Loading...
HomeMy WebLinkAbout1987-09-08 Support Documentation Town Council Work Session S Jill- VAIL TOWN COUNCIL WORK SESSION TUESDAY, SEPTEMBER 8, 1987 2:00 p.m. AGENDA 1. Discussion of Marketing of Vail through Business Licenses 2. Discussion of Proposed Ordinance No. 31, Series of 1987, an ordinance repealing and reenacting Chapter 3.40 Sales Tax of the Municipal Code of the Town of Vail, Colorado to provide for the self collection by the Town of Vail of the Town of Vail municipal sales tax and setting forth details in regard thereto. 3. Discussion of Colorado Association of Ski Towns (CAST) Questionnaire 4. Information Update 5. Other 6. Executive Session - Personnel Matter WORK SESSION CONTINUED UNTIL 7:00 P.M. 7. ERA Report on the Congress Hall 8. Adjournment VAIL TOWN COUNCIL WORK SESSION TUESDAY, SEPTEMBER 8, 1987 2:00 p.m. EXPANDED AGENDA 2:00 1. Discussion of Marketing of Vail through Business Licenses Charlie Wick Action Requested of Council: Provide direction to Town staff. Background Rationale: This is the staff follow-up to the marketing of Vail concept as presented by VRA. At the meeting, financial staff will present preliminary data and other information regarding potential funding structures for marketing through the business license method. Staff Recommendation: Staff recommendations will be given, if any, at the conclusion of staff's presentation. 2:30 2. Discussion of Proposed Ordinance No. 31 for Local Collection Charlie Wick of Sales Tax Steve Barwick Larry Eskwith Action Requested of Council: Discussion of local sales tax collection program and review/discussion of Ordinance No. 31 prior to consideration for first reading at the September 15 Evening meeting. Background Rationale: The Town staff had presented to Council the concept of local sales tax collections and requested authorization which was approved to prepare an ordinance for discussion and review. Town Council will receive this ordinance at the Work Session and Town financial staff will discuss the major areas of the ordinance with the Council. Staff Recommendation: Proceed with the first reading of Ordinance No. 31 at the September 15 Evening meeting. 3:00 3. Discussion of Colorado Association of Ski Towns (CAST) Ron Phillips Questionnaire " Action Requested of Council: Go over questionnaire and give consensus responses. Background Rationale: Alan Barbee, a member of the Steamboat Springs City Council, wants CAST to take a position on encouraging all ski towns to institute a lift ticket tax. There is much disagreement over the issue, so it was suggested that Steamboat Springs do a survey. Staff Recommendation: Staff recommends that the Council take a strong stand against CAST making this an issue. This is a local concern which should be decided in each community and CAST getting involved can only hurt our relationship with our own ski area and with Colorado Ski Country USA. Besides, we already have the 4% agreement with VA and have everything to lose and nothing to gain. 3:30 4. Information Update 3:35 5. Other 3:45 6. Executive Session - Personnel Matter 4:00 Work Session Continued Until 7:00 P.M. 7:00 7. ERA Report on the Congress Hall Jill McCarthy Tom Braun Action Requested of Council: Listen to report and ask any questions you may have. Background Rationale: (A copy of the report will be Federal Expressed to each Council member's home on Saturday, 9/5.) 9:00 8. Adjourn -2- a MEMORANDUM TO: Mayor Johnston, Town Council Members FROM: Charlie Wick cie-A DATE: September 3, 1987 RE: Funding for Marketing Pages 1-3 are for background, reference and information purposes. Page 1: Marketing of Vail Page 2: Small Group Responses Page 3: Preliminary Funding Sources from Town Council Meeting Pages 4-5: A summary schedule showing the existing VRA Business Categories/Investment Schedule and the business license fee structure for marketing from the Town of Breckenridge. Page 6 Business License Analysis Pages 7& 8 Town of Vail Business License Fee Options Page 9 Funding for Marketing-Cost By Category/Method ~ PREPARED ORIGINALLY FOR COMMUNITY CAPITAL PROJECTS MEETING FEBRUARY 10, 1987 TOWN OF VAIL MARKETING OF VAIL, DESCRIPTInN: Increase in the marketing of Vail as a year-round destination through improved and stabilized funding for the Vail Resort Association. PURPOSE: To increase destination stays in Vail, thereby improving the year-round health and stability of the local economy. BENEFITS: Increased sales tax revenue for Town of Vail. More shoulder season and summer business. Spreading of responsibility for marketing Vail to a broader base. Greater business prosperity. OTHER PROJECT INTERDEPENDENCY: Special events, information centers, trade shows, Congress Hall. PROJECT COSTS: Depending upon desired market penetration, an annual range of $500,000 to $1,000,000 is projected. OTHER INFORMATION: VRA CONTACT DAVID KANALLY 476-1000 ~ 1 SMALL GROUP RESPONSES • COMMUNITY CAPITAL PROJECTS MEETING FEBRUARY 17, 1987 PRIORIIY RATIN6 +f NUhBER +E ft AV6 RATING ff " kf CF ff AVEFA6E ff LESS I Of ff AVERA6E COHPOSITE PRUJECT „ 1; 2; 3; 4 t S~ 6; 7; 8; 4++RESPQNSES RAhk f} RAT1H6 RpNK ft RESPONSES RAKK it RANt: RAIIY. nARKETIN6 Or' YAIL „ 2; 4; 1; q~ ; 3; ; ; ef 14 1 ff 3.36 6 ff -10.64 1IF 2.67 1 AQUATIC CENTER 2; 2; 1; 1~ ip 3{+ 2,70 2{} -7,30 3 f~ 2.b1 1 VISITOR CEN.lIiUNICiFRI 6LD6!,' 4; 3; ; 1 f 21 1~ 1; ~ }f 12 Z ff 3.08 S fE -8,72 2 f{ 3.00 3 COh6RE5S HALL 2~ ~ 1 t ~ 2o 5 1 fE 3.00 3+f -2.00 5+t 5.00 4 ft f~ ff STREET I1IPRGV. - TOV S!iARE 1~ 2; 1 1 1~ ~ 1~ ~ }f 6 5{} 4.00 8 ff -2.00 5 t} 6.00 S FORD PARK 21 1 ; 211 ; 1~ ; 1 0 +f 6 5 ff 4.00 8 ff -2.00 S+t 6.00 5 i i i i i i ~f 41 RECREATIOtiAL PATHS 1~ ; 4; 2; y~ ~ ; }f 10 3 ff 4.10 22 ft -5.90 4 ff 6.33 7 ff ft ff~ COlri'ENTIOH FACILITY If 1~ 1~ 1: 3 ll ff 2.00 ! ft -1.00 4 ff 7.00 8 fE fF {f OGBSON ARENA PHASE II 2~ ~ i~ 1; ~ ; t 1~ tt 5 7 f+ 3.40 7ff -I.60 8 ff 7.33 4 ff f} ft N ALPINE 6AROEN 1~ 1 t { ~ 7 tt 2 14 {f 3.00 3 ft 1.00 11 IE 4.33 10 VAIL VILLA6E It1FRJVEKEhTS 1~ 1~ 2~ 1~ ff S 1 ff 5.40 15 ff ,40 14 }f 10.67 il fEOr^Lc' IfOVER 1~ i! 2 ld 4.00 8#f 2.00 13 {f I1.67 12 TP.ANSPORTATION ALTERNATiVE „ 0 1 1~ 1 1~ 2 14 ff 4.00 8 f~ 2.04 13 11.67 12 i i i ft ff ft DGHOVAN PFRK 1t 2~ ~ ~ t{ 3 I! {t 4.33 13 1.33 12 +f 12.00 14 PARKiti6 STRUCTURE ADOITION f 1~ ~ 1 tf 4 IQ *f 6.25 17 f# 2.15 15 +t 14.00 15 ff {f fF CEt1ETERY 2; 1; ; }f 3 I1 f+ 6.33 18 ffi 3.33 16 ft 15.00 16 ff ft SGFTBALL f[ELOS ; ; 1~ 1~ ff 2 14 ft 6.00 16 f* 4.00 17 ft 15.67 11 f# ff PARk;IN6 IHPROVEHENTS ; 1 ~ ~ 1 18 5.40 14 ft 4.00 17 I6.33 18 i i }f ff f} GOLF CAPACITY EXPANSION 1~ ~ +t 1 18 +E 1.00 19 6.00 19 +f 18.67 19 COt1RINED CON6RE5S HAII, 5' 1; 3; t; 2 2; ff 14 l#+ 3.24 6*1 -10.11 1 +1 2.67 1 DOBSON ARENA I CONVENTION FFCILiTY (Jf these alternatives Nere cosbined, they Mould be tied for the highest ranked project.l TOWN OF VAIL PRELIMINARY FUNDING SOURCES Town Council Meeting of 3-10-87 FUNDING SOURCES1 PROJECT N0. OF SECOND N0. OF THIRD N0. OF RATING PROJECT " PREFERRED RESPONSES PREFERENCE RESPONSES PREFERENCE RESPONSES '1 Marketing of Vail Bus. Lic. Fee 6 Sales Tax 4 Mill Levy 2 2 Congress Hall Capital Private. Part. 5~ Sales Tax(2,3) 5 -Bed Tax(2,1) 3 Operating Bed Tax 3 3 Unfinished Projects R.E.T.T. 7 (Does not include cemetery, streets or village improvements) 4 Visitors Center Sales Tax 6 Bed Tax(4,1) 5 Mill Levy 4 (Four responses of sales tax for reallocation of sales tax with mill levy replacement to general fund) 5 Golf Capacity UMRD--Request Preliminary Design of Katsos Property as a Golf Course 6 Parking Solution Dependent on Location and Financing of Convention Center 7 Aquatic Center Dependent upon final studies and scale of project 8 Village Improvements Village Improvement District most likely 1 Direct Private Participation in Funding would be the overriding funding source on all projects. 2 Combination of Answers for Direct Private Participation and Private Participation through a Special District for Commerical areas. _ 3-20-87 Current VRA Business Categories/Investment Schedule Lodges and Property Management Professional Food and Beverage Real Estate Sales & Management Retail Real Estate Development Financial Institution Utility Company Service Individual Supporter Allied Honorary Membership LODGES AND PROPERTY MANAGEMENT Annual: 39.65 each rental unit - minimum 10 units. FOOD AND BEVERAGE CORE/MIN. NON-CORE/MIN. Restaurant Seat with Lqr. 19.11 $12.50 Restaurant Set without Lqr. 13.10/330.27 9.92/264.22 Lounge 9.28/330.27 6.55/264.22 RETAIL 0-1500 1501-2500 2501-3500 3501-5000 5001-10,000 Core/Sq. Ft. .93 .79 .73 .67 .67 Non-Core/Sq. Ft. .48 .36 .31 .24 0 Core Maximum: $7,210 Non-Core Maximum: $2,060 Actual Square Footage = Total Square Footage Less 15% (storage) Actual Grocery Sq. Ft. = Total Grocery Footage Less 60% (min. 330.27) UTILITY: Annual = $726.59 FINANCIAL: Annual Deposits Formula $180-$5,150 4 SERVICE: Annual Business Volume Formula $330-$1,123 PROFESSIONAL: $145.21/member Minimum of $330.27 REAL ESTATE SALES: $142.21/salesperson and broker Minimum of $330.27 REAL ESTATE DEVELOPMENT: Annual $726.59 ALLIED: Annual $545.90 CURRENT BRECKENRIDGE ORDINANCE Annual Business License Fees For Marketing Accommodation (Rental) Studio $ 75 1 bedroom $100 2 bedroom $125 3 bedroom $150 4 or more $175 In-Home Business: Annual $50 Lodge: $100 per rental unit or $50 per bedroom whichever is less. Lodges with six or more employees also pay by employee. ~ All Other Businesses: Fee based on number of employees. # Emp. Fee Employee = Any person or combination of persons working 20 1-5 $100 or more hours each week. 6-10 200 11-20 300 21-30 500 30 or more 600 5-26-87 5 BUSINESS LICENSE ANALYSIS DESCRIPTION: A license set annually on any business within the Town of Vail in order to legally conduct business in the Town. YIELD: Fees could be set to equal amount of dollars necessary for marketing. LEGALITY: Legal for home rule cities. Vote by electorate not necessary. ELASTICITY: Strongly inelastic. INCIDENCE: A business license fee is regressive to business income. However, if a flat rate is imposed on type and size of business, it would tend to neutralize regressivity. CONTROL: Excellent local control. MARKET SIDE EFFECTS: Market side effects appear to be insignificant. CERTAINTY/PRE- DICTABILITY: Excellent predictability. ADMINISTRATIVE COST: Very low additional administrative cost to Town of Vail, $17,000 to $21,000 a year. BUSINESS ACCEPTANCE: Business opposition appears to be less than the support for this concept. POLITICAL: Would take ordinance adoption of Town of Vail. Voter approval not necessary. EQUITY: Fees would be collected from all business. This might be perceived as more equitable because 100% would participate as opposed to 60%. ~ 9-04-87 6 TOV BUSINESS LICENSE FEE OPTIONS CATEGORY OPTIONS Lodges and Property Management 1. By Rental Unit 2. By Rental Unit or bedroom, whichever is less 3. Separate accommodation unit fees and lodge unit fees In Home Business 1. Flat Fee(s) 2. Handle in other categories 3. Number of employees 4. Square footage Food and Beverage l. Similar or same methodology as current VRA 2. Square footage 3. Number of employees 4. Set fee Retail 1. Similar or same methodology as current VRA 2. Square footage only 3. Number of employees 4. Set fee Financial l. Square footage 2. Number of employees 3. Set fee Service 1. Square footage 2. Number of employees ,3. Set fee Professional 1. Fee per professional _ member 2. Number of employees 3. Square footage 4. Set fee 7 Real Estate Sales and Management 1. Fee for sales persons and brokers 2. Number of employees 3. Square footage 4. Set fee Real Estate Development 1. Set fee 2. Number of employees 3. Square footage Utility 1. Set fee Ski Company l. Set fee ~ 8 T(]VMARf::"f FUNI)INC FOF; I`1AF:KFTIh,a(3-COST BY CATECDFY/I"ILTWOri NUt°1BER TOTAI_ COSI" DOLLARS CryTEGC:IF:Y/hlett-iod EiUa. fiY METHOD F'ER RiiISEU FOOD EsEvE:F:NGE 74 by seat or- 5768 #•1 . 