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HomeMy WebLinkAbout2003-09-10 ACE MINUTES• • ALLIANCE F OR C OMMER CE IN ENGLEWOOD September 10, 2003 I. CALL TO ORDER The regular meeting of the Alliance for Commerce in Englewood (ACE) was called to order at 11 :35 a.m. in the City Council Conference Room of the Englewood Civic Center. Chairman Nick Panetta presided. Members present: Members absent: Liaisons present: Staff present: Cook, Guinther, Rees, Schalk, Ashenfelter (late), Panetta McDermott, Vasilas Yurchick (City Council), Ackley (Chamber of Commerce) Business Development Specialist Hollingsworth Senior Manager Dannemiller Senior Planner Graham Administrative Services/Financial Director Gryglewicz II. APPROVAL OF MINUTES August 14, 2003 Chairman Panetta called for consideration of the August 14, 2003 Minutes . Cook moved: Rees seconded: The Minutes of August 14, 2003 be approved as written. The motion canied. III. NEW BUSINESS A. ACE: Role, Responsibilities. and Accomplishments Chairman Panetta stated that it was determined at the last meeting to bring new members up-to- date on the role , responsibilities , and accomplishments of ACE, and that Vice Chair Rees had volunteered to undertake this task. Mr. Rees distributed a packet of information citing the purpose of ACE, issues that have been addressed over the last two years, and accomplishments of ACE. Also distributed were copies of a 2002 Business Survey Report of Results, a Synthesis of Meeting Notes from the Business Fo- rums hosted by ACE, and a copy of the "Mission Statement" adopted by ACE at its inception. Mr. Rees stated that he also has copies of all the meeting Minutes from the first meeting to date if new members are interested in receiving them. Ms. Ashenfelter entered the meeting and took a chair with members of ACE. • Mr. Rees quickly reviewed some of the accomplishments of ACE, including: H:I G RO UP\BOARDSIACEIM inutes\200319 -10-2003 .doc 1 • • • ~ Temporary reduction of the Admissions Tax ~ The Business Survey ~ Hosted the Business Forums ~ Engaged in discussions with the Building Di vision and Safety Services Department on dissatisfaction with customer services provided by the Building Division . ~ ACE also addressed Transportation Issues, ~ Participated in review of the General Plan , ~ Ace has worked to improve communication between City personnel and the business community ~ ACE has worked to make sure the business community knows that ACE exists ~ ACE will endeavor to serve as liaison between City government and the business com- munity. Mr. Hollingsworth noted that the "Permitting Process" is a discussion item on the agenda, and addresses proposed improvements of customer service and issuance of permits . Mr. Cook stated that he saw nothing in the packet information indicating any difference in turn- around time depending on project size. Small projects should not require the same review and approval time that large projects require. Mr. Panetta stated that time differential dependent on project size was discussed, but he didn't know whether ACE comments had any impact on the time frames . He stated that he would like to think that ACE had some impact and input on bring- ing the permitting process forward . Mr. Rees stated that other issues considered by ACE include requirement of registration of all businesses with the City (ACE did not support this proposal); the increase of Land Development Fees (supported by ACE), and proposed hosting of Broker/Lender forums (no date set at this time). The proposed Occupational Privilege Tax (OPT), which ACE has not supp011ed, has also been before Ace for comment and input. Mr. Cook asked if a summary of issues that are still open or have not been addressed was pre- pared. Mr. Rees referenced the list of accomplishments, noting that the broker/lender forums have not been accomplished. Mr. Panetta urged members of the Commission to suggest items for inclusion on the monthly Agenda. He commented that in the past ACE has "reacted" to issues, and suggested that ACE needs to become more "proactive", take the lead and raise issues for consideration. He com- mented that members of the business community should be considered as "residents" of Engle- wood, also, and the divisive attitude of "resident" versus "business owner" needs to be elimi- nated. B . Permitting Process . Senior Planner Dannemiller led the discussion on the proposed Permit Tracking System. Over the past three years, the City has improved the automated information program for the city , and has upgraded the Human Resources, Purchasing, and Finance facets of the City government. An improved Court Management system, Utility billing system, and Library system is in process of H:\G RO U P\BOARDS \AC E\Minute s\2003\9-l 0-2 00 3 .doc 2 • • • being implemented, and the next phase of technological upgrade is a "permit tracking" system, whereby a permit application tracking process will be centralized -not spread among several departments as is the current status. An updated centralized Permit Tracking System would sup- port the following phases of permitting: > Permit Processing > Development Review > Inspections > Code Enforcement > Billing and Fee Collections > Licensing for Contractors > Address Management and Tracking > GIS > Staff scheduling, work flow, document management > Public Notices > Reporting Ms. Dannemiller