COUNCIL PROHIBITS MED-POT DISPENSARIES

In unanimous votes Monday night, the Lamar City Council passed two
city ordinances prohibiting the operation of medical marijuana
businesses and its cultivation as well as prohibiting certain uses
relating to marijuana, effective January 1, 2011.

"These two ordinances are very similar to others being passed in
communities around Colorado which have or are passing ordinances
prohibiting businesses related to dispensing medical marijuana within
their city limits," City Administrator Ron Stock said.

According to state law, individuals being treated for certain
debilitating medical conditions are allowed to grow up to six plants
for their own use and caregivers can supply marijuana for up to five
medically qualified individuals.

Lamar Police Chief Brian Phillips discussed with the Council the
penalties contained in the amended Title 6 Lamar Municipal Code.

"If an individual is found guilty of growing more than the allowable
six plants per person, fines up to $1,000 and imprisonment up to one
year can be imposed, per day, during which the offense was committed,"
Phillips said.

According to state law, individuals can legally possess one ounce or
less of processed marijuana, but a medical card is required for
possession of additional amounts.

In 2000, voters in Colorado approved possession and use of certain
quantities of marijuana for treatment of certain medical conditions.
In December 2009, the City of Lamar placed a 90-day moratorium on the
licensing, permitting and operation of medical marijuana businesses in
the City. In April 2010, while waiting for certain rulings from the
state legislature, the City of Lamar extended the moratorium until
December 31, 2010.

Council members were updated at 6 p.m., prior to the City Council
meeting, about the Lamar Redevelopment Authority. The city is
providing an appropriation of revenues and expenditures of $57,918 for
2011, which will be recorded in a separate city fund.

"Hearings will be held when it is time for the community to determine
the design and style that will ultimately be adopt for the Main Street
project," Stock said.

Shawna Hodge, Main Street Director, reported that the release of The
Colorado State Historical Society's contingency funds will help local
businesses to proceed with architectural planning.

"There will be a broad range of design possibilities to consider for
the 1920's storefronts on Lamar's Main Street. Some had upgrades in
the 1940's and some have 1960's treatments. All downtown buildings in
Lamar are historical because major changes were made more than 50 years ago."

In other business Monday night, the council turned down on a 3 to 4
vote, a repeal of the Vendor's Expense Allowance ordinance.

"I am concerned that this move now, when we are experiencing economic
downturn, might be considered unfriendly to smaller and beginning
businesses. Although repealing this ordinance would bring us current
with state repeals of the same, there are only eight businesses
affected. Incentive-wise, it might discourage start-up businesses,"
Mayor Roger Stagner

"It is time that we get this off the books if it is no longer relevant
and in keeping with what Colorado has done," Council Member Beverly
Haggard said.

The Council did approve unanimously the purchases of internet
upgrades, updates and software improvements through GovOffice which
will allow office heads to make timely changes on the internet. The
approved changes will allow for four banners, recreation, police,
light and power and payment of utility bills.

Council approved charges for change orders having to do with upgrades
and new equipment and programming for the new Water Treatment Plant
with AmWest Control, who designed all the control systems. These
control systems allow immediate notifications when problems arise.

According to Doug Montgomery, Water/Wastewater Director, "City
personnel are located at the plant less than 8 hours per day during
the week, so it is very important to have an extensive notification
system. These additional costs arose after discoveries were made on
the part of the city water department, and were not omissions made by
AmWest Control."

The Council also approved requests from Montgomery for additional
purchase of new "Radio-Read" water meters to replace outdated meters
as part of 2010 capitol improvement budget. The cost of these meters
still represents a $10,000 savings over the amount budgeted for 2010.