GUNNISON COUNCIL AGENDA MEETING IS HELD AT CITY HALL, 201 WEST VIRGINIA AVENUE

GUNNISON, COLORADO; IN THE 2ND FLOOR COUNCIL CHAMBERS

Approximate meeting time: 2 hours

TUESDAY OCTOBER 22, 2019 REGULAR SESSION 5:30 P.M.

City of Gunnison Councilmembers gather for a light meal at 5:00 P.M. in Council Chambers. No City Council activity takes place.

I. Presiding Officer Call Regular Session to Order: (silent roll call by City Clerk): II. Public Hearing - 5:30 P.M. Please see the e-packet for the public hearing format. Public Hearing to receive input on the Proposed 2020 Budget. Background: per City Charter, Council shall hold a public hearing on the proposed budget on or before November fifteenth of each year. The Public Hearing is held to consider formal public comment, if any. There is no formal requested action for Council at this time. If Council wishes to provide any direction to staff for changes to the budget, it can be done at any time prior to adoption. Staff contact: Finance Director Ben Cowan Action Requested of Council: To provide direction to Finance Director Cowan and City staff on changes or adjustments to the 2020 proposed budget. Estimated time: 30 minutes Public Hearings are the formal opportunity for the City Council to listen to the public regarding the issue at hand. Citizens giving input must identify themselves. Anonymous testimony will not be considered. In a quasi-judicial public hearing, the Council is acting in much the same capacity as a judge. The Council must limit its decision consideration to matters which are placed into evidence and are part of the public record at the hearing. Legislative and administrative public hearing include those that are a formal opportunity for Council to listen to the public regarding the issue at hand, i.e. increases in utility rates or the annual city budget. III. Citizen Input: (estimated time 3 minutes) At this agenda time, non-agenda scheduled citizens may present issues of City concern to Council on topics that are not to be considered later in the meeting. Per Colorado Open Meetings Law, no Council discussion or action will take place until a later date; unless an emergency situation is deemed to exist by the City Attorney. Each speaker has a time limit of 3 minutes to facilitate efficiency in the conduct of the meeting and to allow an equal opportunity for everyone wishing to speak. IV. Council Action Items A. Budget Work Session. Background: To provide an opportunity for Council’s direction in modification of the proposed budget. Staff contact: Finance Director Ben Cowan Action Requested of Council: Provide direction to staff to modify the 2020 Proposed Budget as deemed appropriate prior to budget adoption.

Estimated time: 15 minutes B. Approval of the October 8, 2019 Regular Session meeting minutes. Background: per City Charter, the City Clerk produces minutes of the Council actions for all regular and special session meetings. Minutes are approved or amended at the following regular session meetings and become a permanent city record. If a city councilor was not present at the meeting, they must abstain in the vote and action on approval of the minutes. Staff contact: City Clerk Erica Boucher Action Requested of Council: A motion, second and vote to approve the minutes of the October 8, 2019 Regular Session meeting.

C. Resolution No. 13, Series 2019: A Resolution of the City Council of the City of Gunnison, Colorado supporting Proposition CC, a measure to allow the state to invest revenue collected beyond current state limits for state and local transportation projects as well as K-12 education and higher education. Background: The 2019 legislative session passed HB 19-1257 and HB 19-1258. HB 1257 refers to the voters in November a single ballot question – Proposition CC – that, if passed, allows the state to permanently retain revenue in excess of the state’s TABOR limit set by Referendum C and requiring that retained revenue be distributed to public schools, higher education, and transportation/transit. HB 1258, effective only upon voter approval of Proposition CC, requires a 1/3 split to each category. Staff contact: City Clerk Erica Boucher Action Requested of Council: Introduce, read by title only, motion, and vote to pass and adopt Resolution No. 13, Series 2019. Estimated time: 5 minutes

D. Resolution No. 14, Series 2019: A Resolution of the City Council of the City of

Gunnison, Colorado, supporting proposition DD on the November 5, 2019 election ballot Background: The 2019 legislative session passed HB 19-1327. HB 1327 authorizes sports betting within the existing framework and regulatory scheme for limited gaming in Colorado. It authorizes sports betting with master licenses held only by those entities licensed to conduct limited gaming within the three host cities, and requires local voter approval in the three host cities. The licensees in the three host cities may contract with online sports betting entities. This regulatory mechanism mirrors past voter intent for limited gaming. HB 1327 also refers to the voters in November a single ballot question – Proposition DD – that, if passed, would tax future proceeds from sports betting and allocates the revenue to the Colorado State Water Plan and exempt the tax revenue from the state’s TABOR limit. Staff contact: City Clerk Erica Boucher Action Requested of Council: Introduce, read by title only, motion, and vote to pass and adopt Resolution No. 14, Series 2019. Estimated time: 5 minutes

E. Discussion on Marijuana Establishment Regulations. Background: Due to the discussion that occurred at the September 10, 2019, Regular Session meeting Council directed staff to gather information and report back on a variety of topics related to the evolving industry of retail marijuana and suggest possible next steps relating to retail marijuana in the City of Gunnison. Staff contact: City Clerk Erica Boucher

Action Requested of Council: To provide staff with direction regarding City marijuana regulations and establishments. Estimated time: 15 minutes V. Reports: Public Works Semi-Annual Report City Attorney Report City Clerk Schedule Update City Manager Strategic Projects Update and Report City Councilors with City-related meeting reports; discussion items for future Council meetings VI. Meeting Adjournment The City Council Meetings agenda is subject to change. The City Manager and City Attorney reports may include administrative items not listed. Regular Meetings and Special Meetings are recorded and action can be taken. Minutes are posted at City Hall and on the City website at www.gunnisonco.gov. Discussion Sessions are recorded; however, minutes are not produced. For further information, contact the City Clerk’s office at 970.641.8140. TO COMPLY WITH ADA REGULATIONS, PEOPLE WITH SPECIAL NEEDS ARE REQUESTED TO CONTACT THE CITY CLERK 24 HOURS BEFORE ALL MEETINGS AT 970.641.8140.

http://www.gunnisonco.gov/

PUBLIC HEARING FORMAT Tuesday, October 22, 2019, 5:30 P.M.

City Council Chambers, City Hall

201 West Virginia Avenue, Gunnison, Colorado

I. Open Public Hearing Mayor will state the date, time, location and members of Council and Staff in attendance.

II. State Reason for Public Hearing The purpose of this public hearing is to receive public input on the proposed 2020 City of

Gunnison budget.

III. Proof of Publication: City Clerk

IV. City Staff Recommendation

V. Public Comment Anyone wishing to comment please step up to the microphone and sign the sign-up

sheet for the record.

VI. Enter any letters received from the public into the record.

VII. Close Public Hearing If there are no further comments the public hearing will be closed.

CITY OF GUNNISON

NOTICE OF PUBLIC HEARING ON PROPOSED 2020 BUDGET

TO WHOM IT MAY CONCERN:

PLEASE TAKE NOTE, that a public hearing will be held at the hour of 5:30 P.M. on Tuesday, the 22nd day

of October, 2019, in the City Council Chambers, Gunnison Municipal Building, 201 West Virginia Avenue,

Gunnison, Colorado, on the Proposed 2020 Budget;

AT WHICH TIME AND PLACE you may attend and give testimony, if you so desire. Copies of the Proposed

Budget will be available in the City Finance Director’s Office in City Hall and on the City website

www.gunnisonco.gov on October 16, 2019. Written comments on the Proposed 2020 City Budget may

be submitted prior to the public hearing to: City Clerk, P.O. Box 239, Gunnison, CO 81230, hand

delivered to City Hall, Office of the City Clerk, 201 W. Virginia Avenue, Gunnison, CO, or e-mailed to the

City Clerk at eboucher@gunnisonco.gov

/s/Erica Boucher, City Clerk

http://www.gunnisonco.gov/mailto:eboucher@gunnisonco.gov

REAL ESTATE

High Mountain Ranch 1609 acres, borders National Forest on 3 sides, year around fi shing stream, 2 lakes, new steel shop, log home, 18.4 cfs water rights, 600 gpm well, excellent hay meadows and pastures, elk & deer hunting and highway access, 30 minutes from Gunnison. Priced to sell! Call Bruce at Steffens & Company Realty, Inc 719-873-1700.9/6-tfn

121 deeded acres with 3/4 mile of Antelope Creek, water rights, borders BLM, nice 3 bedroom 2 bath home, corrals, barns and sheds. Very private and 10 minutes from downtown Gunnison. Call Bruce at Steffens & Company Realty, Inc 719-873-1700.5/24-tfn

RENTALS

Working professional students: 2 bd 1 bath kitchenette, furnished, utilities paid, on bus line. 970.765.1930.10/10-10/17

Room for rent: $40/day, $275/wk, or $800/mo. 970.765.1930.10/10-10/17

VOLUNTEER OPPORTUNITIES

VOLUNTEERS NEEDED!Volunteers needed for the Gunnison Coun-cil for the Arts! Call 641-4029 to discuss your interests and our needs!1/21-tfn

