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TC Minutes 02-28-1989MINUTES OF THE REGULAR TOWN COUNCIL MEETING HELD FEBRUARY 28, 1989 - 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 7:38 p.m. A roll call was taken with Albert Reynolds, Mike Bennett, Emilie Harrison, Gloria McRory and Jim Stovall. Councilman Jerry Davis was absent. Also present were Town Attorney John Dunn, Town Manager Bill James, Director of Engineering Norm Wood, Director of Public Works/Parks and Recreation Larry Brooks, Fire Chief Wayne Smith, Police Chief Art Dalton, Secretary Dorothy Gallegos, as well as members of the press and public. The Mayor called for Citizen Input. There being no one wishing to be heard, the Mayor closed that portion of the agenda. Second reading of Ordinance No. 89-2, Series of 1989, AN ORDINANCE REPEALING AND RE-ENACTING ORDINANCE NO. 88-14 RELATING TO AN EXCISE TAX ON THE OCCUPANCY OF TIME-SHARE UNITS. Second reading of Ordinance No. 89-3, Series of 1989, AN ORDINANCE AMENDING CHAPTER 3.08 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS IT RELATES TO THE PAYMENT OF A SALES TAX ON THE EXCHANGE OF TIME-SHARE UNITS. Second reading of Ordinance No. 89-4, Series of 1989, AN ORDINANCE AMENDING CHAPTER 3.28 OF THE MUNICIPAL CODE OF THE TOWN OF AVON AS IT RELATES TO THE PAYMENT OF AN ACCOMMODATIONS TAX ON THE EXCHANGE OF TIME-SHARE UNITS. Mayor Nottingham introduced all the ordinances and stated that anyone wishing to address their concerns could do so at the time of the public hearing. The Mayor asked that Mr. James and Mr. Dunn make their comments on the three ordinances that were before the Council as this time. Mr. James reviewed the three ordinances that were in regard to time- share and the history of which led up to the litigation. Mr Dunn summarized the concern of the ordinances which was for the time-share owners to pay a tax in lieu of, or in addition to, the recreational amenities fee, but stated that the fee had been reduced from $10.00 per night to $5.00 per night. 0 i There was discussion of the time limit for each speaker on this matter. Councilman Bennett moved to limit each speaker to three minutes. The motion was seconded by Councilman Reynolds and was unanimously carried. The first speaker was Bill Case from Indinappolis, Indiana. He stated that he had been a time-share owner for the past six years. He stated that the comes to Avon once a year for two weeks. He had concern that the property owners were being asked to pay 3 1/2 times more than they originally paid. He stated that he spent $300 to $500 just in sales tax during the two weeks he was here. He felt that he was being treated as a second class citizen. Martin Elia from Augusta, Georgia approached the Council. He stated that he had been an owner of time-share for the past five years. He stated that he had spent approximately $700 just on tips alone in the various restaurants in Avon, which did not include the buying of souvenirs, rental for skis, etc. He asked that Council reconsider the adoption of the ordinances. Rick Fletcher from San Diego, California approached the Council. Mr. Fletcher had been an owner of time-share for the past four years. He stated that he brings anywhere from six to nine people with him each year. He stated that each person spends approximately $400 to $500 for food, liquor, etc., which does not include lodging or lift.tickets. He stated that he could go elsewhere to buy his groceries, souvenirs, and could take his business out of the Town of Avon. Bill Hahn from Lakewood, Colorado approached the Council. He stated that he spent both one week in the winter and one week in the summer in Avon for the past six years. He stated that he did not mind spending money, but hated to pay the extra tax. He stated that he has always received good service, good food, and hospitality from the Town of Avon and would like to continue to come back to Avon, but not if he had to pay more taxes. Bob Wilson from Dallas, Texas approached the Council. He stated that he has been an owner of time-share for the past four years. He stated that he comes to Avon once a year for two weeks and also brings five to seven people with him. He felt that they were being treated unfairly, and could change his mind about coming to Avon again. Fred Onier from Dallas, Texas approached the Council. He stated that he bought his unit four years ago at the Christie Lodge. He stated that he was here with his family and two other families. The four days that they have been here in Avon, they have spent approximately $1,500 dollars. Mr. Onier asked the Council what the proposed money was being used for. It was stated that the money was used for police protection, public safety, recreation and transportation. Mr. Onier felt that the County should pay for some of the amenities, and not be the responsibility of just one group of people. -2- i i Liz Burleson from Mansville, Ohio approached the Council. She stated that she has been an owner for the past five years. She stated that she has watched Avon grow and felt it had grown because of the time-share owners. She stated that employees of the Christie Lodge and Falcon Pointe could lose their jobs if the ordinances were adopted. David Fruedenthal stated that he was not a time-share owner, that he was just a