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TC Minutes 06-14-2022AVON REGULAR MEETING MINUTES AvonTUESDAY1UNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO 1. CALL TO ORDER AND ROLL CALL Video Start Time: 00:15:20 Part One The meeting was hosted in a Hybrid format, in person at Avon Town Hall and using Zoom.us. Mayor Smith Hymes called the Council regular meeting to order at 5:16 p.m. A roll call was taken, and Council members present in person were Lindsay Hardy, Chico Thuon, Tamra Underwood, Scott Prince, RJ Andrade, and Amy Phillips. Also present in person were Chief of Police Greg Daly, Judge Buck Allen, Town Attorney Karl Hanlon, General Government Manager Ineke de Jong, Town Prosecutor Elizabeth Pierce -Durance, Planner 1+ Max Morgan, Senior PlannerJena Skinner, Town Manager Eric Heil, and General Government Intern Emily Myler. 2. APPROVAL OF AGENDA Video Start Time: 00:15:43 Part One No changes were made to the agenda. Councilor Andrade moved to approve the agenda as presented. Mayor Pro Tern Phillips seconded the motion and the motion passed with a vote of 7 to 0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:16:03 Part One Councilor Thuon disclosed he works for a company that is in the short-term rental industry. Councilor Underwood disclosed that she holds a short-term rental license, relevant to items 5.2 and 5.3. as she has disclosed before. With respect to item 5.4, she disclosed that she is on the Board of Directors of Eaglebend-Dowd Affordable Housing Corporation. Neither are conflicts of interest, only disclosures. 4. PUBLIC COMMENT Video Start Time: 00:18:31 Part One A Proclamation Honoring Judge Cyrus G. "Buck" Allen III for His Years of Service Mayor Smith Hymes read the proclamation commending Judge Allen for 40 years of service to the Town of Avon and declaring June 15 "Judge Cyrus G "Buck" Allen III Day". Judge Allen spoke and thanked the Council for the proclamation. He said he grew up learning to work hard, stay optimistic and help people when he can from his parents, who were raised during the Great Depression. He enjoys working in Avon and appreciates the opportunity to do so. Mayor Smith Hymes explained how to participate via video/audio, via telephone, or via email, and that this public comment section is intended for items not listed in the agenda and is limited to 3 minutes. Avon resident Josh Hall commented. He said his home in Beaver Bench was destroyed by the mud slides on July 22, 2021, and hopes preventing future disasters will be on an upcoming Council agenda. He thanked the Council for addressing this issue. He requested that Town Staff look at a ravine created by the rain near his home to prevent it from causing further damage. Councilor Underwood asked for an update on arrival of the Vactor truck. Town Manager Heil said it is slated to arrive in the late summer or early fall. Mayor Pro Tern Phillips asked if the Town had been able to borrow one, to which Town Manager Heil said no. AVON REGULAR MEETING MINUTES AvonTUESDAYJUNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO State Congressional Candidate Meghan Lukens commented. She said she is running for the Colorado House of Representatives in District 26. She is a Steamboat Springs local and a social studies teacher at Steamboat Springs High School. She believes in communication, collaboration and is running on a platform of economy, environment and education. Eagle resident Taylor Joseph Gardarian commented. He said he was asked at the last council meeting to email Town Staff for the opportunity to put an item on the Council agenda, but received no replies. He said he would like to talk about the essence, persons and attributes of public oath declaration. He has found that these things can have a large type of existence. There shouldn't be any separation between people who don't want citizens to declare constitutional oaths and people who do. No virtual comments were made. 5. BUSINESS ITEMS 5.1. POLICE PRESENTATION: SWEARING IN OR OFFICER T. RENO, ANNUAL REPORT PRESENTATION AND AWARDS PRESENTATION (CHIEF OF POLICE GREG DALY) Video Start Time: 00:32:43 Part One Mayor Smith Hymes introduced Officer Theresa Reno and asked everyone to stand. The oath of office was administered by Municipal Judge Allen and Officer Reno's son Patrick pinned the badge on her uniform. Chief of Police Daly presented certificates to awardees who have "made exceptional and valiant individual and team contributions above and beyond their normal duties with the Avon Police Department or have benefitted the Avon Police Department and the Town of Avon." He then presented an annual overview of activity at the APD including what went well, areas to improve, and department goals and vision. Mayor Smith Hymes asked if Chief Daly thought the crime statistics were comparable to other communities per capital considering how many tourists Avon has. Chief Daly responded that the numbers are based on the most recent census data, but there are differences in Avon as opposed to a city like Fort Collins where there are fewer visitors. Mayor Smith Hymes asked how the APD decides who are the best candidates to hire. Chief Daly said they are looking for people driven by service. Police work is dangerous and not the most highly paid; most officers don't join to seek action but desire to serve the community. Most hires have been locals, it is hard to find outsiders and they don't often work out because of living expenses here. It's currently the toughest hiring environment he's ever seen, but it makes a huge difference to get the right people that match the culture and stand up to expectations. 