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TC Minutes 04-14-1987• 0 MINUTES OF THE REGULAR AVON TOWN COUNCIL MEETING HELD APRIL 14, 1987 - 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 7:40 p.m. A roll call was taken with Emilie Harrison, Steve Miller, Clint Watkins, Al Connell and Jerry Davis present. Gloria McRory was absent. Also present were Town Attorney, John Dunn, Town Manager Bill James, Director of Engineering/Community Development Norm Wood, Director of Public Works/Parks and Recreation Larry Brooks, as well as, members of the press and public. The Mayor called for Citizen Input. K.T. Gazunis, Director of the Eagle County Economic Development Corporation, approached the Council. Ms. Gazunis introduced herself, and presented the Council with a survey to fill out. She discussed the overview of the organization, and the information that was available. The Mayor thanked Ms. Gazunis for coming. There being no further Citizen Input to come before the Council, the Mayor closed the discussion. The Ordinances were then presented to the Council for approval. First reading of Ordinance No. 87-8, Series of 1987, AN ORDINANCE TO CONTRACT AN INDEBTEDNESS OF THE TOWN OF AVON, COLORADO, BY AUTHORIZING THE ISSUANCE OF THE TOWN'S GENERAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS, SERIES 1987, IN THE AGGEGATE PRINCIPAL AMOUNT OF $4,045,000; PROVIDING FOR THE LEVY OF GENERAL AD VALOREM TAXES TO THE EXTENT NECESSARY TO PAY THE PRINCIPAL OF AND INTEREST ON THE BONDS; PROVIDING DETAILS CONCERNING THE BONDS AND FUNDS APPERTAINING THERETO; RATIFYING ACTION PREVIOUSLY TAKEN CONCERNING SAID BONDS; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. Stan Bernstein, Financial Consultant for Avon, approached the Council. He stated that they thought it would be in the best interest of the Town to take the savings of the refunding of the bonds, this year, 1987, in the amount of $66,000, and in 1988, $52,000, and to use those monies for Capital Improvements. He stated that the Official Statement reflected that structure. • 0 He stated that in the last week, the Bond Market had dropped and possibly those figures would not hold true. The Town Manager stated that when the bonds go to market next Wednesday, he would have to have authorization from the Council to proceed on a certain saving scenerio. Mr. Bernstein then reviewed the official Statement with the Council. Dee Wisor,Sherman and Howard Bond Counsel, approached the Council. Mr. Wisor stated that there were six documents to be reviewed, which were as follows: 1. Bond Ordinance 2. Acquisition Escrow Agreement 3. Refunding Escrow Agreement 4. Registrar Agreement 5. Bond Purchase Agreement 6. Official Statement He stated that the Bond Ordinance approves the other five documents in the form as presented to the Council, with such changes as the Mayor and the Town Manager found needed. Mr. Wisor then reviewed the Bond Ordinance with the Council. He stated that the Bond Ordinance contemplates the two projects that are going to be accomplished, which were; 1) The refinancing of both of the outstanding General Obligation Bond Issues(1980 and 1983); 2) The acquisition of the parking facility for the shopping center. He stated that the interest rates would be filled in on second reading amendment of the ordinance after Boettcher and Company has marketed the bonds, and has a firm interest rate to provide. He stated that the Acquisition Escrow Agreement was still in negotiations with the United Bank of Denver to be the Escrow Agent, and the Town agreed to deposit $1,650,000.00. The Town would.be entitled to direct the Agent to invest those monies. He stated that the Developer agreed that after the Plat had been finalized, they would then deposit, with the Escrow Agent, a General Warranty Deed conveying the Tract A to the Town, free and clear. There would be a Maintenance Agreement between the Developer and the Town of Avon for the parking facility for the shopping center. That Agreement was in regarding to snow removal, painting of parking lines, etc. The Agreement was still in the drafting stages. Mr. Wisor stated that on December 1, 1987, on the issuance of a temporary Certifiacte of Occupancy, the Escrow Agent would disperse the Deed to the Town on the receipt of a Title Policy, and would disperse one half of the money to the developer, and then when the Wal-Mart store opened, the Escrow Agent would then deliver the other half of the money to the developers. -2- • • Mr. Wisor stated that if the Town excerised the option to redeem the bonds because the project was not preceeding in accordance with the time schedule that the Town did not find appropriate, this agreement then would terminate monies paid back to the Town. The Bond Purchase Agreement would be executed by Boettcher and Company at second reading with interest rates and final terms of the Issue. Councilman Miller moved approval of ordinance No. 87-8, Series of 1987, on first reading as presented. The motion was seconded by Councilwoman Harrison. Those Councilmembers voting aye were: Emilie Harrison, Steve Miller, Clint Watkins, Al Connell and Jerry Davis. There were no nay votes. The motion was unanimously carried. First reading of Ordinance No. 87-10, Series of 1987, AN ORDINANCE- AMENDING CHAPTER 3.32 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS IT RELATES TO THE TAX ON THE USE OF TIME-SHARE UNITS AND PROVIDING PENALTIES FOR THE VIOLATION THEREOF. The Town Attorney stated that the ordinance follows up on the discussion of the last meeting in respect to the bus service to Christie Lodge and the apparent inability of Christie Lodge to collect the Time-Share use taxes that they were obligated to collect. After