TC Minutes 09-14-19930
MINUTES OF THE REGULAR MEETING OF THE TOWN COUNCIL
HELD SEPTEMBER 14, 1993 - 7:30 P.M.
The regular meeting of the Avon 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 Albert J. Reynolds at
7:30PM. A roll call was taken with Councilors Jack Fawcett, John
Hazard, Tom Hines, Celeste C. Nottingham, Jim Roof, and Judy
Yoder present. Also present were Town Manager Bill James, Town
Attorney John Dunn, Director of Community Development Steve
Amsbaugh, Director of Municipal Services Larry•Brooks,
Transportation Director Harry Taylor, FirefChief Charlie Moore,
Police Chief Art Dalton, Town Clerk Patty Neyhart, as well as
members of the press and public.
First item under Citizen Input was the TCI- Cablevision Update.
Mr. Stan McKenzie, from TCI,. gave update on the.1992 Cable Act
and the new rates effective December 1st. The FCC-instituted a
cost formula which is used to calculate TCI's benchmark rate or
the rate the FCC feels is a justified rate for the cable industry
and a justified rate of return on investment. In the cost formula
it was'determined TCI could no longer charge for additional
outlets. In addition the converter boxes and remote controls have
been cut in half or even more depending on the types.of boxes.
Our.basic rate has gone from $10.00 monthly to $9.49 monthly.' The
expanded.basic went from $12.43 to $14.24 monthly. The average
custo_mer'has a combination of those two making the new rate $23.73
from $22.43; up $1.30. However, the average.customer has at least
one additional outlet, converter boxes,-and remote control; so-
their total monthly bill has gone down. This is a restructuring
of the rates; the FCC is mandating where TCI can and can't charge.
Mayor Reynolds asked why Denver residents pay less than Avon
residents. Mr. McKenzie stated it is based on a cost formula
that includes how many customers, how many plant miles; how much
repair time, how much are converter boxes; everything is in this
cost formula - a 450 page document by the FCC.
Councilor Hazard stated TCI can charge anything they want as they
basically have a monopoly. Mr. McKenzie disagreed. However, if
the question was, do we have to charge these benchmark rates, the
answer would be no. TCI does not have to charge the benchmark
rates. But, that is the maximum the federal government will allow
TCI to charge and represents a similar profit margin as the
telephone companies. The average customer in the United States
will see a decrease in their total monthly bill of perhaps $ .50
to $1.00.
Councilor Hazard questioned the more people you have the less
expensive cablevision is. Mr. McKenzie stated that is correct.
Councilor Hazard stated this hasn't happened; more hook ups in
Avon but prices-haven't lowered. Mr. McKenzie stated each year
these benchmark rates will be recalculated and that is where that
will come into play. When we add on more customers it is almost,
always due to a new build process; extending our plants.
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So in actuality, we could be extending our plants even further
with less people than we originally have right now on the.average.
Rates could go up slightly.based on.that. Councilor Hazard
questioned the maximum allowed will be charged. Mr. McKenzie
stated that is correct.
Mr. McKenzie noted the broadcast basic is,now regulated.by the
local Towns. That charge is $9.49,monthly. The expanded basic
will be regulated by the FCC in the future; currently $14.24.
Mr. McKenzie added that further guidelines will be coming from
the FCC.
Councilor Hines questioned a rate decrease based on growth of the.
number of people. Mr. McKenzie stated this to be correct. Mr.
McKenzie noted that depending on the increase in number of people
versus overall people being serviced in a specific area, any rate
decrease or increase could be minimal.
Councilor Roof questioned if plant miles include abandoned lines.
Mr. McKenzie stated abandoned lines are not included and these
could be drop lines or possible replaced distribution lines.
Councilor Fawcett questioned ability of the Town to request a
reduction in the basic charge. Mr. McKenzie stated the Town
needs to decide if it wants to be certified or not as regulator in
this area: Either way TCI has to stick with the benchmark rates
using this cost formula. If TCI recalculated the benchmark and it
went down, the Town.could request Areduction. Even without the
request, TCI would have to decrease rates because of the
benchmark. The Town in summary has the ability to watch over TCI
and basically TCI is'federally regulated.
Councilor Fawcett questioned rate reduction when cable service is.
unavailable. Mr..- McKenzie stated policy is.24 hours; cable out
for a minimum of.24.hours. Mr. McKenzie added that a daily-
calculation is so minimal. Mr. McKenzie does work with customers
who experience regula I r-or frequent outages. -
Councilor Yoder asked about re-transmission consent from ABC, CBS,
and NBC. Mr. McKenzie stated consent has not been received yet
and TCI is still negotiating. Rates will not be reduced as other
channels will be added.
