All members of City Council were present for roll call with the exception of Mayor Snyder, who was excused.

A Regular Meeting of the Manitou Springs City Council was held in the City Council Chambers, 606 Manitou Avenue, Manitou Springs, Colorado, on July 1, 2014. COUNCILMEMBERS PRESENT FOR ROLL CALL: Mayor Pro Tem Coreen Toll Councilman Gary L. Smith Councilwoman Donna Ford Councilman Randy R. Hodges Councilman Kevin Sarge Mac Donald II Councilwoman Nicole Nicoletta COUNCILMEMBERS NOT PRESENT FOR ROLL CALL: Mayor Marc A. Snyder STAFF PRESENT: City Attorney Jeff Parker Police Chief Joe Ribeiro Finance Director Rebecca Davis Planning Director Wade Burkholder Public Works Director Bruno Pothier Deputy City Clerk Richard Parsons A. CALL TO ORDER Mayor Pro Tem Toll called the meeting to order at 7:03 p.m. B. PLEDGE OF ALLEGIANCE The meeting opened with the Pledge of Allegiance. C. ROLL CALL All members of City Council were present for roll call with the exception of Mayor Snyder, who was excused. D. APPROVAL OF AGENDA As requested by Joe Ribeiro, Mayor Pro Tem Toll proposed Item I.5 be moved up the agenda to be considered immediately after public comment on non-agenda items. Upon a motion by Councilwoman Nicoletta and a second by Councilman Mac Donald, the agenda was approved as amended. Motion carried 6-0. E. OATH OF OFFICE FOR OFFICERS SETTLE AND NUCI Richard Parsons issued the Oath of Office to Officer Settle and Officer Nuci. Joe Ribeiro shared the Peelian Principles of Policing. Ken Nuci pinned the badge on Officer Nuci and Adam Settle pinned the badge on Officer Settle. Joe Ribeiro led officers through the Oath of Honor F. PUBLIC COMMENT ON NON-AGENDA ITEMS Keith Ahrens, resident, commented on crosswalks not being repainted and explained that it was a safety issue. Mr. Ahrens also said that the sediment removal project did not bring Fountain Creek to pre-flood levels in some places and that 18

JULY 1, 2014 Regular City Council Meeting Page 2 of 7 additional inches should have been removed from behind 906 Manitou Avenue. He also stated that the Canon Parking Lot still had two pieces of fence that needed to be put back in place. Mayor Pro Tem Toll suggested that Keith Ahrens attend the July 8, 2014 Worksession for a Williams Canyon Update. At this time Mayor Pro Tem Toll introduced Item I.5 Presentation of MSPD Strategic Plan I. NEW BUSINESS 5. Presentation of MSPD Strategic Plan Joe Ribeiro introduced the Manitou Springs Police Department (MSPD) Strategic Plan and shared the process to develop its goals. He stated that the Strategic Plan is the first formal plan developed for the Police Department and that its goals were created by a strong team effort from the Department. Joe Ribeiro offered tokens of recognition to the following members who worked on the Plan: - Betheny Kelemen - Justin Pikul - Melissa Warden - Odette Saglimbeni - Joseph Hendrickson - Orian Hendrickson G. FLOOD MITIGATION REPORT Jason Wells updated City Council on the status of the Williams Canyon Project, reporting that: - There were issues developing as a result of hitting bedrock and encountering low grade water - The NRCS schedule needed to be adjusted H. CONSENT CALENDER The following items were acted upon by the unanimous consent of the members present: 1. Warrants 2. Approval of the Minutes of the June 17, 2014 Regular City Council Meeting 3. Approval of a Request to Hang a Banner over CDOT Right-of-Way from Tuesday, September 2, 2014 Monday, September 22, 2014 (or from September 15-22, 2014 if there is a Conflict with Another Applicant) for the Manifest Festival Smokebrush Foundation (Joy Purna-Vernon), Applicant 4. Approval of a Special Event in Soda Springs Pavilion from 6:00 am 2:00 pm on Sunday, July 13, 2014 for the Barr Trail Mountain Race Awards Ceremony John O Neil, Applicant 5. FINAL ORDER RE: Appeal from Denial by Planning Commission of Application for Variance 56 Park Avenue Mayor Pro Tem Toll commented that there was an error on Item H.5. Jeff Parker explained that in Item H.5, under section D.1, the word height should be corrected to say parking with regard to the variance. Councilwoman Nicoletta and Councilman Mac Donald abstained from voting to approve Item H.2 since they were not in attendance at that meeting. They did vote to approve the other items on the Consent Calendar. Upon a motion by Councilman Hodges and a second by Councilwoman Ford, the Consent Calendar was unanimously approved with said modification to Item H.5. Motion carried 6-0.