vacationer. He commented on how beautiful Avon was, and that it was one of the nicest places he had ever visited or stayed. He stated that in order for the time-share people to support the Council and the Town, the Council should support the people as well. Dr. Roger Holmes from Dublin, Ohio approached the Council. He stated that he has owned a unit for the past four years. He stated that he had never visited Avon before purchasing a time-share unit. He stated that when he purchased the unit he knew that the fees would pay for real estate taxes, schools, school buses, roads, etc., and felt that it was fair. He stated that he would pay his taxes, but only if they were fair taxes. Edie Hudson with a local real estate firm approached the Council. She stated that she wanted Avon to treat everyone equally and stated that they were not being taxed fairly. She felt that they were paying enough taxes. She felt that everyone should have to pay the same tax as the owners of the time-share units were asked to pay. Bill Andre, a time-share owner approached the Council. He stated that he agreed to pay the extra tax, as long as everyone else had to pay the same amount. He asked that the Town support their request. John Bowender stated that he has been an owner for the past five years. He stated that the Town of Avon had no accountability whatsoever. Ken Agnes Secretary for General Counsel of Resort Condominiums International, which was a time-share exchange company approached the Council. He presented the Council with a -petition which included eighty three signatures stating that they were willing to pay the taxes, but for the tax to be fair to everyone and for the Council to reconsider the ordinances. He requested that the Council table the motion for approval. Bill Fletcher General Manager for the Vail Run Resort Hotel approached the Council. He stated that no one had complained about paying the tax, as long as everyone else pays the same tax as the time-share owners. Kevin Payne Executive Director for the Avon/Beaver Creek Resort Association approached the Council. Mr. Payne reviewed the history of the bus transportation concern, and the lack of payment of $24,000 from the Christie Lodge. Tom Napoli President of the Christie Lodge Homeowners Association approached the Council. He stated that Christie Lodge was willing to subsidize the bus service issue to insure that the guests had bus service. He stated that all they had asked the Resort Association to do was to have an accounting during the year, and if their rider- ship did not come up to the percentage that the Association had asked for, in relationship to what all the other Resort Properties were going to pay, that Christie Lodge not have to pay anymore. He stated the $24,000 just happened to be 150 of the total amount that was raised from the Resort Community. It also happened to be 15% more than their ridership of the bus system. -3- ►__I 0 Laurie Korman with a real eatate broker of the area approached the Council. She felt that her career was at stake if everyone were to take their business elsewhere. She requested that Council reconsider the approval of the adoption of the ordinances. Nancy Ashley stated that she had only been in the area three weeks. She stated that she had noted the sales tax increase in the local newspaper and questioned the fact of why the Town needed more tax. Kim Lenz asked that Council table the adoption of the ordinances and re-open the discussions. Tom Jenkins an employee of Christie Lodge for the past two years approached the Council. He stated that he was afraid of losing his job because of this tax and wanted Council to reconsider before adopting the ordinances. Ken Sortland a resident of Avon for the past ten years approached the Council. He stated that he would not like to see the bus service terminated, but then again, he has paid his share of taxes and would not like to pay more. He felt that everyone should pay the same for bus service and had hoped that this matter could be worked out. Robert Young a resident of Avon approached the Council. He stated that the Town of Avon just invited all of his friends from all over the world to come and ski and Avon showed them what a wonderful area this was, and now it was time to show his other friends(time-share owners)how wonderful this area was and how fair the Town of Avon was. He asked that the Council reconsider the adoption of the ordinances on this tax. At that point the Mayor closed the public hearing and entertained discussion from the Council. Councilman Stovall stated that this issue was never closed and had been open for discussion since day one. He felt that the Council had worked very hard to try to come with a solution on this problem. He stated that the Council had treated the taxation fairly and that they have agreed upon the $5.00 per night and not the $10.00 per night fee. He stated that he did not want this to go into litigation and wanted to try to resolve this by stipulation. Councilman Bennett stated that Mr. Bill Case had mentioned that there was a 13% increase in the maintenance fee of Christie Lodge. Councilman Bennett asked of over how many years this $5.00 per night represented the 13% increase. Councilman Bennett felt that the increase was not out of line. Councilwoman Harrison stated