Does your resume need a boost? Volunteer experience offers new skills and documents dependability. The Food Pantry needs your help providing food assistance to those-in-need. (970) 641-4156, GunnisonCountry-FoodPantry.org10/10-10/31

Colorado State Health Insurance Assistance Program (SHIP) and Gunnison County Senior Resource Offi ce are looking for volunteers to help educate, counsel, and assist Medicare patients with navigating their health insurance. If you are interested in having a meaningful impact on the lives of seniors in your community, call Eva at Region 10: (970) 765-31276/21-tfn

Gunnison Girl Scouts is looking for troop leaders. No need to be a parent. Make a difference in a girl’s life - Volunteer Today! Call Kelly at 641-0392.10/8-tfn

Homeless animals need your help! Gunnison Valley Animal Welfare League has immediate volunteer openings on our dog care team. Walk, feed, clean, and play with dogs. Shifts take approximately one hour per week. Call Nicole at 970.641.1173 and press option 4 to leave a message. Or email info@gvawl.org.7/28-tfn

Living Journeys, Cattleman’s Days Tough Enough to Wear Pink and Gunnison Valley Health Foundation are looking for volun-teers to assist driving local cancer patients to out of town treatment and appointments. Mileage reimbursement is available. If interested in being a volunteer driver, or assisting in other ways, please call Darcie (970) 349-277711/12-tfn

Gunnison Valley Mentors: GVMentors has a waiting list of young people who would like to spend time with a positive, adult role model. Males especially needed. Call Gunnison Valley Mentors at 970-641-5513.6/28-tfn

MOUNTAIN ROOTS is looking for volun-teers to teach our Cooking Matters classes! Cooking Instructors and Nutrition Educators needed. Classes are 6 weeks, with a time commitment of around 2-3 hours a week. Contact Ashley for full description- Ashley@mountainrootsfoodproject.org. Great way to give back to your community!3/29-tfn

MEETING NOTICE

MEETING NOTICE

The Board of Directors of the Upper Gunnison River Water Conservancy District will conduct the next regular meeting on Monday, October 28, 2019, beginning at 5:30 p.m. The meeting is being held at the District offi ces, 210 West Spencer, Suite B, Gunnison, and is open to the public. An agenda will be posted prior to the meeting.

Gunnison Country TimesGunnison, ColoradoPublication date of October 10, 2019

635

NOTICE TO CREDITORS

NOTICE TO CREDITORS

Estate of Mary E. Field, a/k/a Mary Esther Field, a/k/a Mary Field/ a/k/a Mary Ester Field, Deceased, Case Number 2019 PR

30025

All persons having claims against the above-named estate are required to present them to the Personal Representative or to District Court of Gunnison County, Colorado on or before January 31, 2020, or the claims may be forever barred.

Thomas G. Field, Personal Representative20500 North 1st StreetRaymond, NE 68428

Gunnison Country TimesGunnison, ColoradoPublication dates of September 26, October 3, 10, 2019

629

PUBLIC HEARING

CITY OF GUNNISONNOTICE OF PUBLIC HEARING ON PROPOSED 2020 BUDGET

TO WHOM IT MAY CONCERN:PLEASE TAKE NOTE, that a public hearing will be held at the hour of 5:30 P.M. on Tuesday, the 22nd day of October, 2019,in the City Council Chambers, Gunnison Municipal Building, 201 West Virginia Av-enue, Gunnison, Colorado, on the Proposed 2020 Budget;

AT WHICH TIME AND PLACE you may attend and give testimony, if you so desire. Copies of the Proposed Budget will be available in the City Finance Directors Offi ce in City Hall and on the City website www.gunnisonco.gov on October 16, 2019. Written comments on the Proposed 2020 City Budget may be submitted prior to the public hearing to: City Clerk, P.O. Box 239, Gunnison, CO 81230, hand delivered to City Hall, Offi ce of the City Clerk, 201 W. Virginia Avenue, Gunnison, CO, or e-mailed to the City Clerk at eboucher@gunnisonco.gov

/s/Erica Boucher, City Clerk

Gunnison Country TimesGunnison, ColoradoPublication dates of October 10, 17, 2019

636

PUBLIC HEARING

The Board of County Commissioners will hold a Public Hearing at the Saguache County Commissioners meeting Room located at 501 - 4th Street, Saguache, Colorado, on the following date:

TUESDAY, NOVEMBER 5, 2019 at 3 PM

to consider proposed changes to the Saguache County Land Development Code changes

To view the proposed changes BEGINNING MONDAY, SEPTEMBER 23, 2019, you may contact the Saguache County Land Use Department - PO Box 326, Saguache, CO 81149 or wmaez@saguachecounty-co.gov, or by calling 719-655-2321 or you may also view the changes on our website at www.saguachecounty.net.

Written comments will be accepted until Friday, November 1, 2019 at 3pm, and may be sent to Saguache County Land Use Department at PO Box 326, Saguache, CO 81149 or email to wmaez@saguachecoun-ty-co.gov.

By: Jason Anderson, ChairmanChairman, Saguache County Board of Commissioners

Gunnison Country TimesGunnison, ColoradoPublication dates of September 26, October 3, 10, 17, 24, 31, 2019

624

Gunnison Country TimesGunnison, ColoradoPublication date of October 10, 2019

637

WEATHER

WEEKEND FORECAST

BROUGHT TO YOU BY

UPPER GUNNISON RIVER WATER CONSERVANCY DISTRICT

Friday

Day: Sunny, with a high near 44.

Night: Mostly clear, with a low around 10.

Saturday

Day: Sunny, with a high near 58.

Night: Clear, with a low around 16.

SundayDay: Sunny, with a high near 61.

Night: Mostly clear, with a low around 20.

LAST WEEK

Date

Cres

ted

Butte

Gunn

ison

October 2 October 3 October 4 October 5 October 6 October 7 October 8

Results are for the week ending October 8, 2019.NA - Not Available M - Missing

• The next regular meeting of the UGRWCD Board is scheduled for October 28, 2019. • Blue Mesa Reservoir is currently at 87% of capacity, Taylor Park Reservoir is at 74% of capacity.• Streamflows for the Gunnison River at Gunnison: 415 cfs; Taylor Park Reservoir releases: 250 cfs• To learn more about watershed management in the Upper Gunnison Basin, please visit our website at www.ugrwcd.org.

Protecting Your Water Since 1959970.641.6065

Hi 63° 70° 72° 64° 61° 68° 68°Lo 25° 14° 18° 29° 21° 13° 16°Rain 0” 0” 0” 0” 0” 0” 0”

Hi 64° 71° 71° 64° 61° 69° 68°Lo 25° 15° 33° 28° 20° 12° 18°Rain 0” 0” 0” 0” 0” 0” 0”

A22 • LEGALS • Thursday, October 10, 2019 Gunnison Country Times

COMPLAINT NO. ITEM NO. DESCRIPTION

13-1605GPD 17730 RED BICYCLE WITH PEGS

16-2120GPD 21350 CASH - PAUL TIMEK

17-1491GPD 23119 REMINGTON 700 BOLT ACTION RIFLE - WALLACE FLECK

17-1569GPD 23156 MISC ITEMS - STEPHEN STURMS

17-1569GPD 23159 BEAD NECKLACES

17-1569GPD 23160 CD CASE "THERE'S REALLY A WOLF"

17-1569GPD 23161 BLACK BACKPACK

18-0764GPD 23821 BLACK SAMSUNG

18-0954GPD 23918 FOUND CASH

18-1084GPD 23974 HUFFY TOWN BIKE

18-1098GPD 23976 SILVER WOMANS DIAMOND RING

18-1113GPD 23981 GREEN GT MTN BIKE

18-1179GPD 24028 SPECIALIZED BLU/SIL MTN BIKE WOMANS

18-1185GPD 24014 MONGOOSE MT. BIKE

18-1242GPD 24027 WHITE GT KIDS MTN BIKE

18-1257GPD 24030 SUN TOWN BIKE

18-1269GPD 24037 VERA WANG WEDDING RING

18-1301GPD 24049 TREK MT. BIKE

18-1344GPD 24059 GRAY ZONE MTN BIKE

18-1344GPD 24060 ROADMASTER MTN BIKE WOMANS

18-1440GPD 24098 ROADMASTER MT. BIKE

18-1485GPD 24121 .22 REVOLVER

18-1495GPD 24128 RUGER, LCP II, 380 PISTOL

18-1600GPD 24205 CASH

18-1667GPD 24223 NIKON CAMERA

18-1748GPD 24258 GOLD RING GREEN STONE

18-1748GPD 24259 GOLD RING WITH FLOWERS

18-1748GPD 24260 SILVER RING

18-1754GPD 24266 SPRAY PAINTED OLDER MT. BIKE

18-1787GPD 24279 ELECTRIC BLUE BIANCHI BIKE-WHT RACK ON BACK

18-1796GPD 24288 SCHWINN TOWN BIKE

18-1833GPD 24307 BROWN SCHWINN COLLEGIATE TOWN BIKE

18-1850GPD 24314 1 RED SPECIALIZED, STUMPJUMPER EXPERT MOUNTAIN BIKE

18-1890GPD 24337 GARY FISHER MT BIKE

Items listed below are in the custody of the Gunnison Police Department and are being processed for release. The owner is either unknown or cannot be located. As provided for in the Gunnison Municipal Ordinance Number 7, Series 1992, unclaimed items will become the property of the City of Gunnison in 60 days. If you own an item listed, contact 970-641-8283 to speak with the Property Custodian about claiming your property.

