenter Street, stated that he is representing Rosie Carter as she is out-of-town. He stated that the alley is situated like a ‘T’ and it would be impossible to make a turn in the alley due to trees and a building located in the area. No one else spoke and Mayor Sheek closed the public hearing. Councilmember Keel moved that Council approve on final reading Ordinance No. 1269, Series 2019, approving the vacation of the alleyway lying between Tracts C and D of the Montview Subdivision, as requested by Rosie Carter. Councilmember Betts seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes b. QUASI-JUDICIAL ITEM – New Retail Marijuana Cultivation License for Mountain Annie’s LLC. Mayor Sheek stated that the request from Mountain Annie’s LLC is a Quasi-Judicial item and she asked if anyone had any conversation or contact regarding the application; however, no one spoke. City Attorney Green stated that Mountain Annie’s LLC, DBA The Medicine Man, is located at 310 East Main Street, and currently has a Medical Marijuana Store, Medical Cultivation License, Medical Marijuana-Infused Product Manufacturer, and a Retail Marijuana Store License. He stated that the owner would like to add a Retail Marijuana Cultivation Facility to the premises. He stated that Mountain Annie’s LLC has received a Conditional Retail Marijuana Cultivation License from the State of Colorado; however, the license requires local approval before it can be activated. He reviewed the findings for the application approval and noted that staff has no recommendation for conditions on the license. Mayor Sheek opened the public hearing; however, no one spoke and the hearing was closed. Councilmember Lavey moved that Council approve the Retail Marijuana Cultivation License for Mountain Annie’s LLC adopting the findings pursuant to Section 15-414, Cortez Retail Marijuana Code, Cortez City Code, with Exhibit 1 as part of the City’s record of the approval. Councilmember Carlson seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 3 6. UNFINISHED BUSINESS – None. 7. NEW BUSINESS a. Forensic Audit Update and Contract Approval. Finance Director Burkett stated that an investigation into the fraud by a former employee is under way by both the Colorado Bureau of Investigation (CBI) and Baker Tilly Virchow Krause, LLP, forensic auditors. He stated that the fraud event is covered under the City’s insurance plan and the insurance carriers hired the forensic auditors. He stated that a forensic auditor for Baker Tilly Virchow Krause, LLP was onsite in September 2019 and has gathered data for offsite review and analysis. He stated that the auditors are only able to review data and documentation back to mid-year 2016 due to the implementation of the Caselle financial system at that time. He stated that financial reports from the previous financial system, AS400, were printed in hard copy format and some reports have been destroyed. He stated that the forensic auditors and City staff are hopeful the reports can be recreated from AS400 backups which may be located on local servers and/or eight-millimeter tape. He stated that it is unknown if the restoration would be successful; however, the information if it can be retrieved would help the forensic auditors to further analyze data possibly affecting the City’s insurance claim. He stated that City staff has engaged with IT specialists from Kroll to provide a Level of Effort and Statement of Work regarding the restoration of the AS400 backup plan which is charged on an hourly basis depending on the accessibility of the AS400 backup. He stated that the costs associated to restore the AS400 data may be offset by any amounts received from the insurance claim. He stated that the forensic auditors have reason to believe the fraud did not occur in any one single year and was occurring prior to 2016. He asked Council to approve a contract with Kroll to restore data from the AS400 backups. Discussion was held on how the process would work for uncovering the data from the AS400. Councilmember Carlson asked what the time bar is for how far the City can go back on the fraud that has occurred. Finance Director Burkett stated that he does not know how much has occurred but he has been informed that it is more than the $25,000 that has been admitted to. Discussion was held on if this information would help complete the audits and Finance Director Burkett stated that the current financial issues are more a clerical issue and not based off of the fraud that occurred. Councilmember Keel stated that he is struggling with using tax payer money to complete this request and discussion was held on what the data may provide should it be retrieved. After further discussion, it was noted that City staff does not have the skills to restore the data from the AS400. Finance Director Burkett stated that the forensic audit needs to be completed before the City can move forward on completing the City’s audits at the request of the CBI. Councilmember Carlson moved that Council approve the IT Specialist Contract with Kroll Cyber Security, LLC up to $20,000 if needed to complete the restoration of AS400 data. Councilmember Betts seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes No Yes Yes Yes Yes b. Land Lease Transfer Due to Airport Hangar Sale. Airport Manager Machen stated that John Hutchison has a hangar with a 40-year land lease at the Airport, which he is selling to Dan Morris. He stated that Mr. Morris will assume the remaining 36 years 1 month and