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TC Minutes 12-10-1985• 0 MINUTES OF THE REGULAR AVON TOWN COUNCIL MEETING HELD DECEMBER 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. Mayor Allan Nottingham called the meeting to order at 7:38 p.m. A roll call was taken, with Clint Watkins, Steve Miller, Sheila Davis, A.J. Wells, Al Connell, and Don Buick present. Also present were Town Attorney John Dunn, Town Manager Bill James, Director of Engineering/Community Development Norm Wood, Chief of Police Joe Olson, and members of the press and public. The Mayor called for Citizen Input. As there was no one to be heard, the Mayor closed the discussion. Second reading of Ordinance No. 85-20, Series of 1985, AN ORDINANCE AMENDING SECTION 3.32.020 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS-IT RELATES TO THE TAX LEVIED ON TRANSFERS OF TIME-SHARE UNITS.' Councilman Miller moved approval of Ordinance No. 85-20, Series of 1985, on second reading. Councilman Buick seconded the motion. The Town Attorney approached the Council. He stated this ordinance would increase the amount of transfer tax on time-share units, from 1/4% to 1%, resulting in a total tax of 2% on time-share units (1% above everyone else). The Mayor opened the meeting for public hearing. Alex Fogal, Vice President of Operations for Resort America Corporation, approached the Council. He stated he would be referring specifically to the Falcon Pointe project. He stated that, based on a 1% transfer tax, the time-share sales program would raise approximately $234,000 for the Town, over and above the amount of transfer tax that would have been paid on whole-unit sales. He presented a schedule that represented their recommendations to the Town in evaluating the ordinance on second reading. Specifically, they were suggesting an increase to 1/2%, instead of to 1%. Based upon the same sales volume, at a rate of 1/2%, they would expect transfer tax revenues of $154,500 from the project. Mr. Fogal stated that, based on their calculations, 64 additional riders would be using the transportation system, and he felt the additional transfer tax, at 1/2%, would be more than enough to cover the impact to the transportation system. He presented another schedule, regarding the recreational maintenance fee. They recommended raising the recreational fee to a $10 assessment level. Based on 3,060 owners, the annual recreational maintenance fees to the Town would be $30,600. Councilwoman Davis reminded Mr. Fogal that there would be an additional 3% bed tax, for a total of 8% sales tax that would be collected, effective January 1, 1986. After lengthy discussion, the Mayor closed the public hearing. Councilman Buick moved to amend ordinance No. 85-20, to read "the amount of the tax shall be 1/2 of 1%". Councilman Wells seconded the motion to amend, and it carried unanimously. The Mayor then called for a vote on the motion to approve Ordinance No. 85-20, Series of 1985. Council members voting "aye" were Clint Watkins, Steve Miller, Sheila Davis, A.J Wells, Al Connell, and Don Buick. There were no "nay" votes. The motion carried unanimously. Second reading of Ordinance No. 85-24, Series of 1985, AN ORDINANCE CONCERNING THE TOWN'S SALES TAX; REPEALING AND RE-ENACTING SECTION 3.08.030 OF THE MUNICIPAL CODE OF THE TOWN OF AVON. (Utilities tax) Councilman Buick moved approval of Ordinance No. 85-24, Series of 1985, on second reading. Councilman Miller seconded the motion. Discussion followed. The Town Attorney stated the ordinance would impose a tax on utilities. He stated there was a clarification, in paragraph B of the amendment, that provided for the tax to be levied regardless of the location from which the reservation for lodging, rental, or lease was actually made. Paragraph D imposed the tax, equal to 1% of gross receipts, that would be levied on sales of electrical energy, gas, steam or other heat, telegraph, and telephone service. This would be in lieu of the 4% tax. The Mayor opened the meeting for public hearing. As there was no one to be heard, the Mayor closed the public hearing and called for Council discussion. Councilman Watkins felt the money that would be raised from this tax was not really needed. He stated he was not in favor of putting it in the books