UNCLAIMED PROPERTY

Gunnison Co. Realty & Auction987 Acres + Grazing Lease

'Drought proof', 4th generation cattleranch. Excellent priority water rights &

harvested hay. Located in the OhioCreek Valley apx 8 miles north of

downtown Gunnison.Offered at $5,750,000

Wilderness Streams4.6 acres in the heart of Elk Country withpicturesque view of The Castles. Private

fishing rights included and access toNational Forest land.Offered at $300,000Mt. CB Homesite

Bring your horses! At 2.47 acres, thishillside parcel has the most magnificentviews in the subdivision and is bordered

by almost 73 acres of Saddle RidgeRanch Common Pasture. Underground

utilities; only 2 miles from downtownCrested Butte. Offered at $470,000

Mindy Costanzo970.209.2300

www.CallMindy.com

2 Bedrooms, 1 Bath Rent is based on your incomeand assets. Example: If your

Gross Annual Household Income is $5,000, your rent would be

approximately $117 per month.ADA accessible units.

HEAT INCLUDED!

Affordable Housing970-641-5429

600 N. ColoradoGunnison, CO 81230

October 17, 2019

1

Memorandum

To: City Council

From: Ben Cowan

Date: 10/17/2019

Re: Budget Public Hearing

Purpose:

Section 7.3 of the City of Gunnison Municipal Home Rule Charter states:

The Council shall hold a public hearing on the proposed budget on or before November fifteenth of each year. Notice of the time and place of such hearing shall be published at least once five days or more prior to such hearings, and a copy of the proposed budget shall be made available for inspection by the public, by depositing it in the office of the Director of Finance.

The Council may at any time before final adoption of the budget, increase, or decrease, add or strike out any item in it.

Staff Comments/Recommendation:

City staff made available the 2020 Staff Proposed Budget on October 11, 2019 and presented an overview to the City Council on October 15, 2019. The Staff Proposed Budget has been made available for public inspection on the City’s website at www.GunnisonCO.gov/budget and in the Finance Department, located at 201 W. Virginia Ave., Gunnison CO 81230. Various budget work sessions will be conducted to consider input from the public and revise the proposed budget according to the Council’s direction. The Public Hearing is held to consider formal public comment, if any. There is no formal requested action for Council at this time. If Council wishes to provide any direction to staff for changes to the budget, it can be done at any time prior to adoption, according to the following schedule.

http://www.gunnisonco.gov/budgethttp://www.gunnisonco.gov/budget

October 17, 2019

2

October 17, 2019

1

Memorandum

To: City Council

From: Ben Cowan

Date: 10/17/2019

Re: Budget Work Session

Purpose:

To provide an opportunity for Council direction in modification of the proposed budget.

Staff Comments/Recommendation:

During the Budget Overview on October 15, 2019, the Council discussed several specific items.

1) Refuse Rates – The Staff Proposed Budget includes a recommended 10% increase in revenues. To break even on operations, a 24% revenue increase is required. This will need to be increased in the future to a greater extent depending on necessary accumulation of resources for capital replacement, primarily for trash trucks. Most of the trucks are fairly new and were not planned to be replaced in the near future.

Council has discussed the possibility to go ahead and ensure the fund is sustainable for 2020 at an operational level.

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2015 2016 2017 2018 2019Projected

2020Budget

Revenue Expense Available Resources

October 17, 2019

2

Currently, the refuse rates are set to $19 or $23 per month for small and large receptacles, respectively.

Staff is currently auditing the actual receptacles and evaluating the potential for an every other pickup option, so actual proposed rates will be developed for an upcoming rate ordinance. What would the Council prefer to see as a revenue estimate for 2020? 10%, 24% or some other increase?

However, as a point of reference, below is the estimated monthly customer impact of the rate changes to prevent further deficit spending.

Current 24% Increase $ Change

Small Can $19.00 $23.50 $4.50

Large Can $23.00 $28.50 $5.50

2) Pool Disinfection System – The Staff Proposed Budget includes a request to replace the pool disinfection system with an oxygen/ozone system for $132,000 to reduce the use of caustic chemicals and provide a healthier environment for patrons and reduce exposure by employees. There are a variety of references for this system including the following:

a) City of Scottsdale, AZ – 4 municipal locations

b) LA Unified School District – 26 high school and municipal pool locations

c) Queens University of Charlotte, NC – 1 indoor pool

d) Sun City Grand, Surprise, AZ – 6 pools and 5 spas

e) AquaSafe Swim Schools, Scottsdale AZ – 1 indoor pool

Traci Chandler, Aquatics Manager, reports that patrons tend to be much happier with this pool chemistry and would positively change the way the community looks at and engages in the Rec Center.

The Council discussed that the addition of this request is a new idea and was not included in the survey materials to determine the best use of parks and recreation funding. Therefore, it is hard to ascertain how the request ranks in priority with a host of other recreation requests. This request is an enhancement to an existing facility and may have the potential to increase visit days at the rec center.

Staff is requesting direction from the Council on inclusion or striking of this request.

3) Other Items - Are there any other topics of discussion requested by the Council as a result of the Public hearing, or any other changes, additions, or deletions that should be incorporated in the 2020 Budget?

Page | 1

ACTION: To be Approved 1 0 . 2 2 . 19

October 8, 2019 CITY OF GUNNISON COUNCIL 5:30P.M.

REGULAR SESSION MEETING MINUTES

The City Council Regular Session meeting was called to order at 5:30 P.M. by Mayor Jim Gelwicks

at 201 W. Virginia with Councilors Logan, Miles, Drexel, and Morrison present along with City

Attorney Kathy Fogo, City Manager Russ Forrest, Finance Director Ben Cowan, and City Clerk

Erica Boucher. Western Colorado University Liaison Liz Currie was there. Additional City staff

present were Community Development Director Anton Sinkewich, Electric Superintendent Will

Dowis, and Fire Marshal Hugo Ferchau. Dr. John Hausdoerffer, Dean of Western Colorado

University’s School of Environmental and Sustainability Center was there along with Western

ENVS students, who were prepared to present to Council. A handful of interested citizens and the

press were present. A Council quorum was present.

PUBLIC HEARING

Mayor Jim Gelwicks called the public hearing to order at 5:30 p.m., on Tuesday, October 8, 2019,

in the Council Chambers of City Hall, 201 West Virginia Avenue in Gunnison, Colorado. Present

at the hearing were Mayor Gelwicks, Councilors Logan, Miles, Drexel and Morrison, City

Manager Forrest, City Attorney Fogo, Finance Director Ben Cowan, and City Clerk Erica Boucher.

Mayor Gelwicks stated that the purpose of this public hearing was to receive input on the Transfer

of Ownership Application from Gunnison Investments LLC dba SOMA Wellness Center, 500

Highway 50, Unit 101, Gunnison, CO, 81230.

Mayor Gelwicks asked for proof of publication for this hearing from the City Clerk who confirmed

that the public hearing was published in the Gunnison Country Times, posted at the place of

business, on the City bulletin boards, and City website.

The Mayor asked for the staff report and recommendation. City Clerk Erica Boucher stated that

for this transfer of ownership the three original owners were being replaced by two new owners,

Cliff Black and Charles Feese. There is no change of location and SOMA will continue to

operate as a retail marijuana store. Gunnison Investments has met and fulfilled the criteria for a

transfer of ownership. Clerk Boucher stated the staff Findings for SOMA. They were the

following:

1. There has not been a denial of an application at the same location, on the grounds that the

reasonable requirements of the neighborhood were satisfied by the existing establishments.

SOMA Wellness Center currently operates in this location.

2. A Retail Marijuana Store, as proposed in the application, is not in violation of the zoning, fire,

building, technical, and other applicable codes of the City of Gunnison or the laws of the State of

Colorado.

3. The building where the application proposes to operate a Retail Marijuana Store does not

appear to be within 1000 feet of any public, charter, or parochial school, daycare school, center

or home, the principal campus of any college, university or seminary, or mental health facilities.

4. The needs of the neighborhood were addressed during the original licensing application

process. The City of Gunnison Police Department has not received complaints or concerns from

residents about the retail marijuana store.