JULY 1, 2014 Regular City Council Meeting Page 3 of 7 I. NEW BUSINESS 1. Approval of a Second Amendment to the IGA with El Paso County Regarding Participation in the CDBG Program Jason Wells explained that this Amendment was adding the City of Monument to the CDBG IGA. Jason Wells volunteered to serve as the delegate to the CDBG Program. General discussion about IGA funds assisting the City followed. Upon a motion by Councilman Smith and a second by Councilwoman Nicoletta, a Second Amendment to the IGA with El Paso County Regarding Participation in the CDBG Program was unanimously approved. Motion carried 6-0. 2. Request by the Public Services Department for the Parking Department to Share in Cost for Paint to Mark On-Street Parking. Wade Burkholder stated that the Parking Authority Board is in support of cost-sharing with Public Works on half the cost of paint for marking on-street parking and yellow curbs along Manitou, Canon, Park, and Ruxton Avenues this summer. He stated that the Parking Authority Board is asking City Council to approve this cost-sharing and to allow the funding for the Parking Authority Board s portion to come out of parking revenues. Councilman Smith asked if there would be enough money from this arrangement to repaint crosswalks. Bruno Pothier answered that some of the money would be used for repainting crosswalks. Councilman Hodges asked where funding normally comes from for street painting. Bruno Pothier answered that funding comes out of the traffic budget, but the traffic budget came in short due to increased maintenance this year. General discussion about funding for parking and streets followed. Councilwoman Ford requested that parking have its own deployable electronic signs dedicated to parking purposes. General discussion about parking signage followed. Upon a motion by Councilman Hodges and a second by Councilwoman Ford, the Request by the Public Services Department for the Parking Department to Share in Cost for Paint to Mark On-Street Parking was unanimously approved. Motion carried 6-0. 3. Westside Avenue Action Plan Update Wade Burkholder updated Council on this item: - Wade and Bruno are on the project management team. - FHU, the consulting firm managing the Westside Avenue Action Plan, is moving towards a 30% design plan; they are taking comments from the various jurisdictions involved and developing 30% of a plan. This phase ends in September and the plan will be opened to comment from the public. - It is very important for Manitou to be involved in these plans and designs as the City of Manitou Springs may want to expand the plan beyond the initial development zone through to the west side of the City. - That it is important that there be a distinction about when you are entering Manitou Springs. - A 50% design plan is following the 30% design plan. FHU is hoping to have a full design completed early next year because they want to start undergrounding utilities by the summer of 2015. - All of Manitou Springs encroachments need to be documented. General discussion regarding the Westside Manitou Action Plan and the initial design features followed. Mayor Pro Tem Toll discussed non-permitted long-term housing taking place and some of the resources available to the City to assist with low income housing situations.

