City Council Meetings

CITY COUNCIL REGULAR MEETING TUESDAY, DECEMBER 8, 2020 1. The meeting was called to order at 7:30 p.m., through ZOOM. The meeting was opened with the Pledge of Allegiance. Councilmembers present were Mayor Mike Lavey, Robert Dobry, Amy Huckins, Orly Lucero, Mayor Pro-tem Rachel Medina, David Rainey, and Arlina Yazzie. Staff members present were Director of Finance Ben Burkett, Chief of Police Vernon Knuckles, Human Resources Director Matt Cashner, Director of General Services Rick Smith, Airport Manager Russ Machen, Finance Assistant/Deputy City Clerk Sara Coffey, Accounts Clerk/Accounts Receivable David Schaak, Parks and Recreation Custodian Byron Lipe, Recreation Supervisor Rosa Dimon, IT Support Technician Kyle Kuhn, Network Administrator Bill Kuhn, City Clerk Linda Smith, City Manager John Dougherty, and City Attorney Mike Green. There were 10 people signed up as participants on ZOOM. 2. The Consent Agenda items acted upon by Council were as follows: a. Approval of the Worksession and Regular Meeting Minutes of November 24, 2020. b. Approval of the payment of the Expenditure Vouchers of December 8, 2020. Councilmember Lucero moved that the Consent Agenda be approved as presented with an addition to the Agenda, Other Items of Business (8a.), Memorandum of Understanding (MOU) between the Cortez Community Network Enterprise and Montezuma County. Councilmember Rainey seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes 3. PRESENTATIONS a. City Employees Years of Service Awards were distributed to the following employees: 40 Years (1980) Russ Machen; 35 Years (1985) Lori Millich; 30 Years (1990) Nick Randall; 25 Years (1995) Andy Brock, Matt Cashner, and Don Royce; 20 Years (2000) Nathan Hoffmann; 15 Years (2005) Sara Coffey, Andy Hernandez, David Schaak, Buck Woodman, Judd Yench, and Byron Lipe; 10 Years (2010) Daniel Hernandez and David Rucker; 5 Years (2015) Neva Connolly, Randy Curtis, Rosa Dimon, Noah Herrman, Brent Jarmon, Rich Landreth, Taylor Marsell, Rog Maynard, David Potter, and Priscilla Begay. Council thanked all the employees for their dedication to the City. b. 2016 Financial Information. Director of Finance Burkett spoke about the process for sharing the information on the 2016 Audit and noted that the audit is complete. Tim Mayberry, Mayberry and Company, LLC, Certified Public Accountant, spoke about the audit noting that it has been difficult to complete due to the embezzlement and a poor software conversion. He stated that many different funds had to be unraveled and spoke of specifics in the General Fund, Self-Insurance Health Fund, Cortez Community Network Enterprise, and Lodgers Tax Fund. He stated that there were budget CITY COUNCIL REGULAR MEETING DECEMBER 8, 2020 PAGE 2 violations because there were not good records for the City to make good decisions. He spoke about TABOR transactions that were adjusted to meet requirements and highlighted some of the City’s financial reports. He stated that audit adjustments have been completed and Council may adopt the audit at the January 12, 2021, Council meeting. Lorraine Trotter, Professional Management Solutions, reviewed the Financial Statements included with the audit and outlined what each report means. She noted that the City of Cortez continues to maintain a healthy financial positon with reserves at levels required in the City’s budget policy. It was noted that the City Management continues to budget conservatively which seeks to provide cost-effective services in all fiscal years, and responds to changing economic conditions as they arise. It was noted that the City’s financial position improved by $3,390,034 (6.4%) during 2016. Ms. Trotter commented that the 2016 accounting software upgrade along with internal controls that are now in place are expected to prevent a recurrence of fraud in the City. She spoke about the clean opinion received from the auditors and that the financial statements are complete. In answer to a question from Councilmember Dobry regarding concerns with the Cortez Community Network Enterprise and the Self-Insurance Health Fund, Director of Finance Burkett explained what has been done to address issues with the two funds and noted that work will continue to get everything addressed. 4. PUBLIC HEARING – None. 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS a. Pay Invoices through 2020. Director of Finance Burkett asked Council to authorize the bills to be paid through December 31, 2020, noting that a copy of the receipts would be given to Council at their first meeting in January, 2021. He stated that by continuing to pay the bills as they come in allows all the vendors to receive their payment in a timely matter before the end of the year. Councilmember Lucero moved that Council authorize the payment of City invoices through December 31, 2020, with a listing of expenditures to be furnished to Council at their first meeting in January 2021. Mayor Pro-tem Medina seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes b. Resolution No. 28, Series 2020. Human Resources Director Cashner stated that Resolution No. 28, Series 2020, approves an amendment to the Employee Handbook, 2020 addition. He reviewed the change that was being made as