stated that a Request for Proposals (RFP) is being prepared at the current time; vendor demonstrations will be scheduled, hopefully in October, and selection of the vendor and development of a contract will be accomplished by the end of 2003 . Implementation of the im- proved system is proposed in early 2004. Ms. Dannemiller stated that one goal of the consoli- dated permit tracking system is to eventually allow permit applications to be made on-line, and allow contractors or home owners to check approval progress of the permit on-line rather than having to call or visit City Hall. This will result in a more user-friendly, improved permit proc- ess . Ms. Dannemiller discussed a site visit to Boulder to view the permit tracking system in place there. She stated that it is most interesting to see all that can be accomplished with the sys- tem ; Boulder has three people who work full-time on their system. Ms . Dannemiller described the process to select a software vendor for the permit tracking pro- gram. Two to three vendors will be selected and asked to present demonstrations of the soft- ware . Funding for the system is anticipated at $40 ,000 . Mr. Cook noted that many people hesitate to apply for permits for fear the taxes on their property will increase, and do work without permit. Ms. Dannerniller pointed out that if someone is dis- covered making property improvements without benefit of permit, they are fined, and the fine can be more expensive than the initial cost of a permit. Mr. Schalk asked if the system for the permit tracking system will be integrated with the system chosen to upgrade the Human Resources and Financial programs. Ms. Dannemiller stated that Oracle software has been chosen to provide the upgrades for HR, Purchasing, Revenue, and Cash Receipting; she was not aware that Oracle has a software program for permit tracking. Mr. Cook stated that Oracle does have a software program written to track permits. Mr. Schalk asked if the automated improvements provide a means to reduce City Staff. Ms. Dannemiller stated that she cannot speak to staffing reduction; however, the permit tracking sys- tem will be a more efficient means to track permits. Ms. Dannemiller stated that Boulder did not H:\G RO UP\BOARDS\ACE \Mi nutes\2003 \9-10-2003 .doc 3 • • • indicate a reduction of staff, but a tum-over of staff and hiring of staff members that were ex- perienced in the technological field. Mr. Panetta questioned if it would be possible to develop a "service level" agreement or expecta- tion in regard the Permit Tracking proposal -for instance, that a permit would have an approval time of 48 or 72 hours. Ms. Dannemiller suggested that imposition of an approval time will be a "policy" statement versus a technical function of the software; she agreed that such an approval time statement could be included in a policy statement. Mr. Panetta expressed his opinion that a reasonable approval time should be included. This would also make the permit tracking system more "user friendly". He noted that some comments ACE heard in the business forums indicated that permit applications were "lost", and "no one wanted to accept responsibility." Ms . Ashenfelter asked about improvements that Boulder has experienced since the inception of the permit tracking system there. Ms. Dannemiller stated that Boulder has "one-stop shopping" for those seeking permits, and the system has improved the efficiency of the approval process. Mr. Schalk asked if past information regarding an address would be input in the program, and what the cost estimate is. Ms. Dannemiller reiterated that cost projections are in the neighbor- hood of $40,000 for the software program. Mr. Yurchick asked if all the information on a permit application would be public information. Ms. Dannemiller st ated that it is public information now, and would continue to be. She noted public information on any property address that is now accessible on the internet by any inter- ested party -Assessor's records indicating property size, assessed value , taxes due, zoning, etc. Ms . Dannemiller stated that the current approval process has been "mapped'', and made available to all prospective vendors. Mr. Yurchick asked that Ms . Dannemiller report back to ACE following meetings with the ven- dors , and provide follow-up to Mr. Schalk's comments -what wiH the City get for their invest- ment. Ms. Dannemiller stated she would do so. IV. OLD BUSINESS A. South Broadwav Plan 2003 Senior Planner Graham led discussion on the South Broadway Plan 2003, pointing out that the final draft of the proposed Plan addresses means to improve the South Broadway corridor, and calls for creation of four (4) "nodes" of commercial concentration along the corridor. These "nodes" would provide greater depth of commercial zoning, and encourage location of tenants needing larger areas than typically found along the Broadway corridor. Residential use is also encouraged along the corridor. Four "districts" are identified along South Broadway, including "Gateway", "Downtown", "Cherrelyn" and "Brookridge"; these same districts were identified in the 1997 Broadway Plan. Mr. Graham discussed under-utilized uses along the Broadway corridor, which uses include but are not limited to auto sales Jots, service-oriented businesses , and professional businesses. These H:\GROU