00 $5, 768. c;fci by accuGancy seat $10. 00 $J/ y 00O. 00 e:;r_1udcs Vra Faaij St3r-vice LODC-;E F'ROF'ERTY MraGh11V"I" bb b y uri i t or 4436 $1. s it,> $4 , 4.:'b .00 by bEci urii t $10, rtci $44,360, 00 FiETAI i_ 191 by sq. Tt, * 300000 $0. 10 $30100i>, iaC, b Y r:= mp e 910 $1 .c_> 0 ::F 91. c i. c:j t i Wrori TDv Retai l. Inv. f;E:,r-t. FI111ANGIAL b by sqe+te 27230 $0. ii; $:.?q7^=v0ir bY emp. ' 82 -a-1 , 00 $820 Oi) S E F:VI CE 141 tJ y S y. f`. 155135 $0. 10 :"F• 1.J a J 1.- i. 0I 1 by cmp. 931 $1 . t+0 $931. ti0 F'FiQFF:Si:[OP1A1_ 75 by sqa ft. 54717 $0. 10 $JyY/ 1. t;0 by emw. 285 -1-1 , 00 $285. c_j0 FiEFiL E ST e SAI_E=S, MI`dGMP,aT 29 . by sq. ft. 3150P $tl. 1(;l 1..."i1 . t?ii by ernp. 1SO $1.00 $180„ 00 RrF',L FSTF'i'TE DVLF'MNT 7 by sq.ft. 3500 $0.10 $350.00 by emp. 121 $1 . ir0 $1~.?1 . iy0 CJTILITY CO. 1 by f 1 at feE? $720 . 50 $726 e 5i j Sk:: I CORF'CJRAT I nN 1 by flat +ee-includes $148,000.00 $14S,000,00 Vai 1 fiuaci SE~_r-vi ce 59o Home oc_c. e;;clucied 9 ~ ~ , ~ s + b ~ ~ - - -2- C = T Y O F Citv Hall Accounts Payable 879-8552 City Attorney 879-8551 ~0~~ City Manager/City Clerk 879-2060 Community Development 879-7150 (Planning/Buiiding) ~ ~ Finance 879$550 Public Works 879-1805 Utilities Billing 879-6993 Parks and Recreation 879-4300 Box 775088, Steamboat Springs, CO 80477 Police 879-1144 Transit 879-5585 RECP~~~ r 4 , August 11, 1987 Mayor Paul Johnston Town of Vai 1 75 South Frontage Road Vail, Colorado 81657 Dear Paul: Enclosed please find a copy of a draft resolution concerning the taxation of ski lift tickets that I presented at the July 24, 1987, meeting of the Colorado Association of Ski Towns. Those members who were present, asked me to survey all CAST members and gather information regarding current tax revenues paid, municipal services provided and/or public purpose capital investments made by private ski industry corporations to the Cities and Towns they impact. Hopefully, I'll be able to present the summary data at the next meeting of CAST (and circulate the data by mail to those members who are unable to attend). Please complete the enclosed informational survey and return it to me by August 31, 1987 (I've enclosed a stamped, self-addressed envelope for your convenience). I'd be happy to include any comments you may have on the subject of lift ticket tax with the summary data. Thank you for your time and attention. Cordially, 6~ ~ ~ . Alan Barbee, Member Steamboat Springs City Council cc: Ron Phillips, Manager ~ Town of Vail A RESOLUTION OF THE COLORADO ASSOCIATION OF SKI TOWNS A RESOLUTION ENDORSING THE ADDITION OF SKI LIFT TICKETS TO THE LIST OF PRODUCTS AND SERVICES NOW COVERED BY COLORADO SALES TAX WHEREAS, Colorado Ski resorts sold 9.4 million lift tickets during the 1986-87 season generating $112.8 million in gross revenues for the ski industry (assuming $12 per lift ticket sold); and WHEREAS, winter tourism is a major industry in Colorado and further, the State of Colorado is interested in promotion and expansion of tourism in the State; and WHEREAS, winter tourism is a great burden on cities and .counties in which ski resorts operate a great burden to provide the infrastructure and maintain a clean environment for a peak population far in excess of the year-round, resident population of those cities and counties. NOW, THEREFORE, BE IT RESOLVED BY A MAJORITY OF THE MEMBERS PRESENT AT THE JULY 25, 1987, MEETING OF THE COLORADO ASSOCIATION OF SKI TOWNS, AS FOLLOWS= l. That appropriate Colorado State statutes and codes be modified to include ski lift tickets among those products and services covered by the Colorado Sales Tax, thereby generating in excess of $3.3 million annually in new sales tax revenues. 2. -That ski lift ticket sales tax revenues be isolated and identified as Ski Tourism Impact Funds and distributed according to the following formula: 20% State of Colorado Tourism Board for year-round promotion of Colorado ski areas. 20% County governments on a point-of-collection basis for improvement of roads and other facilities used by winter tourists and for improvements in the environment. , 60% Incorporated cities and towns on a point-of- collection basis for improvement of streets, utilities and other facilities used by winter tourists and for improvements in the environment. 3. That copies of this resolution be distributed to Governor Roy Romer; the members of the Colorado General Assembly; the Colorado Municipal League; Colorado Counties, Inc.; the members of the Colorado Association of Ski Towns; and appropriate media. PASSED, ADOPTED AND APPROVED THIS 25TH DAY OF JULY, 1987. x President Colorado Association of Ski Towns ATTEST: x Secretary Colorado Association of Ski Towns August, 1987 COLORADO ASSOCIATION OF SRI TOWNS LIFT TICKET TAX SURVEY 1. Does any or all of the property owned/controlled by a private ski industry corporation lie within your City/Town boundaries? Describe that portion of the property that is within your City/Town (i.e. base and ticket sales only, all ski runs, etc.). 2. If the ski corporation's property does not lie within the City/Town boundaries, does the ski corporation conduct business within the City/Town? Describe the business conducted within the City/Town (i.e, lift ticket sales, operation of hotel or retail businesses, etc.). 3. Does your City/Town currently tax lift tickets? Describe the nature and amount of tax. What was the total tax revenue from this source in 1986? 4. Does your City/Town levy any other tax(es) on the ski corporation's activities or properties? Describe the nature and amount of tax. What was the total tax revenue from this source in 1986? Page 1 of 3 COLORADC) ASSOCIATION OF SKI TOWNS; LIFT TICKET TAX SIIRYEY 5. Does the ski corporation make a voluntary cash contribution to your City/Town? Is this a regular, periodic contribution? What is the formula for calculating this contribution? What stipulations, if any, are made for the expenditure of these funds? 6. Does the ski corporation make a cash contribution to your county government? Is this a regular, periodic contribution? What is the formula for calculating this contribution? What stipulations, if any are made for the expenditure of these funds? 7. Does the ski corporation in part or in total pay for and operate any municipal services (i.e, bus service, utilities systems, etc.)? Describe the service(s) and the extent of the ski corporation's participation. ~ To whom is this service provided (i.e. tourists only, tourists and City/Town residents, etc.)? Page 2 of 3 . COLORADO ASSOCIATION OF SKI TOWNS; LIFT TICKET TAX SDRVEY 8. Has the ski corporation made any public purpose, capital investments in your region during the last 5 years (i.e. airport, City or County roads/streets, utility treatment plant, etc.)? List these investments: AMOtINT OF YEAR PROJECT CORPORATE INVESTMENT 9. Describe any other fiscal relationship between the ski corporation and local government that has not been touched on above. Completed by: Name Title ` City/Town - Page 3 af 3 PROCLAMATION OF THE MAYOR Town of Vail, Colorado AN ORDER PROCLAIMING SEPTEMBER 16, 1987 AS A CELEBRATION OF CITIZENSHIP DAY On September 16, 1987, Americans will have the unique opportunity to honor the Constitution of the United States in "A Celebration of Citizenship." In this year of the Bicentennial of the signing of the Constitution, it is fitting that we celebrate our heritage of freedom under law that was granted by this national charter. In 1787, the United States was a nation of 13 sovereign states, independent of each other, aligned along the eastern seaboard, from New Hampshire to Georgia. They were the United States in name only, barely held together by the Articles of Confederation. Only six years after the War of Independence, the new experiment in democracy was in danger of collapse. Most of the states had their own armies, printed their own currencies, and charged tariffs to other states for using their ports and roads. A Convention was called in Philadelphia, for the sole purpose of making revisions to the Articles. But national leaders like Madison, Hamilton and Franklin feared that unless a strong central government was created, the country would fall apart, forming independent republics, or coming under the control of foreign powers once again. Despite the odds against success, the writers of the Constitution were able to reach compromise after compromise, until they fashioned a blueprint for a new government - a government of the people. In the 200 years since that Convention, WE THE PEOPLE have been fine tuning that concept of republican government. Today, our Constitution is the oldest written instrument of national government in the world. We will be celebrating the Bicentennial of the Constitution's signing on September 17, 1987, and the establishment of the new government under the Constitution in later years, through the commemoration of the ratification of.the Bill of Rights in 1991. All Americans can participate in this celebration on September 16, during A CELEBRATION OF CITIZENSHIP. On this day, millions of students, across the country and in American schools abroad, will learn about the - blessings of liberty bestowed by our Constitution. All Americans can join our youth in recognizing and honoring the rights and responsibilities of citizenship. At 1:00 p.m., E.D.T., a live national radio and television broadcast from the west front steps of the U.S. Capitol will enable all Americans to join in the Pledge of Allegiance, as well as to hear the words of the Preamble to the Constitution. While our Town of Vail government is significant, it is the words of the Constitution that guarantee our freedoms and liberties. Through the reading of these powerful words, it is my hope that all Americans will. join in paying tribute to the treasured concepts of our governing document. NOW, THEREFORE, I, Paul R. Johnston, Mayor of Vail, do hereby proclaim September 16, 1987 as A CELEBRATION OF CITIZENSHIP DAY in Vail, and urge all citizens to take part in this once-in-a-lifetime celebration of our heritage. IN WITNESS WHEREOF, I have hereunto set my hand this day of , 1987. Paul R. Johnston -2- SALESTAX TOWN OF VAIL SALES TAX ESTIMATION WORRSHEET ; 1987 1987 ___MONTH______1980_______1981_______1982_______1983_______1984_______1985_______1986____;_ BUDGET ACTUAL Variance December 549,000 590,242 820,762 737,506 853,100 906,758 905,955 ; 1,131,000 1,167,280 36,280 January 626,448 514,102 675,186 696,752 742,262 881,304 890,585 ; 1,011,000 1,063,196 52,196 February 624,040 594,292 687,792 751,856 824,650 918,154 946,552 ; 1,062,000 1,135,786 73,786 March 683,000 697,464 853,648 977,828 1,084,814 1,187,520 1,316,652 ; 1,310,000 1,378,782 68,782 April 246,820 308,436 355,300 319,546 481,204 531,668 430,877 ; 539,000 425,961 (113,039) May 89,180 135,774 147,378 156,588 166,200 162,912 244,987 ; 224,000 212,127 ( 11,873) June 176,044 245,204 247,326 257,744 262,696 280,828 361,627 ; 361,000 331,948 ( 29,052) July 281,846 339,418 349,116 407,474 406,462 447,815 479,507__,___534,000 481,858 ( 52,142) _SUBTOTAL 3,276,378 3,424,932 4,136,508 4,305,294 4,821,388 5,316,959 5,576,742 ; 6,1-~2,000 6,196,938 24,938 ugust 268,052 332,724 348,756 384,338 402,792 386,985 512,513 ; 518,000 September 176,090 285,918 268,598 324,670 384,864 340,102 374,060 ; 435,000 October 137,376 225,024 223,830 198,614 206,248 209,282 237,504 ; 266,000 November_____140,630 210,254 245,894 281;704 310,588 229,083 376,657 ; 366,000 TOTAL 3,998,526 4,478,852 5,223,586 5,494,620 6,125,880 6,482,411 7,077,476 ; 7,757,000 6,196,938 24,938 _ . _ I i RETT RFviePd: 9/ 4/1987 TOWN OF VAIL REAL ESTATE TRANSFER TAX History and Budget 1986 1980 1981 1982 1983 1984 1985 1986 ; 1987 1987 BU DGET ___MONTH______-__ACTUAL ACTOAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ; BUDGET ACTUAL VARIANCE anuary 63,999 98,089 106,981 119,972 78,053 80,733 101,374 ; 83,191 130,231 47,040 February 40,595 69,018 105,024 132,220 86,289 170,052 64,906 ; 81,801 43,980 ( 37,821) March 69,886 126,935 109,533 137,820 62,693 63,831 92,557 ; 82,747 38,791 ( 43,956) April 76,855 94,653 65,900 103,526 173,321 90,396 182,743 ; 96,338 95,554 ( 784) May 42,738 84,324 54,663 90,599 96,006 228,673 June 98,651 ; 75,862 120,984 45,122 62,239 125,433 54,488 140,638 76,467 49,513 79,915 ; 71,266 73,782 2,516 July 49,367 186,110 104,262 68,539 157,598 88,528 70,441 ; 87,508 47,523 ( 39,985) August 79,859 115,499 71,282 97,806 58,937 32,860 100,182______72,969 61,137 ( 11,832) ___ubtotal_______485,538_ 900,061 672,133 891,120 789,364 804,586 790,769 ; 651,684 611,982 ( 39,702) eptember 59,800 113,992 49,332 96,746 64,671 48,516 108,167 ; 67,721 October 108,510 154,000 42,498 122,546 88,732 109,633 93,860 ; 93,572 November 102,623 107,768 81,698 91,385 105,109 74,909 89,047 ; 84,020 December ________142,662 13.3,867 110,911 56,533 81,890 333,139 106,695 ; 103,004 OTAL 899,133 1,409,688 956,572 1,258,330 1,129,766 1,370,783 1,188,538 ; 1,000,000 611,982 ( 39,702) Andrew W. Armstrong P. 0. Box 3422 Vail, Colorado 81658 August 25, 1987 Hon. Paul Johnston, Mayor Town of Vail 75 South Frontage Road Vail, Colorado 81657 Dear Yaul: As a Vai.l business owner, a member of the Vail Kesort Association and as one who has the opportunity through my profession to discuss various business issues with other Vail business owners, I am writing to ask that you vote against any permanent funding for the Vail Resort Association. There are several reasons why I believe that permanent funding is undesirable; however, one stands out above all others. I believe that we should retain our _ right of choice. If the Vail Resort Association believes that all businesses should belong, then it becomes manifest on that organization to market itself. If Vail business owners perceive benefit from membership in the Vail Resort Association, then they will join. Regardless of the rhetoric, what is proposed would result in involuntary payment and abrogation of accountability and control. Thank you for your consideration of this request. ' Ver truly your ~ l~~.l Andrew W. Armstrong' AWA/bd :F ctJl°pOPat1oi1 MARRIOTT HOTELS 2420 Camino Ramon David H. Rolston & RESORTS Suite 212 Vice President San Ramon, CA 94583 415/830-1031 August 11, 1987 Mr. Paul Johnston Mayor 1184 Cabin Circle Street Vail, Colorado 81657 Dear Mayor Johnston, Mike Robinson, our General Manager of the Mark Resort, told me that Vail has tentatively approved the concept of build- ing a publicly funded convention center, a facility which would directly compete with the existing private sector convention hotels. Eight years ago Marriott came to Vail to manage The Mark for Kaiser Morcus. At that time no publicly operated facility existed nor did we have any knowledge that one was being contemplated. Marriott encouraged Kaiser to expand The Mark - and to invest in a major ballroom. We think in the long term this is a good decision for not only The Mark but for the community, particularly as it relates to bringing valu- able group customers to the area during non-ski periods. However, the expansion of The Mark has not yet proven to be a profitable venture. For the community to support a publicly funded competitive convention facility substantially discourages additional investment. We would hope reconsideration would be given to public funding of this convention facility and the responsibility for any future convention facilities be left to the "risk" of private enterprise. rdially y , - , cc: Mike Robinson Kaiser Morcus i ~ CHAMBER FORUM LUNCHEON Date: september 1987 RE(;'p AUG 3 1 198 ~ Time: Cash Bar 11:30 a.m. Lunch at Noon Cost: $7.50 V.R.A. members $8.50 for Non-members Location: Westin Hotel Vail Associates President, Mike Shannon will be speaking on Vail Associates plans (marketing, up-grading, e tc.) for this upcoming season, as well as any long term plans underway. Please contact Stella Cruz at 476-1000 ext. 13, by September 4, 1987. ~ VAIL RESORT ASSOCIATION, 241 E. Meadow Drive, Vail, Colorado 81657 fi.~_1=1 LREVISED CALENDAR, 9-1-87 ELECTION CALENDAR - REGULAR MUNICIPAL ELECTION TOWN OF VAIL, TUESDAY, NOVEMBER 17, 1987, FOR FOUR EXPIRING TERMS (PAUL JUHNSTON, KENT ROSE, HERMANN STAUFER, GAIL WAHRLICH-LOWENTHAL) Invo of uail. 75 south irontage road offiCe of the town manager vail, colorado 81657 (303) 476-7000 AUGUST 19, 1987 FIRST DAY 70 ACCEPT APPLICATIONS FOR ABSENTEE BALLOTS. SEPTEMBER 28, 1987 FIRST DAY TO CIRCULATE NOMINATION PETITIONS - TEN SIGNATURES OF REGISTERED ELECTORS OF THE TOWN OF VAIL REQUIRED. ~~QD•~S~YY'V'~,~ OCTOBER 19 , 1987 , LAST DAY TO CIRCULATE NOMINATZON PETITIONS. PETITION MUST BE TURNED IN T(i THE TOWN CLERK BY 5:00 P.M. (CLOSE OF BUSINESS). MUST BE SIGNED BY CIRCULATOR AND CANDIDATE. OCTOBER 16, 1987 DEADLINE TO ESTABLISH RESIDENCY WITHIN THE TOWN OF VAIL TO QUALZFY AS REGISTERED ELECTION FOR THIS ELECTION. OCTOBER 20, 1987 COUNCIL TO APPpINT ELECTIOPl JUDGES/CLERKS AT EVENING MEETING. OCTOBER 23, 1987 DEADLINE TO REGISTER TO VOTE AT NOVEMBER 17, 1987, REGULAR MUNICIPAL ELECTION. OCTOBER 26, 1987 LAST DAY TO WITHDRAW NOMINATION PETITION. NOVEMBER 2,,1987 PUBLICATION ELECTION NO'fICE TO BE SENT 1'0 THE VAIL TRAIL FOR.PUBLICATION NOVEMBER 6 and 13, 1987. NOVEMBER 6, 1987 POST NOTICE OF ELECTION AT MUNICIPAL BUILDING. NOVEMBER 6, 1987 BALLOTS MUST BE IN HANDS OF THE TOWN CLERK. NOVEMBER 6, 1987 CANDIDATE EXPENSE STATEMENTS DUE. NOVEMBER 12, 1987 CERTIFIED LIST FROM COUNTY CLERK DUE 70 VAIL MUNICIPAL = CLERK. NOVEMBER 12, 1987 LAST DAY TO APPLY FOR ABSENTEE BALLOT. NOVEMBER 16, 1987 DELIVER ELECTION SUPPLIES TO THE JUDGES. NOVEMBER 17, 1987 ELECTION DAY. DECEMBER 17, 1987 CANDIDATE EXPENSE STATEMENTS DUE. . . ~ . . C,~ ; KEYSTONE RESORT C0NVENTION ~ CEleTTER - . L ~ . ~ . - ; The Setting Keystone is managed Uy,Keystone Resorts Management, Inc., awholly owned subsidiary of the Ralston I'urina Companv and has been developed with special care to preserve the natural Ueauty of Arapaho National Forest. Keystone's long-term commitment to quality and service has earned the resort the prestigious ArW Five-Diamond Award and Mobil Travel Guide's Four-Star rating since Opportunity is the best 1977 Both honors reflect superiority of The Benefits facilities, senice and accommodations. Keystone's goal is to continue our way to describe the position In addition, Keystone, for the last two positive momentum and assert our position of Keystone Resort. }'ears, has received the Pinnacle Award from as one of the premier resorts in North For the third eonseeutiue SuccessfirlrYleetings magazine, whose read- America. ership selects the 150 top facilities in the The new Keystone Convention Center year, Keystone is the third United States. should f:ivorably impact the walue of the most popular ski destination resort by impro«ng the financial perform- The Need ance for its lodging base and its revenue in North America. The highest potential for additional centers' Ke stane ex erienced room nights lies in the groNving demand for y p Esisting Keystone meeting facilities an 11% inerease in skiers conferences, which is presentlv the second are now fullv utilized during the period largest business segment at Keystone. when most_national meetings are held this past season, the largest A lack of ineeting space has resulted (April to 1Vovember). The availability of inerease of any Colorado in an average yearly turn-down of S3.3 new meeting facilities during that period . nullion in lodging rental revenue for the can substantially improve the resort at a resort. And, eondominium last four years' Past groups have outgrown time when improvement is most needed' rental nights improued by the meeting facilities while new business Lodging revenue forecasts from con- 30% ouer last year~S p@I~OCfII- attracted by Keystone's arrienities ancl repu- ference attendees indicate that Keystone tation cannot be accommodated. conclominiunz owners will receive appro?1 i ance, with a 23% inerease in Keystone's meeting facilities must be mutely $28 mi[lion in additiaTal net rcmtal gross rental revenues.' competitive in the national meetings mar- revenues (projected revenues less manage- ket or millions of dollars in potential revenue ment fees and all ro ected surchar es The addition of the Key- p i m ~ will continue to be lost, and the resort's the eight years following the completion of stone Musie Festiual, featur- reputanon, rather than maintaining a growth the Keystone Convention Center' ing the National Repertory curve, will stagnate. Market research indicates that up Orchestra, has been success- co 80°~> of Keystone conference attendees The Opportunity anticipate returning to Keystone for ful beyond all expeetations. 