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TC Minutes 09-10-1985E • MINUTES OF THE REGULAR AVON TOWN COUNCIL MEETING HELD SEPTEMBER 10, 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 7:46 p.m. A roll call was taken with Clint Watkins, Steve Miller, Don Buick, A.J. Wells, Sheila Davis, and Al Connell present. Also present were Town Manager Bill James, Chief of Police Joe Olson, Town Attorney John Dunn, Director of Public Works/Parks & Recreation Larry Brooks, Director of Engineering/Community Development Norm Wood, and members of the press and public. The Mayor called for Citizen Input. There being none, the Mayor closed the discussion. Second 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. This was a public hearing. The Mayor opened the meeting for public hearing. There being no public comment, the Mayor closed the discussion. The Town Attorney stated that no changes had been made to the ordinance since first reading. A.J. Wells moved approval of Ordinance No. 85-15, Series of 1985, on second reading. The motion was seconded by Steve Miller. The Mayor called for a roll call vote. The motion carried unanimously. First reading of Ordinance No. 85-16, Series of 1985, AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN EQUIPMENT LEASE AGREEMENT. Mr. James stated that this lease agreement was in regard to the purchase of a bus, authorized by Council last May, for $116,000. He stated that quotes were received from a number of investment firms, with the lowest quote coming from George K. Baum and Company. Baum & Co. quoted 8.45% interest, as compared to 10% quoted by the other firms. The lease amount shown on the Baum proposal letter was $135,000. This would be changed to reflect • • the actual amount of $116,000. Payments would be quarterly, over 5 years, and Bond Counsel would not be necessary. The Town Attorney stated he had reviewed the lease and had no problems with it. Councilman Miller stated he would rather not have to take action on hand-corrected agreements. Mr. James stated that, in addition to the changes written on the face of the agreement, a new payment schedule and a signature would have to be obtained. He suggested Council approve the ordinance on first reading, subject to all corrections being made prior to second reading. Al Connell moved approval of Ordinance No. 85-16, Series of 1985, on first reading. The motion was seconded by Don Buick. Steve Miller moved to amend Al Connell's motion to include that approval would be subject to all corrections being formally incorporated into the agreement, and that it be signed, prior to second reading. The motion to amend was seconded by Sheila Davis. The Mayor called for a vote on the motion to amend. The motion carried unanimously. Mayor Nottingham called for a roll call vote on the motion to approve first reading of Ordinance #85-16. Mr. James stated that the date of the first payment would be changed from September 15, 1985, to October 15th. A roll call was taken with Al Connell, Steve Miller, Don Buick, Sheila Davis, and A.J. Wells voting "aye". Clint Watkins was opposed. The motion carried by a 5 to 1 vote. Resolution No. 85-32, Series of 1985, A RESOLUTION SETTING FORTH THE TOWN OF AVON'S INTENT TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE LANDMARK HOTEL CORPORATION PROJECT. An amended resolution was distributed to Council. The title of the amended resolution was, A RESOLUTION APPROVING AN INDUSTRIAL DEVELOPMENT PROJECT FOR LANDMARK HOTEL CORPORATION, MAKING CERTAIN FINDINGS AND DETERMINATIONS, PRELIMINARILY APPROVING THE ISSUANCE OF UP TO $10,000,000 PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS (HOLIDAY INN PROJECT) IN CONNECTION THEREWITH AND AUTHORIZING REPRESENTATIVES OF THE TOWN TO TAKE ACTION INCIDENTAL THERETO. Mr. James stated that Landmark Hotel Corporation has approached the Town with regard to possibly taking over the Holiday Inn project that was proposed to Council over a year ago by Brown Development Company. The Corporation owns, leases, and operates approximately 16 hotel nation-wide. The Corporation is in the process of negotiating with the principals of the year-old Holiday Inn project to see if they can assume and use the bonds that the Town issued last year, to Avon Resort Properties, to finance a new Holiday Inn project in Avon on the same site. Mr. James stated -2- that the matter of the bonds was being approached on a double track. While Landmark Hotel Corporation is trying to work out a way to assume the existing bonds, under their name, from Avon Resort Properties, they have asked the Town to also make preliminary preparations to issue new