discussion the Town Attorney recommended that Council adopt the ordinance on first reading with an increase on the use taxes. Councilman Watkins moved approval to adopt Ordinance No. 87-10, Series of 1987 on first reading with the insertion of "$15.00" per unit per week per year on the use of any time-share unit. The motion was seconded by Councilman Davis. Those Councilmembers voting aye were: Emilie Harrison, Steve Miller, Clint Watkins, Al Connell and Jerry Davis. There were no nay votes. The motion was unanimously carried. The Town Attorney report was next on the agenda. Mr. Dunn reported on the International Surplus Lines Insurance Company. He stated that the insurance company had a current obligation to the Town in the amount of $23,296.60 to reimburse attorney's fees. He stated that that payment, hopefully, would be made shortly. He stated that on the other hand, the Order of the Court was that the attorney's fees and cost incurred through September, 1985 in the Civil Action No. 84CV492 was in the amount of $13,554.00. In addition to that, the insurance company's liability beyond that was $20,000. Mr. Dunn reviewed the history of the case. Mr. Dunn reported on the Peregrine Project Litigation. He stated that he had received the Trial Date for the Magnet Bank. It was set for April 23, 1987. He stated that Magnet Bank was claiming one million dollars to preserve the assest(the building), and felt they had priority over the Town's lien on the basis of the million dollars which they have claimed they spent to keep the building together. The town's lien is superior to all costs that have occured. He stated that he was filing another Motion for Summary Judgement, this Motion was set for May 4, 1987. -3- • • The Town Attorney reported on Avon Center. He stated that Western Gulf and their participating Lender want to get the project back on track with the Town of Avon. The contract bus service was next presented to the Council. Mr. James stated that Beaver Creek Transit has a contract with the Town of Avon to operate its buses. He stated that Beaver Creek Transit was anticipating of going with a private carrier to contract with that carrier. Mr. James stated that if the Town does not contract, then Avon would have to come up with another mechanism that the Town would operate the service itself, which would not feasible. Bob MC.ILveen:- stated that the Transit System was trying to save money. He stated that they have talked to Lee Metcafe of Eagle County, and have agreed to discuss the possibility that the County look into help funding the service. He felt that the County should get involved. He stated that at the present time, Resort Express and Beaver Creek Transit have signed a Letter of Intent to do a one year's management agreement,to see how it would work. He stated that they were trying to get this matter turned over by the first of May. It was stated that Beaver Creek Transit would stipulate the level of service. Ron Taufen, with Resort Express, approached the Council. He stated that they had forty six vehicles that they had operated this year, and had 152 employees. They have operated the Summit Stage Coach in Dillon, Colorado for two years. There was no action taken on this matter The Mayor thanked the gentlemen for their comments. Councilman Miller moved to receive the Audit Report and the correspondent Management letter for 1986. The motion was seconded by Councilwoman Harrison and was unanimously carried. Councilman Miller moved approval of the Proclamation in respect to ABC- Always Buy Colorado. The motion was seconded by Councilman Watkins and was unanimously carried. This Proclamation was requested to be ratified by the Council. The Council so agreed. Councilman Miller moved approval of the Proclamation in respect to the National Consumers Week-1987. The motion was seconded by Councilwoman Harrison and was unanimously carried. -4- • The next item on the agenda was the discussion of the Nottingham Station proposed Subdivision. Norm Wood stated that going into the Final Plat of the project, the applicant has had some problems with some of the matters that were required within the subidivison regulations and was requesting consideration of certain types of variances. There were four items that the applicant was requesting that Council take into consideration. They were as follows: 1. That Council not require the burial of existing onsite overhead electrical power tranmission lines; 2. That Council not require collateral for the improvements guarantee prior to actual construction; 3. That Council not require immediate inclusion into the Avon Metropolitan District; 4. That Council allow a reasonable period of time with renewal provisions for existance of the 25 foot wide construction easement on Lot 1. After lengthy discussion, Councilman Davis moved on item #1, that Council would go along with the relocation of the overhead power lines, as long as, it would be worded in the Subdivision Agreement. That the existing overhead lines be buried as part of the development of those lots. Item #2, Council agreed that the collateral not be required by the applicant. Item #3, Council did not comment on this matter because they felt it was a Avon Metropolitan District matter. Item #4, Council denied the request of this item for the fact that Council believes that the 25 foot construction easement was necessary until !.a resolution of a underpass or an overpass was completed. The motion was seconded by Councilman Watkins. Mr. Blair stated that the applicant may not agree with the decision of the Council, and may not choose to annex his property. He stated that in the event that should happen, would there be any way they could work out an