TC Minutes 04-28-1987MINUTES OF THE REGULAR AVON TOWN COUNCIL
MEETING HELD APRIL 28, 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 7:42 p.m.
A roll call was taken with Emilie Harrison, Clint Watkins, Gloria
McRory, Al Connell and Jerry Davis present. Councilman Steve Miller
arrived at 8:00 p.m. 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.
David MacIlveen, resident and businessman of the valley, approached
the Council. Mr. MacIlveen discussed softball fields. He was
requesting that a study be done to see if part of Tract P and Tract G
could be utilized for softball. He stated that possibly bring the
current ball field up to standard so that it could be used for ball
playing this year for men, women, co-ed, Little League, and T-Ball.
He felt that there was a need. Mr. MacIlveen suggested initiating a
committee to study the issue, and he, for one, would volunteer
his time. He felt it would encourage growth for the community if such
activities were available for children, as well as, adults.
Patricia Watkins, resident and parent, approached the Council.
She felt that it was a much needed activity for the community. She
felt that there was enough people to be involved throughout the valley
that these kinds of activities were needed. She felt it was very
much needed for the children in the area. She stated that she too,
would volunteer her time for a committee if the Town Council would
give them the go ahead. She suggested that possibly have one member
of the town staff as a committee member to that person could contribute
information and much needed input. She stated that they were
willing to go out and ask for donations for time, equipment, whatever
it took to get this issue together. She stated that they need the
town's support.
Greg Miller, business owner and parent, approached the Council.
He discussed the youth baseball program. He stated that last year there
were 129 children participating in the program. He stated that out
of those 129 children, 55% came from the "949" area.
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Mr. Miller discussed the problems that they have in regard to Maloit
Park. Larry Brooks stated that the status of the present ball field
was that, twice a week the public works crew drags the field, and have
put new bases in. He stated that it was poorly graded and that the
drainage was very poor. Mr. Brooks stated that monies were not
budgeted this year to repair the field..
Mr. Brooks stated that he thought that $48,000 would cover two fields
in that area to get them up to playing standards. For a basic
playing field, he thought that $5,000 would take care of the drainage
and the regrading of that one field in Tract P.
Councilman Davis stated that he would support the study, but felt
it should be broader than just the fields in Avon, possibly should be
incorporated with what the County was doing.
After further discussion, Councilman Watkins moved to authorize the
committee of David MacIlveen, Patricia Watkins, and Greg Miller, and
to have the Town Manager appoint a staff member to serve on that
committee. The motion was seconded by Councilwoman McRory and
was unanimously carried.
Second 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 AGGREGATE PRINCIPLE
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.
This was a public hearing.
The Town Manager stated that there were some changes of adjustments
made to the ordinance over the last two weeks. He stated that
they were not going ahead with the refunding, so the amount of the
Bond Issue would now be in the amount of $2,040,000.00. The bonds
would be dated as of May 15, 1987, and the closing date would be
around June 2, 1987. He stated that originally in the Bond Issue,
there was a $60,000 reimbursement for the Town's expenses in develop-
ing consulting fees, and legal fees that have occurred over the
last 18 to 24 months. Mr. James stated that has been reduced by
$10,000. He stated that the Town's participation in buying the
public parking was now $1,601,000.00. He stated that this was be-
cause during a certain period of time there was interest earned,
which was now to be deducted from the total amount.
Mr. James stated that the bonds were insured for $33,000, a discount
payable to Boettcher and Company of $51,000, and cost of issuance
in the amount of $89,000.
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Mr. James stated that when the Bond Ordinance becomes adopted on
second reading, the Council would be approving, along with the
ordinance, the Registrar Agreement, the Acquisition Escrow Agreement,
the Bond Purchase Agreement, and the Official Statement. He stated
that one action would approve all of those documents.
He stated that the only document that was not included in those
documents was the Exhibit to the Escrow Agreement, which was the
Maintenance Agreement of Tract A. This would follow.
Linda Clark with Boettcher and Company, approached the Council.