1'he destination resort segment of the «cations' Rettirning gLiests substantially This is a most exeiting time national meetings market is a $6 billion-per- increase room rentals in the lucrative }ear business, and fgowing. Yet, with all ihat destination vacation market' T1iese incre- ' for the resort. Keystone is Keystone has to offer, it is not getting its mental revenues from mturning guesu are on a threshold that ean open share of this business. in aeldition to the net rental revenue pro- Keystone's conference facilities are ection t<>r conference ou s cited abo~~e. more doors of opportunity. not of sufFicient size to host national meet- ~ ~ p Adclitional benefits:' The keyis lhe Keystone ings. The current facilities at the Keystone . Improves resort guest nux C011/BI'EIICE CBOtBC Lodge can accommoclate only 400 persons . Improves facilities/guest senice levels in a meeting/banquet setting, wtule the . perniits gceater flexibilihy to market national meetings avercrge is over 1,000 resorC in economically ad%ant:iged persons for such events. regicros/markets With a major convention center • Enhances national recognition likely to open in Derner in the nest three . Imprcves overall resort Valur and image years, KeNIstone can benetit from the nation- . Opens new ~,*uest/visitor mar6ets wide effort to attract Nisitors to the state. (inducling real estate) Keystone's location in the heart of the Colo- rado Itocl:ies, just 75 nules from Denver's Stapleton rtirport, gives it a significant edge in the fast-growing conterence market for resort locations. The Economic Facts Funding Surcharges Keystone management's aggressive For the past seven yezrs, the primary The conference room surcharge will and innovative marketing program is reason the Keystone Convention Center has apply only to conference rti€;hts acttiall}expected to generate 100,000 room nights not been built is the fact that it is an attrac- generated and zvrll not apply until the Con- for the 775 Keystone-managed condomini- tion that creates opportunities for lodging ference Center is completed in the summer ums this fiscal year' and other protit centers but does notgeizer- of 1989. Of these room nights, about 25,000 ate income in and of itself. Keystone will adjust the surcharges (25% of total room nights) will be from Aspects of the plan to fund the builcl- following the amortization of the (febt obli- conference business generated through ing, purchase and operation of the Keystone gation upon the Ke}lstone Com•ention etisting meeting facilities' T'he Keystone conference facilities which affect condo- Center at a level necessary to support con- Lodge will also receive a comparable rnim- minium rentals are: tinued management, operations, marketing, ber of room nights' a) A guest-paid facilities surcharge repair and maintenance, and if appropriate, 111e neAv Keystone Convention Center (3.9% based on projected funding require- eYpansion of the conference tacilities. is projected to generate 30,000 additional ments) added to all resort sales on mer- conference room nights in its first year of chandise, goods aund serNices on which a Future Keystone Growth operation, increasing to 65>000 additional 51 % Colorado state sales tax is preseiltly heystone managenlent believes that conference room nights in the fourth year paid. T1us surcharge may be increased to a strong performance of the resort and its of operation' maXimum of 7.9% if conference f:icilihy lodging operations is the key to Keystone's elpenses exceed projections. Keystone's fiiture s,nownh. 'I11e Tendertbot Ciunpground The Facility total sales ta.ties and surcharges are com- was selected as the best available land to Keystone's new state-of-the-art parable to the total sales taxes and/or sur- effectivelv meet this goaL Keystone is com- Convention Center will Ue second in size charges leNied in competitive resorts" mitted to a resort business plan to improve only to the Broadmoor in Colorado Springs b) A 10% conference room sur- the overall «lue of the resort. in Colorado°s resort locations. charge applied to all conference room The Convention Center will add nights at Keystone Resort. rlfter tlus sur- nearly 30,000 sq. ft. of ineeting space (in a charge (similar, in effect, to a travel .igent's total facility of approacimatel), 50,000 sq. fr.), commission) is deducted from the gross to the 14,000 sq. ft. of ineeting space pres- room revenue, Keystone Property Manage- ently utilized at the Keystone core confer- ment and the condonunium owner will ence facilities. split the remaining hinds in accordance The Convention Center Mll be located with Keystone's rental management northeast of Keystone Lodge in the Tender- agreement. foot Campground site. Included in tlus plan is a new Keystone registration desk/ • . TEN,,,, TowxxoosE: .f•• : ~ ~ hospitality center which may be located at ~ the west entrance to the Kevstone Resort. _ ~ ~ / ~ \ ~ `,i ~ ~ ~ ~ - OuicKSUr¢nT~ fnnl ~rooiA~ s ' Re~sfone - • Keystone Lod9e Conference FacilitY ~Pafk109 L1111EEIOE NILLOWS ' FlroSUtlon Taanfs Cemer ladoor IENRWEE 1 ~ couns roNTUura ' +¢oNE heySTOlle I17afl:If;elllLtl[ 1S CO17ti1C~C:CItIg ra• °.i ~ f ' incorporating the purchase of the esisting ~ .j r`E ~Op6E •~~=~`_--e~ ~ ~ OEC4NR coiiterence tacilities in Keystone Lcxis;e into r ~o . Pocill .1 SIIUSId1.7IN' COIPOCatIOll 1Vt11Ci] wlll OwI] all - - ~Poal ' . c . `I~-•~Ba - ' ~ of the resort:5 conference facilities. MI ~,~oa~~•` ~r ~I ~ seve he}'$tnl7C'. I.OUgCR,1ll ~)l' CeC~U1CCU tn ' pool~ 0 'P~ EDfiEWATER - 6ronnES jna+. / . _ _ pR6ENTINE Ah~r pay tbr use of all Kcystone cotifercnce t.iCII- LoosEraLe I, itics on the sam1e basis iis Keystone-lnanagecl BOYESiEAD WILD IRISXYIIM ~Poo, - ~ ~r+eon. ea,e COndOIIIICIIUTIl pPOpCCUCS. ROMINISTRATION. ea. eo•~ . , , • ' . . PERSONNEL.i ~ aies CONOOMINUM 1~fnm.p~'d ~1, IOX RFfiISTRAT EOOA 4~ - - . " ' . _ . Pool. SPRINB . . ' . _ . ' , . - Keystone Commitment Rental Agreement Rider Keystone is committing to surcharges A Rider to Keystone's rental manage- on its state t.UYable income streams for the ment agreement authorizing the surcharges entire life of the Conuention Ccmter debt. is needed bNl November 1,1987, in order to Keystone's conferuwcefacilitl; inclatd- meet the implementation schedule. ing larul cmd rewenues, will cilso be conamit- If a sufticient nuinber of Itiders is not tecl as colkatercrl to secuy e the Convention received by the November 1 date, the Center debt. Comrention Center will be delayed for a Keystone management Nvill address minimum of one year, with a high probabil- all aspects of the business plan needed to ity that the oppornuuty for the facility in the iuacc; the new Keystone Convention Center Keystone Village area will be lost entirely. a re:ality~ The key aspecu include: rUry Keystone-managed rental prop- Summary • Financing erty owner executing the Rider for his/her Keystone Resort needs to be compet- • Convention Center design, engineering property by the November 1 date will itive in the national meetings marl:et and and constniction receive ct guciranteett cap on the confer- can only achieve this goal bNbuilding the • Resort and conference marketing ence facilin~ surcharge of 10% during the Ke~~stone Convention Center. and sales entire period he/she oNvns the property, pro- Asa Keystone properh- o~vner, you • Integrated resort-wide transportation viding the property remains on the rental «n realize the opporni?tity to improve the system program. numher ot rental niomts and revenue Nlour • Central resenations and telephone Any owner Nvho returns an executecl condonvnium receives' 1'our acceptance of systems Rider by the November 1 date zuill be able a. market-competitive, gtrestpard f icilities • On-site conference coordination and to transfer the rap to a new owner of the 5urcharge applied November 1,1987, and services property iY the unit is sold prior to the open- yoLlr acceptance of the conference room • Securihy ing of the Conterence Center. surcharge to be applied in the sununer of • Conference food and beverage heystone can nla:e no assurances 1989 (which accnies solely on acnial • rVl other resort support facilities about the availability of its rental manage- conference rental tughts vou receive) is the • Managemetu and aclequate statf necessary ment senices, inclucling accessibilitv to single contribution needed from }-ou to to properly generate and ser~ice the its conference facilities, to properties not develop a high-quality com~ention center at business. included in its rental program by November hev5tone. 1,1987. . NN'e can continue heystone's positive Implementation Schedule' momenttim and improve the performance Property management agreement Limited Availability of the resort and the overall value of our rider signed. 3.9% guest paid facilities In order to ensure thaC participating properties' An informational hot line has surcharge starts November,1987 condonuiuum owners receive the entire been established to help ans,%ver aclditional Secure local goverrunent approvals; benetit of the cot-derence facilities fiom both coi~terence attendees and ~~ication 9Llestions ~~ou ma}r have. complete architectural and engineering To ensure ~our ~?rtici ~tion in this ,vork; start construction Spring,1988 gL1ests, Keystone Property Management can y p` esciting opportunit}~, please rehirn your CONVENTION CENTER OPEIVS; only manage uruts (other than maintenance 5igned Ricier to tl~e rental management 10% conference room surcharge units) subject to the 3.9% guest-paid facili- ,l~.eement to Ke}~stone Resort Propert}~ starts . . . . . . . . . . . . . . . . . . . . . Fall, 1989 ties surcharge and the 10% conference Nlanagement Company ofYices as soon as room surcharge. Property Owner Commitment possible, but no later than November 1,1987 The business and financing plan for 'Based on information and t'mancial the Keystone conference facilities requires projections prepared by Keystone management, which are not assured no enczrmbrccnce upon an owner's property. and cannot be guat-anteed. A property oNviier mwry tc"ninate lus/ her rental managemen[ agreement at any Surcharge Surcharge Projection timc upon siS m~~ntliS'taotlce. Typical Rental Property' Present noadded room nites(b) (first year) (c) A property owner's pocencial d<>wn- Conference Room Revenue (a) $4,000 $4,000 . $ 9,000 sidc is nunimal, even if no adclitional room Other Room Revenue 12,000 12,000 12,000 nights are generatecl by the Conference Centcr' Total Room Revenue 16,000 16,000 21,000 The rsample to the ri_Q It illus[rates Conference Room Surchage 0 -400 _ -900 the effect on Net 12oom Revcnues fox a Adjusted Room Revenue 16,000 15,600 20,100 npical rental property basecl on Kcystone's Rental Management Fee -8,000 -7,800 -10,050 first }lear projection. Net Room Revenue $8,000 $7,800 $10,050 (a) Assumes 25%of Total Room Revenue is generated by conference business. (b) Assumes no additional rental nights generated by Keystone Conference Center. (c) Management projections based on equal distribution of 28,300 additional condominium conference room nights to the 775 Keystone-managed condominium units in first year of operation' Projections do not include potential additional business from conferees returning for vacation. I I i i il- ~ ~ i - i ~ ! 1- ~ I ~ ~ I ~ 1 . . i- ° ~ • ~ . 3 ~ . ~ - ~ ' " ~ . ~~'1 % 1; 'j! J~:T'!~~ ~ ~rl:: i~~ ~j~ o • ~ . '7 /r-~i~T:}.,- ''~.d!f` (~r • `~t{ ~i .K''t,~j` r j.~. - yl ' r~' ' f./ . , 3c J3~s~ . ~ ~J ~~W- ..J~ C,~'~~i, ' .l~{~ . ~~tY : . ~ ~ •.~t J . ~,.:I.; :'~4~t_ ~~~~~r~ , J...~l~; . y~ 1. .~cst~ . • C. ~ ~f'r• j..r::, Y~,< • r. , ' r~ ~Y _ ` ~ ~ - ~`•~E`c,_'~-;:~ 1-- _ . . , . ' - - > - ~ ' ~ ' - - ~ _ - ` - . . , i., . > ' - _ s~- ; _ ' ~~~~C ~~~yi' ~i•:~.