all lease provisions will CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 4 remain unchanged. Councilmember Keel moved that Council approve a land lease transfer from John Hutchison to Dan Morris for a hangar at the Airport. Councilmember Carlson seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes c. Youth Commission Appointments/Re-appointments. Management Intern Heitzman stated that the Cortez Youth Commission was established January 22, 2019. She stated that the City received six new applications of which four (Loris Stone, Sadie Veach, Willa Rice, and Marissa Moore) have completed the interview process and are seeking appointment tonight. She stated that there are three returning students (Annika Lewis, Christopher Matimba, and Nizhoni Sam) whose appointments will need to be renewed by Council. Ms. Lewis stated that she is the Chair of the Youth Commission and commented on some of the subjects that the group has learned about over the past year including environmental issues and how local government works. She stated that the Committee has created a safe place where youth can share information on the community. Ms. Moore thanked Council for the opportunity to be part of the group. Ms. Rice stated that she is excited to have more say in youth activities. Ms. Stone stated that she is serving as Secretary for the Youth Commission and joined to receive her leadership hours as well as navigate input with Council and other boards. In answer to a question from Councilmember Keel, Ms. Lewis spoke about the issues that youth have such as staying motivated and knowing there is more out there for each student’s future. Management Intern Heitzman stated that the Commission typically meets on the 2nd and 4th Wednesday of each month from 7:30 to 8:30 p.m. and invited Council to stop by if they would like to check it out. Councilmember Carlson moved that Loris Stone, Sadie Veach, Willa Rice, and Marissa Moore be appointed to the Youth Commission and Annika Lewis, Christopher Matimba, and Nizhoni Sam be re-appointed for the 2019-2020 term. Councilmember Betts seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes d. EV Charging Station Agreement with Osprey, LLC. Management Intern Heitzman stated that in August 2019, the City of Cortez was awarded a $9,000 grant from Charge Ahead Colorado through the Colorado Energy Office to purchase and install a Level II dual port charging station at the Cortez Welcome Center. She stated that the grant has been in partnership with Osprey who has committed to fund $10,000 of the total cost of installing the EV charging station. Discussion was held on the two free charges that would be given to each employee of Osprey that have an electrical vehicle as part of the agreement. Management Intern Heitzman stated that the City will set the rates for the fees charged for use of the EV Charging Station and the software would be set up to recognize the free charges that would be allowed for Osprey employees. It was noted that Montezuma County is working with another group that would also offer a EV Fast-Charging station in the community. It was noted that the agreement with Osprey is for 15 years. CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 5 Councilmember Lavey moved that Council approve the agreement between the City of Cortez and Osprey, LLC for Osprey’s donation of $10,000 toward the purchase and installation of an EV charging station at the Cortez Welcome Center. Councilmember Carlson seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes e. Contractor for EV Charging Station. Management Intern Heitzman stated that the City, with Osprey’s assistance, has received three quotes for a Level II dual port charging station to ensure that pricing is competitive. She reviewed the three quotes and stated that staff is recommending that Living Solar or National Car Charging LLC. She reviewed the amounts quoted and noted that $9,000 will be received from the Charge Ahead Colorado Grant, $3,000 will be received from a rebate from Empire Electric, and $10,000 will be paid through Osprey’s sponsorship, leaving the City of Cortez with a total amount of $6,525.50 - $8,330.00 depending on who is awarded the contract. She noted that the cost for the EV Charging Station would be covered under the Welcome Center budget. Councilmember Carlson moved that the City award the EV Charging Contract to Living Solar to provide materials and labor for the installation of an EV charging station to be located at the Cortez Welcome Center. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes f. Refund for Hampton Inn Liquor License. City Attorney Green stated that the Hampton Inn applied for a liquor license that does not exist as the State does not have a license that allows the applicants to sell liquor to the hotel’s entire premises. He stated that the applicants have withdrawn their license request and have asked for their fees to the City to be returned since the license cannot be obtained. In answer to a question from Councilmember Lucero, City Clerk Smith stated that she has spent time on processing the application; however, it is felt that the full amount should be returned since the license cannot be issued as requested. Councilmember Betts moved that Council approve the refund of $1048.75 to AAA Hotel Developers (Hampton Inn) for the return of fees paid for a liquor license that was never issued. Councilmember Carlson seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes g. Ordinance No. 