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TC Minutes 08-23-1994MINUTES OF THE REGULAR MEETING OF THE TOWN COUNCIL HELD AUGUST 23, 1994 - 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 Reynolds at 7:32PM. A roll'call•was taken with Councilors Jack Fawcett, Tom Hines, John•Hazard, Celeste C. Nottingham, and Jim Roof. Councilor Judy Yoder was absent. Also-present were Town Manager Bill James, Town Attorney John Dunn, Director of Community Development Tom Boni, Town Engineer Norm Wood, Superintendent of- Recreation Meryl Jacobs, Director of Municipal Services Larry Brooks, Transportation Director Harry Taylor, Fire Chief Charlie Moore, Police Chief Gary Thomas, Town Clerk Patty Neyhart, as well as'members of the press and public. First item on the Agenda under Citizen Input was the St. Moritz Trip Review with Buz Reynolds, John Hazard, Jan Strauch, Merv Lapin, and Frank Johnson. Mr. Merv Lapin presented a general review of the St. Moritz trip. St. Moritz has-.been Vail's "Sister City" for 10-15 years. St. Moritz is Vail's only "Sister City" and a lot of problems are commonly shared. Mr. lapin compared the-Vail/Eagle Valley to the Engadine Valley. The three main reasons for the trip and topics of discussion were Special Events, Marketing, and Exchange Program (employees). Mr. Frank Johnson gave the detailed presentation-on Special Events, Mr..Jan Strauch presented the Marketing aspect and Ms. Syball Navas detailed the Exchanges. Ms. Peggy Osterfoss thanked the Council for sending Mayor Reynolds and Councilor Hazard and hoped Council would continue to work with Vail in the future. Mr. Lapin informed that Mr. John Horan-Kates-has been contracted, and can spend,up to $5;000., to coordinate the "Sister City" concept.' Mr. Lapin requested the Town of Avon participate at a cost of $1,250 to continue the coordination with St. Moritz. Mr. Lapin added Vail Associates will be asked to participate,at $1,250, as well. Mr. Lapin noted the St. Moritz entourage will be coming to Vail this fall. Next item Added to the Agenda under Citizen Input was lighting and property tax concerns by Ms. Chris Ekrem. Mr. Chris Ekrem, citizen of Avon, noted her concern of the non- lighting'between Avon Road and the Town of Avon Municipal Building. Ms. Ekrem requested the way to the Municipal Building be lit. Mayor'Reynolds stated that we are in the process of doing that. We will have ample lighting as soon as the library and everything is in place. Ms. Chris Ekrem reported how her property taxes have increased over the years. Ms. Ekrem voiced concern of her increasing, assessment of property value. Due to her limited income and during..the budgeting process, Ms. Ekrem requested Council to make her a special case and not collect the 27.72% of her property tax. Council recessed at 8:50PM and reconvened at 8:57PM. i Second Reading of Ordinance No. 94-17, Series of 1994, AN ORDINANCE REPEALING AND RE-ENACTING CHAPTER 6.04 OF THE,MUNICIPAL CODE OF THE TOWN OF AVON, RELATING TO ANIMAL CONTROL; AND PROVIDING PENALTIES FOR THE VIOLATION HEREOF Mayor Reynolds announced this is a public hearing. Mr. Bill James stated this is second reading of an Ordinance that will allow the Town of Avon'to be able to enforce animal control within it's jurisdiction. Per Council's request, cats have been incorporated into the Ordinance. This Ordinance is geared toward animal control; specifically dogs and cats. Councilor Nottingham asked how long the,offenses are in effect; is it three offenses in a year or what? Town Attorney Dunn stated this is in Section 6.0.160 (C), page 17. Councilor Nottingham moved to approve Ordinance No. 94-17, Series of 1994 on second reading. Councilor Fawcett seconded the motion.- The motion carried unanimously., First Reading of Ordinance No. 94-18, Series of 1994, AN ORDINANCE AUTHORIZING THE ISSUANCE OF THE TOWN OF AVON, COLORADO, SALES TAX REVENUE BONDS; SERIES 1994B; PROVIDING THE FORM, TERMS AND CONDITIONS OF THE BONDS, THE MANNER AND TERMS OF ISSUANCE, THE MANNER`OF EXECUTION, THE METHOD OF PAYMENT AND THE SECURITY THEREFOR; PLEDGING SALES TAX REVENUES OF THE TOWN FOR THE PAYMENT OF THE BONDS; PROVIDING CERTAIN COVENANTS AND OTHER DETAILS AND MAKING OTHER PROVISIONS CONCERNING THE BONDS AND THE SALES TAX REVENUES; RATIFYING ACTION PREVIOUSLY TAKEN AND APPERTAINING THERETO; AND REPEALING ALL ORDINANCES IN CONFLICT HEREWITH Mr. James informed this Ordinance will allow us to purchase a public works site. The site we are looking at is Swift Gulch, approximately 55 acres, for a purchase price of $1.5 million. Last year our election authorized issuance of bonds in the amount of,$1.7 million; $1.5 of that was to be used to purchase the site and $200,000 set up a bond reserve and paid for the issuance of the-bonds.. The land contract stipulates that on October 15th $75,000 must be paid. If we do not close on the land, we will lose that $75,000. This schedule will allow us to close on the property by October 13th. We will have 2nd reading of the bond Ordinance on September 13th and then we have to wait 30 days to be able to close on the bonds and actually be able to close on the property. Our agreement with the property owner is that we really close on or before December 1st. Fleet Maintenance has been hired and they.have produced a few site plans showing how to utilize the site. Intermountain Engineering has been hired to do soil testing on the site. Councilor Hines motioned to approve Ordinance No. 94-18, Series of 1994 on first reading. Councilor Roof seconded the motion. The motion carried unanimously. Resolution NO. 94-25, Series of 1994, A RESOLUTION APPROVING THE PRELIMINARY AND FINAL PLAT OF SUNSET TOWNHOMES, A RESUBDIVISION OF LOT 78, BLOCK 1, WILDRIDGE, TOWN OF AVON, EAGLE COUNTY, COLORADO. Mayor Reynolds announced this is a public hearing. 