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HomeMy WebLinkAboutVirtual City Council Agenda Packet 07-27-20AGENDA CITY COUNCIL MEETING CITY OF WHEAT RIDGE, COLORADO July 27, 2020 7:00 p.m. This meeting will be conducted as a VIRTUAL MEETING. No members of the Council or City staff will be physically present at the Municipal building for this meeting. The public may participate in these ways: 1. Provide comment in advance at www.wheatridgespeaks.org (comment by noon on July 27, 2020 ) 2. Virtually attend and participate in the meeting through a device or phone: • Click here to join and provide public comment • Or call +1-669-900-6833 with Access Code: 968 3379 6033 3. View the meeting live or later at www.wheatridgespeaks.org, Channel 8, or YouTube Live at https://www.ci.wheatridge.co.us/view 4. Individuals who, due to technology limitations, are unable to participate in the meeting virtually (via the Zoom platform) or by calling in on the telephone may contact Danitza Sosa, Assistant to the Mayor and City Council, at 303-235-2977 by noon on the day of the meeting. Arrangements will be made for those individuals to access City Hall during the meeting to view the meeting and provide public comment if desired. These comments will be heard and seen in real time by members of Council and City staff. Individuals accessing City Hall must practice social distancing, wear a mask or other facial covering and be free of COVID-19 symptoms. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Contact the Public Information Officer at 303-235-2877 or wrpio@ci.wheatridge.co.us with as much notice as possible if you are interested in participating in a meeting and need inclusion assistance. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF MEMBERS PROCLAMATIONS AND CEREMONIES APPROVAL OF MINUTES City Council minutes of July 13, 2020 APPROVAL OF AGENDA CITY COUNCIL AGENDA: July 27, 2020 Page -2- CITIZENS’ RIGHT TO SPEAK a. Citizens may speak on any matter not on the Agenda for a maximum of 3 minutes under Citizens Right to Speak. Please speak up to be heard when directed by the Mayor. b. Public input on 2021 Budget. c. Citizens who wish to speak on a Public Hearing item or Decision, Resolution or Motion may speak when directed by the Mayor at the conclusion of the staff report for that specific agenda item. d. Citizens may comment on any agenda item in writing by noon on the day of the meeting at www.WheatRidgeSpeaks.org. Comments made on Wheat Ridge Speaks are considered part of the public record. CONSENT AGENDA PUBLIC HEARINGS AND ORDINANCES ON SECOND READING 1. Council Bill No. 12-2020 - an ordinance approving the rezoning of property located at 11700 W. 46th Avenue from Agricultural-One (A-1) to Residential-Two (R-2) 2. Council Bill No. 13-2020 - an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements 3. Council Bill No. 14-2020 - an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings ORDINANCES ON FIRST READING 4. Council Bill No. 16-2020 - an ordinance approving the disposition of excess real property held by the City adjacent to Ridge Road between Taft and Tabor Streets 5. Council Bill No. 15-2020 - an ordinance, Repealing Chapter 16, Article X "Massage Parlors" and Reenacting Regulation of Massage Businesses by Amending Chapter 11, "Licenses, Permits and Miscellaneous Business Regulations", by the Addition of a New Article X, Entitled "Massage Businesses" and Making Conforming Amendments to Chapter 2, Article V "Administrative Enforcement" and Chapter 26 "Zoning and Development” DECISIONS, RESOLUTIONS AND MOTIONS 6. Motion to accept the 2019 Financial Statements from CliftonLarsonAllen 7. Resolution No. 40-2020 - a resolution designating the municipal building main entrance as the official public notice posting location and the Jeffco Transcript as the official newspaper of general circulation for the City Publications in 2020 CITY COUNCIL AGENDA: July 27, 2020 Page -3- CITY MANAGER’S MATTERS CITY ATTORNEY’S MATTERS ELECTED OFFICIALS’ MATTERS ADJOURNMENT City Council Meeting Minutes CITY OF WHEAT RIDGE, COLORADO 7500 WEST 29TH AVENUE, MUNICIPAL BUILDING July 13, 2020 Note: This meeting was held virtually, using Zoom video-teleconferencing technology. As duly announced and publicly noticed, Council previously approved this format in order to continue with normal business and respond to the CoVid-19 Pandemic and the related public emergency orders promulgated by the President of the United States, the Governor of Colorado, and the Wheat Ridge City Council. Before calling the meeting to order, Mayor Starker stated the rules and procedures necessitated by this meeting format. Mayor Starker called the Regular City Council Meeting to order at 7:00 p.m. PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA ROLL CALL OF MEMBERS Janeece Hoppe Judy Hutchinson Zachary Urban Rachel Hultin Amanda Weaver Korey Stites Leah Dozeman Valerie Nosler Beck Also present: City Clerk, Steve Kirkpatrick; City Attorney, Gerald Dahl; City Manager, Patrick Goff; City Treasurer, Chris Miller; Administrative Services Director, Allison Scheck; Community Development Director Ken Johnstone, City Planner II, Scott Cutler; Engineering Manager, Mark Westburg; Assistant to the City Manager, Marianne Schilling; Christine Simcox, architect (for the proposed Hardi development) other staff, guests and interested citizens. PROCLAMATIONS AND CEREMONIES – None for this session. APPROVAL OF MINUTES Without objection or corrections, the City Council Minutes of June 22, 2020 and Study Session Notes for July 6, 2020 were approved as published. APPROVAL OF AGENDA Without objection or correction, the agenda stood as announced. CITIZENS’ RIGHT TO SPEAK This item began at 7:02 PM. Ihor Figlus, 9775 W. 36th. Ave., rose to ask that the Mayor and Council allow more than 3 minutes to speak. There are items on the agenda tonight that residents feel strongly about, therefore citizens should be given adequate time to speak before Council. City Council Minutes July 13, 2020 page 2 Vivian Vos, rose to say it was nice to be at City Hall. JoAnn Sorrentino, 4175 Teller St, yielded her 3 minutes to Rollie Sorrentino. Rollie Sorrentino, came to speak about proposition 2E that appeared on the ballot on November 5, 1919. That proposition addresses the zoning change approved by Council to allow “high density,” development on Upham St. Time and time again the citizens appeared at Council to oppose that zoning change ordinance, which Council passed nonetheless. Citizens obtained over 2,000 electors’ signatures on a petition to put the measure on the ballot. When the Council refuses to heed the desires of the residents, citizens took charge. More than 61% of the vote on 2E was to repeal the Zoning change. Our Council failed in its duty to listen to their constituents. Current Council should listen to their constituents, not to non-resident developers and landowners and not to City staff. Staff do not have the interests of Citizens in mind. Council does what it wants instead of listening to the residents. I am here tonight on behalf of 6.230 voters who voted to reverse the zoning change Council passed in 2019 over the objections of citizens. Please, please do not send us down the same road again. Kate Cook with LocalWorks, 4251 Kipling St., Wheat Ridge – Beginning this week LocalWorks launches its second round of local artistic activities. She announced the names of the businesses and galleries that will be involved this week. In addition, we will be offering bingo again, to win gift certificates from WR businesses. Dora and the Lost City will be the film in the next movie night. Please, visit our website. Claudia Worth, 4650 Oak St., WR. I served 12 years on City Council and have been involved in many zoning decisions. I agree with Mr. Figlus, you represent the citizens of the City, not developers or the staff. Please, join the Wheat Ridge Historical Society; check our website for upcoming events. We’re open M-F 10AM to 3PM. Guy Nahmiasch, 3650 Ward Road – called to thank the City for the recent dumpster event so that citizens could dispose of trash, especially electronics. Odarka Figlus, 10405 W. 44th Avenue. She quoted the City Clerk who said we must uphold the law with respect to petition signatures. That includes the Constitution and our right to petition the government. But we have received no guidance from you about how to collect petition signatures during the pandemic. Do not make us choose between our Constitutional Rights and our health. The City Code states that developers have no right to expect a change in zoning. Note about Wheat Ridge Speaks: Citizens may visit the Wheat Ridge Speaks website and enter written comments of up to 1,000 words on any Council agenda item. The deadline for citizens to submit comments is 12:00 Noon Mountain Time on the day of a Council session so that Council members, other elected officials and City Staff have time to review the comments before the meeting on Monday evening. City Council Minutes July 13, 2020 page 3 The City Clerk’s Office transcribes those Wheat Ridge Speaks comments into these minutes, placing each comment along with the record for that agenda item, including items that include a public hearing (verbatim, if the comments do not contain lascivious language or unlawful hate speech). The following comment appeared in Wheat Ridge Speaks for this Council Meeting that does not related to any item on the agenda: We noticed the increased noise from the Miller/Coors can recycling plant almost immediately. Specifically the additions to the plant in 2018/2019. It has increased by a large margin since we moved to Skyline Estates, Arvada in 2003. We are further away from the plant than our neighbors in Wheat Ridge. I honestly don't know how they tolerate the noise within a 1-2 block proximity. When walking through the area or sleeping with a window open the loud whooshing sound is very distinct. We believe in being good neighbors. This includes the surrounding businesses. Something needed to be done at the time of installation to alleviate the obvious increased noise level. This situation was not addressed. I am hopeful that with the City Councils assistance and the community awareness present at Miller/Coors this can be corrected. Thank you 07/11/2020 1:42 pm Tom Saylor 11074 W 54th ln Arvada, 80002 End of comments entered in Wheat Ridge Speaks for issues not on the agenda. CONSENT AGENDA There were no items this week. PUBLIC HEARINGS AND ORDINANCES ON SECOND READING Discussion began at approximately 7:22 PM 1. Council Bill No. 11-2020 - An Ordinance approving the rezoning of property located at 9800 W. 38th Avenue from Residential-One (R-1) to Planned Residential Development (PRD) with an Outline Development Plan. Councilmember Weaver introduced Council Bill 11-2020. The applicant is requesting approval of a zone change from Residential-One (R-1) to Planned Residential Development (PRD) with an Outline Development Plan for property located at 9800 W. 38th Avenue (southeast corner of W. 38th Avenue and Johnson Street). The purpose of this request is to prepare the property for the development of four (4) single-family homes and three (3) duplexes, for a total of ten (10) dwelling units. Mayor Starker re-opened the public hearing at 7:24 PM. City Council Minutes July 13, 2020 page 4 The Mayor reviewed the procedures. A total of 13 people in chambers came to address this issue. There were 6 who wanted to speak through the Zoom format. The Mayor swore in the 19 speakers. Because a valid protest against this zoning change has been filed, passage of the motion to change the zoning will require a super-majority of at least 6 aye votes. City Clerk Steve Kirkpatrick assigned Ordinance No. 1691 Staff Presentation by Scott Cutler, Planner II with the City of Wheat Ridge: The Director gave a detailed presentation and incorporated into the public record the files related to this case, including but not limited to the proceedings of the Planning Commission, public comments and the presentation to Council. Mr. Cutler played two videos, one produced by City staff and one by the developer. The videos appear in the video record of this meeting, which by this reference are made a part of this public record. Mr. Cutler also referred extensively to the staff report and minutes of the Planning Commission, which by this reference are made a part of this public record. Public Comment Carol Mathews, 3851 Hoyt St., Wheat Ridge – I was one of 26 residents who worked on a new community development plan in 2018. Neighborhoods are the character of Wheat Ridge, not cookie-cutter developments like contiguous suburbs. High-density housing is not part of the Wheat Ridge community culture. The NRS study included a recommendation a neighborhood outreach plan, which has only just launched. Denial of this proposed development would validate the promises made in the in the NRS, to involve the neighbors in these decisions. The neighborhoods nearby are compatible with the character or Wheat Ridge. The proposed development would be a blight to the neighborhood, and damage people’s quality of life. Vote no on this PRD zoning change. Lynn Martinelli, 4240 Upham St. – I was part of the zone change disruption that appeared on the ballot last year. I am opposed to this zoning change. The attempt at neighborhood busting should be disallowed. Elaine Novak, 9798 W. 38th Avenue. I live across the street from this proposed development. There is no on-street parking along 38th Ave. When I have visitors, I only have 2 off-street parking spaces, so during family gatherings people have to park along adjacent side streets. I oppose this change because it would create more parking problems and safety issues. Margaret Nelson – I am opposed to this development because PRD zoning here makes no sense. The neighbors do not want it. The Wheat Ridge citizens do not want it. The developer knew this was zoned R-1 when they bought the property. Instead of this City Council Minutes July 13, 2020 page 5 PRD the developer should ask for an R-2 variance. People who buy these units will sit on it for two years and then scrape it and put up something ugly. Ihor Figlus, 9775 W. 36th. Ave., Wheat Ridge. (Mr. Figlus delivered his presentation from Council Chambers with audio-visual displays of images and documents.) This rezoning should not be approved because it is much denser than the surrounding neighborhood. Both the last election and the NRS showed that our residents do not want this kind of high density development. Almost all of the people in favor of this rezoning do not live in Wheat Ridge. Mr. Figlus asserted that the City Planning Department has made several procedural errors, which he reviewed in detail. In the application these critical pieces are not addressed. The plan does not commit the developer to any limits other than a maximum of 10 units. At other locations plans were submitted for tri-plexes, but what the developer built differed greatly from the original plan. The same thing occurred in the space near the Lucky’s Market, which originally was to be town-homes. This development is for 10 units per acre, much more than the 2-3 units per acre on adjacent properties. (He displayed photographs.) A large portion of the space the developer designates as open space in this development is not actually open space, but drainage. Several of these buildings cannot legally be built on this property; private streets are not allowed by City Code. Calling this an alley does not meet the definition found in Code. Code also states that all single family units shall have direct access to a public street, which is not the case for the four single family units proposed. He also stated he has five more protest letters, which he is leaving for the City Clerk to put into the public record. Vivian Vos, 6920 W. 42nd, Place. While comments in Wheat Ridge Speaks are appearing in the minutes, we still do not have any attestation from Councilmembers that they are reading these comments. She read an article from the media saying that more and more people are interested in single-family homes, not duplexes or more dense developments. People want more space lot-wise. She cited an article from last Sunday’s Denver Post describing how people are seeking single-family homes to escape from crowded, small apartment units. The proposed unit density is not compatible with the neighborhood. I do not oppose development on this site, but I oppose this kind of density. When rezoning has passed previously, developers change their plans and suddenly the neighborhood is busted by a major change to higher density. We need the SDP as well as the ODP before you vote on this proposal. I cannot express how negatively I feel about this proposal. Patricia Wulf 9745 W. 35th Avenue – I live very near this location. This proposed development is way too dense. Traffic congestion would dramatically increase. The plan on the website for the PUD development does not bind the developer. She cited examples of previous situations in which developers have changed the plan once zoning is approved. I stand opposed to the development of the property at 38th Ave. and Johnson St. City Council Minutes July 13, 2020 page 6 Allen Wulf, 9745 W. 35th Avenue - I am opposed to the open-ended plan now proposed. The lots in our City do not match this kind of density. If I wanted to live in a row house with 50 feet of frontage, I would move elsewhere. We do not need this kind of extreme infilling. JoAnn Sorrentino, 4175 Teller St. – This rezoning is almost humorous. A year ago we voted down the Upham development for the same reason that we oppose this development. The recent apartment building developments along Upham near 38th Avenue are ugly and we do not need more of those. Rollie Sorrentino, 4175 Teller St. – I grew up in this neighborhood and attended WR High School. This has always been a nice, single-family unit neighborhood. This seems wrong to change this from R-1, which would change the character of this neighborhood. The proposed development does not belong there; it’s just wrong to move forward with high density in that neighborhood. Lola Tapialange, I have been living in Wheat Ridge in 34 years. We have fought for all of the parks we enjoy and against this kind of high density development. I oppose this development. Harry Hanley, 4190 Dover St, Wheat Ridge. I have lived in this neighborhood for more than 30 years. I spent my career visiting Wheat Ridge home sites. People who live here made a considerable investment to live here, so they want to keep the R-1 character of this neighborhood and the City as a whole. The people who have come here tonight voted against changing an R-1 zoned parcel to PUD in 2019. We beg you to be cognizant of the minds of the people who have come here and keep this an R-1 property. Odarka Figlus, 10580 W. 34th Ave – As I read through the materials, I wonder why the documents are not more truthful. The presentation tonight did not properly describe the adjacent neighborhood; they used photographs to mislead the Council about nearby homes and property. For instance, the adjacent neighborhoods are mid-century modern homes with large lots and mature landscaping. This development is not compatible with the surrounding neighborhood. The examples the developer gave are not representative of the current developments of single-family homes elsewhere in Wheat Ridge. The staff report treats this as a revitalization area, however, this property does not fit that definition or spirit of revitalization projects. The comprehensive NRS speaks against this very kind of development (she cited p. 120). This development does not meet these criteria. Guy Nahmaich, 3650 Ward Road, Wheat Ridge – as a District III Parks Commissioner this development scares me. The parking and traffic with create a danger to people visiting Discovery Park. This is also not consistent with the NRS. The suburbs are hot because people want more space in their homes, and space between their homes. This proposed development crams people, cars and buildings in the wrong place. City Council Minutes July 13, 2020 page 7 Claudia Worth, 4650 Oak St., Wheat Ridge. We have lived in the City for 50 years. When we came we wanted R-1 neighborhoods. We knew some duplexes would be built, but the set-backs and space between houses has somehow shrunk. We have raised 9 children in the City, and this kind of development does not allow enough green space, enough trees and open spaces. The developer should build R-1 single family homes. Listen to the people. We do not want this development. Tom Ripp, 4415 Wadsworth Blvd. I represent the applicant in this case. I respect the opinions of those who have spoken. In college I studied urban land economics. I understand the developer wants to maximize the value of that property. If there is such a nightmare that we are changing to a bad suburb of Oakland, CA or New York City, then the City or the residents opposed to this development should pay for the property to keep it vacant. What has been portrayed by the speakers tonight is not an accurate description of what this development will actually look like. The Sword of Damocles is not hanging over Wheat Ridge. We have rapidly changing demographics in Wheat Ridge, and as soon as the pandemic passes I urge the opponents to visit developments elsewhere in Wheat Ridge to see what actually happens. Fran Singer, 9810 W. 36th Ave. I have proudly lived here for 30 years. Wheat Ridge was incorporated in 1969 because we wanted to avoid the rampant suburban developments that were spreading all around Denver. The Wheat Ridge Comprehensive Plan calls for development but maintaining the existing character of our neighborhood. The staff plan stated many incorrect conclusions. For instance, this is called a transitional development, but there is no benefit to the surrounding neighborhoods. Among my concerns is that the density does not fit the area. Access is a problem and will create a traffic problem, especially the safety of our children. The noise levels, the parking, the drainage and density will degrade the quality of the neighborhood and lower property values. The traffic study for Discovery Park predicted significantly less traffic than we actually see. Please, do not approve this change. Zoriana Morozewych, 3651 Ward Road, Wheat Ridge – She applauded those who came in person to City Hall. She asserted that the notices for this hearing were improper and incomplete. For instance, the legal description of the property was not given in the public notice, and the plan proposed is not available for inspection at City Hall. The signs posted where placed improperly and in not sufficient numbers. We should not be having this hearing. This rezoning should also be rejected because it does not meet the requirements in several sections of the Code. She cited that Code does not guarantee landowners a right to a zoning change. Because of the pandemic, we should not be forced to collect petition signatures at this time. Becky Lewthwaite, 9860 W 37th Ave. – Council has heard and read the pros and cons. I could repeat what we have heard earlier. We hope you have come with an open mind to consider the wishes of our voters. In the last election, we voted clearly not to allow high density development. I urge you to keep Wheat Ridge unique; please do not vote to change the zoning. City Council Minutes July 13, 2020 page 8 The Mayor asked whether the applicant or the City Planning has anything else to add before we go to Council questions. Arda Hardi of 10240 W. 34th Place asked to speak. (He is the owner of the property at issue.) He asserted that much of what has been said tonight by opponents of this measure is false. We plan to live on the property, which will be developed some day whether according to the current proposal or another plan. We have lived in Wheat Ridge for 41 years, and we believe this proposed project fits that neighborhood. The same people come to Council to oppose all rezoning projects. His wife, Frieda Hardi echoed his sentiments. Mr. Cutler refuted the claim that once this is approved the developer is not bound by the current plan. He stated that any change to the ODP would require another vote of Council to approve it. There is not suddenly going to be a stark change to a three-story apartment building. The following comments appeared in Wheat Ridge Speaks related to this item: Good afternoon City Council, our family has been part of the Wheat Ridge community since 1960. We all currently reside in Wheat Ridge, family including aunts, uncles, cousins, brothers, sisters, nieces and nephews and we all enjoy being part of the community. It would be great to see new construction on west 38th Ave instead of the empty lot that has been there for years. It's nice to see that the weeds have been taken care of the past year as it was out of control in the past. And walking distance to best breakfast burrito in town. Apple Ridge Cafe. Jerry Runden Wheat Ridge resident 07/05/2020 2:38 pm Jerry Runden 3906 Lee Circle Wheat Ridge, 80033 Good afternoon City Council, I’m a Colorado Native and drive past W 38th Ave almost every week. After review of the plans, I fully support this project! I think it would be great for the community and a perfect space for the development. Keegan Sheard. 07/06/2020 12:59 pm Keegan Sheard 9840 W 44TH Ave Wheat Ridge, 80033 After looking over the plans, I completely support the construction for this property. We don’t need another bank or Walgreens there! 07/07/2020 9:11 am Pam Roepcke 4095 Carr St Wheat Ridge 80033 My name is Paul Casey and I have owned the building and operate my business at 4890 Kipling Street in Wheat Ridge since 2005. I am a registered professional engineer in Colorado (No. 26224) and have significant experience is both small and large residential and commercial development. This project makes perfect sense to me given the following: City Council Minutes July 13, 2020 page 9 1- Jefferson County and Wheat Ridge are landlocked and most of the development occurring on “in-fill” type parcels are high in density adding to traffic congestion and stress to existing infrastructure. 2- With the recent Covid-19 Pandemic now highlighting the importance of social distancing, single family and duplex development will become more desirable and marketable. Occupancy rates around the higher density developments may decrease as people will likely prefer single family and duplex type residences. 3- The fact that the proposed development is on the northern border of the Park, this choice of product is a much more attractive and visually desirable to park users than higher density apartments or townhomes. 4- The architecture is reasonable with regard to lot size and should be attractive with the variation in exterior finish. 5- Access and egress appear to satisfy fire and safety requirements which is often a challenge when it comes to singular in-fill parcels. Thank you for the chance to provide these comments. Respectfully, Paul Casey, P.E. 07/07/2020 11:55 am Paul Casey 4890 Kipling Street Wheat Ridge, CO, 80033 Hello Wheat Ridge City Council members. My husband and I would like to show our support for the project plan on 9800 w 38th Ave. We know there has been an enormous growth spurt to the state and our once little enclave has not been untouched. The changes and development to Wheat Ridge has impacted many neighborhoods and not always in the most desirable ways. This particular area has been a blight to our city for almost 30 years. In the 80’s my husband’s father owned a used car lot on the northeast corner of 38th and Kipling. Even then this was a vacant lot, an occasional horse grazed there but overall it was unused space. The plan presented by the Hardi family is meant to both utilize as well as beautify an area. I’m sure your desks have seen many proposals through the years that don’t always take into consideration the future of the changes being made. This plan is meant to provide homes for residents of the future. This area has a terrific view of the mountains that can be destroyed by the wrong structures. Hardi’s plan is taking this into account and blending the building into the existing neighborhood while still allowing the neighbors on the East a view they currently have. His plan isn’t just an investment in a property it’s a personal investment in his family’s future as Wheat Ridge citizens. Hardi and his wife chose to move their successful Restaurant business from Wisconsin to Wheat Ridge over 20 years ago. They raised their family only blocks away from this very site and if built they would like to move into one of the units. The plan will allow families to become a part of an area that is close to schools, Restaurant’s, food markets and gas stations, as well as parks and a recreation center, all without ever getting into a car. This is a sensible use of a space that currently is just catching litter. We feel change can be great for everyone when plans are well thought out and executed. Respectfully submitted. 07/07/2020 4:57 pm Debbie Zinke 3333 Independence Ct Wheat Ridge, 80033 I oppose the rezoning of this property (9800 W 38th Ave). 07/08/2020 10:34 am Daniel Bryce 10250 W 33rd Ave Wheat Ridge, 80033 City Council Minutes July 13, 2020 page 10 After review of the plans and the other comments, I highly agree that the sole purpose of this land is proposed with great thought. The purpose of rezoning is the best possible solution for this empty lot. With the park just south, this family living construction, will be a great improvement to the area. 07/08/2020 5:33 pm Deborah Pepping 10265 w 34th Place Wheat Ridge, 80033 Good Evening Wheat Ridge City Council and planning officials. My family and I are longtime residents of the City of Wheat Ridge and love the neighborhoods and warm feeling we get living here. It is very important for us to live in a community like this as well as preserve the feeling and look of our area. Beautiful homes as well as well planned developments and community living are one of the most important aspect to our Wheat Ridge family. We have reviewed the plans as well as viewed your informative video and feel this would be a great asset and attractive addition to the area as well as our neighborhood. Single family residents, as well as attractive duplexes, allow for a wide range of family's who are looking for that special and hard to find community feeling. I know every time we mention that we live in Wheat Ridge and especially "Applewood" people comment what a great place we live in and wish they lived there. This type of development will help bring those people to our community as well as give them an option of single family as well as duplex living. That aspect is very important to us!!! We endorse this project whole heatedly and am excited to see it grow. Please contact us if you need further or have any questions. Respectfully 07/09/2020 9:37 pm John and Susan Perry Vincenzo and Dominique Perri 10750 west 35th ave Wheat Ridge, 80033-5522 Angela and Pasquale Mucilli think that this development will be a great improvement for the city of Wheat Ridge. The project looks to be well planned and will be a nice addition as well as generate tax revenue for the city. 07/10/2020 12:31 pm Pasquale Mucilli 2940 Webster St Wheat Ridge, 80033 Wheat Ridge City Council, I grew up in Wheat Ridge and still reside here because it is a wonderful place to live. As one of the “younger” residents of Wheat Ridge (late 30’s), I am adamantly opposed to rezoning the property at 9800 W 38th Ave from R-1 to PRD. This is not the best option for this lot. The owner of this property can successfully develop it with the current zoning, while maintaining the integrity of the neighborhood. Rezoning this property to PRD would allow for increased density development and set a precedent for any future R-1 and R-2 lots to be rezoned for higher density development. I implore you to keep in mind that 2 out of 3 voters voted against increased residential density in the last election. It would be tragic for Wheat Ridge to begin down a path that would allow for what is being done in the city of Denver to happen here. Respectfully, Audra Lewthwaite 07/11/2020 8:56 pm Audra Lewthwaite 9860 W 37th Ave Wheat Ridge, 80033 City Council Minutes July 13, 2020 page 11 Re: proposed rezoning at Johnson & 38th There are two issues here. One is the proposed rezoning of R-1 lots to PRD (planned residential development). Instead of following the R-1 code, the developer wants to increase density. Why do developers assume that they can change the zoning to do what they want? They should work with existing zoning, which is what neighbors expect. The bottom line, development is okay as long as it fits existing zoning. As for the development itself, it's hard to say exactly what would be built since this is only an outline plan. Even so, it has many problems that I'm not listing here because the property shouldn't be rezoned in the first place. This is misuse of the intent of a PRD. 07/12/2020 12:22 pm Judy Capra 7070 W 43rd Ave. Wheat Ridge, 80033 Please take note that all of the comments in favor of this project are just that - in favor of the project. That is a separate issue. This hearing is about changing the zoning from R-1 to PRD. Most of the neighbors I've talked to are opposed to the zoning change. This 1+ acre property borders R-1 to the south, R-2 to the east and across 38th to the north, with a strip of parkland across Johnson Street to the west. The developer reasons he could never make a profit if he tried to develop it as an R-1, but he purchased the land with full knowledge of the zoning requirements. If the zoning must be changed, under threat that it will never be developed otherwise, an R-2 zoning would at least be in keeping with the neighborhood standards. Why does it have to be PRD? I've asked repeatedly, and am met with only blank stares or angry, contemptuous glares. Never a single word of explanation, except that R-2 can't be used for properties over an acre (which seems pretty arbitrary, doesn't it?). But the property will be subdivided, so that shouldn't even be an issue. R-2 zoning would be compatible with the surrounding neighborhoods, and would allow for development very much like what is being proposed. A "Planned Residential Development" zoning is surely meant more for large, undeveloped tracts. It is inappropriate and unnecessary in this setting. It has been presented as a "transition" - but that is nonsensical. A small enclave of PRD surrounded by R-1 and R-2 isn't a transition, it's more of a curiosity, as in "What were they thinking?" 07/12/2020 10:30 pm Margaret Nelson 9865 W 37th Ave Wheat Ridge, 80033 I support this project! 07/13/2020 10:13 am Luke Byrnes 3501 Moore Ct Wheat Ridge, 80033 Sabrina Brunk 3405 Miller St Wheat Ridge, Colo. 80033 I grew up in Wheat Ridge and returned to live here a year ago. I have been to apple ridge cafe and the park with my son and feel this would be a great addition to Wheat Ridge in that area. Hopefully no more apartments!! There are so many now that I feel we need something more residential going in there that would complement our properties. Have known Hardi for many years and worked for him 20 years ago in high school. Whatever he would do would only improve the community. Sabrina Brunk 07/13/2020 10:32 am Sabrina Brunk 3405 Miller St Wheat Ridge, 80033 City Council Minutes July 13, 2020 page 12 WOW! So many interesting comments regarding the rezoning of 9800 W. 38th Ave. from R-1 to PRD. There are good arguments on both sides of the fence. However, I side with and argue for keeping this property R-1 or R-2. The owner of this property did indeed purchase this land fully being aware of its current R-1 zoning! Did the seller/realtor company tell the buyer, “Oh, you can easily get this changed to PRD! The City of Wheat Ridge Council members want to rezone many of these vacant lots for PRD/increased residential development. Piece of cake, man!” City Council, remember you work for the people, not the developers! 07/13/2020 11:14 am Becky Lewthwaite 9860 W. 37th Ave. Wheat Ridge, 80033 I’ve lived in Wheat Ridge for over 40 years and new development is definitely needed. I am in favor of this project. John Dezzutti 3870 Tabor Ct. 07/13/2020 11:20 am John Dezzutti 3870 Tabor Ct. Wheat Ridge, 80033 I am opposed to the rezoning of this property. This property can be developed within the current zoning rules, without negatively impacting the neighborhood. One of my main concerns is that the traffic flow and parking will have a very negative effect on the already crowded and dangerous intersection near this property. 07/13/2020 11:21 am Gayle Miller 9780 w 36th Ave Wheat Ridge, 80033 I am against changing the zoning at 9800 W. 38th Avenue. Thanks to the wise decisions of my parents, I have lived in Wheat Ridge for 69 years. Unfortunately, the appeal of our City is being lost. People are purchasing lots while fully aware of the zoning. Later they appeal to our City "development staff" to plan a way to rezone the property -- changing the rules to profitably develop the land. Of course, we like new things and fancy-colored, architectural sketches look appealing. What you don't see is reality. Get out those tape measures -- 5 feet between units is LESS THAN SOCIAL DISTANCING!!! Map off an area of their proposed street width. Plot out the "green area". Where will visitors park -- in 3 spaces?? On Johnson?? Will they tie up spaces at the "tax-supported" City Park? Will residents have a lottery to see who can have visitors at any given time? Who will sand the 38th Ave. hill that will be shaded by the duplexes in snow storms? I know 35 foot buildings are allowed in WR -- but not a whole wall of them!!! With today's 3-D printer technology, developers should be required to present a 3-D, scale model of their planned development. If you see the plans in "real space" with adjoining streets and houses, you might reconsider how this development would adversely affect the neighborhood. Interesting thing about CoVid, people are realizing families need yards and space -- not a 5 foot easement along a busy thoroughfare. The voters of Wheat Ridge sent a clear message in 2019. They do not want these high density developments!!! Thanks for listening! 07/13/2020 11:22 am Frances Langdon 3570 Miller Street Wheat Ridge, 80033 Per Section 26-303 of the City Code: City Council Minutes July 13, 2020 page 13 1. The change of zone promotes the health, safety, and general welfare of the community and will not result in a significant adverse effect on the surrounding area; No, this rezoning and the outline development do not necessarily promote the health of the community. How can health be affected by the zoning? What is being said with this statement? I believe the safety is not well thought out as the buildings will be so close to 38th that snow removal and lack of ice melt will affect the sidewalks and 38th Ave roadway. General welfare of the community is not promoted in a good way due to the 3 story height that blocks view and looks out of place with no other 3 story building and also the applicant plan shows oddly placed configuration of the 3 story end condos. Not appealing sight when traveling east bound on 38th. Once a zoning is changed the developer can do what they want with the project. The city has seen this happen many times. Show the final plan so Council can vote on what is actual not conceptual. 