now, so it could be raised later on. He felt the Town's tax on groceries was bad enough, and felt utilities do not need to be taxed in addition. Councilman Connell agreed, stating he saw no need for it at this time. It was stated that the average increase in utility bills would be -2- • • one dollar a month, effective January 1, 1986. felt it posed a hardship on those who could lea The Mayor entertained a roll call vote from the members voting "aye" were Steve Miller, Sheila and Don Buick. Council members voting "nay" and Al Connell. The ordinance passed by a 4 to Councilman Connell st afford it. Council. Council Davis, A.J. Wells, were Clint Watkins 2 vote. Second reading of Ordinance No. 85-27, Series of 1985, AN ORDINANCE AMENDING SECTION 3.08.020 OF THE MUNICIPAL CODE OF THE TOWN OF AVON TO INCLUDE THE RENTAL-OF ANY TANGIBLE ITEM AS A TAXABLE TRANSACTION. (Rentals) Councilman Buick moved approval of Ordinance No. 85-27, Series of 1985, on second reading. Councilman Miller seconded the motion. The Town Attorney stated the purpose of the ordinance was to impose a sales tax on rentals, effective January 1, 1986. Without the amendment, rentals would not be taxed. The Mayor opened the meeting for public hearing. As there was no one to be heard, the Mayor closed the public hearing and offered the ordinance to Council for comment. There being no further disuussion, the Mayor called for a roll call vote. Council members voting "aye" were Clint Watkins, Steve Miller, Sheila Davis, Al Connell, Don Buick, and A.J. Wells. There were no "nay" votes. The motion carried unanimously. Second reading of Ordinance no. 85-25, Series of 1985, AN ORDINANCE AMENDING SECTION 3.28.030 OF THE MUNICIPAL CODE OF THE TOWN OF AVON TO INCREASE THE RATE AND COVERAGE OF THE PUBLIC ACCOMMODATIONS TAX. The Mayor opened the meeting for public hearing. Kevin Payne, Director of the Western Vail Valley Chamber of Commerce, approached the Council. He stated he was concerned about this proposal that would raise the Accommodations tax to 4%, bringing the total tax to 12.1% on short-term lodging. He felt this increase would put Avon at a considerably higher rate than surrounding areas, and felt this was not the message the Community wanted to send to the resort market place. He stated that the Chamber wanted to recommend some other means of raising revenue. Discussion followed. The Town Manager stated that other communities have the luxury of money from ticket sales to help bring in the revenues then need. Lynn Kraft, with the management company that handles Sunridge Condominiums, approached the Council. She stated there would be customer sensitivity to a sales tax quote of 12.1%. She felt there was a real problem with anything in double digits. She -3- • • stated that, to the lodging community, this would essentially be a retroactive tax. She was also concerned about the January 1, 1986, effective date.. She stated they have a number of reservations already paid and confirmed. She stated she could not go back and tell those people they would have to pay an extra $10.00 a night, any more than she could tell them that Avon has raised the tax 3% and she would have to collect 3% more than what she had quoted them. She stated that the increase has been represented as a users tax, to cover transportation costs, and had several reasons for feeling it was not a fair users tax. Using an example of a low average of $100 per night for accommodations, the 4% sales tax and the 1% accommodations tax combine for a total of 5%, meaning visitors would be paying $5.00 in taxes, per night, toward the Town bus system. For a one week stay, there would be no comparison between what a time-share user paid toward the bus system and what a short-term lodger paid. Discussion followed. Greg Kraft, also with the above mentioned management company, approached the Council, stating they were having trouble renting to capacity. He suggested charging a quarter a ride on the buses. It was stated the Town can not charge because of lack of a PUC License. Mr. Kraft stated there were other ways to increase revenues. Councilman Buick stated that the Town was in the business of providing services for guests, tourists, and residents. Mike Bennett, General Manager of Beaver Creek West Condominiums, approached