TC Minutes 07-28-1987•
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MINUTES OF THE REGULAR AVON TOWN COUNCIL
MEETING HELD JULY 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 7:30 p.m.
A roll call was taken with Emilie Harrison, Steve Miller, Clint
Watkins, Gloria McRory, Al Connell and Jerry Davis present. Also
present were Attorney Allen Christensen, substituting for Town Attorney
John Dunn, Town Manager Bill James, Director of Engineering/Community
Development Norm Wood, Planning Consultant Jim Lamont, Police Chief
Joe Olson, as well as, members of the press and public.
The Mayor called for Citizen Input. There being no dne wishing to be
heard, the Mayor closed the discussion:.:
Second reading of Ordinance No. 87-16, Series of 1987, AN ORDINANCE
AMENDING THE MUNICIPAL CODE OF THE TOWN OF AVON TO INCREASE THE
AMOUNT OF THE TIME-SHARE'UNIT TRANSFER TAX.
The Town Manager was recommending that the Time-share Transfer Tax be
increased from a 1/2% to 1% and that the money be designated for
Capital Improvements.
Councilman Miller moved approval of Ordinance No. 87-16, 1987 on second
reading. The motion was seconded by Councilwoman McRory.
The Mayor opened the meeting for public hearing.
David Lach, Realtor with Vacation Properties, approached the Council.
Mr. Lach introduced Ken Wilson, President of the Vail Valley Board of
Realtors. Mr. Wilson was to present the realtors position on.`.the
increase of the Time-Share Transfer Tax and the increase in the Real
Estate Transfer Tax.
Mr. Wilson stated that the members felt that the increase was an
infringement on property rights, and double taxation, which they were
not in favor of. He stated that hopefully, with some extra time, they
could offer some constructive ways to increase the revenues for Avon.
He stated that they were not defending themselves, but were"defending
the property rights of the owners of Avon. He stated that Brokers do not
pay the transfer tax, buyers and sellers do. He stated that they have
talked to a number of property owners, which were not in favor of the
increase, and felt that the majority of property owners have not had
ample notice of the increase. He felt that more time and input was needed
to inform the owners of property in Avon.
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Mr. Wilson stated that the real estate.-sales market was changing, and
felt it was the wrong time to increase these taxes. Mr. Wilson
requested that the ordinance be tabled so that more research could be
done at this time.
Charles Gersbach with Vail/Beaver Creek Resort Real Estate, approached
the Council.
He stated that the realtors do not have the magic solution to the
revenue problems in Avon. He stated that the Board of Realtors take?the
position nationally, that the realtors were working to protect property
rights. He stated that he was in favor of "For Sale" signs on property,
and "For Sale By Owner"signs on property.He felt by not allowing this
activity in Avon, was an infringement of property owners.
He stated that properties of value in<Beaver Creek were selling on the
average of 50% of what they were four years ago.
Mr. Gersbach stated that a 2% transfer tax would probably not curb
sales in Avon, but in the short term, would be an opportunity to help
with revenues for a while. Mr. Gersbach stated that if the Town uses
the increase as a solution rather than a plan, it would not work.
He stated that if the Council approves the 2% transfer tax, that there
be a limitation on the tax, and that there be a specific plan to where
that money would go. He also stated that the Town should increase
the 'awareness of Wildridge Subdivision. Mr. Gersbach felt that additional
thought needed to be given to the proposed tax increase.
Dave Lach once again approached the Council. He stated that Avon needed
to open up the business community, it needed clubs, theater, shops,
restaurants, etc. as to keep visitors in Avon.
At that point, the Mayor closed the public hearing and opened the
meeting for Council discussion.
Councilman Davis stated that Avon was an incorporated town, versus
Eagle-Vail and Berry Creek, and that the town has an abundance of
certain types of housing for the values now, did that mean that perspective
buyers would perceive Avon as a greater value and be willing to pay
the prices that were in Avon, also, the fact that Avon has the amenity
of the park, twenty four hour police service, roads plowed in the winter,
do people really look at those things when looking to buy, and does
the realtors sell those attributes.
Mr. Lach stated that the realtors sell what the buyer wants. If Avon
fits the description, that's what is sold, if Eagle-Vail fits their
description, the realtor sells that to the buyer.
Councilman Davis stated that he was concerned that with 235 realtors in
the area, what the perception of Avon really was. He stated that he
was not sure that the realtors were sold on Avon.
