Cheyenne City Council Meeting - June 12, 2023

The Cheyenne City Council met on June 12, 2023, at 6:00 p.m. in Council Chambers. The meeting covered a range of routine and substantive items, including public hearings on a retail liquor license for the airport, two annexations, and the FY2024 budget, followed by multiple ordinance readings, resolutions, and a contract modification. Key decisions included approval of the FY2024 budget with amendments, revised water and sewer rates, a zoning change, and postponement of an ethics ordinance and an outside water user agreement.

Consent Calendar

• The consent agenda was approved unanimously, with President Johnson declaring a conflict of interest on items 28B (Blue Cross Blue Shield third-party administrator services) and 28C (Granular Insurance stop loss insurance), and not participating in those votes.
• Items approved included: minutes from May 22, 2023; resolution approving the Cheyenne Downtown Development Authority FY2024 budget; resolutions authorizing amendments to a drinking water state revolving loan, discharging uncollectible debts ($79,185.43), and permitting open containers in the Downtown Development District on seven specified 2023 dates; various leases, contracts, and agreements (e.g., pipeline easement, landfill leachate system design, LEADS economic development agreement, 7th Street drainage project, Childs Draw South Tributary enhancements, cooperative agreement for US 30/Dell Range/Whitney Road, animal shelter services, animal control services, legal representation, Reed Avenue Rail Corridor design, BNSF quiet zone project, School Resource Officers program, recycling services extension, insurance renewals, janitorial services modifications, and multiple bids for crack sealing, paint striper, trucks, copiers, bunker gear, emergency medical vehicle, wetlands dredging, and HVAC maintenance).

Public Comments & Testimony

• Seth Lloyd (Planning & Development): Provided staff overviews for annexation public hearings (6B and 6C) and later spoke as a representative of the Cheyenne Public Employees Association (CPEA) regarding the ethics ordinance, expressing concerns about the original language and noting the association had not yet reviewed the proposed substitute.
• Tim Bradshaw (Director of Aviation, Cheyenne Regional Airport): Presented the airport's application for a retail liquor license for the old terminal (Cloud Nine Restaurant & Bar). He explained the license would be used to attract a community partner to redevelop the 1961 terminal, noting it is still used for charter flights (e.g., University of Wyoming football, gambling charters) and diversions from Denver. He stated the airport has 70 tenants and relies on non-aeronautical revenue. The license is exempt from the city's quota. He also referenced an Attorney General opinion allowing the license to be leased.
• Matt Kaufman (Ironhorse Development Group): Requested a two-week postponement of the outside water user agreement for Ironhorse 3rd Filing to work with consultants on an assessment to offset the city's lost tax revenue, as identified in a University of Wyoming study ($620 per person). He argued the development would provide infill density and water use is minimal compared to commercial uses.