Mrs. Clark discussed the interest rates and the process of the
bonding procedure. She stated that Capitol Guarantee Insurance
Company was insuring the bonds. They were triple A rated by S&P.
The Mayor then entertained a motion.
Councilman Miller moved approval of ordinance No. 87-8, Series of
1987 on second reading. The motion was seconded by Councilwoman
Harrison.
The Mayor then opened the meeting for public hearing.
Ken Sortland, resident and contractor of the area, approached the
Council. He stated that this project would hopefully bring in some
revenue to the Town and also jobs. He had hoped that there were
some safeguards for the Town that if the funding did not go through,
the Town would be protected. He stated that the Town Manager
confirmed that those concerns were safeguarded, but also stated that
there are risks in everything.
Mr. Sortland also stated that he would encourage the developer to
use local contractors to help on the project.
The Town Manager again, reviewed the Developers Agreement with the
Council and the public in regard to the safeguards of the Town.
Steve Szymanski of Palmer Development, approached the Council.
He stated that they felt that the project was going to work, and that
they were proceeding forward, that they would take the risk of
$135,000.
There being no further discussion, the Mayor closed the public hearing.
The Mayor called for a roll call on the motion.
Those Councilmembers voting aye were Emilie Harrison, Steve Miller,
Clint Watkins, Gloria McRory, Al Connell and Jerry Davis. There were
no nay votes. The motion was unanimously carried.
Second 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.
This was a public hearing.
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The Town Attorney stated that there was some discussion at the last
meeting of submitting this ordinance to the Council for second
reading pending discussion with the representatives that would be
responsible for payment of the increased fee. Mr. Dunn recommended
that the matter be brought up for public hearing for any comment
by representatives of Christie Lodge. He felt that tabling the
ordinance would be in order for the fact that the figure established
in the ordinance was one of a figure to start discussions.
Councilman Watkins moved approval of Ordinance No. 87-10, Series of
1987 on second reading. The motion was seconded by Councilman Connell.
the Mayor opened the meeting for public hearing. There being no
one wishing to be heard, the Mayor closed the public hearing.
Councilman Miller moved to table Ordinance No. 87-10, Series of
1987. The motion was seconded by Councilman Connell and was unanimously
carried.
First reading of Ordinance No. 87-11, Series of 1987, AN ORDINANCE
CONCERNING TOWN OF AVON, COLORADO, THE TOWN CENTER MALL IMPROVEMENT
DISTRICT; CONFIRMING A NEW ASSESSMENT ROLL TO'`INCLUDE WITHIN SAID
DISTRICT A CERTAIN TRACT OMITTED THEREFROM; ASSESSING THE COSTS
OF THE MALL AND PARK IMPROVEMENTS THEREIN AGAINST SAID OMITTED
TRACT; AND PROVIDING OTHER DETAILS IN CONNECTION THEREWITH.
The Town Attorney stated that this was a public hearing on the
report of the Engineer and Assessment Roll. He stated that by an
Order entered on March 18, 1987, District Judge Jones found that the
property description by which Avon Center was included as part of the
Town Center Mall Special Improvement District was erroneous, and
therefore that particular property was in fact, not included within
the District, and not subject to the lien for the Assessment which
was levied. He stated that five weeks ago, in response to that
decision, a resolution (87-9) was adopted on March 24, 1987, which gave
legal notice that on April 28, 1987 at 7:30 p.m. the Town Engineer
would report to the Council the amount of which would be borne by the
Tract determined by the District Court to have been omitted from the
assessment and to make a new assessment roll in an equitable manner
with reference to the benefits received. A certified copy was mailed
to the owner of the property, which was called, Avon Center.
Mr. Dunn stated that the Council had before them a proposed ordinance
which would be adopted on first reading and then second reading would
be held two weeks from now. Mr. Dunn stated that the hearing on the
assessment was being held at the present time.
Norm Wood, Engineer for the Town of Avon, approached the Council.