5.2. FIRST READING: ORDINANCE 22-08 SHORT TERM RENTAL LICENSING (PLANNER 1+ MAX MORGAN) Video Start Time: 00:00:01 Part Two Planner 1+ Morgan presented. He read the mission statement for the Short -Term Rental ("STR") program, showed Council reduced licensing fees, provided more data on STIR licenses and trends in Avon and presented two options for STIR caps. Option one caps growth based on a percentage of the number of current STRs per property, while option two caps growth based on the total number of dwelling units per property, in tiers based on zones. He said both options grandfather in existing licenses and do not set caps in the Town Core or in PUDs where Council has allowed STRs. He clarified that the Town is not looking at banning STRs. Option one is more AVON REGULAR MEETING MINUTES avonTUESDAYJUNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO restrictive in adding new STRs than Option two. Both propose extending the Town Core zoning to four new properties where there will be no cap. Council may amend either option and still move forward to first reading. He said STR regulations are only one of many efforts to resolve housing challenges, but he thinks it will go a long way towards achieving the goals of the Housing Plan. Mayor Smith Hymes clarified that the proposed fee for a resident occupied STR is actually $150, and was mistakenly written as $350 in the packet. Councilor Prince asked if there would be a fee for current license holders. Planner 1+ Morgan said existing license holders will be included in the license caps and their previous license fee payments will go towards the new fees. Councilor Prince asked if option one considered different thresholds for properties with few units and wondered if the cap would be inequitable to them. Planner 1+ Morgan said that there may need to be a different cap for very small properties with no current STRs. There is the potential in option one where small HOA's could become highly saturated with STRs. Mayor Smith Hymes asked if resident occupied STRs would be allowed without a cap. Town Manager Heil said that there are no proposed limits to resident occupied STRs as these types of STRs are a way to make housing more affordable for owners. Mayor Smith Hymes also asked how properties are selected to be included in the new Town Core zone. Planner 1+ Morgan said they fit well with the Town Core based on saturation rate and number of units. They were also not likely to convert back to long term housing if capped. Opposingly, properties in the west zone have been historically full-time residential and it is important to keep those properties affordable for long-term residents so that area will have lower caps. Mayor Pro Tern Phillips said that the Town should not base their caps on a guess of how many STR licenses there will be in the future. More data is needed for what types of STRs exist in Avon to give a baseline. Until that information is collected, it is difficult to design caps that will work. Planner 1+ Morgan replied that his team is working on gathering that data now. Town Manager Heil said that the data will be in before the end of this year. If this passes, Staff have to get everyone new licenses (with credits for previously paid fees). It will take a few months to do this so November 2023 is the compliance date and due date for data. Mayor Pro Tern Phillips said in addition to setting caps, Council needs to also consider the fee structure and data regarding what kinds of STRs exist. The total saturation could be skewed by resident occupied STRs or "front desk managed" properties. The STR program should work with other housing programs such as iMi Casa! Avon to prevent any more full-time housing loss. iMi Casa! Avon could be available to current owners who live in the STR overlay zone, for example. It doesn't make sense to allow more properties to become STRs in residential zones, but more data is needed to understand the current situation. Some properties in the Town Core are candidates to transition back to more affordable, long-term housing, and there could be a high cap in Town Core that preserves this. Council has received a lot of input from people who use their property frequently but do use STRs while they are not using it and should be in a separate license category that only rent a certain number of weeks per year. These rentals support the year-round community by offering lodging on shoulder seasons and don't take away long-term rentals. By considering these cases, the number of STRs that could become long term rentals in town would be different. Councilor Prince said it would be interesting to see 2020 vs 2021 average home price changes and how the different zones compare to each other. Mayor Pro Tern Phillips said the gaps between historically less -expensive zones are closing on prices in the historically more -expensive zones and full-time residents are looking for housing all over Town. He asked Town Attorney Hanlon whether he was comfortable that he could