Councilor-Yoder questioned about $2.00 charge added to billing due
to bill not being received on time. This concern is attributed to
date bill is received versus date-the payment is due back in'the
office. Mr. McKenzie will check this further and call Councilor
Yoder.
Councilor Hines questioned if rates charged could be below the
benchmark. Mr.- McKenzie stated yes, TCI may charge.below the
benchmark. However, TCI may havea zero profit margin at that
point. -This profit margin is very similar to the telephone
company.
Mayor Reynolds thanked Mr. McKenzie for his presentation.
Next item under Citizen Input was an Update on the Eagle River
Mine Cleanup.
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Mr. Kent Mueller and Ms. Patricia Teik~gave an update on the
Eagle River/Mine Cleanup.
Ms: Teik stated-she is the administrator for the Eagle River
Environmental & Business Alliance.:(Alliance). This-1g,a citizens
group that was form to accept an EPA.technical"assistance,.grant to
monitor what the EPA is doing up at the super fund site. The
Alliance has received $9,0,000 from the EPA. With that money,
technical advisors have been hired to monitor the EPA input into
their new record of decision as well as hire an epidemiologist to
look at the risk assessment at the site.
The EPA issued a record of decision the end of March. EPA was -
expecting to go into a three way consent decree with the Colorado
Division of Health (State) and Paramount Communication. Paramount
objected to several points in this consent decree and they went
back to a rap amendment for this summer's work plan.
EPA is very concerned that Paramount is going to protest the new
record of decision. Ms. Teik stated she and Mr. Mueller are hear
to ask for Council's support toward the EPA's record of decision.
Paramount's objections are the waste rock piles, the;new river
standards for zinc in the River, and the long term ground water
extraction around the tailings pile. Also, Paramount's summer
work plan has been very abbreviated.
Mr. Mueller stated in 1986 the State concluded an agreement with
the EPA that designated the State as the lead agency in cleaning
up the mine problem. The EPA reserved it's authority to step back
in at any time. EPA is designated as the responsible party for
clean up of super fund sites. In 1988 the State entered into a
consent decree and a remedial action plan with Paramount. In 1990
the.EPA stepped back in and proceeded with various studies. In
March, 1993 the EPA issued a record of decision. This record of
decision addresses approximately seven geographical areas with
selections-of remedies. Those-remedies are costly and some go
beyond what the present settlement stipulates. Therein lies
problems for Paramount, the State, and EPA. Mr. Mueller added it
is very unusual when a record of decision is issued after a remedy
is.in.place. So, we have an area where Paramount may claim they
are being treated unfairly and proceed-with litigation. Paramount
has now asserted that EPA has no jurisdiction.
Mr. Mueller believed the cleanup to be unfinished and presented
and explained to Council the Eagle River Surface Water Quality
Data that-included dates and amounts of flow rate, zinc and Cd.
Mr. Mueller admitted there has been a radical improvement, until
this year and that is the concern. EPA needs to know that we, in
the area, support their activities.
Councilor Hines stated that the reason for loss of construction
time is because of the posturing over these two different
decisions. And, one decision does not supersede the other. Mr.
Mueller stated Paramount claims they weren't going to do any more
work last year because this record of decision was actually due,
out last September. it is assumed, that Paramount decided to go
slow, in the event that the record of decision contained a
different work schedule than what they were working on with the,
State. These differences are alot more strict than t_ he State's.
Ms. Teik noted that EPA and the State had agreed on what needed
to be done for the summer by March. So there is really no reason
for Paramount to delay starting their construction season in
May/June.
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Mr. Mueller stated there is a new team out there now, along with
the State and requested Council to support them. Ms. Teik
presented a draft letter that Council could use as they see fit to
express their support.
Discussions followed.
Mayor Reynolds thanked Mr. Mueller and Ms. Teik for their
presentations and efforts.
First Reading of Ordinance No. 93-8, Series of 1993, AN ORDINANCE
AMENDING CHAPTER 2.30 OF THE MUNICIPAL CODE OF THE TOWN OF AVON,
THE TOWN CODE OF ETHICS
Attorney Dunn stated this amendment would limit the definition of
business to individuals or organizations carrying on businesses
operated for private profit thereby excluding from the definition
of business nonprofit organizations.
There being no further comments, Mayor Reynolds called for a
motion.
Councilor Fawcett motioned adoption of Ordinance No. 93-8, Series
of 1993 on first reading. Councilor Hines seconded the motion.
With no further discussion, Mayor Reynolds entertained a roll
call.