5. All fees necessary for the application have been paid.

SOMA Wellness Center’s general manager Sarah Wattles and Gunnison Investments owner

Charles Feese came before Council and thanked them for considering the transfer of ownership.

Ms. Wattles confirmed that under the new ownership the daily operations will remain the same, as

will the staff. She also stated that with the new ownership, current employees will have more career

development opportunities within the organization. Ms. Wattles has worked with the company for

four years.

Mayor Gelwicks called for comments from the public. Gunnison resident Steve Schechter, from

the audience, spoke in favor of the transfer of ownership because it consists of one set of owners

buying out other set owners in the same location. The transfer of ownership for a marijuana

business should not be different from a transfer of ownership for any other kind of business, such

as a hardware store or a liquor store.

Page | 2

Mayor Gelwicks asked if the City had received any additional comments. The City Clerk stated

that the City had not received any additional comments for the record.

Mayor Gelwicks called for final comments. With no additional comments made, he closed the

public hearing at 5:35 p.m. and Council went into Regular Session.

Citizen Input:

Molly Mugglestone distributed an informational handout in support of Proposition DD to Council.

On behalf of Business for Water Stewardship, Ms. Mugglestone shared information about

Proposition DD. Proposition DD would legalize sports betting in the state of Colorado. The

licensed casinos, not individuals, would be required to pay a tax for running a sports betting

operation. The tax revenue collected from sports betting would go towards funding Colorado’s

Water Plan, which was established in 2015. The annual cost of the Water Plan is around $100

million dollars. If Proposition DD is passed, the Water Fund could receive up to $29 million dollars

from sports betting annually. Multiple revenue streams help pay for the Water Plan. The Water

Plan helps fund local efficiencies and infrastructure projects, river restoration, and general

municipality conservation measures. Ms. Mugglestone asked for a show of Council and/or

individual support for Proposition DD.

Steve Schechter, who resides at 912 N. Blvd, came before Council to express his concern about

climate change and praised 15-year old climate change activist Greta Thunberg for drawing

attention to this topic. Mr. Schechter asked why the City is looking to install a natural gas fireplace

at IOOF Park. He encouraged Council to develop new plans for IOOF and take actions that will

not add to the amount of carbon emissions in the environment.

Council Action Items:

Action on the Transfer of Ownership Application for the Retail Marijuana Store from

Gunnison Investments LLC dba SOMA Wellness Center, 500 West Highway 50 Unit 101,

Gunnison, Colorado. Councilor Morrison moved and Councilor Logan seconded the motion to

approve the Transfer of Ownership for Retail Marijuana Store License Application from Gunnison

Investments, LLC dba SOMA Wellness Center, 500 West Highway 50, Unit 101, Gunnison, CO

81230, based on staff findings.

Roll call, yes: Logan, Miles, Gelwicks, and Morrison. Motion carried.

Roll call, no: Drexel.

Report from Sister Cities. Dr. John Hausdoerffer, Dean of the School of Environment and

Sustainability at Western Colorado University came before Council to express his gratitude for the

City’s active support and partnership in creating a Sister Cities relationship with Majkhali, India.

In the 75-year history of the Sister Cities International organization, this is the first time a

partnership has been established by students. Dr. Hausdoerffer shared with Council that 11

Western ENVS students will be returning to Majkhali, India in October 2019 to advance the

relationship between Gunnison and Majkhali. The 11 students have chosen to participate in one

of four programs to further the Sister Cities partnership.

Four undergraduate students came before Council to speak about their area of focus. First, Audra

(AJ) Alvarado informed Council that she and her group are working on enhancing the connection

between Gunnison and Majkhali school-aged children through a pen pals program. The Western

students are also hoping to find ways that the students can exchange music and art with each other

in the future. Second, Jacob Taylor explained that he and his group are working on developing a

youth exchange program for junior high and early high school students. Gunnison students would

spend two weeks in India and Majkhali students would then spend two weeks in Gunnison with a

local family. Third, Shane Tulp shared that he and his group are looking at different places within

the city to develop and create a physical display of Gunnison’s relationship with Majkhali. Last

year, Western students built a water station and amphitheater in Majkhali. Lastly, Bryce Swain

and his peers are working with local Gunnison businesses to carry and sell goods made by Majkhali

women as part of their co-ops.

The intention of all of these projects is to solidify and enhance the Sister Cities relationship.

Additionally, Western students will have the opportunity to immerse themselves in a new culture,

participate in an equal exchange of ideas, and move the relationship forward by developing deep

connections with Majkhali residents and their peers.

Council thanked everyone from coming and wished the students and faculty safe and productive

travels.

Page | 3

Consent Agenda: Councilor Morrison moved and Councilor Logan seconded the motion to

approve the Consent Agenda which included approval of the September 24, 2019 Regular Session

meeting minutes and to excuse Councilor Drexel from the September 24, 2019 Regular Session

meeting.

Roll call, yes: Miles, Gelwicks, Morrison, and Logan. Motion carried.

Roll call, no: None.

Roll call, abstain: Drexel.

Ordinance No. 12, Series 2019, Second Reading: An Ordinance of the City Council of the City

of Gunnison, Colorado, amending Section 2, Table 2-3 Principal Use Table and Section 3.8 B.

Manufacturing and Production Category, 4. Exceptions, regarding Artisan Maker’s Space of the

City of Gunnison Land Development Code.

Councilor Logan introduced Ordinance No. 12, Series 2019 and asked that it be read aloud by title

only by the City Attorney. The City Attorney read Ordinance No. 12, Series 2019 aloud by title

only. Councilor Logan moved and Councilor Morrison seconded the motion to adopt Ordinance

No. 12, Series 2019 on second reading.

Community Development Director Anton Sinkewich confirmed that clarification to the definition

of “small-scale spaces” was made to the Land Development Code prior to the first reading by

including a limitation of square footage. Director Sinkewich stated that food production such as a

charcuterie would go under restaurant permitting. Mr. Sinkewich noted that no changes were made

to Ordinance No. 12, Series 2019 between first and second reading.

Roll call, yes: Gelwicks, Drexel, Morrison, Logan, and Miles. So carried.

Roll call, no: None.

Resolution No. 11, Series 2019: A resolution of the City Council of the City of Gunnison,

Colorado, appointing a representative and alternate representative to the Municipal Energy

Agency of Nebraska (MEAN) management committee and to the MEAN board of directors.

Councilor Morrison introduced Resolution No. 11, Series 2019, and asked that it be read aloud by

title only by the City Attorney. The City Attorney read Resolution No. 11, Series 2019 aloud by

title only. Councilor Morrison moved and Councilor Drexel seconded the motion to approve and

adopt Resolution No. 11, Series 2019.

Mayor Gelwicks stated that Resolution No. 11, Series 2019 is for the appointment of the City of

Gunnison’s Electric Superintendent Will Dowis to the MEAN Board of Directors and MEAN

Management Committee. MEAN requires the appointment to be made every three (3) year by

resolution. Council thanked Mr. Dowis for his service. To increase transparency, the City Clerk’s

office posts the approved MEAN Board of Director’s meeting minutes to the City of Gunnison’s

Electric webpage. City Manager Forrest stated that in an effort to keep everyone more informed

about how the City manages energy, renewables, and carbon emissions, that staff will review any

significant upcoming policy issues or questions, such as the energy portfolio, with Council prior

to a vote, if time allows.

Roll call, yes: Drexel, Morrison, Logan, Miles, and Gelwicks. So carried.

Roll call, no: None.

Resolution No. 12, Series 2019: A resolution of the City Council of the City of Gunnison,

Colorado, canceling the regular session meeting scheduled for November 26, 2019

Councilor Drexel introduced Resolution No. 12, Series 2019, and asked that it be read aloud by

title only by the City Attorney. The City Attorney read Resolution No. 12, Series 2019 aloud by

title only. Councilor Drexel moved and Councilor Morrison seconded the motion to adopt

Resolution No. 12, Series 2019.

A brief exchange occurred about a previous Council’s discussion not hold meetings when they

coincided with RE1J posted holidays in an effort to encourage people with school-aged children

to consider Council and because many families travel out of town during the holidays. It was

confirmed that a resolution was never passed stating that Council would not hold meetings during

RE1J school breaks.

Roll call, yes: Morrison, Logan, Miles, Gelwicks, and Drexel. So carried.

Roll call, no: None.

Update on Fire Station. Fire Marshal Hugo Ferchau came before Council to inform them that

the Fire Protection District and relevant partners are starting to have discussions about the

possibility of building a new fire station. Fire Marshal Ferchau stated that SGM’s facilities

inventory study from a few years ago confirmed that the fire station is in need of replacement.

There are multiple health and safety concerns, basic operational functions, and building code issues

Page | 4

that need to be addressed. A new fire station could include a larger training area, some residential

space for volunteers, and create separation between areas for living/eating and areas for

vehicles/equipment maintenance. It would be ideal to double the square footage to better protect

the $4 million dollar evaluation of equipment and have adequate room for administrative spaces.

