CITY OF STEAMBOAT SPRINGS REGULAR MEETING NO. 2008-07 TUESDAY, MARCH 4, 2008 MINUTES Mr. Loui Antonucci, City Council President, called Regular Meeting No. 2008-07 of the Steamboat Springs City Council to order at 5:02pm, Tuesday, March 4, 2008, in Centennial Hall, Steamboat Springs, Colorado. City Council Members present: Loui Antonucci, Cari Hermacinski, Meg Bentley, Steve Ivancie, Walter Magill, Scott Myller, and Jon Quinn. City Staff Members present: Wendy DuBord, Deputy City Manager; Anthony B. Lettunich, City Attorney; Julie Jordan, City Clerk; Julie Franklin, Deputy City Clerk; Anja Tribble, Staff Assistant; Philo Shelton, Director of Public Works; Nancy Engelken, Housing Coordinator; Jonathan Spence, City Planner; Sid Rivers; City Planner; JD Hays, Director of Public Safety; Lisa Rolan, Director of Financial Services; Bob Litzau, Assistant Director of Financial Services; Bob Robichaud, Facilities Maintenance; Joel Rae, Police Captain; Chris Wilson, Director of Parks, Recreation and Open Space. NOTE: All documents distributed at the City Council meeting are on file in the Office of the City Clerk. At this time there was a moment of silence for Eric O’Hara, who passed away last week. EXECUTIVE SESSION: To discuss the topics set forth below. The specific citation to the provision or provisions of C.R.S. §24-6-402, subsection (4) that authorize(s) the City Council to meet in an executive session are also set forth below. The stated topic identifies the particular matter to be discussed in as much detail as possible without compromising the purpose for which the executive session is authorized. a. A discussion regarding security: This discussion is authorized under the following provisions: For discussion of specialized details of security arrangements or investigations under C.R.S. Section 24-6-402(4)(d). MOTION: Council Member Ivancie moved and Council Member Bentley seconded to adjourn Regular Meeting No. 2008-07 at approximately 5:03pm to go into Executive Session for the reason set forth above. The motion carried 7/0. MOTION: Council Member Ivancie moved and Council Member Myller seconded to come out of Executive Session and reconvene the Regular Meeting 2008-07 at approximately 5:24pm. The motion carried 7/0. Persons attending the Executive Session: Loui Antonucci, Cari Hermacinski, Meg Bentley, Steve Ivancie, Walter Magill, Scott Myller, Jon Quinn, Tony Lettunich, Wendy DuBord, JD Hays, Joel Rae, Julie Jordan and Julie Franklin. City Council President Antonucci noted for the record, that if any person who participated in the executive session believes that any substantial discussion of matters not included in the motion to go into the executive session occurred during the executive session, or that any improper action occurred during the executive session in violation of the Open Meetings Law, that person should state his/her concerns for the record. No concerns were indicated. 1. Community Reports a. Update from Historic Structure Policy Review Committee (HSPRC). Mr. Jim Moylan, HSPRC, presented the HSPRC Interim Report. He thanked City staff for support and spoke to their charge of reviewing the current historic preservation ordinance. He stated that they recommend that the City create a local historic register; consider funding a survey of the eligible historic structures in Steamboat Springs; have the Historic Preservation Advisory Commission (HPAC) become a Commission with authority to enforce the ordinance and engage in public outreach; and recommend that the City create conservation overlay districts. Discussion took place relative, but not limited to: the overlay zone; financial incentives; and the mandatory review of 50 year old structures. PUBLIC COMMENT: Mr. John Fielding stated that the survey encompasses homes in Steamboat Springs that are 50 years old. He feels that the creation of a local register will identify the truly historic structures. He voiced concern with “leaving a hole” where something significant can be demolished. Mr. Troy Brookshire voiced concern with the overlay zone and mandatory compliance. He encouraged Council to come up with better incentives to get improved voluntary compliance. He would also like to see a matrix of what is already covered in the Code. DIRECTION: Questions for staff/Laureen Schaffer: How many houses are there? How many still need to be surveyed? What is the cost? Staff to provide a matrix of what is already covered in the Code. Council Member Myller feels that mass and scale should be left to Community Development Code (CDC); and historic preservation should speak to character and quality. Council Member Bentley encouraged Council to not “micromanage” and feels that Council needs to let the committee do their work. CONSENT CALENDAR: RESOLUTIONS AND ORDINANCES FIRST READINGS 2. FIRST READING OF ORDINANCE: An ordinance increasing the franchise fee for Atmos Energy Company gas distribution franchise previously granted by the City of Steamboat Springs; establishing an effective date; setting a hearing date; and repealing all conflicting ordinances. City Council President Antonucci read the ordinance title into the record. 3. FIRST READING OF ORDINANCE: Fifth 2007 Supplemental Appropriation Ordinance. City Council President Antonucci read the ordinance title into the record. 