TC Minutes 07-23-1985•
MINUTES OF THE REGULAR AVON TOWN COUNCIL MEETING
HELD JULY 23, 1985 - 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
7:39 p.m. A roll call was taken with Clint Watkins, Sheila Davis,
A.J. Wells, Al Connell, and Don Buick present. Steve Miller was
absent. Also present were Town Attorney John Dunn, Town Manager
Bill James, Director of Engineering/Community Development Norm
Wood, as well as members of the press and public.
The Mayor called for Citizen Input. The Honorable Dan Williams,
House Representative for District 56, approached the Council. Mr.
Williams stated that the purpose of his visit was to inform the
Council of some of the legislation rap-up. He stated that the
State Legislature did pass a resolution in support of the 1989
World Ski Championships, and he presented Council a copy of that
resolution. He discussed House Bills regarding water, reviewing
some that passed and some that did not pass. After discussion,
Mr. Williams stated that he could best represent the area if
Council and area residents would let him know how they felt about
certain issues. The Mayor thanked Mr. Williams for his comments.
Next under Citizen Input was Jimmie Heuga, of the Jimmie Heuga
Center. Mr. Heuga discussed the goals of his Center. He stated
that the purpose of the Jimmie Heuga Center was to generate
interdisciplinary health programs for the physically challenged;
specifically, those having physical challenges as a result of
disease, birth defects, and trauma. He discussed the various
stages of his Center's development, such as outreach programs,
health retreats, and comparative studies. As a means to draw
attention to the effort, as well as to prove the medical
applications and procedures, they intend to develop a World
Medical Conference which would address specifically the latest
updates in reanimating the physically challenged. He stated that
they were requesting space in the proposed Event Center that would
allow them to administer on-going programs. He was also
requesting space for a library and computer area, and the option
to cordon off an auditorium area with the use of temporary,
accordion-like partitioning in order to conduct the various
physiological and psycho-social measures. After further
informative discussion, the Mayor thanked Mr. Heuga for coming.
Also under Citizen Input was Jerry Sibley in regard to the Roller
Brothers Circus. Mr. Sibley stated that the Eagle Valley Rotary
Club was sponsoring the Circus. It would take place on August 3,
1985, with shows at 2:00 p.m. and 8:00 p.m. He stated that they
had permission from the owners of Lot 65 to set the tent up there
and use that area. Mr. Sibley stated there would be a maximum of
2,500 people at each showing.
After discussion, Don Buick moved approval and endorsement of the
Circus, to be held August 3, 1985, with the condition that the
Town Manager receive the land owner's permission in writing, that
the Town Manager review the insurance policy, and that the Town
would be protected from any liability.
The motion was seconded by Al Connell, with the additional
condition that the Town would receive some publicity.
Mr. Sibley stated that there would be coverage by TV-2, and they
also planned to run information on where the Circus would be
located.
After discussion, the Mayor called for a vote. The motion was
unanimously carried.
Another item under Citizen Input was Terry Halverson, with the
Western Vail Valley Chamber of Commerce. He discussed what they
felt was an inequity in the local taxation structure. He stated
that the Chamber marketing budget for next year was to be
increased by $250,000. Last year, the initial budget figure was
$125,000. He stated that the Chamber's goal would be to put
together an Information Center for the next year. He stated they
would need the cooperation of the Town for such a project. Mr.
Halverson stated they would like to move on to other resources for
Chamber funding in the future. He stated that one option would be
to collect a 3 to 5 dollar a week marketing fee imposed on
timeshare units (see attached memorandum dated July 19, 1985). He
stated that, at this time, the Chamber does not have a mechanism
to collect marketing fees or taxes from 40 individual owners of a
timeshare unit.
Lengthy discussion followed.
Mr. Halverson stated that the Chamber's goal was to find a
funding source for marketing that would be permanent.
Councilman Wells stated that, if they would increase the fees
imposed on timeshare projects, which are currently billed as
recreational/transportation maintenance fees, the Town would
collect the fee and allocate so much of the fee to the Chamber.
