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TC Minutes 12-27-19889 a MINUTES OF THE REGULAR TOWN COUNCIL MEETING HELD DECE14BER 27, 1988 - 7:30 P.M. The regular meeting of the Town Council of the Town of Avon, Colorado, was held in the Municipal Building, 400 Benchmark Road, Avon, Colorado, in the Council Chambers. The meeting was called to order by Mayor Allan Nottingham at 7:37 p.m. A roll call was taken with Albert Reynolds, Mike Bennett, Emilie Harrison, Gloria McRory, Jim Stovall and Jerry Davis present. Also present were Assistant Town Attorney Terri Diem, Town Manager Bill James, Director of Engineering Norm Wood, Fire Chief Wayne Smith, Police Chief Art Dalton, Town Clerk Patricia J. Doyle, as well as, members of the press and public. The Mayor called for Citizen Input. Ted Martin, Event Director of U.S. Sports, approached the Council. Mr. Martin presented the Council with hats and shirts for the Mountain Man Triathlon Event. He reviewed the Event with the Council. He discussed the Event being featured in various magazines, articles and TV coverage. The Mountain Man Triathlon was in its seventh year. The first year there were five competitors, and in 1989, there will be 200 to 300 competitors. The Event is scheduled for January 14, 1989. Mr. Martin reviewed the Tour of the Rockies Event with the Council. The Mayor thanked Mr. Martin for his presentation. There being no further Citizen Input, the Mayor closed that portion of the agenda. Second reading of Ordinance No. 88-14, Series of 1988, AN ORDINANCE IMPOSING AN EXCISE TAX FOR GENERAL REVENUE PURPOSES ON THE OCCUPANCY OF TIME-SHARE UNITS WITHIN THE TOWN OF AVON; PROVIDING METHODS FOR THE COLLECTION THEREOF; AND PROVIDING PENALTIES FOR THE VIOLATION HEREOF; AND PROVIDING FOR OTHER DETAILS IN RELATION THERETO This was a public hearing, which was tabled from the December 13, 1988 Council Meeting. Mr. James stated that this ordinance has been before the Council a couple of times previous to this date to see if there could be re-negotiations with Christie Lodge and Falcon Pointe time-share, of a settlement that could take place of the new ordinance of certain fees, that would be paid to the Town. At that point Mr. James reviewed the Town's analysis of the Final proposal that the Council had received on December 23, 1988 from Christie Lodge and Falcon Pointe. He stated that there were staff recommendations of how the Town would like to see this handled. The following recommenda- tions were: 1. That the Ordinance No. 88-14 be referred to Davis, Graham, Stubbs for their opinion; 0 • 2. That the ordinance be passed as is, and to review certain numbers and items over a period of a month so that the Council could have a good justification of the fee that the Town could charge; 3. The Town would like to see the fee based on occupancy with no credits; 4. That the Appeal be left alone for now; 5. That all the ordinances be left alone relating to taxes, which included the 20 Real Estate Transfer Tax and the additional to Transfer Tax on time-share units; 6. To start some type of collection process for the $24,000, which is to be paid by December 30, 1988, or some date that the Council would be comfortable with; 7. That after the review of these recommendations, and the review of the ordinance with the Town Attorney, that a letter be sent to Christie Lodge requesting payment of sales and accommodation taxes on Bonus Nights (there were some concerns of the exchanges of time-share that needed to be addressed, that taxes should be'paid on those exchanges). Councilwoman Harrison moved approval of Ordinance No. 88-14, Series of 1988 on second reading. The motion was seconded by Councilwoman McRory. The Mayor opened the meeting for public hearing. Michael Clowdus Attorney with Pendelton and Sabian, and a spokeperson for a large group of entities who have an interest in the time-share projects in Avon, approached the Council. Mr. Clowdus felt that with a month in which they could study this analysis, in which to agree with a number that would be reasonable, made them highly motivated to look at this analysis. He stated that they were interested in a settlement on this matter. Mr. Clowdus reviewed the calculations of numbers and wished that Council look at the concerns of the group of entities that were involved with the Christie Lodge. He stated that the Christie Lodge Time-Share Association was willing to pay the $24,000 as part of the settlement. He stated that there were four Mortgagees at the Christie Lodge. They were Lenders that held the mortgages of the owners of Christie Lodge(13,000 people who bought interest into Christie Lodge). He stated that the total amount of the mortgages equaled Thirty Nine Million Dollars. He stated that the same Lenders have remaining units that could be time-shared, plus inventory that they have taken back due to foreclosures, that equaled another Forty One Million Dollars. The group of Lenders were: Columbia Savings of Denver, Gold Dome Savings from New York, U.S. Home Acceptance Corporation from Hous.ton,and Gill Savings from San Antonio, that have Eighty Million Dollars at stake. He stated that the impostion of the fee as currently set forth as seventy dollars per week would have a devastating impact on the projects; on the Lenders, both on their portfolio Mortgage Loans and also on the Time- Share Associations because it could put them out of business. -2- 0 He stated he hoped that they could set down in the next