Those Councilors voting in favor were John Hazard, Tom Hines,
Celeste C. Nottingham, Jack Fawcett, Jim Roof, Judy Yoder. The
motion carried unanimously.
First item under Unfinished Business was Ratification of a
Contract to Purchase Lot 16.
Councilor Nottingham expressed a conflict of interest. Councilor
Nottingham stepped down from her seat and left the council
chambers.
Mr. Bill James informed Lot 16, a vacant lot, is located on West
Beaver Creek Blvd. next to Buck Creek Condominiums. The Town's
Comprehensive Master Plan suggests the Town purchase Lot 16 as
open space and as a view corridor. The Recreation Master Plan
suggests the Town purchase Lot 16 as a view corridor and also as
additional parking and alternate access to Nottingham Park. Since
we have been master planning the entire park area and looking at
building an aquatic center and library on Tract G this seemed an
opportune time to purchase Lot 16. Staff is requesting
authorization for the Mayor to execute the purchase and sale
contract between the Town of Avon and Buck Creek Association, a
Colorado partnership. Purchase price would be $260,000, with
$240,000 cash and $20,000 would be used as a tax advantage, as a
donation to the Town of Avon to be used by the landowners. The
contract is fairly straight forward, with the closing date set for
September 30th. A title policy is attached to the contract, along
with a tax certificate.
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Councilor Fawcett questioned the title policy insures the property
for $235,000. Attorney Dunn stated that was the purchase price at
the time it was order. Once the contract is signed a copy it will
be provided to the title company and they will adjust the amount.
Councilor Yoder questioned endorsement for minerals, schedule B2,
number 9. Attorney Dunn stated that particular exception is in
the patent; Attorney Dunn will check on this.
There being no further comments, Mayor Reynolds called for a
motion.
Councilor Yoder motioned to authorize the Mayor to execute the
purchase and sale contract between the Town of Avon and Buck Creek
Association, a Colorado partnership for Lot 16, Block 2, Benchmark
at Beaver Creek. Councilor Roof seconded the motion and the
motion carried unanimously.
Councilor Nottingham entered the council chambers and returned to
her seat on the Council.
Next item under Unfinished Business was Ratification of a Contract
to Purchase the Public Works Facility Site.
Mr. James reminded that for the last several years Staff has been
working on a location for a public works facility. Currently, the
Town works out of approximately 13 different leased locations.
One critical area is cinder storage, which currently behind Pizza
Hut on private ground. Our equipment needs are growing. And,
combined with the leases and the cinder storage problem, there is
truly a need for a consolidated public works facility. The Town
has been working with Fleet Maintenance Consultants for a
recommendation of a location for the public works facility. The
Stolport property was selected. Presented this evening is a
purchase and sale contract with EMD Limited Liability Company and
the Town of Avon. There are alot of conditions in the contract
and so it appears to be more of a glorified letter of intent.
This represents the purchase of 15 acres for $1.5 million. Some
of the conditions include annexation of the property and a whole
master planning process. Also, the Town would make a financial
commitment to construct a separated railroad crossing. Another
condition is that the Town get approval from the PUC for an on
grade crossing at the East end of the property. This would remain
a private crossing that the Town could possibly use on a temporary
basis. The construction of the separated railroad crossing would
be financed in whole or in part by the Town of Avon and revenues
to pay for this construction would have to come from the
development of that project. Another item is a separate lease so
that the Town may use the old terminal building and acreage around
the building for $1.00 yearly while going through the process of
annexation. If we are able to use the old terminal building,
vacating the Avon Center and empty lot next to the Grand which are
leased facilities, this will save approximately $40,000 yearly.
This whole master planning process is estimated to take
approximately 2 years. There is a question on the November ballot
asking citizens to allow us to issue $1,700,000 worth of bonds to
be able to purchase this property. The difference in cost is we
have to establish a bond reserve fund of $150,000 and about
$50,000 for issuance cost. On the bond question, all current
revenue sources will be used so there will be no proposed tax
increase for that ballot question.
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Councilor Nottingham questioned where reference is made to the use
of the Stolport building for the bus parking,and questioned--if
that should be included in the contract. Mr. James stated the
contract will not be signed until we have that agreement.
Councilor Nottingham requested information on who the seller is
and references prior to signing this agreement.