The Chamber would then justify it on the basis of the disparity
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between the contributions from the lodging community verses the
contribution from the timeshare community. He stated he was very
much in favor of the Chamber's proposal.
Ron Phillips, Vail's Town Manager, approached the Council. He
stated that the Vail Resort Association was supported by
contributions from the Town of Vail, and the Town of Vail was
under contract to provide Special Events and to have people
working the information booths in Vail. He stated the
contributions totaled $120,000 a year for those services, and were
outlined by contract. He stated there was no specific tax
collected.
After discussion, Council agreed to look at this issue at budget
time.
Next under Citizen Input was Dan Sunday, President of the Western
Vail Valley Chamber of Commerce. He was requesting Council's
support for funding the building of an Information Center. He
stated that estimates for the facility would range from $80,000 to
$120,000. The facility would be approximately 1,000 square feet,
and would serve the dual purpose of Chamber offices and
Information Center. It would be located at the Avon exit off
west-bound I-70. Some benefits to the Chamber would be a clearing
house for informational brochures and flyers about the area,
and the opportunity for more direct contact with the tourists.
Some benefits to the Town would be increased traffic through Town,
increased sales tax revenue, and a potential increase in retail
growth. Mr. Sunday was requesting that Council consider the
reinstatement of the utilities tax, for the initial purpose of
providing funds for the construction of the Information Center.
He outlined the impact on households and businesses, stating the
average household would experience an approximate $48 per year
increase over existing utility bills; businesses would experience
varied increases in utility costs that would, on the average, be
higher than the average household increase. This was based on the
tax being levied on gas, electric, and telephone only.
Councilwoman Davis stated that, when Council raised the sales tax
to 4%, one of the trade-offs was that Council removed the
utilities tax. She stated she could not condone the reinstatement
of the utilities tax until she considered it further. Ms. Davis
complemented Chamber Director Judy Lofland on how she has operated
the Chamber on a shoestring budget, and on the success of the
Vintage Car Race event.
The Town Manager stated there were alternatives for the funding,
and stated he was in favor of the utilities tax.
It was agreed that this issue would be discussed at the next
regular meeting.
The Mayor also complemented Judith Lofland on the success of the
Vintage Car Races.
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The last item under Citizen Input was Ron Phillips, Town Manager
of Vail, and Gene Larson, General Manager of Heritage Cablevision.
Mr. Larson approached the Council, stating he hoped he could put
to rest a lot of the Town's concerns about a very publicized and
confusing issue, one that has been around the valley for some
time, that of Public Access Television. He stated that, over the
past year, Heritage Cablevision has been working with the Town of
Vail to resolve problems and provide some direction for the
operation of their studio facilities in Vail. He stated that it
has been a very under-utilized and expensive operation. He stated
that, through working with the Town of Vail, they have come up
with a set of guidelines to hopefully make it work. Mr. Larson
stated that Heritage had negotiated the issue with Vail, and that
Heritage's intent was not to negotiate a solution for the Town of
Avon, but hopefully to create a more utilized facility for all
subscribers within their service area. Mr. Larson reviewed some
highlights of the guidelines with the Council; (1) any resident or
organization in the Heritage service area may request to purchase
studio time for the production of public access programming,
(2) there would be a $30 charge, per hour, to utilize studio
equipment and facilities.
He stated the studio has been open to commercial use, to help
offset some of the operating expense and to help promote and
and purchase future capital investments. He stated that there was
a breakdown of time percentages, based on Heritage Cablevision
subscriber percentages in each service area. The percentage of
time available would be 81% for Vail, 15% for Avon, and 4% for
Minturn. Those numbers would be reviewed each January and updated
accordingly. Mr. Larson stated the space for the facility was
being leased from the Town of Vail. He stated that, at the time
the Franchise was transferred from Vail Communications to
Heritage, it was negotiated that Heritage would provide the
equipment and furnish a facility. He stated that this was an
addendum to the original Franchise Agreement, and stated that,
under Federal law, Heritage was commited to provide a channel to
any franchise area they service.