4. FIRST READING OF ORDINANCE: First 2008 Supplemental Appropriation Ordinance. City Council President Antonucci read the ordinance title into the record. MOTION: Council Member Ivancie moved and Council Member Bentley seconded to approve items 2-4 of the Consent Calendar; the first reading of an ordinance increasing the franchise fee for Atmos Energy Company gas distribution franchise previously granted by the City of Steamboat Springs; establishing an effective date; setting a hearing date; and repealing all conflicting ordinances; the first reading of the Fifth 2007 Supplemental Appropriations ordinance; and the first reading of the First 2008 Supplemental Appropriations ordinance. The motion carried 7/0. PUBLIC HEARING: ORDINANCE SECOND READINGS 5. SECOND READING OF ORDINANCE: An ordinance vacating a portion of the 40 foot wide sewer, utility and trail easement located in Lot 17 of Wildhorse Meadows Subdivision, Filing No. 1, providing an effective date and setting a hearing date. City Council President Antonucci read the ordinance title into the record. Council Member Quinn stepped down. PUBLILC COMMENT: No one appeared for public hearing. MOTION: Council Member Myller moved and Council Member Ivancie seconded to approve the second reading of an ordinance vacating a portion of the 40 foot wide sewer, utility and trail easement located in Lot 17 of Wildhorse Meadows Subdivision, Filing No. 1, providing an effective date and setting a hearing date. The motion carried 6/0. Council Member Quinn stepped down. Council Member Quinn returned to the meeting. 6. SECOND READING OF ORDINANCE: An ordinance approving a lease of a portion of the new Community Center at the Stockbridge Transit Center to Leo Hill Post #44 of American Legion, Inc.; establishing an effective date; authorizing the City Council President or President Pro Tem to execute documents; repealing all conflicting ordinances and resolutions; and providing for severability. City Council President Antonucci read the ordinance title into the record. Council Member Ivancie thanked the American Legion for collaborating on the dance floor, which he feels will be a community asset. Council Member Myller also noted his appreciation for the American Legion being willing to give the old building up for demolition. PUBLILC COMMENT: No one appeared for public hearing. MOTION: Council Member Ivancie moved and Council Member Myller seconded to approve the second reading of an ordinance approving a lease of a portion of the new Community Center at the Stockbridge Transit Center to Leo Hill Post #44 of American Legion, Inc.; establishing an effective date; authorizing the City Council President or President Pro Tem to execute documents; repealing all conflicting ordinances and resolutions; and providing for severability. The motion carried 7/0. 7. SECOND READING OF ORDINANCE: An ordinance vacating a portion of Gondola Lane right-of-way; providing an effective date and setting a hearing date. Staff requests this item to be postponed to March 18, 2008. City Council President Antonucci read the ordinance title into the record. MOTION: Council Member Ivancie moved and Council Member Myller seconded to postpone this item to the March 18, 2008 City Council agenda. The motion carried 7/0. PLANNING COMMISSION REPORT Mr. Steve Lewis, Planning Commission representative, was present and had no report. CONSENT CALENDAR - PLANNING COMMISSION REFERRALS: 8. PROJECT: Fish Creek Mobile Home Park (Yampa River Botanical Park Building) PETITION: Final development plan application for a building containing Park & Recreation Offices and Public Restrooms. City Council President Antonucci read the project title into the record. CONDITIONS: 1. Prior to Certificate of Occupancy, applicant shall provide a copy of the “Developer’s Agreement” between the Yampa Valley Housing Authority and the Union Pacific Railroad indicating that the railroad crossing improvements will be completed and the crossing made public. If the terms of such agreement have not been met between the two parties prior to Certificate of Occupancy, the applicant and all employees cannot access the site through the mobile home park. All employees will be required to park off- site until an agreement is obtained. 2. Approval of a Final Development Plan shall remain effective for a period of three (3) years, or until March 4, 2011. If an active building permit has been obtained for the Final Development Plan or part thereof, and the term of approval for the Final Development Plan expires, the development covered under the active building permit may continue; however, the Final Development Plan approval shall be considered expired and no new building permits may be issued based on the expired approval. 3. All required signatures shall be obtained and Sections One (Cover sheet), Two (Site Plan), Three (Building Elevations), and Four (Landscape Plan) of the Final Development Plan and submitted to the Department of Planning Services prior to issuance of Building Permit. 4. All required landscaping, indicated on the Landscaping Plan, shall be installed prior to issuance of a Certificate of Occupancy, or surety shall be posted. 