***F O L L O W – U P*** CITY OF STEAMBOAT SPRINGS AGENDA REGULAR MEETING NO. 2008-01 TUESDAY, JANUARY 8, 2008 3:30 P.M. Antonucci called the meeting to order at 3:31pm. A. ROLL CALL (4:00pm) City Council Members present: Loui Antonucci, Cari Hermacinski, Meg Bentley, Steve Ivancie, and Walter Magill. Scott Myller arrived at 3:35pm and Jon Quinn arrived at 3:41pm. City Staff Members present: Alan Lanning, City Manager; Wendy DuBord, Deputy City Manager; Anthony B. Lettunich, City Attorney; Julie Jordan, City Clerk; Julie Franklin, Deputy City Clerk; Philo Shelton, Director of Public Works; Anja Tribble, City Clerk Staff Assistant; George Krawzoff, Director of Transportation Services; Nancy Engelken, Housing Coordinator; Winnie DelliQuadri, Grants Analyst; Joel Rae, Police Captain; Bob Robichaud, Facilities Maintenance; Bob Litzau, Interim Director of Financial Services; Linda Kakela, Director of Intergovernmental Services; Darrell Randall, Housing Manager; Tom Leeson, Director of Planning Services; Chris Wilson, Director of Parks, Recreation and Open Space; and JD Hays, Director of Public Safety. The Follow-Up Agenda is work product only, and is subject to change. For final approved information, please refer to the official City Council minutes. All documents distributed at the City Council meeting are on file in the Office of the City Clerk. Interview Planning Commission applicants. (1 1/2 hours scheduled for this interview process.) The first half of this interview process occurred on January 7, 2008. On this date City Council interviewed the following people: Warren Harner, Brian Hanlen, Sonja Macys, and Cedar Beauregard. City Council interviewed the following people for Planning Commission: Cynthia Pougiales, Herald Stout, Karen Dixon, Peter Casavecchia, Sarah Fox, Kieran O’Halloran, and William Jameson. By ballot vote City Council appointed the following: Karen Dixon to serve a regular seat until 2009, Sarah Fox to serve s regular seat until 2008 and Brian Hanlen to serve as alternate until 2009. B. REPORTS (5:30pm) 1. City Council a. Rocky Mountain Rail Association membership. Hermacinski stated that it would cost $500 to join; and rail between Craig and Steamboat Springs is on the primary list for funding. Diane Mitsch Bush, County Commissioner, was present and stated that $500 is the base level of funding. Aspen gives at a higher level and most of the money comes from the Federal Rail Authority through CDOT. MOTION: To approve joining the Rail Association at the $500 level; Ivancie/Bentley; APPROVED; Vote 7/0. b. Yampa Valley Housing Authority Appointment Committee. UNANIMOUS CONSENT: Antonucci, Ivancie and Myller to serve on the Appointment Committee. 2. Reports a. Agenda Review: 1.) SSRA agenda for January 15, 2008. 2.) City Council agenda for January 15, 2008. 3.) City Council agenda for January 22, 2008. DIRECTION: Jordan to close the above agendas. Bentley would like an update on the 3D viewing for Yampa Street and Lincoln; would like to review the design criteria for those streets; and get an update on the vacation home rental ordinance. b. Staff Reports No staff reports were provided. c. City Attorney’s Update/Report. Lettunich had no report. d. Manager’s Report: Ongoing Projects. 1.) Future of Iron Horse property. DuBord described the scenarios for use of the property. Hermacinski provided a spreadsheet with different scenarios. DuBord spoke to the option of renovating versus only doing immediate repairs and maintenance. Antonucci noted that the City spent $50-60,000 on interim housing prior to the Iron Horse. Discussion took place relative, but not limited to: the range of possibilities; contracting with a private management company to run the Iron Horse; and private/public partnerships. Ivancie feels that the immediate needs should be taken care of first, and then continue with the long-term plan. He feels that it is the responsibility of the City to provide work force housing. Hermacinski agrees with the need to provide workforce housing, but not for the whole community. She feels that private sector housing should be charged the full market rate. She supports the short term direction, revisiting annually. Quinn agrees, but suggested keeping some of the nightly rentals in the mix. Darrell Randall, Housing Manager, supports subsidizing the low rent units with the nightly rentals. He stated that a lot of