month and agree on a reasonable number. Mr. Clowdus stated that the other alternative as they saw it would be litigation. There would be litigation on the Appeal, and if the ordinance passed, and they not be able to reach a settlement in the next thirty days, there would ba a challen(ge to the ordinance, also a challenge to the time-share transfer tax and the Real Estate Transfer Tax. He stated that even if the Town won on all three of the litigations, the Town would loose, because the Town would have another Peregrine and Avon Center on their hands. The Time-Share Projects would be put out of business. Jim Martin with Baker and Hostetler, and representing Gill Savings, approached the Council. He stated that he felt that there was an opportunity for a new Town Council to look at this in a non-emotional way and decide which was the best approach and solution in dealing with the duties of the municipal government to provide municipal services, and the duties of the property owners, and tax payers to pay their fair taxes. He stated that the tax that was about to be considered was clearly excessive, it was ten times essentally the tax that was being litigated in Judge Jones Court. He felt it was far beyond anything that was necessary for the Town to balance its budget. The Town should not place this burden on the Time-Share owners solely. Mr. Martin proposed that the Council consider an amendment,one word amendment, change the word "night" to "week" in the present ordinance as presently written. He stated that with that change, they were all looking in the right direction. He felt that the Council should not adopt a $10.00 per night ordinance and essentially burden the Time-Share owners. Councilwoman Harrison stated that this Council was not against Christie Lodge, that the Council was not out to get Christie Lodge, but the Council was there to talk. She stated that Christie Lodge had not come before the Council with anything new. The Council wanted to agree on a good equitable arrangement, but Christie Lodge was not there to listen. She stated that the Council was trying to run a Town, that the Council was trying to make Christie Lodge understand that there was a problem. She stated that Council cannot do a thing until the Christie Lodge listens to what the Council had to say. Mr. Martin indicated that a month ago he had asked that both parties agree on a number, and had thought that that effort was being made on both sides, but apparently that effort has fallen short. He stated that again they were before the Council to show their interest, but were met with a proposal to adopt the ordinance as presently written at a $10.00 per night fee. Discussion followed. -3- 9 • Councilman Davis stated that the Council and staff have spent a lot of time on this issue. He stated that the Town was not trying to solve its budget problems. The Council was trying to get to a formula so as to have time-share pay their fair share. He stated that the Council had these same discussions a few years ago when the time-share people asked for special consideration to be allowed the use in Avon, and the increase usage of the facilities, and all the other things that go along with time-share. He stated that the Council was trying to deal with this issue in a fair and honest way. He stated that Mr. Clowdus was aware that the Council was adopting the ordinance if there was no agreement. He stated that what he has seen, as far as an agreement, was nowhere close to an agreement with the Council. Councilman Stovall stated that this tax was not a Punitive Tax. He stated that the ordinance does not go into effect until February 1, 1989. He stated that Mr. James and the Town Attorney would look hard at the justification of the $10.00 per night fee. If its not justified, then the number would be amended. He did request that the Christie Lodge Group continue to talk and negotiate so that an agreement could be reached. The Mayor called for a roll call on the motion. Those Councilmembers voting aye were: Albert Reynolds, Mike Bennett, Emilie Harrison, Gloria McRory, Jim Stovall and Jerry Davis. There were no nay votes. The motion was unanimously carried. Mr. Clowdus stated that they would continue the negotiations. Second reading of Ordinance No. 88-19, Series of 1988, AN ORDINANCE RESTRICTING DOGS IN TRACT G, BENCHMARK AT BEAVER CREEK, BENCHMARK AT BEAVER CREEK SUBDIVISION This ordinance would restrict dogs in Tract G only on Special Events. Councilwoman McRory moved approval of Ordinance No. 88-19, Series of 1988 on second reading. The motion was seconded by Councilman Stovall. The Mayor opened the meeting for public hearing. There being no one wishing to be heard, the Mayor closed the public hearing. There being no Council discussion, the Mayor called for a roll call on the motion. Those Councilmembers voting aye were: Albert Reynolds, Mike Bennett, Emilie Harrison, Gloria McRory, Jim Stovall and Jerry Davis. There were no nay votes. The motion was unanimously carried. -4- 0 M Resolution No. 88-34, Series of 1988, A RESOLUTION TO AMEND THE 1988 TOWN OF AVON BUDGET. Mr. James was amending the 1988 budget to provide an additional $6,800 contribution to the Avon/Beaver Creek Resort Association. Councilwoman Harrison moved approval of Resolution No. 88-34, Series of 1988. The motion was seconded by Councilman Davis and was unanimously carried. Resolution No. 88-35, Series of 1988, A RESOLUTION TO AMEND THE 1989 TOWN OF AVON BUDGET. Mr. James