outlined in Senate Bill 20-205, which requires part-time employees to receive one hour of paid sick leave for every thirty hours worked, up to forty-eight hours per year. It was noted that sick leave can be used as it is accrued. In answer to a question from Councilmember Lucero, Human Resources Director Cashner noted the section in the handbook that was changed (Section 3. Sick Leave). Councilmember Dobry moved that Council approve Resolution No. 28, Series 2020, approving an amendment to the Employee Handbook, 2020 Edition. Councilmember Huckins seconded the motion, and the vote was as follows: CITY COUNCIL REGULAR MEETING DECEMBER 8, 2020 PAGE 3 Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes c. 2021 Joint Chemical Bid. Director of General Services Smith stated that for many years the City has coordinated a joint chemical bid for the water and sewer plants in the area which includes the Town of Dolores, Town of Mancos, Montezuma Water Company, and the City of Cortez. He stated that by joining together on the bid there is a cost savings to each entity and each entity awards their bids to the individual vendors. He stated that the City of Cortez total bid amount is $192,512.51. Councilmember Lucero stated that the City has been using this program for many years and it is good to have the cost savings for the City by joining together on the bid. Mayor Pro- tem Medina asked what it would cost to add fluoride to the water and Director of General Services Smith stated that he did not know what the cost would be as it was not an item added in the bid. He stated that the water plant would need to complete a study on adding fluoride to the City’s water system to see if that is possible or not. Councilmember Rainey moved that the 2021 Joint Chemical Bid be awarded to the individually highlighted vendors for a City of Cortez total award of $192,512.51. Councilmember Lucero seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes d. Ordinance No. 1282, Series 2020. Director of Finance Burkett stated that Ordinance No. 1282, Series 2020, approves the City to enter into an agreement with the Colorado Department of Revenue for the Sales and Use Tax System (SUTS) to collect, centralize, and simplify the collection of taxes for online sales. He spoke about the agreement that the City of Cortez signed in August 2020 with the Colorado Department of Revenue for the SUTS program and the ordinance would complete the process joining with simplifying the efforts of all the self-collecting home rule municipalities in Colorado regarding the online sales tax collection. Councilmember Huckins moved that Council approve on first reading Ordinance No. 1282, Series 2020, approving the City to enter into an agreement with Colorado Department of Revenue for the Sales and Use Tax System (SUTS) to collect, centralize, and simplify the collection of taxes for online sales, and set the ordinance for public hearing on January 12, 2021. Councilmember Lucero seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes e. Resolution No. 29, Series 2020. City Manager Dougherty stated that Resolution No. 29, Series 2020, authorizes the City’s participation in the Rural Jump-Start Zone Program. He stated that the program was initiated to help drive economic development in rural areas of Colorado. He spoke about what the program would provide should someone start their business in Cortez. In answer to a question from Councilmember Yazzie, City Manager Dougherty stated that no one in Cortez has qualified for the program; however, the program was used in La Plata County. Mayor Pro-tem Medina asked that the City promote the program more so everyone would know the City is offering CITY COUNCIL REGULAR MEETING DECEMBER 8, 2020 PAGE 4 the incentive. Councilmember Yazzie moved that Council approve Resolution No. 29, Series 2020, authorizing the City’s continued participation in the rural Jump-Start Zone Program. Councilmember Huckins seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes f. Addendum 2 to the City Manager Contract. Mayor Lavey stated that discussion was held on the City Manager’s contract during the Executive Session and Council agreed to give the City Manager a 3% raise and to change the contract to require two months (instead of six weeks) written notice should the City Manager decide to resign his position with the City. Councilmember Rainey moved that Council approve Addendum 2 to City Manager John Dougherty’s contract with a 3% raise effective on his anniversary date and two months (eight weeks) written notice should the City Manager decide to resign his positon with the City, and authorize the Mayor to sign Addendum 2. Mayor Pro-tem Medina seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes g. Transfer of Airport Land Lease due to Hangar Sale. Airport Manager Machen stated that Stanley Ruggles has a hangar with a 40-year land lease at the Airport and he is selling his hangar to Karl Spielman. He stated that Mr. Spielman will assume the remaining 34 years left on the lease. He stated that all lease provisions remain unchanged. He noted that Mr. Spielman will be storing his own private aircraft in the hangar. Councilmember Lucero moved that Council approve the Airport Land Lease