maintenance is needed for the facility, but the first year will be the most expensive and then expenses will drop. PUBLIC COMMENT: Margaret Berglund encouraged Council to continue to move forward with the Iron Horse. She feels that the City needs to “walk the walk” and affordable housing is not a burden only to be bore by the development community. Towny Anderson questioned how the Iron Horse “stacks up” to other opportunities to deliver employee units, taking into consideration that the Iron Horse is in service now. He quoted the price of $186,000 a unit, and questioned if there will ever be another opportunity to get that price. He also noted that the City can turn the Iron Horse over to the Housing Authority. Steve Lewis feels that the Iron Horse is the City’s opportunity to “catch up” on affordable housing. Antonucci supports moving forward with running the Iron Horse in the same capacity, and putting money into repairs. He feels that the course of time will reveal what the Iron Horse should be used for. DuBord stated that staff can do current repairs with revenues from nightly rentals, but this is not how the City runs facilities, and the City cannot have substandard facilities. Hermacinski would like to face the life/safety issues as to not run up the cost to run the facility. DuBord stated that this can be accomplished for less money. DIRECTION: Staff to come back with a scope of work for the life/safety upgrades. Randall noted that there are no leaky roofs; however staff does want to upgrade the electrical. There are no life/safety issues right now, and they have been able to make those types of repairs without outside money. Bentley supports the City “feeding” the affordable housing, feeling that it is a fair way to participate in the community. She thinks that the Iron Horse was a “good deal” and is in a great location. She supports keeping it, fixing it up, maintaining it, and repairing the roof and electricity on larger scale. She supports upgrading some of the units right away. Quinn feels that keeping the facility full is the key. He feels that the City has an obligation to minimize the impact on the taxpayers, and supports keeping a diversity of product on the table. Ivancie feels that people who work in Steamboat Springs should be able to live here. The City has required the development community to provide housing, so the City should do the same. He would like to look at redeveloping some of the units, and improving the facility. He feels that it is important to look at the Iron Horse as an asset and an opportunity to provide housing. Magill agrees with Bentley and Quinn. He would like to continue with repairs and maintenance and look into redeveloping units into workforce units in the future. He is not ready to redevelop them all now, maybe half of them. Myller agrees with Magill. He feels that the Iron Horse was a good deal and the City needs to keep it. He is concerned that the City is “walking the talk” with taxpayer money and suggested either giving the Iron Horse to the Yampa Valley Housing Authority, or making it work with a public/private partnership. DIRECTION: Staff to come back before spring with a list of immediate repairs and maintenance items, and a list of upgrades. Staff to look into public/private partnerships. Staff to research how to satisfy transitional housing needs and then run the Iron Horse as to make the least impact on the taxpayer. 2.) Rehder Building/Steamboat Art Museum (SAM). DuBord noted that SAM would like a 25 year lease, and has asked to upgrade the interior to a “vanilla box.” This is not in this year’s budget and structural work includes replacing the roof in 2008. Discussion commended on control of other tenants in the building, office space needs, and the timeline for the tax credits. DuBord clarified that commercial office space is an option for the second story. Robert Dieckhoff, SAM, stated that they need the whole building to qualify for the tax credits, and to run a museum. Jim Cook stated that the goal of SAM is to absorb the entire building, which is a requirement of the property. They need a minimum of 10 years for a lease, however when asking for donations, people want to make sure that SAM will have possession of the property for a longer period of time. PUBLIC COMMENT: Diane Zahradnik, Antares, stated that they would like a long-term lease with the City, for 10 