Ron Phillips, Vail Town Manager, approached the Council. He
reviewed what had taken place in the past few months regarding
Public Access Television. The reason that Eagle County was not
included in the use of the facility was that they do not have a
Franchise Agreement.
Councilwoman Davis felt that it was not fair to disregard
residents of Eagle-Vail because the residents are the paying
public.
Lengthy discussion followed.
Mr. James stated that Vail was opening the doors to their own
channel to other users. He stated that Avon has other options.
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If Avon wants public access, it could negotiate with Heritage for
it. He stated that Avon was not included in the meetings that
Vail had, to help develop those programs. Mr. James stated that,
when you are not heard on 2, 3, or 4 occasions, it is hard to
respond to the apparent final product, which was now before the
Council.
Jerry Davis, one of the former owners of Rocky Mountain
Cablevision, approached the Council. He stated that, by FCC
rules, Avon has just as much right to an access channel as does
Vail. He stated that the real issue was over the production
facility, not the right to use the channel. He stated that Public
Access Television would work with the cooperation of the people.
He felt Avon should not get involved if Avon was not involved in
setting up the game rules.
Ron Phillips reviewed letters that were sent to Avon requesting
input in the establishment of the guidelines. He stated this was
all on a trial basis, to see how it would work, and adjustments
would be made where necessary. He stated they were setting up a
non-profit organization that would have regional representation
from the communities involved. He stated that, once established,
the organization would have total control over their own affairs.
They could expand their Board and appoint anyone they wanted to
serve on it.
The Mayor thanked Mr. Larson and Mr. Phillips for their comments,
stating he felt the discussion would open up other avenues in
regard to this issue.
Councilman Wells felt the issue was primarily economical, between
those who want to produce shows and those who do not. He stated
he did not want to see Council take any action other than give
support to a valley-wide effort. He stated that Avon would
someday want to have its own facility and, at that point, Avon
would figure out how to accomplish that.
After discussion, A.J. Wells moved to recommend that Jerry Davis
be appointed to the non-profit organization, as a Director on that
Board. The motion was seconded by Clint Watkins, and was
unanimously carried.
Kevin Rice, Vice President of Operations/Heritage Communications
Group, addressed the Council. He stated they would like to see
the facility used; thousands of dollars were being spent on
capital expenses, and $70,000 per year on operating expenses, with
only 5% of the people using the facility. He stated he did not
think the studio would be fully utilized, and felt a second
facility would not be needed. Mr. Rice stated that the best way
to make this work was to make it an open effort, available to
anyone who wants to use it.
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First reading of Ordinance No. 85-15, Series of 1985, AN ORDINANCE
AMENDING CHAPTER 17.22 OF THE MUNICIPAL CODE OF THE TOWN OF AVON
TO LIMIT FIREPLACES IN CONNECTION WITH FRACTIONALIZATION.
Norm Wood stated that the Planning and Zoning Commission had
some comments in regard to their review of the ordinance.
1. Some consideration should be given to the recently adopted
Colorado Statutes regarding wood-burning stoves and fireplaces;
2. Consideration should be given to the impact of proposed
regulation on air quality in the valley;
3. Wood-burning stoves should be included in the restrictions;
4. They suggested allowing two wood-burning appliances per
Development Right, whether fractionalized or not.
Greg Kraft, a local developer, approached the Council. He was
concerned about Council limitation on fireplaces in the
fractionalization of non-timeshare projects, specifically in
Wildridge and Wildwood. He felt that one of the biggest selling
points would be fireplaces in these units.
Lengthy discussion followed.
The Mayor felt the ordinance should be tabled for further study.
The Town Manager stated that Council wanted a draft ordinance out
on this issue so that they could receive public input. He stated
that, if Council so desired, he would review some of the comments
that were forthcoming and would return to Council with some
alternatives.
Don Buick moved to table Ordinance No. 85-15, Series of 1985, on
first reading. The motion was seconded by Al Connell, and was
unanimously carried.
Norm Wood stated that, when the Town awarded the contract for
Phase III of the Mall construction, a project budget of $83,000
was established. He stated that the contractor has requested
approval of some cost increases. The increases were due to a
delay of the project, through no fault of the contractor. Mr.