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Mr. Gersbach stated that the Council has to stop looking at Avon as a
Home Town. He stated that there was very few residential opportunities
around the park and lake area. He stated that Avon has a second home
product that was being negatively impacted by the declining prices
of Beaver Creek. He stated that, Wildridge, a first home market, did
not fulfull that need. He stated that the Council has to either change
the product or, go after a different clientele.
He stated that Christie Lodge, Falcon Pointe, Peregrine, Avon Center,
are -.not home town properties, that they were either vacation properties,
or week end properties, and week end properties was difficult to
compete with east Vail. Mr. Gersbach stated that Avon has to get
away from the thinking there was an attitude problem with the realtors.
He stated that a realtor has to listen to the customer.
Deed Restrictions were discussed and
look into that issue.
Councilman Davis stated that the Real
back if it was not proving feasible.
was stated that the Town should
Estate Transfer Tax could be changed
Councilman Watkins stated that these ordinances came before the Council
because of the financial situation, and the Town needed to raise more
capital. He stated he felt that the ordinances should be tabled so
that more thought could be put into them. He stated that if the Council
was going to pass an ordinance that a transfer tax was going to be
limited to Capital Improvements Fund, he felt there was no need to rush
the ordinances through because the Town had no Capital Improvements
Program as to what the money was going to be used for. Councilman Watkins
stated that possibly the ordinances could be sold to the populace on the
new taxes if they had a Capital Improvements Program layed out, and
that they would know where the money would be spent. He stated that on
the other hand, Council was passing the ordinances stating the the Town
was using the transfer tax money for major financial problems to get
the Town through 1987. He felt the public was not being told the truth.
He felt that when they are told the money was going to be used for one
thing, and the Town intended to use the money to meet objective short-
fall in revenue for this year.
Councilman Watkins stated that passing this ordinance on just two weeks,
the Council has not given ample notice to the public to let the people
know what was going on. He stated that he has not seen the kind of
publicity on these increases as he would like to see in.the local paper.
He stated that the importance of this kind of increase in taxes has not
been widely published, and also saw it as changing the rules, and was
concerned of people who were closing on real estate deals find themselves
with another to that was not taken into account. He felt it was not a
good comment on trying to get people to move into Avon. He stated he
didn't think Council should pass the two ordinances, the transfer tax and
the accommodation tax, stating that the Town was going to use the money
for Capital Improvements when it appeared that both would be tranferred
into the General Fund. Councilman Watkins stated that if the Council
does pass these ordinances, that they put an effective date, possibly
a date toward the end of the year, so that possibly it would stimulate
more sales for this year.
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Mr. James stated that with some of the comments that had been made,
he felt a need to review his presentation that was made earlier in the
work session, or he recommended that Council table the ordinances.
After discussion, Councilman Watkins moved to table Ordinance No.
87-16, Series of 1987 until the second meeting in August. The motion
died for a lack of a second.
Councilman Watkins amended Ordinance No. 87-16, Series of 1987 to have
an effective date of November 1, 1987. The motion was seconded by
Councilman Davis and was csrried with Councilman Miller and Councilwoman
McRory opposing. The Mayor called for a roll call on the main motion.
Those Councilmembers voting aye were Emilie Harrison, Clint Watkins,
Jerry Davis and Al Connell. Those Councilmembers voting nay,were
Councilman Miller and Councilwoman McRory. The motion carried by a
4 to 2 vote.
Second reading of Ordinance No. 87-17, Series of 1987, AN ORDINANCE
AMENDING THE MUNICIPAL'CODE OF THE TOWN OF AVON TO INCREASE THE AMOUNT
OF THE REAL ESTATE TRANSFER TAX.
The Town Manager was recommending that the tax be increased from 1% to
2% and that the use of the money be designated for Capital Improvements
in 1988, or any valid municipal purpose.
Councilman Miller moved approval of Ordinance No. 87-17, Series of 1987,
on second reading. The motion was seconded by Councilwoman Harrison.
Councilman Connell moved to amend Ordinance.No. 87-17, Series of 1987
to have an effective date of November 1, 1987. The motion was seconded
by Councilman Davis and was carried with Councilman Miller opposing.
Councilman Watkins moved to table Ordinance No. 87-17, Series of 1987
until the second meeting in August. The motion died due to a lack of
a second.
The Mayor opened the meeting for public hearing.
Dave Lach stated that the realtors were not against the 2% increase, but
that more thought should go into this matter.
Jim Potter, land owner in Avon approached the Council. Mr.Botter stated
that he was representing Grace White of the White Parcel,--and also
representing Helment Lilischkies, owner of Lot 61. He stated that both
parties were opposed to the 2% increase in the Real Estate Transfer Tax.
