CITY OF STEAMBOAT SPRINGS REGULAR MEETING NO. 2008-08 TUESDAY, MARCH 11, 2008 MINUTES Mr. Loui Antonucci, City Council President, called Regular Meeting No. 2008-08 of the Steamboat Springs City Council to order at 7:09pm, Tuesday, March 11, 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: Alan D. Lanning, City Manager; 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; JD Hays, Director of Public Safety; Lisa Rolan, Director of Financial Services; Joel Rae, Police Captain; Chris Wilson, Director of Parks, Recreation and Open Space; Linda Kakela, Intergovernmental Services; Jason Peasley, City Planner; Tom Leeson, Director of Planning Services; Gavin McMillan, City Planner; and Colette Erickson, City Prosecutor. NOTE: All documents distributed at the City Council meeting are on file in the Office of the City Clerk. GENERAL PUBLIC COMMENT Mr. Tom Ptach, Education Fund Board, stated that the School District half cent sales tax expires December 31, 2009 and they may approach the City to get on the ballot this November for approval of a new tax. Mr. Mark Mathews, The Atira Group, provided an update on the plan for Ski Time Square. He stated that they had wanted to phase the demolition, but due to major problems in the fire suppression system, the whole site will be demolished this summer. He spoke to two concerns, the decrease in sales tax and how the site will look after demolition. He stated that the site will be in good condition, it will be secured, they will continue with erosion control, utilities will be capped off and identified, and the site will be fenced off. He stated that Ski Corp. is interested in relocating the music tent to the site, it will also be used for parking and staging, and the buildings will be utilized for emergency services training exercises. Mr. Matthews clarified that the plan to seed the area and that the parking for the Ski Time Square Condominiums will remain in place. Mr. Rick Bettger, Vacation Home Rental (VHR) owner, asked that his VHR be grandfathered and he not be required to meet the requirements of the current VHR ordinance. City Council President Antonucci noted that there will be a future agenda item to discuss the VHR ordinance with the City Attorney and Planning. Mr. Lettunich stated that he will provide an update memo. Ms. Suzie Spiro, Colorado Mountain Rentals, stated that she has identified 84 vacation homes in the City, 21 homes had VHR permits prior to the new ordinance, 43 have applied for permits, and 20 have not applied (most of these are self managed homes). She noted that the April 30, 2008 deadline is very important, and feels that it is unfair that people that are complying with the regulations are suffering the consequences. Ms. Candace Noriega voiced concern with water and feels that the water rate increase should be proportionate; the more economic you are as a user the less you pay per gallon. Ms. Evelyn Berge provided Council with a letter regarding the failure to grandfather current VHR’s and asked that Council be cognizant that the April 30, 2008 deadline is very time sensitive. Mr. Robin Craigen, Moving Mountains Chalet, stated that so far, it has turned out to be a “zero complaint” winter season. He voiced concern that the VHR requirements are not necessary and are very expensive. Mr. Bill Jameson voiced concern with the parking for Moving Mountains Chalet and noted the need to preserve neighborhoods. Mr. John Fielding thought there ought to be consideration for people who use water wisely. CITY COUNCIL REVIEW TOPIC 1. Steamboat 700 Annexation. Mr. Eastman process overview and spoke to the different definitions of the pre- annexation agreement. City Council President Antonucci stated that after last night’s Annexation Panel, he feels there are some things that could be done better, and some things that are cumbersome to staff and the applicant. He further noted three issues to address: Does the City want to go forward with this annexation? Should the City use a negotiating team? What is the role of the Planning Commission? Council Member Bentley supports hiring Mr. Jerry Dahl to negotiate for the City. Council Member Ivancie agrees. He would like the negotiating team to include Leeson, the City Manager and the City Attorney. City Council President Pro-Tem Hermacinski suggested asking Mr. Dahl what other consultants should be members of the team. She feels it may “be a good thing” for City Council to not be on the negotiating team. Council Members Antonucci and Ivancie agree. Is City Council in favor of annexation in the west Steamboat Springs area? Council Member Quinn feels that it is very important that see this development through and supports hiring Dahl for the negotiating team. He does not support City Council members being a part of the negotiation. Council Member Bentley stated that she is undecided about the annexation and spoke to the affordable housing benefit, feeling that Steamboat 700 is required by the West Steamboat Springs Area Plan to build 20% of the housing units in their proposed development as affordable housing. So the 20% they are offering does not count as “public benefit” but rather as meeting requirements of the Plan. UNANIMOUS CONSENT: To move forward with the annexation process. UNANIMOUS CONSENT: To use a negotiating team. Staff to hire Mr. Dahl and ask that he recommend who else should be one it, to include a member of Finance, Public Works, the City Attorney, and the City Manager. City Council President Pro-Tem Hermacinski cautioned against the team getting too large. Mr. Eastman questioned how to fund the annexation process. Mr. Lettunich noted that the developer could make a deposit and all employees that work on the project would bill against that. Mr. Bob Weiss, representing the applicant, stated that they really appreciated last night’s annexation panel. He stated that so far, the process and schedule has been very good. He spoke to the process for payment stating that it needs to be a financially viable program and they need to understand their financial obligation; it is not “an open checkbook”. He voiced concern that the studies could be the bottleneck in the timing and urged to get them underway as soon as