5. Exterior lighting shall comply with City ordinances. Proof of compliance with the ordinance shall be submitted for review and approval of the Planning Director prior to issuance of a Certificate of Occupancy. 6. All improvements shall comply with all applicable sections of the Steamboat Springs Municipal Code and any other applicable relevant plans of affected agencies. 7. A Construction Site Management Plan will need to be provided at the time of building permit application. 9. FIRST READING OF ORDINANCE: An ordinance rezoning property located in Original Addition to Steamboat Springs, Block 10, portions of Lots 7-9, from RO (Residential Old Town) Zone District to CN (Commercial Neighborhood) Zone District; repealing all conflicting ordinances; providing for severability; and providing an effective date. City Council President Antonucci read the ordinance title into the record. MOTION: Council Member Bentley moved and Council Member Magill seconded to approve items 8-9 of the Planning Consent Calendar; the Yampa River Botanical Park Building final development plan application with conditions 1-7; and the first reading of an ordinance rezoning property located in Original Addition to Steamboat Springs, Block 10, portions of Lots 7-9, from RO (Residential Old Town) Zone District to CN (Commercial Neighborhood) Zone District; repealing all conflicting ordinances; providing for severability; and providing an effective date. The motion carried 7/0. PUBLIC HEARING – PLANNING COMMISSION REFERRALS There were no items scheduled for this section of the agenda. REPORTS 10. City Council a.) Local Liquor Authority: Administrative Division. City Council President Pro-Tem Hermacinski: 1. Stated that she has changed her mind regarding the Liquor Authority after conversations with constituents and thinks that City Council should continue to serve as the Administrative Division of the Liquor Authority. 2. Spoke to the Chamber summer discussion series on affordable housing and noted that the Chamber has requested that the City be a sponsor for $500, which includes two tickets. Council Member Magill supports this and would like it to be posted for City Council members to attend. UNANIMOUS CONSENT: City to sponsor the Series at $500, and come up with the money for any additional tickets needed. Council Member Ivancie: 1. Attended an Energy Impact Prioritization hearing. 2. Will attend a Colorado Association of Ski Towns meeting on March 6, 2008. Council Member Bentley: 1. Spoke to the Mountain Planning Conference she recently attended. She will provide a written report to Council. Council Member Myller: 1. Has been attending Yampa Valley Housing Authority (YVHA) meetings and feels there has been better morale lately. 2. Has met with the Building Department group and they have come to an agreement and established the scope of work. Council Member Magill: 1. Attended the Chamber Economic Development Council meeting last week and noted that transportation will be the topic of this year’s Economic Summit. 2. Toured the Stagecoach Dam with John Fetcher and Meg Bentley. 3. Participated in the Steamboat Pentathlon. Noted that it was a great event and Jeff Nelson did a great job with the event coordination. 4. Voiced concern with dogs at large and dog bites in the City. DIRECTION: Staff to provide Police Reports and a review of current laws. City Council President Antonucci: 1. Noted an invitation to Council and Management Team to an event at the Steamboat Art Museum. 2. Also noted an invitation to a Grand Futures Seminar on combating underage drinking. 11. Reports a. Agenda Review: 1.) City Council agenda for March 10, 2008. 2.) SSRA agenda for March 11, 2008. 3.) City Council agenda for March 11, 2008. 4.) City Council agenda for March 17, 2008. 5.) City Council agenda for March 18, 2008. Ms. Jordan reviewed the above agendas. DIRECTION: Ms. Jordan to close the above agendas. b. Staff Reports The following written staff reports were provided: Parks and Recreation; Deputy City Manager; and Public Works. Discussion took place relative, but not limited to: skate park design; and the public art proposed at Little Toots Park. c. City Attorney’s Update/Report. Mr. Lettunich reported on the following: 1. Security measures: MOTION: City Council President Pro-Tem Hermacinski moved and Council Member Ivancie seconded to approve security enhancement options 2-5 provided by staff. The motion carried 7/0. d. City Manager’s Report: Ongoing Projects. 1.) Ironhorse: Request for proposal process for repairs. Ms. DuBord noted that Mr. Robichaud and representatives from the respondents to the request for proposal (RFP) were present to answer questions. She stated that staff is looking for direction to enter into negotiations with the respondents to the RFP. Discussion took place relative, but not limited to: how to get assurance from management company that there will be incentives built in; and whether the Iron Horse should be used for work force housing or nightly rentals. City Council President Pro-Tem Hermacinski supports minimizing the cost to the taxpayer, and is curious to see both. Council Member Ivancie feels that the City has the need for workforce housing, and that is what the Iron Horse should be used for. He noted the need