defend the rates selected legally. He said option one doesn't make any sense, option two causes random selection of each property to either benefit or be restricted based on too little or no evidence. He is not able to support either option as crafted. Town Attorney said yes, AVON REGULAR MEETING MINUTES avonTUESDAYJUNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO the legislative process would support the caps set in court, but the threat of litigation shouldn't prevent Council from making decisions they think are for the good of the community. Councilor Hardy asked how this solves the housing problem. She said the caps need to be lower to preserve the number of units available to locals. The west zone would be fine with a 15% cap and 30% for the north zone, at least temporarily. The central zone can stay uncapped since it was built to be STRs, but each of those properties still need space to house employees. The benefit of STRs is job and revenue creation, but each STR requires workforce which can't live here and increases the housing gap. There is a current issue for employees in the Town to find housing because too many properties are being bought up by investors. The cap should keep the number of STRs where it is now until employers can find appropriate housing for their employees. She suggested setting a cap tonight and then working through the details later. She doesn't like option one because she thinks the allowed percentage increase is based on arbitrary numbers. She prefers option two but with smaller increases allowed. Councilor Underwood said Council should look hard at option one with the right percentages and can determine that number tonight. Buck Creek Condos and Beaver Bench have low saturation and could be excluded from the new Town Core and an island could be drawn around Bel Lago and Greenbriar to add them in. She likes option one with the extended town core but with a modified extension to Town Core. Councilor Andrade asked why both options increase the saturation. He said it would be good to see a cap based on total available units outside Town Core in the long term. He agrees that a hard cap at the current number should be placed right now, although the extended Town Core is acceptable as is. Councilor Thuon said he doesn't favor either option. Council doesn't have the data needed to make a decision and hasn't considered the complexities of the issue fully. There needs to be better understanding of the actual problem. A moratorium on STR licenses tonight will make a lot of people angry and impact them negatively. Something needs to be done, but he's not ready to give direction tonight. Mayor Smith Hymes said the data presented tonight is a good start. Increasing the saturation doesn't make a lot of sense, but for the stability of the market, it is the Council's responsibility to take action and send a message. Option one is too arbitrary. Option two makes sense with a lower percentage. The idea of having a town wide saturation rate limit is something to consider as well. Council is trying to identify properties which will never become long term rentals and allow their owners to make money by STR'ing them. The problem is when potential long-term rentals are taken away by STRs. Councilor Prince said he could also support a limit on the number of days an STR is rented. Councilor Hardy asked how the Town would determine who was living in an STR week -by -week. Town Manager Heil said regulating STRs isn't a silver bullet. The biggest problem is that real estate is too expensive. A small part of the rise in price is due to STRs but not all of it. Mixed STR and long-term properties are healthy to have and doesn't mean there will be 100 percent STRs in the future. What will help the most are projects that build new units priced at AMI affordable levels. He suggested sending option two to the Planning and, Zoning Commission. Mayor Pro Tern Phillips said on one hand there is agreement that Avon needs to change the fee structure and safety standards as well as better understand licenses, and another which is how do we cap new licenses. They are separate issues, and the first part is important for the second. She suggested moving forward on other STR details and continuing to consider license caps. Councilor Underwood suggested passing the two options to PZC and moving AVON REGULAR MEETING MINUTES AvonTUESDAYIUNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COL 0 R A D O forward with approving other details without the fee structure table. Councilor Hardy said fees aren't going to disincentivize STRs, they should be set to where they can fund the STR program, not more. Mayor Smith Hymes called for public comment. Avon resident Edgar said capping STRs isn't really making an impact for the working class when long term properties aren't even affordable for many. It's not fair to take away the investments of people who bought STRs in Avon and rely on them. The Town needs to create new affordable housing for employees, converting hotels to workforce housing and focus on keeping rents down. Avon resident Derek George said he is an STR landlord, and it is part of the reason he can live here. He sees the employee housing shortage firsthand, and the real problem is that there is not enough single-family workforce housing available. He