2 Mr. Norm Wood stated that Sunset Townhomes Association has submitted an application for Preliminary Plan and Final Plat approval for the resubdivision of Lot 78, Block 1, Wildridge. This is a six-plex townhome project. The reason for the preliminary plat and public hearing process is that it involves more than four units, thus it can not be considered as a minor subdivision. Plans have been approved by the Planning and Zoning Commission. The project is essentially complete. The subdivision will allow them to sell the individual units. Councilor. Nottingham motioned to approve Resolution No. 94-25, Series'of 1994. Councilor Roof seconded the motion and the motion carried unanimously. Resolution No. 94-26, Series of 1994, A RESOLUTION ADOPTING THE ELECTION QUESTION Resolution No. 94-27, Series of 1994, A RESOLUTION ADOPTING THE ELECTION PROCEDURES INCLUDING CERTIFICATION OF THE ELECTION BALLOT Attorney Dunn-stated-both of these Resolutions arise out of,.a worksession two weeks ago with Dee Wisor, Bond Counsel to the-, Town. The first Resolution would implement'a particular provision in Amendment 1, adopted by the electorate almost two years ago. A portion of Amendment 1provides that,any local government in Colorado may place a measure before the voters, which, if it is approved by the voters, basically makes Amendment 1 inapplicable for a period of four years. That is the effect of this Resolution. If it is adoptedby,the Council and approved by the voters, it is somewhat of•a limited opt-out, because it does not opt the Town out of elections to incur bonded debt or to increase the sales tax or impose a use tax, as well as to increase the rate of property taxes. So, the effect of the election question would be to generally allow increases in the revenues from those revenue sources as a result of additional sales and inflation and so forth. The election question also clarifies an issue, with regard to the four year opt out provision, which is; what then is the spending base once that four year period is over. This could be considered to be the spending at.the time the election was held. or the spending base at the end of the four year period. And, in some what of a boot strap fashion, the question submitted to the voters provides that the voters determine what the spending base will be after four years, or in 1998, rather than 1994. Councilor Fawcett stated the language in the provisions which allow us a four year opt out from Amendment 1; the Council definitely agreed to that and felt it would make it more manageable for the Town's finances during that period. But, we also indicated that in the event we thought we should raise taxes of any sort, being real property, sales or use taxes, or issue further bonded debt, that we would definitely go back to the taxpayers for that. However, there is a provision in here that is in parentheses and I am not certain if it makes sense to me. It says that "except" for increases to pay debt service on outstanding general obligation bonds of the Town. Now this would mean to me that we could raise these taxes if we were going to use these proceeds to pay obligations; to pay the debt service on general obligation bonds previously issued. It seems to me, if Amendment l allows this without having to go to the voters then we don't need it in this particular provision. And, if Amendment 1 doesn't allow it, than I am not sure we shouldn't have to go back to the voters, if we need to raise these taxes, because that is the intent. We do not want to raise taxes unless we go to our voters. 3 • • Attorney Dunn stated it is my recollection that Amendment 1 is ambiguous with respect to increases in tax rate to cover debt service on outstanding general obligation bonds. So the inclusion of this language may serve to clarify an ambiguity. The other comment, I would have, is that we are dealing with debt service which is already fixed by virtue of the Ordinance authorizing the general obligation debt service at the time the debt was incurred. That being the case, I guess it would seem to me this would be a rather limited exception. Councilor Fawcett stated'it seems to me that if we; let's say that this Amendment is passed on our ballot November 8th, we could in effect, on November 9th raise sales taxes or raise real property taxes and ear mark those proceeds specifically to pay the debt service on already existing bonds. Now, we take the monies that we would have used to pay those and we put them to some other use. In other words, it doesn't indicate; all we have to do is just ear mark the proceeds of that increased tax to pay those bonds and we could raise taxes without going to the voter. Attorney Dunn stated I don't think I would interpret it that way. Councilor Fawcett stated you indicated this provision was ambiguous as to whether or not you needed voter approval which