Discussion Items

• Retail Liquor License for Airport (Item 6A): Council members raised questions about the terminal's active status, the threshold for commercial traffic, and the legality under new state law (effective July 1, 2023). Councilman Seagrave and City Clerk Chris Jones discussed that the license likely cannot be issued until after July 1 under the new law. Councilman Cook asked about the definition of active terminal; Bradshaw confirmed the last flight was a Wyoming football charter in December 2021. Councilwoman Aldridge expressed concern that airports have an unfair advantage over local businesses unable to obtain a full retail license. Councilman Labourne questioned the financial viability of the terminal renovation, noting the airport board has limited funds. Bradshaw responded that the license is one part of a multi-faceted funding strategy. The item was referred to the Finance Committee.
• FY2024 Budget (Item 7): Two amendments were introduced and passed. The first (moved by Councilman Seagrave) decreased the miscellaneous department transfer to reserves by $5,000 and increased the city council professional development line item by the same amount. The second (moved by President Johnson) decreased the miscellaneous department transfer to reserves by $75,618 and increased payroll expenditure line items in the Community Recreation and Events Department (Botanic Gardens) by the same amount, with a corresponding decrease in the Specific Option Sales Tax Fund botanic gardens operations and maintenance account. The budget, totaling $66 million, was approved on third reading as amended (roll call: 8-0, with all present voting yes).
• Water & Sewer Rates (Item 8): BPU staff explained the increase is driven by a 20% rise in utility costs and a 37% increase in chemical costs over the past year. Dr. Rennie noted the need to replace 140 miles of clay pipe and 500–600 lead service lines. The ordinance was approved unanimously.
• Zoning Change – Eastridge (Item 9): A change from MR (Medium-Density Residential) to MUB (Mixed-Use Business Emphasis) for a small lot near the roundabout to allow an office. Approved 8-1 (Councilman Johnson voted no).
• Major Street Plan Official Map Update (Item 10): Updated with Connect 2045 and other recent amendments. Councilman Seagrave noted multiple public meetings were held. Approved unanimously.
• Liquor Code Amendment (Item 11): Second reading of an ordinance amending Section 5.12.030 to define adult entertainment as required by state law. A substitute dated May 26, 2023, was approved (Councilman Johnson voted no), and the amended ordinance was approved on second reading (Johnson voted no).
• Ethics Ordinance (Item 12): Second reading of a new chapter on ethical obligations. Councilman Cook moved to approve on second reading (the committee had no recommendation after a failed vote). Councilwoman Aldridge moved to postpone for two weeks to allow review of a proposed substitute and input from city employees and the public. The postponement was approved (Dr. Rennie voted no).
• Outside User Agreement – Ironhorse (Item 23): The resolution would approve water services for a development southeast of West Riding Club Road and Hynds Boulevard. Councilman Cook moved to adopt, but then moved to postpone to June 26, 2023, at the developer's request. Councilman Seagrave expressed concern that the city lacks adequate water and questioned the long-term commitment. Councilman Johnson asked why the property is not being annexed. Matt Kaufman responded that annexation is not currently statutorily possible and that the development is close-in rural infill. The postponement was approved (Councilmen Johnson and Seagrave voted no).
• Microbrewery License Extension – Westby Edge LLC (Item 30A): Request to extend the time to become operational for the microbrewery license (bar and grill already operating). Councilman White clarified the motion was only for the microbrewery license. Discussion about open container rules: microbrewery licenses do not permit open containers; the DDA website has clarification. The extension was approved unanimously.

Key Outcomes

• Consent agenda approved (conflict noted for 28B and 28C).
• Public hearing on airport liquor license closed; item referred to Finance Committee.
• Public hearings on two annexations (Thomas & Ridge, Rawlins St) closed; both referred to Public Services Committee.
• Public hearing on FY2024 budget closed.
• FY2024 budget approved on third reading as amended (8-0).
• Water and sewer rate ordinance approved on third reading (unanimous).
• Zoning change from MR to MUB for Eastridge lot approved (8-1).
• Major Street Plan Official Map update approved (unanimous).
• Liquor code amendment (Section 5.12.030) approved on second reading (amended by substitute; 8-1, Johnson no).
• Ethics ordinance postponed for two weeks (7-1, Rennie no).
• Thirteen first-reading ordinances (Items 13–21) referred to Public Services Committee.
• Outside user agreement for Ironhorse postponed to June 26, 2023 (7-2, Johnson and Seagrave no).
• Microbrewery license extension for Westby Edge LLC approved (unanimous).
• Voucher report accepted.
• Announcements made: Public hearings on June 26, 2023, for the amended consolidated plan and a bar and grill liquor license; committee meetings rescheduled due to Juneteenth (Finance June 20, Public Services June 21).
• Councilman Johnson requested increased police presence at large events at the Depot, citing the Saliva concert with 4,500 attendees.
• Councilman Labourne reported on the Wyoming Municipal League convention in Cody, praising the mayor's leadership.
• Councilwoman Aldridge thanked budget staff and noted the smooth process.
• Meeting adjourned after executive session to discuss a land purchase.