He stated that a Mall Agreement was approved on April 16, 1981. The
Mall includes the -eastern end of Tract G, which is a narrow strip
that runs between the Avon Center property, and the Peregrine Project.
It is also boardered by Lots 61 and 56. The Mall varies from 50 feet
wide, and encompasses the detention pond and the tennis court.
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The original Mall Agreement established a cost of the Mall of $600,000,
and also allocated costs between the various properties along
the Mall to establish a method of assessing.
Following the original Mall Agreement there was a First Amendment to
the Mall Agreement. That Amendment revised the planning and construction
cost to $1,136,000. He stated of that amount, $226,000 was to come
from the Town of Avon and $910,000 from the land owners adjacent
to the Mall. The First Amendment also provided for Special
Assessment Bonds to provide for the portion of the private financing
for that part of the project.
He stated that Ordinance No. 81-26 created the Town Center Mall
Improvement District and provided the levying of the assessements for
the cost of the Mall Improvements and also provided that the land
owners have the option of either making semi-annual payments-70r,
pay the initial assessment. He stated that in addition to that, the
mall assessments were to be made by commerical properties if it was
a mixed use project, which was covered in paragraph 4, in the Mall
Agreement. He stated that in the Avon Center Declarations it provided
that the mall payments--We-re--limited.-.to the commercial limited-common
elements by way of responsibility for the mall assessment.
He stated that Avon Center made._,a total of four payments on the
original assessment of $456,820, which was based upon total
mall boundary for the purposes of assessment of 1973.92 feet with Avon
Center having the frontage on the mall of 991.59 feet, or 50.20.
The total assessment or responsibility of the Avon Center property
was 50.20 of the total of $910,000 for $456,820. Of that $456,820,
four payment were made for a total of $114,205 on the principal,
leaving a balance due of $342,615 at the stipulated interest rate of
13.25% and from the date that this amount first became past due, a
total interest has accrued of $71,515.02 for a total balance due
today of, $414,130.02.
Councilman Miller moved approval of Ordinance No. 87-11, Series of
1987 on first reading. The motion was seconded by Councilman Davis.
The Mayor noted as per the Town Attorney that the meeting would be
open for public hearing on the Assessment Roll.
Daniel Frost, Attorney representing Western Gulf Savings and Loan
Association, approached the Council. Also with Mr. Frost was Mr. Jim
Lindsey, a consultant for Western Gulf. Mr. Lindsey was representing
the other participants in the loan, which was being foreclosed.
Mr. Frost and Mr. Lindsey were requesting that Council not adopt
Ordinance No. 87-11. He stated that Western Gulf felt very strong
about this matter and were prepared to contest. He stated that they
were before the Council in the spirit of cooperation and good faith.
He stated that Western Gulf had already picked up a tremendous burden
when they took over the property. He stated that when the budgeted
amounts were paid, Western Gulf and its participants would be putting
in over $800,000 into the property.
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He stated that this reassessment would be an additional burden that
would be too much for Western Gulf to bear.
Mr. Frost stated that Western Gulf felt that the assessment was
something that occurred after the fact.
He stated that Western Gulf was not aware of the assessment when they
made the loan. They felt that it was unfair that after the loan was
made, after it was disbursed, after the loan did not materialize, that
they then learned of this assessment and a pick up of an excess of
$300,000 liability that they were not aware of. They felt it was not
fair. They also felt it was unfair to reassess the property when an
Appeal from the previous assessment was still pending.
They felt that the value to the property of the pedestrian mall was
not in the $400,000 range as it had been assessed.
He stated that he had in his possession, an appraisal which indicated
the property of Avon Center, today, was worth a little more than
three and a half million dollars, which was substantially lower than the
value that was attributed to this property at the time of the assessment.
He then presented the Town Attorney with a Written Objection, which
detailed how they felt about the proposed ordinance.
Mr. Lindsey stated that the appraisal that was done, was on the two
commercial floors; the retail and office floor and the vacant land.