that the last time the Town of Avon had received any tax from Christie Lodge was in March of 1987. Councilwoman Harrison stated that Christie Lodge has not paid for the bus service or, their fair share of taxes. She stated that Christie Lodge's success was the Town of Avon's pleasure. -4- Councilwoman McRory stated that the Town Attorney and the Town Manager carry out the wishes of the Town Council and that they do not make these decisions on their own. Mr. Dunn circulated a letter to the Council from Susan Griffiths, Special Counsel, which recommended two additions to the proposed ordinances. She recommended that a Savings Clause be added to the ordinances amending the sales and accommodations taxes, to provide that the amendment shall not extinguish any amount owing, or any penalty forfeiture liability incurred pursuant to the existing ordinances prior to the effective date of the amendment. Mr. Dunn recommended that the Council move to amend Ordinances No. 89-3 and 89-4, Series of 1989 to add that Savings Clause. Councilwoman Harrison so moved. The motion was seconded by Councilman Stovall and was unanimously carried. Mr. Dunn stated that the second recommended addition by Susan Griffith was a Savings Clause to be added at the end of Section 2 in Ordinance No. 89-2, which would provide that in the event the effective date was ruled invalid, that the ordinance would become effective in accordance with the Charter of the Town, but that the delayed effective date would not extinguish any amount owing under ordinance 88-14 prior to its repeal. Mr. Dunn recommended that the Council approve the addition of that Savings Clause with respect to ordinance No. 89-2. Councilwoman Harrison so moved. The motion was seconded by Councilman Reynolds and was unanimously carried. Mr. Dunn stated that there were two corrections to Ordinance 89-4 in respect to the accommodations tax. On page 2, at the top of the page, paragraph E, third line, he asked that the Council amend the language by the addition of a "comma" after the words, "time-share use". Councilwoman Harrison so moved. The motion was seconded by Councilman Stovall and was unanimously carried. Mr. Dunn stated that the second correction was in Ordinance No. 89-4 Section 3, the amendment to Code Section 3.38.030, "The Imposition of Rate of Tax", the fourth line, an amendment to delete the "comma" after the word, "leasing". Councilwoman Harrison so moved. The motion was seconded by Councilman Stovall and was unanimously carried. Councilwoman McRory moved and recommended that Ordinances No. 89-2, 89-3 and 89-4, Series of 1989 be tabled until the next regular Council Meeting. The motion was seconded by Councilman Stovall and was unanimously carried. -5- • • Councilman Bennett stated that it was unfortunate that the Council had not been able to deal with the owners of individual intervals that were present at the meeting that have sincere concerns. He stated that it was obvious that the Council was dealing with the major players of the project, and the holders of the notes. He stated that the Council sincerely tried on every level from staff to various' members of the Council to try to work this problem out. He questioned of what would be different in the next two weeks as it has been in in last two years. The Council reccessed at 9:45 p.m. and reconvened at 10:00 p.m. First reading of Ordinance No. 89-5, Series of 1989, AN ORDINANCE APPROVING A ZONE CHANGE FOR RIVERSIDE PROJECT. Norm Wood stated that Golden Buff Enterprisies had applied for a zone change. In conjunction with that zone change, was a request for approval for a Resubdivision of the property. He stated that it was annexed into the Town as the White Property. It was located east of Avon Road between Highway #6 and the Eagle River. Mr. Wood then reviewed the map with the Council. Mr. Peter Jamar respresenting Golden Buff Enterprisies approached the Council. He stated that the previous developers that had looked at that property really never looked at the whole picture. He stated that this project would be a 150 unit accommodation lodge and 5000 square feet of commercial. He stated that once they had a specific building, they would approach the State Highway Department to apply for an access permit. He stated that there was some indication of some channelization, which meant, left turn and right turn lanes to occur in that area. Councilwoman Harrison moved approval of Ordinance No. 89-5, Series of 1989 on first reading. The motion was seconded by Councilman Stovall. There being no further discussion, the Mayor called for roll call. Those Councilmembers voting aye were: Albert Reynolds, Mike Bennett, Emilie Harrison, Gloria McRory and Jim Stovall. There were no nay votes. The motion was unanimously carried. Resolution No. 89-5, Series of 1989, A RESOLUTION AMENDING THE SUPPLEMENT AND SUPPLEMENTING PARTS OF THE COLORADO PUBLIC LEASING PROGRAM REVENUE BOND SERIES 1987. Mr. Dunn stated that the purpose of the resolution was to amend the Indenture of Trust between the Town of Avon and Denver National Bank, to permit loans, to approve real estate and to change the interest rate. He stated that the portion regarding real estate has been deleted, and was being reviewed at this time. He stated that the request was that Council adopt the