bonds, in case the existing bonds can not be taken over. This was the purpose of the inducement resolution currently before Council. Application would be made to the state for a $10,000,000 allocation, which would be good for 90 days. The Town Manager stated that additional requirements have been included in this new inducement resolution to try and avoid some of the problems experienced in the last bond issue. Most notable is that a take-out letter of credit will be required at the time of closing, as opposed to an escrow letter of credit. At this point, Mayor Allan Nottingham and Councilman A.J. Wells stepped down due to a potential conflict of interest. The Mayor Pro Tem then proceeded with the meeting. Mr. James recommended leaving off the date for now, leaving it at 90 days from the date of state allocation until after an opinion is received from Bond Counsel. He stated that protection of the good fiscal reputation of the Town would be included, up front. Another requirement that has been included, in the form of a collateral agreement, is that $10,000 will have to be paid to the Town, upon execution of the agreement, to cover the Town's expenses and an additional $5,000 could be required, also. Mr. James stated this would be standard procedure in the future. Mr. James stated that in order for Landmark to assume the existing bonds, negotiations and agreement between a number of different parties would be required. The deadline on the existing bonds would also have to be extended. In order to avoid what could be a lengthy period of negotiations, and to avoid the possibility of the I.R.S. declaring the transfer a new issue, thus eliminating the tax-exempt status of the bonds, Mr. James recommended pursuing a new bond issue. He felt the Town would be in a much better position if new bonds were issued. Sheila Davis asked the Town Attorney how he felt about changing the deadline on the existing bonds. Mr. Dunn stated he would rather see the Town issue new bonds, also. It was stated that Landmark Hotel Corporation does have an option to buy the land, and does have a substantial amount of money invested. Discussion followed. Don Buick moved approval of Resolution No. 85-32, Series of 1985. The motion was seconded by Al Connell, and was carried with Mayor Nottingham and A.J. Wells abstaining. The Mayor and Councilman Wells resumed their seats. -3- • • Next on the agenda was Change Order #2 to the Street Improvements Contract. Norm Wood explained that change order #2 was to adjust the Nottingham Sand & Gravel contract to reflect actual quantities used and to adjust the total contract amount. This change order would increase the contract price by $4,721.67, for a total contract price of $93,574.17. The adjusted contract amount would still fall within the amount approved for this contract. Discussion followed. Sheila Davis moved approval of Change Order #2 to the Street Repair and Improvements Contract. The motion was seconded by Steve Miller, and was unanimously carried. Change Order #3 to the Street Improvements Contract was next presented to Council. Norm Wood explained that-change order #3 was actually to add construction of a bus stop, on Beaver Creek Blvd., to the existing street improvements contract. This would allow the Town to take advantage of an existing contract, with its insurance and bonding provisions, as well as existing bid prices for most of the work. This change order would increase the total contract amount by $4,850.00. Mr. Wood reviewed what construction of the bus stop would entail for the Council. Don Buick moved approval of Change Order #3 to add construction of a bus stop to the Street Improvements Contract. The motion was seconded by Steve Miller. Mr. Wells pointed out an error in the contract price shown on the change order. The $98,274.17 shown should be $98,424.17. The motion to approve was unanimously carried. The Town Attorney stated that the Blodgett case is set for trial in early March, 1986. He stated there is a court-ordered settlement conference scheduled for October 18, 1985. Lengthy discussion ensued. Council directed the attorney to write a letter to the insurance company involved in the suit brought against the Town by Avon Police officers, making the insurance company aware that the Town Council is vehemently opposed to any pre-appeal settlement being made. Further discussion followed. The Town Manager and the Council discussed alternatives and time tables for a trip to Calgary, Canada, to look at aquatics centers. Mr. James stated that L.W. Construction firm has proposed a trip, to Bollingbrook, Illinois, in addition to the Canada trip. The