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HomeMy WebLinkAboutMinutes 11/18/13 SPECIAL MEETING November 18, 2013 Present: Sara Fisher Chairman Jill Ryan Commissioner Kathy Chandler-Henry Commissioner Keith Montag County Manager Bryan Treu County Attorney Teak Simonton Clerk to the Board Kathy Scriver Deputy Clerk to the Board This being a scheduled Public Hearing,the following items were presented to the Board of County Commissioners for their consideration: 2014 Budget Presentation Public Meeting Keith Montag, County Manager John Lewis and Tom Hyatt,Finance DISCUSSION: Chairman Fisher introduced the day's presentation and thanked the directors and elected officials for their work on transparency and ownership of the process. Keith Montag, county manager also thanked everyone. He indicated that the official adoption would take place on December 10,2013. He spoke about the Board setting the direction,the strategies and policies. These priorities needed to be supported by the budget. He highlighted the strategic plan including: • Quality Services • Social Investment • Economic Vitality • Sustainable Communities • Environmental Stewardship As the directors and elected officials built their budget they were encouraged to use these strategic guidelines. Highlights of investments included facilitation of expanded air service, additional resources to meet human service's needs, creation of environmental sustainability function, administration of community grant function and support for the 75th annual Fair and Rodeo. Challenges included loss of revenues,but these would be offset by increased sales tax revenues. Other sources of revenue were not rebounding as quickly as hoped and interest earnings were significantly lower. John Lewis spoke about projections through 2018. Decisions made today would impact the county for years. Five year forecasts were important. The Financial Advisory Board helped greatly. This board confirmed the need to hold expenses at the current levels. As property taxes increased the financial situation would improve. Due to better than expected assessed valuations there could be an additional$375,000-$400,000 realized. The Assessor's office was still working on the exact numbers. Commissioner Ryan asked the difference between the actual and budgeted amounts. Mr. Lewis stated that this difference was indeed 3%to the benefit of the budget, in a positive direction. Chairman Fisher asked Mr. Lewis to define TIF,tax incremental financing. Mr. Lewis stated that this was allowed a number of years ago for blighted areas in municipalities. The theory behind these was that they would encourage re-development,and property tax revenues would go to the municipality and developer,not to the county. From the county pocket book perspective, it allowed towns to say areas were blighted,and that sales tax generated from re-development would offset losses in property taxes re- directed. With re-development,the increased property values from redeveloped property went to the towns and developers. Studies have not proven to be correct that county revenues stand to be increased with these types of 1 11/18/2013 situations. There were other costs, such as new employee services that were not covered by this type of financing. Studies have also shown that 90%of such developments would have occurred regardless of Tax Incremental Financing provisions. Tom Hyatt spoke about the 2014 assumptions. Projections for sales tax to increase by 8%in 2014,based on better than expected results in 2013 and 2012. Licenses,permits and fees to decrease$149,000 based on lower property taxes. John Lewis stated that the Treasurer,Karen Sheaffer worked with Cutwater Investments to get as much interest income was as positive as it could be. Chairman Fisher asked Ms. Sheaffer to speak to the issue. Ms. Sheaffer stated that years ago interest rates were 5%and in the past short term interest earnings were possible. These payments were remitted at the end of each month. Since 2008, she had been told that interest rates would improve,but this had not happened. Mr.Montag spoke about the annual meetings with the directors, elected officials and their teams. He was proud of what they did every year in following the guidelines which helped the overall budget process.He believed the process was much less stressful. He was pleased to report that the budgets presented held the line,which was tough to do while continuing to provide the same quality of services. Some funds had been set aside for the"Lean Process".The 2014 General Fund was at a break even. They allowed for a slight increase in operational increases to keep up with inflation. The grant program was under way and the money would be