resolution, but only to amend and supplement the definition of Section 1.1 of the Indenture of Trust, which read as follows: -6- • • "The Lease Rate shall mean as of each adjustable Date, the lesser of (1) the Bond Rate or, (2) such rate of interest as may be established by the program representative without the need for consent of the Town or the Trustee, but with the written consent of the owners or a designated representative thereof, 750 or more aggregate principle amount of the Bonds outstanding, 'provided however, that notwithstanding the foregoing and without the need or consent of the Town, Trustee or any owner of the Bonds, the program representative may set the lease rate at seven and forty five one-hundredths percent (7.45%) per annum with respect to the first four million dollars in principle amount of Originated Leases (as measured by the initial Optional Purchase Price established with respect thereto) excepting any Lease Agreements in effect as of February 28, 1989". Mr. Dunn stated that the change had been approved by Bond Counsel and he recommended that Resolution No. 89-5, Series of 1989 be adopted in that form at this time. Councilwoman Harrison moved approval of Resolution No. 89-5, Series of 1989. The motion was seconded by Councilman Bennett and was unanimously carried. Resolution No. 89-6, Series of 1989, A RESOLUTION APPROVING A SEPARATE BUDGET FOR THE TOWN ATTORNEY'S INVOLVEMENT IN LITIGATION OF A COURT CASE. Mr. James stated that this resolution was in respect to the Town Council's authorization in the Town Attorney's involvement in the Bain Case. He stated that this resolution would amend the 1989 Budget by $500 and set up a specific Account regarding that case in the Town Attorney's Budget. Councilwoman Harrison moved approval of Resolution No. 89-6, Series of 1989. The motion was seconded by Councilman Stovall and was unanimously carried. Resolution No. 89-7, Series of 1989, A RESOLUTION AMENDING THE 1989 BUDGET. Mr. James stated that this was affirming and amending the 1989 Budget on an action that the Council took at the last meeting, which was to purchase furniture for a Conference Room, and some remodeling in the Council Chambers. The 1989 Budget would be amended by $5,500. Councilwoman McRory moved approval of Resolution No. 89-7, Series of 1989. The motion was seconded by Councilman Reynolds and was unanimously carried. -7- • • The Town Attorney's report was next presented to the Council. Mr. Dunn reported on the Avon Mall Out-Lot. He stated that a Deed conveying Title from the developer of Avon Center Mall Out-Lot to the Town of Avon had been sent to Don Buick with request that he execute the document. He stated that the letter also made mention of payment of taxes on that Out-Lot. He stated that as of date, he had not received any response. Mr. Dunn stated that in respect to the Christie Lodge Appeal, there was a deadline for Filing the Opening Brief, which was the 29th day of March, 1989. He stated that he met with Jerry Dahl with the Colorado Municipal League and was informed that the League would not become involved in respect to the Appeal. He stated that he would be meeting with Michael Clowdus in the morning, and if negotiations continue, he would possibly try and hold off the Appeal for two weeks. Mr. Dunn stated that one other item was in respect to Homestake II. He presented the Council with three Motions for Summary Judgement. One was Filed by Colorado Springs, and by the City of Aurora, one by the County and one by the Wilderness Defense Fund. He then reviewed a brief history of Homestake II with the Council. Mr. James reviewed the process the staff would like to use in respect to the proposed Comprehensive Plan for the Town. He recommended that the Council follow the process for individual planners and firms that would be interested in doing the Plan for the Town. He stated that staff would send a letter to all Eagle County Planners and Architects, and to qualified planners in Colorado who have completed resort planning. He stated that there were no out-of-state firms on the list. Mr. James reviewed the requested qualifications which would be required of each firm or individual planners with the Council (see memorandum attached to these minutes). He stated that the Council would meet on April 4, 1989 to review the submitted applications, to determine a list of individuals or firms that they would like to interview. The interviews would take place on April 11, 1989. The final selection would be made on April 25, 1989. The Funds would derive from the Planning Technician Position that was budgeted for in the 1989 budget, and the balance, if needed, would derive from the Public Works Fund. Councilman Stovall moved to authorize the Town Manager to proceed under Option A. The motion was seconded by Councilwoman Harrison and was unanimously carried. -8- • • Norm Wood reported on the TV Translator System. He stated that the Town has five construction permits for construction of the TV Translators on Bellyache Ridge. He stated that the Engineering Study indicated that the most effective use of those translators would be at a site at Dowd Junction. He stated that there was a window that was open from March 6th to March 10th, 1989 that the Town could transfer those licenses. Mr. Wood stated