TC Minutes 12-10-1985•
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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Councilman Miller complemented
done on the Tree Lighting Event.
good events, he hoped Council
Events Coordinator.
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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
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