Jo Brown, with Vail Realtors approached the Council. She recommended
that the ordinance be tabled until more study could be done, and would
like to see more public input. She stated that she did not like to see
tax increase without public input, and felt it was an infringement on
property rights.
Councilman Watkins moved to table Ordinance No. 87-17, Series of 1987,
until the second meeting in August. The motion once again died due to
a lack of a second.
The Mayor called for a roll call. Those Councilmembers voting aye were
Gloria McRory, Steve Miller, Al Connell, Jerry Davis, and Emilie Harrison.
Those Councilmembers voting nay were Clint Watkins. The motion carried
by a 5 to 1. vote.
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First reading of Ordinance No. 87-18, Series of 1987, AN ORDINANCE
AMENDING THE MUNICIPAL CODE OF THE TOWN OF AVON TO INCREASE THE AMOUNT
OF THE ACCO14MODATION TAX.
The Town Manager recommended that the Accommodation Tax be increased
from 1.8% to 4% and that the money be designated for the Transportation
System.
Councilman Miller moved approval of Ordinance No. 87-18, Series of
1987 on first reading. The motion was seconded by Councilman Davis.
There was discussion in regard to visitors making their reservations
prior to this increase.
Councilman Davis suggested that the Council set an effective date
(November 1, 1987)and anyone making reservations after that date would
be charged the additional increase.
The Mayor called for a roll call. 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 carried
unanimously.
First reading of Ordinance No. 87-19, Series of 1987, AN ORDINANCE
AMENDING THE MUNICIPAL CODE OF THE TOWN OF AVON TO ALLOCATE REAL ESTATE
TRANSFER TAX TO PUBLIC IMPROVEMENTS FUND
The Town Manager stated that this ordinance would remove the limitation
of 50% of revenues of the Real Estate Transfer Tax being put into the
General Fund and 50% into the Public Improvement Fund.
Councilman Miller moved approval of Ordinance No. 87-19, Series of
1987 on first reading, and also to amend the ordinance to show an
effective date as of January 1, 1988. The motion was seconded by
Councilman Connell. Councilman Watkins moved approval to amend
Ordinance No. 87-19, that in the 7th line after the word,"improvements",
delete,"or upon determination of an emergency by majority vote of the
entire town council for any valid municipal purpose".
He stated the reason being that if it was effective January 1, 1988, that
those funds would still be able to transfer from the Real Estate Transfer
Tax Fund to the General Fund this year if it were needed, as the Town
is projected to have a short fall in revenue.
He stated that it was presented that it was not going to be used for that
purpose after 1988. The motion was seconded by Councilman Davis.
Those in favor of the amendment were Clint Watkins, Jerry Davis, Al
Connell. Those Councilmembers opposed were Steve Miller, Emilie Harrison,
Gloria McRory. Being there was a tie vote, the Mayor voted nay to the
motion. The motion was defeated by a 4 to 3 vote.
After discussion the Mayor called for a roll call on the main motion.
Those Councilmembers voting aye were Emilie Harrison, Steve Miller, Gloria
McRory, Al Connell and Jerry Davis. Those Councilmembers voting nay were
Clint Watkins. The motion carried by a 5 to 1 vote.
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Resolution No. 87-16, Series of 1987, A RESOLUTION APPROVING A FINAL
SUBDIVISION PLAT AND CONDOMINIUM MAP OF THE FALCON POINTE CONDOMINIUM,
LOT 45, BLOCK 2, TOWN OF AVON, EAGLE COUNTY- COLORADO,AND FINAL
SUBDIVISION PLAT AMENDMENT NO. 4 BENCHMARK AT BEAVER CREEK
Norm Wood stated that Pointes of Colorado had submitted a Final
Subdivision Plat and Condominium Map for Falcon Pointe Condominium,
Lot 45, Block 2, Benchmark at Beaver Creek. He stated that the Plat
had been reviewed by town staff and was found to be in general conformance
with Town of Avon Subdivision Requlations for a Condominium
Subdivision. He stated that Resolution No. 87-16 approves the Final
Subdivision Plat and Condominium Map of the Falcon Pointe Condominium
and related documents subject to:
1. Review by the Town Attorney.
2. The completion and execution of all Certificates, and
documents relating to the subdivision, in a manner satisfactory
to the Town Attorney prior to filing with the Clerk and
Recorder of Eagle County.
Mr. Wood reviewed the revised changes of the Time Share Use and
Subdivision Agreement with the Council.
He then recommended approval of Resolution No. 87-16.