they can (the studies include: fiscal impact, housing, water, and transportation/transit). He also noted the need to answer the “Steamboat 700 questions”. City Council President Pro-Tem Hermacinski supports going “full steam ahead” on the land use process and pre-application, and supports having the zoning plan by adopted simultaneous with the pre-annexation agreement. UNANIMOUS CONSENT: Planning Commission to not be involved in the pre-annexation agreement, rather concentrate on land use and planning issues. DIRECTION: Mr. Weiss to work with the negotiating team to begin the development of an annexation agreement promptly. City Council President Pro-Tem Hermacinski questioned what the City needs to do to release the applicant to move forward with the four studies. Mr. Eastman stated that Council needs to define the scope of the studies. Mr. Weiss spoke to the urban growth boundary (UGB). Mr. Eastman noted that there is a process in place that staff reviews the UGB once a year but staff can also initiate a review at any time. However there is a policy that says if the UGB is amended, the plan needs to be amended. It was suggested to bring this up on the March 17, 2008 Joint Meeting with the County Commissioners. Mr. Weiss stated that the market demand analysis will be a significant factor in deciding what their community housing plan should say. PUBLIC COMMENT: Ms. Diane Mitsch Bush, Routt County Commissioner, stated that the Commissioners should be able to discuss the UGB on March 17, 2008. Mr. John Fielding suggested paying the negotiating team out of City funds and recover it with a transfer tax. He feels it is helpful to have the Planning Commission involved because it provides another venue for public input. Mr. Towny Anderson stated that the public is very interested in the needs that are identified by the City, but asked what are expectations? What is the threshold for accepting an annexation? Mr. Steve Aigner, Community Alliance, questioned who carries out which role and supports hiring Jerry Dahl. Mr. Bill Jameson feels that if studies not show this is not a viable project, there needs to be a mechanism to stop the process. 2. Economic Development Assessment. (8:00pm) -Presented by Economic & Planning Systems Mr. Dan Guimond and Brian Duffany, Economic & Planning Systems, were present and provided a PowerPoint presentation highlighting the following: Firm background; purpose; economic development definition; economic/community development balance; household survey; community issues; large format retail; large format retail – with conditions; economic development focus; public investment priorities; demographic trends; growth of second homes; income; economic composition – total jobs; percent of new jobs: 2001-2005; wages; location neutral businesses; visitation; lodging occupancy by season; visitation/occupancy comparisons; retail sales patterns – resident spending; components of retail sales; retail development opportunities; fiscal structure; community support funding; economic summary; economic development issues and opportunities; retail development; workforce housing; seasonality/tourism; economic diversity; and acknowledgements. Discussion took place relative, but not limited to: leakage due to internet sales; regional trade center; economic development focus; second home construction; psychographic analysis; and flat skier days. Mr. Lanning spoke to how to take advantage of increased traffic and address the impact that is coming anyway. Council Member Quinn noted the need to address quality of life versus supporting the resort side of the community. He also spoke to the need to address of leakage and consider putting a property tax on the ballot. Discussion commenced on the need to maintain a healthy mix of retail in the community; and the negative affect of empty storefronts. City Council President Pro-Tem Hermacinski asked if Council would support having Mr. Lanning see if the private sector is interested in participating in a psychographic analysis. She also questioned if Council wants to capture the sales tax with a big box in west Steamboat, or drive down valley to shop at a big box. Council Member Bentley noted the need to figure out what kind of mix we want and suggested not approving anymore mix use developments until all the current store fronts are full. City Council President Antonucci feels that there is a certain type of formula stores that would be good for the retail mix and the economy. UNANIMOUS CONSENT: City Manager to seek partnership for the psychographic analysis. Council Member Magill feels that Council should let the economics decide what big box stores will survive. Council Member Bentley voiced concern with taking business from small local businesses and giving to a big box store, and having sales tax revenues stay the same. PUBLIC COMMENT: Ms. Noreen Moore stated that it is important to look healthy. She spoke to the Routt County livability index and questioned at what point do we travel and which way? She noted the need to study the spending habits of second home owners. She feels that we have an opportunity to handle our economy. Mr. Keith Giglio, member of the economic livability workgroup, feels there needs to be more than a question of getting more sales tax as the driver. Mr. Bill Jameson feels that the community’s most valuable asset is its quality of life. DIRECTION: Mr. Lanning to talk to Mr. Guimond about what the next phase of the study would entail. REPORTS (9:00pm) 3. City Manager’s Report: Ongoing Projects. a.) Information on Vicious Animals and the Steamboat Springs Revised Municipal Code regulations. Council Member Magill stated that after reviewing staff’s report, it does to seem to be a major problem. Council Member Quinn would also like to address how we handle the incidents when they do occur. DIRECTION: Staff to provide an update on the off leash recreational trail program. Staff to look into increasing fees at budget time. ADJOURNMENT MOTION: Council Member Ivancie moved and City Council President Antonucci seconded to adjourn Regular Meeting 2008-08 at approximately 10:33pm. 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 2008-08 March 11, 2008 7