firm would provide 10 commercial airline tickets to the Town, for -4- 0 a trip the week of September 23rd. A date would have to be picked. It was decided that as many Council members as possible would go to Canada, on September 17th, via Wavetek corporate jet. If any of the 5 available seats were not taken, some of the staff would also go. Discussion followed. It was decided that the trip to Illinois would be scheduled for September 26th. The Financial Matters were next presented to the Council. Sheila Davis moved to receive items #1 through #8. The motion was seconded by Steve Miller, and was unanimously carried. Clint Watkins moved approval of the General Fund Accounts Payable for September 10, 1985. The motion was seconded by Steve Miller, and was unanimously carried. Don Buick moved approval of the Transit Fund and Mall Construction Fund Accounts Payable for September 10, 1985. The motion was seconded by Al Connell, and was unanimously carried. Don Buick moved approval of the Reconciliation Sheet of Accounts Payable for September 10, 1985. The motion was seconded by Al Connell, and was unanimously carried. The minutes of the August 27, 1985, Council meeting were next presented to the Council. Sheila Davis moved approval of the minutes of the August 27th regular meeting, as presented. The motion was seconded by Steve Miller, and was unanimously carried. There being no further business to come before the Council, Don Buick moved to adjourn. The motion was seconded by Al Connell Councilman Watkins brought up the subject of Attorney Jon Mulford's bill for services rendered in connection with the Forest Service land exchange, included in the packets for Council's information. He felt some decision should be reached regarding payment, and questioned the fact that the Town was being billed for a phone conversation with Cliff Thompson of the Avon-Beaver Creek Times. Councilman Connell felt it was made clear to Mr. Mulford that he had only been authorized to write a letter, and -5- • 0 felt it was not the Town's obligation to pay Mr. Mulford for work performed without authorization. He also questioned the charge for the phone conversation with Cliff Thompson and the $75 charged for photocopies. Councilman Wells stated that he remembered Council authorizing payment of $500 to Mr. Mulford in connection with the letter, but did not think the 2 hours of time billed for a meeting attended in Glenwood Springs was an authorized expense. Mr. James stated he had no problem with paying Mr. Mulford for the 2 hours spent in the meeting, but did not feel the rest of the bill was justified. It was then agreed that Council did ask Mr. Mulford to attend the meeting in Glenwood with the Forest Supervisor. Mr. Wells felt that the charges over and above the meeting time should be paid by Western Land Exchange. Councilmembers Buick and Connell felt the Town should not pay anything at all. Discussion followed. A.J. Wells moved to pay Jon Mulford for 2 hours time, spent in the meeting in Glenwood, at the rate of $125 per hour. The motion was seconded by Sheila Davis. Sheila Davis, Steve Miller, and A.J. Wells voted to pay. Clint Watkins, Al Connell, and Don Buick were opposed. Mayor Nottingham voted to pay, breaking the tie. The motion carried by a 4 to 3 vote. Sheila Davis stated she felt Council should send a letter to Paul Cartmill expressing distress over reports of the poor treatment some of the balloonists received at the Christie Lodge when they were here for the Balloons, Bluegrass, & Barbeque event. She felt Paul Cartmill should be made aware that Council hoped the problems experienced could be worked out in the future to the mutual benefit of all parties involved. Councilwoman Davis so moved. Steve Miller seconded, adding his appreciation to Clint Watkins and Al Connell for attending the post Balloons, Bluegrass meeting last week. The motion carried unanimously. Steve Miller moved to spread at large in the community the letter received from Rocky Mountain Vintage Racing, Ltd. complimenting the Town staff and residents on the wonderful treatment the racers received when they were in Avon. The motion was seconded by Sheila Davis, and was unanimously carried. The Town Manager stated that Judith Lofland resigned her position as Director of the Western Vail Valley Chamber of Commerce as of last Friday. -6- 0 0 Mr. James stated he had decided to hold off on increasing winter bus service until next year. At this point, the Mayor called for a vote on the motion to adjourn. The motion carried unanimously. Mayor Nottingham adjourned the meeting at 9:16 p.m. Approved: -7- Respectfully Su mitted: L