coming out of the reserves. Mr. Lewis stated that the property values had bottomed out. Mark Chapin spoke about trends in assessed valuations. He stated that the next appraisal increase was expected in 2016. These assessments would be based on values from 2014. The market seemed to be back around 2004-2005 in value and nowhere near the growth that occurred in 2008. Mr. Hyatt spoke about the core costs beyond 2014. The US economy was growing at a rate of 2.8%which was a little low. The real estate rate was improving slightly. The unemployment rate was improving and there had been a steady progress in terms of employment. Any reductions in federal funding would be offset by reducing the programs. The FTEs dropped from 318 to 237 in 2014. Mr. Lewis spoke about the Sheriff's Office need for detention officers which had an impact on the public safety fund. Most departments looking for a supplemental bring grants. He stated that revenue would continue to improve. Excess revenues versus expenditures represented holding the line on expenses and department heads had salary savings,budgetary surpluses and careful spending. Chairman Fisher thanked Peter Runyon and Jon Stavney for helping hold the line during previous difficult revenue years. Mr. Lewis showed the entire county budget chart on a visual slide. Full time employees decreased from a high level of 524 in 2009,to the current number of 460. Mr. Hyatt provided information about property tax revenues. Mr. Lewis detailed the division of each property tax dollar. School districts receive 36%,Metro,Parks, Fire districts receive 29%,Towns average 10%,the county general fund 7%, CMC 6%, Libraries 4%,Health services 3%, County restricted funds 3%and the Open Space Fund 2%. Mr. Hyatt provided information about the Motor Pool Fund. There were 300 vehicles in the fleet,and they are operated 7 days a week. The fleet team had done a great job at holding down expenditures. Mr. Lewis spoke about the airport as an"airport of choice"and as a non-taxpayer funded entity. The Eagle County Air Terminal Corps managed the revenue and expenditures for the facility. Airlines were reducing capacity and were using Hubs such as Denver International Airport more than regional facilities. He commended Greg Phillips, Airport Director for his ability to get grant funds to help with important projects at the airport. Commissioner Chandler—Henry asked about flight guarantees. Mr.Phillips indicated that air service was the number one goal. The airport had been aggressive through Air Alliance to secure flights that were not necessarily full. Chairman Fisher thanked Mr. Phillips for his leadership in a tough industry. Mr. Lewis spoke about the ECO Transit Fund. Mr.Hyatt stated that the 2014 ECO Transit budget would break even, while maintaining high quality of service. The capital improvement payment on the Maintenance Service Center frees up monies to invest in a transit management system. Kelley Collier stated that it was a system which got vehicles up to date and that the assets were being well maintained, including infrastructure valley wide. 2 11/18/2013 Mr.Hyatt stated that buses traveled 1.3 million miles per year. In 2014,the expense budget was 7.2 million and revenues were expected to be 7.9 million. Mr. Hyatt spoke about the ECO Trails Fund. They had completed 33 out of 63 miles. 2014 priorities included another 2 miles of the Gypsum to Dotsero Phase and Avon to Eagle Vail. 10%of the revenue received by ECO Transit is used for ECO Trails. Mr. Lewis spoke about housing and specifically the Augustana Castle Peak Senior Housing project. Ms. Klostermann tried to buy real estate at good prices to provide as much affordable housing as possible. This fund operated more efficiently with fewer full time employees than in 2008 with 6 full time employees versus a historic high in 2008 of 11. Ms.Klostermann stated that there have been improvements in the deed restricted housing stock. Commissioner Chandler—Henry clarified that the Castle Peak Senior Care facility would be an Augustana Health Project which would be funded by many stakeholders throughout the county,not just Eagle County. Chairman Fisher commended the Housing Department's approach to affordable housing help for county residents. During the downturn this department was even more helpful to people who were having difficulty. Mr. Hyatt spoke about the Solid Waste Recycling Fund. The amount of trash processed was 62,000 tons each year and recycling handles about 6 tons. The entire operation was funded by the landfill. Ken Whitehead spoke about dual versus single stream recycling. Single stream meant all materials went to curbside in one box and sorted at the facility. Dual stream was preferable