the Council. He stated that Council should keep in mind they were not dealing with units, they were dealing with people who would be paying the tax and those people's perception of the tax. Discussion followed. The quality of the transportation was discussed. Pat Montgomery, Realtor, approached the Council. He stated that, at the Christie Lodge, there were thirty-five people in each unit that pulled together and paid approximately $450,000 a piece, per condominium unit in the area. He stated these people do not think of themselves as renters, but as owners, which they are. Mr. Kraft felt a more general tax should be looked into. The Mayor closed the public hearing. Councilman Wells moved approval of Ordinance No. 85-25, Series of 1985, on second reading, with an amendment stating the effective date would be May 15, 1986. Councilman Miller seconded the motion. Council members voting "aye" were Clint Watkins, Steve Miller, Sheila Davis, A.J. Wells, Al Connell, and Don Buick. There were no "nay" votes. The motion carried unanimously. -4- 9 • Second reading of Ordinance No. 85-28, Series of 1985, AN ORDINANCE AMENDING SUBSECTION F OF SECTION 3.08.040 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS IT RELATES TO EXEMPTIONS FROM SALES TAX. The Town Attorney stated this amendment would delete utilities, except cable television services, from the exemption part of the Code. Councilman Buick moved approval of Ordinance No. 85-28, Series of 1985, on second reading. Councilman Miller seconded the motion. The-Mayor opened the public hearing. As there was no one to be heard, the Mayor closed the public hearing and offered the ordinance for Council consideration. There being no further discussion, the Mayor called for a roll call vote. Council members Steve Miller, Sheila Davis, A.J. Wells, Al Connell, and Don Buick voted "aye". Councilman Clint Watkins voted "nay". -The ordinance passed by a 5 to 1 vote. Second reading of Ordinance No. 85-29, Series of 1985, AN ORDINANCE AMENDING SECTION 3.32.030 OF THE MUNICIPAL CODE OF THE TOWN OF AVON REGARDING THE AMOUNT OF TAX ON THE USE OF ANY TIME-SHARE UNIT'LOCATED IN THE TOWN. This , ordinance would increase the amount tax levied, per time-share unit per week, from $7.63 to $10.00. Councilman Miller moved approval of Ordinance No. 85-29, Series of 1985, on second reading. Councilman Wells seconded the motion. The Mayor opened the public hearing. There was no one to be heard, so the Mayor closed the public hearing and offered the ordinance to Council for discussion. There was discussion regarding the words "Excise Tax" versus "Sales Tax". It was stated that the whole tax structure would be re-studied. Council discussed the time frame for collection of these taxes, and discussed increasing the tax from $10.00 to $15.00. Attorney Dennis Cole stated they had agreed to implement a $10.00 fee, effective January 1, 1986, and they were set up to start collecting that fee. He stated that, in addition to the fee, a number of units at the Christie Lodge would be paying Accommodations Tax at the increased level, beginning May 15, 1986. Tony Gulla, President of Resort America Corporation, felt they were paying their fair share of the transportation system costs, but would contribute more, if necessary. They would also consider an increase in the recreational fee, although they felt it may have a detrimental impact on the sales program over a long period of time. The Mayor called for a roll call vote on the ordinance, which had an effective date of January 1, 1986. -5- 0 Councilmembers voting "aye" were Clint Watkins, Steve Miller, Sheila Davis, A.J. Wells, Al Connell, and Don Buick. There were no "nay" votes. The motion carried unanimously. Second reading of Ordinance No. 85-30, Series of 1985, AN ORDINANCE AMENDING TITLE 15 OF THE MUNICIPAL CODE OF AVON TO PROVIDE FOR PAYMENT OF TAP FEES. The Town Attorney stated the ordinance would require the payment of all applicable tap fees before issuance of a permanent or temporary Certificate of Occupancy. Councilman Buick moved approval of Ordinance No. 85-30, Series of 1985, on second reading. Councilman Miller seconded the motion. The Mayor opened the meeting for public hearing. Using Falcon Pointe as an example, it was stated they would