~i ~ ' - ' j'~',r•~::~. . . ' - - _ M~ JY.• S ~ . M':~ ~N,~.w. ~ _~(ti• ~ ' . - .E~ ~ . . ~ . . . ' ~ . . : . . ~ ~ ? . ' - . ` ,ii „~I~~:iJ- • ~ . . . ~ . . ~ ~'~=i:: ~ • ^ f.~,.sfd-,r1: ~ . . qi,'••, . . ~ - • ~ ' . =6 . ~ , _ . , „ . _ ' . . . . _ i The Museum of Modern Art - ~ ~ 1 1 West 53 Street, New York, N.Y. 1 1 ~ USq . - 22 r1 , r ~~••~~Illllim`;i-. v PA wac ~ JA wixld 601O C~ Jma11 qL aiuilte; wAr o a~. a~ 6 lui . ~ ~ ot. w~ ~t le~ , o RECO AUG 3 11%7 . k Henry Moore. British, born 1898. Fomily Group. 1948- S 49. Bronze, 591/4 X 461/2'; ot base, 45 x 29'/e". A. Conger Goodyeor Fund. 9392 0 - - - e t ORDINANCE N0. 31 Series of 1987 AN ORDINANCE REPEALING AND REENACTING CHAPTER 3.40 SALES TAX OF THE MUNICIPAL CODE OF THE TOWN OF VAIL, COLORADO TO PROVIDE FOR THE SELF COLLECTION BY THE TOWN OF VAIL OF THE TOWN OF VAIL MUNICIPAL SALES TAX AND SETTING FORTH DETAILS IN REGARD THERETO. WHEREAS, the Town Council has determined that the Town of Vail will realize economic benefits if the Town itself rather than the state of Colorado becomes the collecting agency for the Town of Vail Municipal Sales tax. NOW THEREFORE, be it ordained by the Town Council of the Town of Vail Colorado as follows: 1. Chapter 3.40 Sales Tax is hereby repealed and re-enacted to read as follows: 1. GENERAL PROVISIONS 3.40.010 Short Title. The ordinance codified in this Chapter 3.01 shall be known as the Town Sales and Use Tax Ordinance. 3.40.020 Definitions. As used in this Chapter 3.40, unless the context otherwise requires, the following terms shall have the following meanings: (1) "Access services" means any charge by local telephone exchange companies to providers of telecommunication services or to their customers for use in providing the telecommunication services of such providers. (2) "Acquisition charges or costs" includes "purchase price," as defined in Section 3.01.020(27). (3) "Auction sale" means any sale conducted or transacted at a permanent place of business operated by an auctioneer or a sale conducted and transacted.at any location where tangible personal property is sold by an auctioneer when such auctioneer is acting as agent for the owner of such personal property or is in fact the owner thereof. The auctioneer at any sale defined in subsection (30) of this Section, except when acting as an agent for a duly licensed retailer or vendor or when selling only tangible personal property which is exempt under the provisions of Section 3.01.180, is a retailer or vendor as defined in subsection (28) of this Section, and the sale made by him is a retail sale, as defined in subsection (29) of this Section, and the business conducted by said auctioneer in accomplishing such sale is the transaction of a business as defined by subsection (4) of this Section. . (4) "Business" includes all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect. (5) "Charitable organization" means any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in any political campaign on behalf of any candidate for public office (including the publishing or distributing of statements). (6) "Town Attorney" means the attorney or attorneys for the Town. (7) "Town Clerk" means the clerk of the Town. (8) "Town Council" means the council of the Town. (9) "Town Manager" means the manager of the Town. (10) "County" means Eagle County, Colorado. (11) "County Clerk and Recorder" means the county clerk and recorder for the County. (12) "Department of Revenue" means the department of revenue of the State. (13) "District Court" means the district court in and for Eagle County, Colorado. , (14) "Doing business in this Town" means the selling, leasing, installing, or delivering in this Town, or any activity in this Town in connection with the selling, leasing, installing, or delivering in this Town, of tangible personal property by a retail sale as defined in subsection (27) of this Section, for use, storage, distribution, or consumption within this Town. This term includes, but shall not be limited to, the following acts or methods of transacting business: (a) The maintaining within the Town, directly or indirectly or by a subsidiary, or an office, distributing house, saleroom or house, warehouse, or other place of business; and (b) The soliciting, either by direct representatives, indirect representatives, manufacturers' agents, or by distribution of catalogs or other advertising, or by use of any communication media, or by use of .the newspaper, radio, or television -2- advertising media, or by any other means whatsoever, of business from persons residing in this Town and by reason thereof receiving orders from, or selling or leasing tangible person property to, persons residing in this Town for use, consumption, distribution, and storage in this Town. (15) "Finance Department" means the finance department of the Town. (16) "Finance Director" means the Administrative Services Director of the Town. (17) "Food" means food which is advertised or marketed for human consumption and is sold in the same form, condition, quantities, and packaging as is commonly sold by grocers. The term includes, but is not limited to, cereals and cereal products; milk and milk products; meats and meat products; fish and fish products; eggs and egg products; vegetables and vegetable products; fruits and fruit products; sugars, sugar products, and sugar substitutes; coffees and coffee substitutes; teas, cocoa, and cocoa products; spices, condiments, salt, and oleo margarine. (18) "Gross taxable sales" means the total amount received in money, credits, or property, excluding the fair market value of exchanged property which is to be sold thereafter in the usual course of the retailer's business, or other consideration valued in money from sales and purchases at retail within this Town , and embraced within the provisions of this Chapter 3.40. The Taxpayer may take credit in his report of gross sales for an amount equal to the sale price of property returned by the purchaser when the full sale price thereof is refunded whether in cash or by credit. The fair market value of any exchanged property which is to be sold thereafter in the usual course of the retailer's business, if included included in the full price of a new article, shall be excluded from the gross sales. On all sales at retail that are valued in money, when such sales are made under conditional sales contract, or under other forms of sale where the payment of the principal sum thereunder is extended over a period longer than sixty (60) days from the date of sale thereof, only such portion of the sale amount thereof may be counted for the purpose of imposition of the tax imposed by this Chapter 3.40 as has actually been received in cash by the Taxpayer during the period for which the tax imposed by this Chapter 3.40 is due and payable. (19) "Mayor" means the mayor of the Town. (20) "Modified computer software program" means that one of the following elements must be present: (i) the preparation or selection of the program for the customer's uses requires an analysis of the customer's requirement by the vendor; -3- or (ii) the program requires adaptation by the vendor to be used in a specific output device. (21) "Motor vehicle" means any motor vehicle, trailer, semi-trailer vehicle, trailer coach or mobile home which is primarily designed to be operated or drawn upon any highway. This definition shall not apply to vehicles owned and operated by any department of the federal government or State government or any other agency or political subdivision thereof, fire-fighting vehicles, Town vehicles and farm tractors, farm trailers, hay balers, combines and other heavy movable farm equipment primarily used on farms and not on highways, and road rollers and road machinery temporarily operated or moved upon the highways. ~ (22) "Person" includes any individual, firm, partnership, joint venture, association, corporation, estate, trust, receiver, or any group or combination acting as a unit, and includes the plural as well as the singular number. (23) "Purchase price" means the price to the consumer, exclusive of any direct tax imposed by the federal or State government or by this Chapter 3.40, and, in the case of all retail sales involving the exchange of property, also exclusive of the fair market value of the property exchanged at the same time and place of the exchange if such exchanged property is to be sold thereafter in the usual course of the retailer's business. (24) "Retailer" or "vendor" means a person doing a retail business known to the trade and public as such, and selling to the user or consumer, and not for resale. (25) "Retail sale" or "purchased at retail" or "selling at retail" includes all sales, except wholesale sales, made within the Town and all sales resulting in delivery to users or consumers within the Town by retailers and vendors located outside the Town. (26) "Sale" or "sale and purchase" includes installment and credit sales and the exchange of property as well as the sale thereof for money, every such transaction, conditional or otherwise, for a consideration, constituting a sale, and the sale or lease of those services specifically enumerated in this Chapter 3.40 as taxable, including: (i) gas, electric and steam services; (ii) modified computer software services; and (iii) the leasing of tangible personal property, the transaction of furnishing rooms or accommodations by any person, partnership, association, corporation, estate, receiver, trustee, assignee, lessee, or person acting in a representative capacity or any other combination of individuals by -4- . , whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, apartment hotel, lodging house, motel, condominium, townhouse, hotel, guest house, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, under any concession, permit, right of access, license to use, or other agreement, or otherwise. "Sale" or "sale and purchase" excludes: (a) A division of partnership assets among the partners according to their interests in the partnership; (b) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all of the corporation's outstanding stock, except qualifying shares, in proportion to the 1 assets contributed; (c) The transfer of assets of shareholders in the formation or dissolution of professional corporations; (d) The dissolution and the pro rata distribution of the corporation 's assets to its stockholders; (e) The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation; (f) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation to a parent corporation or to another subsidiary which is owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets; (g) A transfer of a partnership interest; (h) The transfer in a reorganization qualifying under Section 368(a)(1) of the Internal Revenue Code of 1954, as amended; (i) The formation of a partnership by the transfer of assets to the partnership or transfers to a partnership in exchange for proportionate interests in the