where fiber stream was separate from the comingled items such as bottles and cans. This allowed more revenue as well.True recycling rate was higher with dual stream. He encouraged people to recycle. Eagle County has the lowest tipping fee in the region. County decisions were paying off for county taxpayers. Mr.Hyatt spoke about the Health and Human Services fund. 2014 strategic initiatives included Health Center Implementation, Community health improvement plan,Medicaid Expansion,Health Coverage Guides, Healthy Aging,Healthy Equity,Child well-being,Community based prevention programs, revenue generation and private and public partnerships. Mr. Hyatt spoke about the Road and Bridge Fund. This fund would experience another 8%decrease in property tax revenues. This department operated very efficiently and reserves continued to increase. Gordon Adams shared information on Intergovernmental agreements with neighboring counties and municipalities. These arrangements worked out very well. Chairman Fisher thanked him. Mr. Lewis spoke about the Open Space Fund. The fund was approved by the voters. In the last two years there were over 10 transactions in the amount of 17.5 million, included over 12 million of grant and partner funding. 6500 acres, 7.5 miles of river frontage and 6.1 miles of hiking trails had been acquired. Toby Sprunk spoke to the board. They had closed many deals and protected over 10,000 acres of land. Commissioner Chandler—Henry commended Mr. Sprunk on his work. Commissioner Ryan also thanked Mr. Sprunk for his work leveraging the Open Space dollars. Mr. Lewis summarized the All Funds Financial situation. He thanked Robbie Arndt for her hard work with the logistics of the overall budgets. Chairman Fisher thanked the entire Finance Department for their hard work and commitment. Mr.Montag summarized that through many people's hard work and department's sacrifices there was a very healthy 2014 budget. It was important to return a good investment to the taxpayers in services provided. He thanked everyone. Chairman Fisher thanked Mr.Montag and all of his team for taking the budget seriously for the operation and its constituents. LUR 4476 Retail Marijuana Regulation Amendment Scot Hunn,Planning Bryan Treu, County Attorney Note: Tabled from 10/29/13 Action: The purpose of this Land Use Amendment is to amend the Eagle County Land Use Regulations, specifically Article II-Definitions,and Article III-Zone Districts, Eagle County 3 11/18/2013 Land Use Regulations,to allow for the regulated conduct of"Retail Marijuana Businesses" in the same commercially zoned locations that currently permit the location of"Medical Marijuana Businesses" as depicted on maps approved by Eagle County. Location: Unincorporated Eagle County MEMORANDUM To: Board of County Commissioners From: Bryan Treu, County Attorney Scot Hunn, Senior Planner Date: November 18, 2013 Re: Update—Retail Marijuana Business Text Amendment,File No.LUR-4476 At their regular meeting of October 29, 2013,the Board of County Commissioners considered a text amendment to the Eagle County Land Use Regulations (ECLURs) for the specific purpose of defining "Retail Marijuana Businesses", and including"Retail Marijuana Businesses" as a `by-right' use in the Commercial General (CG) and Commercial Limited(CL)Zone Districts. At that hearing, the Board reviewed the proposed text amendment language and staff report, inclusive of maps showing where Medical Marijuana Businesses are currently permitted to operate; took public comment, and; deliberated before continuing the hearing. Although public comment has been closed, the Board did invite additional information to be submitted. Since the hearing on October 29`h, staff has received a limited amount of additional public input (attached). Staff has prepared a decision making matrix to aid the Board with further deliberations and action on the matter (attached). DECISION MAKING MATRIX—RETAIL MARIJUANA TEXT AMENDMENT Should RMJ be allowed in unincorporated Eagle County? If yes, answer 1-10. If no, answer 5-10: 1. Should the proposed 200 foot buffers be modified? 2. Should specific areas(i.e.Wendy's location)be eliminated? 3. Should there be a buffer between RMJ businesses? Should there otherwise be a cap on the#of RMJ businesses? 4. Should existing MMJ dispensaries be allowed to sell RMJ? 5. Should cultivation be allowed in commercial zone districts? 6. Should cultivation be also allowed in or restricted to Resource and Ag zone districts? 7. Should cultivation be allowed by Special Use or Limited Review? 8. Should product manufacturing and testing be allowed in Eagle County? If so,what zone districts? 4 11/18/2013 9. Should regulations define and address smoking clubs? 