Councilman Davis stated that it would appear that the property would
become a lot more valuable to someone purchasing it, if there was an
ongoing mall situation, that they would be able to develop the
remainder of that property and provide the kind of quality, that
someone purchasing the property would want. He stated that he would
like to hear some other alternatives. Mr. Lindsey stated that
Western Gulf would no longer be the lead lender after April 29th.
He stated that Western Gulf would be participating, but would not be the
lead participant. He stated that the property would be cleaned up,
the incomplete construction would be finished, and adequate parkifig
would be brought to the property.
Discussion followed.
Mr. Frost recommended that the ordinance be tabled, and that they be
able to return to the Council in a week or two with the concrete
proposals about how the Town and the Avon Center could make the best
of a bad situation. Councilman Miller stated that he was not
sympathetic to tabling the ordinance on first reading based on the
testimony of Mr. Frost and Mr. Lindsey stating that, they did not
know of the assessment. He stated that he was ready to take action
on the ordinance.
Councilman Connell stated that he was willing to give them two weeks.
Councilman Watkins stated that he agreed, but so far the Council had
not seen any indication of a willingness that they would return
with a payment plan.
Councilman Davis agreed with Mr. Connell if, they would return in two
weeks with a concrete proposal.
Councilman Connell moved to table p>r:dinanc.e. No. 87-11, Series of 1987
until the next regular meeting. The motion was seconded by Councilman
Davis.
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The Town Attorney stated that he requested that he wanted placed in
the record, three exhibits in regard to the Assessment Roll and the
Ordinance, which were:
1. The Condominium Declaration of Avon Center at Beaver Creek I;
2. The Mall Agreement dated April 16, 1981;
3. The First Amendment to the Mall Ageement dated September 8,
1981.
A copy of these documents would be placed in the Council's packets for
their information.
The Mayor called for a motion to table. The vote on the motion
was Councilmen Davis and Connell voting in favor. Councilmembers
Harrison, Watkins, Miller, McRory opposed. The motion died.
The Mayor called for a roll call on the original motion.
Those Councilmembers voting aye were: Gloria McRory, Steve Miller, Clint
Watkins, Emilie Harrison. Those Councilmembers voting nay were:
Jerry Davis and Al Connell. The Ordinance passed on first reading,
public hearing and,second reading would be heard in two weeks.
Resolution No. 87-10, Series of 1987, A RESOLUTION APPROVING FINAL
PLAT OF MOUNTAIN CENTER, A RESUBDIVISION OF LOTS 26 AND 27, BLOCK 1,
TOWN OF AVON, EAGLE COUNTY, COLORADO, AND FINAL SUBDIVISION PLAT
AMENDMENT NO. 4, BENCHMARK AT BEAVER CREEK.
Norm Wood stated that Vail Building Arts Association and Colorow
Squaw Creek submitted a Final Plat for Mountain Center. The Plat
vacates the common lot line and utility easement between Lots 26 and
27, Block 1. He stated that the town staff reviewed the information
and found it to be in general conformance with the Town's Subdivision
Regulations. Mr. Wood recommended that Resolution No. 87-10 be
approved subject to amending the #1 condition, that the letter from
Holy Cross Electric Association agreeing to the vacation of the utility
easements be deleted, and to insert that a letter from Upper Eagle
Valley Sanitat Qn:-. District was needed instead;
#2, that the completion and execution of all certificates in a manner
satisfactory to the Town Attorney prior to filing with the Clerk and
Recorder of Eagle County.
Councilman Miller moved approval of Resolution No. 87-10, Series of
1987 with the amendment to condition #1 be made. The motion was
seconded by Councilwoman Harrison and was unanimously carried.
The Town Attorney requested that the Council refer back to ordinance
No. 87-11 for reconsideration for the purpose of two amendments to the
ordinance. He stated that there was a substantial difference between
Ordinance No. 87-11 and the report of the engineer as to the amount
of the assessment. He stated that the total assessment be changed to
"$414,130.02". He stated that there was also an error in the description
that Avon Center was using in their Deeds. He stated that according
to the Plat on file at the town, Condominium Unit "1112/1113" was to
be changed to "1113".