Wood recommended a project budget increase of $5,765, to cover
increased project costs, bringing the total budget to $88,765.
Sheila Davis moved approval of Change Order #1 for Phase III Mall
construction. The motion was seconded by Al Connell, and was
unanimously carried.
Norm Wood stated he was requesting Council approval of Change
Order #1 for the Street Repair & Improvements project, which also
included repair of the Mall bus turnaround. He stated that, when
excavation at the bus turnaround began, they found that
over-excavation was necessary to correct the problem and that more
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material was needed. Change Order #1 proposed a price increase of
$4,772.50, bringing the total contract price to $88,852.50. Mr.
Wood stated the increase would be covered out of the Mall
Construction Fund.
A.J. Wells moved approval of Change Order #1 for the bus
turnaround contract held by Nottingham Sand and Gravel. The
motion was seconded by Clint Watkins, and was unanimously carried.
The Town Attorney reported on the Fair Labor Standards Act. he
stated that the Department of Labor had issued guidelines
approximately 30 days ago, and the Town was informed that the
enforcement date for the overtime requirement would be October 15,
1985. Enforcement would be retroactive to April 15, 1985. He
recommended to the Town Manager that the Town take steps to assure
compliance with the guidelines.
The Town Manager reported on the Winter Bus Schedule for the
1985-86 Ski Season. He stated that Beaver Creek Transit has
requested that Avon run buses evenings from 6:00 p.m. to 10:30
p.m. This would be a local service. The regular schedule of 7:00
a.m. to 6:00 p.m. was still planned for Beaver Creek. The cost
for increasing bus service for 1985 operations would be $6,160,
total cost for the increase for the 1986 budget would be $25,000.
He stated that another item was the possibility of Avon running
more buses during the peak periods.
After discussion, the Town Manager suggested that Council might
want to try the new schedule during November and December, plan on
inserting the funds into the 1986 budget, and run the service
through April of 1986. He suggested an evaluation of the service
at that time to see if it should be continued.
The Mayor suggested that Council leave it to the discretion of the
Town Manager.
Council agreed.
Mr. James reported on an amendment to the Agreement between the
Town of Avon and Beaver Creek Resort Company to provide operations
and maintenance on the buses. He stated that the CIRSA insurance
program excluded liability coverage for the Town's buses. Mr.
James stated that Vail Associates, Inc., has agreed to provide the
Town this coverage under its insurance program. One of Beaver
Creek Resort Company's requirements was that only Beaver Creek
Resort Company employees can drive the buses, but this was the
present situation, anyway. The other change was in the amount of
coverage.
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After discussion, Don Buick moved approval of the amendment, and
authorized the Town Manager to determine the amount of coverage
based on the requirements.
The motion was seconded by Al Connell, and was unanimously
carried.
The Town Manager stated he would schedule the Avon Event Center
for the next Work Session, and would take the Jimmie Heuga
Center's request to participate in the Event Center under
consideration. He stated he would like Council to think about
financing for the facility. He would be addressing this issue at
the next Avon Metropolitan District meeting, discussing whether
the AMD would reduce its tap fees by $500 if the Town would be
willing to take that money and use it for Capital Improvements.
No action was taken.
The Town Manager reported on Strategic Planning. He stated that
Chuck Schwahn gave Council some information on Strategic Planning
at the earlier Work Session. Mr. James recommended that Council
delay this issue until the budget process begins.
Mr. James then reported on the purchase of fence for Special
Events. He stated that, at the last minute, the fencing that had
been promised for the Vintage Car Race was withdrawn. With no
other alternatives, he purchased fencing at $0.67 per foot. The
total price being approximately $4,500. He stated the fencing
would be needed for other Special Events the Town would be holding
throughout the year.
No action was taken.
The Sign Code was next on the agenda. Mr. James stated he would
present a more simplified version of the Sign Code to Council at
the next meeting.