means that no one knows whether you can or can't. Mr. James stated that what has happened is that for debt that was issued before Amendment 1; alot of that was general obligation debt. This means if there are not sufficient revenue sources from other sources of revenues, you have to increase your property taxes in order to pay for that debt service. Councilor Fawcett interjected, or else go bankrupt. Or else, go to our voters as Amendment 1 requires and ask them to increase these taxes; which is what we really intended. Mr. James reiterated that prior to the passage of Amendment 1 as an example, we had $4 million in outstanding debt. We issued that debt prior to Amendment 1. When we issued that debt we pledged to the bond holders the full faith and credit of the Town of Avon as a general obligation of the Town. We told the bond holders that if there is any problems with.the Town being able to pay for that debt, the Town would increase it's property taxes to help pay for those bonds. Say, the Town had to raise it's mill levy by one or two mills; we would still be able to do that, according to-our Bond Counsel, for any debt that was issued prior to the passage of Amendment 1. Councilor Fawcett stated, so then we don't need this provision. Mr. James stated the Resolution is trying to clarify, in terms of Amendment 1; the Council would still take back to an election, even by opting out of Amendment 1, bonded debt and any increases in sales taxes and property taxes. We are trying to keep in line with that current exception that we.have. Without that, I think, people would interpret'it to mean that even for debt.that was issued prior to Amendment 1, we would not be allowed to increase our property taxes. Councilor Fawcett questioned if putting aside this Resolution totally in the Amendment that next week we could raise property taxes to pay general obligation bonds., Mr. James answered yes. And, there has been communities that have done'that. 'Councilor Fawcett asked if the Town of Avon could raise taxes without going to the voters right now for that purpose. Mr. James stated for debt issued prior to Amendment 1, yes. Councilor Fawcett stated he is not sure he agrees with that. But, as along as we, as a Council realize that we do have the possibility of raising taxes without going to the voters; and that is what we are passing on. Councilor Hines stated, but that is for a very specific instance. 4 Councilor Fawcett stated I agree; I wanted everyone to know that is the situation. Councilor Nottingham questioned if this is the actual question that will be on the ballot. Attorney Dunn stated this is the question that will be on the ballot. Councilor Nottingham stated she would like to see one voter who understands what that means after they read it; it is very confusing. Council's consensus was the wording is very difficult to understand. Discussion focused on verbiage of the question. Mr. James suggested that Dee Wisor, Bond Counsel, come before Council to explain. Council agreed to review this Resolution prior to September 13th, which is the date the ballot is to be certified with the County Clerk. Councilor Hines motioned to table Resolution No. 94-26, Series of 1994 and Resolution No. 94-27, Series of 1994. Councilor Roof seconded the motion and the motion carried unanimously. The next item on the Agenda under New Business was Election 1994 / Intergovernmental Agreement. Town Clerk Patty Neyhart-stated this intergovernmental agreement is basically the same, that we had%for the. 1992 election. There were a few concerns and after speaking with the County Clerk the only suggested change was on the first page; change "eligible" voter to "registered". With that-change, Staff recommends, approval. Town Clerk Neyhart distributed an updated calendar for election 1994. The ballot certification date is September 13th and early / absentee voting can begin on October 17th.'- Councilor Hines motioned approval of the Election 1994 / Intergovernmental Agreement with the following change; that the word "eligible" voter be change to "registered" voter. Councilor Hazard seconded the motion and the motion carried unanimously. Next item on the Agenda under New Business was Change Order #3 / Public Works Annex. Mayor Reynolds expressed a conflict of interest, turned the meeting over to Mayor ProTem Nottingham, and left the chambers. Mayor ProTem Nottingham presided and asked Mr. Larry Brooks to elaborate. Mr. Brooks informed the contractor recommended the changes.be incorporated into the project, and Staff agreed. The items were siding on the backside of the building, to install a dry well and sand trap drains for the floor, and to install steel plates for bracketing to support the garage doors. Total amount for these three recommended changes included in Change Order #3 is $1,735.25. Original Contract Price was $220,329.00. With all change orders, the total revised contract price is $223,780.69. Councilor Fawcett motioned approval of Change Order #3. Councilor Roof seconded the motion and the motion carried unanimously. Mayor Reynolds returned to the chambers and presided over the meeting. 