that Neil VanGayland who has done work for the Eagle County Translator Committee had agreed to work on the necessary engineering and prepare the application for the transfer with the hope that funds would be available where he could be reimbursed for his work. After some discussion, Councilman Bennett moved to authorize staff to file the application to transfer the TV Translator Construction Permits from Bellyache Ridge to Dowd Junction. The motion was seconded by Councilwoman McRory and was unanimously carried. Next on the agenda was a request to amend Section 9.08.030 of the Avon Municipal Code. Art Dalton, Police Chief approached the Council. He requested that the Council consider increasing the Larceny charges from $200 to $300 per item. He stated that by increasing the fee from $200 to $300, it would give them more flexibility for booking these Larceny cases into Municipal Court rather than District Court. Councilwoman Harrison moved to amend Section 9.08.030 of the Municipal Code allowing the increase from $200 to $300 so the larceny cases could be brought into Municipal Court. The motion was seconded by Councilwoman McRory and was unanimously carried. There were four Planning and Zoning Commission Members who terms would expire on May 1, 1989. The Town Clerk requested authorization to advertise these positions in the local newspapers. The interviews would take place at the Council work session of April 25, 1989. Councilman Bennett moved to authorize staff to proceed with the advertising for the four positions. The motion was seconded by Council- woman McRory and was unanimously carried. Next on the agenda was a request for authorization to purchase a new snowplow unit. Larry Brooks stated that the Public Works Department was requesting that they have authorization to replace a truck and snowplow unit. The unit that would be replaced was a 1974 Dump Truck which was purchased from the Town of Vail some time ago. He stated that the purchase price for the new unit would be $75,000, which would be a $1,875 per month lease purchase program. He stated that an ordinance would be drafted for the next Council Meeting. -9- • • Councilwoman Harrison moved to authorize the purchase of a new snowplow unit. The motion was seconded by Councilman Bennett and was unanimously carried. Next on the agenda was the appointments of the Metro-Marketing Study Committee. Councilwoman McRory moved approval of the appointments of Greg Miller, Jeff Spanel, Stewart Green, Terry Halverson and Lynne Kraft to the Metro-Marketing Committee. Also, Albert Reynolds and Jerry Davis were appointed to that committee. The motion was seconded by Council- man Stovall and was unanimously carried. Councilman Stovall moved approval to appoint Kevin Payne as the Town's representative to the Vail Valley-Wide Marketing Committe. The motion was seconded by Councilwoman McRory and was unanimously carried. The Financial Matters were next presented to the Council. Councilwoman Harrison moved approval of the General Fund of Accounts Payable and the Reconciliation Sheet of Accounts Payable for February 28, 1989. The motion was seconded by Councilman Bennett and was unanimously carried. Councilwoman Harrison moved approval of the February 14, 1989 Council Meeting Minutes as presented. The motion was seconded by Councilman Reynolds and was unanimously carried. Mr. James requested that Council schedule a work session on Tuesday March 7, 1989 to discuss various items. The Council agreed. There being no further business to come before the Council, Councilman Stovall moved to adjourn. The motion was seconded by Councilwoman McRory. The meeting was adjourned by Mayor Nottingham at 10:49 p.m. -10- 0 RESPECTFULLY SUBMITTED Z 00 Dorothy G llegos, Se etary -11- APPROVED: • March 7, 1989 RE: Request for Letters of Interest Town of Avon Comprehensive/Master Plan Dear Professional, 0 The Town of Avon, Colorado is seeking qualified candidates within the State of Colorado for the preparation of a Town of Avon Comprehensive/ Master Plan. Qualified firms or individuals are encouraged to submit a letter of interest by 12:00 noon on March 31, 1989. Preferred candidates should have the following qualification: 1. Completion of at least one Comprehensive/Master Plan preferably in a Mountain Resort Community. Please provide a copy of the work your firm prepared for the Comprehensive/ and/or Master Plan with your letter of interest. The following is requested to be included with your letter of interest: 2. Three letters of recommendation, preferably from municipal clients, that your firm has provided planning services to within the last five years. 3. Description of firm including the scope of services your firm could provide and what additional consultants you might collaborate with in order to complete the proposal. 4. Related experience and qualifications of those staff members that would be directing and managing the project. 5. Description of firm's philosophy and approach to providing a Comprehensive and/or Master Plan. • a 6. Estimated date that your firm would be able to initiate the project. Letters of interest should be submitted to Patricia J. Doyle, Town Clerk, Town of Avon, PO Box 975, Avon, Colorado 81620 prior to March 31, 1989. Sincerely, William D. James Town Manager Town of Avon