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The Town Attorney recommended that Council move to reconsider the
adoption of the ordinance, then Council move to amend the amount
of the assessment in the ordinance and change the description, then
move to re-adopt the ordinance on first reading.
Councilman Watkins moved to reconsider Ordinance No. 87-11. The motion
was seconded by Councilman Miller and was carried with Councilman
Connell opposing.
Councilman Miller moved to amend the ordinance by changing the amount
of the assessment to "$414,130.02", and to change the description
from Condominium Unit "1112/1113", to "1113". The motion was seconded
by Councilman Watkins. A roll call was taken and was unanimously
carried.
It was stated that the Town Attorney was to redraft the ordinance
for posting, and to forward a revised copy to Mr. Frost.
Councilman Miller moved approval of the adoption of Ordinance No.
87-11, Series of 1987 on first reading. The motion was seconded
by Councilwoman McRory. A roll call was taken with Emilie Harrison,
Steve Miller, Clint Watkins, Gloria McRory and Jerry Davis voting aye.
Councilman Connell voted nay. The motion carried to adopt Ordinance
No. 87-11 on first reading by a 5 to 1 vote.
The Town Attorney reported on the PPL Litigation. He stated that a
Chapter Eleven Petition was filed two weeks ago in Bankruptcy Court.
He stated that it was filed the day before the scheduled Public
Trustee Sale was to occur. He stated that he has been in contact with
the attorneys for Magnet Bank. Magnet Bank was first to file in
Bankruptcy Court for the relief of Automatic Stay, and the Town has
filed a similar Motion.
Mr. Dunn stated that the Motion filed was requesting that the Stay
be lifted, and to proceed with the Foreclosure Assessment on the
grounds, that the Town's ability to pay its bonds off would be impaired
by the effect of the bankruptcy laws.
The hearing for the Bankruptcy Court was set for May 14, 1987. He
stated that at that hearing, the Town had to show what the property
was worth, and that would be done by an appraisal of the property.
He stated that the total figure for that project was around Thirty
Million dollars, but the appraisal would probably show around Ten
Million dollars.
Discussion followed.
Council was not comfortable with the Town spending money for an
appraisal and felt it was the obligation of the other party involved.
The Town Attorney stated that he could not rely on Magnet Bank having
an appraisal done on the project, he stated that the Town had to have
its own appraisal done.
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Councilman Miller moved approval of participation of an appraisal,
and also to have Jack Schroeder of Van Scoonerveld and Associates
to participate in the hearing, and to approve such expenses that may
occur as necessary for expert witnesses in connection with the
bankruptcy hearing. The motion was seconded by Councilman Watkins
and was unanimously carried.
Next on the agenda was the appointments of four, out of fourteen
applicants, to sit on the Planning and Zoning Commission Board.
The Council voted by closed ballots. After a second count, because
of a mis-count and a tie between two of the applicants, Councilman
Miller moved to appoint the following to two year terms:
Pat Cuny, Mark Donaldson, Tom Landauer; re-appointments, and Frank
Doll was a new member.
The motion was seconded by Councilman Davis and was unanimously
carried.
Councilman Connell moved that a resolution be drafted in appreciation
of Jeffrey Maddox for his services to the Planning and Zoning Commission
Board, and that letters be sent to the other applicants.
The motion was seconded by Councilman Davis and was unanimously
carried.
The next item on the agenda was discussion of an Editorial that
appeared in the Avon/Beaver Creek Times in regard to fishing in
Nottingham Lake. The Town Manager stated that Cliff Thompson wrote
an article in respect to possibly putting some restrictions on fishing
in Nottingham Lake, possibly use lures and flies only, and to
possibly set some guidelines. He stated that they have not had a chance
to review this matter with Bill Andre, who was responsible for stocking
the lake. He stated that they may have some concerns.
Councilman Davis stated that he was not totally in favor of limiting
it all together, but was not opposed to consider it either.