5 • • Next on the Agenda was the Mayor Report. Mayor Reynolds asked, if any Councilmember is interested in the Colorado Municipal League Policy Committee appointment, to let him know. Mayor Reynolds informed that the U.S. Postal Service has allocated the funds to build the Avon Post Office. In order for them to take advantage of the money that is available, they have to move very quickly; actually the project has to be committed by September 16, 1994. Next on the Agenda was Other.Business. Councilor Nottingham announced that CDOT turned us down for the request of funds to help with our bus situation. Mr. James stated this will be reviewed with Tom Mouser;_ we-have been turned down three or four years in a row. Councilor Nottingham announced that Governor- Romer sent a Comprehensive Approach to Fighting Crime, dated July,`1994. Councilor Nottingham reminded that within the past month, Council passed an ordinance relating to open container law. This basically has to do with drinking alcoholic beverages in public. The Ordinance said if you would like to have an event in the park, you would need to get a special events permit for the Council. Councilor Nottingham stated that when she had a need for a social event in the park and looked into getting a special events permit she realized this wasn't the intent of the Council. She thought that if a group, a social group, perhaps a high school reunion or family reunion, wanted to have a picnic in the park-, they would come to the Council; ask for a permit and we would give them approval. The application for a special events permit is for a very select group; an incorporated non profit status selling liquor. The Town of Avon does not have a special application for asocial event; we are under the State of Colorado liquor laws. We inadvertently eliminated the opportunity for the high school reunion, the family reunion, etc. Mr. James asked for clarification; if this,is a private party, the general public is not invited, and they are not selling the liquor or beer; so, if it is a private party where the public is not invited and they are not selling it, can they not give it away at their private party? Town Clerk Neyhart stated in a private party they could, but as I understand it; and John correct me; it is a public park and we just; with that ordinance, they can't have an open container in the park. Mr. James stated no, we said they could not do that unless they got approval from the Town Council. Councilor Hines interjected approval from the Local Liquor Licensing Authority. Mr. James stated we were going to change it to the Liquor Authority, but I don't think that ever- happened. Mr. James requested a copy of the Ordinance. Councilor Nottingham interjected the who giving approval is not the concern; she is concerned of whatever board giving permission would be giving a special events permit. And, the only special events permit is the,one given out by the State that has real strict requirements that basically eliminates the social part of- the thing and relates to sale. We don't have a provision for the social limited guest thing in our park. Mayor Reynolds suggested providing a different permit for picnics, etc. Councilor Hazard stated he does not want to see high school kids with beers in the park. Councilor Nottingham stated the high school reunions are held ten years after graduation-. Councilor Roof-interjected you would still have to be of legal age. 6 Councilor Nottingham stated what we didn't do in the Ordinance is perhaps state two kinds of permits; special events permit which allows the sale.by non profits and the social.permit which is for the family'reunion, the company annual picnic, etc. Town Clerk Neyhart distributed copies of the Ordinance. Councilor Hines stated it is written in the Ordinance "by written authorization of the Liquor Authority"; we already have that ability to do that. If.they came before the Board and they said well, we'd like to hold this party and it is a private party; no sale; consumption is amongst that party, and not offered to the general public; as I read this as it stands, "except by written authorization of the Liquor Licensing Authority". Why can't we go ahead and do it? Councilor Roof agreed and stated it says in the Ordinance they do not need a special events permit. Mayor Reynolds agreed and felt we need some type Iof social permit; nothing complicated. What it should contain is their limitations;,stay within a designated area, date, time. Mr. James stated we could do that on our Park Permit; anybody that is going to serve or is going to have alcohol at a social type gathering we could amend the Park Permit. All that is needed is to put a check mark on this form for them to come before the Liquor Authority for permission. Council's consensus was.agreement to this process. Councilor Roof stressed detailing the designated area. Another item added to the Agenda under'Other Business was the Booster Club. Mr. James asked if Council wanted to purchase a 1/4 page ad for $200 to help the Battle Mountain Booster Club. Council's consensus was to support the Battle Mountain Booster Club with the purchase of the ad. Next on the Agenda was the Consent Agenda: a.) Financial Matters b.) Approval of the August 9, 1994 Council Meeting Minutes. Councilor Hines motioned to approve the Consent Agenda. Councilor Fawcett 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 Roof. The meeting was adjourned by Mayor Reynolds at 9:55PM RESPECTFULLY SUBMITTED: k Pa ty.Ney art own Clerk 7 r 0 ,8