for an Airport hangar with Karl Spielman. Councilmember Rainey seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes 7. DRAFT RESOLUTION/ORDINANCES – None. 8. OTHER ITEMS OF BUSINESS a. Memorandum of Understanding (MOU) between the Cortez Community Network Enterprise and Montezuma County. Director of General Services Smith commented that Montezuma County has asked the City to partner together on connecting broadband to Highway 491 and County Road G. He stated that the County has provided funding from their budget to complete the process which would allow broadband to be placed down the southwest side of Cortez. He stated that possibly this will be part of a regional effort to get connectivity to Towaoc and the Airport. He stated that the Memorandum of Understanding outlines the responsibilities for the City and the County for the CITY COUNCIL REGULAR MEETING DECEMBER 8, 2020 PAGE 5 project. He stated that the City would provide the City’s grant writer as part of the agreement. He thanked Jim McClain and Jim Candelaria for leading the effort for the project. In answer to a question from Councilmember Lucero, Director of General Services Smith stated that the City would mostly be leveraging the City’s existing infrastructure; however, the City would need to put cable in the empty conduit and there may be pole attachment costs. He stated that a project budget would be completed and shared with Council prior to the start of the project. Mayor Pro-tem Medina commented that she feels this is a good project to work with the County on and that the City needs to commit with the fiber project or scrap it as the fund is losing money. She noted that this project is a great way to move the broadband project forward, which during the pandemic has shown how important the internet is to everyone. In discussion of the Cortez Community Network Enterprise account, City Manager Dougherty stated that the report on the Enterprise Fund given by the auditor was through 2016 and those numbers have changed since that time. He commented that he feels the system should be kept running and expanded as far as it can and that the project is a win/win for everyone. Discussion was held on the Cortez Community Network Enterprise which was created similar to the way the hydro plant and water enterprises are run for the City. Councilmember Rainey moved that Council approve a Memorandum of Understanding between the Cortez Community Network Enterprise and Montezuma County. Councilmember Huckins seconded the motion, and the vote was as follows: Dobry Huckins Lavey Lucero Medina Rainey Yazzie Yes Yes Yes Yes Yes Yes Yes 9. CITIZEN PARTICIPATION – None. 10. CITY ATTORNEY’S REPORT – None. 11. CITY MANAGER’S REPORT a. Auditor. City Manager Dougherty stated that Tim Mayberry has resigned as the City’s auditor and a new Request for Proposal (RFP) will be completed to find a new auditor for completion of the 2017 audit forward. It was noted that Mr. Mayberry does not feel that he can deliver the audits in a timely manner as he doesn’t have as much staff as he once had. City Manager Dougherty stated that the Finance Director position is currently being advertised and will probably not be filled until February and he asked if staff should move forward or wait to hire a new auditor until the Finance Director is hired. In answer to a question from Councilmember Yazzie, City Manager Dougherty noted that Lorraine Trotter, Consultant to the Finance Department, will continue to work on the audits for the City and be prepared to work with a new auditor when the City hires one. Council agreed that time is of the essence and the auditor RFP should be placed out for the public so the City can begin receiving responses. Discussion was held on interviewing for a new Finance Director and City Manager Dougherty commented that Mr. Mayberry had stated that a new director should have governmental accounting background as there is so much to learn when the person comes from the private sector. 12. CITY COUNCIL COMMITTEE REPORTS CITY COUNCIL REGULAR MEETING DECEMBER 8, 2020 PAGE 6 a. Mayor’s Report on Workshop. Mayor Lavey stated that discussion in the Council worksession included the final distribution of funding to the Community Non-Profit Grant requests and an update was given on the CARES funding that has been approved for local businesses and the amount that is left for round two for the funding requests. Also, discussion was held on planning a Council retreat. Council adjourned to Executive Session for discussion on a personnel matter under C.R.S. Section 24-6-402(2)(f) and not involving: any specific employees who have requested discussion of the matter in open session; any member of this body for any elected official; the appointment of any person to fill an office of this body or of an elected official; or personnel policies that do not require the discussion of matters personal to particular employees. Mayor Lavey wished everyone Happy Holidays and encouraged everyone to be safe, be kind, continue with social distancing, and remember to wash your hands. The regular meeting was adjourned at 9:40 p.m. ________________________________ Michael J. Lavey, Mayor ATTEST: ___________________________ Linda L. Smith, City Clerk