Councilman Miller moved approval of Resolution No. 87-16, Series of
1987, with the stipulation that prior to its execution by the Mayor
and Town Clerk, that on the signature page No.7, which had been
executed by representatives of Pointes of Colorado, that underneath their
signature line, their names and positions by typed, noting correct
spelling. The motion was seconded by Councilman Connell and was
unanimously carried.
The next item on the agenda was new business.
Joe Olson was requesting that Council authorize the Town Attorney to
draft a new ordinance in respect to the seat belt law and the speed
limit law.
Councilman Miller moved to authorize the Town Attorney to draft both
ordinances relating to the new seat belt law, and the speed limit within
the Town. The motion was seconded by Councilwoman Harrison.
Discussion followed.
Councilman Connell opposed the seat belt law for Avon. He stated that it
was a resort area, and didn't want to give the police officers to many
occasions to stop tourists. He felt it was not necessary to draft
another law.
Councilman Davis stated that if it were drafted with the same verbage
as the state law, he did not have a problem with it.
The motion carried with Councilman Connell opposing.
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The matter with the Translator System was then discussed.
The Town Manager stated that Cal Thomas and Al Connell had presented
a summary report on the Translator System. He stated that with the
information that they had gathered, the estimated capital cost of a
Translator System would be between $152,500 and $246,600, annual operating
cost from $65,466 to $69,258. They could possibly provide a
financing package that would establish a charge of no more than $2.00
per home equivalent. He stated that this report would be made available
to the Metropolitan District at their August meeting. He stated that the
question before the Town was whether or not the Town shall be a lead
agency.
Discussion Followed.
Councilman Davis stated that there should be some understanding as to
how Avon was to receive money from the different towns to make it work,
and make it a low cost situation. Councilman Davis suggested.that Avon
follow through as the lead agency, and meet with the various towns,
listen to their concerns, and how they would like to proceed, then make
a decision whether they want an overall Board, or if they want Avon to
take the lead.
Council agreed.
Councilman Davis moved to authorize staff to review the proposal to spend
staff time and to come back to Council with their assessment of how a
Translator System could incorporate all the mentioned areas, including
Eagle, and to present it back to the Council in the near future. The
motion was seconded by Councilwoman Harrison and was unanimously carried.
The Mayor reported on the Bicentennial of the U.S. Constitution. The
Mayor read the letter in its entirety.
Councilman Miller moved to recommend that an application be filed on
behalf of the Town of Avon, and if the Town receives the Official Designation
that the Town solicit help of the Avon/Beaver Creek Resort Association
to put together and develop a commendable program to educate our residents
about the meaning and significance of the Constitution. The motion was
seconded by Councilwoman Harrison and was unanimoulsy carried.
The Financial Matters were next presented to the Council.
Councilman Miller moved approval of the Reconciliation Sheet of the
Petty Cash for July 28,;1987. The motion was seconded by Councilwoman
Harrison and was unanimously carried.
Councilman Miller moved approval of the General Fund of Accounts Payable
for July 28, 1987. The motion was seconded by Councilwoman Harrison.
Councilman Watkins was opposed to the contribution of the $2,000 for the
Special Events Coordinator that was being paid to the Chamber.
After discussion, the motion carried with Councilman Watkins opposing
the contribution of $2,000 to the Chamber for the Special Events Coordinator.
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Councilman Miller moved approval of the Reconciliation Sheet of Accounts
Payable for July 28, 1987. The motion was seconded by Councilman
Watkins and was unanimously carried.
The minutes of the July 14, 1987 Council Meeting was next presented to
the Council. Councilman Miller moved approval of the July 14th minutes
as presented. The motion was seconded by Councilman Connell and was
carried with Councilman Miller abstaining because of his absence from the
meeting.
Charles Gersbach reported on the Shopping Center. He stated that they
were scheduled to close on the land on Friday morning, and they were to
proceed with construction early part of next week. He stated that
half of the spaces in the smaller shops have been spoken for.
Councilman Davis suggested that because of the taxing ordinances, that staff
should look at those tax issues no later than budget time, and determine
what it would take in respect to funds for 1988, as well as, the five
year projection, and if it would take additional funds, then the Council
needed to know so as to determine authorization.
Councilman Harrison stated a good job was well done by the staff for the
Vintage Car Race.
There being no further business to come before the Council, Councilman
Miller moved to adjourn. The motion was seconded by Councilwoman
Harrison. The meeting was adjourned by Mayor Nottingham at 9:35 p.m.
SPEOTFULLY SUBMITT
tricia J. Moyle, -Tdwn /Cler
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