years or more. Bill Jameson would like to see pro forma as to how much this will cost. John Fielding feels that the City needs to support the arts, and possibly charge fair market rent and then subsidize it. GENERAL PUBLIC COMMENT Kathy Nerney requested that the City expedite her application for new liquor license. She feels that she has met with opposition from the City and voiced concern that the Jade Summit Restaurant has been without a liquor license for 60 days. Antonucci stated that this application is on next week’s agenda, and then 30 days must pass due to a State of Colorado Liquor Enforcement Division requirement. Evelyn Berge voiced concern with the Vacation Home Rental permit process, and spoke to a specific client’s trouble with an access agreement. She feels that this part of the application process is cumbersome and unfair. DIRECTION: Staff to look into this and respond to Ms. Berge. Darcy Trask, CMC instructor, spoke to workforce issues. She asked that City Council appoint a representative to attend the Northwest Colorado Workforce Center Board meetings. Steve Lewis spoke to the Yampa Valley Housing Authority, noting that their mission statement binds them from being a vocal body in the Yampa Valley. Dillon Duckworth feels that it is the responsibility of the Liquor Authority to make a decision in the Pirate’s Pub matter. He urged Council to grant Kathy Nerney a liquor license. Kevin Nerney asked Council to rescind the revocation of the Jade Summit Restaurant liquor license and allow a transfer of ownership to take place. Towny Anderson spoke to the pre-annexation agreement for the Steamboat 700 parcel and voiced concern with following the CDC. He spoke to the criteria for approval and the opportunity for City Council to lay out its expectations for an annexation. John Fielding spoke to the City facilitating affordable housing. He suggested offering money to employees to help with affordable housing. He also voiced concern with giving greater authority to the Planning Commission. Return to SAM discussion: Towny Anderson feels that the bequest terms of the property require that the City operate the entire building as a museum. He feels if this can’t be accomplished, the building should be offered to the private sector. Wayne Westphale, SAM, asked that Council take a broader view of the cost- benefit of the museum to the City, pointing out the people that it will bring to the community. He stated that he sympathizes with Antares, but it is likely that the restaurant will relocate to another store front in Steamboat Springs. Ray Zahradnik questioned if a gift shop needs to be part of being a museum. He stated that they have occupied the building for 14 years, and may not relocate if they lose the lease. Hermacinski supports providing the space rent-free to SAM, excluding the Antares space. She would like to find a way for Antares to stay in their space and co-exist with the museum. She further stated that it is important to know the actual cost of gifts to the City. Lettunich read from the property bequest, stating that the property must be designated and preserved as a historic property, and operated as a museum. If that gift fails, it shall become part of the residuary estate. He provided a history of the conversation and intention for the tenants. Quinn agrees with Hermacinski regarding Antares. In the long run if a café is proposed, it is possible that Antares could operate only at night and the museum could operate a café during the day. Myller stated that this building is a gift that the City took. He feels that Council should direct staff to move forward with option 3: to maximize the benefits and revenues to SAM and give them the entire lease. He does feel that the lease term should be revisited. Ivancie noted the need to respect the gift, and feels that in the long-term this will be an asset to the City. He thinks that a 25 year lease is a too long. Magill feels that a museum is an asset and is a gift that is maintained. He would rather see the City do a 15 year lease and allow Antares to stay for 5 years with a lease with the City. He would also like staff to investigate the renovation of the upstairs. Bentley feels that the Museum should keep the building, but feels that 25 years is too long. She supports a 5 year lease with Antares. Quinn stated that he has been swayed by Council’s comments and feels