10. Any other conditions for consideration? DISCUSSION: Mr.Treu spoke about the topics discussed at the last meeting. Staff provided the board with a matrix that included 10 questions to help focus the discussion and give staff some direction. Chairman Fisher spoke about question number 2 in the matrix concerning the commercial zone districts in Edwards. Commissioner Chandler-Henry wondered if it would be possible to modify the buffer in Edwards near Wendy's and Battle Mountain High School. Chairman Fisher believed the board could exclude certain areas and didn't think that excluding the parcel would upset anyone. Commissioner Ryan stated that she was prepared to vote"yes"that it should be allowed because Eagle County residents wanted it and research indicated that approval of medical marijuana did not increase use in teens and in some cases could decrease it. She spoke about a letter received from Superintendent Jason Glass requesting the zoning near high schools be changed to 500 ft. and she supported the request in the Wendy's/Edwards area. Commissioner Chandler-Henry believed that it made sense but it was important that marijuana not be easy access to high school kids. Chairman Fisher believed it was important to set the right message. She asked Commissioner Chandler- Henry if she was comfortable with allowing the sale of retail marijuana in unincorporated Eagle County and the board proceeding forward. Commissioner Chandler-Henry stated that the county voted for recreational marijuana in 2012. Amendment 64 allowed local governments to have control over how they implemented the regulations. ALL of the precincts in Eagle County except for one voted in favor. She believed it was important to honor the voters. This was an opportunity to put in some reasonable regulations to protect public health and safety. She supported free market and wanted to stay from the black market. She proposed a transaction fee that would go to a local non- profit that would educate parents, students and schools with regards to retail marijuana. She was prepared to vote yes. Chairman Fisher spoke about addictions and her concerns with pot. The regulations recommended by staff and the county attorney were a sensible way to allow retail shops in the area. She concurred with Commissioner Chandler-Henry and thought there being a transaction fee. She believed it was vitally important to commit as a community to protect young people under 18 from acquiring marijuana. The pot of this day was intentionally modified for the high, not the health factor. She was concerned and wanted to slow things down. She was opposed to opening the county up to the retail marijuana as a business. Commissioner Ryan spoke about the data she provided at the last meeting from the Healthy Kids Colorado Survey. Research showed that in the states that had legalized medical marijuana the rate of use by youth was not increasing. She believed regulation could be a positive thing. Providing legal access could help the county see a reduction in the black market. Her standpoint was that regulation of the industry was the right way to go. Chairman Fisher appreciated the information from the studies. She spoke about the High Intensity Drug Taskforce findings that found a significant increase in use. She felt ti was important to consider what the use did to young people and developing brains. She believed the black market would continue to exist. She wanted to go through the matrix and discuss the other considerations. Mr.Treu believed the 500 ft.buffer from high schools made sense. Chairman Fisher asked the question whether there was a buffer between retail marijuana and medical marijuana shops. Mr. Treu stated that there was not a buffer between the businesses. Mr. Hunn stated that a 200 ft.buffer would not affect the existing business in Eagle Vail. Mr. Treu stated that Amendment 64 allowed the board put a number cap on the number of businesses or the number could be based on the population. Mr. Hunn stated that there were currently two shops in Eagle Vail. A 200 ft.buffer would allow several businesses in Eagle Vail and in Edwards. 