was amending the 1989 Budget to reflect an additional contribution to Avon/Beaver Creek Resort Association in the amount of $10,000(Marketing) and T.V. Translator System in the amount of $12,500(Economic Development). Councilman Stovall moved approval of Resolution No. 88-35, Series of 1988. The motion was seconded by Councilman Davis and was unanimously carried. Resolution No. 88-36, Series of 1988, A RESOLUTION GRANTING A SPECIAL REVIEW USE TO ALLOW A HOME OCCUPATION USE ON LOT 15, BLOCK 1, FILING NO. 1, EAGLEBEND SUBDIVISION. Norm Wood stated that Chris Eckrem had applied to the Planning and Zoning Commission for Special Review Use for a Home Occupation on Lot 15, Block 1, Eaglebend Subdivision. The proposed Home Occupation was to allow the production of pottery and ironworks within the residence. The Planning and Zoning Commission approved the Special Review Use with the followina_ conditions: 1. That the Home Occupation shall not generate significant vehicular traffic in excess of that typically generated by residential dwellings. No parking or storage of commercial vehicles shall be permitted on the site. 2. There shall be no noise, vibration, smoke, dust, odor, heat or glare noticable at or beyond the property line as a result of the Home Occupation. 3. Selling stocks, supplies or products on the premises shall not be permitted, provided that incidental- retail sales may be made in connection with other permitted Home Occupation. 4. That the Special Review Use shall be reviewed at the first regular meeting of the Planning and Zoning Commission in 1990 to evaluate conformance with conditions and conformance with Home Occupation regulations. Councilwoman McRory moved approval of Resolution No. 88-36, Series of 1988 for Home Occupation on Lot 15, Block 1, Eaglebend Subdivision for Chris Eckrem. The motion was seconded by Councilman Stovall and was unanimously carried. -5- 0 0 The Mayor reported on the "Governor's Invitational'Golf-_Classic".The funds would be distributed to benefit the mentally handicapped children of Colorado. Council agreed that the Mayor respond by letter to show support. The Mayor read a letter from Governor Romer in respect to appointing individuals to his State Boards and Commissions. The Mayor stated that he would copy the Council in regard to these different Boards and Commissions to see if they would be interested in serving on them. The Financial Matters were next presented to the Council. Councilwoman Harrison moved approval of the General Fund of Accounts Payable for December 27, 1988. The motion was seconded by Councilwoman McRory and was unanimously carried. Councilwoman McRory moved approval of the Reconiliation Sheet of Accounts Payable for December 27, 1988. The motion was seconded by Councilman Reynolds and was unanimously carried.' Councilwoman Harrison moved approval of the December 13, 1988 Council Meeting Minutes as presented. The motion was seconded by Councilman Bennett and was unanimously carried. Items under other business were as follows: Metro Marketing: Councilman Davis stated that a timely decision was needed so that the Marketing Committee could proceed with or without Avon. He stated that he requested that Council make a decision of whether or not Avon was going to participate in the Metro Marketing concept. Councilwoman Harrison stated that Avon should form a committee, put off the marketing concept until February 1, 1989, and then study this concept until September 1, 1989. She felt it was bad timing, and was not effective use of the money. Councilwoman McRory agreed. Councilman Davis stated that the issue of the year was to study the Business Licensing Fees, and not the Marketing. Councilman Reynolds asked what Avon would receive for the $60,000. -6- 0 0 Councilman Davis stated that the proposal was for Avon to approve the Plan prior to giving the funds. There would be two members on the Board from Avon, three from Vail, and two from other municipalities. He stated that the point was to make the commitment with conditions attached. If the conditions were met, then Avon would be committed to give the money for this year. Councilman Davis moved approval of the expenditure of $60,000 for 1989, for the Metro Marketing Board contingent upon Avon having two Boardmembers, and that the Avon Town Council approve the Plan prior to the funding alloted. The motion was seconded by Councilman Bennett. After some discussion, Councilman Davis amended his motion to include that the money come out of the Public Works Fund. Councilman Bennett amended his second. The motion carried by a 4 to 2 vote with Councilpersons Harrison and McRory opposing. Councilwoman Harrison moved approval to direct the Town Manager to appoint Davis, Graham, Stubbs as Special Counsel regarding the Christie Lodge Appeal. The motion was seconded by Councilman Bennett and was unanimously carried. It was the consensus of the Council to talk to residents of Avon in regard to serving on the Personnel Merit Commission. The Mayor reported on the upcoming World Championships and the events that would be taking place. Mr. James would be meeting with the Christie Lodge Group on January 6, 1989 for further negotiations. There being no further business to come before the Council, Councilwoman McRory moved to adjourn. The motion was seconded by Councilman Stovall. The meeting was adjourned by Mayor Nottingham at 9:13 p.m. -7- • a TFULLY SUBMIT Patricia J. Doyle, ATowfi Cler APPROVED: -8- • • ~~a