bought a property with the intention of doing long term rental and there were issues with public safety and health. Council should change the fee structure which currently incentivizes 1- and 2-bedroom apartments to become STRs even though they are the best places to rent long-term. His neighbors are hoping to one day have an STR and they plan for it and should be able to do so. Avon residents Nelson Mosier and Jagertha Mosier requested clarification on how their STR property would fit in the fee structure. Town Manager Heil said the fees will be based on the number of bedrooms at their property and that information will be available online shortly. Avon resident Shelley Slater said she is using her STR in the Town Center to help her business by using them for employee housing during the work week and as visitor lodging on the weekends. There are other ways for STRs to support workforce housing. Councilor Underwood moved to direct Staff to take the STR license caps and Town Core extension to the Planning and Zoning Commission and to continue first reading of Ordinance 22-08 to the June 281h Council meeting, Councilor Prince seconded the motion and it passed with a vote of 7 to 0. 5.3. FIRST READING: ORDINANCE 22-09 SHORT TERM RENTAL OVERLAY ZONE DISTRICT (SENIOR PLANNER JENA SKINNER) Video Start Time: 01:57:59 Part Two Senior Planner Skinner began to present on the STR overlay zone, but Council felt it already had enough information to make comments. Councilor Underwood said the STRO needed a new name and asked why the map was not part of the Ordinance and for clarity on how it would work with Ordinance 22-09, especially with the PUD's in Town Core. Senior Planner Skinner said the Town can affect licensing in PUDs but not zoning and the Town Core map is a pseudo zoning map. Town Manager Heil said there are some PUDs outside the Town Core where Council has already approved STRs. Councilor Underwood said that between the two Ordinances, it is not clear about consistent use of "primary residence" and "continuous use for less than 30 days." 5.4. PUBLIC HEARING: EMERGENCY ORDINANCE 22-12 APPROVING KAYAK CROSSING REFINANCING (TOWN MANAGER ERIC HEIL) Video Start Time: 02:07:20 Part One Town Manager Heil presented. He said Kayak crossing needs refurbishment and is working on refinancing. Existing debt would be paid off and a new loan taken from first bank and Eagle Bend as well as existing working capital would AVON REGULAR MEETING MINUTES TUESDAYJUNE 14, 2022 neon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO fund the project. There is a rate lock through June Th and so Council will need to take action tonight to close on the loans by the end of the week. Gerry Flynn from Polar Sar Property Management answered questions from Council. Councilor Prince asked what the interest is on the Eagle Bend loan and Flynn said it is two percent. Councilor Underwood asked what the refurbishment plan was. Flynn said construction started 6 weeks ago with advanced funds from Eagle Bend. The scope is similar to the refurbishment in Eagle Bend: replacing windows, doors, roofing, exterior siding, and decks. The road is in horrible condition, and will be replaced along with an added pedestrian walkway. River Run will reimburse them for half the road project cost. Mayor Smith Hymes asked if Eagle County would help with funding, and Town Manager Heil said the County was reluctant to contribute now but may be able to help pay off loans later on. Councilor Prince asked what the property's appraisal came to and Flynn responded about $15,2 million. Mayor Smith Hymes called for public comment and none was made. Councilor underwood motioned to approve Emergency Ordinance 22-12: Kayak Crossing Refinancing. Mayor Pro Tern Phillips seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 5.5. FIRST READING ORD 22-11 RECALL REGULATIONS TOWN MANAGER ERIC HEIL) Video Start Time: 02:24:56 Part Two Town Attorney Hanlon suggested Council pass the Ordinance on first reading unless there are any Council objections. Councilor Underwood said the draft was very good and she would happily pass on first reading and continue to work through details on a task force. Mayor Pro Tem motioned to approve Ordinance 22-12 Recall Regulations on first reading and setting a public hearing for July 26, 2022. Councilor Hardy seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 5.6. FINDINGS OF FACT AND RECORD OF DECISION FOR MNR22009, A MINOR DEVELOPMENT PLAN FOR EMERGENCY NOTIFICATION SYSTEM (PLANNING DIRECTOR MATT PIELSTICKER) Video Start Time: 02:29:01 Part Two Planning Director Pielsticker presented. He said this item simply documents the actions of Council from the previous meeting. Councilor Hardy motioned to approve Findings of Fact and Record of Decision for MNR22009, a Minor Development Plan for Emergency Notification System as published in the Packet. Mayor Pro Tern Phillips seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 5.7. APPROVAL OF LOBBYING CONTRACT (TOWN MANAGER ERIC HEIL) Video Start Time: 02:25:20 Part Two Town Manager Heil said this contract makes a lot of sense for Avon. It would share the cost of a federal lobbyist with other neighboring municipalities to make sure Avon's voice is heard. Councilor Underwood asked what the AVON REGULAR MEETING MINUTES