The Fall Fling was discussed. Mr. James stated that, if Council
had any comments or suggestions for the Fall Fling, there was
still time to put them on the brochure.
Councilman Watkins suggested that Town employees working Special
Events for the Town be identified with Town hats and T-shirts.
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The Financial Matters were next presented to the Council.
Don Buick moved to receive items #1 through #8. The motion was
seconded by Al Connell, and was unanimously carried.
Don Buick moved approval of the General Fund Accounts Payable for
July 23, 1985. The motion was seconded by Sheila Davis, and was
unanimously carried.
Clint Watkins moved approval of the Transit Fund, Public Works
Fund, and Mall Construction Fund Accounts Payable for July 23,
1985. The motion was seconded by A.J. Wells, and was unanimously
carried.
Sheila Davis moved approval of the Reconciliation Sheet of
Accounts Payable for July 23, 1985. The motion was seconded by
Clint Watkins, and was unanimously carried.
The minutes of the July 9, 1985, Council meeting were next
presented to the Council. Don Buick moved approval of the minutes
of the July 9th meeting. The motion was seconded by Al Connell,
and was unanimously carried.
Councilman Watkins stated he had been approached by some of
the wind surfers. They would like to see more time available for
wind surfing on the lake.
Councilman Connell stated he has been confronted by residents in
regard to officers appearing to be sitting outside of bars and
restaurants.
The Town Manager stated that the officers have been instructed to
keep moving within the area and, if they see a person who needs
assistance, the officers have been instructed to assist them and
make sure they get home safely.
There being no further business to come before the Council, Don
Buick moved to adjourn. The motion was seconded by Al Connell.
The meeting was adjourned, by Mayor Nottingham, at 11:37 p.m.
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Respectfully Submitte
cia J. Dgfyle, Town
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MEMO
TO: Honorable Mayor and Town Council
FROM: Western Vail Valley Chamber of Commerce and Mike Bennett
SUBJECT: Inequity of local taxation structure
It has come to our attention that a serious disparity exists
between the local tax revenue potential from short-term
condominium rental projects and timeshare projects. This
disparity would not concern us if there were a similar correlation
in the demand for services provided by the Town of Avon and the
Chamber of Commerce.
An example of the demand for services is evidenced by the attached
summary, provided by Beaver Creek Transit.
To illustrate the potential tax revenues of a timeshare project
that would correspond with a short-term rental project, we must
make the following assumptions:
1.
There are
40 timeshare
weeks/unit sold.
2.
The owners
will occupy
the unit 7 nights/week.
3.
The value
of each night
is $100.00
Given these assumptions, we may now calculate the sales tax and
accommodations tax revenues that would be generated if this were a
short-term project.
40 weeks/unit X 7 days/week = 280 days/unit
280 days/unit X 5100.00/day = 28,000.00/unit
528,000.00/unit X .05% = 1,400.00/unit
51,400.00/unit divided by 52 weeks = 27.00/unit/week
At present, the .timeshare projects pay a 57.63/unit/week
recreational maintenance fee.
Potential sales tax $ 27.00
Existing fees $ 7.63
Apparent disparity $ 19.37/unit/week
The Town of Avon and the Chamber of Commerce provide many benefits
to the owners of timeshare weeks. These benefits include special
events, roads, parks, transportation, and information services.
At this time, the Chamber has a mechanism to collect fees or taxes
from 40 individual owners of a timeshare unit, for marketing. The
management companies associated with the timeshare resorts have no
Honorable May*and Town.Council
July 19, 1985
Page 2
motivation to impose a fee and make a larger contribution, to the
Chamber, for marketing.
The Chamber feels very strongly that, if we are to adequately
promote Avon, we need additional marketing dollars. The timeshare
segment of our community has been identified as one which is
receiving benefits many times greater than the contributions it is
making. For this reason, we are requesting that you consider, in
your upcoming 5 year plan, a 3 to 5 dollar/week marketing fee
imposed on timeshare units.
Representatives of the Western Vail Valley Chamber of Commerce
will be present at your July 23, 1985, Council meeting to discuss
this option, if a space on that agenda may be reserved.