partnership; -5- (j) The repossession of personal property by a chattel mortgage holder or foreclosure by a lien holder; and (k) The transfer of assets between parent and closely held subsidiary corporations, or between subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share-by-share basis, when a tax imposed by this Chapter 3.40 was paid by the transferor corporation at the time it acquired such assets, except to the extent provided by Section 3.40.140(1) . For the purposes of this paragraph (k), a closely held subsidiary corporation is one in which the parent corporation owns stock possessing at lease eighty percent (80%) of the total combined voting power of all classes of stock entitled to vote and owns at lease eighty percent (80%) of the total number of shares of all other classes of stock. (27) "School" means an educational institution having a curriculum comparable to grade, grammar, junior high, high school, or college, or any combination thereof, requiring daily attendance and charging a tuition fee. (28) "State" means the State of Colorado. (29) "Tangible personal property" means corporeal personal property. (30) "Tax" means either the tax payable by the purchaser of a commodity or service subject to tax, or the aggregate amount of taxes due from the vendor of such commodities or services during the period for which he is required to report his collections, as the context may require. (31) "Taxpayer" means any person obligated to account to the Finance Director for tax collected or to be collected under the terms of this Chapter 3.40. (32) "Wholesaler" means a person doing a regularly organized wholesale or jobbing business and known to the trade as such and selling to retail merchants, jobbers, dealers, or other wholesalers for the purpose of resale. (33) "Wholesale sale" means a sale by wholesalers to retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers not for resale; the latter types of sales shall be deemed to be retail sales and shall be subject to the provisions of this Chapter 3.40. 3.40.030 Confidential Nature of Returns. (1) Except in accordance with judicial order or as otherwise provided herein, the Town Manager, the Finance Director, and their agents, clerks and -6- employees shall not divulge any information gained from any return filed under the provisions of this Chapter 3.40. (2) The Town officials charged with the custody of returns filed pursuant to this Chapter 3.40 shall not be required to produce such returns or evidence of any matters contained therein in any action or proceeding in any court, except on behalf of the Finance Director in an action under the provisions of this Chapter 3.40 to which the Finance Director is a party, or on behalf of any party to an action or proceeding under the provisions of this Chapter 3.40 or to punish a violator thereof or pursuant to any judicial order in which event the court may require the production of and may admit in evidence so much of such returns or of the facts shown thereby as are pertinent to the action or proceeding and no more. (3) No provision of this Section 3.40.030 shall be construed to prohibit the delivery to a Taxpayer or to his duly authorized representative of a copy of any return'or report filed in connection with his tax, nor to prohibit the publication of statistics so classified as to prevent the identification of particular reports or returns and the information contained therein, nor to prohibit the inspection of the Town Attorney or any other legal representative of the Town of the report-or return of any Taxpayer who shall bring an action to set aside or review the tax based thereon or against whom an action or proceeding is contemplated or has been instituted under this Chapter 3.40. (4) The provisions of this Section 3.40.030 shall not preclude the Town Manager, the Finance Director, and their agents, clerks, and employees from divulging any information gained from any return or audit to the federal government, the State, the Department of Revenue, the Town or any other municipality, the Town Attorney, the Town Manager, or the Finance Director, nor shall the Town Manager, theFinance Director, and their agents, clerks, or employees be liable to any person, firm or corporation for such disclosure made for the purpose of computing or collecting the tax due and owing from any person, firm or corporation, or for the purpose of verifying compliance with this Chapter 3.40 or for the purpose of investigating any criminal or illegal activity. (5) Any Town officer or employee, or any agent thereof, who shall divulge any information classified by this Chapter 3.40 as confidential in any manner except in accordance with proper judicial order or as otherwise provided herein or by other law shall be guilty of a violation of this Chapter 3.40 and shall be punished in the manner provided by State law. -7- 3.40.040 Tax Cannot be Absorbed. It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this Chapter 3.40 shall be assumed or absorbed by the retailer or that it shall not be added to the selling price of the property sold or the services tendered, or, if added, that it or any part thereof shall be refunded. 3.40.050 Excess Tax; Remittance. If any vendor, during any reporting period, collects as a tax an amount in excess of four percent (4%) of his total taxable sales, then he shall remit to the Finance director the full net amount of the tax imposed in this Chapter 3.40 and also such excess amount. The retention by the retailer or vendor of any excess amount of tax collections over the four percent (4%) of the total taxable sales of such retailer or vendor or the intentional failure to remit punctually to the Finance Director the full amount required to be remitted by the provisions of this Chapter 3.40 is declared to be a violation of this Chapter 3.40 and shall be recovered, together with interest, penalties and costs, a provided in Section 3.40. 3.40.060 License and Tax Additional. The license and tax imposed by this Chapter 3.01 shall be in addition to all other licenses and taxes imposed by law, except as otherwise provided in this Chapter 3.40. 3.40.065 Duty to Keep Records. It is the duty of every Taxpayer to keep and preserve suitable records and such other books or accounts as may be necessary to determine the amount of tax for the collection of which he is liable under this Chapter 3.40. It is the duty of every such Taxpayer to keep and preserve for a period of three (3) years all invoices of goods and merchandise purchased. All such books, invoices, and other records shall be open for examination and audit at any time by the Finance Director or his duly authorized agent. 3.40.070 Administration. The Town Manager may adopt rules and regulations in conformity with this Chapter 3.40 for the proper administration and enforcement of this Chapter 3.40. The administration of this Chapter 3.40 is vested in and shall be exercised by the Town Manager. The Finance Director shall assist the Town Manager in the administration of this Chapter 3.40 to the extent provided herein and in the rules and regulations promulgated hereunder. 3.40.080 Receipts; Disposition. The monies received by the Finance Director from the tax imposed and collected pursuant to this Chapter 3.40 shall be deposited in the general fund of the Town. -8- 3.40.090 Applicability to Banks. The provisions of this Chapter 3.40 shall apply to national banking associations and to banks organized and chartered under State law. 3.40.100 Statute of Limitations. The taxes for any period, together with interest thereon and penalties with respect thereto, imposed by this Chapter 3.40 shall not be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced, more than three (3) years after the date on which the tax was or is payable, nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such lien shall continue only for one (1) year after the filing of notice thereof. The statute of limitations period as set forth herein above in this Section 3.40.100 shall not apply if: (i) a Taxpayer files a false or fraudulent return with the intent to evade the tax imposed by this Chapter 3.40; or (ii) if a Taxpayer fails to file a return as required by Section 3.40.130. In the case of a false or fraudulent return with the intent to evade the tax imposed by this Chapter 3.40, the tax, together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. In the case of failure to file a return, the tax, together with interest and penalties thereon, may be assessed and collected at any time. Before the expiration of such period of limitation, the taxpayer and the Finance Director may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing. II. LICENSING 3.40.110 Licenses, Fees, Revocation. (1)(a) A sales tax license shall be required for any person to engage in the business of selling at retail in the Town tangible personal property or services that are taxable hereunder which are purchased in the Town and are subject to sales tax pursuant to this Chapter 3.40. A tax license shall be granted and issued by the Finance Director and shall be in force and effect until the earlier of: (i) revocation of such license; or (ii) sale or termination of the business, if any, relating to such license. Such licenses shall be granted only upon application stating the name and address of the person desiring such license, the name of such business, if any, and the location, including the street number of such business, if any, and such other facts as the -9- Finance Director may require. No license issued pursuant to this Section 3.40.110 shall be transferable. (2) In case business is transacted at two (2) or more separate places by one (1) person, a separate license for each place of business shall be required. (3) Each license shall be numbered and shall show the name of the licensee and the place of business of the licensee and shall be posted in a conspicuous place at the place of business for which it is issued. If the licensee does not have a place of business, then the license shall show the mailing address of such licensee. (4) The Finance Director, after reasonable notice and a full hearing, may revoke the license of any person found by him to have violated any provision of this Chapter 3.40. (5) Any findings and order of the Finance Director revoking the license of any person shall be subject to review by the District Court upon application of the aggrieved party. The procedure for review shall be, as nearly as possible, the same as provided for the review of findings as provided by proceedings in the nature of certiorari. ' (6) No license shall be required for any person engaged exclusively in the business of selling commodities which are exempt from taxation under this Chapter 3.40. III. SALES TAX 3.40.120. Property and Services Taxed. There is levied, and there shall be collected and paid a sales tax in the amount stated in Section 3.40.140 as follows: (1) On the purchase price paid or charged upon all sales, purchases, rentals and leases of tangible personal property at retail. (2) In