avonTUESDAY1UNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO lobbying firm does, whether they have experience with transportation boards and railroads and whether they can submit a regular report of activity. Town Manager Heil said they monitor for federal funding for the Town and advocate for their needs. They do have experience with transportation organizations and will be submitting reports regularly. Mayor Smith Hymes said it worries her there is money available that the Town is missing out on. Councilor Hardy asked if this means federal leaders aren't representing Avon on their own. Town Manager Heil said Avon already has great connections and support at the State level but the federal is much more complex and staff need support navigating it. Mayor Pro Tern Phillips motioned to approve entering into a lobbying and consulting contract with Squire Patton Boggs and authorize the Town Manager to prepare and execute an appropriate retainer agreement subject to review by the Town Attorney. Councilor Thuon seconded the motion and it passed with a vote of 5 to 1. Councilor Prince voted no and Councilor Andrade was absent. 5.8. NOTICE OF AWARD FOR THE PURHCASE OF THE WILDRIDGE SIRENS (PLANNING DIRECTOR MATT PIELSTICKER) Video Start Time: 02:39:57 Part Two Planning Director Pielsticker presented the notice of award. Mayor Smith Hymes asked what the Town is using for notifications while the sirens are installed. Planning Director Pielsticker said current notifications come from the existing siren as well as other avenues such as the EC Alerts app. Councilor Thuon motioned to authorize issuance of notice of award for the installation of emergency notification sirens to Century Siren Inc in the amount of $131,432.18. Mayor Pro Tern Phillips seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 5.9. RESOLUTION 22-14 EXTENDING THE FINANCE COMMITTEE (TOWN MANAGER ERIC HEIL) Video Start Time: 02:42:31 Part Two Town Manager Heil presented and said all the members of the Finance Committee would like to continue to serve. Councilor Prince suggested staff should try to fill more of the available seats as not all committee members are able to attend every meeting. Town Manager Heil said they would post openings this week. Mayor Pro Tern Phillips motioned to approve Resolution 22-14, extending Resolution 19-15 Approving an Ad Hoc Finance Committee. Councilor Thuon seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 5.10. PUBLIC HEARING: SECOND READING OF ORDINANCE 22-03 AMENDING SECTION 15.08.160 OF THE AVON MUNICIPAL CODE REGARDING ISSUANCE OF GRADING PERMITS (TOWN ATTORNEY KARL HANLON) Video Start Time: 02:44:22 Part Two Town Manager Heil said this issue has been continued many times by Council and there is nowhere else to go with it. It prevents grading permits from being issued without building permits with some exceptions. Councilor Underwood asked if the administrative process allows the Town Engineer to check criteria for approval of a grading permit and Town Attorney Hanlon said yes it does. AVON REGULAR MEETING MINUTES TUESDAY JUNE 14, 2022 Avon HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO Mayor Smith Hymes called for public comment and there was none. Councilor Thuon motioned to approve Ordinance 22-03 Amending Section 15.08.160 of the Avon Municipal Code Regarding Issuance of Grading Permits on second reading. Mayor Pro Tern Phillips seconded the motion and it passed with a vote of 6 to 0. Councilor Andrade was absent. 6. MINUTES 6.1. APPROVAL OF MAY 24, 2022 REGULAR COUNCIL MEETING MINUTES (DEPUTY TOWN CLERK BRENDA TORRES) Video Start Time: 02:47:50 Part Two Councilor Thuon moved to approve the May 24, 2022 minutes. Mayor Pro Tern Phillips seconded the motion and the motion passed with a vote of 6 to 0. Councilor Andrade was absent. 7. WRITTEN REPORTS 7.1. Monthly Financial Report (Finance Manager Joel McCracken) 7.2. Kayak Crossing Update (Eaglebend Dowd Housing Corporation) 7.3. May 3rd PZC (Planning Director Matt Pielsticker) 7.4. O'Neal Spur Park Reservations (Recreation Director Michael Labagh) 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 02:48:13 Part Two Mayor Smith Hymes talked about the study released by Air BnB on impacts to local communities. She said it is not surprising that they only found good results of STRs in Communities. She also said the Colorado Association of Ski Towns board rebutted the inaccuracies in the report and she would send their rebuttal to the Council. She also reminded everyone that the Pride in the Park event would be in Harry A. Nottingham Park on Saturday. Councilor Prince thanked the staff for getting the Pride flags and putting them up nicely around Town. Councilor Underwood thanked staff for the outstanding job with the Art Around Avon Walk and implementation. 9. ADJOURN There being no further business before Council, Mayor Smith Hymes moved to adjourn the regular meeting. The time was 9:19 p.m. AVON REGULAR MEETING MINUTES avonTUESDAYJUNE14, 2022 HYBRID MEETING; IN -PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM COLORADO These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk's office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Gam,. Emily Myler, General Government Intern APPROVED: Q4n M Sarah Smith Hymes ' V Amy Phillips Chico Thuon Scott Prince Tamra Underwood Lindsay Hardy RJ Andrade