Attorney Dunn stated there are two changes that need to be made if
Council approves the contract. First change is on page 5, section
F;- 30 days should be 60 days. Second change is on page 5, 6th
paragraph the "determination of the soils condition" needs to be
repeated in the same paragraph after "or the access- thereto,"
Councilor Nottingham motioned that we ratify.the purchase and
lease contract-between EMD Limited Liability Company and the Town
of Avon with the changes that we further identify the sellers and
that we have a lease on what we refer to as the Stolport building
for the bus operation.and that on page 5, where we make reference
in F, the 30 days for the determination of the soils condition be
changed to 60 days and in the paragraph following that that we add
in the second to-the last sentence that the soil condition is also
given 60 days; that the purchaser has been given 60 days prior
written notice of such soil conditions determination to seller,
purchaser and-purchaser's sole option, shall have,the right to
terminate this Contract. Attorney Dunn stated that remains 30
days. Councilor Nottingham stated to strike that last 30 days to
60 days change.
Councilor Yoder seconded the motion and the motion carried
unanimously.
Next item under Unfinished Business was Transit - Award of Bid for
Six Busses
Mr. Larry Brooks-informed of the bid opening, for the six transit
busses that were a result of the FTA Grant received last fall.
Mr. Brooks complemented Mr. Harry Taylor for his work and
efforts. The bid opening was August 30th and consisted of three
bidders. Staff is'recommending the bid be awarded to the lowest
bidder, Gillig Corporation. Each bus from Gillig will be
$189,973, or -a total of $1,139,838 for six busses,. If awarded,
the order will be placed the end of this month and will hopefully
receive busses by the end of next summer. The FTA grant -is for
approximately $1.,38 million. Radios and ski racks need-to be
installed-on the busses. All total, each bus will be.about
$208,000.
Councilor Hines motioned to award the transit coach bid-to the low
bidder, Gillig Corporation in the amount of $1,139,838. -Councilor
Hazard seconded the motion and,the motion carried.
First item added under.New Business was the'Lighting in,the
Council Chambers.
Councilor Nottingham requested Mr. Josh Hall to recommend
lighting in the Council Chambers and suggested moving towards
getting the additional lighting.
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Mr. Hall has submitted a report to Mr'. Brooks. Mr. Hall.
presented-an example of the track lighting he is recommending.
Cost is approximately $650.00 for the lights - 4 across the back
acid .5 in front; 'plus electrical wiring.
Councilor Yoder motioned to authorize the Town Manager to spend up
to $2,000 to do this; working-with Josh. Councilor Hines seconded
the motion and the motion carried unanimously.
Next item added under New Business was the School District.
Councilor Nottingham motioned that we would perhaps at Bill's
discretion, our town manager, either send a letter or create'a
Resolution,that would then be forwarded on to Eagle County School
District.describing the impact that their inconsistency has-had'
upon our residents and in the long term the state of our Town.
Councilor Yoder seconded the motion.
Councilor Hines requested a Resolution.
Councilor Nottingham moved-to make that a,Resolution. Councilor
Yoder seconded the motion. `
Councilor Fawcett supported a Resolution.
Councilor Nottingham amended motion to make it a motion for a
Resolution rather than just a letter to the school district.
Councilor Yoder seconded the motion.
Councilor Fawcett,questioned if we are-going,to come.up'with a
Resolution and then pass it. Mr. James understood that a
Resolution will be created, the Mayor will. sign it,,and it will-be
forwarded to the school district out lining the Council's concerns
about the school situation. Council voiced agreement.
The motion carried unanimously.
Special Note: This is Resolution No. 93-34, Series of 1993.
Next on the Agenda was the Town Attorney Report.
Town Attorney Dunn introduced Mr. Ron Robbins. Mr. Robbins will
be:replacing Mr. Larry Hartlaub of Attorney Dunn's office.
Next item on the Agenda was the Mayor Report.
Resolution No. 93-33, Series of 1993, A RESOLUTION SUPPORTING.THE
CONCEPT OF HOSTING THE WORLD CHAMPIONSHIPS AND'PROVIDING FINANCIAL
SUPPORT
Mayor Reynolds read Resolution No. 93-33 in it's entirety.
Councilor Hazard motioned to approve Resolution No. 93-33., series-
of 1993. Councilor Hines seconded the motion and the motion
carried unanimously.
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The Financial Matters were next presented to Council.
Councilor Nottingham motioned to receive items #1 through #7 and
approve items #8 through #9. The motion was seconded by Councilor
Hines and carried unanimously.
Next presented to Council were the Council Meeting Minutes.
Councilor Hines motioned approval of the August 24, 1993 Regular
Council Meeting minutes as presented. Councilor Nottingham
seconded the motion and the motion carried unanimously.
There being no further business to come before Council, Mayor
Reynolds called for a motion to adjourn. Councilor Hines moved to
adjourn. The motion was seconded by Councilor Fawcett. The
meeting was adjourned by Mayor Reynolds at 9:25pm.
RESPECTFULLY SUBMITTED:
tty NeyAart, Town Clerk
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