the case of retail sales involving the exchange of property, on the purchase price paid or charged, including the fair market value of the property exchanged at the time and place of the exchange, excluding, however, from the consideration of the purchase price, the fair market value of the exchanged property, provided that such exchanged property is to be sold thereafter in the usual course of the retailer's business. (3) Upon telephone and telegraph services, whether furnished by public or private corporations or enterprises, for all intrastate telecommunication services originating from or received on telecommunication equipment in the Town if the -10- charge for the service is billed to a person in the Town or billed to an affiliate or division of such person in the Town on behalf of a person in the Town. (4) For gas and electric service, whether furnished by municipal, public, or private corporations or enterprises, for gas and electricity furnished and sold for commercial consumption and not for resale, upon steam when consumed or used by the purchaser and not resold in original form whether furnished or sold by municipal, public or private corporations or enterprises. (5) (a) Upon all sales of food. (b) Upon the amount paid for food or drink served or furnished in or by restaurants, cafes, lunch counters, cafeterias, hotels, drugstores, social clubs, nightclubs, cabarets, resorts, snack bars, caterers, carryout shops, and other like places of business at which prepared food or drink is regularly sold, including sales from pushcarts, motor vehicles, and other mobile facilities. Cover charges shall be included as part of the amount paid for such food or drink. (6) On the entire amount charged to any person for rooms or accommodations as designated in Section 3.40.020(28). (7) On the price paid to gain admission or access to a performance of a motion picture. 3.40.130. Collection of Sales Tax. (1)(a) Every retailer, also in this Chapter 3.40 called "vendor", shall, irrespective of the provisions of Section 3.40.140, be liable and responsible for the payment of an amount equa'l to four percent (4%) of all sales made by him of commodities or services as specified in Section 3.40.120 and shall before the twentieth (20) day of each month make a return to the Finance Director for the preceding calendar month and remit an amount equal to said four percent (4%) on such sales to said Finance Director. Such returns of the Taxpayer or his duly authorized agent shall be furnished by the Finance Department. The Town shall use the standard municipal sales and use tax reporting form and any subsequent revisions thereto adopted by the executive director of the Department of Revenue by the first full month commencing one hundred and twenty (120) days after the effective date of the regulation adopting or revising such standard form. (b) If the accounting methods regularly employed by the vendor in the transaction of his business or other conditions are such that returns of sales made on a calendar month basis shall impose unnecessary hardship, the Finance Director, upon written request of the vendor, may accept returns at such intervals as shall, -11- in his opinion, better suit the convenience of the Taxpayer and shall not jeopardize the collection of the tax. The Finance Director may permit Taxpayers whose monthly collected tax is less than three hundred dollars ($300) to make returns and pay taxes at intervals not greater than three (3) months. (c) The Finance Director may extend the date for making a return and paying the taxes due under such reasonable rules and regulations as may be prescribed therefor, but no such extension shall be for a greater period than as provided in Section 3.40.130(1)(b). (d) The burden of proving that any retailer is exempt from collecting the tax on any goods or services sold and paying the same to the Finance Director, or from making such returns, shall be on the retailer or vendor under such reasonable requirements of proof as set forth in the rules and regulations prescribed therefor. (e) If a dispute arises between the purchaser and seller as to whether or not any sale, service, or commodity is exempt from taxation under Section 3.40.180, nevertheless the seller shall collect, and the purchaser shall pay the tax, and the seller shall thereupon issue to the purchaser a receipt or certification, on forms furnished by the Finance Department, showing the names of the seller and the purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser thereafter may apply to the Finance Director for a refund of such taxes, and it is then the duty of the Finance Director to determine the question of exemption. The purchaser may request a hearing pursuant to Section 3.40, and the final determination of the Finance Director may either be appealed to the District Court pursuant to Section 3.40 or the Department of Revenue pursuant to Section 3.40. (f) The Town's sales tax shall not apply to the sale of tangible personal property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of the sales tax required to be paid pursuant to Section 3.40.140. A credit shall be granted against the Town's sales tax with respect to such transaction equal in amount to the lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the amount of the sales tax required to be paid pursuant to Section 3.40.140. 3.01.140. Sales Tax Base; Schedule of Sales Tax. (1) Except as otherwise provided in this subsection (1), the sales tax is imposed on the full purchase price -12- of articles sold after manufacture or after having been made to order and includes the full purchase price for material used and the service performed in connection therewith, excluding, however, such articles as are otherwise exempted in this Chapter 3.40. In connection with the transaction referred to in Section 3.40.020(28)(k), the sales tax is imposed only on the amount of any increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. Except as otherwise provided in this subsection (1), the sales price is the gross value of all materials, labor, and service, and the profit thereon, included in the price charged to the user or consumer. (2) There is imposed upon all sales of commodities and services specified in Section 3.40.120 a tax at the rate of four percent (4%) of the amount of the sale, to be computed in accordance with the schedules or systems set forth in the rules and regulations prescribed therefor. Said schedules or systems shall be designed so that no such tax is charged on any sale of twenty-four cents ($.24) or less. (3) (a) Except as provided in paragraph (b) of this subsection (3), retailers shall add the tax imposed, or the average equivalent thereof, to the sale price or charge, showing such tax as a separate and distinct item, and when added, such tax shall constitute a part of such price or charge and shall be a debt from the consumer or user to the retailer until paid and shall be recoverable at law in the same manner as other debts. (b) Any retailer selling malt, vinous, or spirituous liquors by the drink may include in his sales price the tax levied under this Chapter 3.40, except that no retailer shall advertise or hold out to the public in any manner, directly or indirectly, that such tax is not included as a part of the sales price to the consumer. The schedule referred to in subsection (2) of this Section shall be used by such retailer in determining amounts to be included in such sales price. No such retailer shall gain any benefit from the collection or payment of such tax, nor shall the use of the schedule referred to in subsection (2) of this Section relieve such retailer from liability for payment of the full amount of the tax imposed pursuant to Section 3.40.120. 3.40.150. Credit Sales. (1) In the case of a sale upon credit, or a contract for sale where the price is paid in installments, and title does not pass until a future date, or a sale secured by a chattel mortgage or a conditional sale, there shall be paid upon -13- each payment that portion of the total tax which the amount paid bears in relation to the total purchase price. (2) If the retailer transfers, sells, assigns, or otherwise disposes of an account receivable, then he shall be deemed to have received the full balance of the consideration for the original sale and shall be liable for the remittance of the sales tax on the balance of the total sale price not previously reported, except that such transfer, sale, assignment, or other disposition of an account receivable by a retailer to a closely held subsidiary, as defined in Section 3.40.020 (28)(k), shall not be deemed to require the retailer to pay the sales tax on the credit sale represented by the account transferred prior to the time that the customer makes payment on said account. 3.40.160. Bad Debt Charge-Offs. Taxes paid on gross taxable sales represented by accounts found to be worthless and actually charged off for income tax purposes may be credited upon a subsequent payment of the tax provided in this Chapter 3.40, but if any such accounts are thereafter collected by the Taxpayer, then a tax shall be paid upon the amounts so collected. 3.40.170. Exemptions. The following goods and services shall be exempt from sales tax under the provisions of this Chapter 3.40: (1) All sales to the United States government and to the State, its departments and institutions and the political subdivisions thereof in their governmental capacities only. (2) All sales made to charitable organizations in the conduct of their regular charitable functions and activities. (3) All sales which the Town is prohibited from taxing under the constitution or laws of the United States, the State, or the Town's charter. (4) All sales of drugs dispensed in accordance with a prescription; all sales of insulin in all its forms dispensed pursuant to the direction of a licensed physician; all sales of glucose usable for treatment of insulin reactions; all sales of urine and blood testing kits and materials; all sales of insulin measuring and injecting devices, including hypodermic syringes and needles; all sales of prosthetic devices; all sales of wheelchairs and hospital beds; all sales of colostomy bags; all sales of drugs when furnished by a doctor as part of professional services provided to a patient; and sales of corrective eyeglasses, contact lenses or hearing aids. -14- (5) All sales and purchases of commodities and services under the provisions of Section 3.40.020(28) to any occupant who is a permanent resident of any hotel, apartment hotel, lodging house, motor hotel, guest house, guest ranch, condominium, townhouse, trailer court, mobile home, auto camp, or trailer court or park, and who enters into or has entered into a written agreement for occupancy of a room or accommodations for a period of at least sixty (60) consecutive days during the calendar year or preceding year. (6) All sales made to schools, other than schools held or conducted for private or corporate profit. (7) All Sales of construction and building