2. The development proposed on the subject property is not feasible under any other zone district, and would require an unreasonable number of variances or waivers and conditions: This is correct. The proposed development is not feasible under the current zoning, but current zoning does allow for development of 3 single family houses and during the virus for who knows how long, do families really want to be close to others that help in the spread of viruses? Several articles are stating the buyers do not want condos now they want open space in their backyard, their living areas and not be close to the public that they do not trust to be as healthy as desired. Density in Wheat Ridge is not wanted in neighborhoods. Yes there is density in other parts of the City as those places serve a different purpose with housing on those particular sites. This development is not necessary as outlined and is not wanted by the neighborhood as evidenced by the legal protest filed. The citizens have expressed the desire for lack of density by a high percentage in the NRS as well as by city vote. I do not oppose development at this site, but do oppose the proposed density. 07/13/2020 11:28 am VIVIAN VOS 6920 W 47 PLACE WHEAT RIDGE, 80033 I write regarding the Hardi ODP plan, which is before City Counsel for an approval vote this evening Once again there is a development plan for high density housing to be built on a vacant lot that under our City’s zoning code cannot support the development’s increased density. And once again we have a developer telling us that, without granting his rezoning request, he will be unable to afford to develop this property. The property is almost at the bottom of the hill running from Wadsworth Blvd. to Kipling Street, and drains into Lena Gulch on its south side. No drainage plan has been submitted, although we are told that that will follow during the next step in rezoning. Since our Clear Creek drainage system is tantamount in importance to development within the City, I feel it is important that Council have engineering reports (as opposed to a statement that “it will be fine” from an unnamed engineer. I did see, on the application for ODP, that the developer plans to build some sort of drainage retention pond underneath a parking area. More drainage information is definitely needed. The Planning Staff report outlines what are referred to as changes in the immediate area of the ODP, including the Sprout’s Market and Starbuck’s at the corner of 38th Avenue and Kipling. While both of these businesses are new, this area has housed grocery stores (Safeway) and restaurants (Clancy’s), as well as dry cleaners and other small, neighborhood services for many years. A shopping center located on this corner was torn down and rehabilitated several years ago. The result is a newer, better looking shopping area—not a new commercial area. Home owners in the area surrounding the planned ODP do not want high density housing in this area. I’ve also heard and read some of their concerns about this particular property continuing to be vacant, because over the years it has become full of weeds and not properly cared for. Building a high density project, out of a character for the surrounding neighborhood, is not a solution to the lot’s rundown condition. Citizens and our City should not have to choose between the “lesser of two evils” in order to care for vacant land. Again, let’s see the entire plan, with accompanying reports from engineers, traffic experts, and West Metro Fire before we allow this development to take place. Generally, reports from the fire district, water district, traffic engineers, and drainage experts are one City Council Minutes July 13, 2020 page 14 or two sentences spelling out that the various municipal districts can serve the new development. I think it’s time that we ask for more depth in these reports, and the signature of whomever is signing off on the report. Thank you, Kathy Havens 07/13/2020 11:33 am Kathy Havens 7060 West 39th Ave Wheat Ridge, 80033 I am very opposed to this high density project. There will not be enough parking, or green belt on this project. The overflow parking will end up in the parking provided for the park. The increased traffic flow will endanger the young people who use the park. THE OWNERS KNEW THE ZONING WHEN THEY BOUGHT THE PROPERTY, THEY CAN LIVE WITH THAT. Patrick Goff and Ken Johnson need to pay attention to the owners in the area not all the developers our perhaps find new employment, they are overpaid anyway. 07/13/2020 9:23 am Robert Brzell 3830 Carr St Wheat Ridge, 80033 We support the opposition to this development on Johnson St. This is a residential neighborhood that is comprised of single-family homes. This build would be out of character for this neighborhood and is an unappealing and crowded design.2E should have served as a wake up all to the City that residents are opposed to these types of developments, but here we are again, with another similar type project being proposed. What is the developer’s problem with not building 3 homes that this land is currently zoned for now? Why this push to maximize profits to the max at the expense of Wheat Ridge citizens? Listen to the citizens and the NRS study that the City spent multi-thousands of dollars on, instead of the interests of outside developers who want to irrevocably change the feel and look of Wheat Ridge. The problems raised by this rezoning will soon be in all other neighborhoods of Wheat Ridge. We don’t want this type of development in our neighborhood either. We urge you to vote NO today. 07/13/2020 11:51 am Zoriana Morozewych 3651 Ward Rd Wheat Ridge, 80033 2 out of 3 voters voted against increased residential density in the last election. And here we are again trying to change the zoning to accommodate a land developer for higher profits not better quality of homes in this residential area. I live directly across the street from this site on 38th. My home as well as several other residence on 38th have no access to on street parking, so if we have more than one visitor they have to park on Johnson Street or in the Discovery Park parking lot. To build units that have none to no additional parking is irresponsible plus creating unsafe situation for the children riding their bikes to the park. You have a choice and the ability to eliminate one or two units to create parking making it safer for the surrounding residents. We have several new council members and I'll repeat myself 2 out of 3 voters voted against increased residential density in the last election. Wheat Ridge will have its opportunity to create new housing developments once Lutheran's new hospital has been built and the old campus has been redeveloped. I do not support the rezoning of this property. 07/13/2020 12:05 pm Delaine Novak 9795 W 38th Avenue Wheat Ridge, 80033 City Council Minutes July 13, 2020 page 15 End of comments recorded in Wheat Ridge Speaks on this agenda item. In addition to the foregoing, Councilmember Urban received the following message via email related to this item, and has asked that the comment appear in these minutes. From: Judy Capra <SaveOurNeighborhoods@q.com> Sent: Sunday, July 12, 2020, 12:08 PM To: Kathy Havens; Steve & Luanne Prose; Rolly Sorrentino; Vivian Vos Subject: Update & reminder re zone change THANK YOU!! My conclusions based on your feedback. We still oppose rezoning R-1 and R-2 for higher density We think there has been enough scraping and redeveloping definitely oppose the rezoning at 38th & Johnson we don’t like talking to City Council Yes, I see that people feel... - Frustrated - Angry - Depressed - Upset And no, the CC seems to be saying that the vote was just about Upham, not about increasing density in WR. Truly? Do they really think that 6,000 voters didn’t like that particular development!?! My apologies. I didn’t mean for you to make phone calls to get names of people who oppose the 38th & Johnson rezoning, but THANK YOU! Now more people are aware of what’s going on. I have decided not to turn in a count of people who oppose the development (we don’t need to go there yet). Wheat Ridge Speaks If you haven’t tried this method of providing feedback, this is the time to do so. Many people are supporting the project. The City needs to hear from us. The link I sent in the last email doesn’t work. Use this one instead: https://wheatridgespeaks.org/city-council/item-no-1-zone-change-at-9800-w-38th-avenue-hardi-odp- july-13-2020-7-00-pm You may need to copy & paste — it’s not coming up as a hotlink for me. You’ll want to scroll thru all of the comments — most of them are supportive and think the development is an asset. I can’t believe that they looked at it very closely. REMINDER — you can also - Go to City Hall to speak to City Council. - Call to speak during the City Council meeting. - Call your City Council rep. City Council Minutes July 13, 2020 page 16 Bottom line: If the CC doesn’t hear from us, they’re likely to think we don’t mind rezoning. Why? Because the developers are making sure that their friends voice their support. And lastly... If I haven’t heard from you yet, you can still check in — I like hearing what you’ve been up to! Council Questions Council had questions and comments. Councilmember Hoppe asked Mr. Cutler to explain the difference between an R-3 and the PRD proposed here. Mr. Cutler answered that a PRD requires a specific landscape plan that the City must review and approve. The same is true with the architecture, the appearance of the buildings. R-3 allows up to 12 units per acre. The PRD gives the City much more control, not less. Councilmember Nosler Beck asked about the lot just to the east. When was that parcel zoned R-2? This plan looks very similar to the adjacent properties. Give some background on R-2, and how that differs. Mr. Cutler said it is zoned R-2A, which allows more dense development than a PRD. Neither Mr. Cutler nor Mr. Johnstone knew when that zoning was approved. Councilmember Stites asked Mr. Dahl to address the objections about noticing. Mr. Dahl described the notices that have been posted and published. He assured Council that the notices were proper and free of material defects, and he could defend the notices in court. Councilmember Stites also asked about any recent developments with respect to circulating referenda petitions at the state level. Mr. Dahl explained that the CRS requirements for petitions stand. In the state Public Health Orders there is ample guidance about how to conduct business. Still, there is no possible completely adequate advice to protect public health perfectly. Council could, but is not required, to promulgate local rules. Councilmember Urban asked about the comments made about private driveways vs. alleys. Mr. Dahl recounted the City’s previous practices and procedures for PRD with respect to driveways, alleys and private streets. The City has previously approved exceptions to the language in the Code. The PRD is intended to be reviewed on a case by case basis. The two gentlemen exchanged questions and comments about details in the Code and how the City has treated PRD in the past. Mr. Johnstone thanked Councilmember Urban for the question and reviewed the reasons why flexibility is built into the spirit and practice of PRD. He reported that at least a dozen projects in Wheat Ridge have all incorporated these kinds of private access drives. Christine Simcox, the architect for the project asked to respond. She stated that the purpose of calling this a private drive to enable restrictions on parking and speed limits. Councilmember Hutchinson asked whether this development is a metro district. Mr. Johnstone answered no. City Council Minutes July 13, 2020 page 17 Councilmember Hultin asked for clarification on terminology. Some of the materials provided use the terms high density vs. medium density. Mr. Cutler said R-1 is low density, R-2 is more medium (which is defined in Code) and R-3 is medium to high density. She also asked for a clarification of the term residential vs. traditional districts. Mr. Cutler recalled the details from the Comprehensive Plan. We look at the surrounding areas and evaluate the surrounding property. This proposed development is also along a major commercial corridor. Mr. Johnstone said that the Comprehensive Plan is intended to be guidance and reasonable interpretation. Councilmember Hultin who also worked on the NRS in 2018-19, and believes this project is in line with the NRS and fits the neighborhood. The developer worked with the neighbors to refine the design in response to their requests. She also said that 38th Ave is designated as a Principal arterial roadway, and this is the kind of project appropriate on this type of corridor. Other quality projects are PRDs including Cambridge and Fireside developments nearby. She expressed strong support for this project; she will vote yes. She also addressed the “domino effect,” concern, that one proposal leads to another with more density. Since this is on 38th Ave, vs. a lot to the south of this parcel, this is not densification of the neighborhood. Councilmember Nosler Beck asked how this PRD plan differs from the previous plan that was denied by Council. Mr. Cutler recalled that the previous plan was for 16 units in 8 duplexes. This project provides more parking per unit, 4 spaces, compared to the previous plan. Councilmember Weaver asked Mr. Cutler to explain the other zoning options. Could you explain the one-acre issue for zoning? Mr. Cutler said that Code requires that any development over one acre must be zoned PRD. Councilmember Hoppe asked if the property to the east was larger than an acre, then how it could be R-2A. Mr. Cutler said that was zoned before the introduction of PRD. Mayor Starker closed the public hearing at 9:49 pm Motion by Councilmember Weaver to approve Council Bill No. 11-2020 an ordinance approving the rezoning of property located at 9800 W. 38th Avenue from Residential- One (R-1) to Planned Residential Development (PRD) with an Outline Development Plan, on second reading, and that it takes effect 15 days after final publication, for the following reasons: 1. The Planning Commission has recommended approval of the rezoning after conducting a proper public hearing. 2. The proposed rezoning has been reviewed by the Community Development Department, which has forwarded its recommendation of approval. City Council Minutes July 13, 2020 page 18 3. The proposed rezoning has been found to comply with the criteria for review in Section 26-303 of the Code of Laws. Seconded by Councilmember Hoppe. Discussion on the Motion Councilmember Urban recalled that the previous proposal was similarly opposed by the neighborhood residents. The same objections and assertions arise here as arose before. He commented on the various parties’ rights and how to balance those interests. He stated he will vote in favor of this proposed zoning change. He believes that this is a good compromise. Councilmember Dozeman commented that we originally saw a proposal for 23 units, then 16 units and now 10. Previously the opponents said that fewer units would be acceptable, but now 10 are still too many. She also recalled the thinking and social culture at the time Wheat Ridge was incorporated. She said that race relations were very different 50 years ago, when Wheat Ridge was incorporated and desegregation of schools had only begun. She wants her children to have the same upbringing and education she got here in Wheat Ridge. Now we need to think about the American Dream today and in the future. It is important to allow the Millennial generation the opportunity to afford housing in our City. She will support this project. Councilmember Stites echoed the comments of Councilmembers Dozeman and Urban. As one who worked hard on the NRS, he sees this as a reasonable compromise. He will be supporting this motion. Councilmember Hoppe agreed with her peers. To have a diverse community we have to have diverse housing options. These kinds of projects allow families to buy an affordable home and then upgrade as their finances allow. There were many comments about the vote last November. That vote was not a vote against PRD in general, but that one project. Every project should be judged on its merits. She will support his motion. Councilmember Hultin who also worked on the NRS in 2018-19, and believes this project is in line with the NRS and fits the neighborhood. She also said that 38th Ave is designated as an arterial roadway, and this is the kind of project anticipated by that designation. This is consistent with the Cambridge and Fireside developments nearby. She expressed strong support for this project; she will vote yes. She also addressed the “domino effect,” concern, that one proposal leads to another with more density. Since this is on 38th Ave, vs. a lot to the south of this parcel, it fits the NRS. Councilmember Weaver echoed her colleagues; I think this project is the right thing in the right place. There were a lot of positive comments about this project on Wheat Ridge Speaks. She also noted that Councilmembers do read the comments on WR Speaks and consider them alongside the verbal comments heard during Council sessions. City Council Minutes July 13, 2020 page 19 Councilmember Hutchinson said that this parcel should be developed as three single family homes. Families want greenspace and more space in their homes. She is opposed to his proposal. Motion carried 7-1, a super majority, with Councilmember Hutchinson voting no. ORDINANCES ON FIRST READING 2. Council Bill No. 13-2020 - An Ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements Discussion began at 10:22 pm. Councilmember Dozeman introduced Council Bill 13-2020. A subdivision ordinance requires cash-in-lieu payment for parkland dedication requirements to be made in the form of a certified check and at the time a plat is recorded for new subdivisions. Staff has found that payment in the form of a certified check is not necessary, and that payment at time of building permit is more appropriate. Motion by Councilmember Dozeman to approve Council Bill 13-2020 - an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements, on first reading for the sole purpose of ordering it published for a public hearing set for Monday, July 27, 2020 at 7 p.m. as a virtual meeting, and, if adopted, that it take effect 15 days after final publication; seconded by Councilmember Urban; motion carried 8-0. 3. Council Bill No. 14-2020 - An Ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings. Councilmember Nosler Beck introduced Council Bill 14-2020. Requirements for the notice of public hearings are provided in the City Charter and Chapter 26 of the Code of Laws. This includes notice by sign and letter as well as publication in the newspaper and on the City’s website. Sometimes a public hearing is continued or postponed, and this code amendment provides procedural clarity on notice requirements for those situations. Motion by Councilmember Nosler Beck to approve Council Bill 14-2020 - an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings, on first reading for the sole purpose of ordering it published for a public hearing set for Monday, July 27, 2020 at 7 p.m. as a virtual meeting, and, if adopted, that it take effect 15 days after final publication; seconded by Councilmember Stites; carried 8-0 City Council Minutes July 13, 2020 page 20 Councilmember Urban asked if there is precedent for setting a public hearing before the Planning Commission has taken up the matter. The answer was yes, due to the urgent nature of this issue. DECISIONS, RESOLUTIONS AND MOTIONS Discussion began at approximately 10:16 PM 4. Motion to amend the contract for Engineering Consulting Services for Phase II of the Wadsworth Boulevard Improvement Project with HDR Engineering, Inc., Denver, CO, to incorporate additional design fees in the amount of $384,627 for a total project cost of $2,529,557.12 Councilmember Hoppe introduced the Motion. In April 2015, the City was awarded funding through the Denver Regional Council of Governments (DRCOG) Transportation Improvement Program (TIP) to improve Wadsworth Boulevard from 35th Avenue to 48th Avenue. Local funding for the project was also generated with the voters’ 2016 approval of the 2E ballot measure for a temporary ½ cent sales and use tax rate increase. Due to changes from the original scope of work for the contract that was executed with HDR Engineering, Inc. in 2018, a contract amendment needs to be executed to provide the funds necessary to complete the design phase of the project. This contract amendment includes the items shown in the attached scope of work. The largest scope item involves the addition of the noise wall between 35th and 38th Avenues on the east side of Wadsworth. Public Comment Vivian Vos, 6920 W. 47th Place – She has been following this project closely through its history. The noise wall between 35th and 38th along Wadsworth is a new element in this proposal. There is also a median added to this project. She is also concerned that continuous flow intersections will present snow removal issues. There are also retaining walls along the north end of the project. Who was present at the June 22nd meeting; she saw no public notices about that session. The acronym FOR is used throughout the document without explanation. When and where were 4,200 door hangers placed? She believes that all of these issues need further public review. The near future is not the time for such a huge project. The following comment appeared in Wheat Ridge Speaks related to this item: Do NOT continue with the city's widening of Wadsworth. Not during COVID and NOT disrupting the City and the Businesses along Wadsworth as they are already decimated with the downturn of pandemic loss of business. 07/13/2020 11:38 am VIVIAN VOS 6920 W 47 PLACE WHEAT RIDGE, 80033 City Council Minutes July 13, 2020 page 21 Council Questions Councilmember Urban asked which items have already been completed. Mr. Mark Westberg answered with details requested by Councilmember Urban. Councilmember Urban asked Mr. Westberg how the noise wall was added, who voted and how? In accord with Federal procedures, the local residents voted and the noise wall is required by Federal regulations based on that vote. Councilmember Urban asked how this work has been done prior to budget approval or a supplemental budget action by Council. Councilmember Urban asked for details about 4,200 door hangers, and Mr. Westburg explained what happened. Motion by Councilmember Hoppe to amend the contract for Engineering Consulting Services for Phase II of the Wadsworth Boulevard Improvement Project with HDR Engineering, Inc., Denver, CO, to incorporate additional design fees in the amount of $384,627 for a total project cost of $2,529,557.12, seconded by Councilmember Dozeman; motion carried 8-0 5. Resolution No. 37-2020 – A Resolution approving an intergovernmental agreement with the City of Edgewater regarding the 26th Avenue Drainage Improvements. Discussion began at approximately 10:16 PM Councilmember Hutchinson introduced Resolution 37-2020. In late 2016, the City was approached by the City of Edgewater for help in resolving a drainage issue at the intersection of 26th Avenue and Fenton Street on the cities mutual border. Multiple issues were found with the existing storm sewer system in both cities, requiring that the storm sewer system be replaced. The attached resolution approves an Intergovernmental Agreement (IGA) allowing Edgewater to reconstruct the storm sewer system and be reimbursed by the City of Wheat Ridge for the City’s share of the cost. Mark Westberg and Steve Nguyen were present to answer questions Public Comment No one came forward to speak. Motion by Councilmember Hutchinson to approve Resolution 37-2020, a resolution approving an intergovernmental agreement with the City of Edgewater regarding the 26th Avenue Drainage Improvements, seconded by Councilmember Urban; motion carried 8-0 6. Resolution No. 38-2020 – A Resolution approving an intergovernmental agreement with the City of Edgewater regarding the 26th Avenue Drainage Improvements. City Council Minutes July 13, 2020 page 22 Discussion of this item began at 10:34 PM. Councilmember Hultin introduced Resolution 38-2020. The proposed improvements to Wadsworth Boulevard require that additional right-of- way (ROW) be purchased to allow for the construction of public improvements. In order to facilitate the acquisition of property at 4084 Wadsworth and the subsequent relocation of the current tenant, Raliberto’s, the property owner has requested that the property be purchased under the “threat” of eminent domain. This is a common request when municipalities purchase properties for public projects and it provides significant tax benefits to the seller pursuant to Internal Revenue Code Section 1033. In this situation, the property seller will be allowed to defer any capital gains from the sale for up to three years rather than the standard 180 days. All other terms of the purchase of this property have been negotiated in good faith between the City and the property owner and have been finalized. Mark Westberg and Steve Nguyen were present for any questions. Public Comment Mr. Colson, owner of Railberto’s, explained the reason for his request. Council Questions Councilmember Urban asked the City Attorney how we got to this action tonight without prior discussion or action. Mr. Dahl answered that this resolution is that very first step. Motion by Councilmember Hultin to approve Resolution 38-2020, a resolution concerning the acquisition and acceptance of 4084 Wadsworth Boulevard for the purpose of constructing, installing, maintaining and using public improvements for improving Wadsworth Boulevard by either negotiation and voluntary purchase or, if necessary, through the utilization of the City’s power of eminent domain, and authorizing such action as necessary to accomplish said purposes, seconded by Councilmember Hoppe; motion carried 7-1, with Councilmember Nosler Beck voting no. 7. Resolution No. 39-2020 – A Resolution concerning the lease back of property located at 4084 Wadsworth Boulevard to Edward E. Colson, III Trust et. al. Councilmember Urban introduced Resolution 39-2020. The proposed improvements to Wadsworth Boulevard require that additional right-of- way (ROW) be purchased to allow for the construction of public improvements. In order to facilitate the acquisition of property at 4084 Wadsworth and the subsequent relocation of the current tenant, Raliberto’s, City Council must approve a resolution authorizing leasing the property back to Raliberto’s for a limited period of time. Mark Westberg and Steve Nguyen were present for any questions. Public Comment City Council Minutes July 13, 2020 page 23 No one came forward to speak. Council Questions Council had no questions. Motion by Councilmember Urban to approve Resolution 39-2020, a resolution concerning the lease back of property located at 4084 Wadsworth Boulevard to Edward E. Colson, III Trust et.al, seconded by Councilmember Stites; motion carried 8-0. CITY MANAGER’S MATTERS Our financial position looks better than we might have anticipated. May revenues from sales taxes were up 5% over 2019. We will continue to monitor the situation. CITY ATTORNEY’S MATTERS Congratulated Councilmember Dozeman for her election to the CML Executive Board, the CML’s governing body. ELECTED OFFICIALS’ MATTERS City Treasurer Miller thanked the Council for their hard work, and congratulated Councilmember Dozeman. Councilmember Nosler Beck urged citizens to use Wheat Ridge Speaks to give input to some forthcoming items, including the noise ordinance. Councilmember Dozeman thanked others for their congratulations on her new position on the CML Executive Board. Councilmember Stites thanked those who gave their opinions on tonight’s agenda. Councilmember Weaver announced that her goat herd goes back to Lewis Meadows this Saturday. People are welcome to come visit – with proper masks and social distancing. Councilmember Hultin thanked everyone who spoke tonight. She thanked staff for their efforts to ensure that people could participate at City Hall in a hybrid mode. She also thanked those who have recently done so much important work on homeless issues in Wheat Ridge. Councilmember Hutchinson noticed last week that the Bradley station at 38th and Reed will close Thursday after a long presence in the City. Councilmember Urban asked when the massage business ordinance will come before Council. Ms. Scheck reported that it will appear for first reading on July 27th. Councilmember Hoppe noted that there are many comments about circulating petitions during the pandemic. She gave an example of how she would do it. City Council Minutes July 13, 2020 page 24 Mayor Starker also thanked all of those who came to speak tonight. The public’s input is essential and hopes that those who commented felt that their contributions were meaningful. ADJOURNMENT The meeting adjourned at 10:54 pm. _____________________________ Steve Kirkpatrick, City Clerk APPROVED BY CITY COUNCIL ON July 27, 2020 ______________________________ Janeece Hoppe, Mayor Pro Tem The preceding Minutes were prepared according to §47 of Robert’s Rules of Order, i.e. they contain a record of what was done at the meeting, not what was said by the members. Recordings and DVD’s of the meetings are available for listening or viewing by contacting the City Clerk’s Office, as well as copies of Ordinances and Resolutions. ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 12-2020 – AN ORDINANCE APPROVING THE REZONING OF PROPERTY LOCATED AT 11700 W. 46TH AVENUE FROM AGRICULTURAL-ONE (A-1) TO RESIDENTIAL-TWO (R-2) (CASE NO. WZ-20-04 /11700 W. 46TH AVE) PUBLIC HEARING ORDINANCES FOR 1ST READING (06/22/2020) BIDS/MOTIONS ORDINANCES FOR 2ND READING (07/27/2020) RESOLUTIONS QUASI-JUDICIAL: YES NO _____________________________ Community Development Director City Manager ISSUE: The applicant is requesting approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue. The zone change will result in a zoning that matches surrounding zoning designations. It will also address the site’s existing nonconforming conditions such that the existing duplex will go from a legal nonconforming use to a legal and conforming use that complies with the zoning. PRIOR ACTION: Planning Commission reviewed this request at a public hearing on July 16, 2020 and recommended approval. The Planning Division staff report and draft meeting minutes are attached. FINANCIAL IMPACT: The proposed ordinance is not expected to have a direct financial impact on the City. Fees in the amount of $865 were collected for the review and processing of Case No. WZ-20-04. If the rezoning is approved, the City may benefit from building permit fees from any permit for an addition or accessory structure that is not presently allowed due to lot coverage restrictions. 1 Council Action Form – Proposed Rezoning at 11700 W. 46th Avenue July 27, 2020 Page 2 BACKGROUND: The property is located at the southwest corner of W. 46th Avenue and Swadley Street. It is one block north of W. 44th Avenue and just east of Tabor Street. Immediately to the south of the property is land that is entitled for the Clear Creek Terrace townhome development project which is zoned Planned Residential Development (PRD). To the north, east, and immediate west are low-density residential properties which are zoned Residential-Two (R-2) and Residential- Three (R-3). The property is currently zoned Agricultural-One (A-1), and is one of the only A-1 properties in the immediate vicinity. According to the Jefferson County Assessor, the lot area measures 14,025 square feet (0.32 acres) in size and contains a duplex built in 1968. Current Zoning The A-1 zone district was established to provide high quality, safe, quiet and stable residential estate living environment within a quasi-rural or agricultural setting. In addition to large lot, single-family residential and related uses, agricultural uses and activities may exist and be encouraged to continue. The site is considered legally nonconforming based on the lot size, lot coverage, setbacks, and the presence of a duplex. Duplexes are not permitted in the A-1 zone district, but it is considered legally nonconforming because it was built before the City’s incorporation in 1969. Per Sec. 26-120.C, nonconforming lots, uses, and structures that are considered legally nonconforming are allowed to continue to exist, as long as certain provisions are met. Any one- or two-family dwelling structure or customary accessory structures may be enlarged, altered or added to provided that all lot coverage requirements of the zoning district in which the structure is located are met. Because the existing structure already exceeds the lot coverage requirements for the zone district (currently at approximately 26% lot coverage), no other structure may be built on the lot, i.e. no addition or accessory structure can currently be built. Proposed Zoning While the land use and lot size are compatible with the surrounding neighborhood, they are not compatible with the underlying A-1 zoning. The applicant has proposed to rezone the property from A-1 to R-2 to remedy this issue. The zone change will bring the lot and existing duplex into compliance with the zoning code, and it will allow for a future addition of an attached garage and sunroom. The R-2 zone district was established to provide high quality, safe, quiet and stable low to moderate-density residential neighborhoods, and permits duplexes. The development standards of the two zone districts (A-1 and R-2) are the same in terms of architectural requirements (neither have architectural standards) and building height (maximum 35’). For all other standards, the R-2 district is far more compatible with the existing conditions on the subject property. RECOMMENDATIONS: The application in this case is for the rezoning of property. This action is quasi-judicial, and as a result, the applicant is entitled to a public hearing on the application. Council Action Form – Proposed Rezoning at 11700 W. 46th Avenue July 27, 2020 Page 3 As Council is aware, rezoning in Wheat Ridge is accomplished by ordinance (Charter Sec. 5.10; Code Section 26-112). Ordinances require two readings, and by Charter, the public hearing takes place on second reading. Per City Code, the City Council shall use the criteria in Section 26-303 of the code to evaluate the applicant’s request for a zone change. A detailed Planning Commission staff report is enclosed with this criteria analysis, as well as additional information on the existing conditions and zone districts. Staff is ultimately recommending approval of this request. RECOMMENDED MOTION: “I move to approve Council Bill No. 12-2020, an ordinance approving the rezoning of property located at 11700 W. 46th Avenue from Agricultural-One (A-1) to Residential-Two (R-2), on second reading, and that it takes effect 15 days after final publication, for the following reasons: 1. The Planning Commission has recommended approval of the rezoning after conducting a proper public hearing. 2. The proposed rezoning has been reviewed by the Community Development Department, which has forwarded its recommendation of approval. 3. The proposed rezoning has been found to comply with the criteria for review in Section 26-603 of the Code of Laws.” or, “I move to deny Council Bill No. 12-2020, an ordinance approving the rezoning of property located at 11700 W. 46th Avenue from Agricultural-One (A-1) to Residential-Two (R-2), for the following reasons: ___________________________ and direct the City Attorney to prepare a Resolution of Denial, to be scheduled for Council consideration at the next available regular business meeting.” REPORT PREPARED/REVIEWED BY: Zareen Tasneem, Planner I Lauren Mikulak, Planning Manager Ken Johnstone, Community Development Director Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 12-2020 2. Planning Commission Staff Report 3. Draft of Planning Commission Meeting Minutes CITY OF WHEAT RIDGE INTRODUCED BY COUNCIL MEMBER NOSLER BECK COUNCIL BILL NO. 12 ORDINANCE NO. _________ Series of 2020 TITLE: AN ORDINANCE APPROVING THE REZONING OF PROPERTY LOCATED AT 11700 W. 46TH AVENUE FROM AGRICULTURAL-ONE (A-1) TO RESIDENTIAL-TWO (R-2) (CASE NO. WZ-20-04/11700 W. 46TH AVE) WHEREAS, Chapter 26 of the Wheat Ridge Code of Laws establishes procedures for the City’s review and approval of requests for land use cases; and, WHEREAS, Mary Ann Fake has submitted a land use application for approval of a zone change to the Residential-Two (R-2) zone district for property located at 11700 W. 46th Avenue; and, WHEREAS, the City of Wheat Ridge has adopted a comprehensive plan— Envision Wheat Ridge—which calls for encouraging reinvestment in a property, maintaining consistent character, and consistent maintenance for properties located in established Neighborhood areas; and, WHEREAS, the zoning will bring the property into conformance with the surrounding zoning and land uses in the area; and, WHEREAS, the City of Wheat Ridge Planning Commission held a public hearing on July 16, 2020 and voted to recommend approval of rezoning the property to Residential-Two (R-2), NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Upon application by Mary Ann Fake for approval of a zone change ordinance from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue, and pursuant to the findings made based on testimony and evidence presented at a public hearing before the Wheat Ridge City Council, a zone change is approved for the following described land: A PARCEL OF LAND SITUATED IN THE WEST ONE-HALF OF LOT 14, LEE'S SUBDIVISION, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT OF THE NORTH LOT LINE OF SAID LOT 14, WHICH POINT IS LOCATED 331.16 FEET WEST OF THE NORTHEAST CORNER OF THE SAID LOT 14; THENCE WEST ALONG THE NORTH LOT LINE OF THE SAID LOT 14, A DISTANCE OF 165 FEET TO A POINT; THENCE SOUTH ON AN ANGLE OF 90 DEGREES TO THE LEFT A DISTANCE OF 85 FEET TO A POINT; THENCE EAST ON AN ANGLE OF 90 DEGREES TO THE LEFT A DISTANCE OF 165 FEET TO A POINT; THENCE NORTH ON AN ANGLE OF ATTACHMENT 1 90 DEGREES TO THE LEFT A DISTANCE OF 85 FEET TO THE TRUE POINT OF BEGINNING, COUNTY OF JEFFERSON, STATE OF COLORADO. Section 2. Vested Property Rights. Approval of this zone change does not create a vested property right. Vested property rights may only arise and accrue pursuant to the provisions of Section 26-121 of the Code of Laws of the City of Wheat Ridge. Section 3. Safety Clause. The City of Wheat Ridge hereby finds, determines, and declares that this ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the ordinance bears a rational relation to the proper legislative object sought to be attained. Section 4. Severability; Conflicting Ordinance Repealed. If any section, subsection or clause of the ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 5. Effective Date. This Ordinance shall take effect 15 days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 22nd day of June, 2020, ordered it published with Public Hearing and consideration on final passage set for Monday, July 27, 2020 at 7:00 o’clock p.m., as a virtual meeting, and that it takes effect 15 days after final publication. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of _____ to _____, this _____ day of ___________, 2020. SIGNED by the Mayor on this _______ day of _______________, 2020. __________________________ Bud Starker, Mayor ATTEST: _____________________________ Steve Kirkpatrick, City Clerk Approved as to Form __________________________ Gerald Dahl, City Attorney 1st publication: June 25, 2020 Wheat Ridge Transcript 2nd publication: July 30, 2020 Jeffco Transcript Effective Date: August 14, 2020 Planning Commission 1 Case No. WZ-20-04 / 11700 W. 46th Avenue CITY OF WHEAT RIDGE PLANNING DIVISION STAFF REPORT REVIEW DATES: July 16, 2020 (Planning Commission) / July 27, 2020 (City Council) CASE MANAGER: Zareen Tasneem, Planner I CASE NO. & NAME: WZ-20-04 / 11700 W. 46th Avenue ACTION REQUESTED: Approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) LOCATION OF REQUEST: 11700 W. 46th Avenue APPLICANT / OWNER: Mary Ann Fake / The Mary Ann Fake Trust APPROXIMATE AREA: 14,025 square feet (0.32 acres) PRESENT ZONING: Agricultural-One (A-1) COMPREHENSIVE PLAN: Neighborhoods ENTER INTO RECORD: (X) CASE FILE & PACKET MATERIALS (X) COMPREHENSIVE PLAN (X) ZONING ORDINANCE (X) DIGITAL PRESENTATION Location Map Site ATTACHMENT 2 Planning Commission 2 Case No. WZ-20-04 / 11700 W. 46th Avenue JURISDICTION: All notification and posting requirements have been met; therefore, there is jurisdiction to hear this case. I. REQUEST The owner of the property at 11700 W. 46th Avenue is requesting approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2). The zone change will result in a zoning that matches surrounding zoning designations. It will also address the site’s existing nonconforming conditions such that the existing duplex will go from a legal nonconforming use to a legal and conforming use that complies with the zoning. II. EXISTING CONDITIONS The property is located at the southwest corner of W. 46th Avenue and Swadley Street (Exhibit 1, Aerial). It is one block north of W. 44th Avenue, a major east-west arterial road through the City of Wheat Ridge and just east of Tabor Street. Immediately to the south of the property is land that is entitled for the Clear Creek Terrace townhome development project which is zoned Planned Residential Development (PRD). To the north, east, and immediate west are low-density residential properties which are zoned Residential-Two (R-2) and Residential-Three (R-3) (Exhibit 2, Zoning Map). The property is currently zoned Agricultural-One (A-1), and is one of the only A-1 properties in the immediate vicinity. According to the Jefferson County Assessor, the lot area measures 14,025 square feet (0.32 acres) in size and contains a duplex built in 1968. The A-1 zone district was established to provide high quality, safe, quiet and stable residential estate living environment within a quasi-rural or agricultural setting. In addition to large lot, single-family residential and related uses, agricultural uses and activities will exist and be encouraged to continue. The site is considered legally nonconforming based on the lot size, lot coverage, setbacks, and the presence of a duplex. Duplexes are not permitted in the A-1 zone district, but it is considered legally nonconforming because it was built before the City’s incorporation in 1969. Per Sec. 26-120.C, nonconforming lots, uses, and structures that are considered legally nonconforming are allowed to continue to exist, as long as certain provisions are met. Any one- or two-family dwelling structure or customary accessory structures may be enlarged, altered or added to provided that all lot coverage requirements of the zoning district in which the structure is located are met. Because the existing structure already exceeds the lot coverage requirements for the zone district (currently at approximately 26% lot coverage), no other structure may be built on the lot, i.e. no addition or accessory structure can currently be built. III. PROPOSED ZONING While the land use and lot size are compatible with the surrounding neighborhood, they are not compatible with the underlying A-1 zoning. The applicant has proposed to rezone the property from A-1 to R-2 to remedy this issue. The zone change will bring the lot and existing duplex into compliance with the zoning code, and it will allow for a future addition of an attached garage and sunroom (Exhibit Planning Commission 3 Case No. WZ-20-04 / 11700 W. 46th Avenue 3, Applicant Letter). The R-2 zone district was established district to provide high quality, safe, quiet and stable low to moderate-density residential neighborhoods, and permits duplexes. The following table compares the existing conditions to the current and proposed zoning. The development standards of the two zone districts are the same in terms of architectural requirements (neither have architectural standards) and building height. For all other standards the R-2 district is far more compatible with the existing conditions on the subject property. EXISTING CONDITIONS CURRENT ZONING Agricultural-One (A-1) PROPOSED ZONING Residential-Two (R-2) Uses Duplex Allows for single family homes. Allows for single family homes and duplexes. Lot Area 14,025 sf 1 acre min 12,500 min sf for duplex Lot Width 165’ 140’ min 100’ min for duplex Building Height One-story (approx. 11’ at mid-roof) 35’ max 35’ max Lot coverage Approx. 26% 25% max 40% max Setbacks Front setback Rear setback Side setbacks 29’ 18.43’ 4’ (west), 55’ (east) 30’ 15’ 15’ 25’ 10’ 5’ per story for duplex IV. ZONE CHANGE CRITERIA Staff has provided an analysis of the zone change criteria outlined in Section 26-112.E. The Planning Commission and City Council shall base its decision in consideration of the extent to which the following criteria have been met: 1. The change of zone promotes the health, safety, and general welfare of the community and will not result in a significant adverse effect on the surrounding area. The R-2 zone district would bring the duplex into compliance with its assigned zone district and would allow the zoning to match that of the surrounding properties in the neighborhood. The zoning would allow for accessory structures and additions that are customary of low to medium density neighborhoods and not otherwise permitted by the existing A-1 zoning because of lot coverage limitations. No additional units could be added. The zone change will not have an adverse effect on the surrounding area. Staff concludes that this criterion has been met. 2. Adequate infrastructure/facilities are available to serve the types of uses allowed by the change of zone, or the applicant will upgrade and provide such where they do not exist or are under capacity. Adequate infrastructure currently serves the property. All responding agencies have indicated they can serve the property. In the event that the current utility capacity is not adequate for a future use, the property owner/developer would be responsible for utility upgrades. A building permit review will be required for any future addition, and will ensure compliance with current Building Codes, as well as the Fire Code. Planning Commission 4 Case No. WZ-20-04 / 11700 W. 46th Avenue Staff concludes that this criterion has been met. 3. The Planning Commission shall also find that at least one (1) of the following conditions exists: a. The change of zone is in conformance, or will bring the property into conformance, with the City of Wheat Ridge comprehensive plan goals, objectives and policies, and other related policies or plans for the area. Envision Wheat Ridge, the City’s comprehensive plan, identifies this area as a Neighborhood (Exhibit 4, Comprehensive Plan Map). This designation identifies areas where people own homes and thrive and where residents of all ages can live safely and comfortably. Defining characteristics of an established neighborhood in the comprehensive plan are: consistent character, mature landscaping, high rates of reinvestment and home ownership, consistent maintenance, and high desirability. City goals that are met with the rezoning proposal include encouraging reinvestment in a property (the applicant plans to build an addition if the zoning is approved), maintaining consistent character (the property will remain a duplex, consistent in character to other duplexes that surround it), and consistent maintenance (the applicant is also remodeling the existing duplex). Please see site photos (Exhibit 5) for existing conditions of the property. Staff concludes that this criterion has been met. b. The existing zone classification currently recorded on the official zoning maps of the City of Wheat Ridge is in error. Staff has not found any evidence of an error with the current A-1 zoning designation as it appears on the City zoning maps. Staff has reviewed the original zoning map of the City to understand the nonconformities. In 1972, the subject property and all surrounding properties on the south side of W. 46th Avenue were zoned A-1 (Exhibit 6, 1972 Zoning Map). It appears that over time, the properties on the south side of W. 46th Avenue was incrementally subdivided and rezoned, leaving the subject property as a substandard remnant of A-1 zoning. Staff concludes that this criterion is not applicable. c. A change of character in the area has occurred or is occurring to such a degree that it is in the public interest to encourage redevelopment of the area or to recognize the changing character of the area. The proposed rezoning does not relate to a changing of character in the area. The property has existed as a duplex since 1968 and will continue to exist as a duplex in the future. Staff concludes that this criterion is not applicable. d. The proposed rezoning is necessary in order to provide for a community need that was not anticipated at the time of the adoption of the City of Wheat Ridge comprehensive plan. Planning Commission 5 Case No. WZ-20-04 / 11700 W. 46th Avenue The proposed rezoning does not relate to an unanticipated need. Staff concludes that this criterion is not applicable. Staff concludes that the criteria used to evaluate zone change support this request. V. PUBLIC NOTICING Prior to submittal of an application for a zone change, the applicant is required to hold a neighborhood input meeting in accordance with the requirements of Section 26-109. A meeting for neighborhood input was held on April 29, 2020. Due to the COVID-19 pandemic this meeting was advertised and conducted as a virtual meeting on Zoom. One member of the public attended the virtual meeting in addition to the applicant and staff, and the attendee had no issue with the zone change proposal (Exhibit 7, Neighborhood Meeting Notes). This case was originally scheduled for a Planning Commission meeting on June 18, 2020. However, it came to our attention that the online legal notice for the June 18th Planning Commission meeting was inadvertently deleted for a period of four days. After review of the Code of Laws and consultation with the City Attorney, it was determined that this deficiency in notice required that the hearing be cancelled and rescheduled. As of the date of distribution of this staff report, July 1, 2020, the City has not received additional comments or inquiries from surrounding property owners. VI. AGENCY REFERRAL All affected service agencies were contacted for comment on the zone change request and regarding the ability to serve the property. Specific referral responses follow: Wheat Ridge Engineering Division: No comments. Arvada Fire Protection District: No comments. Xcel Energy: No objections. Century Link: No concerns. Comcast Cable: No comments. Valley Water District: No concerns. Fruitdale Sanitation District: No objections. VII. STAFF CONCLUSIONS AND RECOMMENDATION Staff concludes that the proposed zone change promotes the health, safety and general welfare of the community and will not result in a significant adverse effect on the surrounding area. Staff further Planning Commission 6 Case No. WZ-20-04 / 11700 W. 46th Avenue concludes that utility infrastructure adequately serves the property, and the applicant will be responsible for upgrades, if needed in the future. Finally, staff concludes that the zone change is consistent with the goals and objectives of the Comprehensive Plan. Because the zone change evaluation criteria support the zone change request, staff recommends approval of Case No. WZ-20-04. VIII. SUGGESTED MOTIONS Option A: “I move to recommend APPROVAL of Case No. WZ-20-04, a request for approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue, for the following reasons: 1. The proposed zone change will promote the public health, safety, or welfare of the community and does not result in an adverse effect on the surrounding area. 2. Utility infrastructure adequately services the property. 3. The proposed zone change is consistent with the goals and objectives of the City’s Comprehensive Plan. 4. The zone change will provide additional opportunity for reinvestment in the area. 5. The criteria used to evaluate a zone change supports the request. 6. The R-2 zoning will bring the existing duplex into compliance with the zone district in which it is located.” Option B: “I move to recommend DENIAL of Case No. WZ-20-04, a request for approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue, for the following reasons: 1. 2. …” Planning Commission 7 Case No. WZ-20-04 / 11700 W. 46th Avenue EXHIBIT 1: AERIAL Planning Commission 8 Case No. WZ-20-04 / 11700 W. 46th Avenue EXHIBIT 2: ZONING MAP Planning Commission 9 Case No. WZ-20-04 / 11700 W. 46th Avenue EXHIBIT 3: APPLICANT LETTER Planning Commission 10 Case No. WZ-20-04 / 11700 W. 46th Avenue The following in an excerpt from the Structure Map within the Comprehensive Plan. EXHIBIT 4: COMPREHENSIVE PLAN Subject Property W. 44th Ave Ta b o r S t r e e t Planning Commission 11 Case No. WZ-20-04 / 11700 W. 46th Avenue EXHIBIT 5: SITE PHOTOS View of the subject property looking south shows the existing duplex. View of the property looking south at the eastern side yard where the applicant would like to build an addition, if approved for the zone change. Please note the duplex is currently being remodeled under an active building permit, thus materials are being stored in this area temporarily. Planning Commission 12 Case No. WZ-20-04 / 11700 W. 46th Avenue This image is an excerpt from the City’s 1972 zoning map. The location of the subject property is shown outlined in red. At the time, the subject property was part of a larger A-1 zoned parcel. The neighborhood to the north was R-2—then and now. Over time, the properties south of W. 46th Avenue have been subdivided and rezoned leaving the subject property as a nonconforming remnant of A-1 zoning. While the land use and lot size are compatible with the surrounding neighborhood, it is not compatible with the underlying A-1 zoning. EXHIBIT 6: 1972 ZONING MAP Site Planning Commission 13 Case No. WZ-20-04 / 11700 W. 46th Avenue NEIGHBORHOOD MEETING NOTES Meeting Date: April 29, 2020 Attending Staff: Scott Cutler, Planner II Zareen Tasneem, Planner I Location of Meeting: Virtual Zoom meeting Property Address: 11700 W. 46th Avenue Property Owner(s): Mary Ann Fake Property Owner(s) Present? Yes Applicant: Mary Ann Fake Applicant Present? Yes Existing Zoning: Agricultural-One (A-1) Existing Comp. Plan: Neighborhoods Existing Site Conditions: The property is located at the southwest corner of W. 46th Avenue and Swadley Street. It is one block north of W. 44th Avenue, a major east-west arterial road through the City of Wheat Ridge. Immediately to the south of the property is land that is the future site of the Clear Creek Terrace townhome development project. To the north, east, and immediate west are primarily less dense residential uses, while further to the west and south are more heavy commercial uses. I-70 is located to the northwest. The property is currently zoned Agricultural-One (A-1). According to the Jefferson County Assessor, the lot area measures 14,025 square feet (0.32 acres) in size and contains a duplex built in 1968. Although duplexes are not permitted in the A-1 zone district, it is considered legally nonconforming because it was built before the City’s incorporation in 1969. The site is surrounded by Residential-Two (R-2) zoning to the north, west, and southwest, which primarily contain duplexes. Properties in the area zoned Planned Commercial Development (PRD), Mixed Use Neighborhood (MU-N), Mixed Use Commercial Interstate (MU-C INT), and Commercial-One (C-1) contain commercial uses, while properties zoned Residential-Three and Planned Residential Development (PRD) contain multifamily uses (three or more units). The previous property owner initiated the rezoning process in late 2017 in order to build a detached garage by attending a pre-application meeting and holding a neighborhood meeting, but never submitted a formal land use application. EXHIBIT 7: NEIGHBORHOOD MEETING Planning Commission 14 Case No. WZ-20-04 / 11700 W. 46th Avenue Applicant/Owner Preliminary Proposal: The applicant submitted a building permit to remodel the existing duplex and add an addition for an attached garage. Because the existing structure already exceeds the maximum building coverage in the A-1 zone district of 25%, the applicant would like to rezone the property from A-1 to Residential-Two (R-2) to bring the property into zoning conformance and to build an addition if approved for the rezone. The following is a summary of the neighborhood meeting: • In addition to the applicant and staff, 1 member of the public attended the neighborhood meeting. This was the owner of the property immediately to the west of the subject property. • Staff discussed the site, its zoning, and future land use. • The applicant and members of the public were informed of the process for the rezone. • The members of the public were informed of their opportunity to make comments during the process and at the public hearings. • After the applicant made a brief presentation on wanting to expand the building footprint to eventually add a two-car garage and sunroom, the attendee expressed no issue with the proposal. The following issues were discussed regarding the zone change: • Will the garage be detached or attached? How big will it be? Will the fence dividing our properties be going back up? It will be a standard sized attached two-car garage. Yes, the fence is back up now. Prior to the neighborhood meeting, staff did not receive any comments regarding the proposed zone change. Planning Commission 15 Case No. WZ-20-04 / 11700 W. 46th Avenue Wheat Ridge Speaks Published Comments for July 16, 2020 Planning Commission Meeting Zone Change at 11700 W 46th Ave I have been a resident in Wheat Ridge since 1997. I am for the new development. There is a real need for quality housing in this area. It will have a minimal (if any) impact on traffic. I am all for this project. 07/13/2020 12:04 pm Nicholas A. Welle 10464 W 44th Ave #2B Wheat Ridge, 80033 Planning Commission Minutes - 1 -July 16, 2020 PLANNING COMMISSION Minutes of Meeting July 16, 2020 1.CALL THE MEETING TO ORDER The meeting was called to order by Chair OHM at 7:08 p.m. in the City CouncilChambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. 2.ROLL CALL OF MEMBERS Commission Members Present:Melissa Antol Kristine Disney Will Kerns Daniel Larson Scott Ohm Jahi Simbai Commission Members Absent: Ari Krichiver Janet Leo Staff Members Present: Lauren Mikulak, Planning Manager Zareen Tasneem, Planner I Tammy Odean, Recording Secretary 3.PLEDGE OF ALLEGIANCE 4.APPROVE ORDER OF THE AGENDA It was moved by Commissioner LARSON and seconded by Commissioner SIMBAIto approve the order of the agenda. Motion carried 6-0. 5.PUBLIC FORUM (This is the time for any person to speak on any subject not appearingon the agenda.) ATTACHMENT 3 Planning Commission Minutes - 2 - July 16, 2020 Vivian Vos, resident 6920 W. 47th Place, Wheat Ridge Ms. Vos inquired about several items: the possibility of citizens attending Planning Commission at City Hall; why there are no July 2 minutes included in this agenda packet; and why the closing period for public comments is listed as the14th instead of the 15th. Ms. Mikulak explained that anyone who lacks the ability to join a meeting virtually can contact City Staff by noon on the day of the meeting and arrangements can be made to accommodate comments at the microphone in Council Chambers. She also mentioned that public comments through Wheat Ridge Speaks ends the day before the hearing and will look into the dates posted. Ms. Mikulak noted that occasionally minutes are not ready for the packet, so there will be 2 sets of minutes to approve at the next Planning Commission meeting. 6. PUBLIC HEARING A. Case No. WZ-20-04: An application filed by Mary Ann Fake for approval of a Zone Change from Agricultural-One (A-1) to Residential-Two (R-2) for the property located at 11700 W. 46th Avenue. Ms. Tasneem gave a short presentation regarding the Zone Change and the application. She entered into the record the contents of the case file, packet materials, the zoning ordinance, and the contents of the digital presentation. She stated the public notice and posting requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. Mary Ann Fake, applicant 11700 W. 46th Avenue The applicant gave a short presentation describing her family’s intentions and proposed improvements for the property. Commissioner SIMBAI commented that he thought this case is more about compliance and making changes to the property than supporting the Comprehensive Plan. Commissioner ANTOL wanted clarification on the property to the east and if it is zoned Residential-Three (R-3). She also asked if any duplexes are allowed in Residential-One (R-1) zone districts. Ms. Tasneem confirmed it is R-3 and not a single family land use, but most likely a duplex or triplex. She also mentioned duplexes are not allowed in R-1 zoning at all. Planning Commission Minutes - 3 - July 16, 2020 Commissioner LARSON asked if there is a policy for the City to update legally non-conforming sites or if it is up the property owner to address the matter. Ms. Mikulak mentioned there are extensive non-conforming lots, uses and buildings in the City due to the City being largely developed prior to 1969 when the City incorporated. Code Section, 26-120 provides a framework for allowing legal nonconformities Citywide. If further action is required or requested to “clean up” a nonconformity, usually the property owner has to be proactive to address the issue. Vivian Vos, resident 6920 W. 47th Place Ms. Vos mentioned the day she drove by the property the posting signs were side by side on a fence and were blocked by garbage cans and would like to see signs posted better in the future. There were no additional public comments and Chair OHM asked staff to address public comment. Ms. Mikulak noted that the signs were in the correct location. Occasionally parked cars or garbage cans may block the view temporarily. City code specifically indicates that an interruption in sign posting does not prohibit the public hearing from occurring. Commissioner LARSON complimented the applicant both for efforts in improving the property and for her patience with the rescheduling of the Public Hearing. It was moved by Commissioner KERNS and seconded by Commissioner DISNEY to recommend APPROVAL of Case No. WZ-20-04, a request for approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue, for the following reasons: 1. The proposed zone change will promote the public health, safety, or welfare of the community and does not result in an adverse effect on the surrounding area. 2. Utility infrastructure adequately services the property. 3. The proposed zone change is consistent with the goals and objectives of the City’s Comprehensive Plan. 4. The zone change will provide additional opportunity for reinvestment in the area. 5. The criteria used to evaluate a zone change supports the request. 6. The R-2 zoning will bring the existing duplex into compliance with the zone district in which it is located. Motion carried 6-0. ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 13-2020 – AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS PERTAINING TO THE FORM AND TIMING OF CASH-IN-LIEU PAYMENT FOR PARKLAND DEDICATION REQUIREMENTS (CASE NO. ZOA-20-03) PUBLIC HEARING ORDINANCES FOR 1ST READING (07/13/2020) BIDS/MOTIONS ORDINANCES FOR 2ND READING (07/27/2020) RESOLUTIONS QUASI-JUDICIAL: YES NO _______________________________ ____________________________________ Community Development Director City Manager ISSUE: The subdivision ordinance requires cash-in-lieu payment for parkland dedication requirements to be made in the form of a certified check and at the time a plat is recorded for new subdivisions. Staff has found that payment in the form of a certified check is not necessary, and that payment at time of building permit is more appropriate. PRIOR ACTION: On April 28, 2014, City Council adopted Ordinance 1547, Series 2014, an ordinance repealing and reenacting the City’s subdivision regulations, as contained in Chapter 26, Article IV to simplify the subdivision review process and establish consistent and defensible dedication requirements. The section pertaining to public dedications, including parkland, was rewritten and restructured, and a supporting Resolution 34, Series 2014 was adopted by City Council on June 9, 2014 establishing fees in lieu based on a market study of land values. The issues pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements were presented to City Council at a study session on June 1, 2020 at which time 2 Council Action Form – Parkland Fees July 27, 2020 Page 2 Council gave staff direction to proceed with a code amendment. Planning Commission reviewed the proposed ordinance at a public hearing on July 2, 2020 and recommended approval (7-0). Draft meeting minutes from the Planning Commission public hearing are attached. FINANCIAL IMPACT: Parkland fees apply to all residential development, excluding nursing homes and similar uses. A parkland dedication requirement and fee in lieu is common amongst other municipalities and is based on the premise that additional residents create additional demand on parks, trails, and open space. The fee generates revenue that is used to offset the costs the city incurs to acquire, develop and maintain its parks and recreation properties and facilities. It can only be used for those purposes. The parkland fee is calculated based on a formula that determines the amount of land required for dedication per City Council Resolution 34, Series 2014. Depending on the location and type of residential unit, the fee in lieu currently ranges from $1,783.78 to $2,497.29 per unit. BACKGROUND: The intent of the subdivision code rewrite in 2014 was in large part to align the City code with the reality that Wheat Ridge is a largely built-out community focused on redevelopment and infill projects. The subdivision regulations are intended to be streamlined, well organized, predictable, consistent and equitable. In doing the research that resulted in the ordinance and resolution that were adopted in 2014, one area of focus was on staff’s approach to determining park land dedications and associated fees in lieu, as well as form and timing of payment. Most often, a fee is paid in lieu of land dedication. Staff believes the process is reasonable and predictable; however, the timing of fee payment for new subdivisions does not always align with the time of construction and has been difficult to track. Section 26-414.A.4.e of the City code currently reads as follows: Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city by certified check and deposited in the city account to be used solely for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For subdivisions, payment shall be made at the time the plat is recorded. For development, payment shall be made prior to building permit issuance. Staff has found that subdivisions are often times established far before development occurs, and it is better correlated at time of building permit. Thus, staff is recommending approval to amend the subdivision regulations to require cash-in-lieu payment to be made prior to building permit issuance for all development, including new subdivisions. In addition, the code currently requires the cash-in-lieu payment for park fees in the form of a certified check which creates an unnecessary step for applicants and does not always reflect Council Action Form – Parkland Fees July 27, 2020 Page 3 current practice. This is not a code requirement for any other fee in the Community Development Department. Because park fees will now likely be paid in much smaller increments and with building permit fees, and because building permit fees are not paid by certified check, this code amendment also removes the requirement for certified check. Staff has the ability to use discretion and require a certified check for substantial fees, without this being a codified requirement. Based on these changes, the code language would be edited to read as follows: Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city and deposited in the city account to be used solely for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For development and subdivisions, payment shall be made prior to building permit issuance. The attached Planning Division staff report provides additional context and background information on these two issues of form and timing of cash-in-lieu payment. RECOMMENDATIONS: Staff recommends approval of the ordinance. RECOMMENDED MOTION: “I move to approve Council Bill No. 13-2020, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements, on second reading and that it take effect 15 days after final publication.” Or, “I move to postpone indefinitely Council Bill No. 13-2020, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements, for the following reason(s) _________________.” REPORT PREPARED/REVIEWED BY: Stephanie Stevens, Senior Planner Kenneth Johnstone, Community Development Director Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 13-2020 2. Planning Division Staff Report 3. Planning Commission Draft Meeting Minutes ATTACHMENT 1 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER DOZEMAN COUNCIL BILL NO. 13 ORDINANCE NO. ____ Series 2020 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS PERTAINING TO THE FORM AND TIMING OF CASH-IN-LIEU PAYMENT FOR PARKLAND DEDICATION REQUIREMENTS WHEREAS, the City of Wheat Ridge (“City”) is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in exercise of that authority, the City Council of the City of Wheat Ridge has previously enacted Chapter 26 of the Wheat Ridge Code of Laws (the “Code”) pertaining to zoning, land use, and development; and WHEREAS, Chapter 26 includes regulations pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements; and WHEREAS, the City Council recognizes the need to align the timing of cash-in-lieu payment for parkland dedication with building permit to better correlate fees with both the timing of construction and the impact on the City’s parks and recreation system; and WHEREAS, the City Council also finds it appropriate to modify the form of payment to reflect current practice and simplify processes. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-414.A.4.e of the Wheat Ridge Code of Laws, regarding dedication of public parks and sites, is amended as follows: A. Public parks and trails. […] 4. Requirement for parkland dedication. […] e. Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city by certified check and deposited in the city account to be used solely 2 for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For subdivisions, payment shall be made at the time the plat is recorded. For development AND SUBDIVISIONS, payment shall be made prior to building permit issuance. Section 2. Safety Clause. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 3. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 4. Compliance Required – Applicability. This Ordinance shall apply to all development which does not by the effective have a vested property right, pursuant to the provisions of Section 26-121 of the Code of Laws of the City of Wheat Ridge. Section 5. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 13th day of July 2020, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for July 27, 2020 at 7:00 p.m., in virtual format, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ___ to ___, this _____ day of ______________, 2020. SIGNED by the Mayor on this _____ day of ____________, 2020. __________________________ Bud Starker, Mayor ATTEST: ______________________________ Steve Kirkpatrick, City Clerk 3 Approved as to Form __________________________ Gerald E. Dahl, City Attorney First Publication: July 16, 2020 Second Publication: July 30, 2020 Jeffco Transcript Effective Date: August 14, 2020 Published: Jeffco Transcript and www.ci.wheatridge.co.us TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS PERTAINING TO THE FORM AND TIMING OF CASH-IN-LIEU PAYMENT FOR PARKLAND DEDICATION REQUIREMENTS CASE NO: ZOA-20-03 PUBLIC HEARING CODE CHANGE ORDINANCE Case Manager: Stephanie Stevens Review Dates: July 2, 2020 (Planning Commission) / July 13, 2020 (City Council 1st Reading) / July 27, 2020 (City Council Public Hearing) ______________________________________________________________________________ SUMMARY: In 2014, City Council adopted Ordinance 1547 and a supporting Resolution 34, Series 2014 which revised the City’s subdivision regulations to set forth consistent and defensible parkland dedication requirements and to establish fees in lieu. Subdivisions are often times established far before development occurs, and fees may not be reflective of the current market at time of development. In addition, requiring payment in the form of a certified check is outdated practice. Having implemented the parkland dedication requirements for over five years now, staff has reviewed the fee structure and procedure and is recommending minor updates related to form and timing of cash- in-lieu payment. Notice for this public hearing was provided as required by the Wheat Ridge Code of Laws (“Code”). BACKGROUND: The intent of the subdivision code rewrite in 2014 was in large part to align the City code with the reality that Wheat Ridge is a largely built-out community focused on redevelopment and infill projects. The subdivision regulations are intended to be streamlined, well organized, predictable, consistent and equitable. In doing the research that resulted in the ordinance and resolution that were adopted in 2014, one area of focus was on staff’s approach to determining park land dedications and associated fees in lieu, as well as form and timing of payment. Most often, a fee is paid in lieu of land dedication. Staff believes the process is reasonable and predictable; however, the timing of fee payment for new subdivisions does not always align with the time of construction and has been difficult to track. PLANNING DIVISION LEGISLATIVE ITEM STAFF REPORT ATTACHMENT 2 ZOA-20-03 / Parkland Fees 2 Section 26-414.A.4.e of the City code currently reads as follows: Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city by certified check and deposited in the city account to be used solely for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For subdivisions, payment shall be made at the time the plat is recorded. For development, payment shall be made prior to building permit issuance. Staff has found that subdivisions are often times established far before development occurs, and it is better correlated at time of building permit. Thus, staff is recommending approval to amend the subdivision regulations to require cash-in-lieu payment to be made prior to building permit issuance for all development, including new subdivisions. In addition, the code currently requires the cash-in-lieu payment for park fees in the form of a certified check which creates an unnecessary step for applicants and does not always reflect current practice. This is not a code requirement for any other fee in the Community Development Department. Because park fees will now likely be paid in much smaller increments and with building permit fees, and because building permit fees are not paid by certified check, this code amendment also removes the requirement for certified check. Staff has the ability to use discretion and require a certified check for substantial fees, without this being a codified requirement. Based on these changes, the code language would be edited to read as follows: Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city and deposited in the city account to be used solely for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For development and subdivisions, payment shall be made prior to building permit issuance. RECOMMENDED MOTION: “I move to recommend approval of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements.” ATTACHMENT: 1. Proposed Ordinance ATTACHMENT 1 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER _________ COUNCIL BILL NO. __ ORDINANCE NO. ____ Series 2020 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS PERTAINING TO THE FORM AND TIMING OF CASH-IN-LIEU PAYMENT FOR PARKLAND DEDICATION REQUIREMENTS WHEREAS, the City of Wheat Ridge (“City”) is a home rule municipality operating under a charter adopted pursuant to Article XX of the Colorado Constitution and vested with the authority by that article and the Colorado Revised Statutes to adopt ordinances for the regulation of land use and protection of the public health, safety and welfare; and WHEREAS, in exercise of that authority, the City Council of the City of Wheat Ridge has previously enacted Chapter 26 of the Wheat Ridge Code of Laws (the “Code”) pertaining to zoning, land use, and development; and WHEREAS, Chapter 26 includes regulations pertaining to the form and timing of cash-in-lieu payment for parkland dedication requirements; and WHEREAS, the City Council recognizes the need to align the timing of cash-in-lieu payment for parkland dedication with building permit to better correlate fees with both the timing of construction and the impact on the City’s parks and recreation system; and WHEREAS, the City Council also finds it appropriate to modify the form of payment to reflect current practice and simplify processes. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-414.A.4.e of the Wheat Ridge Code of Laws, regarding dedication of public parks and sites, is amended as follows: A. Public parks and trails. […] 4. Requirement for parkland dedication. […] e. Form and timing of cash-in-lieu payment. Cash-in-lieu payments shall be paid to the city by certified check and deposited in the city account to be used solely 2 for the acquisition, development, or improvement of parks, open space, bicycle and pedestrian trails, and related facilities. For subdivisions, payment shall be made at the time the plat is recorded. For development and subdivisions, payment shall be made prior to building permit issuance. Section 2. Safety Clause. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be attained. Section 3. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 4. Compliance Required – Applicability. This Ordinance shall apply to all development which does not by the effective have a vested property right, pursuant to the provisions of Section 26-121 of the Code of Laws of the City of Wheat Ridge. Section 5. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of ___ to ___ on this ____ day of _______ 2020, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for _________, 2020 at 7:00 p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ___ to ___, this _____ day of ______________, 2020. SIGNED by the Mayor on this _____ day of ____________, 2020. __________________________________ Bud Starker, Mayor ATTEST: ______________________________ Steven James Kirkpatrick, City Clerk 3 Approved as to Form _________________________ Gerald E. Dahl, City Attorney First Publication: Second Publication: Wheat Ridge Transcript Effective Date: Published: Wheat Ridge Transcript and www.ci.wheatridge.co.us Planning Commission Minutes -1 – July 2, 2020 PLANNING COMMISSION Minutes of Meeting July 2, 2020 1.CALL THE MEETING TO ORDER The meeting was called to order by Chair OHM at 7:06 p.m. in the City Council Chambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. 2.ROLL CALL OF MEMBERS Commission Members Present:Melissa Antol Kristine Disney Ari Krichiver Daniel Larson Janet Leo Scott Ohm Jahi Simbai Commission Members Absent: Will Kerns Staff Members Present: Stephanie Stevens, Senior Planner Scott Cutler, Planner II Tammy Odean, Recording Secretary 3.PLEDGE OF ALLEGIANCE 4.APPROVE ORDER OF THE AGENDA It was moved by Commissioner ANTOL and seconded by Commissioner LEO to approve the order of the agenda. Motion carried 7-0. 5.APPROVAL OF MINUTES – June 4, 2020 It was moved by Commissioner LARSON and seconded by Commissioner DISNEY to approve the minutes of June 4, 2020, as written. Motion carried 6-0-1 with Commissioner KRICHIVER abstaining. 6.PUBLIC FORUM (This is the time for any person to speak on any subject not appearing on the agenda.) ATTACHMENT 3 Planning Commission Minutes - 2 – July 2, 2020 No one wished to speak at this time. 7. PUBLIC HEARING A. Case No. WZ-19-06: an application filed by Foothills Credit Union for approval of a Specific Development Plan for a 15,000 square foot office building. B. Case No. ZOA-20-03: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws, concerning the form and timing of cash-in-lieu payment for parkland dedication requirements. Ms. Stevens gave a short presentation regarding the Ordinance. She entered into the record the contents of the case file, packet materials, the zoning ordinance, and the contents of the digital presentation. She stated the public notice and posting requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. Commissioner KRICHIVER wanted confirmation that the way the code reads the payment will be a condition of approval because it will be paid prior to the issuing of a building permit. Ms. Stevens confirmed this as correct. Commissioner KRICHIVER also asked about the form of payment and if there are any concerns about removing this language from the code. Ms. Stevens replied that the code will be revised, and mentioned that other fees are collected at the time of issuing a building permit and a certified check is not required for the other fees, so it takes that extra step out of the process. She clarified that if the parkland dedication fee is substantial then a certified check will still be required, but this will not be in the code. Commissioner LARSON asked about the parks fees being paid in smaller increments. Ms. Stevens explained that a subdivision with multiple lots would be required to pay the parkland fees during the permitting process for each individual lot instead of for the entire subdivision at one time. Mr. Cutler added that multi-family buildings will be required to pay the parkland fee all at once. Commissioner OHM inquired if there needs to be anything in writing about the current rate of the parkland fees. Ms. Stevens said it is made clear in writing in the resolution adopted by Council and in the fee schedule. Planning Commission Minutes - 3 – July 2, 2020 Commissioner OHM mentioned he thought this was a good idea and is developer friendly with no adverse effects to the City. It was moved by Commissioner LEO and seconded by Commissioner SIMBAI to recommend approval of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws pertaining to the form and timing of cash-in- lieu payment for parkland dedication requirements. Motion carried 7-0. 8. OLD BUSINESS 9. NEW BUSINESS  Ms. Stevens welcomed Commissioner KRICHIVER to the Planning Commission.  The next Planning Commission will be on July 16 and the August 6th Planning Commission meeting has been cancelled due to no cases to be heard. 10. ADJOURNMENT It was moved by Commissioner DISNEY and seconded by Commissioner LEO to adjourn the meeting at 8:25 p.m. Motion carried 7-0. __________________________ _______________________________ Scott Ohm, Chair Tammy Odean, Recording Secretary ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 14-2020 – AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING NOTICE REQUIREMENTS FOR CONTINUED AND POSTPONED PUBLIC HEARINGS (CASE NO. ZOA-20-04) PUBLIC HEARING ORDINANCES FOR 1ST READING (07/13/2020) BIDS/MOTIONS ORDINANCES FOR 2ND READING (07/27/2020) RESOLUTIONS QUASI-JUDICIAL: YES NO _______________________________ ____________________________________ Community Development Director City Manager ISSUE: Requirements for the notice of public hearings are provided in the City Charter and Chapter 26 of the Code of Laws. This includes notice by sign and letter as well as publication in the newspaper and on the City’s website. Sometimes a public hearing is continued or postponed, and this code amendment provides procedural clarity on notice requirements for those situations. PRIOR ACTION: Planning Commission reviewed the proposed ordinance at a public hearing on July 16, 2020. The Commission recommended approval of the ordinance with the recommendation that a minimum notice time be added to the ordinance. The Commission did not recommend specific code language, but discussion focused primarily on a 7 to 10 day minimum for the sign, letter, and website notices. Draft meeting minutes from the Planning Commission public hearing are enclosed. FINANCIAL IMPACT: None 3 Council Action Form – Continued & Postponed Hearings July 27, 2020 Page 2 BACKGROUND: Between March and June 2020, three separate zoning applications were scheduled for public hearings before City Council and Planning Commission. For a variety of reasons, the respective public hearings were postponed and continued several times. This series of events highlighted a lack of clarity in the code around the notice requirements associated with postponed and continued hearings. For a scheduled public hearing, notice requirements are described in Charter Section 5.10 and Code Section 26-109 and include the following: • Sign notice – posted for 15 consecutive days on all street frontages on the subject property, the timing of which includes the day of the posting and the day of the hearing • Letter notice – sent 15 days before the hearing by first class mail to all property owners within 300 feet of the subject property • Newspaper publication – published 15 days before a zone change hearing and 10 days before other hearing types in a newspaper of general circulation; the City typically uses the Wheat Ridge Transcript (now Jeffco Transcript) for which the publishing deadlines are several days before distribution • Web publication – published 10 days before the hearing on the City’s Legal Notices page on the City’s website In addition to these codified requirements, the public can find information in advance of a hearing on the City’s online calendar and on the Wheat Ridge Speaks site. Most of the time, a public hearing is opened as scheduled and is decided upon in the same night, but this is not always the case. A postponed public hearing is one that was scheduled and noticed but is never opened and is ultimately rescheduled. Postponements can and have occurred for a variety of reasons including inclement weather; the applicant being unavailable to attend; or simply at the request of the applicant, staff or reviewing body. A postponed hearing is typically rescheduled to a specific date. Most often, a hearing is postponed to the next available business meeting of the Council or Commission. A continued hearing is opened but is either not conducted or not completed in the same night. In some cases, testimony is heard and then the hearing is continued. In other cases, a hearing may be opened with no testimony taken before it is continued. In September 2019, Section 26-112.C.7 was amended by Ordinance 1673 to implement the zone change protest provisions under Section 5.10 of the City Charter. Based on that amendment, if a protest against a zone change ordinance is received after the first reading of the ordinance, the public hearing is automatically continued to the next regular business meeting of City Council. The code also stipulates that notice for the continued hearing be given in the same manner as notice for the adopted ordinance on first reading. These two provisions, however, are inherently in conflict, and necessitate the amendment attached here. When the next business meeting is only two weeks out, it is impossible to meet the time requirements described above for signs, letters, and publications. Council Action Form – Continued & Postponed Hearings July 27, 2020 Page 3 Proposed Amendment In local government, it is common practice that a hearing continued or postponed to a specific date is not subject to the same notice requirements as the original hearing date. Wheat Ridge staff and decision makers place a high value on public notice, and staff has customarily provided courtesy notice of continued or postponed hearings by sign, letter, and publication. The code, however, is largely silent concerning notice requirements for postponed and continued hearings, and as noted above the one code provision creates a conflict. The attached ordinance provides necessary clarity for staff, decision makers, applicants, and the general public: notice of continued and postponed hearings will be required by sign, letter, newspaper and web, but is not required to meet the time requirements in the code applicable to the initial hearing date. As always, it will be staff’s practice to execute notice in good faith and as expeditiously as possible upon learning of a postponement or continuation. RECOMMENDATIONS: Staff recommends approval of the ordinance. RECOMMENDED MOTION: “I move to approve Council Bill No. 14-2020, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings, on second reading and that it take effect immediately upon adoption.” Or, “I move to postpone indefinitely Council Bill No. 14-2020, an ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings, for the following reason(s) _________________.” REPORT PREPARED/REVIEWED BY: Lauren Mikulak, Planning Manager Kenneth Johnstone, Community Development Director Gerald Dahl, City Attorney Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 14-2020 2. Planning Commission Draft Meeting Minutes – July 16, 2020 ATTACHMENT 1 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER NOSLER BECK COUNCIL BILL NO. 14 ORDINANCE NO. ____ SERIES 2020 TITLE: AN ORDINANCE AMENDING CHAPTER 26 OF THE WHEAT RIDGE CODE OF LAWS CONCERNING NOTICE REQUIREMENTS FOR CONTINUED AND POSTPONED PUBLIC HEARINGS WHEREAS, the City of Wheat Ridge is a home rule municipality having all powers conferred by Article XX of the Colorado Constitution; and WHEREAS, the City Council has exercised these powers by the adoption of Chapter 26 of the Wheat Ridge Code of Laws (the “Code”) concerning zoning and development; and WHEREAS, the Council wishes to provide procedural clarity on the notice requirements associated with a continued and postponed public hearing; and WHEREAS, the Council desires for those procedures to be in alignment with common practice. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Section 26-109.E of the Code of Laws, regarding public hearing notice and procedure, is amended to read: 1. Postponements: After a public hearing has been legally noticed, only one (1) postponement by the applicant may be allowed by the planning commission, board of adjustment or city council. Upon the second request for postponement, the planning commission, board of adjustment or city council shall have the authority, which they may exercise at their discretion, to dismiss the application. NOTICE FOR A POSTPONED HEARING SHALL BE PROVIDED IN THE MANNER OUTLINED ABOVE, HOWEVER SUCH NOTICE IS NOT REQUIRED TO MEET THE TIME REQUIREMENTS. Section 2. Section 26-109.E of the Code of Laws, regarding public hearing notice and procedure, is amended by the addition of a new subsection 4, to read: 4. CONTINUED HEARINGS: IN THE EVENT A PUBLIC HEARING IS OPENED AND CONTINUED TO A SPECIFIC DATE, NOTICE OF THAT DATE SHALL BE PROVIDED IN THE MANNER OUTLINED ABOVE, HOWEVER SUCH NOTICE IS NOT REQUIRED TO MEET THE TIME REQUIREMENTS. -2- Section 3. Section 26-112.C.7.b of the Code of Laws, regarding the procedure for zone change protests, is amended to read: b. In the event that a letter of protest is submitted prior to first reading of the ordinance for a change of zone, and such protest has been determined by the community development staff to meet the required property ownership and area requirements of Charter 5.10, the hearing shall be conducted on the originally scheduled date for second reading of the ordinance. If a protest is submitted after first reading of the ordinance, the hearing SHALL BE OPENED WITH NO TESTIMONY TAKEN AND shall THEREUPON automatically be continued to the next regular business meeting of the council. , and nNotice of such continued hearing shall be made CONSISTENT WITH THE PROVISIONS FOR CONTINUED HEARINGS IN SECTION 26-109. in the same manner as notice for adoption of ordinances on first reading and setting the public hearing thereon. Section 4. Severability Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 5. Effective Date. This Ordinance shall take effect immediately upon adoption, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 13th day of July, 2020, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for July 27, 2020 at 7:00 p.m., as a virtual meeting, and that it be effective immediately upon adoption. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ___ to ___, this 27th day of July 2020. SIGNED by the Mayor on this ____ day of July 2020. ______________________________ Bud Starker, Mayor ATTEST: _________________________ Steve Kirkpatrick, City Clerk -3- Approved as to Form _________________________ Gerald Dahl, City Attorney 1st publication: July 16, 2020 2nd publication: July 30, 2020 Jeffco Transcript: Effective Date: July 27, 2020 Published: Jeffco Transcript and www.ci.wheatridge.co.us Planning Commission Minutes - 1 -July 16, 2020 PLANNING COMMISSION Minutes of Meeting July 16, 2020 1.CALL THE MEETING TO ORDER The meeting was called to order by Chair OHM at 7:08 p.m. in the City CouncilChambers of the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado. 2.ROLL CALL OF MEMBERS Commission Members Present:Melissa Antol Kristine Disney Will Kerns Daniel Larson Scott Ohm Jahi Simbai Commission Members Absent: Ari Krichiver Janet Leo Staff Members Present: Lauren Mikulak, Planning Manager Zareen Tasneem, Planner I Tammy Odean, Recording Secretary 3.PLEDGE OF ALLEGIANCE 4.APPROVE ORDER OF THE AGENDA It was moved by Commissioner LARSON and seconded by Commissioner SIMBAIto approve the order of the agenda. Motion carried 6-0. 5.PUBLIC FORUM (This is the time for any person to speak on any subject not appearingon the agenda.) ATTACHMENT 2 Planning Commission Minutes - 2 - July 16, 2020 Vivian Vos, resident 6920 W. 47th Place, Wheat Ridge Ms. Vos inquired about several items: the possibility of citizens attending Planning Commission at City Hall; why there are no July 2 minutes included in this agenda packet; and why the closing period for public comments is listed as the14th instead of the 15th. Ms. Mikulak explained that anyone who lacks the ability to join a meeting virtually can contact City Staff by noon on the day of the meeting and arrangements can be made to accommodate comments at the microphone in Council Chambers. She also mentioned that public comments through Wheat Ridge Speaks ends the day before the hearing and will look into the dates posted. Ms. Mikulak noted that occasionally minutes are not ready for the packet, so there will be 2 sets of minutes to approve at the next Planning Commission meeting. 6. PUBLIC HEARING A. Case No. WZ-20-04: An application filed by Mary Ann Fake for approval of a Zone Change from Agricultural-One (A-1) to Residential-Two (R-2) for the property located at 11700 W. 46th Avenue. Ms. Tasneem gave a short presentation regarding the Zone Change and the application. She entered into the record the contents of the case file, packet materials, the zoning ordinance, and the contents of the digital presentation. She stated the public notice and posting requirements have been met, therefore the Planning Commission has jurisdiction to hear this case. Mary Ann Fake, applicant 11700 W. 46th Avenue The applicant gave a short presentation describing her family’s intentions and proposed improvements for the property. Commissioner SIMBAI commented that he thought this case is more about compliance and making changes to the property than supporting the Comprehensive Plan. Commissioner ANTOL wanted clarification on the property to the east and if it is zoned Residential-Three (R-3). She also asked if any duplexes are allowed in Residential-One (R-1) zone districts. Ms. Tasneem confirmed it is R-3 and not a single family land use, but most likely a duplex or triplex. She also mentioned duplexes are not allowed in R-1 zoning at all. Planning Commission Minutes - 3 - July 16, 2020 Commissioner LARSON asked if there is a policy for the City to update legally non-conforming sites or if it is up the property owner to address the matter. Ms. Mikulak mentioned there are extensive non-conforming lots, uses and buildings in the City due to the City being largely developed prior to 1969 when the City incorporated. Code Section, 26-120 provides a framework for allowing legal nonconformities Citywide. If further action is required or requested to “clean up” a nonconformity, usually the property owner has to be proactive to address the issue. Vivian Vos, resident 6920 W. 47th Place Ms. Vos mentioned the day she drove by the property the posting signs were side by side on a fence and were blocked by garbage cans and would like to see signs posted better in the future. There were no additional public comments and Chair OHM asked staff to address public comment. Ms. Mikulak noted that the signs were in the correct location. Occasionally parked cars or garbage cans may block the view temporarily. City code specifically indicates that an interruption in sign posting does not prohibit the public hearing from occurring. Commissioner LARSON complimented the applicant both for efforts in improving the property and for her patience with the rescheduling of the Public Hearing. It was moved by Commissioner KERNS and seconded by Commissioner DISNEY to recommend APPROVAL of Case No. WZ-20-04, a request for approval of a zone change from Agricultural-One (A-1) to Residential-Two (R-2) for property located at 11700 W. 46th Avenue, for the following reasons: 1. The proposed zone change will promote the public health, safety, or welfare of the community and does not result in an adverse effect on the surrounding area. 2. Utility infrastructure adequately services the property. 3. The proposed zone change is consistent with the goals and objectives of the City’s Comprehensive Plan. 4. The zone change will provide additional opportunity for reinvestment in the area. 5. The criteria used to evaluate a zone change supports the request. 6. The R-2 zoning will bring the existing duplex into compliance with the zone district in which it is located. Motion carried 6-0. Planning Commission Minutes - 4 - July 16, 2020 B. Case No. ZOA-20-04: An ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings. Ms. Mikulak gave a brief presentation regarding the ordinance. She described the practical implications of a hearing being continued or rescheduled and described the actions staff take to complete notice. If a meeting is continued to the next business meeting, then the noticing is often a max of 12 or 13 days instead 15 days. Commissioner SIMBAI pointed out a typo in Section 3 on page 2 suggesting subsection e should be b. Ms. Mikulak confirmed this and said the change will be made. Commissioner SIMBAI asked if a reduced time requirement can be established instead of keeping it open ended. Commissioner LARSON agreed with Commissioner SIMBAI and asked for details on what notice would look like for a continued or postponed hearing. In response, Ms. Mikulak said based on the proposed ordinance, there would be sign, letter, website and newspaper notice, but it would not have to be 15 days. The lack of a minimum is not meant to imply that notice will be at the last minute. She described that the City has less control over Transcript deadlines and publication. Commissioner OHM agrees there should be a minimum number of days for noticing and it should be staff driven. He also asked if there has been a poll on where the citizens get their information for Public Hearings and wondered how often the newspaper was the source of information compared with other sources. Ms. Mikulak mention that the newspaper notice is required in the Charter, so it still must be used. Commissioner DISNEY asked if the Transcript is published electronically and what might occur if printed papers become obsolete. She acknowledged that publication requirements have resulted in concerns and criticisms from the public. In response to discussion about the Transcript, Ms. Mikulak noted that the Charter requires a newspaper of general circulation be used, but the City Attorney could provide an interpretation if printed papers ever became obsolete. Planning Commission Minutes - 5 - July 16, 2020 Vivian Vos, resident 6920 W. 47th Place Ms. Vos thinks this is great that City Council and Planning Commission are looking at this and would like to see the 15 days for website noticing and not an open ended time. Zoriana Morozewych, resident 3651 Ward Road Ms. Morozewych also requested a minimum time requirement. She noted the absence of a requirement is too ambiguous and did not think citizens could trust the City to make a good faith effort for noticing. She also does not agree with the change to the legal protest process. Ihor Figlus, resident 9775 W. 36th Avenue Mr. Figlus agrees there needs to be time limits on noticing and thinks the sign posting is most effective. He also does not agree with the change to the legal protest process. Ms. Mikulak addressed the legal protest comments, explaining the process and timing of when a protest is submitted—usually anytime between the Planning Commission hearing and the City Council public hearing. There was discussion about time limits and minimums. In response to questions and discussion, Ms. Mikulak said a minimum would of 7-10 could be appropriate for sign, letter and website notice. She did not recommend a specific minimum for the newspaper publication and noted that the Wheat Ridge Transcript may be merging and could affect their publication schedule. It was moved by Commissioner SIMBAI and seconded by Commissioner DISNEY to recommend APPROVAL of the proposed ordinance amending Chapter 26 of the Wheat Ridge Code of Laws concerning notice requirements for continued and postponed public hearings with the recommendation that City Council adopt a minimum notice threshold with this ordinance amendment. Motion carried 6-0. 7. OLD BUSINESS 8. NEW BUSINESS Planning Commission Minutes - 6 - July 16, 2020 Ms. Mikulak introduced Senior Neighborhood Planner, Jeff Hirt, who started with the City earlier in 2020. He started his career in Wheat Ridge about 15 years ago and has since worked in the public and private sectors. He was hired to design and implement a resident engagement program. Mr. Hirt gave a brief presentation about Let’s Talk, the new resident engagement program which was recommended by the 2019 Neighborhood Revitalization Strategy. Ms. Mikulak added that staff will rely on Planning Commission to help get the word out for events and specifically when the program is in their neighborhoods. The Commissioners were excited about the program and asked about the types of engagement and possible outcomes. Mr. Hirt explained that the design and content is still in process and outcomes could be varied. Some types of engagement will be affected by COVID. In general staff is not coming with any preconceived ideas on issues or outcomes. More information can be seen on www.whatsupwheatridge.com Ms. Mikulak mentioned there will be no August 6 Planning Commission meeting. 10. ADJOURNMENT It was moved by Commissioner ANTOL and seconded by Commissioner KERNS to adjourn the meeting at 8:33 p.m. Motion carried 6-0. __________________________ _______________________________ Scott Ohm, Chair Tammy Odean, Recording Secretary ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 16-2020 – AN ORDINANCE APPROVING THE DISPOSITION OF EXCESS REAL PROPERTY HELD BY THE CITY ADJACENT TO RIDGE ROAD BETWEEN TAFT AND TABOR STREETS PUBLIC HEARING ORDINANCES FOR 1ST READING (07/27/2020) BIDS/MOTIONS ORDINANCES FOR 2ND READING (08/10/2020) RESOLUTIONS QUASI-JUDICIAL: YES NO Community Development Director City Manager ISSUE: The City of Wheat Ridge owns a sliver of real property located on the north side of Ridge Road, between Taft Court and Tabor Street (“the Property”). It essentially functions as additional ROW that has been deemed to be excessive and unnecessary by the Community Development Engineering Division. PRIOR ACTION: Ordinance No. 1653 was passed on August 27, 2018 unanimously by City Council with the intent of vacating any City-held interest in the Property and that the Property revert to the adjacent private owner to the north; however, because the City at that time did not actually own the property, the vacation ordinance was ineffective. The City now owns the subject property, so that process is being repeated. FINANCIAL IMPACT: None. The excess real property is currently owned and maintained by the City of Wheat Ridge. BACKGROUND: On June 23, 2011 the City entered into an Intergovernmental Agreement (“Agreement”) with the Regional Transportation District (“RTD”) for the Gold Line commuter rail project (the 4 Council Action Form – Disposition of Excess Real Property July 27, 2020 Page 2 “Project”). The Agreement stated the rights and obligations of the City and RTD with respect to the Project and the City’s local agency contribution. Section 13.2 of the Agreement specifies that the City will own and maintain all structures and improvements related to the Project or necessary to accommodate the Project. The Property was originally acquired by RTD to allow for grading during the construction of the Ridge Road roadway improvements. Upon completion of the Ridge Road improvements the Property was no longer needed by RTD and identified for disposition to the City. In July of 2017, numerous parcel conveyances from RTD to the City were delivered to the Engineering Division. Among the batch of conveyances was a Quit Claim Deed for a parcel RTD designated as GL-55. Engineering misidentified the Quit Claim Deed as being for the Property, and a ROW Vacation Ordinance was processed and passed by Council. However, the actual and correct RTD designation of the Property is GL-55A, and title to the Property was never actually conveyed prior to the Ordinance. This error has been corrected and RTD has provided a Quit Claim Deed to convey title to the Property to the City. Since the City has no need for the Property, and the Property is needed for development of the adjacent private property to the north, this ordinance repeats the 2018 request to vacate City interest in the Property, and it will be conveyed to the Hance Ranch Development, LLC, a Colorado limited liability company, being the owners of the adjacent land. Staff originally requested that RTD simply convey the land to the property owner, but RTD is prohibited from conveying to a private entity. While this is a longer process than originally conceived, it achieves the same intent of the 2017/2018 conveyances and vacations. The Property proposed for disposition ranges in width from approximately 21 feet on the west end at Taft Court, to 17 feet near the center, to approximately 28 feet on the east end at Tabor Street. The area proposed for disposition is 7,067 square feet (0.162 acres), more or less, and is more particularly described in the Exhibit A attached to the ordinance. RECOMMENDATION: Staff recommends approval of the attached ordinance. RECOMMENDED MOTION: “I move to approve Council Bill No. 16-2020, an ordinance approving the disposition of excess real property held by the City adjacent to Ridge Road between Taft and Tabor Streets, order it published, public hearing set for Monday, August 10, 2020, at 7 p.m. as a virtual meeting, and that it takes effect 15 days after final publication.” Or, “I move to postpone indefinitely Council Bill No. 16-2020, an ordinance approving the disposition of excess real property held by the City adjacent to Ridge Road between Taft and Tabor Streets for the following reason(s) ________________.” Council Action Form – Disposition of Excess Real Property July 27, 2020 Page 3 REPORT PREPARED AND REVIEWED BY: Dave Brossman, Development Review Engineer Lauren Mikulak, Planning Manager Kenneth Johnstone, Community Development Director Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 16-2020 2. Exhibit A - Legal Description ATTACHMENT 1 CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER ___________ Council Bill No. 16 Ordinance No. _________ Series 2020 TITLE: AN ORDINANCE APPROVING THE DISPOSITION OF EXCESS REAL PROPERTY HELD BY THE CITY ADJACENT TO RIDGE ROAD BETWEEN TAFT AND TABOR STREETS WHEREAS, the City of Wheat Ridge, Colorado (“City”) owns certain real property within the City generally located at Ridge Road, between Taft Court and Tabor Street, and more particularly described on the attached Exhibit A; (the “Property”); and WHEREAS, the Property was originally acquired by the Regional Transportation District (RTD) for use in connection with the Gold Line commuter rail project; and WHEREAS, after completion of the project, RTD determined the Property was not necessary for its purposes, and intended to transfer the Property to the City, however this transfer did not take place; and WHEREAS, on August 27, 2018, the City, believing it was in title to the Property as unneeded right-of-way, adopted Ordinance 1653, vacating the same, intending that the Property revert to the adjacent private owner to the north; however, because the City at that time did not actually own the property, the vacation ordinance was ineffective; and WHEREAS, RTD has now conveyed the Property to the City, since under its policies it may not convey to a private entity; and WHEREAS, because the City has no need for the Property, and the Property is needed for development of the adjacent private property to the north, the Council wishes to approve its conveyance to that owner as permitted by the Charter. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO: Section 1. Conveyance of Property Approved. Pursuant to Charter Section 16.5, the City Council hereby approves the conveyance of the real property more particularly described on Exhibit A, attached hereto and incorporated herein by this reference, to Hance Ranch Development, LLC, a Colorado limited liability company, for nominal consideration, and authorizes and directs the Mayor and City Clerk to execute such instruments as required to accomplish the same. Section 2. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 3. Recording. This Ordinance shall be filed for record with the office of the Jefferson County Clerk and Recorder Section 4. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of __ to __ this 27th day of July, 2020, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for August 10, 2020 at 7:00 p.m., as a virtual meeting. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of __ to __ this _____ day of ______________, 2020. SIGNED by the Mayor on this _____ day of ____________, 2020. _________________________ Bud Starker, Mayor ATTEST: _________________________ Steve Kirkpatrick, City Clerk Approved as to Form _________________________ Gerald E. Dahl, City Attorney First Publication: July 30, 2020 Second Publication: August 13, 2020 Jeffco Transcript Effective Date: August 28, 2020 EXHIBIT A The Property LEGAL DESCRIPTION EX H I B I T A AT T A C H M E N T 2 ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: COUNCIL BILL NO. 15-2020 – AN ORDINANCE, REPEALING CHAPTER 16, ARTICLE X "MASSAGE PARLORS" AND REENACTING REGULATION OF MASSAGE BUSINESSES BY AMENDING CHAPTER 11, "LICENSES, PERMITS AND MISCELLANEOUS BUSINESS REGULATIONS", BY THE ADDITION OF A NEW ARTICLE X, ENTITLED "MASSAGE BUSINESSES" AND MAKING CONFORMING AMENDMENTS TO CHAPTER 2, ARTICLE V "ADMINISTRATIVE ENFORCEMENT" AND CHAPTER 26 "ZONING AND DEVELOPMENT" PUBLIC HEARING ORDINANCES FOR 1ST READING (07/27/2020) BIDS/MOTIONS ORDINANCES FOR 2ND READING (08/10/2020) RESOLUTIONS QUASI-JUDICIAL: YES NO ____________________________ ____________________________ Chief of Police City Manager ISSUE: The process of regulation and inspection of massage businesses requires updating in order to protect the health and safety of the community, deter criminal activity such as human trafficking and prostitution, and ensure that legitimate massage businesses within the City are able to thrive. PRIOR ACTION: Council previously enacted article X in its current form and in its entirety on October 22, 2001. In 2015 Council adopted an ordinance amending sections 16-224, 16-225, and 16-226 of the Wheat Ridge Code of Laws, concerning massage parlors, to delete references to obsolete state statutes and clarify statutory authority. Due to numerous changes in the landscape of human trafficking and the use of massage businesses as cover for such, Council was asked by staff in late 2019 for permission to examine how changes in the ordinance could provide avenues to 5 Council Action Form – Massage Businesses July 27, 2020 Page 2 increase the health and safety of community members visiting such establishments, as well as provide law enforcement with practical tools to identify, interdict, and remove illicit massage businesses from the City. Council granted permission to make such an examination, requesting stakeholder involvement in the process. Staff has facilitated a stakeholder meeting, and discussed issues with stakeholders apart from the meeting. Results from these conversations show support for this ordinance from both advocates for the massage therapy industry and local businesses. FINANCIAL IMPACT: The overall financial impact of this ordinance is negligible to both the City and massage therapy businesses. The new ordinance will require massage businesses to obtain a massage business license for $25 annually. Staff propose the fee be waived for the first 30 days after enactment of the ordinance. Solo practitioners are exempted from the new licensing requirements provided they meet certain criteria. BACKGROUND: Subsequent to Council's authorization to look at a revision to the City Code of Laws related to massage oriented businesses, a cross-sectional working group of city staff was formed to examine the issue as completely as possible, and provide guidance in the creation of the new ordinance. With input from staff, the City Attorney crafted an ordinance accounting for all the concerns brought forth. Requirements of the new ordinance include: • All therapists must have a valid Colorado massage therapist license, a copy of which must be available for inspection on-site • The business must operate with a licensed manager on site • The business may not operate between the hours of 9:00 p.m. and 6:00 a.m. • All interior and exterior doors must remain unlocked unless the business is operated as a home occupation or there is only one employee on premise • The business cannot be used for housing, sheltering or harboring any person, unless the business is operated as a home occupation • Employees must be fully clothed • A table shower is prohibited unless it is approved as part of the massage business license issuance • No sexual acts can take place in the course of business. Any such acts must be reported to the Wheat Ridge Police Department • The business must comply with City inspection requests and may not attempt to elude city inspection by exiting out back doors or remaining behind locked doors • Employees of the business must provide identification to the city inspector upon request • The business must maintain a list of all employees and contractors on site including name, position, address, and start date available for inspection • A log of each massage given including, date, time, type of massage and therapist must be maintained and available for inspection onsite • Full compliance with the new ordinance is expected within 90 days of enactment Council Action Form – Massage Businesses July 27, 2020 Page 3 In an effort to understand and be responsive to the concerns of local businesses that will be impacted by any change in the ordinance, staff facilitated a virtual town-hall style meeting to hear questions and provide answers to concerned stakeholders. Every massage therapy business licensed in the City of Wheat Ridge potentially impacted was provided a summary of the proposed changes and an invitation to the virtual meeting (attached). Administrative highlights of the proposed ordinance include: • Massage businesses will be required to obtain two additional city licenses due to the unique nature of the industry. 1. Massage Business License ($25. Free if obtained within 30 days after enactment of the ordinance). 