to take into account the true costs to the taxpayer relative to the costs of not being able to attract quality employees due to housing. He supports 100% work force housing. City Council President Pro-Tem Hermacinski would like to look into redevelopment options, so whether the Iron Horse is used for work force housing or nightly rentals, it will be fairly short term. She does agree with the need for workforce housing, but feels if the City enters into a partnership it is possible that the building could be demolished and something twice the size could be rebuilt and the City could pay off the debt on the site. In the interim, if the numbers are close, she supports having a private entity manage the Iron Horse and retain the workforce housing. Council Member Quinn feels that if the Iron Horse is used for workforce housing only, he would like the City to manage it, if it is used for nightly rentals then he would like the private sector to manage it, which he supports. He does support making the necessary improvements. Ms. DuBord stated that the money is for improvements on the older building. Council Member Bentley is in favor of the Iron Horse being used 100% for workforce housing. She voiced concern that the City might need more rooms at the Iron Horse than they contract for before the season. At that point, the City might have to pay the private contractor full rate for those additional rooms. City Council President Antonucci supports empowering staff to go forward and negotiate the RFP, look into different scenarios and bring a recommendation back to Council. DIRECTION: Staff to bring back details on both scenarios. DIRECTION: Ms. DuBord to work with City Council President Antonucci on how to achieve a private/public partnership for redevelopment of the Iron Horse site. City Council President Pro-Tem Hermacinski would like to have staff look at what needs to be done in lieu of redevelopment. Ms. DuBord stated that if the building is going to be demolished, the City would not need to spend the $250,000, that number could be reduced significantly. DIRECTION: Staff to come back with list of things that need to be done to get through the next three years. Staff to come back with the best and final offer and work with Ms. Engelken, and Council Members Antonucci and Bentley to draft an RFP for redevelopment of the Iron Horse. PUBLIC COMMENT: Mr. Tom Simmins, Resort Group, clarified that whatever the City did not use for workforce housing, they would master lease. He also noted that they would be interested in partnering in redevelopment of the site. Mr. Curt Weiss, Central Park Management, noted that both companies will supply a 95% occupancy in the future, and a motel operation will bring in more money than a workforce housing operation. At this time, Council heard the remainder of the Staff Reports. GENERAL PUBLIC COMMENT No one appeared for General Public Comment. 2.) Affordable Housing update. Ms. Engelken requested direction on changes in Community Housing Guidelines regarding deed restrictions, specifically the option purchase section. She feels that this section is not as specific as it needs to be, the option price needs to pay off the mortgage. She asked if Council would like to be notified every time there is a change in the Community Housing language, or on an as needed basis. City Council President Antonucci noted that if the change requires an ordinance, it has to come to Council. UNANIMOUS CONSENT: If the change is important bring it to Council right away. Ms. Engelken spoke to the definition of area median income (AMI) and a Market Demand Analysis that would define what constitutes a household related to the type and size of the unit people need, as well as rental versus ownership. She is requesting that the City fund one third of the cost of this analysis, up to $50,000. Routt County will fund at $10,000, Resort Ventures West at $5,000, The Atira Group at $5,000, Timbers LLC at $5,000, Steamboat 700 up to $50,000, and the Yampa Valley Housing Authority (YVHA) is to secure the remaining funds required. Ms. Donna Howell, YVHA, stated that the RFP will be lead by the YVHA, and confirmed that this is a collaborative effort. It was noted that this $50,000 would be a new appropriation. City Council President Antonucci feels that the City needs this as a tool to move forward with its housing plan. Council Member Bentley agrees. MOTION: Council Member Ivancie moved and Council Member Myller seconded to approve funding the Market Demand Analysis at up to $50,000. The motion carried 7/0. DIRECTION: Staff to add this appropriation to the second reading of the first 2008 supplemental appropriations ordinance. Ms. Engelken noted the need to update the 2003 Housing Needs Assessment. She supports the City pursuing a collaborative partnership with the YVHA to update this Assessment. UNANIMOUS CONSENT: Staff to apply for grant and move forward. Ms. Engelken spoke to the potential of doing a design competition that could provide inside clues into ways to cut costs without cutting opportunities to provide affordable housing. PUBLIC COMMENT: Ms. Noreen Moore, Routt County Economic Development Coalition, feels this has been the most professional groups she has worked with so far, and