The Fire Protection District has reserved $25,000 to match a DOLA administrative grant to start

the process of getting conceptual designs for a new firehouse. The City Manager noted two

considerations regarding a new fire station. First, there is the issue of land. There is the possibility

of creating a new garage on land, to the south, currently owned by the County and then rebuild an

administrative/residential building where the current fire station stands. A second consideration is

the issue of financing. Possible options for helping to finance a new fire station are through

property taxes or through sales tax, which would specifically direct money towards the fire station.

Further discussions about the City having a part in financing a new fire station and how that could

be done, along with other city infrastructure needs, will need to be discussed and decided upon by

the new Council.

A brief discussion occurred about the origin of the Gunnison Fire Protection District. Currently,

volunteers come from both the city and the county and with the signing of an IGA five years ago,

the District uses a combination of city and county equipment to serve the region. Councilor Miles

noted the need to secure land for expansion sooner rather than later to assist with the process of

financing a new fire station. It was mentioned that more efficiencies could exist if the District had

a few additional full-time paid employees. The Fire District also owns a piece of land across from

the Dollar Store, which is an asset for them.

Council thanked Fire Marshall Ferchau for his time.

Western liaison Liz Currie gave a brief summary of recent and up-coming Western Colorado

University events. She thanked Mayor Gelwicks for the new Ohio Avenue street signs.

Council recessed and returned from break at 6:48 p.m.

Executive Session. Mayor Gelwicks stated that the next item on the agenda is to go into an

Executive Session to discuss the performance evaluation of the City Manager and to discuss

compensation. The Mayor stated that there is no intention to take any formal action during the

Executive Session, but it is for information gathering purposes only. Councilor Logan moved to

enter into an Executive Session. Mayor Gelwicks formalized the motion that the purpose of this

Executive Session which is to conduct the City Manager’s annual review with the City Attorney

pursuant to C.R.S §24-6-402(4)(f)(I). Councilor Morrison seconded the motion.

Roll call, yes: Logan, Miles, Gelwicks, Drexel, and Morrison. So carried.

Roll call, no: None.

Council went into Executive Session at 6:50 p.m. and returned to the Regular Session meeting at

7:13 p.m.

Upon returning to the Regular Session, Council asked the City Finance Director Cowan to explain

the wage analysis process for the City Manager position. Finance Director Cowan explained the

Finance Department’s process for developing the wage analysis for all city positions. It was noted

that city manager salaries are bit outside the standardized wage analysis structure because their

salaries can be negotiated. Director Cowan explained the mathematical process and data he used

to determine the baseline 2020 salary of the city manager. Based on mathematical formulas and

statewide salary date, the city manager is eligible for a 2.15% salary increase. The proposed 2020

budget includes the city manager’s salary with the potential salary increase and negotiated benefits.

Overall, citywide salaries will increase the budget 3.1%. Further budget discussions, including

salaries, will occur on Tuesday, October 15, 2019 during the Council-Staff budget work session.

City staff and Council gave reports.

With no further business, Mayor Gelwicks adjourned the Regular Session meeting at 8:05 p.m.

Jim Gelwicks, Mayor

Attest:

Erica Boucher, City Clerk

To: City Council

From: Erica Boucher, City Clerk

Date: October 22, 2019

Subject: Resolution No. 13, Series 2019: Proposition CC – Retain State Revenue in Excess of Limit

The information below is from the League of Women Voters Ballot Issues 2019, a nonpartisan

brochure.

Proposition CC Retain State Government Revenue:

The proposal amends the Colorado statutes to:

Major Provisions:

• Allows state government to keep and spend all revenue collected each year beginning in fiscal

year 2019-20;

• Requires that those additional revenues be spent for public schools, higher education and

transportation projects instead of returned to taxpayers;

• Authorizes an annual independent audit on the money kept and spent as a result of this

proposal.

Background: The Colorado Constitution contains a provision known as TABOR (Taxpayers Bill of

Rights) that limits the amount of money the state can spend or save each year. This provision limits the

amount of annual revenue to state population growth, inflation and any voter-approved changes to the

limit. In this fiscal year 2019-20, the limit is about $15 billion. Exempt from the limit are federal

funds, cash-funded state programs, fees, etc. which are included in the state budget. This proposal

would allow the state to permanently keep the excess revenues in years when the revenue exceeds the

limit. It would require that during those years, the extra money be equally spent on public schools,

higher education and transportation. If Proposition CC fails, the excess revenue would be returned to

the taxpayers as has happened in 9 of the last 26 years. This proposal affects all money the state

collects above the revenue limit beginning with the current fiscal year. Legislative economists

estimated in June that state government would collect $310 million above the limit for this budget

year. In the 2020-21 budget year it would be about $342 million above the limit. This represents about

2% of state government revenue subject to the limit. Should these funds be returned to taxpayers, the

amount would range from $26 to $90 per taxpayer per year and double if filing jointly. The amounts

beyond 2020-21 budget year will depend on the economy and future legislative decisions. The

citizens’ right to vote on any new tax increases is protected in this proposal.

Those in favor say:

• This proposal will allow further investment in Colorado without raising taxes by allowing the

State to keep the money it already collects. Higher Education, education and transportation will benefit

from any additional revenue. These three areas are designated by legislation to receive this critical

funding.

• This proposal preserves the citizens’ right to vote on any new tax increases. Because voter

approval is required on any new tax proposals, state governments spending will remain limited. Many

counties, cities and school districts have previously adopted similar measures as in this proposal.

Those opposed say:

• This proposal will ask voters to permanently eliminate any future refunds to taxpayers as is

currently required in the state constitution and will result in a tax increase. This will cause government

to expand more rapidly.

• While education and transportation may benefit from this proposal, the legislature has not

outlined any specific projects. The legislature could shift funds to other programs in future years rather

than education and transportation.

For additional information on Proposition CC, go to the 2019 State Ballot Information Booklet (Blue

Book):

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_english_for_web.pdf

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_fiscal_notes.pdf

Action Requested of Council: Introduce, read by title only, motion, and vote to pass and adopt Resolution

No. 13, Series 2019.

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_english_for_web.pdfhttp://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_fiscal_notes.pdf

RESOLUTION NO. 13

SERIES 2019

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUNNISON, COLORADO

SUPPORTING PROPOSITION CC, A MEASURE TO ALLOW THE STATE TO INVEST

REVENUE COLLECTED BEYOND CURRENT STATE LIMITS FOR STATE AND LOCAL

TRANSPORTATION PROJECTS AS WELL AS K-12 EDUCATION AND HIGHER EDUCATION

WHEREAS, Colorado regularly ranks as the top economy in the country, but can’t invest all the money it collects for students, roads, bridges and transit because of current state spending

limits established in 1992; and

WHEREAS, Colorado ranks among the bottom states in the country for the quality of its

transportation infrastructure and K-12 public education investments; and

WHEREAS, if Proposition CC is adopted, the state will be allowed to keep and spend

annual revenue in excess of the state’s 1992 spending limits and utilize the revenue for: (A) state and local highway and transit projects; (B) public schools, and (C) public higher education; with

each of these categories receiving one-third of the authorized revenue; and

WHEREAS, Proposition CC is similar to revenue retention ballot measures already

approved in the overwhelming majority of the municipalities in Colorado; and

WHEREAS, the state estimates that the additional spending to be authorized by Proposition CC may range from $277 million to $1.2 billion in the next two state fiscal years; and

WHEREAS, nearly 25% of public roads across Colorado are rated as being in “poor” condition and almost 500 bridges have been deemed structurally deficient; and

WHEREAS, driving on roads in need of repair in Colorado costs each driver $580 per

year; and

WHEREAS, Gunnison has assessed its City streets and determined that the 35 centerline

miles of City streets require a minimum of $1.7 million dollars annually in maintenance and repair costs; and

WHEREAS, 40% of the money Prop CC raises for transportation will go to local governments under existing Highway User Tax Fund (HUTF) formulas, with municipalities

expected to receive additional HUTF disbursements which may range from $16 million to $79 million in the next two state fiscal years alone, along with the potential for additional revenue for

municipal transportation projects and programs in future years; and

WHEREAS, Colorado spends roughly $2,500 less per student than the national average,

ranking below some of the poorest states in the nation, including: Kentucky, Louisiana, New Mexico, West Virginia, and Wyoming; and

WHEREAS, the City of Gunnison recognizes the strength of its public school system and its need for a solid financial foundation beginning with Pre-K education through 12th grade; and

WHEREAS, Western Colorado University is a critical partner in developing innovative,

determined independent thinkers to advance society forward and increases economic prosperity in

the City; and

WHEREAS, the state estimates that the approval of Proposition CC may provide an additional $92 million to $439 million for investment in state education programs in the next two

years alone, with the potential for additional revenue for this purpose in the future; and

WHEREAS, in general the approval of Proposition CC will relieve the state of fiscal stress caused by the 1992 spending limit, and thus make it less likely that the state will reduce or

eliminate spending on other state services and programs of concern to Colorado municipalities; and

WHEREAS, thousands of Colorado’s business, public sector, and academic leaders agree

that an arbitrary cap preventing the state from investing with the revenue it already collects is not sound fiscal policy; and

WHEREAS, allowing the state to invest the revenue it already collects will stimulate

growth in our economy and help provide the critical services that enable all Coloradans the chance to provide for themselves and their families; and

WHEREAS, Proposition CC contains provisions for unprecedented transparency and accountability, including independent, annual, publicly available audits so Coloradans can see

where their money is going; and

WHEREAS, Proposition CC fully preserves the authority of the voters to approve new

taxes or tax rate increases at both the state and local level of government, as guaranteed under current law; and

WHEREAS, §1-45-117 (1)(b)(III) of the Colorado Fair Campaign Practices Act authorizes

the adoption of this Resolution and reporting the passage of or distributing this Resolution by

established, customary means, other than paid advertising, through which the City’s resolutions are regularly provided to the public.]