it is important to respect the wishes of the Rehders. He supports a 5 year lease with Antares. Hermacinski supports a 5 year lease as well. DIRECTION: City Attorney to look into the way tax credits are set up. Staff and SAM to provide a pro forma. Staff to move forward with a 5 year lease with Antares. SAM to eventually take over the entire building. Staff to define the term “vanilla box.” 3.) City’s Liquor Licensing Authority Review. Jordan stated that staff is recommending that there be two separate divisions, administrative and compliance. City Council would handle the administrative division, and the compliance division would be one person, rather than a committee. Appeals of decisions made by the compliance division would go to District Court. MOTION: To approve staff drafting an ordinance to change the make-up of the Liquor Authority; Ivancie/Hermacinski; APPROVED; Vote 7/0. 3. Community There were no items scheduled for this portion of the agenda. C. CONSENT CALENDAR: RESOLUTIONS AND ORDINANCES FIRST READINGS 4. MOTION: To re-appoint Assistant Fire Chief Bob Struble and Captain Joel Rae to serve as the City representatives on the Routt County Communication Advisory Board for the year 2008. Antonucci read the motion into the record. 5. MOTION: Approve submittal of a grant application to the State Historical Fund for $6,000 in grant funds to conduct a Historic Structure Assessment of structures at the Lithia Spring. Antonucci read the motion into the record. 6. RESOLUTION: A resolution adopting street names in the City of Steamboat Springs: Merriam Drive. Antonucci read the resolution title into the record. 7. RESOLUTION: A resolution adopting street names in the City of Steamboat Springs: Roosevelt Way. Antonucci read the resolution title into the record. 8. FIRST READING OF ORDINANCE: An ordinance amending the Steamboat Springs Revised Municipal Code relative to administration and the reorganization of City departments. Antonucci read the ordinance title into the record. 9. FIRST READING OF ORDINANCE: An ordinance revising the Steamboat Springs Revised Municipal Code Section-216, Chapter 25, relating to City water and sewer service rates, providing an effective date; repealing all conflicting ordinances; and setting a hearing date. Antonucci read the ordinance title into the record. 10. FIRST READING OF ORDINANCE: An ordinance vacating the perpetual easement over and across the two areas designated Open Space on the plat of the Yampa Valley Medical Center, File #536477, located in the NE ¼ of the SW ¼ of Section 21, T6N, R84W, 6th P.M., City of Steamboat Springs, Routt County, Colorado; providing an effective date and setting a hearing date. Antonucci read the ordinance title into the record. 11. FIRST READING OF ORDINANCE: An ordinance vacating a 20 foot wide utility easement, in Lot 1 of the Airport Park Industrial Subdivision; providing an effective date and setting a hearing date. Antonucci read the ordinance title into the record. MOTION: To approve items 4-11 of the Consent Calendar, a motion to re- appoint Assistant Fire Chief Bob Struble and Captain Joel Rae to serve as the City representatives on the Routt County Communication Advisory Board for the year 2008; a motion to approve submittal of a grant application to the State Historical Fund for $6,000 in grant funds to conduct a Historic Structure Assessment of structures at the Lithia Spring; a resolution adopting street names in the City of Steamboat Springs: Merriam Drive; a resolution adopting street names in the City of Steamboat Springs: Roosevelt Way; first reading of an ordinance amending the Steamboat Springs Revised Municipal Code relative to administration and the reorganization of City departments; first reading of an ordinance revising the Steamboat Springs Revised Municipal Code Section-216, Chapter 25, relating to City water and sewer service rates, providing an effective date; repealing all conflicting ordinances; and setting a hearing date; first reading of an ordinance vacating the perpetual easement over and across the two areas designated Open Space on the plat of the Yampa Valley Medical Center, File #536477, located in the NE ¼ of the SW ¼ of Section 21, T6N, R84W, 6th P.M., City of Steamboat Springs, Routt County, Colorado; providing an effective date and setting a hearing date; and first reading of an ordinance vacating a 20 foot