LAKE CITY — The Lake City Board of Trustees rejected a Planning and Zoning Commission recommendation to require a six-foot fence at an OHV rental business, directed staff to rewrite the underlying zoning code, and postponed a 30-year right-of-way lease after the lessee’s attorney submitted last-minute changes during its June 3 workshop and regular meeting.
The fence dispute centered on Alpine Loop Outpost at 131 North Gunnison Avenue, where operator Doug Franz had planted a hedge rather than build a required fence after receiving a conditional use permit in 2025. When the hedge failed to grow sufficiently, the Planning and Zoning Commission recommended enforcing the original six-foot requirement. Trustees rejected that recommendation, with the action item dying for lack of a motion at the regular meeting. Trustee Diane Bruce said the 1988 zoning regulations predate OHV rental businesses entirely. “That is now somebody’s product. That’s what they do,” Bruce said, comparing rental equipment to car lots that display inventory in the open. Town Manager Alexander Mulhall noted that enforcing the fence requirement would also require Lake City Auto to install fencing — an obligation that could only be imposed through that business’s lease because the company operates on the 8th Street right-of-way, where zoning regulations do not apply. Trustee Landon Whinnery said requiring a six-foot fence here was inconsistent with the town’s past refusals to allow fences in the Historic District. Town Attorney Dan Krob said the code already allows rental equipment to be treated as “items displayed for sale,” which are exempt from screening requirements, and that nuisance abatement authority remains available if junk accumulates. The board directed staff to draft an ordinance clarifying that rental equipment does not require screening.
The board postponed a 30-year lease for the 8th Street right-of-way with Lake City Auto after the lessee’s attorney submitted same-day redline edits that trustees said went too far. The proposed changes would require the town to give the lessee 120 days to propose alternative sites if it needs the property for public purposes, plus 60 days for a public hearing, plus 12 months before termination — extending any exit process by roughly 18 months. The redlines also sought a two-thirds supermajority vote to terminate the lease. Krob said a supermajority is rarely used under Colorado statute and is generally reserved for executive sessions and emergencies. Trustee Henry Woods said he opposed all of the Article 8 additions. Mulhall said the changes would create significant administrative burden when the town owns the property outright. Mayor Dave Roberts said he was comfortable with the lease before seeing the afternoon changes but would not approve something he did not understand. “The times in my life that I’ve regretted is when I rushed into something, feeling like it was almost announced an emergency,” Roberts said. “I want to get this done, but this is a very late change late in the game.” Krob said he expected to reach agreement with more time. The board voted unanimously to postpone the item to the June 17 meeting.
Auditor David Greene presented the town’s 2025 financial audit, showing total net position increased by $1.3 million to reach $11.45 million. The town held $7.3 million in current assets, including $3.4 million in cash and equivalents and $3.3 million in loan proceeds receivable from the Colorado Water Resources and Power Development Authority for wastewater treatment plant upgrades. Water and sewer operations generated $1.04 million in charges for service against $766,000 in expenses, leaving the fund in surplus. The general fund increased by $210,000. Greene said the audit produced an unmodified opinion and the town is in compliance with its loan covenants. “It definitely didn’t bring up any cause for alarm,” Greene said when asked how Lake City compares to other towns. “It looks like that you guys are doing what you need to be and where you probably should be.”
Trustees expressed broad support for placing a November ballot question asking voters whether to reduce the Board of Trustees from six seats to four. Mayor Roberts said residents have approached him in favor of the change. Bruce, who previously opposed reduction, said she now supports it, reasoning that fewer seats might generate more competitive races. Whinnery raised a quorum concern — a four-member board requires three members to conduct business, and the current board has at times struggled to meet that threshold. Staff will draft an ordinance for the next meeting. Trustees also discussed aligning municipal elections with the November county cycle, which Mulhall said would reduce election costs from roughly $12,000 to $3,000. The board directed the attorney to research whether the town’s statutory status permits odd-year coordinated elections; a notice deadline to Hinsdale County falls around mid-July.
Jodi Lindsey was sworn in as trustee at the start of the regular meeting. The board approved bills payable totaling $192,282.38 — higher than usual because it included final payment for new playground equipment, which was fully funded by community donations. The board also approved a request from Hinsdale County Search and Rescue to reserve parking on Silver Street and 3rd Street on September 16 for the Colorado Grand Annual Classic Car Charity Tour. Trustee committee appointments were formally adopted through Resolution 2026-05, approved unanimously. Resolution 2026-06 adopting the updated employee handbook — which clarified floating holiday accrual dates and capped sick hour donations at a minimum balance of 48 hours — also passed unanimously.
The board voted 5-1 to approve the Wildfire Resiliency Code on second reading, a state mandate required for grant eligibility. Whinnery voted no. Roberts said he personally opposed mandates from the state but recognized the financial consequences of non-compliance. The board unanimously approved an RFP to hire a consultant to implement Phase 1 of the Hinsdale County/Lake City Comprehensive Housing Plan, with contractor selection expected by mid-August. Outpost Outdoor Hospitality LLC received approval for a tent camping permit at 111 Lake Street, expanded from the Planning and Zoning recommendation to include five additional primitive sites for Colorado Trail hikers already arriving in town. The ADU ordinance public hearing was rescheduled to July 1 to meet the required 15-day zoning notice period. Parks and Recreation Director Ben Hake raised the possibility of pickleball courts at Memorial Park, where grant funds and community donations could offset costs estimated at up to $130,000 per court; staff will research design and cost options.
Town staff is removing the deteriorating boardwalk section south of the Masonic Lodge, which rocks when walked on and poses a safety hazard. The section in front of the lodge itself is cupped but stable and will be assessed separately. Mulhall also reported the town sent 32 code enforcement letters to short-term rental operators and is at 100 percent compliance among properties actively advertising rentals. A community cleanup weekend is planned, with a 30-yard roll-off dumpster available at the lot next to the medical center and staff available to help residents haul heavy items.
A request from Josh Votruba to use Silver Street parking spaces for five consecutive Monday evening music events beginning August 17 drew broad support but no action; the board said it typically defers a first-consideration item to a subsequent meeting for formal action.
The town’s Colorado 150/250 celebration, set for August 1, is taking shape with confirmed participation from the Lake Fork Valley Conservancy, Pioneer Jubilee Women’s Club, and a local organization called Dirt, which will operate a beer garden. The board settled on burgers and brats as the town-provided main course, with a community potluck for side dishes. Planned activities include a cornhole tournament, tug of war without a mud pit, and a dizzy bat race for sober participants. The board also directed Mulhall to include a $300 donation to the Ute Sky Drum Group in the next bills payable, redirected from savings in the Board of Trustees training budget.
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