Mrs. Mark Donaldson stated that the lake and park was a family oriented,
and to have restrictions for fishing in Nottingham Lake would deprive
the children of having the thrill of catching fish out of that lake.
She was not in favor of the restrictions.
The Mayor agreed that you cannot deprive the children of fishing.
No action was taken.
Next on the agenda was a report on the 1041 hearings.
Norm Wood reviewed the hearings with the Council. He stated that they
have recessed the hearings until May 14th and 15th, 1987. At that time,
hopefully, the Town would be heard. The Mayor suggested that the Town
take a position on this issue. It was suggested to draft a resolution
to show the Town's opposition to the 1041.
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Next was the report on the Avon/Frisco Land Exchange. Mr. James
reported that he had met with the Colorado Wildlife Division and the
Regional Wildlife Division on April 16, 1987. He stated that he has
had further discussions with Tom Glass. Mr. James stated, other than
any further direction from the Town Council, he felt the solution
to their problems were between the developer and Western Land Exchange.
If they want to deal with development on six acres, they should resolve
those issues between themselves, and then at the time they request
zoning with the Council, the developer should come in to request
specific zoning with those limitations, and that the Town Council
would consider those at that time.
No action was taken.
Contracting out Bus Service was next reported to the Council.
Mr. James stated he had reviewed a Letter of Intent that Vail
Associates had given Resort Express. He stated that the Town would
probably have a similar Letter of Intent presented to the Council at
the next meeting.
No action was taken.
Councilman Davis moved approval of extension of time for filing Final
Plat for Eagle Bend Subdivision requested by Jeff Spanel. The
extension was for an additional sixty days. The motion was seconded
by Councilman Miller and was unanimously carried.
The Mayor stated that he would be absent for the next Council Meeting,
but would return for the May 26th meeting.
The Financial Matters were next presented to the Council.
Councilman Miller moved approval of the Cosgriff, Dunn and Abplanalp
bill. The motion was seconded by Councilman Connell and was unanimously
carried.
Councilman Miller moved approval of
for April 28, 1987. The motion was
and was unanimously carried.
the General Fund of Accounts Payable
seconded by Councilman Connell
Councilman Miller moved approval of
for April 28, 1987. The motion was
and was unanimously carried.
the Transit Fund of Accounts Payable
seconded by Councilwoman Harrison
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Councilman Miller moved approval of the Reconiliation Sheet of
Accounts Payable for April 28, 1987. The motion was seconded by
Councilwoman Harrison and was unanimously carried.
The minutes of the April 14, 1987 Council Meeting was next presented to
the Council. Councilman Miller moved approval of the April 14th meeting
as presented. The motion was seconded by Councilman Connell and was
unanimously carried.
Councilman Miller congratulated Larry Brooks and staff on a very
well organized Easter Egg Hunt.
Councilman Watkins stated that he would like to form a committee to
look into the possibility of Charter Amendments to be included in the
next election. He asked if anyone would like to sit on that committee.
There being no one, Councilman Watkins stated he would start on the
research, and would entertain any input from the Councilmembers.
Councilman Miller stated that in regard to the Mountain Man Triathlon
Summer proposal, that Ted Martin should appear before the Council in
a form of proposing the date of possibly July 12, 1988. Councilman
Miller felt it was too short of time of putting all these events
in any kind of proper order in such a short time. Councilman Connell
agreed, and felt it should be discussed in a meeting.
Mr. James stated that in regard to the softball fields.
ball field could be ready for this summer as to, T-Ball
League. Mr. Brooks stated that the one field was ready
drainage problem. It was the consensus of the Council
The Council would like one good playing field for this
the committee worry about the scheduling, but the Town
assistance if time allowed. More time should be taken
locations. The Council agreed.
He asked if the
and Little
except for the
to go ahead.
year, and let
would give
with other
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There being no
Watkins moved
Connell. The
APPROVED:
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further business to come before the Council, Councilman
to adjourn. The motion was seconded by Councilman
meeting was adjourned by Mayor Nottingham at 10:20 p.m.
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