JULY 1, 2014 Regular City Council Meeting Page 4 of 7 4. Resolution No. 2514, a Resolution Approving the Adoption of Governmental Accounting Standards (GASB) Statement Number 54 Concerning Fund Balance Reporting and Governmental Fund Type Definitions Rebecca Davis explained how donations are currently organized and tracked. She then stated that she is asking for permission to break donation amounts into separate assigned fund balances, as needed, in order to ensure that donations will be spent for their intended purpose, due to reporting changes required by GASB 54. Upon a motion by Councilman Smith and a second by Councilman Hodges, Resolution No. 2514 was unanimously approved as presented. Motion carried 6-0. 5. Presentation of the MSPD Strategic Plan This item was considered earlier in the meeting. J. HEARINGS 1. CU 1408 - Conditional Use (Dual Retail and Medical Marijuana Establishment) - 27 Manitou Avenue - Absolute Manitou Wellness Center, LLC dba Reserve1 on behalf of Nolan Capital, LLC (Rudy Saenz), Applicant. Wade Burkholder opened the public hearing by explaining that the applicant is seeking approval to allow the operation of a Retail and Medical Marijuana Establishment at 27 Manitou Avenue. He informed the City Council that by a vote of 6-0, the Planning Commission recommended approval with 7 Conditions and 3 Findings. Jim Bensberg, applicant representative, stated that the applicant is in full agreement with all conditions and notations of the Planning Commission and that they have come to an agreement with El Colorado Lodge. Mr. Bensberg briefly reviewed the Planning Commission recommendations. Larry Gillane, architect for the applicant, discussed the interior and exterior modifications to the building and the parking plan. Councilwoman Nicoletta asked about different age requirements for retail marijuana vs. medical. Gary Findlay, general manager, explained age laws for medical and retail marijuana. Gary Findlay also discussed the fence between the future Reserve1 property, the El Colorado Lodge, as well as additional property plans. Larry Gillen explained the interior of the building. Gary Findlay stated that they will have a system to track customer daily marijuana purchases in order to abide by the legal daily limit. General discussion regarding Reserve1 s operating plan followed. There was no public comment. Councilman Mac Donald made a motion, seconded by Councilman Hodges, to approve CU 1408 with the 7 conditions and 3 findings recommended by the Planning Commission. Upon a call for the vote, the motion was unanimously approved as presented. Motion carried 6-0. The conditions and findings were as follows: Conditions: 1) The following items shall be submitted:

JULY 1, 2014 Regular City Council Meeting Page 5 of 7 A. Site Plan (i) As this is an existing site, staff does not expect a full landscape plan, however, additional landscaping should be provided wherever possible, especially around the future freestanding signage or along the parking area to the south of the building. The opportunity for maintenance and enhancement of the Crystal Hills sign and the landscape lot along Crystal Hills Blvd may also be explored. B. CDOT Access Permit Application information and findings shall be submitted to the City related to the change of use of the building. C. Traffic Control and Parking Plan Per the submitted plan, utilization of a CDOT approved Traffic Control Company shall be utilized; such traffic control plan shall be submitted and agreed upon by City Staff prior to the opening of the facility. 2) Prior to issuance of the Business License, the Applicant shall submit: A. Key Cards A list of all partners and employees, with copies of the State-issued Key Cards for each. Once operating, copies of the Key Cards shall be submitted for any new person associated with the ownership or operation of the licensed facility before participating in the business. B. Site Inspection The Applicant shall contact the Planning Department to schedule a site inspection to confirm all site and facility requirements per the City code and this approval are installed and operational. 3) Any security bars shall be installed on the interior of windows and screened from public view. 4) The Applicant must comply with all State and Local licensing provisions as they relate to Medical Marijuana Centers and Recreational Marijuana establishments: A. To the extent the State has adopted or adopts in the future any additional or stricter law or regulation governing the sale, distribution or testing of retail marijuana or retail marijuana products, the additional or stricter regulation shall control the establishment or operation of any retail marijuana store or retail marijuana testing facility in the City. Compliance with any applicable state law or regulation shall be deemed an additional requirement for issuance or denial of any license under this Chapter, and noncompliance with any applicable state law or regulation shall be grounds for revocation or suspension of any license issued hereunder. B. Any licensee may be required to demonstrate, upon demand by the local licensing authority, the Manitou Springs Police Department, by law enforcement officers, or such other departments or individuals duly authorized by the City, that the source and quantity of any marijuana found upon the licensed premises are in full compliance with any applicable state law or regulation. C. If the State prohibits the sale or other distribution of marijuana through retail marijuana stores or the testing of marijuana through retail marijuana testing facilities, any license issued hereunder shall be deemed immediately revoked by operation of law, with no ground for appeal or other redress on behalf of the licensee. D. The issuance of any license pursuant to this Chapter shall not be deemed to create an exception, defense or immunity to any person about any potential criminal liability the person may have for the cultivation, possession, sale, distribution or use of marijuana. 5) A 6 log fence shall be built separating the Reserve1 and El Colorado Lodge while maintaining access to El Colorado Lodge. The fence shall incorporate the design features of the El Colorado Lodge. 6) A lane separator for the entrance and exit to include painting and striping shall be installed.

JULY 1, 2014 Regular City Council Meeting Page 6 of 7 7) The Applicant shall provide 26 parking spaces. City Council found the following findings to be true: A. That the value and qualities of the neighborhood surrounding the conditional use will not be substantially injured and the proposed use, under the conditions imposed, will not have a detrimental impact on the architectural and historical qualities and character of the community and is compatible in function and design with surrounding land uses. B. That the conditional use is consistent with the intent and purpose of the Zoning Code to promote public health, safety or general welfare of the community. C. That the conditional use is consistent with the Vision Plan of the City. Following approval, the City Council directed City Attorney Jeff Parker to draft a resolution to reduce to writing their decision. 2. Ordinance No. 1014 an Ordinance Amending Chapter 13.08 of the Manitou Springs Municipal Code to Add Spring Water to the City s Water Distribution System and Placing a Moratorium on the Distribution of Spring Water Pending Study Results 2nd reading Jeff Parker explained that Ordinance No. 1014 added spring water to the City s water system and suspended all but minimalist use of spring water, pending further action. Upon a motion by Councilman Hodges and a second by Councilman Mac Donald, Ordinance No. 1014 was unanimously approved at 2 nd reading as presented. Motion carried 6-0. None K. MAYOR S REPORT L. RECEIVE OR ACT ON COUNCIL CORRESPONDANCE Councilman Hodges asked if the bar cart that had been seen within the City was legal. General discussion regarding the legality of bar carts followed and Police Chief Ribeiro agreed to investigate the situation. Councilman Mac Donald discussed having a Worksession on cannabis clubs. Councilman Smith reported that the new El Paso County ballot box has been a success. M. CITY COUNCIL LIAISON REPORTS Councilman Hodges reported on the Mineral Springs Foundation Meeting, stating that the permit for the well drilling of Seven Minute Spring had been approved. Councilman Hodges further described the drilling process. Mayor Pro Tem Toll reported on the Regional Storm Water Task Force meeting, sharing that there is great regional interest in the topic. Mayor Pro Tem Toll stated that, according to the Regional Storm Water Task Force, the City s participation in the regional effort will result in the City receiving greater resources to deal with storm water issues. N. SIREN PROJECT PLAN UPDATE Chief Ribeiro presented that:

JULY 1, 2014 Regular City Council Meeting Page 7 of 7 - Phone lines have been installed and they passed a silent test. - A test of the system will occur on the 7 th of July, 2014. - Tests will be on the first Monday of the month at 12 p.m. - The 911 Authority Board approved three reverse 911 test activations. - The next goal is the implementation of the radio system to launch the sirens more easily. O. CITY ADMINISTRATOR REPORT Jason Wells reviewed the Economic Development Action Team (EDAT) meeting he recently attended; sharing that EDAT feels there is need for a comprehensive plan and a need for affordable housing. P. FUTURE AGENDAS July 8, 2014 Worksession July 15, 2014 Regular Meeting July 22, 2014 Worksession August 5, 2014 Regular Meeting August 12, 2014 Worksession August 19, 2014 Regular Meeting ADJOURN With no further business to conduct, Mayor Pro Tem Toll concluded the meeting at 9:50 p.m. MAYOR AND CITY COUNCIL CITY CLERK