1271, Series 2019. Finance Director Burkett stated that Ordinance No. 1271, Series 2019, appropriates the 2020 expenditures and sets the mill levy. He stated that Council held two workshops to review the budget proposal and the changes, as reviewed by Council, have been made to the document. He noted that the budget is available for the public to view on the City’s website. He stated that the mill levy was calculated per Tabor limitations at 1.29 mills. He stated that total of all funds for the 2020 Budget is $30,149,619, which includes depreciation expenses. CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 6 Councilmember Noyes moved that Council approve on first reading Ordinance No. 1271, Series 2019, appropriating 2020 expenditures and setting the mill levy for 2020, and that the ordinance be set for a public hearing on November 26, 2019. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek No Yes No Yes No Yes Yes h. Resolution No. 29, Series 2019. Management Intern Heitzman stated that Resolution No. 29, Series 2019, approves a resolution supporting the application for a grant to continue historic property surveys of 22 properties south of Main Street in the Original Townsite. She stated that the City has received seven CLG (Certified Local Government) grants since 2011 to inventory properties within the Original Townsite and create a podcast of the Montezuma Avenue walking tour. She stated that the next grant would continue to inventory properties in the Original Townsite between First and Second Streets. She stated that the grant will provide 100% of the cost for the project. Linda Towle, Vice-Chairperson of the Historic Preservation Board, shared a map of the area which the next grant would cover. She stated that some of the houses in the area have been said to come from the Town of McPhee. Discussion was held on the color coded map and what the different colors represented. Councilmember Lavey moved that Council approve Resolution No. 29, Series 2019, supporting a grant application to History Colorado for a historic property survey of 22 properties south of Main Street in the Original Townsite. Councilmember Betts seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes Yes Yes Yes i. Professional Services Contract Approval of Financial Consultant. Finance Director Burkett stated in 1992, Colorado voters approved the Tabor Amendment limiting the amount of revenue governments can retain and spend. He stated that in 1998 the City of Cortez “de-Bruced” as the voters approved the City to keep and retain excess revenues above Tabor with those revenues going to a Capital Improvement Fund. He stated that during the preparation for the 2020 Budget, it was discovered that the Tabor revenue limit has not been calculated and it is unknown whether any excess funds were and are required to be going to a Capital Improvement Fund for capital projects. He stated that staff would like to recommend that a contract be approved with Lorraine Trotter from Professional Management Solutions to support the review of Tabor revenue limitations and to make corrections to current processes related to the implementation of Caselle. In answer to a question from Councilmember Lucero, Finance Director Burkett stated that the two items (a Tabor analysis for $750 and Financial Process Review not-to-exceed $1,560) would total $2,310. It was noted that travel expenses are not included in the amount and staff would try to work remotely if possible. Councilmember Carlson moved that the City Manager be authorized to sign the contract with Professional Management Solutions for $2,310 in support of Tabor calculations and analysis and to support the review and implementation of best practices for furthering the completion of all CITY COUNCIL REGULAR MEETING NOVEMBER 12, 2019 PAGE 7 outstanding audit reports, keeping the Council informed at each step of the way. Councilmember Lavey seconded the motion, and the vote was as follows: Betts Carlson Keel Lavey Lucero Noyes Sheek Yes Yes Yes Yes No Yes Yes 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 worksession Council reviewed the proposed Land Use Code and an update was held on the South Neighborhood Park construction documents. She stated that discussion was held on renaming City Park to Veterans Park and Council agreed to move that process forward for approval at a future meeting. Also, discussion was held on the City acting as a fiscal agent for the Middle School GOCO Playground Initiative Grant and a presentation was made on the Airport runway being extended. She stated that Council adjourned 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). b. Golf Advisory Board. Councilmember Keel stated that he attended the last Golf Advisory Board meeting on Wednesday, October 23, 2019, and discussion included upcoming projects including the flag pole section that will be completed this year. He stated that Golf Course Superintendent Tom Kramlich continues to exceed expectations and the City is thankful to have Micah and Anett Rudosky running the Pro Shop. c. Comedy Night. Councilmember Carlson stated that the Dolores River Brewery will begin hosting Comedy Night once a month with the first event being held on November 22, 2019, 8:00 p.m. She stated that a local Cortez business (Mathews Walk-ins Hair Cuts) is sponsoring the event. The regular meeting was adjourned at 8:45 p.m. ________________________________ Karen W. Sheek, Mayor ATTEST: ___________________________ Linda L. Smith, City Clerk