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF GUNNISON,

COLORADO:

That the Gunnison City Council officially declares its support for Proposition CC and for

the reasons set forth in this Resolution urges a YES vote on the proposition at the November 5, 2019 state election.

INTRODUCED, READ, AND ADOPTED at a regular meeting of the City Council of the City of Gunnison, Colorado on the 22nd day of October, 2019.

__________________________

Jim Gelwicks, Mayor

(SEAL):

ATTEST:

___________________________

City Clerk

To: City Council

From: Erica Boucher, City Clerk Date: October 22, 2019

Re: Resolution No. 14, Series 2019: Proposition DD, Voter Approval to Tax Sports Betting Revenue

The information below is from the League of Women Voters Ballot Issues 2019, a nonpartisan brochure.

Proposition DD: Legalization and Taxation of Sports Betting

This proposal adds language to the Colorado Revised Statutes to authorize and regulate sports betting in Colorado.

Major Provisions: • Authorizes sports betting in the state of Colorado; • Authorizes a 10% tax on the net proceeds through licensed casinos; and

• Establishes a fund to direct the revenue from the sports betting tax to help fund the State Water Plan, gambling addiction services and to regulate sports betting.

Background: In 2015, the State Water Plan was agreed to by water interests from throughout Colorado. The plan

identifies objectives and goals to address future state water needs. State law identifies the types of projects that can be funded including water storage and supply, conservation and land use, agriculture, environment

and recreation. The Colorado Water Conservation Board will oversee implementation of the plan and

approve water project grants. In 1991, Colorado voters approved the legalization of gambling limited to Central City, Black Hawk and

Cripple Creek. Gambling bets are limited to $100. In May of 2018, the US Supreme Court legalized sports betting in all states. Should this proposal pass, those 21 years of age and older and living in Colorado may

place a bet of any amount beginning in May 2020. People could place a sports bet online or through mobile

sports betting platforms operated by casinos in Colorado. If voters in Black Hawk, Central City and Cripple Creek approve, the casinos may offer sports betting in person in their cities. It is estimated that up to $29

million in tax revenue would be generated. Sports bets will be allowed on professional, collegiate, international, and Olympic sporting events as well

as certain motor sports events. Betting on high school sports events are not allowed.

Those in favor say: •Water is a scare resource in Colorado, and demand will continue to increase as the state’s population grows. Colorado’s economy and way of life, from urban cit ies to agricultural communities, will

suffer if the state cannot meet its water demands. It is critical for Colorado to fund the water plan, and a tax

paid only by casinos is a better way than a tax on the public as a whole. The tax is estimated to generate $29 million annually.

• Colorado’s Water Plan is designed to ensure that the state’s most valuable resource is protected and available for generations to come, but it requires funding. With casino tax revenue, the state will fund

important water projects, including water protection and conservation efforts, and expansion of Colorado’s

water infrastructure. • This proposal would help end black-market sports betting activities in Colorado.

Those opposed say:

• Because there are no limits on the amount of a bet, it will be easy to lose a lot of money with the

click of a button on a smart phone and may lead to a gambling addiction. There is only $130,000 annually set aside from the sports betting revenue for gambling addiction services.

• The water projects to be funded by this tax increase are completely unspecified, and thus is a blank check to the legislature. Water projects often include new dams and diversions on our rivers, which

are exorbitantly expensive and extremely environmentally damaging. • This proposal seeks to raise taxes on Coloradans to pay for the damage caused by climate change

on our water supply systems. Setting the precedent of raising taxes on working and middle-class

Coloradans to pay for the damage caused by climate change is an extreme assault on climate justice.

Additional information from CML: During the 2019 legislative session, CML supported HB 19-1327. HB 1327 authorizes sports betting within

the existing framework and regulatory scheme for limited gaming in Colorado. It authorizes sports betting with master licenses held only by those entities licensed to conduct limited gaming within the three host

cities, and requires local voter approval in the three host cities. The licensees in the three host cities may contract with online sports betting entities. This regulatory mechanism mirrors past voter intent for limited

gaming. HB 1327 also refers to the voters in November a single ballot question – Proposition DD – that, if

passed, would tax future proceeds from sports betting and allocates the revenue to the Colorado State Water Plan and exempt the tax revenue from the state’s TABOR limit.

Should Proposition DD pass, the revenue generated from sports betting will be allocated as follows. First,

the funds will go to the repayment of General Fund moneys provided for startup costs for the Division of

Gaming. Second, the revenue will fund ongoing Division of Gaming administrative expenses for sports betting. Third, six percent of the full fiscal year sports betting tax revenue will be transferred to the Hold

Harmless Fund. The Hold Harmless Fund will be distributed per the current limited gaming formula. The three gaming towns will receive a portion. Fourth, $130,000 will be allocated for the prevention, education,

and treatment of gambling addiction. Finally, the remaining portion of the revenue will be transferred to a

cash fund for State Water Plan implementation. Grants made from the cash fund will go to projects that focus on water storage, supply, water conservation, land use, agriculture, the environment and recreational

uses which all provide a municipal benefit.

For additional information on Proposition DD, go to the 2019 State Ballot Information Booklet (Blue

Book):

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_english_for_web.pdf

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_fiscal_notes.pdf

Action Requested of Council: Introduce, read by title only, motion, vote to pass and adopt Resolution No.

14, Series 2019.

http://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_english_for_web.pdfhttp://leg.colorado.gov/sites/default/files/images/lcs/2019_blue_book_fiscal_notes.pdf

RESOLUTION NO. 14

SERIES 2019

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GUNNISON,

COLORADO, SUPPORTING PROPOSITION DD, ON THE 2019 GENERAL ELECTION

BALLOT

WHEREAS, Colorado’s population is expected to nearly double by 2050 and, given

current usage, Colorado’s water supply will not keep up; and

WHEREAS, the City Council of the City of Gunnison believes that we must act now to

conserve and protect our water resources to ensure there is enough water for everyone; and

WHEREAS, Colorado’s Water Plan, which was adopted in 2015, aims to address the

critical need to conserve and protect our water resources but, to date, the state has not identified a

revenue source to help fund its share of the plan; and

WHEREAS, farms and ranches are an important part of Colorado’s heritage and our

economy and we must come up with ways to pay for storage, conservation and supply projects so

that farms and ranches have the water they need to thrive in Colorado; and

WHEREAS, programs to promote water conservation and protection are dramatically

underfunded in Colorado; and

WHEREAS, we must work to ensure Colorado’s rivers have enough water flow in the

future to support fish and wildlife and outdoor recreation like fishing and rafting; and

WHEREAS, in 2018, a U.S. Supreme Court ruling allowed all states to legalize sports

betting and, as of August of 2019, at least 10 states have done so; and

WHEREAS, a broad coalition of Republican and Democratic lawmakers, understanding

that conserving and protecting our water is a non-partisan issue and legalizing sports betting will

limit black market betting and include consumer protections for people who place sports bets and

do not fall victim to fraud or abuse voted to presented Proposition DD to voters in November 2019;

and

WHEREAS, 30 years ago, Colorado created a state lottery and has successfully used its

proceeds to pay for parks and open space through the Great Outdoors Colorado (GOCO) program;

and

WHEREAS, Proposition DD follows the GOCO model by legalizing and taxing sports

betting and using tax proceeds to help pay for projects identified as part of Colorado’s Water Plan

(up to $27.2 million), create a hold harmless fund (up to $1.7 million) for entities that currently

receive tax revenue from gambling and horse racing should they lose money as a result of sports

betting, and to pay for gambling addiction services ($130,000).

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF

GUNNISON, COLORADO:

That the Gunnison City Council officially declares its support for Proposition DD for the

purpose of protecting and conserving our water for future generations through the legalization of

sports betting in the State of Colorado.

