TC Minutes 06-27-20000 0
MINUTES OF THE REGULAR MEETING OF THE TOWN COUNCIL
HELD JUNE 27, 2000
A regular meeting 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 Judy Yoder at 5:30 PM. A roll call was taken
with Councilors Jim Benson, Michael Brown, Debbie Buckley, Mac McDevitt and Buz
Reynolds. Boardmember Rick Cuny was absent. Also present were Town Manager Bill
Efting, Town Attorney Burt Levin, Assistant Town Manager Larry Brooks, Town Clerk
Kris Nash, Executive Assistant Jacquie Halburnt, Police Chief Jeff Layman, Fire Chief
Charles Moore, Recreation Director Meryl Jacobs, Town Engineer Norm Wood, Public
Works Director Bob Reed, Transportation Director Harry Taylor, Community
Development Director Michael Matzko, Special Events Coordinator Sarah Lai, Planner
Tambi Katieb, Assistant Director of Community Development Ruth Borne, Community
Development Administrative Assistant Celia Fenton as well as members of the public
Citizen Input:
Salute to the USA Update
Special Events Coordinator Sarah Lai updated the Council on the July 4t' Salute to the
USA to take place in Nottingham Park. There will be food and craft vendors as well as a
free concert by Flash Cadillac at 6:00 PM. Fireworks begin at 9:45.
Citizen Input:
Wildridge Safety (Ms. Peggy Pieters/Mr. Charlie Sherman)
Ms. Peggy Pieters approached the Council regarding the speed bump that was placed in
Wildridge. She questioned what took place at the last Council meeting to cause the
removal of the speed bump on Wildridge Road. She stated that she attended a meeting at
the end of May that Council motioned to install a speed bump on Wildridge Road. She
believed that the motion was to install the speed bump and review it in 30 days.
Ms. Pieters discussed a petition that was distributed amongst Wildridge residents
regarding the installation of a speed bump on Wildridge Road, and the steps she followed
to circulate the petition.
Ms. Pieters questioned if it is procedure for the Council to vote on an issue, set a time
limit on that issue and then revote on the issue before the time limit is up. She felt that
the Council did not keep their word, that they were blasted in the newspaper, and acted
with an act of integrity. She stated that she is not attached to having speed bumps in
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June 27, 2000
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Wildridge, but that is the only thing she knows of for controlling speed. She is open to
other ways. She just felt that the Council did not keep their word.
Town Manager Efting stated that there is some confusion. He stated that he was the one
that said "do we want to try this for 30 days". The Council at that point said that they did
not want a specific amount of time.
Town Manager Efting stated that Staff did go out to Wildridge and looked at the option
of installing speed dips. The Town is not giving up on ways to slow down the traffic in
Wildridge.
Ms. Pieters then questioned once again if it is policy for the Council to vote on something
and then revote 2 weeks later to do something else. Council stated that they have that
option.
Councilor Reynolds questioned how long the speed bump was installed for. He was told
10 days. He questioned how many people came in opposition. Mayor Yoder stated
about six people.
Ms. Pieters and Council discussed the petition again.
Ms. Pieters stated that she is disappointed in the actions that have taken place regarding
the speed bump. She feels that it was not handled in the proper manner.
Councilor Reynolds questioned the reason for taking out the speed bump. Council said
Citizen Input and phone calls. Council stated that they did not receive any comments in
favor of the speed bump.
Next, Mr. Charlie Sherman approached the Council to correct some misinformation that
was reported in a newspaper article that he said blasted he and Ms. Pieters. He stated that
the article said the speed bump was placed in front of their house, the bump was placed
50 feet up the street. Regarding the variance, the article stated that the variance was a
favor and that the speed bump was another favor. He stated that variances are granted to
allow construction on difficult sites, not favors. Mr. Sherman also commented on quotes
from residents in Wildridge.
Mr. Sherman stated that he is open to different remedies to speeding besides speed
bumps. He has met numerous times with Police Chief Layman and appreciates all that he
and his staff has done.
Citizen Input:
Real Estate Transfer Tax Appeal, 2481 Buffalo Head, Wildridge (Whitney Grundtisch)
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Mayor Yoder stated that Ms. Grundtisch has delayed her appeal to the July 11,.2000
meeting.
Citizen Input:
Real Estate Transfer Tax Appeal, 0288 West Beaver Creek Blvd. (Westlund Investments)
Town Attorney Burt Levin introduced Mr. Thomas McMillen of Professional Exchange
Accommodators, LLC, who represents Westlund Investments.
Mr. McMillen discussed the Internal Revenue Code 1031 (Real Estate Exchange) and_
then discussed a Reverse 1031 Exchange, which is the exchange'the Westlund's did. He
stated that the Westlund's had to close on their new property pri or to selling their old
property, and further discussed how they did the Reverse 1031' Exchange. He stated that
the Westlund's had a contract to buy a property in Avon and had a property for sale in
Minnesota.` Time came to close on the new property in Avon, but the Minnesota property
had not yet sold. - The Westlund's came to Mr. McMillen's company and they set up a
Colorado holding company. The holding company buys the new property for the
Westlund's and holds it for them. When the holding company bought the property for the
Westlund's, it paid the Avon transfer tax. Mr. McMillen stated the transfer tax has been
paid once and they are asking for exemption from paying a second transfer tax. He stated
the holding company is "in title" but it is merely an accommodation under the Internal
Revenue Code for the Westlund's. Mr. McMillen stated that the property in Minnesota
has sold and the Westlund's can now transfer the proceeds from that property to the
holding company who will transfer the Avon property to the Westlund's, which makes
the transfer tax payable again. Mr. McMillen stated it is the second transfer tax that they
are appealing.
Mr. McMillen felt that there is a current provision in the Town's code in section 3.12.060
(G) that the Westlund's would fall info., , , ,
Mayor Yoder questioned why the sale price was larger on the second transaction than the
first. Mr. McMillen stated because the Westlund's made improvements to the property.
Mr. McMillen agreed that a transfer tax should be paid attributable to the increase in
value.
Councilor Reynolds questioned that the property was purchased as an investment and not
as a primary residence. Mr. McMillen stated that is correct. Councilor Reynolds
questioned this. Town Attorney Levin stated that he does not agree that Section
3.12.060(G) applies. He stated that (G) only applies if there is a transfer without
consideration. He stated that he has the settlement sheet for two transfers and there is
consideration for both transfers. He stated (G) contemplates correcting minor changes in
subsequent transfers between the same parties to undo technical mistakes and to make
minor boundary adjustments, it does not speak of this case. Councilor Reynolds
questioned what item G was written for. Mr. Levin discussed.
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Mr. Levin stated that he denied the application because there is no recognition in our
exemptions for 1031 transfers. Mayor Yoder commented that it is not the 1031, but the
Reverse 1031 that causes the problem. Mr. McMillen stated that is correct.
Mr. McMillen questioned how he could make suggestions to amend the Town code to
provide for the Reverse 1031 Exchange.
Mr. McMillen then introduced Ms. Michelle Page of Beaver Creek West who spoke to
the Council on the economic aspects of this exchange. Ms. Page stated that the
Westlund's would not have purchased the unit if they knew they would have to pay a
second transfer tax.
Mr. Levin stated that Council should make a motion that either the appeal is successful
and the tax is waived, or the tax be paid and the exemption not be granted. Mayor Yoder
questioned if it could be tabled and discussed again within 30 days.
Mayor Yoder felt that what was said does have merit and she would like to discuss it
further at a worksession. Council agreed.
Councilor Reynolds motioned to table to the next meeting the Transfer Tax Appeal for
0288 West Beaver Creek Blvd., Westlund Investments. Councilor McDevitt seconded
the motion. The motion carried unanimously.
Council requested to see all documentation on the exchange prior to making any
decisions.
Ordinances:
First Reading of Ordinance No. 00-07, Series of 2000, An Ordinance Authorizing the
Execution and Delivery by the Town of a First Amendment to a Prior Lease Purchase and
Sublease Agreement and an Official Statement; Approving the Assignment of the Town's
Interest in a Contract to Purchase Real Property; Ratifying Action Previously Taken
Concerning the Referenced Transactions; and Providing Other Matters Relating Thereto
Finance Director Scott Wright stated this ordinance is also known at the 2000 Affordable
Housing Financing Ordinance. This ordinance concerns the purchase of 11 condominium
units at Sherwood Meadows by the Town of Avon Finance Authority and then leasing
those units to the Town from the Authority pursuant to an existing lease purchase and
sublease agreement that was created when we financed the Swift Gulch Maintenance
Facility. Mr. Wright stated this ordinance designates the preliminary official statement as
a nearly final official statement for the purposes of the US Securities and Exchange
Commission. It authorizes distribution of the preliminary official statement by our
underwriters. They use that statement in the marketing of their bonds, which will occur
in approximately one week It also authorizes the Mayor, Town Clerk, and other officials
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and employees of the Town to execute and deliver all the other documents and
certifications that pertain to this financing. A public hearing is scheduled on July 11
where a representative of the underwriters will be here to talk to the Council regarding
interest rates and final financing dollars. Mr. Wright stated that he could also make Bond
Counsel available at that meeting if the Council desires. Council stated that was not
necessary.
Councilor Benson motioned approval of Ordinance No. 00-07, Series of 2000 on first
reading. Councilor Buckley seconded the motion.
Mayor Yoder asked for a roll call.
The motion carried unanimously.
Resolutions:
Resolution No. 00-31, Series of 2000, A Resolution Endorsing the Vassar Meadows Land
Exchange Between the White River National Forest and Town of Avon, Eagle County,
Colorado
Mayor Yoder stated this is a public hearing.
Town Planner Tambi Katieb asked if there were any questions.
There being no questions, Councilor Benson motioned approval of Resolution No. 00-31,
Series of 2000. Councilor Buckley seconded the motion. The motion carried
unanimously.
Town Manger Report:
Town Manager Efting reminded everyone of an open house in the councilchambers on
Thursday, June 29, from 5-7 PM on the Forest Service land exchange.
Mr. Efting stated that item c of the consent agenda will be changed from "approval" of
the audit to "acceptance" of the audit.
Other Business:
Councilor Reynolds asked Council why the 30 day trial period was not upheld for the
speed bump in Wildridge. Council said that it was not motioned for 30 days, it was a
number that was thrown out during discussions. Councilor Reynolds stated that he spoke
to a number of people in Wildridge today and they said they really had to slow down and
think about where the bump was. He said that people told him that it was working.
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Council discussed the issue and decided that it will be discussed at a future work session.
Consent Agenda:
a.) Approval of the June 13, 2000 Council Meeting Minutes
b.) Financial Matters
c.) Approval of Audit by Van Schooneveld & Co.
d.) Contract with Quickbeam Systems, Inc.
e.) Contract with Ourston for Roundabout Design
f.) Resolution No. 00-32, Series of 2000, A Resolution Approving Amended
Condominium Map of Unit E-203, Second Supplement to Condominium
Map for Canyon Run and Unit I-201 (Garages A & B), Sixth Supplement
to Condominium Map for Canyon Run, Lot 4, Nottingham Station, PUD
Amendment No. 3, Town of Avon, Eagle County, Colorado
Councilor Benson motioned approval of the Consent Agenda with the change of item c to
read "acceptance" of the audit. Councilor McDevitt seconded the motion. The motion
carried unanimously.
There being no further business to come before the Council, Councilor Buckley motioned
to adjourn the meeting. Councilor McDevitt seconded the motion. The motion carried
unanimously and the meeting adjourned at 6:20 VM.
APPROVED:
Jim Benson
Michael Brown
Debbie Buckley
Rick Cuny
Mac McDevitt
Buz Reynolds
Judy Yoder
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