5 11/18/2013 Chairman Fisher suggested putting a cap on the number of potential businesses and a buffer between the marijuana businesses. Mr. Treu clarified that the current buffer for medical marijuana was 200 ft. from residences but did not include residences in mixed use development above commercial activities. Commissioner Ryan believed it was important to let the free market decide. She would not support any additional buffers or a cap. Commissioner Chandler-Henry believed there were limiting factors and she supported free market. She would not be in favor of a cap but had mixed feelings about 200 ft.buffer. Chairman Fisher asked about the dual licensing. Mr.Treu stated that local jurisdictions could allow existing medical marijuana business to sell retail marijuana. The board could not require one or the other. Commissioner Chandler-Henry and Commissioner Ryan agreed that the medicinal business were equipped to sell both and should have the option. Chairman Fisher supported free market but the county was not always made aware of new businesses. She believed that putting a cap on the number of business licenses was important. Mr.Treu stated that the current distance between the existing dispensaries in Eagle Vail was approx. 1,100 ft. and in Edwards, approx. 700 ft. Commissioner Chandler-Henry believed the business were pretty limited now but would support a 200 ft. buffer. Chairman Fisher stated that she supported the current distances between business, 1,100-1,200 ft. in Eagle Vail and a minimum of 750 ft. in Edwards. She also wished to put a cap on the number of business based on the current population. She asked if there was a cap on the number of plants could be grown for retail. Mr.Treu stated 70%or they could buy from a licensed grower. Commissioner Ryan asked how many dispensaries there were currently in Eagle County. Mr. Hunn stated that there were four in unincorporated Eagle County and one in the town of Eagle;two had issues with odor. If a business was not able to mitigate the odors issues,the county had the ability to not renew the license. Mr.Treu believed the county had some control. Commissioner Chandler-Henry believed the Planning Commission suggested limiting cultivation to resource,resource limited, and ag residential. Mr. Treu stated that if the county did not renew the license the state could shut them down. Chairman Fisher wondered who would be doing the enforcement. Mr. Hunn stated that he would from a zoning perspective. Mr.Treu stated that the believed the state would be doing the majority of the detailed enforcement. Commissioner Chandler-Henry and Commissioner Ryan supported cultivation in commercial zone districts, agricultural and resource districts by special use permit process. She believed the process should include public comment. Chairman Fisher preferred a stricter approach. She explained the options limited review versus special use. Commissioner Chandler-Henry believed that keeping it as special use kept it in the public eye and at the policy maker level. Chairman Fisher wasn't keen about big business having grow centers in the community. She didn't want the new industry to be marijuana unless it was local property owners and agricultural producers that chose to go in this direction. She wanted to limit the amount one person could grow. Mr. Treu stated that there would be standards that the board could review and there would be some. subjective standards,compatibility standards and those types of things. Chairman Fisher asked the board to weigh in on number 8 related to manufacturing and testing. Commissioner Chandler-Henry supported the condition by the Eagle Planning Commission suggesting that product manufacturing and testing and be allowed in commercial general and commercial limited,resource limited, and agricultural residential areas through special use review. Commissioner Ryan concurred. Chairman Fisher wondered if the board was allowed to place the same kind of restrictions and requirements as for food licenses. Mr.Treu stated that the Marijuana Enforcement Division adopted regulations that address the sanitary requirements,the refrigeration requirements, etc. The regulations also addressed labeling,packaging, cleanliness, 6 11/18/2013 chemicals,best practices, etc. There were rules adopted by the state in September of this year and it was a very regulated industry from the state level. Chairman Fisher spoke about the testing. Mr.Treu stated that testing facilities would be required to have someone with a PhD or Master's Degree overseeing the testing with 3 years of clinical research background. It would be a lab type of facility. Chairman Fisher stated that the next question was related to smoking clubs. Commissioner Chandler-Henry explained her interpretation of the social clubs. She believed they should be included in the regulations. Chairman Fisher asked the board to step back and consider what it was being proposed. She did not support smoking clubs. She did not believe that smoking clubs should be considered at this time. She asked if there were any other conditions to consider. Commissioner Chandler-Henry spoke about the condition proposed by the Planning Commission that regulated the number of plants grown in a home. Mr.Treu stated that any adult could grow up to 6 plants. Caregivers