P\BOARDS\ACE\Minutes\2003\9-10-2003 .doc 4 • • • types of businesses either do not generate any sales tax revenue, or very limited revenue, and the properties could be redeveloped and improved to attract uses that will improve generation of tax revenues . Mr. Graham then discussed the imposition of a six month moratorium on new auto sales lots, or land area expansion of existing auto sales lots . He stated that a "focus group" of staff and at least three auto dealers will begin meeting to address the mutual concerns of the auto sales dealers and the City. Mr. Graham stated that one of the goals of the Plan is to encourage a concentration of auto sales lots and related businesses in the "Cherrelyn District", which district currently has a heavy concentration of this type of use. Mr. Graham pointed out that sales tax collected when a vehicle is purchased goes to the jurisdiction where the vehicle will be licensed -not the to jurisdiction of sale. He stated that the State of Colorado is considering a new tax law which would split the sales tax revenue on vehicle sales 50/50 between the point of sale and the point of destination. Mr. Schalk asked if the City has a course of action in mind. Mr. Graham stated that the City will propose removing auto sales lots and auto-related uses from the "use-by-right" category in the commercial district, and making them a Conditional Use. This would require Planning Commis- sion consideration and approval before an auto sales lot could open for business. Mr. Graham stated that auto sales lots and auto-related uses do not create any synerg y with other retail uses. Mr. Schalk asked when the new Plan will be in place. Mr. Graham stated that the Planning Commission has a public hearing scheduled on September 23 , and City Council would have to approve it after that. Mr. Yurchick stated that he cannot support selective action against one type of business -if the focus is inclusive of all "under utilized" properties it would be one thing , but the focus has been directed to auto sales dealers and auto-related businesses . These are typic a lly small businesses and are struggling to survive . Mr. Schalk pointed out that every time an existing business closes, another car sales lot goes in - Englewood is a "used car lot" -is this what ACE and the City Council want ? How can there be "x" number of car lots all over town, and how can they survive? Some transition to different business categories needs to happen. He pointed out that people who come to the Gothic Theatre aren 't going to buy cars just because a car lot might be next door. Mr. Graham stated that staff would like to explore a program used in some of the eastern com- munities (Philadelphia , for example), wherein improvements on a s ite lowers the tax rate. If a property is under-used, or unimproved , the owner pays a higher rate of tax than do those property owners whose property is improved . Mr. Graham stated that a lot of study will be necessitated before such a proposition is proposed , citing uses such as King Sooper 's that needs a large area of parking for their customers. Mr. Yurchick stated that there are other incentives that can be offered rather than creating a tiered taxing system, and that other incentives should be explored. In response to inquiries regarding Day Labor establishments, tattoo parlors, and pawn shops, Mr. Graham responded that day labor establishments were not a listed permitted use in the commer- cial district , and therefore action was taken to force their relocation to an industrial district. Tat- H :\G RO U P\BO ARD S\A CE\M inutes\2 003 \9 -10 -2 00 3.doc 5 • • • too parlors in the B-2 (not allowed in B-1 District) and pawn shops are governed by distance re- strictions written into the ordinance. Mr. Yurchick stated that one of the auto dealers appearing before City Council commented on the results in Lakewood along West Colfax Avenue when efforts were made to control the pro- liferation of vehicle dealerships -vacant lots appeared all along the street. He asked if staff had or could verify this information. Mr. Schalk commented that the moratorium and proposed amendment to the zoning code may harm some of the smaller businesses that feed off auto sales lots, and some of the small auto sales lots themselves. Mr. Cook stated that if the auto dealers relocate, and if incentives are in place, there won't be a proliferation of vacant lots along the corridor. Mr. Yurchick reiterated his opposition to focusing on a specific business category for selective action by the City. Mr. Rees commented that if like businesses are concentrated in an area, they "feed off' one an- other, and cited the concentration of manufac turing and industrial uses in the southern part of the City along Santa Fe Lane. Mr. Rees also pointed out that there are some car lots along the Broadway corridor that need to be "cleaned up ", while others are very attractive. He suggested there is a better way to address this issue than the moratorium. Mr. Panetta asked Mr. Graham what action he was seeking from ACE. Mr. Graham suggested that if there is a consensus of the ACE membership that the Broadway Plan 2003 provides a guide for improvement of the Broadway corridor, a means to improve the tax revenue for the City , and encourages a diversification of use he would prepare a resolution to bring back to the Commission at the