she thanked the City for the support. Ms. Howell noted that all the information gathered to date will be baseline information for vendors providing a bid on the RFP. City Council President Antonucci spoke to some discussion items provided by the YVHA: How to do audits of qualified buyers, for example when deed restricted properties change hands, who is responsible for making sure the new buyer is qualified? Ms. Engelken stated that is her job to verify that the new buyer meets the guidelines; however the City can designate another agent to do this. She will also do a random audit one to two times a year; and has a standard set of pre- qualification documents. Ms. Howell feels that this would be duplication of services because they are already doing this for their projects. She feels that one entity should monitor all projects for consistency. She feels that the Market Demand Analysis will help to not feel like entities are in competition with one another. City Council President Antonucci feels that Council needs to have further discussion with staff regarding this issue. Ms. Engelken complimented Resort Ventures West for their work on the First Tracks affordable housing development. City Council President Pro-Tem Hermacinski would like to work with Ms. Engelken on changes to the inclusionary zoning (IZ)/linkage ordinances. She would like to revise the exit strategy to make it graduated. She also feels that the City should repeal commercial linkage all together. MAJORITY CONSENT: City Council President Pro-Tem Hermacinski to work with Ms. Engelken on these issues. Council Member Ivancie would like to give it more time before revisiting commercial linkage. City Council President Pro-Tem Hermacinski would also like to discuss using linkage funds for things other than affordable housing, like transportation and childcare. UNANIMOUS CONSENT. Council Member Quinn would like to discuss taking payment in lieu for larger developments as well. UNANIMOUS CONSENT. It was noted that there will be a future agenda item on IZ/linkage only. Council Member Bentley supports revisiting this topic, but does not support having IZ/linkage “jump to the top of the list” since there are many other things that need to be discussed. PUBLIC COMMENT: Ms. Noreen Moore stated that Council has a window to look at area median income absorption rates. Ms. Catherine Carson encouraged Council to give IZ/linkage a chance to work and have an affect. Further YVHA questions to be discussed: 1. Reaffirm the list of roles and responsibilities. Council will go through this list in the future. 2. What is the geographic scope of using funds….within the City limits versus Routt County, or the Urban Growth Boundary? 3. What mechanism will the City consider for disbursement of funds for projects, RFP….? Council feels that this can work both ways. 4. Development process and fee for single point deed restriction administration. City Council President Antonucci noted that the rest of the questions will be forwarded to Council and staff and there will be another worksession in the spring. Ms. Howell stated that she appreciates that City Council has addressed some of the questions. City Council President Pro-Tem Hermacinski also noted the need to discuss the Fish Creek Mobile Home Park conversion process. Council Member Ivancie requested that previous minutes be provided to the new Council members so they can review how the previous Council came to its decisions. Future discussion to also include rental versus ownership and seasonal housing. At this time, Council heard Council Member Reports. 3.) Geothermal Development request for information to the Governor’s Energy Office. UNANIMOUS CONSENT: Staff to move forward with an application to the Governor’s Office of Energy to investigate possible geothermal opportunities at Howelsen Hill for the Ice Arena and beyond. At this time, Council heard the remainder of the Staff Reports. OLD BUSINESS 12. Minutes a. Regular Meeting 2008-04, February 5, 2008. b. Regular Meeting 2008-05, February 12, 2008. c. Special Meeting SP-2008-02, February 16, 2008. d. Regular Meeting 2008-06, February 19, 2008. City Council President Pro-Tem Hermacinski asked that staff check on the February 5, 2008 minutes whether Council Member Magill or Myller opposed the Atmos Energy increase. She also noted that at the February 16, 2008 Retreat the Executive Session recessed at 10:45am and Council Member Ivancie made the motion to go into the Executive Session. MOTION: City Council President Pro-Tem Hermacinski moved and Council Member Ivancie seconded to approve the February 5, 12, 16 and 19, 2008 City Council minutes as amended. The motion carried 7/0. At this time, Council heard agenda review. 13. Council Follow-Up There was no discussion on this item. ADJOURNMENT MOTION: Council Member Ivancie moved and Council Member Myller seconded to adjourn Regular Meeting 2008-07 at approximately 9:08pm. The motion carried 7/0. MINUTES PREPARED AND RESPECTFULLY SUBMITTED BY: Julie Franklin Julie Franklin, CMC Deputy City Clerk REVIEWED AND RESPECTFULLY SUBMITTED BY: Julie Jordan Julie Jordan, MMC City Clerk APPROVED THIS 1st DAY OF April , 2008. STEAMBOAT SPRINGS CITY COUNCIL MINUTES REGULAR MEETING 2008-03 March 4, 2008 15