INTRODUCED, READ, AND ADOPTED at a regular meeting of the City Council of

the City of Gunnison, Colorado on the 22nd day of October, 2019.

__________________________

Jim Gelwicks, Mayor

(SEAL):

ATTEST:

___________________________

City Clerk

To: City Council

From: City Clerk Erica Boucher

Date: October 22, 2019

Re: Discussion on Marijuana Establishment Regulations

__________________________________________________________________________________________

I. Purpose

The purpose of this agenda item is to give information back to City Council on questions that they had during

the September 10, 2019 Regular Session meeting. Council directed staff to review and report back on the

collection and use of the special marijuana tax, research other municipalities who have limited the number of

retail marijuana establishments, examine the term “neighborhood” when determining “needs and desires,”

consider enhancing the City’s notification process for public hearings, and review land use policies and zoning

related to marijuana. In addition to gathering information on these topics for Council, staff is also suggest ing

possible tools that Council can consider for managing marijuana establishments in the future as well as asking

specific questions so staff as an understanding of how to proceed.

II. State-wide Trends

A. The number of towns and cities across the state that have approved retail and/or medical marijuana

establishments grows annually; however, Kevin Bommer, the executive director of CML reported in 2019 that

less than 100 municipalities out of 272 in Colorado allow retail sales of marijuana and even fewer have medical

marijuana establishments. The trend is that some smaller, more rural municipalities are asking voters to approve

marijuana because of citizen referendums or because municipalities may be seeking a way to increase city

revenues. During this election cycle, Mead, Center, and Loveland are asking voters to approve the allowance of

marijuana establishments.

B. For more information on state trends, read the article from the Marijuana Industry Group published in

Colorado Municipalities published this month. The article concludes that the state-wide the cannabis industry

may be stabilizing (Appendix A).

III. Existing City of Gunnison Policy and Local Background Information

A. November 4, 2014 Ballot Language

i. Shall the City of Gunnison taxes be increased by $150,000.00 annually in the first full fiscal

year and by whatever amounts are raised annually thereafter through the imposition and assessment of an

additional sales tax in the amount of five percent (5%) on the sale of medical marijuana, medical marijuana

infused products, retail marijuana and retail marijuana products and an excise tax in the amount of five percent

(5%) of the cash value of the transaction on the sale by a retail marijuana cultivation facility or retail

marijuana products manufacturing facility to a licensed marijuana establishment outside the City of Gunnison,

and shall all revenues derived from such tax collected be spent to defray costs incurred in regulating the

marijuana industry, funding social, recreational, and educational programs within the community as may be

determined by the city including substance abuse prevention, education and counseling programs, and to

promote the general purposes of the City of Gunnison as a voter approved revenue change and an exception to

the revenue and spending limits of Article X, Section 20, of the Colorado Constitution?

B. Special City and Excise Tax

i. With the approval of medical and retail marijuana on the November 4, 2014 ballot, voters also

approved an additional 5% tax on marijuana sales, product manufacturing, and cultivation. As the ballot

language states, “all revenues derived from such tax collected be spent to defray costs incurred in regulating the

marijuana industry, funding social, recreational, and educational programs within the community as may be

determined by the city including substance abuse prevention, education and counseling programs, and to

promote the general purposes of the City of Gunnison…” Appendix B, page 2, lists the programs and staffing

that have been financed by the combination of the special marijuana sales tax, the special excise marijuana tax,

and the State of Colorado special marijuana tax from 2015-2018. An estimated $261,090.10 remains in the

Marijuana Mitigation Fund today. $70,000 of the $261,090.10 has been set aside for grant funding in 2020.

ii. Since 2016, the amount of special marijuana taxes that the City has collected every year has

increased. Council has heard requests from retail marijuana business owners to reduce or cease the special

marijuana tax. Business owners claim that the tax is an unfair additional financial burden on their industry. If

Council desires to adjust the special tax for marijuana, with an increase or decrease, it would need to go to a

vote of the people. Through staff’s research, it was determined that a special tax on marijuana is a very common

practice. The vast majority of municipalities that allow the sale and production of marijuana collect an

additional special marijuana tax. Percentages range from 3% to having the authority to increase up to 15%.

(Appendix C). 5% tax is a typical percentage charged by municipalities. A decrease in the collection of the

special marijuana taxes would result in a loss of revenue for funding for social, recreational, and educational

programs within the community and for substance abuse prevention, education and counseling programs.

iii. It is also important to note that the taxes seen in Appendix A, are made up of 9 unique

marijuana businesses that contributed $192,234 in regular sales taxes in 2018. 3 of the top 20 businesses in town

are marijuana establishments. Limiting the number of establishments may have an impact on the total revenue

used for general operations of the City.

C. Local Retail Marijuana Businesses

i. Since 2015, when retail establishments were first approved, four retail marijuana stores have

closed. One marijuana products infused establishment and one cultivation establishment have closed.

Currently, with the recent approval of NuVue Pharma, Gunnison has eight active retail establishment licenses,

two marijuana infused products (MIPs) and two cultivation licensed establishments.

Type of License Began Operations

Cabin Cannabis Retail Marijuana Store 2015

Cosmic Food Holdings Products Manufacturing 2018

Cosmic Green Cultivation 2016

Frosty Leaf Retail Marijuana Store 2015

Frozen Smoke Dispensary Retail Marijuana Store 2016

Hashish Hut Retail Marijuana Store 2016

MPI Inc Products Manufacturing 2017

OhmGro Cultivation 2018

Rocky Mountain Cannabis Retail Marijuana Store 2015

Roots RX Retail Marijuana Store 2015

SOMA Wellness Retail Marijuana Store 2015

NuVue Pharma Retail Marijuana Store 2020

Rocky Mountain Business

Association Retail Marijuana Store

Interest in

Gunnison

ii. A current retail establishment owner reached out to staff about putting a limit on the number

of marijuana retail establishments earlier this year. Staff suggested that he and other like-minded business

owners go before Council to express their common desire for a limit on retail establishments. That action did

not occur. Additionally, the agenda item regarding the approval of NuVue Pharma in September revealed that

some residents, especially those living along the west entryway feel that there are too many retail stores in one

area.

iii. Over the last 6 months and especially with the approval of NuVue Pharma in September,

more discussion has emerged about placing a limit on the number of retail marijuana establishments or offering

ways to manage the number of stores at Gunnison’s entryways. The two entryways of most concern are from

the west and entry to Tomichi Avenue on 11th Street from the regional airport. This entryway will be especially

important if the City chooses 11th Street to be a main corridor from the airport into town as suggested in the

comprehensive plan.

iv. Current data does not reflect lasting impacts of legalized marijuana in Gunnison, especially

on the retail side. Overall, local law enforcement has not experienced a direct increase in crime with the

legalization of marijuana. It is worth noting that based on information provided in the GCSAPP Community

Report (Appendix D) that the youth of Gunnison view their community as having a high acceptance for alcohol

and marijuana use, both are near 80%. 50% of local high school report an ease of availability to marijuana.

Underage youth caught in possession of or using marijuana within the city are fined $150.00.

IV. Issues for Council Consideration

A. Municipal Code

i. The Colorado Marijuana Laws and Regulations documents the laws and regulations

surrounding medical and retail marijuana at the state level and provides guidance for local licensing authorities;

however, the state allows local licensing municipalities to pass and enforce their own (stricter) regulations if

they choose to so do. The City of Gunnison’s marijuana laws were established by Ordinance No. 5, Series 2015.

They have not been modified since 2015. Early 2020 would be an appropriate time for Council and staff to

closely re-examine all local licensing laws to ensure that they are consistent with Colorado Revise Statutes,

Title 44. Updated state statues regarding marijuana establishments go into effect January 2020. One specific

code issue, staff would like direction for the update is regarding the difference in process for a transfer of

location of license (8.50.080) and a transfer of ownership (8.50.090) (Appendix E). Currently, a transfer of

ownership must to go before Council, but a transfer of location does not.

ii. All new licenses would still be required to go before Council. It could be written into the Code

that if an unsatisfactory background check emerges or a department head acknowledges an issue of concern

during the transfer of location or ownership process then that the applicant may be subject to a public hearing

before Council.

B. Findings of Fact F and G

i. Findings of Fact states: “The city council shall make written findings approving, approving

with conditions, or denying an application for a marijuana establishment within the city. In order to approve an

application, the council must make at least the following findings:

A. The application complies with all relevant provisions of the Colorado Medical Marijuana Code, Section

44-11-101 et seq., C.R.S., as amended, or the Colorado Retail Marijuana Code, Section 44-12-101 et seq.,

C.R.S., as amended, as applicable.

B. That the application is complete and complies with the city application requirements.

C. That the applicant has received conditional licensing from the state licensing authority.

https://www.codepublishing.com/cgi-bin/crs.pl?cite=44-11-101https://www.codepublishing.com/cgi-bin/crs.pl?cite=44-12-101

D. That the applicant has paid the application and license fees established by the city.

E. That the application complies with all relevant provisions of the city of Gunnison land development code.

F. That all testimony both in favor of or in opposition to issuance of the license sought has been considered.

G. That the council has considered the needs and desires of the neighborhood in which the licensed premises

will be located.

