CRIPPLE CREEK • Cripple Creek City Council rejected an ordinance on first reading hat would have legalized the sale of recreational marijuana and sent it to the voters.

Councilmembers Missy Trenary, Charles Solomone and Mark Green voted yes; Mayor Milford Ashworth voted no; and Mayor Pro Tem Tom Litherland abstained on the vote, taken during the Aug. 3 council meeting.

During public comment, Teller County Commission Chairman Dan Williams, Vice Chairman Erik Stone and Teller County Sheriff Jason Mikesell repeated the objections they raised at the board’s July 28 regular meeting.

Williams said the county commissioners have stood with the city of Cripple Creek on many issues, but they can’t do so on recreational marijuana.

“If you approve this ordinance, you will see short-term gains and long-term losses,” he said. “We’re working with the city to find alternative revenues — (gaming) devices aren’t coming back. We may need a constitutional amendment.”

No private citizens commented on the issue.

Before the vote, City Attorney Erin Smith gave a short history and explained the process for putting the ordinance on the ballot.

In early July, Cripple Creek Wins submitted a recreational marijuana ordinance to City Clerk Malissa Gish. She and her deputy approved the form of the petitions, and the organization began collecting signatures equal to at least 5% of the number of city electors who voted in the last election.

On July 25, petitions were turned over to the city clerk’s office. The signatures were reviewed and found to be sufficient later that week.

“State law requires an initiated ordinance to come before the city council in the exact form it was presented to citizens on the petition,” Smith said. “You can’t make any changes, and you must have an up or down vote on first or second reading. If you reject it tonight or on second reading, ballot language will be set, and it will go to the voters in November.”

She said the ordinance would do two things — allow recreational marijuana to be sold in Cripple Creek and impose a 5% excise tax on sales.

“The tax language doesn’t conform to TABOR (Colorado Taxpayer’s Bill of Rights) statutes,” Smith said. “There is a severability clause in the wording allowing the removal of anything found to be unconstitutional.”

Litherland said that even if the tax were legal, it wouldn’t be enough.

In other business, the council approved on first reading an ordinance extending a temporary moratorium on opening and operating short-term rentals, or STRs, within the city and declaring an emergency.

Special Projects Manager Jeff Mosher said the two-month extension would give a proposed ordinance to regulate STRs time to take effect if approved.

Council also approved the regulating ordinance on first reading, with additions and clarification, including:

• Confirming an STR cap of 35 units. There are currently 25 licensed and permitted STRs in the city and another 10 that are likely operating without licenses and permits, Mosher said. The cap would increase by one unit for every 20 new housing units developed within the city. A lottery would determine who gets a license when one becomes available. The cap wouldn’t apply to owner-occupied properties with only one STR.

• Defining an “STR business” as an operation with one unit. Additional units will each be required to have its own license.

• Council will set the license fee later if the ordinance passes on second reading. Mosher suggested $298 per license – equal to a two-night stay.

• A new STR license will not be issued until the unit is inspected and approved by city building and fire departments. License renewals will require inspections every two years.

• Hiring an outside hearing officer to handle appeals, license revocations and other problems. These issues could be decided in municipal court, but an outside officer would be faster, Mosher said.

Leslie Klusmire, from Sustainable Futures Pragmatic Solutions, was hired on an hourly basis through December to assist with grant writing.

“We’ll see how this year goes,” City Administrator Frank Salvato said. “Maybe we can find funds for next year in the 2023 budget.”

Council approved a service agreement with AquaWorks for the city’s water/wastewater line replacement and extension project.

“Some areas of the city can’t be developed until they can access water and wastewater,” Salvato said. “It’s going to cost $6 to $8 million. In a couple of months, we’ll know about grants and loans. Then we’ll bring designs to council.”

Also, Council rescinded the city’s open burning ban at the request of Fire Chief Joe O’Conor.

Downtown Cripple Creek is pictured in May 2022.

Norma Engelberg, Pikes Peak Courier