access to that property. Mr. Blair stated that he would leave the Council with that question. The Town Manager stated that the Town has requlations, and at some point of time, somebody has to meet those regulations and meet the concerns of the community. The Mayor called for a vote on the motion. The motion was carried with Councilman Miller opposing. Norm Wood discussed the Homestak.e II-1041. He stated that they were trying to keep up with all the reading and paper work on this issue. He stated that they have been working with the Town of Vail, all the water and sanitation districts, VA, Town of Minturn, and the Town of Red Cliff. He felt that they were :making progress. One of the matters that came up in reviewing the application was the Recreation and Economic impacts. It appeared that it was very weak and very poorly done. He stated that they have had a proposal from on the firms in Denver who were fimilar with this area,to review the study and provide the Town with input and possibly be an expert witness during the public hearing. He stated that the proposal was estimated at $4,000, which included one day of expert testimony. He stated that they have tentative ' commitments from Avon Metropolitan District, Regional Water Authority, Town of Vail, and VA to participate in the cost of this study. Mr. Wood -5- • • was requesting that the Council fund up to $1,000 to go toward the study. He also requested that the Town's attorney attend the public hearing when the Town makes their presentation, which would be a total of fourteen hours. After discussion Councilman Miller moved to authorize the $1,000 expenditure, as well as, to allow the presence of the Town's attorney for the two days that was described. The motion was seconded by Councilwoman Harrison and was unanimously carried. Mr. Wood pointed out that all exhibits had to be in by the next Monday morning, April 20, 1987. The Town Manager reported on the Strategic Planning sessions. He stated that he and the Mayor had met with the County Commissioners and outlined the program on the strategic planning, and they were preceiving to meet with other groups, such as, the previous Council, which would meet on April 24, 1987 to discuss strategic issues and goals for the Town. Mr. James stated that possibly on May 1, 1987, they could have a meeting with the various groups. Mr. James requested that the Council schedule a work session on April 23, 1987 to meet with a futurist at 4:30 p.m. The Mayor suggested that possibly change that work session because of the public hearings on the 1041. The Town Manager recommended that the Council then meet with the futurist on the first meeting in May. The Council agreed. The Council agreed to proceed with the 4th of July event. Mr. James stated that he met with Heritage Cablevision in regard to cablevision service for the Wildridge Subdivision area. He stated that with the Council approval, he could work with the cable company on a cost recovery contract, and work out some plan if Heritage was willing to work with the Town. After discussions, Heritage turned down the offer. Mr. James stated that there was another option, and that was that the homeowners bring in their own system and start a Special District. No action was taken. Councilman Miller moved that an extension of time be granted on the Final Plat filing and recording for the Eagle Bend Subdivision at the request of the developers. The time would not exceed May 1, 1987. The motion was seconded by Councilman Connell and was unanimously carried. -6- C~ • Councilman Miller moved that an extension of time be granted on the Final Plat filing and recording for the Yacht Club at the request of the Developer. The time would not exceed June 9, 1987. The motion was seconded by Councilman Connell and was unanimously carried. The Mayor reported on the special request Action Call. He stated that Colorado Municipal League was opposing Senate Bill 45, and was requesting that the cities and the town's oppose it also. The Bill could effect annexations in the future. The Mayor asked that the Council review the material and give him their comments. Financial Matters were next presented to the Council. Councilman Miller moved to receive items #1 through #8. The motion was seconded by Councilwoman Harrison and was unanimously carried. Councilman Miller moved approval of the General Fund of Accounts Payable for April 14, 1987. The motion was seconded by Councilwoman Harrison and was unanimously carried. Councilman Watkins moved approval of the Transit Fund of Accounts Payable for April 14, 1987. The motion was seconded by Councilman Miller and was unanimously carried. Councilman Miller moved approval of the Reconciliation Sheet of Accounts Payable for April 14, 1987. The motion was seconded by Councilwoman Harrison and was unanimously carried. The minutes of the March 24, 1987 Council Meeting was next presented to the Council. Councilman Miller moved approval of the March 24th Council Meeting Minutes as presented. The motion was seconded by Councilwoman Harrison and was unanimously carried. The Town Manager requested that the Council read the Appeal on the decision notes for the Avon/Frisco Land Exchange. It was given on the last day of the Wild Life Federation Appeal. He stated that he, Tom Glass and Bill Andre were to meet with the Wild Life Federation on Thursday, April 16,1987, along with Jim Ruch, who is head of the Wild Life Division of Colorado. -7- r 0 There being no further business to come before the Council, Councilman Miller moved to adjourn. The motion was seconded by Councilman Watkins. The meeting was adjourned by Mayor Nottingham at 10:52 p.m. LY SUBMITTED atricia J. Do;VAe, ToWn C/ler -8- APPROVED: