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TC Minutes 11-12-1982RECESSED MEETING OF THE 9th OF NOVEMBER, 1982 OF THE TOWN OF AVON COUNCIL HELD NOVEMBER 12, 1982 - 7:30 P.M. The recessed meeting was called to order at 8:05 p.m. by Mayor Nottingham. This was a continued meeting of November 9th, 1982. A roll call was taken with Larry Kumpost, Sheila Davis, Greg Gage, Al Connell, and John Blish present. A.J. Wells arrived at 8:10 p.m. The Council continued the discussion of the bus service. Mr. Blodgett stated that after all the meetings and discussions his proposal would be to purchase three twenty-five (25) passenger mini-buses on a lease purchase arrangement. He stated that they would estimate the life of those buses from three (3) to four (4) years depending on the ridership. On the basis of that he was estimating the cost of each of the vehicles to be about $40,000/year to operate in the winter season. Mr. Blodgett recommended, predicated on the 4% sales tax, that the Town budget a 2% of the sales tax and allocate that for transportation. Christie Lodge and Avon Center have agreed to participate with a $2.00 per room per night fee and they previously agreed to participate to underwrite the lease/purchase cost of one van, if the system did not produce enough money to pay for it, they would help finance during the off season. Mr. Blodgett recommended that the Town take the responsibility of two vans and they (Christie Lodge and Avon Center) take the responsibility of one van. He stated that the Towns contribu- tion to the system would approximately be $80,000 and the other two entities would be $40,000. He stated that Beaver Creek Transit would be willing to run the system for the Town under a contractural agreement. The ridership from Avon to Vail was discussed. Larry Lichliter stated that they are currently planning to provide bus service from Beaver Creek to Vail, seven nights a week. He stated that they have applied with PUC for a common carrier license. The riders would be picked up at the Reception Center then would be taken into Vail. There would be a charge of $1.00 each way. This service would not be run in the off season. It was stated that this service level (two buses to be provided by the Town; and one by the private sector) is contingent on the passage of the sales tax. The Town Manager stated the alternative would be for the Town to cut back to one bus. The Council then proceeded to discuss the sales tax. Mr. Blodgett stated that 1% of sales tax would generate $165,000. Rick Cuny, resident, stated that his argument against the sales tax was that it would hurt the retail businesses in the Town. He stated that taxing food was wrong. Ray Crawford, resident, stated he rides the Lift Bus Service and pays to ride that bus. As far as the sales tax, he stated he would shop at Safeway. Clint Watkins, nonresident, stated he was against the increase of the sales tax. He presented to the Council a list of some of the items that he thought could be trimmed out of the budget. Mr. Watkins then proceeded to go through the list. Gary Miller, resident, stated he was in favor of Mr. Watkins suggestions. He stated possibly align the Town's priorities for what is necessary at this time. Steve Erickson, resident, voiced opinion against the sales tax. He suggested that the Council look into possibly leasing the upper level of the Municipal Building. Bruce Wyman, nonresident, stated he did not think all of the budget items had to be done in one year at the expense of the people of the Town. Tom Backhus, resident, stated he was in favor of the tax issue and stated he had confidence in the Town Manager. He felt that the Town had to move forward. Nick Dalba, resident, stated that if the Town were to cut the services and were to cut the quality of people that were being hired, then the Town would suffer. Jerry Davis, resident, would like to see the Council compromise. Don Buick, resident, stated he felt that the Town does need planning at this time that the Town does need the funds now to proceed. Councilwoman Davis stated that she felt there was still room in the budget to cut out the contingencies. Councilman Connell stated that the Council should go back and look at the budget to see where they could cut. Councilman Kumpost stated he thought the food tax could be phased out. Councilman Wells stated he felt that the Council set forth its effort at what can wait, what can be cut to even determine if the sales tax could be kept at 3%, to determine whether or not they need more of a reserve, to determine what fat there is in the budget. He was concerned with taxes on the utilities. A lengthy discussion followed. The Council recessed at 10:00 p.m. and reconvened at 10:35 p.m. Councilman Gage stated that in relation to the 41 sales tax, he stated that he thought the Town should go with the tax, but not increase the tax across the board and stated he thought further study on the budget was needed and to start working to completely reduce the sales tax on food and utilities. After discussion A.J. Wells moved approval to pass Ordinance No.#82-27, Series of 1982 on first reading provided that the language in paragraph 1.08.010, paragraph (h) deletes the language "electrical energy, gas or telephone or telegraph and that under paragraph 3.08.040, add a new paragraph to exempt residents from paying sales tax on services from utility companies and provided that the additional $35,000 needed to cover the extra bus be covered by $25,000 from contingencies from capitol outlay and $10,000 from the Riverfront Planning and provided that the other expenditures relative to the Riverfront Planning along with other expenditures of those natures be included by staff and recommendations to the Council between now and the second reading as to where they would cover the $60,000 that is. coming out of the budget to go back to the residents and provided that staff include in their recommendations before the second reading in Public Hearing, something to the Council how they could approach all utilities in a similar manner especially from the franchise fee standpoint so that they are all basically treated the same and that the franchise fee is in lieu of the sales tax. The motion was seconded by John Blish. Those Councilmembers voting aye were: Larry Kumpost, Sheila Davis, Greg Gage, A.J. Wells, Al Connell, and John Blish. The motion was unanimously carried. At that point Sheila Davis stepped down. A.J. Wells moved to amend the Ordinance No.#82-27, Series of 1982 under paragraph 3.08.010 subparagraph (h), to also delete cable Television Services from sales tax and to include language in the new paragraph 3.08.040, subparagraph (f), to make clear that the Council was exempting Cable Television from sales tax. The motion was seconded by Al Connell. Those Councilmembers voting aye were: Larry Kumpost, Greg Gage, A.J. Wells, Al Connell, and John Blish. There were no nay votes. Sheila Davis abstained. The motion carried. The Council then returned to discuss the bus service. After lengthy discussion Councilman Gage moved to authorize the purchase of three (3) ElDorado Falcon People Movers at the cost of $29,775.00 each with the specifications on the letter dated November 5, 1982 and purchasing the buses on a lease/purchase. The motion was seconded -2- -3- Respectfully Submitt i Patricia J. Dory Town Cle -4-