wide utility easement, in Lot 1 of the Airport Park Industrial Subdivision; providing an effective date and setting a hearing date; Myller/Ivancie; APPROVED; Vote 7/0. D. PUBLIC HEARING: ORDINANCE SECOND READINGS There were no items scheduled for this portion of the agenda. E. PLANNING COMMISSION REPORT There was no Planning Commission representative present. F. CONSENT CALENDAR - PLANNING COMMISSION REFERRALS: 12. PROJECT: Airport Park Industrial Subdivision, Lot 1 (The Aviator) PETITION: Development and final development plan to construct 12 live/work units and self storage units totaling 93,780 square feet across 6.8 acres at the old Garden Pit site on Elk River Road, across from the Steamboat Springs Airport. This item was postponed from the November 20, 2007 meeting. This item was pulled from the Planning Consent Calendar for discussion. Quinn asked if the traffic problems had been addressed. Keenan stated that the applicant addressed the concerns. An engineer consultant reviewed the traffic flow and Public Works reviewed a letter from the consultant, and had no issues with how it was done. PUBLIC COMMENT: No one appeared for public hearing. MOTION: To approve the Airport Park development and final development plans with conditions 1-13; Hermacinski/Quinn; APPROVED; Vote 7/0. 14. PROJECT: Pine Grove Business Center, Filing 2 PETITION: Final development plan application for a 6,864 square foot office building. Hermacinski stepped down. MOTION: To approve the Pine Grove Business Center final development plan with conditions 1-2; Ivancie/Bentley; APPROVED; Vote 6/0. Hermacinski stepped down. Hermacinski returned to the meeting. 13. PROJECT: Worldwest Subdivision, Lot 2 (Curve Court Office Suites) PETITION: Final development plan application for an office building. 15. PROJECT: Howelsen Hill Parcel (Parks and Recreation Maintenance Facility Addition & Remodel) PETITION: Development plan/final development plan application to expand the existing City of Steamboat Springs Parks and Recreation Maintenance Facility. MOTION: To approve items 13 and 15 of the Planning Consent Calendar; the Worldwest Subdivision final development plan with conditions 1-5; and the Howelsen Hill parcel development and final development plan with no conditions; Ivancie/Myller; APPROVED; Vote 7/0. G. PUBLIC HEARING – PLANNING COMMISSION REFERRALS There were no items scheduled for this section of the agenda. H. OLD BUSINESS 16. Minutes a. Special Meeting SP-2007-16, December 1, 2007. b. Regular Meeting 2007-43, December 4, 2007. d. Regular Meeting 2007-45, December 18, 2007. MOTION: To approve the December 1, 4, and 18, 2007 City Council minutes; Ivancie/Bentley; APPROVED; Vote 7/0. c. Regular Meeting 2007-44, December 11, 2007. Hermacinski stepped down. MOTION: To approve the December 11, 2007 City Council minutes; Ivancie/Bentley; APPROVED; Vote 6/0. Hermacinski stepped down. Hermacinski returned to the meeting. 17. Council Follow-Up 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. Real estate acquisition of 3 parcels. b. The executive session is authorized pursuant to the following statutory sections, which apply to above topic. §26-4-402(4)(a). “The purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest;” §26-4-402(4)(b). “Conferences with an attorney for the local public body for the purposes of receiving legal advice on specific legal questions. Mere presence or participation of an attorney at an executive session of the local public body is not sufficient to satisfy the requirements of this subsection (4).” §26-4-402(4)(e). “Determining positions relative to matters that may be subject to negotiations; developing strategy for negotiations; and instructing negotiators.” MOTION: To adjourn Regular Meeting No. 2008-01 at approximately 9:00pm to go into Executive Session for the reasons set forth above; Ivancie/Bentley; APPROVED; Vote 7/0. MOTION: To come out of Executive Session and reconvene the Regular Meeting 2008-01 at approximately 9:40pm; Ivancie/Myller; APPROVED; Vote 7/0. Persons attending the Executive Session: Loui Antonucci, Cari Hermacinski, Meg Bentley, Steve Ivancie, Walter Magill, Scott Myller, Jon Quinn, Tony Lettunich, Alan Lanning, and Linda Kakela. 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. I. ADJOURNMENT MOTION: To adjourn Regular Meeting 2008-01 at approximately 9:41pm; Bentley/Quinn; APPROVED; Vote 7/0. 2