H. That the local background check performed by the city of Gunnison police department does not establish

any concern regarding the applicant’s ability to operate the marijuana establishment.

I. That consent/acknowledgment in writing has been received from the landlord and/or property owner as

applicable, acknowledging that the premises will be operated as a marijuana establishment and consenting

thereto.

Any conditions of approval of the application shall be set forth in writing. A city license will not be issued until

conditions of approval have been met. Any denial of an application shall be accompanied by written findings.

(Ord. 11-2018 § 1; Ord. 5-2015 § 4).”

ii. The recent public hearing for NuVue Pharma raised questions for Council regarding the

Findings of Fact. G It caused Council to ask how “neighborhood” and “needs and desires” are determined and

defined. Traditionally, the term “neighborhood” has referred to the incorporated city limits and a petition was

used to assess the “needs and desires” of a neighborhood. Both of these are carryovers from liquor licensing.

State statute does not require an applicant to show the needs and desires of the neighborhood for marijuana, but

it has been a part of the City’s marijuana licensing process.

iii. Staff may suggest that Council could consider defining “neighborhood” by a distance in feet

from the proposed establishment in all directions or a certain number of blocks out from the proposed

establishment. Collaboration with Community Development would be beneficial on this topic as they are

considering a new property boundary distance for their public hearing process. The current distance is 100 feet

of the subject property boundary.

iv. Once the term “neighborhood” is defined, Council also should give thought to how “needs

and desires” should be submitted to Council. An option to replace the petition would be for Council to rely

more on Findings of Fact F., the “testimony both in favor of or in opposition to the issuance of the license…” If

Council decides to rely more on receiving testimony, then there may need to be an expansion of public hearing

notification. Currently, state statute requires at least 10 days for notification of a public hearing.

v. Another consideration would be for Council to direct staff to remove Findings of Fact G from

the Code and rely on Findings F, especially if additional public hearing notification is required. However, a

retail marijuana establishment is a permitted use in a commercial zone; therefore, it could not be required for

council to consider the needs and desires of the neighborhood. The vast majority of commercial businesses do

not have to participate in a public hearing or receive council’s approval prior to opening up. Further, providing

additional public notice only to a marijuana business could be seen as discriminatory and an abuse of discretion.

It should also be noted that a retail marijuana store may have less traffic, nuisances, and noise impacts than

other commercial businesses that require no public hearing or testimony.

C. Land Use Policies

i. According to the Land Development Code medical centers and retail marijuana establishments

are permitted in commercial zone districts and are conditional uses in the industrial zone (all retail sale

businesses are conditional in the industrial zone). Marijuana manufacturing and cultivation establishments are

only permitted in the industrial zone. A text amendment to the Land Development Code could be made as a

method to manage the increase of retail marijuana establishments in the commercial zone (outside of required

buffers), which runs along the west and north entryways. The amendment could establish a distance regulation

that a new store cannot open up within 500 feet of an existing store. On average, if a current establishment is

located in the middle of the block this would generally lead to one retail establishment per block. An

amendment like this to the Land Development Code would limit the space available for new establishments,

especially on the west side of town and allow for may be one or two more establishments on the north side of

town.

ii. For the 11th Street consideration, from Bidwell Avenue to Gunnison Avenue, the industrial

zone is on the west side of the street and the R3 residential zone is on the east. The established residential zone

buffer prohibits marijuana facilities along 11th Street, except a couple of parcels adjacent to Rio Grande Avenue

and 11h Street.

iii. Some discussion has also occurred about removing the buffer map from the Land

Development Code. Most City staff find the inclusion of this map to be a helpful visual when discussing

marijuana establishment locations with current and potential businesses and residents. In fact, the buffer map is

a legally defined boundary to which both marijuana and non-marijuana businesses must adhere (e.g., schools).

The buffer map also shows potential businesses where retail marijuana establishments are allowed and how

close a new business would be to a marijuana establishment if they opened a business in that area. The buffer

map need to be constant in displaying acceptable and prohibited locations for retail marijuana establishments.

Removal of the buffer map from the Land Development Code has to be done by a text amendment process and

ordinance.

V. Next Steps

A. Ordinances HB-1230 and HB 1234

i. Staff will present an ordinance prohibiting home deliveries of retail and medical marijuana and

an ordinance prohibiting on-site marijuana for mobile and non-mobile facilities at the next Regular Session

meeting for first reading.

B. Gunnison Municipal Code and Land Development Code Amendments

i. Staff will present amendments to the Gunnison Municipal Code regarding marijuana to ensure

their consistency with state statutes and incorporate Council’s recommendations. Staff will return to Council

information on directives. Further review of the Land Development Code will be done to consider any text

amendments that may need to be made regarding marijuana and possibly hemp.

C. Industrial Hemp

i. Staff will present its research on the emergence of the hemp industry and its potential impacts

in the Gunnison, particularity regarding safety and extraction.

VI. Direction Requested of Council

A. Below are questions that staff would appreciate feedback on:

i. How would like Council like staff to proceed regarding the marijuana special city/excise tax?

ii. Would Council like staff to investigate the feasibility to placing a cap on retail marijuana

establishments in Gunnison? Staff does not recommend a cap. Marijuana businesses are legal, and no other

industry is capped. Further, it is believed that a cap would create an uneven playing field in the industry, and

increase administrative costs.

iii. Would Council prefer both a transfer of ownership and a transfer of location to go before

Council with a public hearing or neither one and direct staff to work administratively with applicant to achieve

approval?

iv. Staff would like to receive direction on language in Findings of Fact 8.50.050, especially

Findings F. and G. How would Council like to define “neighborhood?” Or should Findings of Fact G be

removed from the Code? Would Council like to direct staff to conduct research on additional public hearing

notification practices from across the state?

v. Should staff begin to develop a text amendment to the Land Development Code outlining

distance regulations between retail marijuana establishments?

Action Requested of Council: To provide staff with direction regarding City marijuana regulations and

establishments.

Appendix A: CML article, “Cannabis industry demonstrates signs of stabilization”

Appendix B: Special Marijuana Tax Compliance Worksheet

Appendix C: Colorado Municipality Chart

Appendix D: GCSAPP slides

Appendix E: Chapter 8.50 Marijuana Business Licensing Regulations

City of Gunnison, Colorado Marijuana Charting ReportSpecial Marijuana Tax Compliance Worksheet 10/2/2019

bmc

11/4/14 Ballot Language

Revenues 08 3120 08 3121 08 3701 08 3710 01 3116

5% Special Marijuana Sales Tax

5% Special Marijuana Excise Tax

Interest on Investments

Unrealized Gain/Loss

State of Colorado Special 

Marijuana Taxes * ANNUAL TOTAL

Oct‐15 249.24               43.60                 Nov‐15 4,236.28            109.00              Dec‐15 5,810.15            1,664.36           

10,295.67          ‐                      ‐                      ‐                      1,816.96            12,112.63          2015Jan‐16 7,037.17            2,405.69           Feb‐16 8,018.02            1,746.59           Mar‐16 10,079.84          3,121.28           Apr‐16 10,394.22          4,406.83           May‐16 11,134.69          3,523.74           Jun‐16 14,075.38          4,457.62           Jul‐16 19,751.02          4,577.91           

Aug‐16 20,082.63          4,723.77           Sep‐16 17,671.93          4,043.63           Oct‐16 15,520.60          3,802.35           Nov‐16 12,255.78          3,073.65           Dec‐16 12,735.79          2,709.60           

158,757.07       ‐                      ‐                      ‐                      42,592.66          201,349.73       2016Jan‐17 11,914.17          61.88                  35.60                  5,448.69           Feb‐17 12,238.68          101.15               41.99                  3,658.77           Mar‐17 15,296.87          128.73               (30.90)                4,842.55           Apr‐17 13,773.39          184.45               199.75               4,304.18           May‐17 15,498.65          160.34               101.63               4,643.37           Jun‐17 18,981.32          15.81                  (121.13)              6,480.90           Jul‐17 25,248.25          104.45               184.36               138.07               7,328.13           

Aug‐17 22,612.22          280.00               284.06               426.05               7,145.50           Sep‐17 22,545.76          70.22                  (256.73)              6,988.66           Oct‐17 18,363.79          279.60               (113.97)              7,077.77           Nov‐17 14,528.51          64.62                  (240.93)              4,431.86           Dec‐17 15,181.28          187.07               (130.15)              4,411.50           

206,182.89       384.45               1,722.29            49.28                 66,761.88          275,100.79       2017Jan‐18 14,980.60          210.68               85.93                  (445.33)              6,626.77           Feb‐18 13,316.51          99.87                  (69.58)                5,607.78