2. Massage Business Manager’s License ($0) • Some businesses are exempt from these regulations. These include state-regulated businesses such as training rooms, medical offices, and chiropractic facilities, as well as solo practitioners who meet specific criteria. • Applications can be denied for various reasons including previous massage license suspensions, revocations, the surrendering of a state issued Massage Therapist License, or a history of criminal activity such as sexual misconduct with a child, prostitution, embezzlement, money laundering, or other crimes raising issues about the character of the applicant. Seven businesses RSVP’d for the virtual meeting that was held at 6:30 p.m. on Wednesday, July 8. One attendee joined the meeting; an industry representative from the American Massage Therapy Association for Colorado. She fully supports this ordinance and when asked directly if there were any portion of the ordinance a legitimate business would have trouble complying with she responded, "no". She did have one suggestion for improvement, and that is to find a way to ensure that illicit businesses are not easily able to switch their practice from “massage” to “reflexology” and a provision to enable staff to respond to that occurrence is included in the proposed ordinance. Staff received a follow up call from a business who had RSVP’d but was unable to attend the meeting to express support for the ordinance. Staff also received written communication from one business owner who shared several concerns about the ordinance and the need to enact this ordinance. Staff continues to communicate with this particular stakeholder to clarify the necessity and rationale for some of the provisions in the new ordinance, as well as acknowledge and address her concerns. Staff is currently developing an outreach and implementation plan that will ensure all current businesses become aware of the ordinance change, and are afforded ample opportunity and assistance by City staff to comply with the new ordinance and incur no out of pocket costs. This plan will be detailed in a staff report at the second reading. Council Action Form – Massage Businesses July 27, 2020 Page 4 RECOMMENDATIONS: Staff recommends approval of the ordinance. RECOMMENDED MOTION: “I move to approve Council Bill No. 15-2020, an ordinance, Repealing Chapter 16, Article X "Massage Parlors" and Reenacting Regulation of Massage Businesses by Amending Chapter 11, "Licenses, Permits and Miscellaneous Business Regulations", by the Addition of a New Article X, Entitled "Massage Businesses" and Making Conforming Amendments to Chapter 2, Article V "Administrative Enforcement" and Chapter 26 "Zoning and Development, on first reading, order it published, public hearing set for Monday, August 10, 2020 at 7:00 p.m., as a virtual meeting, and that it take effect 15 days after final publication.” Or “I move to postpone indefinitely Council Bill No. 15-2020, an ordinance, Repealing Chapter 16, Article X "Massage Parlors" and Reenacting Regulation of Massage Businesses by Amending Chapter 11, "Licenses, Permits and Miscellaneous Business Regulations", by the Addition of a New Article X, Entitled "Massage Businesses" and Making Conforming Amendments to Chapter 2, Article V "Administrative Enforcement" and Chapter 26 "Zoning and Development"” for the following reason(s)_______________.” REPORT PREPARED/REVIEWED BY: Darrel Guadnola, Investigations Commander Dave Pickett, Division Chief Chris Murtha, Chief of Police Allison Scheck, Director of Administrative Services Patrick Goff, City Manager ATTACHMENTS: 1. Council Bill No. 15-2020 2. Massage Therapists FAQ CITY OF WHEAT RIDGE, COLORADO INTRODUCED BY COUNCIL MEMBER ___________ COUNCIL BILL NO. 15 ORDINANCE NO. _________ Series 2020 TITLE: AN ORDINANCE, REPEALING CHAPTER 16, ARTICLE X “MASSAGE PARLORS” AND REENACTING REGULATION OF MASSAGE BUSINESSES BY AMENDING CHAPTER 11, “LICENSES, PERMITS AND MISCELLANEOUS BUSINESS REGULATIONS”, BY THE ADDITION OF A NEW ARTICLE X, ENTITLED “MASSAGE BUSINESSES” AND MAKING CONFORMING AMENDMENTS TO CHAPTER 2, ARTICLE V “ADMINISTRATIVE ENFORCEMENT” AND CHAPTER 26 “ZONING AND DEVELOPMENT” WHEREAS, the City of Wheat Ridge, Colorado, (the "City"), is a home rule municipality, organized and existing under and by virtue of Article XX, Section 6 of the Colorado Constitution; and WHEREAS, Section 12-235-101 et seq., C.R.S., known as the “Massage Therapy Practice Act" ("the Act") regulates the profession of massage therapy to provide for a consistent statewide certification and oversight of massage therapy professionals; and WHEREAS, the Act does not prevent the City from regulating the massage therapy business and the City Council finds that the purpose and intent of this Act was to regulate and protect legitimate massage therapy businesses by requiring persons performing massage therapy to be licensed by the state’s Department of Regulatory Affairs, in order to safeguard and promote the public health, safety and welfare of the citizens of the state; and WHEREAS, the City Council recognizes that massage is a legitimate health care professional activity that provides benefits to the residents of the City; and WHEREAS, the reputation and success of legitimate massage therapy businesses is denigrated and undermined by businesses and individuals who mask their unlawful sexual activities and human trafficking by falsely posing as legitimate massage therapy businesses; and WHEREAS, the City Council finds that the licensing exclusions provided herein to certain businesses are reasonable as they are either currently subject to licensing and regulation by the State of Colorado or they pose a very low risk of engaging in unlawful sexual or human trafficking activities; and WHEREAS, there are currently no massage parlors in the City that will be adversely affected by the repeal of the provisions of Chapter 16, Article X of the City Code (the "Code"). ATTACHMENT 1 -2- NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO THAT: Section l. Chapter 16, Article X of the Wheat Ridge Code of Laws is hereby repealed. Section 2. Chapter 11 of the Wheat Ridge Code of Laws is hereby amended by the addition of a new Article X, entitled Massage Businesses, as follows: ARTICLE X. – MASSAGE BUSINESSES Section 11-230. – Purpose. The purpose of this article is to promote the public health, safety and welfare of the public, including but not limited to its citizens and residents, by regulating and licensing massage businesses. Section 11-231. – Authority. This article is adopted under the authority conferred by §31-15-401(1)(b), C.R.S. to make all regulations necessary or expedient for the promotion of health or suppression of disease and by §31-15-501(1)(c), C.R.S. to license and regulate businesses, and the home-rule authority conferred by Article XX, Section 6 of the Colorado Constitution, . Section 11-232. – Definitions. Except as otherwise indicated by the context, the following words, terms and phrases, shall have the following meanings for purposed of this division: Agent means an individual designated by a publicly held corporation to act on behalf of the corporation under this article. An agent shall be a bona fide resident of Colorado, a citizen or legal resident of the United States, or otherwise authorized to work in the United States. Applicant means an individual acting on behalf of a massage business to apply for a license. Client means an individual who enters into an agreement for massage therapy for a fee, income, or compensation of any kind within the city. Control means the power to direct or cause the direction of the management and policies of an applicant, licensee or controlling person, in any way. Controlling Person means a person directly or indirectly possessing control of an applicant or licensee. Employee means any person who performs any service at a massage business on a full-time, part-time, or contract basis, whether or not the person is designated an employee, independent contractor or otherwise. Employee does not include a person exclusively engaged in the repair or maintenance of the massage business, or for the delivery of goods to the licensee. Inspector means any person authorized by the City Manager to enforce the provisions of this Article. -3- Licensee means the person or entity to whom a massage business license is issued, by the city. Manager means an on-site natural person or persons authorized by the licensee to exercise overall operational control of the business, to supervise employees, or to fulfill any of the functions required of a manager by this article. Massage Business means any place of business where any massage or massage therapy is practiced or administered. The term "massage business" shall not include: (a) Training rooms of public and private schools accredited by the state board of education or approved by the state division charged with the responsibility of approving private occupational schools. (b) Training rooms of recognized professional or amateur athletic teams. (c) Offices, clinics, and other facilities at which medical professionals licensed by the state of Colorado, or any other state, provide massage services to the public in the ordinary course of their medical profession. (d) Medical facilities licensed by the state, including but not limited to hospitals, clinics, nursing and convalescent homes and other similar institutions. (e) Chiropractors licensed by the state and their facilities. (f) Barber shops, beauty salons, and other facilities at which barbers and cosmetologists licensed by the state provide massage services to the public in the ordinary course of their professions. (g) Bona fide athletic clubs not engaged in the practice of providing massage services to their members or to the public for remuneration; for purposes of this definition, if an athletic club does not receive more than 10 percent of its gross income providing massages to its members, or to the public, such shall be prima facie evidence of its status as a bona fide athletic club. (h) A place of business where an individual offers to perform or performs massage therapy: (1) For not more than 72 hours in any six-month period and (2) As part of a public or charity event, the primary purpose of which is not to provide massage therapy. (i) A place of business where a state-licensed massage therapist practices as a solo practitioner, and complies with all required acts and limitations of operation of this section and; (1) Does not use a business name or assumed name; or (2) Uses a business name or an assumed name and provides the massage therapist's full legal name, or license number in each -4- advertisement, and each time the business name or assumed name appears in writing; and (3) Does not maintain or operate a table shower as defined in this section. (j) A place of business which limits its business to offering the following practices performed by persons who: (1) Do not claim expressly or implicitly to be massage therapists; and (2) Limit their work to one or more of the following practices: a. Use touch, words and directed movement to deepen awareness of existing patterns of movement and suggest new possibilities of movement. Such practices include, but are not limited to the Feldenkrais method of somatic education, the "Rolf Institute's Rolf Movement Integration", the Trager approach to movement education, body-mind centering and ortho-bionomy; or use minimal touch over specific points on the body to facilitate balance in the nervous system. Such practices include, but are not limited to Bowenwork; or b. Use touch to affect the energy systems, acupoints or qi meridians (channels of energy) of the human body. Such practices include, but are not limited to acupressure, Asian bodywork therapy, biodynamic craniosacral therapy", jin shin do body-mind acupressure, polarity, polarity therapy, and polarity therapy bodywork, qigong, reiki, shiatsu, and tuina; or c. Use touch to effect change in the structure of the body while engaged in the practice of structural integration. Such practices include, but are not limited to, practitioners of Rolfing structural integration, the Rolf method of structural integration, and Hellerwork; or d. Apply pressure to reflex points on the feet, hands and ears to bring the body into balance, thereby promoting the wellbeing of clients. Such practices include, but are not limited to reflexology; and (3) If any of the practices listed in (2) above have nationally recognized certification available in their particular practice industry, the practitioners shall hold current active certification or recognition by a professional organization or credentialing agency in their respective industry that: a. Requires a minimum level of training specific to the discipline, demonstration of competence, and adherence to an approved scope of practice and ethical standards; and b. Maintains disciplinary procedures to ensure adherence to the requirements of the organization or agency; and -5- c. Provide consumers with contact information for the organization or agency in the practitioner's place of business. Massage or Massage Therapy means a system of structured touch, palpation, or movement of the soft tissue of another person's body in order to enhance or restore the general health and well-being of the recipient. Such system includes, but is not limited to, techniques such as effleurage, commonly called stroking or gliding; petrissage, commonly called kneading; tapotement or percussion; friction; vibration; compression; passive and active stretching within the normal anatomical range of movement; hydro massage; and thermal massage. Such techniques may be applied with or without the aid of lubricants, salt or herbal preparations, water, heat, or a massage device that mimics or enhances the actions possible by human hands. Massage Therapist is an individual that has fulfilled the requirements for state licensure under Section 12-235-101 et seq., C.R.S., and has a valid massage therapist license issued by the state of Colorado to engage in the practice of massage therapy. Mobile Massage Unit means a vehicle or other movable enclosure specifically equipped for a massage therapist to provide massage therapy inside the vehicle or enclosure. Sexual Act means sexual contact, sexual intrusion, or sexual penetration as defined in Section 18-3-401, C.R.S. Spa Establishment means a commercial massage business that offers or engages in personal services that call for the patron to disrobe, such as body wraps, hydro mineral wraps, body polish, body wash, baths and hydro tub soak. Table Shower or Vichy Shower means an apparatus for the bathing or massaging of a person on a table or in a tub. Section 11-233. Licenses generally; minimum requirements. The licenses required by this article are in addition to any other applicable licenses or permits required by the city, county or state. Massage facilities licensed under this article shall comply with all other applicable city ordinances and laws, including the city zoning ordinances. Section 11-234. Licenses required. (a) No person or entity shall be permitted to operate a massage business in the city without a valid massage business license in addition to the business license required by Chapter 11, Article II. Additionally, no person or entity shall be permitted to operate such massage business without a licensed manager on site at all times, except as provided in (c) below. A massage business may obtain manager’s licenses for more than one individual. (b) No person shall be permitted to work as a manager of a massage business without a valid massage business manager's license. -6- (c) An individual massage therapist operating a massage business as a solo practitioner is not required to obtain a massage business manager's license. Section 11-235. Application. (a) In addition to the requirements of this Chapter and Chapter 11, Article II, each application for a massage business license shall contain the following information: (1) If the applicant is an individual; satisfactory proof that he or she is 18 years of age or older. (2) If the applicant is a legal entity; satisfactory proof that each of the individual officers, directors, managers, partners, members, principal owners, and/or anyone with 10 percent or more financial interest of such entity are 18 years or older. (3) Whether the applicant, or any of the other individuals required to be listed· in the application, have been convicted of, or plead "nolo contendere" to, a felony or misdemeanor, in any federal, state or municipal court in any of the United States jurisdictions or possessions, for prostitution, solicitation of prostitution, fraud, theft, embezzlement, money laundering or similar crimes. Failure to disclose any criminal conviction may result in denial of the license application. (4) Whether the applicant, or any of the other individuals required to be listed in the application, has had a previous license under this or any other similar massage business ordinance from another jurisdiction or possession of the United States, denied, suspended, or revoked, and, if so, the name and location of the massage business for which such license was denied, suspended, or revoked, as well as the date of such denial, suspension, or revocation. (5) Whether the applicant, or any of the other individuals required to be listed in the application, has been an officer, director, manager, partner, member, and/or principal owner of any legal entity which currently or previously operates or operated a massage business or business meeting the definition of massage business in this article and the name, dates of operation and location of such business or businesses. (6) Satisfactory proof of the applicant's ownership or right to possession of the premises wherein the massage business will be operated. The applicant shall have a continuing obligation to provide, where applicable, subsequent evidence of the right to possession of the premises. (b) The applicant for a massage business manager's license shall submit an application for a manager's license on a form prescribed by the city -7- treasurer and filed at the offices of the city treasurer, which shall contain the following information: (1) If the applicant is an individual; satisfactory proof that he or she is 18 years of age or older. (2) The applicant's name, address, date of birth, and telephone number. If the applicant is a licensed massage therapist, the state massage therapy license number. (3) Whether the applicant or any of the other individuals required to be listed in the application meet the requirements specified in paragraph (a) above and, if the applicant or any other person listed in the application have been involved in a criminal act as described in paragraph(a) above, the date and place of conviction, and the disposition. (4) Any disciplinary actions taken by any state or local massage therapy board or criminal convictions for violations of a massage therapy practice act in any jurisdiction or possession of the United States, and the result of such disciplinary actions, whether the applicant is a licensed massage therapist or not. Section 11-236. Review by other departments. (a) Prior to the issuance of any massage business license or a massage business manager's license, the corresponding application shall be submitted to the Police Department for review and comment. The Police Department shall provide any relevant and available information as to whether the applicant and each of the individuals required to be listed in the corresponding license application meet the requirements in section 11-235. Such review shall be completed within 20 days after the license application is submitted. (b) The Police Department shall only be required to provide the information specified in subsection (a) of this section and shall not be authorized to approve or disapprove any license application. Section 11-237. Issuance; denial. (a) If after an investigation, the city treasurer finds, in addition to any findings required by section 11-25, that the individual applicant and each of the individuals required to be listed in the massage business license application meet the requirements in subsection 11-235(a) and: (1) Are 18 years of age or older; and (2) Shall not; (a) have voluntarily surrendered any license to practice as a massage therapist or operate a massage business as a result of, or while, under civil or criminal investigation; or (b) have had a license to practice as a massage therapist or operate a massage -8- business or similar license, denied or revoked by the State of Colorado or a political subdivision of Colorado, or a regulatory board in another United States jurisdiction or possession, for an act that occurred in that jurisdiction or possession that would be a violation under this article; and (3) Shall not be a registered sex offender or required by law to register as a sex offender; and (4) Shall not have any prior conviction for an offense involving sexual misconduct with a child, including sexual abuse, sexual assault, sexual conduct, sexual molestation and sexual exploitation; and (5) Subject to the requirements of Section 24-5-101, C.R.S., shall not have any prior convictions or pending violations for any crimes, including but not limited to prostitution, or of operating a prostitution enterprise, theft, embezzlement, or money laundering; and (6) The location where the license is applied for has not had a similar license revoked or surrendered for cause within the last 24 months; and (7) The character, record, or reputation of the applicant, his or her agent, or his or her principal does not indicate that potential violations of this chapter are likely to occur if a license is issued to the applicant. Then he or she shall, within 30 days following receipt of the, license application, approve the issuance of massage business license to the applicant for use at the location identified in the license application as the situs of the business. In the event of a denial the treasurer shall explain with reasonable details in writing the reason for the denial and the applicant’s rights to a hearing under section 11-32. (b) If, after investigation, the treasurer finds, in addition to the findings required by section 11-25(a), that: (1) The applicant for a massage business manager's license meets all the requirements of subsection 11-235(b); and (2) If the applicant will be performing massage or massage therapy, the applicant has completed all requirements of section 12-235-101 et seq., C.R.S, and holds a valid state massage therapist license. Then he or she shall, within 30 days following receipt of the license application, issue a manager's license to the applicant. (c) Upon the sale or transfer of any interest in a massage business, the license issued pursuant to this article shall be null and void, and a new application shall be required. -9- Section 11-238. Temporary license. (a) The treasurer may issue a temporary massage business license upon receipt of a complete massage business license application involving the sale or change in ownership of a business. Such license shall be issued for 30 days and renewed every 30 days until approval or denial of the massage business license. (b) The treasurer may issue a temporary massage business manager license upon receipt of a complete massage manager license application upon sale, change of ownership, or change of manager of an existing licensed massage business. Such license shall be issued for 30 days and may be renewed for good cause for additional 30-day periods at the discretion of the treasurer. Section 11-239. Limitations on operation. It shall be unlawful for any person or entity in the business of operating a massage business or any manager or employee thereof: (a) To operate a massage business without a valid massage business license or with a license that has been suspended, revoked, or expired. (b) To employ any person to act as a manager at a massage business who is not licensed as a manager or a licensed owner. (c) To be open for business for the practice of massage therapy without a massage therapist on the premises that has been licensed in accordance with section 12-235-101, et seq., C.R.S.. (d) To operate or maintain a table shower or Vichy shower on the premises unless permission to operate a table shower was approved as part of its massage business license. (e) To permit a licensed massage business to be used for housing, sheltering, or harboring any person(s), or as living or sleeping quarters for any person(s). The owner and family members of a massage business operated as a home occupation, as defined by this Code, are exempt from this prohibition. (f) To massage any other person, or give or administer any bath or baths, including table showers or Vichy showers, in a manner intended to arouse, appeal to, or gratify the lust or passions, or sexual desires of such other person. In no case shall the employee intentionally touch either the male or female genitalia of the client. (g) To allow any employee to provide massage therapy or other massage services without being fully clothed. For purposes of this subsection, employee clothing shall be of a fully opaque, nontransparent material that shall not expose the employee's genitals, pubic region, buttocks, or breasts below a point one inch above the top of the areola, or substantially expose the employee's undergarments. -10- (h) To require client nudity as part of any massage service without the client's prior consent. (i) To use or possess adult-oriented merchandise, including sex toys, sexual aids, vaginal or anal lubricant, or any contraceptive item, in any part of a massage business. (j) To permit any individual, including a client, student, contractor, or employee, to engage in any sexual act in the massage business. (k) To fail to immediately report to the Wheat Ridge Police Department any disorderly conduct, sexual acts, or other criminal activity occurring on or within the licensed premises. (l) To make an agreement, or to permit any individual to make an agreement with an employee, to engage in sexual activity in any other location, in violation of Section 16-201 or 16-202. (m) To conceal persons in the business or to elude city inspectors, by exiting side or back doors or remaining behind locked doors during an inspection. (n) To refuse to provide identification to city inspectors or law enforcement, (o) To perform or permit anyone to perform massage without a valid massage therapists license issued under section 12-235-101, et seq., C.R.S.. (p) To perform or permit anyone to perform massage on a patron under the age of eighteen (18) years, unless such patron is accompanied by his or her parent or legal guardian, has a physician's prescription for such massage services, or has a letter from his or her parent or legal guardian authorizing such services. (q) To operate the business between the hours of 9:00 p.m. and 6:00 a.m.. Section 11-240. Required Acts. (a) Every licensed massage business is required to: (1) Maintain a current and up-to-date list of employees and contractors on site including start dates of employment or contracted service, full legal name, date of birth, home address and telephone number, employment position, date first began employment or service, and the date when services were terminated if applicable. (2) Maintain a copy of each massage therapist's Colorado license for each employee and contractor performing massages. (3) Maintain a complete set of records to include a log of all massage or massage therapy administered at the business. The log shall -11- contain the following information: date, time and type of each massage therapy administered, and name of the employee administering the massage therapy. The log shall be retained for a minimum of one year following any massage therapy. The massage therapy log shall be subject to inspection upon request by the inspector, during normal business hours in compliance with applicable law. (4) Operate under or conduct business under only the designation specified in the license. (5) List the address of the business in any advertisement. (6) Ensure that massage facilities interior and exterior doors remain unlocked while the massage business is open. The exception to this requirement is as follows: The exterior doors may remain locked if (i) the massage business is operated as a home occupation or (ii) during the time period when only one employee is present in the business. (7) Display at all times in a prominent place on the licensed premises a printed card with a minimum height of fourteen (14) inches and a width of eleven (11) inches with each letter a minimum of one-half (½) inch in height, which shall read as follows: WARNING IT IS ILLEGAL FOR ANY PERSON TO ALLOW A PERSON UNDER EIGHTEEN YEARS OF AGE TO BE IN OR UPON THESE PREMISES AT ANY TIME, UNLESS THE MINOR IS AUTHORIZED OR ACCOMPANIED BY A PARENT OR LEGAL GUARDIAN, OR HAS A PHYSICIAN'S PRESCRIPTION FOR SUCH MASSAGE SERVICES. FINES OR IMPRISONMENT MAY BE IMPOSED BY THE COURTS FOR VIOLATION OF THESE PROVISIONS UNDER THE WHEAT RIDGE CODE OF LAWS. (b) All employees, contractors, and other individuals, excluding clients, present in the massage business must have valid government identification in one of the following forms and must immediately present such identification upon request of an inspector or law enforcement personnel: (1) An operator's, chauffeur's or similar type of driver's license issued by any state, any U.S. Territory, or any foreign country including Canada and Mexico; or (2) An identification card issued by any state for the purpose of proof of age as in accordance with section 42-2-302 and 42-2-303 C.R.S.; or -12- (3) A military identification card; or (4) A passport; or (5) An alien registration card; or (6) A valid employment authorization document issued by the U.S. Department of Homeland Security; or (7) A valid consular identification card from any foreign country. (c) Massage therapists shall remain fully clothed, as described in section 11-239(g), while administering massage or otherwise visible to clients on business premises, including premises designated by the client through an outcall massage service. Section 11-241. Inspections. (a) No owner, manager, massage therapist, or employee shall fail to immediately grant full massage business access any time such establishment is occupied or open or business, to a licensing administrator, authorized inspector, law enforcement officer, or any other person authorized or required by law to inspect the massage business. (b) All rooms, cabinets, storage areas shall be subject to inspection and any locked rooms, cabinets or storage areas shall be promptly opened for inspection. (c) No owner, manager, massage therapist, or employee shall fail to immediately grant access to the log of all massage therapy administered at the business, as required in Section 11-240(a)(3), to a licensing administrator, authorized inspector, law enforcement officer, or any other person authorized or required by law to inspect the massage business, without unreasonable delay. (d) Inspectors may request to review the massage therapist license issued by the State at any time during an inspection for the massage therapists, managers, or massage therapist employed as contractors. (e) All owners, managers, massage therapists, employees, contractors or persons occupying the business, other than clients, shall present identification and shall not elude identification. Section 11-242. Table or Vichy showers. (a) In order to operate or maintain a table or Vichy shower on or about the licensed premises, such device must be specifically allowed as a permitted device on the massage business license. (b) The treasurer may approve the use of a table or Vichy shower in the license if the following conditions are met: (1) The shower is commercial and professional in nature, manufactured with industrial grade materials, and is designed -13- solely for the purpose of massage utilizing multiple overhead spray nozzles. Massage bathtubs and tables with accessory sprayers shall not qualify; and (2) The business practices appropriate draping of a shower client, to include draping of the buttocks and genitalia of all clients, unless the client gives specific written consent to be undraped. (c) If the treasurer has reason to believe that there is a failure to comply with the conditions in subsection (b) of this section, the treasurer shall provide licensee with written notice that permission to operate a table or Vichy shower as part of its license is terminated and the business shall not be allowed to operate such shower. (d) The licensee may appeal the termination or denial of shower use in accordance with section 11-32. Section 11-243. Enforcement processes for revocation or suspension of licenses. (a) Administrative suspension or revocation. In addition to any reason set forth in sections 11-30 and 11-31, and notwithstanding any provision of this Chapter to the contrary, the city treasurer or the treasurer’s designee may suspend or revoke a massage business license or a massage business manager’s license, under the provisions of Article V of Chapter 2, if he or she finds that: (1) The licensee has committed a violation of any section of this Article X; or (2) Any employee or contractor required by this Article to possess a valid massage therapist license obtained their license through fraud, deceit or misrepresentation, or the state has revoked said massage therapy license. (b) Summary suspension or revocation. (1) Grounds. Notwithstanding any provision of Article II. of this Chapter or the notice provisions of Chapter 2, Article V. to the contrary, the city treasurer or the treasurer’s designee may summarily suspend a massage business license or a massage business manager’s license, upon a finding that: A. The licensee willfully failed to disclose any information as required in section 11-235; or B. The licensee knowingly permitting a person to perform massage therapy when licensee should have reasonably known that such person was not licensed in accordance with section 12-235-101, et seq., C.R.S.; or C. A pattern of credible facts emerges that the business is attempting to operate a prostitution enterprise whether or not there is a violation of any other specific law, rule, or code; or -14- D. A pattern of credible facts emerges that the licensee knowingly concealed persons within the business premises or permitted employees or contractors to elude inspection; or E. A pattern of credible facts emerges that a person who was not licensed in accordance with section 12-235-101, et seq., C.R.S., and did not possess a valid massage therapist license performed massage at the licensed premises; or F. The licensee failed to permit an inspection any time the business is occupied or open for business; or G. For a business not possessing a valid massage business license, the licensee has had a license revoked for cause anytime within the prior twenty-four (24) months for the same or a substantially similar business either in the city or in another jurisdiction. (2) Process. Upon a finding that one or more grounds exist for the summary suspension of a massage business license or a massage business manager’s license, the city treasurer shall: A. Cause a notice of summary suspension of license to be served upon the licensee. The notice shall provide for a hearing to be held within fifteen (15) business days to determine whether the suspension should be terminated or continued or whether the license should be revoked; and B. Post a sign upon the licensed premises that the massage business is closed to the public until further notice. (3) Hearing. The hearing on the summary suspension of a license shall be held pursuant to section 2-88 of this Code. Notwithstanding the provision of Sec. 2-88(e), the administrative hearing officer is authorized to decide if the license under summary suspension should be revoked. (4) Appeal. Final decisions of the administration hearing officer may be appealed to the district court of Jefferson County. (5) Additional enforcement remedy. Any massage business found to be operating without the licenses required by Section 11-234 or that continues operating after receiving a notice of summary suspension under subsection 11-243(b), above, is hereby declared to be a nuisance and may be abated pursuant to the provisions of Chapter 15 of this Code. Section 11-244. Supplemental provisions. The city treasurer or the treasurer’s designee, at his or her discretion, may: (a) Promulgate rules for approving professional organizations or credentialing agencies; and -15- (b) Verify exempt status of individuals, in keeping with the intent of this Article; and (c) Exempt additional practices from the requirements of this ordinance; and (d) Determine that a practice defined as excluded under the Definition of Massage Business, herein, is no longer exempt, if there is a continued pattern of criminal behavior regarding sexual misconduct or criminal intent that is related to human trafficking disguised as a legitimate exemption. Section 11-245. Fees. The application and annual license fees for a massage business license and a massage business manager’s license shall be established by the city manager or the manager’s designee as part of the annual budget process. Section 3. Section 2-80 of the Wheat Ridge Code of Laws is hereby amended, as follows: Sec. 2-80. - Purpose; scope. The purpose of this article is to encourage prompt compliance with this Code and prompt payment of penalties for violations thereof. This article provides for administrative penalties that may be imposed for violation of the following portions of this Code: Chapter 5, Buildings and Building Regulations; Chapter 9, Health; Chapter 13, Motor Vehicles and Traffic; Chapter 15, Nuisances; Article X of Chapter 11 concerning Massage BUSINESSES Chapter 16, Concerning Massage Parlors, but not to include the balance of Chapter 16, Miscellaneous Offenses; Chapter 21, Streets and Sidewalks; Chapter 22, Taxation; Chapter 24, Vegetation; Chapter 26, Zoning. Section 4. Subsection 11-32(f) of the Wheat Ridge Code of Laws is hereby repealed. Section 5. Section 15-16 of the Wheat Ridge Code of Laws is hereby amended, by the addition of the following subsection: Sec. 15-16. - Offensive trade or business. . . . (7) Certain Massage Businesses. A massage business that is operating without possessing the licenses required by Section 11-234 of this Code, or that continues to operate after receiving a notice of summary suspension under Section 11-243(b) of this Code. Section 6. Section 26-123 of the Wheat Ridge Code of Laws is hereby amended, as follows: -16- Section 26-123. - Definitions. For the purpose of this zoning code, and as used or referred to in other sections, chapters or articles of the Wheat Ridge Code of Laws, unless specifically defined otherwise, the following words and terms are defined as follows. Words used in the present tense include the future; words in the singular number include the plural, and words in the plural number include the singular; the word "building" includes the word "structure" and the word "shall" is mandatory and not directory. Any word or term used in this chapter not specifically defined BELOWabove shall be interpreted as that word is defined elsewhere in the Wheat Ridge Code of Laws, or if not defined elsewhere in the Code of Laws, as defined in Colorado Revised Statutes, or if not defined in the statutes, as defined in Webster's Dictionary. Section 7. The Table of Uses – Commercial and Industrial Districts contained in Section 26-204 is hereby amended, as follows: Uses Notes NC RC C-1 C-2 I-E Massage parlor P Massage therapist See Chapter 11, Article 10 Code of Laws for additional restrictions P P P P P Massage therapy center See Chapter 11, Article 10 Code of Laws for additional restriction P P P P P MASSAGE BUSINESS See Chapter 11, Article X, Code of Laws for additional restrictions P P P P P Section 8. Subparagraph A.11.l. of Section 26-613 is hereby amended, as follows: Sec. 26-613. Home occupations. . . . 