could grow 18. Commissioner Chandler-Henry wanted the buffer to be the same for all areas. She proposed 500 ft. It made sense to her to have the same requirement for alcohol sales as marijuana sales. Commissioner Ryan supported the 500 ft.buffer from high schools. Chairman Fisher did not support the 500 ft.buffer and hoped the other board members would reconsider. She recommended expanding the buffers between businesses to 1,000 ft. in Eagle Vail and 699 ft. in Edwards. Commissioner Chandler-Henry supported Chairman Fisher's recommendation in the spirit of moving slow. She felt that it could be revisited in the future. Commissioner Ryan spoke about the balance and government control. She did not want to zone businesses out of existence. She wondered if it was better to restrict via numbers. Commissioner Chandler-Henry believed that made sense. Chairman Fisher expressed concern about the message being sent to people all over the world. Commissioner Ryan could compromise on limiting the number of business but did not want to limit it to the point where only the people that were in business now could operate such a business. Chairman Fisher wondered why four shops were not enough. She was challenged and asked the board members to explain why four pot shops were not enough. Commissioner Chandler-Henry stated that there was an application pending in Eagle Vail. She struggled with the idea of free market. It was an odd position as an elected official to regulate the free market. She didn't want to only allow the current businesses to be the only businesses. Chairman Fisher encouraged the board to slow down. She expressed concern for the young people and substance abuse. Commissioner Ryan proposed a limit of eight. Commissioner Chandler-Henry didn't want them all in Eagle Vail but didn't want the number to include the Roaring Fork. Mr.Treu stated that the number of licenses was a licensing issue. It was a zoning issue if the board preferred buffers between businesses. Chairman Fisher proposed a motion that recreational marijuana facilities be banned in unincorporated Eagle County. There was no second on the motion and as such the motion failed. Commissioner Ryan moved to approve retail marijuana stores in the commercial general and commercial limited zone districts as a use by right in unincorporated Eagle County with the conditions that there be a 500 ft. buffer from high schools,that medical marijuana and retail marijuana retail businesses be allowed to collocate in the same space and,that staff draft licensing regulations to limit the total number of retail marijuana stores permitted within a given area zoned and mapped for such uses;;', Commissioner Chandler-Henry seconded the motion -The motion passed by a vote of two to one with Chairman Fisher voting against. -�- Commissioner Chandler-Henry moved to apprbve:the eultiVetion,btotluet manufacturing and testing as a use by right in the commercial general and commercial litniie ozone districts and to allow the cultivation product 7 11/18/2013 manufacturing and testing as an approved special use permit use and in conforming lot sizes found in the resource, resource limited, and ag residential zone districts. Commissioner Ryan seconded the motion. The vote was declared unanimous. Commissioner Chandler-Henry moved to approve that the residential maximums of recreational marijuana defined in the review standards set forth in Section 3-330 be amended to state that the maximum amount of recreational marijuana that may be cultivated or produced in any residence, shall be those amounts as are legally allowed for 3 adults over the age of 21,pursuant to the limits set forth in Article 18, Section 16 in the Colorado Constitution. Commissioner Ryan seconded the motion. The vote was declared unanimous. Chairman Fisher proposed a motion to ban social clubs. Commissioner Chandler-Henry was in favor of banning social clubs also but wanted to more information to make sure it was done correctly. Commissioner Ryan was not in favor of banning social clubs. Chairman Fisher believed that if people want to get together and smoke, let them do it in Vail and Avon. She encouraged the board not to get off track. Mr.Treu stated that staff would work on it and see what other jurisdictions were going to do. Chairman Fisher spoke about the smoking ban in public areas and believed that there needed to be further discussion. Commissioner Ryan hoped to get some public input on social clubs which was yet to be determined would be allowed in unincorporated Eagle County. There being no further business befor - ` 1 •+ . e meeting was adjourned until November 19, 2013. { sAttest: is • 4,0" L:'vim... ` `La. Clerk to the Boar. OLOnA• Chairman 8 11/18/2013