have to pay a new tap fee if they surrendered their permanent Certificate of Occupancy. The Town Manager stated they would receive credit for tap fees already paid and, based on the current schedule, they would have to pay any additional tap fees upon a change in conditions. The Mayor closed the public hearing and called for a roll call vote. Council members Clint Watkins, A.J. Wells, Sheila Davis, Don Buick, Al Connell, and Steve Miller voted "aye". There were no "nay" votes. The motion carried unanimously. Second reading of Ordinance No. 85-26, Series of 1985, AN ORDINANCE AUTHORIZING EXECUTION OF A CERTAIN EQUIPMENT LEASE AGREEMENT. (Front-end loader) Councilman Miller moved approval of Ordinance No. 85-26, Series of 1985, on second reading. Councilman Wells seconded the motion. The-Mayor opened the public hearing. As there was no one to be heard, the Mayor closed the public hearing and offered the ordinance for Council comment. The Town Manager stated the Town's current equipment does not have the capacity to handle the snow removal job. He stated that, if the Town continues to use the present equipment, there will be the need for major repairs, at some point, that will amount to $9,000 or $10,000. It was stated that, for the present, they would use the bucket on the proposed new loader, and then possibly add a blade in a couple of years. The proposed equipment would cost $42,215. The Mayor called for a roll call vote. Council members voting "aye" were Clint Watkins, Steve Miller, Sheila Davis, A.J. Wells, and Don Buick. Councilman Al Connell voted "nay". The motion carried by a 5 to 1 vote. First reading of Ordinance No. 85-31, Series of 1985, AN ORDINANCE -6- AMENDING TITLE 3 OF THE MUNICIPAL CODE OF THE TOWN OF AVON PROVIDING FOR CAPITAL-IMPROVEMENT FEES, PROVIDING FOR A LIEN ON PROPERTY IN CASES WHERE THE CAPITAL IMPROVEMENT FEE REMAINS UNPAID, PROVIDING' FOR PENALTY FOR THE VIOLATION HEREOF, AND PROVIDING FOR ADDITIONAL DETAILS IN RELATION THERETO. Councilman Buick-moved approval of'Ordinance No. 85-31, Series of 1985, on first reading. Councilman Miller seconded the motion. Thee ordinance was in respect to Avon Metropolitan District reducing their tap fees, by $500, so the Town could have a specific revenue for Capital Improvements. The Mayor called for discussion. Councilman Watkins stated that, as he understood it, the imposition of the fee applied to new construction, only. The Town Attorney stated the ordinance was intended to apply to initial occupancies. Councilwoman Davis suggested some type of Grandfather Clause be added, to provide that the ordinance apply to new construction. Discussion followed. It was noted that the Sections were numbered wrong. Council discussed the definition of "Accommodation Unit, and felt it should be consistent with the Municipal Code. This could possibly be done by reference. After discussion, Councilman Buick moved to table Ordinance No. 85-31, Series of 1985, so the changes could be made. Councilman Miller seconded the motion, and it carried unanimously. Resolution No. 85-36, Series of 1985, A RESOLUTION ADOPTING A DEVELOPMENT PLAN FOR THE TOWN OF AVON, COLORADO, AS A SUPPLEMENT TO, AND FOR USE IN CONJUNCTION WITH, THE MASTER PLAN FOR THE TOWN OF AVON. Mr. James recommended that Council just receive the Development Plan as a report, only. Councilwoman Davis so moved. Councilman Buick seconded the motion. It was stated that the resolution should be changed to show that Council was adopting the Goals, Policies, and Programs, only, and that the document should be attached to the resolution. It was stated that the map needed to be adhered to. It was suggested that the resolution be changed, and referred to the Planning and Zoning Commission for their approval. At that point, Council would consider it for approval. Councilwoman Davis moved to table Resolution No. 85-36, Series of 1985. Councilman Connell seconded the motion, and it carried unanimously. Resolution No. 85-42, Series of 1985, A RESOLUTION CANCELLING THE COUNCIL MEETING OF DECEMBER 24, 1985. Councilman Miller moved approval of Resolution of 1985. The motion was seconded by Councilman No. 85-42, Series Watkins, and was -7- 0 unanimously carried. Next on the agenda was a report from the Town Manager regarding Guidelines