October meeting. If the resolution is approved, it would be forwarded to the Planning Commission and City Council in support of the Broadw ay Plan 2003. Ms. Ashenfelter stated that the Broadway Pl an 2003 encourages a n increase of retail establish- ments. Ms. Guinther stated that the Plan shows creativity when identifying the various districts. She stated that the City doesn 't need to take "pot shots" at any particular business. Mr. Panetta supported development of a list of under-utilized properties -and not focus on one particular business category. Mr. Panetta stated he is a firm believer in the free enterprise sys- tem , and if a business once had the right to locate in a particular location, they should not be tar- geted now. He stated he cannot support a police state. He stated that the Broadway Plan 2003 is a good conceptual guideline, presenting possibilities to increase retail use , up-grading the corri- dor, and the creation of district "nodes" to encourage larger developments. Implementation of the Plan following approval was briefly discussed . Mr. Rees asked the boundaries of the "Cherrelyn" district. Mr. Graham stated that this district extends from Kenyon A venue on the north to Chenango A venue on the south. Mr. Rees asked how much retail use can be supported in Englewood. Mr. Graham stated that 100 % retail devel- opment along the Broadway corridor isn't possible . H :\G R 0 U P\BOARDS\ACE\Minutes\2003\9-l 0-2003 .doc 6 • • • Mr. Graham stated that he will prepare a resolution supporting the Broadway Plan 2003 for the October meeting. B. Occupational Privilege Tax: Mr. Gryglewicz, director of Administrative and Financial Services, addressed the Commission regarding the proposed Occupational Privilege Tax (OPT). City Council decided, on August 18, to place this issue on the November ballot. Also on the ballot is a one mil property tax increase. The OPT, or "Head Tax" as it is now being referenced, is $2.00/month/employee payable by both the employee and the employer. Mr. Gryglewicz discussed the exemptions that City Coun- cil has considered. These exemptions include: ~ Employees must earn at least $750 per month before required to pay the tax . ~ All non-profit uses (religious, government, philanthropic) will be exempt. ~ Employees working for more than one Englewood employer will pay on only one job. Mr. Gryglewicz stated that forms have been drafted . Businesses with less than 10 employees would be required to file on a quarterly bas is; those with 10 employees or more would file on a monthly basis. He stated that the Finance Department will have to hire one f ull-time clerical person to handle the book work for this tax. Mr. Gryglewicz stated that Finance Department will work closely with Community Development to develop the list of all businesses in Englewood, and with the Information Technology Department to develop a program to track payments. Mr. Gryglewicz stated that City Council would like ACE feedback on issues such as exemptions . Mr. Cook noted that a $100,000 fee to administer the OPT has been floated around; how firm is this figure? Mr. Gryglewicz stated that expenses to se t up the program will be higher the first year than subsequent years, and the $100,000 figure was an estimate for first-year expenses. Mr. Yurchick asked whether employees who may work in the City for a short time -such as Highway Department employees -will be subject to the head tax. What about those who work for an employer that is headquartered in another part of the State, or out of State ? Mr. Grygle- wicz stated that anyone earning in excess of $750 per month is liable for the Head Tax. Mr. Schalk asked why non-profit organizations -churches , educational , charitable, governmental -should be exempt. These establishments use the same services th at other businesses and or- ganizations do; do they receive discounts or exemptions from Wal-Mart? Why should they re- ceive an exemption from payment of the Head Tax ? He stated th at in his opinion, all non-profit organizations should be required to pay the Head Tax . Mr. Panetta stated that the rationale ad- vanced by Mr. Schalk makes sense -these organizations do use the same services that other businesses use. Mr. Rees asked for a definition of "employee ". Mr. Panetta asked if there were further comments on the OPT. Ms. Guinther reminded the Commission that a sunset clause was to be included as part of the ballot issue. She also asked if home-based businesses would be included as payees of taxes under the OPT . H:\G ROUP\BOARDS \A CE\Minutes\2003\9-10-2003 .doc 7 • • •• IV . ACTION ITEMS Action Items generated in this meeting include : >-Report to ACE on Permit Tracking System after vendor software demonstrations, and on what the City can expect from Permit Tracking System for the investment made. >-Resolution on the South Broadway Plan 2003 for October 9 meeting of ACE. >-Follow-up on issue of car dealerships in Lakewood along Colfax A venue. >-Review the Ordinance for enabling the OPT if the issue is approved by voters in Novem- ber. V. AGENDA ITEMS Chair Panetta again asked members to submit any issues they want to consider at an up-coming meeting to him , or to Darren Hollingsworth for inclusion on the agenda. The meeting adjourned at 1 :05 p.m. Gertrude G. Welty , Recording Secretar H:\GROU P\BOARDS\ACE\Minutes\2003\9-10-2003 .doc 8