11. Home occupations are limited to the following business or commercial activities: . . . l. Massage therapist, restricted to one (1) practitioner, POSSESSING A CURRENTLY VALID MASSAGE THERAPIST LICENSE ISSUED BY THE STATE OF COLORADO PURSUANT TO SECTION 12-235-101. ET. SEQ., C.R.S. AND subject to the restrictions of Chapter 11, Article X of the Code of Laws. -17- m. Other similar uses as approved by the director of community development or board of adjustment and when in conformance with the standards and requirements set forth herein. Section 9. Severability, Conflicting Ordinances Repealed. If any section, subsection or clause of this Ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. All other ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. Section 10. Compliance Required – Schedule. Massage businesses, holding valid business licenses issued under Article II. of Chapter 11 of the Wheat Ridge Municipal Code on the date of final passage of this Ordinance, shall come into full compliance with the requirements of this ordinance within ninety (90) days after the effective date of this ordinance. Such businesses will be exempt from the payment of fees for their massage business license if they apply within thirty (30) days after the effective date of this ordinance. Except as specifically described in this Section 10, the requirements of this Ordinance shall apply to all new or currently unlicensed massage businesses upon the effective date of this Ordinance. Section 11. Effective Date. This Ordinance shall take effect fifteen (15) days after final publication, as provided by Section 5.11 of the Charter. INTRODUCED, READ, AND ADOPTED on first reading by a vote of ___ to ___ on this 27th day of July, 2020, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge, and Public Hearing and consideration on final passage set for August 10, 2020 at 7:00 p.m., as a virtual meeting. READ, ADOPTED AND ORDERED PUBLISHED on second and final reading by a vote of ___ to ___, this _____ day of ______________, 2020. SIGNED by the Mayor on this _____ day of ____________, 2020. __________________________ Bud Starker, Mayor ATTEST: Steve Kirkpatrick, City Clerk Approved as to Form Gerald E. Dahl, City Attorney -18- 1st publication: July 30, 2020 2nd publication: August 13, 2020 Jeffco Transcript: Effective Date: August 28, 2020 City of Wheat Ridge Municipal Building 7500 W. 29th Ave. Wheat Ridge, CO 80033-8001 P: 303.235.2819 F: 303.234.5924 New Regulations Pertaining to Massage Businesses in Wheat Ridge Purpose At City Council’s direction, City of Wheat Ridge staff has been working to draft updated regulations to ensure massage therapy services are provided to the public safely and consistently by statewide certified professionals. City Council and staff recognize that massage is a legitimate health care professional activity that provides benefits to the residents and visitors of the City. Unfortunately, it is known regionally that some businesses posing as legitimate massage facilities conduct illicit activities such as prostitution and human trafficking, and that some employees conducting massage therapy are not properly licensed professionals. The purpose of these proposed regulations is to encourage legitimate massage businesses to thrive while protecting the health and safety of Wheat Ridge residents and visitors, and promote Wheat Ridge as a place for exceptional businesses. Changes to Licensing Under the new ordinance, Massage Businesses will be required to obtain the following two licenses: 1.Massage Business License (Proposed fee $25) 2.Massage Business Manager’s License (Proposed fee $0) These licenses are in addition to a City of Wheat Ridge Business License (currently $20). Massage businesses will have ninety (90) days after the effective date of the regulations’ adoption by ordinance in which to obtain their massage business and massage business manager(s) license. All three license renewal applications will be due annually by January 31st. What is a Massage Business License? The purpose of the Massage Business License is to ensure that the unique requirements to operate this type of personal services business are met. The application information required for this license will include confirmation of ownership [owners with more than a 10% interest] eligibility and will check for possession of, or permission for use of, the premises as a massage business (title documents, lease, etc.) A completed application will also include the names and state massage therapy license numbers of all therapists practicing at the business location. Finally, the license will ask about any criminal or disciplinary history related to a massage business. What is a Massage Business Manager’s License? The Massage Business Manager’s License is required for each on-site manager. The application will collect information about the applicant so that a background check can be conducted. Each business subject to the code will be required to have an on-site manager during hours of operation. There is no limit to the number of manager's licenses a business can have, and the city does not charge a fee for a manager's license. An individual massage therapist operating a massage business as a solo practitioner is not required to obtain a massage business manager’s license. www.ci.wheatridge.co.us ATTACHMENT 2 06/24/2020 Page 2 of 3 Are any businesses where massage is performed exempt from these licensing regulations? Yes. Some businesses are exempt including: •State-regulated businesses including training rooms, medical offices and chiropractors facilities •Solo practitioners who do not use an assumed name, or use a DBA name but provide the massage therapist’s full legal name and license number in each advertisement or when the name appears in writing What are the reasons my application could be denied? A massage business application can be denied for the following reasons: •Previous or pending criminal investigations which led to the suspension, revocation or voluntary surrendering of the state issued Massage Therapist License. •If the criminal investigation on any owner or manager reveals certain crimes, such as: o Sexual misconduct with a child o Prostitution o Embezzlement o Money laundering o Other crimes that would raise a question about the character of the individual •Insufficient proof of state massage therapist license •If the physical location of the business has had a massage business license revoked or surrendered for cause within the last 24 months. What requirements are included in the new regulations? •All therapists must have a valid Colorado massage therapist license, a copy of which must be available for inspection on-site •The business must operate with a licensed manager on site •The business may not operate between the hours of 9:00 p.m. and 6:00 a.m. •All interior and exterior doors must remain unlocked unless the business is operated as a home occupation or there is only one employee on premise •The business cannot be used for housing, sheltering or harboring any person, unless the business is operated as a home occupation •Employees must be fully clothed •A table shower is prohibited unless it is approved as part of the massage business license issuance •No sexual acts can take place in the course of business. Any such acts must be reported to the Wheat Ridge Police Department •The business must comply with City inspection requests and may not attempt to elude city inspection by exiting out back doors or remaining behind locked doors •Employees of the business must provide identification to the city inspector upon request •The business must maintain a list of all employees and contractors on site including name, position, address, and start date available for inspection •A log of each massage given including, date, time, type of massage and therapist must be maintained and available for inspection onsite 06/24/2020 Page 3 of 3 What are the next steps in the process? •The draft ordinance containing the revised and additional regulations will be submitted to City Council for consideration and vote. If the ordinance passes, Council will set an enactment date •The City will reach out to each business currently classified as a massage business to inform business owners of the enactment date, pertinent details of the final ordinance and to supply business owners with all applicable forms •Full compliance is expected within 90 days of the enactment date. To help facilitate easy application and as a thank you for cooperation and input, the City will waive all Massage Business License fees for any application which is received within 30 days of the effective date. Who do I contact with questions or feedback? Please reach out to Travis Anderson, Revenue Auditor, at 303-235-2825 or TAnderson@ci.wheatridge.co.us with any questions or to provide feedback on these proposed changes. ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: MOTION TO ACCEPT THE 2019 FINANCIAL STATEMENTS FROM CLIFTONLARSONALLEN PUBLIC HEARING ORDINANCES FOR 1ST READING BIDS/MOTIONS ORDINANCES FOR 2ND READING RESOLUTIONS QUASI-JUDICIAL: YES NO ____________________________ _______ Administrative Services Director City Manager ISSUE: Section 10.15 of the Municipal Charter for the City of Wheat Ridge requires that an independent audit be performed annually of all City accounts. In addition, in 2019, the City received more than $750,000 in federal funds for Wadsworth Boulevard which triggered a “single audit” of all federal funds. The CPA firm CliftonLarsonAllen (CLA) performed both the City and federal audits of the City’s financial statements for the year ended December 31, 2019. Once again this year, the City received an unqualified opinion. A representative from CLA will be at the July 27, 2020 City Council meeting to present the 2019 Financial Statements to Council for acceptance. PRIOR ACTION: None FINANCIAL IMPACT: The contract for audit services with CLA is for an amount of $41,000 inclusive of the single audit for federal funds received and expended. BACKGROUND: The following conclusions were reached as a result of the audit and can be found under “Significant Audit Findings”: 6 Council Action Form – 2019 Financial Audit July 27, 2020 Page 2 Accounting Policies 1. “No new accounting policies were adopted and the application of existing policies was not changed during 2019.” 2. “We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements proper period.” Accounting Estimates “We evaluated the key factors and assumptions used to develop these estimates in determining they are reasonable in relation to the financial statements taken as a whole.” Financial Statement Disclosures “The financial statement disclosures are neutral, consistent and clear.” Uncorrected Misstatements “Management did not identify and we did not notify them of any uncorrected financial statement misstatements.” Corrected Misstatements Four misstatements were detected as a result of audit procedures and were corrected by management and are listed on page 2 of the Governance Communication to Mayor and Council. Difficulties Encountered in Performing the Audit “We encountered no significant difficulties in dealing with management in performing and completing our audit.” Disagreements with Management “No such disagreements arose during our audit.” RECOMMENDED MOTION: “I move to accept the 2019 Financial Statements from CliftonLarsonAllen.” Or, “I move to deny the acceptance of the 2019 Financial Statements from CliftonLarsonAllen for the following reason(s) ___________________” REPORT PREPARED AND REVIEWED BY: Mark Colvin, Finance Manager Allison Scheck, Administrative Services Director Patrick Goff, City Manager ATTACHMENTS: 1. 2019 Financial Statements Council Action Form – 2019 Financial Audit July 27, 2020 Page 3 2. Wheat Ridge Management Letter 3. Wheat Ridge Governance Communication 2019 ANNUAL FINANCIAL REPORT ATTACHMENT 1 CITY OF WHEAT RIDGE FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2019 CITY OF WHEAT RIDGE TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2019 Introductory Section  City Officials I  Financial Section  Independent Auditors’ Report 1  Management’s Discussion and Analysis 4  Basic Financial Statements  Statement of Net Position 15  Statement of Activities 16  Balance Sheet – Governmental Funds 17  Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 18  Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 19  Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20  Notes to Financial Statements 21  Required Supplementary Information  Budgetary Comparison Schedule – General Fund 38  Budgetary Comparison Schedule – Open Space Fund 39  Budgetary Comparison Schedule – Investing 4 the Future Fund 40  Notes to Required Supplementary Information 41  Supplementary Information  Combining Balance Sheet Nonmajor Funds 43  Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 44  Budgetary Comparison Schedule – Police Investigation Fund 45  CITY OF WHEAT RIDGE TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2019 Budgetary Comparison Schedule – Municipal Court Fund 46  Budgetary Comparison Schedule – Conservation Trust Fund 47  Budgetary Comparison Schedule – Recreation Center Operating Fund 48  Budgetary Comparison Schedule – Crime Prevention Fund 49  Budgetary Comparison Schedule – Public Art Fund 50  Budgetary Comparison Schedule – Equipment Replacement Fund 51  Budgetary Comparison Schedule – Capital Projects Fund 52  Balance Sheet –Component Unit 53  Statement of Revenues, Expenditures, and Changes in Fund Balance Component Unit 54  Budgetary Comparison Schedule – Wheat Ridge Urban Renewal Authority 55  State Compliance  Local Highway Finance Report 55  Federal Compliance – Single Audit  Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 58  Independent Auditors’ Report on Compliance For Each Major Federal Program and Report on Internal Control Over Compliance Required by the Uniform Guidance 60  Schedule of Expenditures of Federal Awards 62  Notes to the Schedule of Expenditures of Federal Awards 63  Schedule of Findings and Questioned Costs 64  INTRODUCTORY SECTION CITY OF WHEAT RIDGE CITY OFFICIALS DECEMBER 31, 2019 (I) MAYOR Bud Starker CITY COUNCIL District 1 District 2 District 3 District 4 Judy Hutchinson Zachary Urban Korey Stites Leah Dozeman Janeece Hoppe Rachel Hultin Amanda Weaver Valerie Nosler Beck CITY CLERK Stephen Kirkpatrick MUNICIPAL JUDGE Christopher Randall CITY TREASURER Christopher Miller CITY ATTORNEY Gerald Dahl CITY MANAGER Patrick Goff DIRECTOR OF ADMINISTRATIVE SERVICES Allison Scheck DIRECTOR OF COMMUNITY DEVELOPMENT Kenneth Johnstone DIRECTOR OF PARKS & RECREATION Karen O’Donnell DIRECTOR OF PUBLIC WORKS Greg Knudson CHIEF OF POLICE Christopher Murtha FINANCE MANAGER Mark Colvin HUMAN RESOURCES MANAGER Michael Clasen PURCHASING AND CONTRACTING AGENT Jennifer Nellis FINANCIAL SECTION (1) INDEPENDENT AUDITORS’ REPORT Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (2) Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado as of December 31, 2019, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the budgetary comparison schedules on pages 4-13 and 38-41 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Wheat Ridge, Colorado’s basic financial statements. The combining and individual fund statements and schedules and the local highway finance report are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), is also presented for purposes of additional analysis and is not a required part of the basic financial statements. The combining and individual fund statements and schedules, the local highway finance report, and the schedule of expenditures of federal awards are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (3) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 21, 2020, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. a CliftonLarsonAllen LLP Broomfield, Colorado July 21 2020 CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (4) As management of the City of Wheat Ridge, we offer this narrative overview and analysis of the financial activities of the City of Wheat Ridge for the fiscal year ended December 31, 2019. Please read it in conjunction with the City’s financial statements, which follow this section. Financial Highlights  The assets of the City of Wheat Ridge exceeded its liabilities and deferred inflows of resources at the close of fiscal year 2019 by $90.3 million (net position). Of this amount, $12.3 million (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.  At the close of fiscal year 2019, the City of Wheat Ridge’s governmental funds reported combined ending fund balances of $38.0 million, a decrease of approximately $11.6 million compared to the prior year. Approximately $10.7 million (28%), is available for spending at the City’s discretion (unassigned fund balance).  At the end of the fiscal year 2019, unassigned fund balance for the General Fund was $10.7 million, or 31% of total General Fund expenditures.  General Fund actual revenues were $0.3 million less than final budgeted revenue for the fiscal year 2019 and actual expenditures were $2.1 million less than final budgeted expenditures. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Wheat Ridge’s basic financial statements. The basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements report information on all activities of the City and its component unit (Wheat Ridge Urban Renewal Authority). The statement of net position includes all of the City’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The statement of net position presents information on all of the City of Wheat Ridge’s assets, liabilities, and deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Wheat Ridge is improving or deteriorating. The statement of activities presents information showing how the City of Wheat Ridge’s net position changed during fiscal year 2019. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses reported in this statement for some items will result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (5) The government-wide financial statements include not only the City itself, but also the legally separate Wheat Ridge Urban Renewal Authority for which the City is financially accountable. The governmental activities of the City include general government, economic development, community development, police, public works, and parks and recreation. Fund financial statements. The fund financial statements provide more detailed information about the City’s most significant funds – not the City as a whole. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes.  Some funds are required by State law (like the Police Investigation Fund).  The City Council establishes other funds to control and manage money for particular purposes (like the Public Art Fund) or to show that it is properly using certain taxes and grants (like the Conservation Trust Fund). The City has one type of fund: Governmental funds – All of the City’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps determine whether or not there are more or fewer financial resources that can be spent in the near future to finance the City’s programs. Because this information does not encompass the additional long-term focus of the government-wide statements, additional information on the subsequent pages is provided to explain the relationship (or differences) between them. Financial Analysis of the City as a Whole Net position. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City of Wheat Ridge, assets exceeded liabilities and deferred inflows of resources by $90.3 million at the close of the 2019 fiscal year. By far the largest portion of the City of Wheat Ridge’s net position (70%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Wheat Ridge uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City of Wheat Ridge’s net position (17%) represents resources that are subject to external restrictions on how they may be used (open space and parks, police investigations, crime prevention activities, government access channel and emergency reserves). The remaining balance of unrestricted net position ($12.3 million) may be used to meet the City’s obligations to citizens and creditors. At the end of the current fiscal year, the City of Wheat Ridge is able to report positive balances in net position for the City as a whole. The same situation held true for the prior fiscal year. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (6) City of Wheat Ridge Net Position 2019 2018 Current and Other Assets 45,140,320$ 55,295,839$ Capital Assets 77,762,531 68,037,158 Total Assets 122,902,851 123,332,997 Long-Term Liabilities 26,445,026 29,304,091 Other Liabilities 4,994,807 4,074,115 Total Liabilities 31,439,833 33,378,206 Deferred Inflows of Resources 1,139,393 1,011,448 Net Position Net Investment in Capital Assets 63,074,600 68,972,644 Restricted 5,184,522 3,585,108 Unrestricted 12,310,462 16,385,591 Total Net Position 80,569,584$ 88,943,343$ Governmental Activities Changes in Net Position Governmental activities.  Current and other assets decreased 18% primarily due to a decrease in cash and investments relating primarily to additional capital outlays and expenditures as part of the Investing 4 the Future Fund.  Long-term liabilities decreased mostly due to payments of principal and interest on Sales and Use Tax Revenue Bonds Series 2017A.  Other Liabilities increased relating to a significant overpayment of use tax in 2019 which will be refunded in 2020. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (7) City of Wheat Ridge Changes in Net Position 2019 2018 REVENUES Program Revenues Charges for Services 6,541,212$ 6,127,397$ Operating Grants and Contributions 2,329,594 2,041,780 Capital Grants and Contributions 5,321,376 2,543,745 General Revenues Property Taxes 1,005,826 1,005,405 Sales Taxes 24,021,983 22,720,723 Use Taxes 4,751,330 8,033,831 Franchise Taxes 1,570,323 1,602,881 Lodgers Taxes 1,512,718 1,472,486 Other Taxes 691,927 671,902 Investment Income 938,408 929,909 Insurance Proceeds - 363,474 Gain on Sale of Capital Assets - 88,064 Miscellaneous 637,917 367,460 Total Revenues 49,322,614 47,969,057 EXPENSES General Government 12,980,705 10,287,683 Economic Development 1,721,000 1,525,566 Community Development 1,645,242 2,143,330 Police 11,908,913 10,838,937 Public Works 8,867,412 8,235,985 Parks and Recreation 10,140,461 7,996,072 Interest on Long-Term Debt 678,599 1,143,660 Total Expenses 47,942,332 42,171,233 CHANGE IN NET POSITION 1,380,282 5,797,824 Net Position - Beginning of Year, as Restated 88,943,343 83,145,519 NET POSITION - END OF YEAR 90,323,625$ 88,943,343$ General Government expenses include budgets for the City Treasurer, Legislative Services, Financial Services, City Manager, City Attorney, City Clerk’s Office, Municipal Court, Administrative Services, Human Resources, Purchasing and Contracting, Information Technology and Central Charges.  Total revenue growth compared to 2018 is 3% higher. This increase is mostly attributable to an increase in sales tax and capital grants.  Sales tax revenue increased 6% to 2018 but Use tax is 41% lower in 2019 as 2018 had a significant increase in use tax relating to a one time capital investment project by a company within the City. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (8)  Capital Grants and Contributions increased 89% relating to grant revenue for the widening of Wadsworth Boulevard.  Expenses in general are 13.7% higher than 2018 due to expenses related to roof repairs from previous hailstorms and increased repairs and maintenance expenses for Parks and Recreation activities. - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 GeneralGovernment EconomicDevelopment CommunityDevelopment Police Public Works Parks andRecreation Expenses and Program Revenues - Governmental Activities Expenses Program Revenues Financial Analysis of the City’s Funds The focus of the City of Wheat Ridge’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Wheat Ridge’s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. As of the end of fiscal year 2019, the City of Wheat Ridge’s governmental funds reported combined ending fund balances of $38.0 million, a decrease of $11.6 million in comparison with the prior year. Approximately 28% of this total amount ($10.7 million) constitutes unassigned fund balance, which is available for spending at the City’s discretion. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (9) The remainder of fund balance is restricted to indicate that it is not available for new spending because it has already been restricted or shown as nonspendable for:  Developer Loan Receivable - Fruitdale $1,085,000  Prepaid Items $13,892  Capital Projects – Investing 4 the Future $20,410,711  Open space and parks $2,991,737  Police Investigations Fund $37,009  Crime Prevention Activities Fund $492,294  Government Access Channel $273,628  TABOR-mandated emergency reserves $1,390,000 or committed to:  Municipal Court Fund $94,623  Recreation Center Fund $87,334  Public Art Fund $239,608 or assigned to:  Capital Projects Fund $53,477  Capital Equipment Replacement Fund $137,595 The General Fund is the chief operating fund of the City of Wheat Ridge. At the end of fiscal year 2019, unassigned fund balance of the General Fund was $10.7 million, while total General Fund balance decreased to approximately $13.4 million. As a measure of the General Fund’s liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 31% of total General Fund expenditures, while total fund balance represents 39% of that same amount. The Open Space Fund was created in 1972 for the purpose of acquiring, developing and maintaining open space and park properties within the City of Wheat Ridge. Major projects in 2019 and 2018 include Prospect Park Phases I and II and Anderson Park renovations. At the end of 2019, the Open Space Fund balance was nearly $1.4 million higher than the prior year due in part to an increase in the one-time developer parkland fee in 2019 compared to 2018 and a steady allocation of Jefferson County sales and use tax disbursed from the Jefferson County Open Space Fund. The Capital Projects Fund uses assigned funds to upgrade, maintain and expand the City of Wheat Ridge facilities, buildings, grounds, streets, parks and roads. Compared to 2018, capital outlays were $3.6 million higher in 2019 primarily due to the City’s share of the Wadsworth widening project and increased street improvements and maintenance. While the City continues to receive revenues from the ½ of 1% sales and use tax rate increase in 2017, expenditures in the Investing 4 the Future fund have increased significantly due to final project spending on Anderson Park and continued project spending on Clear Creek Crossing. The City of Wheat Ridge has seven non-major funds that are restricted for, committed to, and assigned to a variety of purposes. The combined fund balance is $1.7 million, which is comparable to 2018. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (10) General Fund Budgetary Highlights The original budget was amended by City Council for a total of $1,014,252 in supplemental budget appropriations throughout the 2019 fiscal year. These amendments can be briefly summarized as follows: Supplemental Budget Appropriations: Organized from largest to smallest expenditure  $731,237 allocated for re-encumbrance of 2018 encumbered funds  $90,220 allocated for the Anderson building renovation  $90,000 allocated for body worn cameras  $25,000 allocated for the Wheat Ridge Business District Grant  $20,000 allocated for City Attorney Fees  $18,000 allocated for Porch Light, a Family Justice Center  $12,500 allocated for the Artspace feasibility study  $10,440 allocated for the upgrade of security cameras in the police parking lot  $8,155 allocated for the Foothills Animal Shelter special assessment  $7,200 allocated for 2019 Purchase Order re-encumbrance  $1,500 allocated for a grant award for purchases of trees in City Right-of-Way. During the 2019 fiscal year, unassigned fund balance in the General Fund decreased to $10.6 million, a decrease of $3.2 million from the previous year. The decrease is attributable to a decreased use tax and increased transfers to other funds. The 2019 General Fund budget was adopted without using any of the fund balance to balance the budget. However, the final budget allocated $3,040,000 of the fund balance to the Capital Projects Fund for capital improvements. Capital Asset and Debt Administration Capital assets. The City of Wheat Ridge’s investment in capital assets for its governmental activities as of December 31, 2019 amounts to $63 million (net of accumulated depreciation). This investment in capital assets includes land, artwork, construction in progress, land improvements, buildings, vehicles, machinery and equipment, infrastructure, software and solar power capacity. Additional information on capital assets is provided in Note 4 of the financial statements. Major capital asset events during the 2019 fiscal year totaled $13.7 million and included the following:  Construction in Progress in the amount of $12.5 million o Anderson Park o Clear Creek Crossing o Wadsworth widening project o Public improvement projects  Buildings and Structures in the amount of $64,390 o City Hall hot water circulation upgrade o Parks and Recreation message board kiosk CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (11)  Vehicles in the amount of $584,683 o One Public Works tandem cab and chassis o Three Parks and Recreation Maintenance trucks o Two Parks and Recreation Forestry trucks o Three Police Patrol utility vehicles o Two Police Traffic Enforcement trucks o Two Police Animal and Park Code Enforcement trucks o One Police Patrol BMW motorcycle upgrade  Machinery and Equipment in the amount of $364,226 o Security cameras for City Hall and other municipal sites o Police Department TrueSpeed lasers o Recreation center fitness and other equipment o One Parks and Recreation Maintenance mower o One Parks and Recreation Maintenance ATV o Boyds Crossing playground equipment o One Public Works sign shop plotter o Traffic control cabinets and other traffic control system equipment o One Public Works variable message sign and trailer  Software the amount of $24,348 o Parks and Recreation Setpoint InteliWEB and InteliVIZ software upgrade City of Wheat Ridge’s Capital Assets (Net of Depreciation) CAPITAL ASSETS 2019 2018 Land 16,131,560$ 16,118,553$ Artwork 196,795 113,295 Construction in Progress 14,716,237 9,006,564 Land Improvements 18,184,356 12,030,624 Buildings 9,982,732 10,577,808 Vehicles 2,607,715 2,402,971 Machinery and Equipment 2,516,872 2,693,636 Infrastructure 12,737,204 14,358,415 Software 96,880 104,281 Solar Power Capacity 592,180 631,011 Total Capital Assets 77,762,531$ 68,037,158$ Long-term debt. At the end of the 2019 fiscal year, the City of Wheat Ridge had total long-term debt outstanding of $26.4 million. Of this amount, $3.0 million is due within one year. This total debt represents future bond principal payable from the Investing 4 the Future Fund sales and use tax, and compensated absences, claims payable, and lease payments for solar panels, which are expected to be liquidated primarily with revenues of the General Fund. Additional information for long-term debt is provided in Note 5 to the financial statements. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (12) Economic Factors and Next Year’s Budgets and Rates The City’s sales and use tax rate until December 31, 2016 was 3%. The rate then increased by .5% to 3.5% by authority of the November 2016 ballot measure. The mill levy was 1.830 mills. Both rates are among the lowest in the Denver metro area. Pursuant to the November 2016 ballot measure, the City issued $30,595,000 in bonds on May 2, 2017. These funds are managed in restricted revenue Fund 31, Investing 4 the Future. The impact of COVID-19 on governments around the country has been devastating as states and public health departments have issued mandatory shut-downs and “shelter in place” orders since March 2020. As seventy percent (70%) of the City’s General Fund revenues are generated from sales and use taxes, the City’s 2020 and 2021 budgets will be severely impacted. Initial models showed potential General Fund revenue losses in 2020 could range anywhere between 12% and 32% or $4.5 million and $12.0 million therefore the City has postponed several planned capital projects, frozen the hiring of vacant positions and cut discretionary spending in 2020 and 2021. The long term economic effects of the pandemic are uncertain but it is to be expected that planned development opportunities will slow while businesses struggle to survive. Walmart closed its doors in Wheat Ridge on July 7, 2017, which for the first three quarters of 2019, impacted total City revenues due to the associated loss in sales tax revenue. Four national retail tenants opened in the 4th quarter of 2019 in this location and Uncle Julio’s Hacienda Colorado opened in early 2020 in the same shopping center. Prior to the COVID-19 pandemic, these tenants were projected to generate between $800,000 and $900,000 in sales tax revenue annually. The Corners at Wheat Ridge is currently in the third phase of construction with the addition of multifamily housing and an additional quick serve restaurant. Unfortunately, its major tenant, Lucky’s Market closed due to corporate financing and work is in progress to backfill the space. When the project is fully built out, an additional 75,000 sq. ft. of commercial retail space will be added to the City. The project is projected to generate approximately $650,000 in sales tax revenue annually, although backfilling the grocery store loss is challenging in the economic climate caused by the pandemic. The Clear Creek Crossing project entitlements and public finance agreement were finalized and approved in 2018 and construction is underway including the access hook ramps, a gas station, credit union and multifamily housing. The developer is finalizing the leasing plan for potential tenants to include retail, residential, a medical campus, hospitality, and entertainment but negotiations have slowed due to the pandemic. The retail component of the project will likely open in 2021-2022; therefore, no new sales tax revenue from this project was included in the 2020 budget. The Longs Peak Metropolitan District (LPMD) will reimburse the City $507,038 for the environmental assessment expense and other expenses above the voter approved $10 million the City incurred over the last several years for the I-70 hook ramp project. The reimbursement will occur when the LPMD issues bonds for the Clear Creek Crossing project, likely in 2021 or 2022. This reimbursement revenue has not been factored into the 2020 budget. Once the project is fully built out, sales tax, lodging, admissions and use tax revenue is projected to total $1.8 million annually. CITY OF WHEAT RIDGE MANAGEMENT’S DISCUSSION AND ANALYSIS DECEMBER 31, 2019 (13) Several other commercial redevelopment projects across the City are projected to increase sales tax revenue starting sometime in 2021. The site of the former Gold’s Market has a new owner and will receive several improvements designed to attract and retain additional tenants. In 2021 The Ridge at 38, designated as the City’s downtown, will see the addition of a new sit-down restaurant and at least one additional microbrewery. Additionally, several existing businesses are planning significant expansions, upgrades and remodels which are projected to drive additional sales tax revenue in 2021. The adopted 2020 fiscal year budget is $76.9 million. It includes a $43.1 million operating budget, a $15.1 million Investing 4 the Future capital projects budget, a $18.4 million CIP budget and $4.0 million for special revenue budgets. Planned cuts due the pandemic total $5.4 million of which $2.5 million is General Fund, $2.0 million is Capital Improvement Program and $935,000 is Open Space Fund. Requests for Information This financial report is designed to provide a general overview of the City of Wheat Ridge’s finances for those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to: Administrative Services Director City of Wheat Ridge 7500 W. 29th Avenue Wheat Ridge, Colorado 80033 (14) BASIC FINANCIAL STATEMENTS CITY OF WHEAT RIDGE STATEMENT OF NET POSITION DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (15) Primary Government Component Unit Governmental Urban Renewal Activities Authority ASSETS Cash and Investments 14,935,322$ 2,226,351$ Restricted Cash and Investments 20,348,130 1,232,307 Accounts Receivable 4,568,499 152,036 Property Taxes Receivable 1,139,393 1,017,650 Intergovernmental Receivables 3,050,084 - Loans Receivable 1,085,000 - Prepaid Items 13,892 - Property Held for Resale - 330,299 Capital Assets, Not Being Depreciated 31,044,592 4,999,880 Capital Assets, Net of Depreciation 46,717,939 - Total Assets 122,902,851 9,958,523 LIABILITIES AND DEFERRED INFLOWS OF RESOURCES AND NET POSITION Liabilities Accounts Payable 3,515,978 397,201 Accrued Liabilities 611,036 - Retainage Payable 153,662 - Refundable Deposits 554,035 - Unearned Revenues 78,810 - Accrued Interest Payable 81,286 85,609 Noncurrent Liabilities Due Within One Year 2,868,046 405,000 Due in More than One Year 23,576,980 7,808,458 Total Liabilities 31,439,833 8,696,268 Deferred Inflows of Resources Property Taxes 1,139,393 1,017,650 Total Deferred Inflows 1,139,393 1,017,650 Net Position Net Investment in Capital Assets 63,074,600 (142,813) Restricted for: Capital Projects 9,754,041 - Open Space and Parks 2,991,737 - Police Investigations 37,009 - Crime Prevention Activities 492,294 - Government Access Channel 273,482 - Emergencies 1,390,000 - Unrestricted 12,310,462 387,418 Total Net Position 90,323,625$ 244,605$ CITY OF WHEAT RIDGE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (16) Primary Component Operating Capital Government Unit Charges for Grants and Grants and Governmental Urban Renewal Functions/Programs Expenses Services Contributions Contributions Activities Authority Primary Government Governmental Activities General Government 12,980,705$ 473,617$ 73,612$ 532,768$ (11,900,708)$ -$ Economic Development 1,721,000 - - - (1,721,000) - Community Development 1,645,242 1,316,448 168,000 - (160,794) - Police 11,908,913 479,130 267,626 - (11,162,157) - Public Works 8,867,412 382,111 1,820,356 3,338,917 (3,326,028) - Parks and Recreation 10,140,461 3,889,906 - 1,449,691 (4,800,864) - Interest on Long-term debt 678,599 (678,599) - Total Primary Government 47,942,332$ 6,541,212$ 2,329,594$ 5,321,376$ (33,750,150) - Component Unit Urban Renewal Authority 1,083,560$ -$ 300,000$ -$ - (783,560) General Revenues Property Taxes 1,005,826 470,702 Sales Taxes 24,021,983 726,585 Use Taxes 4,751,330 - Franchise Taxes 1,570,323 - Lodgers Taxes 1,512,718 - Other Taxes 691,927 - Investment Income 938,408 74,827 Miscellaneous 637,917 - Total General Revenues 35,130,432 1,272,114 Change in Net Position 1,380,282 488,554 Net Position - Beginning of Year 88,943,343 (243,949) Net Position - End of Year 90,323,625$ 244,605$ Net (Expense) Revenue and Change in Net Position CITY OF WHEAT RIDGE BALANCE SHEET – GOVERNMENTAL FUNDS DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (17) Other Open Capital Investing 4 Governmental General Space Projects the Future Funds Totals ASSETS Cash and Investments 10,250,005$ 2,113,964$ 792,625$ -$ 1,778,728$ 14,935,322$ Restricted Cash and Investments - - - 20,348,130 - 20,348,130 Accounts Receivable 3,419,913 - 598,172 519,199 31,215 4,568,499 Property Taxes Receivable 1,139,393 - - - - 1,139,393 Intergovernmental Receivables 397,423 259,857 2,369,653 23,151 - 3,050,084 Loans Receivable 1,085,000 - - - - 1,085,000 Prepaid Items 13,892 - - - - 13,892 Due from Other Funds 1,785,098 - - - 1,785,098 Total Assets 18,090,724$ 2,373,821$ 3,760,450$ 20,890,480$ 1,809,943$ 46,925,418$ LIABILITIES Accounts Payable 2,326,709$ -$ 673,817$ 479,769$ 35,683$ 3,515,978$ Accrued Liabilities 543,155 10,727 - - 57,154 611,036 Retainage Payable 27,003 - 126,659 - - 153,662 Refundable Deposits 554,035 - - - - 554,035 Unearned Revenues 78,810 - - - - 78,810 Due to Other Funds - - 1,785,098 - - 1,785,098 Total Liabilities 3,529,712 10,727 2,585,574 479,769 92,837 6,698,619 DEFERRED INFLOWS OF RESOURCES Property Taxes 1,139,393 - - - - 1,139,393 Grants - - 1,121,399 - - 1,121,399 Total Deferred Inflows 1,139,393 - 1,121,399 - - 2,260,792 FUND BALANCES Nonspendable Loans Receivable 1,085,000 - - - - 1,085,000 Prepaid Items 13,892 - - - - 13,892 Restricted For: Capital Projects - - - 20,410,711 - 20,410,711 Open Space and Parks - 2,363,094 - - 628,643 2,991,737 Police Investigations - - - - 37,009 37,009 Crime Prevention Activities - - - - 492,294 492,294 Government Access Channel 273,482 - - - - 273,482 Emergencies 1,390,000 - - - - 1,390,000 Committed to: Municipal Court - - - - 94,623 94,623 Recreation Center - - - - 87,334 87,334 Public Art - - - - 239,608 239,608 Assigned to: Capital Projects - - 53,477 - - 53,477 Equipment Replacement - - - - 137,595 137,595 Unassigned 10,659,245 - - - - 10,659,245 Total Fund Balances 13,421,619 2,363,094 53,477 20,410,711 1,717,106 37,966,007 Total Liabilities, Deferred Inflows of Resources and Fund Balances 18,090,724$ 2,373,821$ 3,760,450$ 20,890,480$ 1,809,943$ 46,925,418$ CITY OF WHEAT RIDGE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (18) Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balances of Governmental Funds 37,966,007$ Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in governmental funds. 