for Fractionalizing Existing Projects. He stated that existing projects can be fractionalized if all requirements under the Municipal Code and the Administrative Rules for fractionalization are met, plus the following: 1. that the project does not create excess Development Rights; 2. that 50%, or more, of the existing units are remodeled; 3. that the developer pays for mitigation for all impacts resulting from fractionalization, i.e.: turn lanes, bus stops, sidewalks, curb & gutter, etc.; 4. that the developer pays Capital Improvement fees on total units for remodeling projects, to mitigate the impacts on community facilities, i.e.: Falcon Pointe would pay Capital Improvement fees on 60 units, not 30 units; 5. that the existing Certificate of Occupancy shall be surrendered, and a Temporary Certificate of Occupancy shall be issued for occupied units on a unit by unit, floor by floor, or building by building basis. Temporary Certificate of Occupancy designation shall be made at the time of application for fractionalization, and approved during design review. Lengthy discussion followed. Council agreed that guidelines #1, 2, 4, & 5 were okay. Guideline #3 should be changed to read, "Developer pays for mitigation Qf all appropriate impacts resulting from fractionalization, i.e.: possible turn lanes, possible bus stops, possible sidewalks, and possbile curb & gutter, etc. Mr. James stated he would refer these guidelines to the Planning and Zoning Commission, and then return to Council with a draft ordinance. Mr. James reported on the Haralson & Associates proposal. A method of payment had been agreed to; $2,500 fifteen days after authorization, $7,500 upon submission of a draft report, and $5,000 upon submission of the final report. They had also included their estimated study expenditures, which were approximately $3,460. Mr. James stated the reference check had yielded excellent reports from past clients, and recommended holding off until after the holidays. Mr. James also reported on the Economic Development & Marketing Plan. He stated he would like to put the total package together, and report back to Council on January 14, 1986. -8- 0 • The Financial Matters were next presented to Council. Councilwoman Davis moved to receive items #1 through #9. Councilman Connell seconded the motion, and it carried unanimously. Councilman Connell moved approval of the General Fund Accounts Payable for December 10, 1985. Councilman Miller seconded the motion, and it carried unanimously. Councilman Watkins moved approval of the Transit Fund and Mall Construction Fund Accounts Payable for December 10, 1985. Councilman Miller seconded the motion, and it carried unanimously. Councilman Miller moved approval of the Reconciliation of Accounts Payable for December 10, 1985. Councilman Watkins seconded the motion, and it carried unanimously. The minutes of the November 26, 1985, Council meeting were next presented to Council. Councilman Buick moved approval of the November 26th Council meeting minutes. Councilman Connell seconded the motion, and it carried unanimously. Councilwoman Davis stated that, at the last Northwest Colorado Council of Governments meeting, they discussed the 208 Plan. The Water Commission had withheld approval of the Plan's Policy 2, which stated that County Commissioners have some say about where the water goes. Counsel for NWCCOG had drafted a letter, and were requesting that the Mayor sign it and send it out immediately. Councilman Buick moved to authorize the Mayor to execute the letter. Councilman Connell seconded the motion, and it carried unanimously. Councilwoman Davis also had draft legislation on open meetings, and on sales tax in unincorporated areas that would allow the County to tax all unincorporated areas. -9- Councilman Miller complemented done on the Tree Lighting Event. good events, he hoped Council Events Coordinator. 0 the Town's staff for the good job He stated that, to continue with would support a full-time Special There being no further business to come before the Council, Councilman Wells moved to adjourn. Councilman Connell seconded the motion, and it carried unanimously. The Mayor adjourned the meeting at 11:30 p.m. Respectfully Submitted: APPROVED: atricia J. D e, Town er -10- 0 0 b S 9- L