77,762,531 Because the focus of governmental funds is on short-term financing, some assets will not be available to pay for current-period expenditures. Those assets (for example, receivables) are offset by deferred inflows of resources in the governmental funds and thus are not included in fund balance. Intergovernmental Revenues 1,121,399 Long-term liabilities and related items are not due and payable in the current year, and therefore are not reported in governmental funds. Bonds Payable (22,930,000) Bond Premium (1,633,347) Capital Lease Payable (624,804) Accrued Compensated Absences (1,169,122) Claims Payable (87,753) Accrued Interest Payable (81,286) Total Net Position of Governmental Activities 90,323,625$ CITY OF WHEAT RIDGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (19) Other Open Capital Investing 4 Governmental General Space Projects the Future Funds Totals REVENUES Taxes 28,630,152$ -$ 302,544$ 4,159,427$ 461,984$ 33,554,107$ Licenses and Permits 1,347,748 - - - - 1,347,748 Intergovernmental 2,169,094 1,449,691 2,548,610 - 526,886 6,694,281 Charges for Services 1,567,179 1,054,932 57,193 - 2,168,281 4,847,585 Fines and Forfeitures 321,183 - - - 24,696 345,879 Investment Income 305,078 9,437 15,505 570,873 37,515 938,408 Miscellaneous 492,082 - - 119,450 26,385 637,917 Total Revenues 34,832,516 2,514,060 2,923,852 4,849,750 3,245,747 48,365,925 EXPENDITURES Current General Government 10,904,518 - - 1,716,855 8,088 12,629,461 Economic Development 1,719,700 - - - - 1,719,700 Community Development 1,632,911 - - - - 1,632,911 Police 11,169,912 - - - 482,565 11,652,477 Public Works 4,638,990 - 118,039 - - 4,757,029 Parks and Recreation 4,351,956 2,021,696 - - 2,543,052 8,916,704 Capital Outlay - - 6,997,025 8,504,389 153,332 15,654,746 Debt Service Principal 41,871 - - 2,465,000 - 2,506,871 Interest 38,296 - - 1,033,300 - 1,071,596 Total Expenditures 34,498,154 2,021,696 7,115,064 13,719,544 3,187,037 60,541,495 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 334,362 492,364 (4,191,212) (8,869,794) 58,710 (12,175,570) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Assets 19,606 - - - - 19,606 Insurance Proceeds 525,268 - - - - 525,268 Transfers In - 900,000 3,040,000 - 100,000 4,040,000 Transfers Out (4,040,000) - - - - (4,040,000) Total Financing Sources (Uses) (3,495,126) 900,000 3,040,000 - 100,000 544,874 NET CHANGE IN FUND BALANCES (3,160,764) 1,392,364 (1,151,212) (8,869,794) 158,710 (11,630,696) Fund Balances - Beginning of Year 16,582,383 970,730 1,204,689 29,280,505 1,558,396 49,596,703 FUND BALANCES - END OF YEAR 13,421,619$ 2,363,094$ 53,477$ 20,410,711$ 1,717,106$ 37,966,007$ CITY OF WHEAT RIDGE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES DECEMBER 31, 2019 See accompanying Notes to Financial Statements. (20) Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balances of Governmental Funds (11,630,696)$ Capital outlays to purchase or construct capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are capitalized in the statement of net position and are allocated over the estimated useful lives as annual depreciation expense in the statement of activities. Capital Outlays 13,657,454 Contributed Assets 13,007 Depreciation Expense (3,908,406) Net Book Value of Disposal (36,682) Some revenues reported in the statement of activities are not available as current financial resources and, therefore, are not reported as revenues in governmental funds. Negative amounts indicate a decrease in accruals between fiscal years. Examples are revenues from grant reimbursements. Intergovernmental Revenue 418,414 Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position and does not affect the statement of activities. Bond Payments 2,465,000 Capital Lease Payments 42,393 Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. This represents changes in the following. Accrued Interest Payable 8,126 Amortization of Premium 384,871 Compensated Absences (55,388) Claims Payable 22,189 Change in Net Position of Governmental Activities 1,380,282$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (21) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Wheat Ridge, Colorado (the City) was incorporated in August 1969, and became a home rule city in 1976, as defined by State statutes. The City is governed by a Mayor and eight- member Council elected by the residents. The accounting policies of the City conform to generally accepted accounting principles as applicable to government entities. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Reporting Entity The financial reporting entity consists of the City, organizations for which the City is financially accountable, and organizations that raise and hold economic resources for the direct benefit of the City. All funds, organizations, institutions, agencies, departments and offices that are not legally separate are part of the City. Legally separate organizations for which the City is financially accountable are considered part of the reporting entity. Financial accountability exists if the City appoints a voting majority of the organization’s governing board and is able to impose its will on the organization, or if there is a potential for the organization to provide benefits to, or impose financial burdens on, the City. Based on the application of these criteria, the City includes the following organization in its reporting entity. The Wheat Ridge Urban Renewal Authority (the Authority) was created to redevelop or rehabilitate certain blighted areas within the City. The Authority board members are appointed by the Mayor and City Council. Although the Authority is legally separate from the City, the Authority’s primary revenue source, tax increment financing, can only be established by the City. The Authority is discretely presented in the financial statements, and does not issue separate financial statements. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all activities of the City and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Exceptions to this general rule are charges for interfund services that are reasonably equivalent to the services provided. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported in a single column. The primary government is reported separately from the legally separate component unit for which the City is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of the given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (22) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Government-wide and Fund Financial Statements (Continued) Taxes and other items not properly included among program revenues are reported instead as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Separate financial statements are provided for the governmental funds. Major individual funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collected within the current year or soon enough thereafter to pay liabilities of the current year. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current year. Taxes, intergovernmental revenues, and interest associated with the current year are considered to be susceptible to accrual and so have been recognized as revenues of the current year. All other revenues are considered to be measurable and available only when cash is received by the City. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. When both restricted and unrestricted resources are available for a specific use, it is the City’s practice to use restricted resources first, then unrestricted resources as they are needed. The City reports the following major governmental funds: The General Fund is the general operating fund of the City. It is used to account for all financial resources except those accounted for in another fund. The Open Space Fund accounts for County shared revenues, grants, and development fees restricted for the acquisition, construction, and maintenance of open space and parks. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (23) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) The Capital Projects Fund accounts for the accumulation of resources from a lodgers tax, intergovernmental revenues and General Fund transfers for the acquisition or construction of major capital assets. The Investing 4 the Future Fund accounts for the collection of a 0.5% sales and use tax approved by election to finance a portion of certain improvement projects. The sales and use tax expires when revenues generated by the tax reach $38.5 million or on December 31, 2028, whichever occurs first. Assets, Liabilities and Net Position/Fund Balances Receivables - Accounts receivable include sales, use and lodgers taxes. Receivables are reported at their gross value and, where appropriate, are reduced by the estimated portion that is expected to be uncollectible. Prepaid Items - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The cost of prepaid items is recorded as expenses/expenditures when consumed rather than purchased. Interfund Receivables and Payables - During the course of operations, certain transactions occur between individual funds. The resulting receivables and payables are classified on the balance sheet as interfund receivables and interfund payables. Any balances outstanding between the primary government and the discretely presented component unit are reported on the statement of activities as due from and due to. Property Held for Resale - Property that is held with the intent to sell is reported at the lower of cost or fair value. Capital Assets - Capital assets, which include property, equipment, and infrastructure acquired or constructed since 1980, are reported in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $5,000 or more and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the acquisition value on the date of donation. Intangible assets are reported at cost if they are identifiable. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (24) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities and Net Position/Fund Balances (Continued) Capital assets are depreciated or amortized using the straight-line method over the following estimated useful lives. Land Improvements 10 - 40 Years Buildings 10 - 40 Years Vehicles, Machinery, and Equipment 3 - 40 Years Infrastructure 20 - 50 Years Software 5 Years Solar Power Capacity 20 Years Unearned Revenues - Unearned revenues include business license fees collected in advance. Deferred Inflows of Resources - Deferred inflows of resources include property taxes earned but levied for a subsequent year. In addition, deferred inflows of resources are reported in governmental funds for unavailable revenue for grant revenues collected over 60 days after year end. These amounts are recognized as an inflow of resources in the period the revenue becomes available. Compensated Absences - Employees of the City are allowed to accumulate unused vacation and sick time up to a maximum based on years of service. Upon termination of employment from the City, an employee will be compensated for all accrued vacation time at their current pay rate. A long-term liability has been reported in the government-wide financial statements for compensated absences. Long-Term Debt - In the government-wide financial statements, long-term debt and other long- term obligations are reported as liabilities. Debt premiums and discounts are deferred and amortized over the life of the debt using the effective interest method. In the fund financial statements, governmental funds recognize the face amount of debt issued as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Governmental funds recognize long-term liabilities only when payment is due. Payments of long-term debt are reported as current expenditures. Debt issuance costs are reported as current expenses or expenditures. Net Position/Fund Balances - In the government-wide and fund financial statements, net position and fund balances are restricted when constraints placed on the use of resources are externally imposed. As reported in the fund financial statements, the City Council establishes a fund balance commitment through passage of a resolution. In addition, by resolution the City Council has delegated to the City Manager or his designee the authority to assign fund balances for specific purposes. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (25) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Assets, Liabilities and Net Position/Fund Balances (Continued) As adopted by City Council policy, the City will maintain a minimum unrestricted fund balance of at least two months, or approximately 17%, of its General Fund operating expenditures. When expenditures are incurred for a specific purpose for which both restricted and unrestricted fund balances are available, the City’s policy is to use restricted amounts first, followed by committed, assigned and unassigned amounts. Property Taxes Property taxes attach as an enforceable lien on property on January 1, are levied the following December, and collected in the subsequent calendar year. Taxes are payable in full on April 30 or in two installments on February 28 and June 15. The County Treasurer’s office collects property taxes and remits to the City on a monthly basis. Since property tax revenues are collected in arrears during the succeeding year, receivables and corresponding deferred inflows of resources are reported at year-end. Contraband Forfeitures The Colorado Contraband Forfeiture Act allows law enforcement agencies to retain proceeds from the seizure of contraband. These transactions are reported in the Police Investigation Special Revenue Fund. NOTE 2 CASH AND INVESTMENTS A summary of cash and investments at December 31, 2019, follows: Petty Cash 2,950$ Cash Deposits 3,560,482 Investments 35,178,678 Total 38,742,110$ Cash and investments are reported in the financial statements as follows: Cash and Investments - Primary Government 14,935,322$ Restricted Cash and Investments - Primary Government 20,348,130 Cash and Investments - Component Unit 2,226,351 Restricted Cash and Investments - Component Unit 1,232,307 Total 38,742,110$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (26) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Cash Deposits The Colorado Public Deposit Protection Act (PDPA) requires all local government entities to deposit cash in eligible public depositories. Eligibility is determined by State regulations. Amounts on deposit in excess of federal insurance levels must be collateralized by eligible collateral as determined by the PDPA. The PDPA allows the financial institution to create a single collateral pool for all public funds held. The pool is to be maintained by another institution, or held in trust for all uninsured public deposits as a group. The market value of the collateral must be at least equal to 102% of the uninsured deposits. At December 31, 2019, the City and the Authority had bank deposits with a carrying amount of $1,678,220 and $1,882,262, respectively, collateralized with securities held by the financial institutions’ agents but not in their name. Investments The City and the Authority are required to comply with State statutes, which specify investment instruments meeting defined rating, maturity and concentration risk criteria in which local governments may invest. State statutes do not address custodial risk. Through its investment policy, the City has further restricted allowable investments to the following.  Obligations of the United States and U.S. Agency securities  Corporate debt  Commercial paper  Bankers’ acceptances  Repurchase agreements collateralized by authorized securities  General obligations of U.S. local government entities  Guaranteed investment contracts  Money market funds  Local government investment pools The City and the Authority had the following investments at December 31, 2019: S&P Investment Type Rating Less Than 1 1 - 5 Total Brokered Certificates of Deposit N/A 2,756,396$ -$ 2,756,396$ Local Government Investment Pool AAAm 32,422,282 - 32,422,282 Total 35,178,678$ -$ 35,178,678$ Investment Maturities (in Years) Interest Rate Risk - State statutes generally limit investments to an original maturity of five years unless the governing board authorizes the investment for a period in excess of five years. Credit Risk - State statutes limit certain investments to those with specified ratings from nationally recognized statistical rating organizations, depending on the type of investment. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (27) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Investments (Continued) Concentration of Credit Risk - Except for corporate securities, State statutes do not limit the amount the City may invest in any single investment or issuer. Fair Value of Investments - The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. For investments measured at Net Asset Value (NAV), there are no commitments, the redemption frequency is daily, and there is no redemption notice period. The local government investment pool is an investment vehicle established for local government entities in Colorado to pool surplus funds. The pool is similar to money market funds, with each share valued at $1.00. As of December 31, 2019, the City held investments in Brokered Certificates of Deposit of $1,180,000 (Level 2 inputs) and the Authority also held investments in Brokered Certificates of Deposit of $1,576,396 (Level 2 inputs). Local Government Investment Pools - At December 31, 2019, the City had $16,391,477 invested in the Colorado Surplus Asset Fund Trust (CSAFE) Cash Fund, an investment vehicle established for local government entities in Colorado to pool surplus funds. The Colorado Division of Securities administers and enforces the requirements of creating and operating CSAFE. The external investment pool is measured at amortized cost with each share valued at $1.00. Investments in the external investment pool are shown at amortized cost for financial reporting purposes. CSAFE is rated AAAm by Standard and Poor's. Investments of CSAFE are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, the redemption frequency is daily, and there is no redemption notice period. At December 31, 2019, the City had $16,030,805 invested in the Colorado Statewide Investment Pool (CSIP), an investment vehicle established for local government entities in Colorado to pool surplus funds. The Colorado Division of Securities administers and enforces the requirements of creating and operating CSIP. The external investment pool is measured at net asset value (NAV) per share with each share valued at $1.00. Investments in the external investment pool are shown at amortized cost for financial reporting purposes. CSIP is rated AAAm by Standard and Poor's. Investments of CSIP are limited to those allowed by State statutes. A designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions. The custodian's internal records identify the investments owned by participating governments. There are no unfunded commitments, the redemption frequency is daily, and there is no redemption notice period. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (28) NOTE 3 LOANS RECEIVABLE The City entered into two loan agreements with the developer of the Fruitdale Lofts project. Under the agreements, the City committed to loan the developer $470,000 and $2,115,000. The first loan is due 35 years following substantial completion of the project, with interest accruing at 5% per annum beginning 20 years after substantial completion of the project. Repayment terms for the second loan are dependent upon certain financing and equity contributions of the developer. The loan is due in 20 years, with interest accruing at 5% per annum commencing after completion of the project. During 2017, the project was under construction and the City had advanced the full amount of $2,585,000 under these agreements. At December 31, 2019, the outstanding balance on the loans was $1,085,000. During 2013, the City loaned $330,299 to the Authority to acquire a property for redevelopment. The loan is non-interest bearing. The loan balance is due upon sale of the redevelopment property. At December 31, 2019, the loan has been paid off. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (29) NOTE 4 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2019, is summarized below. Balance Balance 12/31/2018 Additions Deletions 12/31/2019 Governmental Activities Capital Assets, Not Being Depreciated Land 16,118,553$ 13,007$ -$ 16,131,560$ Artwork 113,295 83,500 - 196,795 Construction in Progress 9,006,564 12,536,307 6,826,634 14,716,237 Total Capital Assets Not Being Depreciated 25,238,412 12,632,814 6,826,634 31,044,592 Capital Assets, Being Depreciated Land Improvements 19,249,977 6,773,072 - 26,023,049 Buildings 23,367,761 64,390 - 23,432,151 Vehicles 5,719,136 584,683 272,702 6,031,117 Machinery and Equipment 8,106,351 364,226 83,580 8,386,997 Infrastructure 71,096,763 53,562 - 71,150,325 Software 363,920 24,348 - 388,268 Solar Power Capacity 776,628 - - 776,628 Total Capital Assets, Being Depreciated 128,680,536 7,864,281 356,282 136,188,535 Less Accumulated Depreciation Land Improvements (7,219,353) (619,340) - (7,838,693) Buildings (12,789,953) (659,466) - (13,449,419) Vehicles (3,316,165) (379,939) (272,702) (3,423,402) Machinery and Equipment (5,412,715) (504,308) (46,898) (5,870,125) Infrastructure (56,738,348) (1,674,773) - (58,413,121) Software (259,639) (31,749) - (291,388) Solar Power Capacity (145,617) (38,831) - (184,448) Total Accumulated Depreciation (85,881,790) (3,908,406) (319,600) (89,470,596) Total Capital Assets, Being Depreciated, Net 42,798,746 3,955,875 36,682 46,717,939 Governmental Activities Capital Assets, Net 68,037,158$ 16,588,689$ 6,863,316$ 77,762,531$ Capital asset activity for the Urban Renewal Authority for the year ended December 31, 2019, is summarized below. Balance Balance 12/31/2018 Additions Deletions 12/31/2019 Governmental Activities Capital Assets, Not Being Depreciated Construction in Progress -$ 4,999,880$ -$ 4,999,880$ Total Capital Assets -$ 4,999,880$ -$ 4,999,880$ CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (30) NOTE 4 CAPITAL ASSETS (CONTINUED) Depreciation expense was charged to programs of the City as follows: General Government 347,963$ Community Development 9,941 Police 223,856 Public Works 2,110,959 Parks and Recreation 1,215,687 Total 3,908,406$ NOTE 5 LONG-TERM DEBT Following is a summary of long-term debt transactions for the year ended December 31, 2019. Balance Balance Due Within 12/31/2018 Additions Reductions 12/31/2019 One Year Governmental Activities 2017 Revenue Bonds 25,395,000$ -$ 2,465,000$ 22,930,000$ 2,565,000$ 2017 Bond Premium 2,018,218 - 384,871 1,633,347 - Solar Power Capacity Lease 667,197 - 42,393 624,804 44,931 Compensated Absences 1,113,734 1,524,453 1,469,065 1,169,122 170,362 Claims Payable 109,942 59,223 81,412 87,753 87,753 Total 29,304,091$ 1,583,676$ 4,442,741$ 26,445,026$ 2,868,046$ Urban Renewal Authority 2014 Loans Payable 1,525,000$ -$ 285,000$ 1,240,000$ 295,000$ 2018 Loans Payable 6,375,000 - - 6,375,000 - Pollution Remediation 691,798 - 93,340 598,458 110,000 Total 8,591,798$ -$ 378,340$ 8,213,458$ 405,000$ Revenue Bonds On May 2, 2017, the City issued $30,595,000 Sales and Use Tax Revenue Bonds, Series 2017A. Bond proceeds will be used to finance certain improvement projects. Interest accrues on the bonds at rates ranging from 3% to 5% per annum and is payable semi-annually on June 1 and December 1, beginning on December 1, 2017. Annual principal payments are due on December 1, from 2017 through 2027. After issuance of the bonds, the City has $2,405,000 of debt authorization remaining from the related election. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (31) NOTE 5 LONG-TERM DEBT (CONTINUED) The bonds are payable solely from revenues generated by the 0.5% sales and use tax reported in the Investing 4 the Future Fund. During the year ended December 31, 2019, revenues of $4,159,427 were available to pay annual debt service of $3,505,300. Remaining debt service at December 31, 2019, was as follows: Year Ended December 31, Principal Interest Total 2020 2,565,000$ 934,700$ 3,499,700$ 2021 2,665,000 832,100 3,497,100 2022 2,720,000 778,800 3,498,800 2023 2,860,000 642,800 3,502,800 2024 3,000,000 499,800 3,499,800 2025-2027 9,120,000 697,000 9,817,000 Total 22,930,000$ 4,385,200$ 27,315,200$ Solar Power Capacity Lease On March 23, 2015, the City entered into an agreement to purchase solar power capacity in a community solar garden. The purchase was financed in April 2015, with a lease agreement in the amount of $800,000. Monthly payments of $6,681, including principal and interest accruing at 5.75% per annum, are due under the agreement, beginning June 1, 2015, through May 1, 2030. At December 31, 2019, capital assets of $592,180, net of accumulated depreciation, were reported under this lease. Following is a schedule of the future minimum lease payments at December 31, 2019. Year Ended December 31, Total 2020 80,167$ 2021 80,167 2022 80,167 2023 80,167 2024 80,167 2025-2029 400,835 2030 33,403 Total Minimum Lease Payments 835,073 Less: Interest Portion (210,269) Present Value of Minimum Lease Payments 624,804$ Compensated Absences Compensated absences are expected to be liquidated primarily with revenues of the General Fund. Urban Renewal Authority Loans On May 14, 2014, the Authority approved a loan agreement with Colorado State Bank and Trust for $2,455,000 to finance infrastructure improvements associated with redevelopment property. The loan accrues interest at 3.16% per annum. Interest payments are due semi-annually beginning December 1, 2014. Principal payments are due annually beginning December 1, 2015, through 2023. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (32) NOTE 5 LONG-TERM DEBT (CONTINUED) Urban Renewal Authority Loans (Continued) On October 18, 2018, the Authority approved a loan agreement with Colorado State Bank and Trust for $6,375,000 to finance the development of real property for the purpose of mixed-use commercial development. The loan accrues interest at 4.65% per annum. Interest payments are due semi-annually beginning March 1, 2019. Principal payments are due annually beginning September 1, 2022, through 2028. During the year ended December 31, 2019, revenues of $1,197,287 were available to pay annual debt service of $336,290. Future debt service to maturity is as follows: Year Ended December 31, Principal Interest Total 2020 295,000$ 335,622$ 630,622$ 2021 305,000 326,300 631,300 2022 1,109,247 316,662 1,425,909 2023 1,155,227 269,775 1,425,002 2024 867,836 220,899 1,088,735 2025-2028 3,882,690 461,356 4,344,046 Total 7,615,000$ 1,930,614$ 9,545,614$ Pollution Remediation The Urban Renewal Authority is conducting a site remediation at an approximately 0.552-acre parcel of land located at 7690 West 38th Avenue (Jefferson County Parcel ID 39-262-01-001), as part of the Colorado Department of Public Health and Environment (CDPHE) Voluntary Clean-Up Program (VCUP), in Wheat Ridge and Jefferson County, Colorado. The Urban Renewal Authority’s application was approved by CDPHE on January 7, 2014. The site consists of a vacant gravel lot. A former 2,400 square-foot dry cleaner and later a parts department for a shuttered car dealership were previously demolished as part of the approved VCUP Application. After demolition of the structure, the asphalt paving was stripped during redevelopment of the surrounding properties and source contaminated soil was removed and hauled to an authorized site. Nine monitoring wells were placed throughout the site and quarterly testing has been ongoing. Active site remediation was enacted, first using BOS 100, a material recommended by the Urban Renewal Authorities consultants Terracon, Inc. and CDPHE. The BOS 100 dramatically lowered contamination levels for the first 18-months. Once the BOS 100 stopped reducing the contaminants, a system titled E-Redox was placed throughout the site and has been actively successful at continued remediation of contaminants. The site will be redeveloped as part of a broader community development program. The redevelopment plan includes the construction of a new commercial building with surface parking. As of December 31, 2019, the estimated liability for the pollution remediation was $598,458. This estimate is based on the third-party consultant’s site assessment and professional experience in this subject. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (33) NOTE 6 INTERFUND TRANSACTIONS During the year ended December 31, 2019, the General Fund transferred $3,040,000 to the Capital Projects Fund to finance capital projects and to purchase additional equipment. In addition, the General Fund transferred $900,000 to the Open Space Fund relating to allocation of sales tax for open space related expenditures and $100,000 to the Equipment Replacement Fund for capital expenditures. As of December 31, 2019, the Capital Projects Fund reports a payable of $1,785,098 to the General Fund for reimbursement of costs initially paid by the General Fund. NOTE 7 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City has agreed to self-insure for general liability claims to a maximum of $150,000; automobile, property and physical damage claims to a maximum of $10,000; and workers compensation claims to a maximum of $5,000 per occurrence. The City accounts for its risk management activities in the General Fund. Claims liabilities, including estimated incurred but not reported claims (IBNR), are reported in the government-wide financial statements if information available prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in claims payable for the years ended December 31, 2019 and 2018, were as follows: 2019 2018 Claims Payable, January 1 109,942$ 352,716$ Incurred Claims and Changes in Estimated Claims 59,223 (50,675) Claims Paid (81,412) (192,099) Claims Payable, December 31 87,753$ 109,942$ For excess liability, property and workers compensation claims, the City participates in the Colorado Intergovernmental Risk Sharing Agency (CIRSA), a separate and independent governmental and legal entity formed by intergovernmental agreement by member municipalities pursuant to the provisions of 24-10-115.5, Colorado Revised Statutes (1982 Replacement Volume) and the Colorado Constitution, Article XIV, Section 18(2). CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (34) NOTE 7 RISK MANAGEMENT (CONTINUED) The purposes of CIRSA are to provide members defined liability, property, and workers compensation coverages and to assist members to prevent and reduce losses and injuries to municipal property and to persons or property which might result in claims being made against members of CIRSA, their employees and officers. It is the intent of the members of CIRSA to create an entity in perpetuity which will administer and use funds contributed by the members to defend and indemnify, in accordance with the bylaws, any member of CIRSA against stated liability of loss, to the limit of the financial resources of CIRSA. It is also the intent of the members to have CIRSA provide continuing stability and availability of needed coverages at reasonable costs. All income and assets of CIRSA shall be at all times dedicated to the exclusive benefit of its members. NOTE 8 RETIREMENT COMMITMENTS Police Defined Contribution Pension Plan The City contributes to a single-employer defined contribution money purchase pension plan on behalf of sworn police officers. The Plan is administered by the International City/County Management Association (ICMA). During 2019 employees contributed 10% of their compensation to the Plan, and the City contributed 10%. Employees become vested in City contributions to the Plan at 20% annually, beginning in the third year of employment. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2019, the City and employee contributions to the Plan were $637,462 each, equal to the required contributions. Department Head Defined Contribution Pension Plan City department heads participate in a multiple-employer defined contribution pension plan upon employment with the City. The Plan is administered by ICMA. During 2019 department heads contributed 4% of their compensation to the Plan and the City contributed 7%, except for the City Manager for which the City contributed 10%. Employees become vested in all contributions to the Plan immediately. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2019, the City and employee contributions to the Plan were $60,784 and $31,487, respectively, equal to the required contributions. Employee Defined Contribution Pension Plan The City contributes to a multiple-employer defined contribution pension plan on behalf of all employees, except sworn police officers and department heads. The Plan is administered by ICMA. During 2019 employees contributed 4% of their compensation to the Plan, and the City contributed 6%. Employees become vested in City contributions to the Plan at 20% annually after one year of employment. The contribution requirements of Plan members and the City are established and may be amended by the City Council. During the year ended December 31, 2019, the City and employee contributions to the Plan were $530,612 and $353,736, respectively, equal to the required contributions. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (35) NOTE 9 COMMITMENTS AND CONTINGENCIES Tabor Amendment Colorado voters passed an amendment to the State Constitution, Article X, Section 20, which has several limitations, including revenue raising, spending abilities, and other specific requirements of state and local governments. The Amendment requires, with certain exceptions, advance voter approval for any new tax, tax rate increase, mill levy above that for the prior year, extension of an expiring tax, or tax policy change directly causing a net tax revenue gain to the City. Revenue in excess of the fiscal year spending limit must be refunded in the next fiscal year unless voters approve retention of such revenue. The City’s management believes it is in compliance with the provisions of the Amendment. However, the Amendment is complex and subject to interpretation. Many of its provisions may require judicial interpretation. In November, 2006, voters agreed to allow the City to spend all revenues generated during 2006 and each subsequent year for police protection, street construction - repair and maintenance, parks and recreation - trails and open space, capital projects, and other basic municipal services, without limitation. The Authority is not subject to the Tabor Amendment. See: Marian L. Olson v. City of Golden, et. al., 53 P.3d 747 (Co. App.), certiorari denied. The City has established an emergency reserve, representing 3% of qualifying revenues, as required by the Amendment. At December 31, 2019, the emergency reserve of $1,390,000 was reported as restricted fund balance in the General Fund. Grant Programs The City participates in a number of federal and state programs that are fully or partially funded by grants received from other governmental entities. Expenses financed by grants are subject to audit by the appropriate grantor government. If expenses are disallowed due to noncompliance with grant program regulations, the City may be required to reimburse the grantor government. At December 31, 2019, significant amounts of grant expenses have not been audited but management believes that subsequent audits will not have a material effect on the overall financial position of the City. Conduit Debt On August 7, 2015, the City participated in the issuance of a $1,000,000 Development Revenue Note (Seniors’ Resource Center, Inc. Project) Series 2015, to provide financing for facility improvements. The Note matures on August 1, 2030, and is payable solely from revenues of the Seniors’ Resource Center, Inc. The City is not obligated in any manner for repayment of the Note. Accordingly, the Note is not reported as a liability in the accompanying financial statements. The outstanding balance of the Note at December 31, 2019, was $794,788. Litigation The City is involved in various threatened and pending litigation. The outcome of this litigation cannot be determined at this time. CITY OF WHEAT RIDGE NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 (36) NOTE 10 TAX ABATEMENTS The City of Wheat Ridge has a Business Development Zone Program, as enacted by the City Code Chapter 22, Article I, Division 5, which provides a share-back of Use-Tax generated by developments that meet the criteria established as public or public related improvements. The Program was created as a joint benefit to the public at large and to private owners for the purposes of reducing blight in business districts and providing the city with increased sales and use tax revenues generated upon and by properties improved as a result of this program. For the fiscal year ended December 31, 2019, the City abated 3% of applicable use taxes totaling $338,268. The rebate was for a manufacturing company that is expanding operations that is expected to produce incremental future use tax revenue generated by the project as well as both the short-term and long-term expected employment opportunities within the City. The Wheat Ridge Urban Renewal Authority has various Redevelopment Plans, approved by city council, which serve to further the mission of the Authority and establish future tax generating facilities by offsetting redevelopment costs through rebated property tax increment revenues and sales tax increment revenues offered to developers. For the fiscal year ended December 31, 2019, the Authority rebated property tax increment revenues and sales tax increment revenues for a total of $421,449. These rebates were for three development companies, which have renovated various locations within the boundaries of a defined economic urban renewal area. The redeveloped locations are expected to produce future incremental property and sales tax revenues for the City. The maximum rebate allowed over the course of these projects is $15,458,521. NOTE 11 SUBSEQUENT EVENT Subsequent to year-end, the World Health Organization declared the spread of Coronavirus Disease (COVID-19) a worldwide pandemic. The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. Specific to the City, COVID-19 may impact various parts of its 2020 operations and financial results, but the effects are currently unknown. Management believes the City is taking appropriate actions to mitigate the negative impact. However, the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events occurred subsequent to year-end and are still developing. On January 13, 2020, the Wheat Ridge Urban Renewal Authority entered into a loan agreement with the City of Wheat Ridge for $500,000 for an economic development project which is expected to be repaid to the City in equal installments over a five year period. (37) REQUIRED SUPPLEMENTARY INFORMATION CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – GENERAL FUND YEAR ENDED DECEMBER 31, 2019 (38) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Taxes 28,720,110$ 28,720,110$ 28,630,152$ (89,958)$ Licenses and Permits 1,637,480 1,637,480 1,347,748 (289,732) Intergovernmental 1,855,932 1,970,372 2,169,094 198,722 Charges for Services 1,425,274 1,425,274 1,567,179 141,905 Fines and Forfeitures 669,400 669,400 321,183 (348,217) Investment Income 280,000 280,000 305,078 25,078 Miscellaneous 403,000 403,000 492,082 89,082 Total Revenues 34,991,196 35,105,636 34,832,516 (273,120) EXPENDITURES Current General Government 10,756,938 11,329,435 10,904,518 424,917 Economic Development 1,797,985 1,822,985 1,719,700 103,285 Community Development 1,704,057 1,876,147 1,632,911 243,236 Police 11,045,690 11,098,219 11,169,912 (71,693) Public Works 5,044,677 5,108,175 4,638,990 469,185 Parks and Recreation 5,243,339 5,371,977 4,351,956 1,020,021 Debt Service Principal - - 41,871 (41,871) Interest - - 38,296 (38,296) Total Expenditures 35,592,686 36,606,938 34,498,154 2,108,784 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (601,490) (1,501,302) 334,362 1,835,664 OTHER FINANCING SOURCES (USES) Proceeds from Sale of Capital Assets - - 19,606 19,606 Insurance Proceeds 570,990 570,990 525,268 (45,722) Transfers Out (4,040,000) (4,040,000) (4,040,000) - Total Other Financing Sources (Uses) (3,469,010) (3,469,010) (3,495,126) (26,116) NET CHANGE IN FUND BALANCE (4,070,500) (4,970,312) (3,160,764) 1,809,548 Fund Balance - Beginning of Year 13,286,933 16,582,383 16,582,383 - FUND BALANCE - END OF YEAR 9,216,433$ 11,612,071$ 13,421,619$ 1,809,548$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – OPEN SPACE FUND YEAR ENDED DECEMBER 31, 2019 (39) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Intergovernmental 1,200,000$ 1,200,000$ 1,449,691$ 249,691$ Charges for Services 232,247 232,247 1,054,932 822,685 Investment Income 8,000 8,000 9,437 1,437 Total Revenues 1,440,247 1,440,247 2,514,060 1,073,813 EXPENDITURES Current Parks and Recreation 3,518,980 3,801,004 2,021,696 1,779,308 Total Expenditures 3,518,980 3,801,004 2,021,696 1,779,308 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (2,078,733) (2,360,757) 492,364 2,853,121 OTHER FINANCING SOURCES Transfers In 900,000 900,000 900,000 - NET CHANGE IN FUND BALANCE (1,178,733) (1,460,757) 1,392,364 2,853,121 Fund Balance - Beginning of Year 1,731,580 970,730 970,730 - FUND BALANCE - END OF YEAR 552,847$ (490,027)$ 2,363,094$ 2,853,121$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE – INVESTING 4 THE FUTURE FUND YEAR ENDED DECEMBER 31, 2019 (40) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Taxes 4,023,292$ 4,023,292$ 4,159,427$ 136,135$ Investment Income 400,000 400,000 570,873 170,873 Miscellaneous 1,800,000 1,800,000 119,450 (1,680,550) Total Revenues 6,223,292 6,223,292 4,849,750 (1,373,542) EXPENDITURES Current General Government 18,887,458 22,403,210 1,716,855 20,686,355 Capital Outlay - - 8,504,389 (8,504,389) Debt Service Principal 2,465,000 2,465,000 2,465,000 - Interest 1,033,300 1,033,300 1,033,300 - Total Expenditures 22,385,758 25,901,510 13,719,544 12,181,966 NET CHANGE IN FUND BALANCE (16,162,466) (19,678,218) (8,869,794) 10,808,424 Fund Balance - Beginning of Year 26,780,258 29,280,505 29,280,505 - FUND BALANCE - END OF YEAR 10,617,792$ 9,602,287$ 20,410,711$ 10,808,424$ CITY OF WHEAT RIDGE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2019 (41) NOTE 1 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgets and Budgetary Accounting State statutes require that all funds have legally adopted budgets and appropriations. Total expenditures may not exceed the amount appropriated at the fund level. Budgets are adopted for all funds of the City on a basis consistent with generally accepted accounting principles (GAAP). The City follows these procedures to establish the budgetary information reflected in the financial statements:  Management submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them.  Public hearings are conducted to obtain taxpayer comments.  Prior to December 31, the budget is legally adopted through passage of a resolution.  Revisions that alter the total expenditures of any fund must be approved by the City Council.  All appropriations lapse at year end. Budgetary information presented in the financial statements for the Wheat Ridge Urban Renewal Authority was approved by the governing board of the Wheat Ridge Urban Renewal Authority. (42) SUPPLEMENTARY INFORMATION CI T Y O F W H E A T R I D G E CO M B I N I N G B A L A N C E S H E E T NO N M A J O R F U N D S DE C E M B E R 3 1 , 2 0 1 9 (4 3 ) Re c r e a t i o n Po l i c e M u n i c i p a l C o n s e r v a t i o n C e n t e r C r i m e E q u i p m e n t In v e s t i g a t i o n C o u r t T r u s t O p e r a t i n g P r e v e n t i o n P u b l i c A r t R e p l a c e m e n t T o t a l s AS S E T S Ca s h a n d I n v e s t m e n t s 3 7 , 0 0 9 $ 9 6 , 2 6 3 $ 6 4 2 , 1 1 1 $ 1 4 8 , 5 0 6 $ 4 7 7 , 6 3 6 $ 2 3 9 , 6 0 8 $ 1 3 7 , 5 9 5 $ 1 , 7 7 8 , 7 2 8 $ Ac c o u n t s R e c e i v a b l e - - - - 3 1 , 2 1 5 - - 3 1 , 2 1 5 To t a l A s s e t s 3 7 , 0 0 9 $ 9 6 , 2 6 3 $ 6 4 2 , 1 1 1 $ 1 4 8 , 5 0 6 $ 5 0 8 , 8 5 1 $ 2 3 9 , 6 0 8 $ 1 3 7 , 5 9 5 $ 1 , 8 0 9 , 9 4 3 $ LI A B I L I T I E S Ac c o u n t s P a y a b l e - 1 , 6 4 0 1 3 , 4 6 8 1 5 , 0 8 2 5 , 4 9 3 - - 3 5 , 6 8 3 Ac c r u e d L i a b i l i t i e s - - - 4 6 , 0 9 0 1 1 , 0 6 4 - - 5 7 , 1 5 4 To t a l L i a b i l i t i e s - 1 , 6 4 0 1 3 , 4 6 8 6 1 , 1 7 2 1 6 , 5 5 7 - - 9 2 , 8 3 7 FU N D B A L A N C E S Re s t r i c t e d F o r : Op e n S p a c e a n d P a r k s - - 6 2 8 , 6 4 3 - - - - 6 2 8 , 6 4 3 Po l i c e I n v e s t i g a t i o n s 3 7 , 0 0 9 - - - - - - 3 7 , 0 0 9 Cr i m e P r e v e n t i o n A c t i v i t i e s - - - - 4 9 2 , 2 9 4 - - 4 9 2 , 2 9 4 Co m m i t t e d T o : Mu n i c i p a l C o u r t - 9 4 , 6 2 3 - - - - - 9 4 , 6 2 3 Re c r e a t i o n C e n t e r - - - 8 7 , 3 3 4 - - - 8 7 , 3 3 4 Pu b l i c A r t - - - - - 2 3 9 , 6 0 8 - 2 3 9 , 6 0 8 As s i g n e d t o E q u i p m e n t R e p l a c e m e n t - - - - - - 1 3 7 , 5 9 5 1 3 7 , 5 9 5 To t a l F u n d B a l a n c e 3 7 , 0 0 9 9 4 , 6 2 3 6 2 8 , 6 4 3 8 7 , 3 3 4 4 9 2 , 2 9 4 2 3 9 , 6 0 8 1 3 7 , 5 9 5 1 , 7 1 7 , 1 0 6 To t a l L i a b i l i t i e s a n d F u n d B a l a n c e 3 7 , 0 0 9 $ 9 6 , 2 6 3 $ 6 4 2 , 1 1 1 $ 1 4 8 , 5 0 6 $ 5 0 8 , 8 5 1 $ 2 3 9 , 6 0 8 $ 1 3 7 , 5 9 5 $ 1 , 8 0 9 , 9 4 3 $ CI T Y O F W H E A T R I D G E CO M B I N I N G S T A T E M E N T O F R E V E N U E S , E X P E N D I T U R E S , A N D C H A N G E S I N F U N D B A L A N C E S – N O N M A J O R G O V E R N M E N T A L FU N D S YE A R E N D E D D E C E M B E R 3 1 , 2 0 1 9 (4 4 ) Re c r e a t i o n Po l i c e M u n i c i p a l C o n s e r v a t i o n C e n t e r C r i m e E q u i p m e n t In v e s t i g a t i o n C o u r t T r u s t O p e r a t i n g P r e v e n t i o n P u b l i c A r t R e p l a c e m e n t T o t a l s RE V E N U E S Ta x e s - $ - $ - $ - $ 4 5 3 , 8 1 5 $ 8 , 1 6 9 $ - $ 461,984 $ In t e r g o v e r n m e n t a l - - 3 5 8 , 8 8 6 - - 1 6 8 , 0 0 0 - 526,886 Ch a r g e s f o r S e r v i c e s - - - 2 , 1 6 3 , 2 1 2 - 5 , 0 6 9 - 2,168,281 Fi n e s a n d F o r f e i t u r e s - 9 , 5 8 0 - - 1 5 , 1 1 6 - - 24,696 In v e s t m e n t I n c o m e 6 5 5 9 4 2 3 , 9 2 2 5 , 9 5 0 4 , 6 1 0 7 1 6 1 , 6 5 8 37,515 Mis c e l l a n e o u s 7 5 7 - - 2 5 , 6 2 8 - - - 26,385 To t a l R e v e n u e s 8 2 2 1 0 , 1 7 4 3 8 2 , 8 0 8 2 , 1 9 4 , 7 9 0 4 7 3 , 5 4 1 1 8 1 , 9 5 4 1 , 6 5 8 3,245,747 EX P E N D I T U R E S Cu r r e n t Ge n e r a l G o v e r n m e n t - 8 , 0 8 8 - - - - - 8,088 Po l i c e 5 , 9 5 5 - - - 4 7 6 , 6 1 0 - - 482,565 Pa r k s a n d R e c r e a t i o n - - 1 7 7 , 4 1 0 2 , 2 8 2 , 1 4 2 - 8 3 , 5 0 0 - 2,543,052 Ca p i t a l O u t l a y - - - - - - 1 5 3 , 3 3 2 153,332 To t a l E x p e n d i t u r e s 5 , 9 5 5 8 , 0 8 8 1 7 7 , 4 1 0 2 , 2 8 2 , 1 4 2 4 7 6 , 6 1 0 8 3 , 5 0 0 1 5 3 , 3 3 2 3,187,037 EX C E S S O F R E V E N U E S O V E R ( U N D E R ) E X P E N D I T U R E S (5 , 1 3 3 ) 2 , 0 8 6 2 0 5 , 3 9 8 ( 8 7 , 3 5 2 ) ( 3 , 0 6 9 ) 9 8 , 4 5 4 ( 1 5 1 , 6 7 4 ) 58,710 OT H E R F I N A N C I N G S O U R C E S Tr a n s f e r s I n - - - - - - 1 0 0 , 0 0 0 100,000 NE T C H A N G E I N F U N D B A L A N C E S (5 , 1 3 3 ) 2 , 0 8 6 2 0 5 , 3 9 8 ( 8 7 , 3 5 2 ) ( 3 , 0 6 9 ) 9 8 , 4 5 4 ( 5 1 , 6 7 4 ) 158,710 Fu n d B a l a n c e s - B e g i n n i n g o f Y e a r 4 2 , 1 4 2 9 2 , 5 3 7 4 2 3 , 2 4 5 1 7 4 , 6 8 6 4 9 5 , 3 6 3 1 4 1 , 1 5 4 1 8 9 , 2 6 9 1,558,396 FU N D B A L A N C E S - E N D O F Y E A R 37 , 0 0 9 $ 9 4 , 6 2 3 $ 6 2 8 , 6 4 3 $ 8 7 , 3 3 4 $ 4 9 2 , 2 9 4 $ 2 3 9 , 6 0 8 $ 1 3 7 , 5 9 5 $ 1,717,106 $ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE POLICE INVESTIGATION FUND YEAR ENDED DECEMBER 31, 2019 (45) Variance Original Final Positive Budget Budget Actual (Negative)REVENUES Investment Income 45$ 45$ 65$ 20$ Miscellaneous - - 757 757 Total Revenues 45 45 822 777 EXPENDITURES Current Police 15,500 40,300 5,955 34,345 NET CHANGE IN FUND BALANCE (15,455) (40,255) (5,133) 35,122 Fund Balance - Beginning of Year 40,995 42,142 42,142 - FUND BALANCE - END OF YEAR 25,540$ 1,887$ 37,009$ 35,122$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE MUNICIPAL COURT FUND YEAR ENDED DECEMBER 31, 2019 (46) Original Variance and Final Positive Budget Actual (Negative)REVENUES Fines and Forfeitures 27,500$ 9,580$ (17,920)$ Investment Income 750 594 (156) Total Revenues 28,250 10,174 (18,076) EXPENDITURES Current General Government 39,000 8,088 30,912 NET CHANGE IN FUND BALANCE (10,750) 2,086 12,836 Fund Balance - Beginning of Year 91,366 92,537 1,171 FUND BALANCE - END OF YEAR 80,616$ 94,623$ 14,007$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CONSERVATION TRUST FUND YEAR ENDED DECEMBER 31, 2019 (47) Original Variance and Final Positive Budget Actual (Negative)REVENUES Intergovernmental 320,000$ 358,886$ 38,886$ Investment Income 4,000 23,922 19,922 Total Revenues 324,000 382,808 58,808 EXPENDITURES Current Parks and Recreation 303,700 177,410 126,290 NET CHANGE IN FUND BALANCE 20,300 205,398 185,098 Fund Balance - Beginning of Year 46,726 423,245 376,519 FUND BALANCE - END OF YEAR 67,026$ 628,643$ 561,617$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE RECREATION CENTER OPERATING FUND YEAR ENDED DECEMBER 31, 2019 (48) Original Variance and Final Positive Budget Actual (Negative)REVENUES Charges for Services 2,190,392$ 2,163,212$ (27,180)$ Investment Income 8,000 5,950 (2,050) Miscellaneous 25,000 25,628 628 Total Revenues 2,223,392 2,194,790 (28,602) EXPENDITURES Current Parks and Recreation 2,489,411 2,282,142 207,269 NET CHANGE IN FUND BALANCE (266,019) (87,352) 178,667 Fund Balance - Beginning of Year 278,165 174,686 (103,479) FUND BALANCE - END OF YEAR 12,146$ 87,334$ 75,188$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CRIME PREVENTION FUND YEAR ENDED DECEMBER 31, 2019 (49) Original Variance and Final Positive Budget Actual (Negative)REVENUES Lodgers Taxes 456,000$ 453,815$ (2,185)$ Fines and Forfeitures 25,000 15,116 (9,884) Investment Income 7,000 4,610 (2,390) Total Revenues 488,000 473,541 (14,459) EXPENDITURES Current Police 596,121 476,610 119,511 NET CHANGE IN FUND BALANCE (108,121) (3,069) 105,052 Fund Balance - Beginning of Year 523,676 495,363 (28,313) FUND BALANCE - END OF YEAR 415,555$ 492,294$ 76,739$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE PUBLIC ART FUND YEAR ENDED DECEMBER 31, 2019 (50) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Use Taxes 9,000$ 9,000$ 8,169$ (831)$ Intergovernmental - - 168,000 168,000 Charges for Services 172,430 172,430 5,069 (167,361) Investment Income 1,000 1,000 716 (284) Total Revenues 182,430 182,430 181,954 (476) EXPENDITURES Current Parks and Recreation 65,000 83,500 83,500 - NET CHANGE IN FUND BALANCE 117,430 98,930 98,454 (476) Fund Balance - Beginning of Year 105,578 141,154 141,154 - FUND BALANCE - END OF YEAR 223,008$ 240,084$ 239,608$ (476)$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE EQUIPMENT REPLACEMENT FUND YEAR ENDED DECEMBER 31, 2019 (51) Variance Original Final Positive Budget Budget Actual (Negative) REVENUES Investment Income 3,300$ 3,300$ 1,658$ (1,642)$ EXPENDITURES Capital Outlay 163,127 220,412 153,332 67,080 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (159,827) (217,112) (151,674) 65,438 OTHER FINANCIAL SOURCES Transfers In 100,000 100,000 100,000 - NET CHANGE IN FUND BALANCE (59,827) (117,112) (51,674) 65,438 Fund Balance - Beginning of Year 130,718 189,269 189,269 - FUND BALANCE - END OF YEAR 70,891$ 72,157$ 137,595$ 65,438$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS FUND YEAR ENDED DECEMBER 31, 2019 (52) Variance Original Final Positive Budget Budget Actual (Negative)REVENUES Lodgers Taxes 300,000$ 300,000$ 302,544$ 2,544$ Intergovernmental 7,029,000 7,029,000 2,548,610 (4,480,390) Charges for Services 12,000 12,000 57,193 45,193 Investment Income 12,000 12,000 15,505 3,505 Miscellaneous 175,000 175,000 - (175,000) Total Revenues 7,528,000 7,528,000 2,923,852 (4,604,148) EXPENDITURES Public Works - - 118,039 (118,039) Capital Outlay 10,552,000 9,804,355 6,997,025 2,807,330 Total Expenditures 10,552,000 9,804,355 7,115,064 2,689,291 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,024,000) (2,276,355) (4,191,212) (1,914,857) OTHER FINANCIAL SOURCES Transfers In 3,040,000 3,040,000 3,040,000 - NET CHANGE IN FUND BALANCE 16,000 763,645 (1,151,212) (1,914,857) Fund Balance - Beginning of Year 10,792 1,204,689 1,204,689 - FUND BALANCE - END OF YEAR 26,792$ 1,968,334$ 53,477$ (1,914,857)$ CITY OF WHEAT RIDGE BALANCE SHEET COMPONENT UNIT – URBAN RENEWAL AUTHORITY DECEMBER 31, 2019 (53) ASSETS Cash and Investments 2,226,351$ Restricted Cash and Investments 1,232,307 Accounts Receivable 152,036 Property Taxes Receivable 1,017,650 Property Held for Resale 330,299 Total Assets 4,958,643$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCE Liabilities Accounts Payable 397,201$ Deferred Inflows of Resources Property Taxes 1,017,650 Fund Balance Nonspendable Property Held for Resale 330,299 Restricted for Debt Service 1,232,307 Unrestricted, Unassigned 1,981,186 Total Fund Balance 3,543,792 Total Liabilities, Deferred Inflows of Resources and Fund Balance 4,958,643$ Amounts Reported for the Component Unit in the Statement of Net Position are Different Because: Total Fund Balance of Component Unit 3,543,792$ Capital assets used in governmental activities are not current financial resources, and therefore, are not reported in governmental funds. 4,999,880 Long-term liabilities are not due and payable in the current year, and therefore, are not reported in governmental funds. Notes Payable (8,213,458) Accrued Interest (85,609) Total Net Position of Component Unit 244,605$ CITY OF WHEAT RIDGE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE COMPONENT UNIT – URBAN RENEWAL AUTHORITY YEAR ENDED DECEMBER 31, 2019 (54) REVENUES Property Tax Increment 470,702$ Sales Tax Increment 726,585 Intergovernmental 300,000 Investment Income 74,832 Total Revenues 1,572,119 EXPENDITURES Current Community Development 127,720 Capital Outlay 5,723,249 Debt Service Principal 285,000 Interest 305,066 Total Expenditures 6,441,035 NET CHANGE IN FUND BALANCE (4,868,916) Fund Balance - Beginning of year 8,412,708 FUND BALANCE - END OF YEAR 3,543,792$ Amounts Reported for the Component Unit in the Statement of Activities are Different Because: Net Change in Fund Balance of Component Unit (4,868,916)$ Capital outlays to purchase or construct capital assets are reported in governmental funds as expenditures. However, for governmental activities those costs are capitalized in the statement of net position and are allocated over the estimated useful lives as annual depreciation expense in the statement of activities. 4,999,880 Repayments of long-term debt are expenditures in governmental funds, but the repayment reduces long-term liabilities in the statement of net position and does not affect the statement of activities. This amount represents loan payments in the current year. 285,000 Some expenses reported in the statement of activities do not require the use of current financial resources, and therefore, are not reported as expenditures in governmental funds. This amount represents changes in accrued interest payable and changes in the pollution remediation liability. 72,590 Change in Net Position of Component Unit 488,554$ CITY OF WHEAT RIDGE BUDGETARY COMPARISON SCHEDULE WHEAT RIDGE URBAN RENEWAL AUTHORITY YEAR ENDED DECEMBER 31, 2019 (55) Variance Original Final Positive Budget Budget Actual (Negative)REVENUES Property Tax Increment 443,675$ 458,806$ 470,702$ 11,896$ Sales Tax Increment 612,595 612,595 726,585 113,990 Intergovernmental 300,000 300,000 300,000 - Investment Income 800 35,000 74,832 39,832 Total Revenues 1,357,070 1,406,401 1,572,119 165,718 EXPENDITURES Current Community Development 127,600 229,402 127,720 101,682 Capital Outlay 820,000 5,880,000 5,723,249 156,751 Debt Service Principal 285,000 285,000 285,000 - Interest 375,775 375,775 305,066 70,709 Total Expenditures 1,608,375 6,770,177 6,441,035 329,142 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (251,305) (5,363,776) (4,868,916) 494,860 OTHER FINANCIAL SOURCES Proceeds from Sale of Property 355,219 355,219 - (355,219) Total Other Financing Sources (Uses) 355,219 355,219 - (355,219) NET CHANGE IN FUND BALANCE 103,914 (5,008,557) (4,868,916) 139,641 Fund Balance - Beginning of Year 969,384 8,412,708 8,412,708 - FUND BALANCE - END OF YEAR 1,073,298$ 3,404,151$ 3,543,792$ 139,641$ STATE COMPLIANCE CITY OF WHEAT RIDGE LOCAL HIGHWAY FINANCE REPORT YEAR ENDED DECEMBER 31, 2019 (55) City or County: WHEAT RIDGEYEAR ENDING : December 2019 This Information From The Records Of The City of Wheat Ridge: Prepared By: Mark Colvin, FinanceManagerPhone: 303-235-2817 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway- Federal HighwayTaxes Taxes User Taxes Administration1. Total receipts available 2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes AMOUNT AMOUNT A. Receipts from local sources: A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2) 2,674,794 a. Motor Fuel (from Item I.A.5.) 2. Maintenance: 5,324,363 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 72,531 2. General fund appropriations b. Snow and ice removal 42,866 3. Other local imposts (from page 2) 8,375,379 c. Other 4. Miscellaneous local receipts (from page 2) 482,124 d. Total (a. through c.) 115,397 5. Transfers from toll facilities 4. General administration & miscellaneous 870,242 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 2,616,775 a. Bonds - Original Issues 6. Total (1 through 5) 11,601,571 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.) a. Interest 7. Total (1 through 6) 8,857,503 b. Redemption B. Private Contributions 11,809 c. Total (a. + b.) - C. Receipts from State government 2. Notes: (from page 2) 1,271,934 a. Interest D. Receipts from Federal Government b. Redemption (from page 2) 1,460,325 c. Total (a. + b.) - E. Total receipts (A.7 + B + C + D)11,601,571 3. Total (1.c + 2.c) - C. Payments to State for highwaysD. Payments to toll facilities E. Total disbursements (A.6 + B.3 + C + D)11,601,571 Opening Debt Amount Issued Redemptions Closing Debt A. Bonds (Total)- 1. Bonds (Refunding Portion)B. Notes (Total)- A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation- 11,601,571 11,601,571 - - Notes and Comments: FORM FHWA-536 (Rev. 1-05)(Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par) ITEM AND STREET PURPOSES CITY OF WHEAT RIDGE LOCAL HIGHWAY FINANCE REPORT YEAR ENDED DECEMBER 31, 2019 (56) City or County: WHEAT RIDGE YEAR ENDING :December 2019 AMOUNT AMOUNTA.3. Other local imposts: A.4. Miscellaneous local receipts: a. Property Taxes and Assessments 995,709 a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 198,417 1. Sales Taxes 7,379,670 c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 269,772 5. Specific Ownership &/or Other g. Other Misc. Receipts 13,935 6. Total (1. through 5.) 7,379,670 h. Other c. Total (a. + b.) 8,375,379 i. Total (a. through h.) 482,124 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 1,271,934 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations d. Federal Transit Admin 1,460,325 d. Other - Local Government 0 e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.) 0 g. Total (a. through f.) 1,460,325 4. Total (1. + 2. + 3.f) 1,271,934 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONAL HIGHWAY HIGHWAY TOTALSYSTEM SYSTEM (a) (b) (c) A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 2,213,320 2,213,320 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 461,474 461,474 (5). Total Construction (1) + (2) + (3) + (4) 461,474 0 461,474 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5) 2,674,794 0 2,674,794 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM (57) FEDERAL COMPLIANCE – SINGLE AUDIT (58) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Wheat Ridge, Colorado, as of and for the year ended December 31, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 21, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (59) Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. a CliftonLarsonAllen LLP Broomfield, Colorado July 21, 2020 (60) INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado Wheat Ridge, Colorado Report on Compliance for Each Major Federal Program We have audited the City of Wheat Ridge, Colorado’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended December 31, 2019. The City’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2019. Honorable Mayor and Members of City Council City of Wheat Ridge, Colorado (61) Report on Internal Control Over Compliance Management of the City of Wheat Ridge, Colorado is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. a CliftonLarsonAllen LLP Broomfield, Colorado July 21, 2020 CITY OF WHEAT RIDGE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2019 (62) Federal Pass-Through Federal Grantor/Pass through Grantor/CFDA Grantor's Federal Program or Cluster Title Number Number Expenditures Executive Office of the President High Intensity Drug Trafficking Areas Program 95.001 N/A 35,290$ Total Executive Office of the President Programs 35,290 Department of Justice Passed Through the Colorado Division of Criminal Justice Organized Crime Drug Enforcement Task Forces 16.738 N/A 15,809 Edward Byrne Memorial Justice Assistance Grant 16.738 N/A 10,440 Edward Byrne Memorial Justice Assistance Grant 16.738 N/A 10,178 Edward Byrne Memorial Justice Assistance Grant 16.738 N/A 10,095 Subtotal for CFDA 16.738 46,522 Body Worn Camera 16.835 2017-BC-BX-0079 89,802 Bullet Proof Vest 16.607 N/A 2,646 Total Department of Justice Programs 138,970 Department of Interior Passed Through Colorado Parks and Wildlife Outdoor Recreation Acquisition, Development, and Planning 15.916 18-TRLG-107190 84,512 Total Department of Interior 84,512 Department of Transportation Passed Through the Colorado Department of Transportation Highway Planning and Construction 20.205 16-HA1-ZH-00035 1,879,707 Total Department of Transportation 1,879,707 Total Expenditures of Federal Awards 2,138,479$ See accompanying notes to the Schedule of Expenditures of Federal Awards CITY OF WHEAT RIDGE NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2019 (63) NOTE 1 BASIS OF ACCOUNTING The schedule of expenditures of federal awards is prepared on the modified accrual basis of accounting. Expenditures are recognized when they become a demand on current available financial resources. Encumbrances are used during the year for budgetary control purposes and lapse at fiscal year-end. NOTE 2 INDIRECT COST RATE The City has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 3 SUBRECIPIENTS The City did not have subrecipients of federal awards for the year ended December 31, 2019. CITY OF WHEAT RIDGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2019 (64) Section I – Summary of Auditors’ Results Financial Statements 1. Type of auditors’ report issued: Unmodified 2. Internal control over financial reporting:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 3. Noncompliance material to financial statements noted? yes x no Federal Awards 1. Internal control over major federal programs:  Material weakness(es) identified? yes x no  Significant deficiency(ies) identified? yes x none reported 2. Type of auditors’ report issued on compliance for major federal programs: Unmodified 3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? yes x no Identification of Major Federal Programs CFDA Number(s) Name of Federal Program or Cluster 20.205 Highway Planning and Construction Dollar threshold used to distinguish between Type A and Type B programs: $ 750,000 Auditee qualified as low-risk auditee? yes x no CITY OF WHEAT RIDGE SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED DECEMBER 31, 2019 (65) Section II – Financial Statement Findings Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. Section III – Findings and Questioned Costs – Major Federal Programs Our audit did not disclose any matters required to be reported in accordance with 2 CFR 200.516(a). ATTACHMENT 2 ATTACHMENT 3 ITEM NO: DATE: July 27, 2020 REQUEST FOR CITY COUNCIL ACTION TITLE: RESOLUTION NO. 40-2020 - A RESOLUTION DESIGNATING THE MUNICIPAL BUILDING MAIN ENTRANCE AS THE OFFICIAL PUBLIC NOTICE POSTING LOCATION AND THE JEFFCO TRANSCRIPT AS THE OFFICIAL NEWSPAPER OF GENERAL CIRCULATION FOR THE CITY PUBLICATIONS IN 2020 PUBLIC HEARING ORDINANCES FOR 1ST READING BIDS/MOTIONS ORDINANCES FOR 2ND READING RESOLUTIONS QUASI-JUDICIAL: YES NO _______________________________ ______________________________ Steve Kirkpatrick, City Clerk Patrick Goff, City Manager ISSUE: State statute requires that each municipality annually establish the location for posting public notices, as well as the newspaper in which the notices will be published. Pursuant to the newly enacted HB19-1087, local government entities are also now allowed to publish notices on-line for public meetings. This act amended C.R.S. 24-6-402 (2) (c.) (I) which are “meetings at which the adoption of any proposed policy, position, resolution, rule, regulation or formal action occurs or at which a majority or quorum of body is in attendance…” PRIOR ACTION: In previous years, the Wheat Ridge Transcript has been utilized as the City's official newspaper for publications; official posting location had been the City Hall Lobby. Since Council passed Resolution 02-2020, in January 2020 the publisher has discontinued publication of the Wheat Ridge Transcript and instead will publish the Jeffco Transcript. In addition, due to COVID related building closures, the official posting location has been moved from the City Hall Lobby to a display cabinet at the main entrance of the municipal building. This resolution replaces 02-2020 and designates the Jeffco Transcript as the official newspaper for City publications and the municipal building main entrance as the official public notice posting location. 7 Council Action Form – Official Publication and Posting Notice Location July 27, 2020 Page 2 FINANCIAL IMPACT: None BACKGROUND: None RECOMMENDATIONS: It is recommended the City formally designate the public notice posting location as the municipal building main entrance and the Jeffco Transcript as the official newspaper of general circulation for publishing all public notices. RECOMMENDED MOTION: "I move to approve Resolution No. 40-2020, a resolution designating the municipal building main entrance as the official public notice posting location and the Jeffco Transcript as the official newspaper of general circulation for the City Publications in 2020.” Or, "I move to postpone indefinitely Resolution No. 40-2020, a resolution designating the municipal building main entrance as the official public notice posting location and the Jeffco Transcript as the official newspaper of general circulation for the City Publications in 2020 for the following reason(s) _______________________." REPORT PREPARED/REVIEWED BY; Robin L. Eaton, Deputy City Clerk Steve Kirkpatrick, City Clerk Patrick Goff, City Manager ATTACHMENTS: 1. Resolution No. 40-2020 2. HB19-1087 CITY OF WHEAT RIDGE, COLORADO RESOLUTION NO. 40 Series of 2020 TITLE: A RESOLUTION DESIGNATING THE MUNICIPAL BUILDING MAIN ENTRANCE AS THE OFFICIAL PUBLIC NOTICE POSTING LOCATION AND THE JEFFCO TRANSCRIPT AS THE OFFICIAL NEWSPAPER OF GENERAL CIRCULATION FOR CITY PUBLICATIONS IN 2020 WHEREAS, the Colorado Revised Statutes require municipalities to designate official public notice and publication locations for legal notices; and WHEREAS, such locations must be approved by the governing body of the municipality annually; and WHEREAS, the City is required by Charter, Ordinance and state law to publish certain notices. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Wheat Ridge, Colorado, as follows: Section 1. Public notice of public meetings of the City Council, Planning Commission, Board of Adjustment, and all other Board, Commission, Committee, and advisory board meetings for which public notice is required, shall be posted at the main entrance to the Municipal Building, 7500 West 29th Avenue, Wheat Ridge, Colorado, which location shall be deemed the official posting location for the City. Section 2. Except as otherwise permitted by Sections 5.2 and 5.12 of the Charter, notices and other information required to be published in a newspaper of general circulation within the City, shall be made in the Jeffco Transcript; except that, where circumstances make publication ineffective or otherwise undesirable, the City may publish official notice on the City’s website. Section 3. This resolution supersedes and replaces Resolution No. 02-2020 and shall be effective upon adoption. DONE AND RESOLVED this 27th day of July 2020. Bud Starker, Mayor ATTEST: Steve Kirkpatrick, City Clerk ATTACHMENT 1 HOUSE BILL 19-1087 BY REPRESENTATIVE(S) Soper and Hansen, Coleman, McKean, Snyder, Williams D., Bockenfeld, Gray, Jaquez Lewis, Kipp, Rich, Tipper, Titone, Weissman; also SENATOR(S) Woodward and Bridges, Gonzales, Hisey, Moreno, Todd. CONCERNING ONLINE NOTICE OF PUBLIC MEETINGS OF A LOCAL GOVERNMENTAL ENTITY. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-6-402, amend (2)(c) as follows: 24-6-402. Meetings - open to public - legislative declaration - definitions. (2) (c) (I) Any meetings at which the adoption of any proposed policy, position, resolution, rule, regulation, or formal action occurs or at which a majority or quorum of the body is in attendance, or is expected to be in attendance, shall be held only after full and timely notice to the public. In addition to any other means of full and timely notice, a local public body shall be deemed to have given full and timely notice if the notice of the meeting is posted in a designated public place within the boundaries of the Capital letters or bold & italic numbers indicate new material added to existing law; dashes through words or numbers indicate deletions from existing law and such material is not part of the act. ATTACHMENT 2 local public body no less than twenty-four hours prior to the holding of the meeting. The public place or places for posting such notice shall be designated annually at the local public body's first regular meeting of each calendar year. The posting shall include specific agenda information where possible. (II) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT: (A) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT LOCAL GOVERNMENTS TRANSITION FROM POSTING PHYSICAL NOTICES OF PUBLIC MEETINGS IN PHYSICAL LOCATIONS TO POSTING NOTICES ON A WEBSITE, SOCIAL MEDIA ACCOUNT, OR OTHER OFFICIAL ONLINE PRESENCE OF THE LOCAL GOVERNMENT TO THE GREATEST EXTENT PRACTICABLE; (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO RELIEVE A LOCAL GOVERNMENT OF THE REQUIREMENT TO PHYSICALLY POST MEETING NOTICES, WITH CERTAIN EXCEPTIONS, IF THE LOCAL GOVERNMENT COMPLIES WITH THE REQUIREMENTS OF ONLINE POSTED NOTICES OF MEETINGS; (C) A NUMBER OF FACTORS MAY AFFECT THE ABILITY OF SOME LOCAL GOVERNMENTS TO EASILY ESTABLISH A WEBSITE, POST MEETING NOTICES ONLINE, AND OTHERWISE BENEFIT FROM HAVING AN ONLINE PRESENCE, INCLUDING THE AVAILABILITY OF BROADBAND OR RELIABLE BROADBAND, THE LACK OF CELLULAR TELEPHONE AND DATA SERVICES, AND FISCAL OR STAFFING CONSTRAINTS OF THE LOCAL GOVERNMENT; (D) LOCAL GOVERNMENTS ARE ENCOURAGED TO AVAIL THEMSELVES OF EXISTING FREE RESOURCES FOR CREATING A WEBSITE AND RECEIVING CONTENT MANAGEMENT ASSISTANCE FROM THE COLORADO STATEWIDE INTERNET PORTAL AUTHORITY AND STATEWIDE ASSOCIATIONS REPRESENTING LOCAL GOVERNMENTAL ENTITIES; AND (E) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO CLOSELY MONITOR THE TRANSITION TO PROVIDING NOTICES OF PUBLIC MEETINGS ONLINE OVER THE NEXT TWO YEARS AND, IF SIGNIFICANT PROGRESS IS NOT MADE, TO BRING LEGISLATION MANDATING IN STATUTE THAT ALL NOTICES BE POSTED ONLINE EXCEPT IN VERY NARROW CIRCUMSTANCES THAT ARE BEYOND THE CONTROL OF A LOCAL GOVERNMENT. (III) ON AND AFTER JULY 1, 2019, A LOCAL PUBLIC BODY SHALL BE PAGE 2-HOUSE BILL 19-1087 DEEMED TO HAVE GIVEN FULL AND TIMELY NOTICE OF A PUBLIC MEETING IF THE LOCAL PUBLIC BODY POSTS THE NOTICE, WITH SPECIFIC AGENDA INFORMATION IF AVAILABLE, NO LESS THAN TWENTY-FOUR HOURS PRIOR TO THE HOLDING OF THE MEETING ON A PUBLIC WEBSITE OF THE LOCAL PUBLIC BODY. THE NOTICE MUST BE ACCESSIBLE AT NO CHARGE TO THE PUBLIC. THE LOCAL PUBLIC BODY SHALL, TO THE EXTENT FEASIBLE, MAKE THE NOTICES SEARCHABLE BY TYPE OF MEETING, DATE OF MEETING, TIME OF MEETING, AGENDA CONTENTS, AND ANY OTHER CATEGORY DEEMED APPROPRIATE BY THE LOCAL PUBLIC BODY AND SHALL CONSIDER LINKING THE NOTICES TO ANY APPROPRIATE SOCIAL MEDIA ACCOUNTS OF THE LOCAL PUBLIC BODY. A LOCAL PUBLIC BODY THAT PROVIDES NOTICE ON A WEBSITE PURSUANT TO THIS SUBSECTION (2)(c)(III) SHALL PROVIDE THE ADDRESS OF THE WEBSITE TO THE DEPARTMENT OF LOCAL AFFAIRS FOR INCLUSION IN THE INVENTORY MAINTAINED PURSUANT TO SECTION 24-32-116. A LOCAL PUBLIC BODY THAT POSTS A NOTICE OF A PUBLIC MEETING ON A PUBLIC WEBSITE PURSUANT TO THIS SUBSECTION (2)(c)(III) MAY IN ITS DISCRETION ALSO POST A NOTICE BY ANY OTHER MEANS INCLUDING IN A DESIGNATED PUBLIC PLACE PURSUANT TO SUBSECTION (2)(c)(I) OF THIS SECTION; EXCEPT THAT NOTHING IN THIS SECTION SHALL BE CONSTRUED TO REQUIRE SUCH OTHER POSTING. A LOCAL PUBLIC BODY THAT POSTS NOTICES OF PUBLIC MEETINGS ON A PUBLIC WEBSITE PURSUANT TO THIS SUBSECTION (2)(c)(III) SHALL DESIGNATE A PUBLIC PLACE WITHIN THE BOUNDARIES OF THE LOCAL PUBLIC BODY AT WHICH IT MAY POST A NOTICE NO LESS THAN TWENTY-FOUR HOURS PRIOR TO A MEETING IF IT IS UNABLE TO POST A NOTICE ONLINE IN EXIGENT OR EMERGENCY CIRCUMSTANCES SUCH AS A POWER OUTAGE OR AN INTERRUPTION IN INTERNET SERVICE THAT PREVENTS THE PUBLIC FROM ACCESSING THE NOTICE ONLINE. (IV) FOR PURPOSES OF THIS SECTION, "LOCAL PUBLIC BODY" INCLUDES MUNICIPALITIES, COUNTIES, SCHOOL BOARDS, AND SPECIAL DISTRICTS. SECTION 2. In Colorado Revised Statutes, 32-1-903, amend (2) as follows: 32-1-903. Meetings. (2) Notice of time and place designated for all regular AND SPECIAL meetings shall be posted in at least thrcc pu auk, the-limits--of-the-specia-1-distriet,and, in addArun, vrre s notice si-raii-b-e-posteti-itrthe-o-ffree-erft-h-e-cotmtreferk-anci-rteorderirr the-county or counties in w hich the sptueial distrnti-s oca 11,1 11 PAGE 3-HOUSE BILL 19-1087 postca ana snailc cnangea in tllc cvcnt i putt or such regular meetings is changed PROVIDED IN ACCORDANCE WITH SECTION 24-6-402. Special meetings may be called by any director by informing the other directors of the date, time, and place of such special meeting, and the purpose for which it is called, and by posting PROVIDING notice as provided in this section at least seventy-two hours prior to said meeting IN ACCORDANCE WITH SECTION 24-6-402. All official business of the board shall be conducted only during said regular or special meetings at which a quorum is present, and all said meetings shall be open to the public. SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 2, 2019, if adjournment sine die is on May 3, 2019); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless PAGE 4-HOUSE BILL 19-1087 Leroy M. Garcia PRESIDENT OF THE SENATE 7 approved by the people at the general election to be held in November 2020 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. /(C/C7j-e-Cro&A..,... KC Becker SPEAKER OF THE HOUSE OF REPRESENTATIVES le.444.Jcz,c;e6-w Marilyn Eddths CHIEF CLERK OF THE HOUSE OF REPRESENTATIVES JP/' ezx c.et_g& n)64A6-C-Ce Cindi L. Markwell SECRETARY OF THE SENATE APPROVED Api.L 25 r et c4--- t13 p .Nt (Date and Time) PAGE 5-HOUSE BILL 19-1087