materials, as such term is used in Section 29-2-109 of the Colorado Revised Statutes, if such materials are picked up by the purchaser, and if the purchaser of such materials presents to the retailer a building permit or other documentation acceptable to the Town evidencing that a local use tax has been paid or is required to be paid. (8) The transfer of tangible personal property without consideration (other than the purchase, sale, or promotion of the transferor's product) to a vendee located outside the Town for use outside the Town in selling products normally sold at wholesale by the transferor. (9) All commodities which are taxed under the provisions of Article 27, Title 39 of the Colorado Revised Statutes, and all commodities which are taxed under such provisions and for which the tax is refunded, and the sale of special fuel, as defined in Section 39-27-201(8) of the Colorado Revised Statutes, used for the operation of farm vehicles are being used on farms and ranches. (10) Any sale of any article to a retailer or vendor of food, meals, or beverages, which article is to be furnished to a consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by Section 3.40.120(1) or (5). (11) Any sale of any container or bag to a retailer or vendor of food, meals, or beverages, which container or bag is to be furnished to a consumer or user for the purpose of packaging or bagging articles of tangible personal property purchased at retail, if a separate charge is not made for the container or bag to the consumer or user, if such container or bag becomes the property of the consumer or user, together with the food, meals, or beverages purchased, and if a tax is paid on the retail sale as required by Section 3.40.120(1) or (5). -15- (12) (a) All sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets, and other public works owned or used by: (i) The United States government, the State, its departments and institutions, and the political subdivisions thereof in their governmental capacities only; (ii) Charitable organizations in the conduct of their regular charitable functions and activities; or, (iii) Schools, other than schools held or conducted for private or corporate profit. (b) On application by a purchaser or seller, the Finance Director shall issue to a contractor or subcontractor a certificate or certificates of exemption indicating that the contractor's or subcontractor's purchase of construction or building materials is for a purpose stated in paragraph (a) of this subsection (18) and is, therefore, free from sales tax. The Finance Director shall provide forms for such application and for such certificate and shall have the authority to verify that the contractor or subcontractor is, in fact, entitled to the issuance of such certificate prior to such issuance. (13) (a) Sales to and purchases of tangible personal property by a person engaged in the business of manufacturing, compounding for sale, profit or use, any article, substance, or commodity, which tangible personal property enters into the processing of or becomes an ingredient or component part of the product or service which is manufactured, compounded or furnished, and the container, label or the furnished shipping case thereof, shall be deemed to be wholesale sales and shall be exempt from taxation under this Chapter 3.40. (b) As used in paragraph (a) of this subsection (20) with regard to food products, tangible personal property enters into the processing of such products and, therefore, is exempt from taxation when: (i) It is intended that such property become an integral or constituent part of a food product which is intended to be sold ultimately at retail for human consumption; or (ii) Such property, whether or not it becomes an integral or constituent part of a food product, is a chemical, solvent, agent, mold skin casing, or other material, is used for the purpose of producing or inducing a chemical or -16- physical change in a food product or is used for the purpose of placing a food product in a more marketable condition and is directly utilized and consumed, dissipated, or destroyed, to the extent it is rendered unfit for further use, in the processing of a food product which is intended to be sold ultimately at retail for human consumption. (14) All sales and purchases of electricity, coal, gas, fuel oil, coke, or nuclear fuel, for use in mining, refining, irrigation, construction, telecommun- ication services and street and railroad transportation services. (15) In any case in which a sales tax has been imposed under this Chapter 3.40 on lubricating oil used other than in motor vehicles, the purchaser thereof shall be entitled to a refund equal to the amount of the sales tax paid on that portion of the sales price thereof which is attributable to the federal excise tax imposed on the sale of such lubricating oil. The refund allowed under this subsection (28) shall be paid by the Finance Director upon receiving under Section 6425 of the Internal Revenue Code of 1954, as amended, a refund of the federal excise tax paid on the sale of such lubricating oil. The claim for a refund shall be made upon forms furnished by the Finance Department. (16) All sales and purchases of refactory materials and carbon electrodes used by a person manufacturing iron and steel for sale or profit and all sales and purchases of inorganic chemicals used in the processing of vanadium- uranium ores. (17) All sales and purchases of newsprint and printer's ink for use by publishers of newspapers and commercial printers and all sales and purchasers of newspapers, as such term is defined in Section 24-70-102 of the Colorado Revised Statutes. (18) All sales of tangible personal property purchased or sold within the Town if delivered outside the Town to the purchaser. 3.40.180. Map or Location Guide of Town Boundaries. The Finance Department shall make available to any requesting vendor a map or location guide showing the boundaries of the Town. The requesting vendor may rely on such map or location guide and any update thereof available to such vendor in determining whether to collect a sales or use tax or both. No penalty shall be imposed or action for deficiency maintained against a vendor who in good faith complies with the most recent map or location guide available to such vendor. s -17- IV. REFUNDS 3.40.190. Refunds. (1) A refund shall be made, or credit allowed, for the sales or use tax so paid under dispute by any purchaser or user who claims an exemption pursuant to Section 3.40.170. Such refund shall be made by the Finance Director after compliance with the following conditions precedent: Applications for refund shall be made within sixty (60) days after the purchase of the goods or services whereon an exemption is claimed and must be supported by the affidavit of the purchaser accompanied by the original paid invoice or sales receipt and certificate issued by the seller and shall be made upon such forms as shall be prescribed therefor. (2) Upon receipt of an application, the Finance Director shall examine the same with due speed and shall give notice to the applicant by order in writing of his decision thereon. Aggrieved applicants, within thirty (30) days after such decision is mailed to them, may petition the Finance Director for a hearing on the claim in the manner provided in Section 3.40.270 and may either appeal to the District Court in the manner provided in Section 3.40.280 or to the Department of Revenue in the manner provided in Section 3.40.290. The right of any person to a refund under this Chapter 3.40 shall not be assignable, and except as provided in subsection (4) of this Section, such application for refund must be made by the same person who purchased the goods or services and paid the tax thereon as shown in the invoice of the sale thereof. (3) A refund shall be made or a credit allowed by the Finance Director to any person entitled to an exemption where such person establishes that :(i) a tax was paid by another person, the purchaser, on a purchase made on behalf of the person entitled to an exemption; (ii) a refund has not been granted to such purchaser; and (iii) the person entitled to the exemption paid or reimbursed such purchaser for such tax. The burden of proving that sales, services, and commodities on which tax refunds are claimed are exempt from taxation under this Chapter 3.40 or were not at retail shall be on the person making such claim under such reasonable requirements of proof as set forth in the rules and regulations prescribed therefor. No such refund shall be made or credit allowed in an amount greater than the tax paid. (4) Such application for refund under subsection (3) of this Section shall be made on forms furnished by the Finance Department. Upon receipt of such application and proof of the matters contained therein, the Finance Director shall give notice to the applicant by order in writing of his decision thereon. Aggrieved applicants, -18- within thirty (30) days after such decision is mailed to them, may petition the Finance Director for a hearing on the claim in the manner provided in Section 3.40.270 and may either appeal to the District Court in the manner provided in Section 3.40.280 or to the Department of Revenue in the manner provided in Section 3.40.290. Any applicant for a refund under the provisions of this subsection (4), or any other person, who makes any false statements in connection with an application for a refund of any taxes is guilty of a violation of this Chapter 3.40 and shall be punished in the manner provided by State law. (5) Claims for tax moneys paid in error or by mistake shall be made within three (3) years after the date of purchase, storage, use or consumption of the goods or services for which the refund is claimed and shall be processed for refund in accordance with the rules and regulations prescribed therefor under subsection (4) of this Section, except that the proceeds of any such claim for a refund shall first be applied by the Finance Department to any tax deficiencies or liabilities existing against the claimant before allowance of such claim by the Finance Department, and further except that if such excess payment of tax moneys in any period is discovered as a result of an audit by the Finance Department, and deficiencies are discovered and assessed against the Taxpayer as a result of such audit, then such excess monies shall be first applied against any deficiencies outstanding to the date of the assessment but shall not be applied to any future tax liabilities. (6) If any person is convicted under the provisions of this Section, such conviction shall be prima facie evidence that all refunds received by such person during the current year were obtained unlawfully, and the Finance Director is empowered to bring appropriate action for recovery of such refunds. A brief summary statement of the above-described penalties shall be printed on each form for a refund. U. ENFORCEMENT 3.40.200. Recovery of Taxes, Penalty and Interest. (1) All sums of money paid by the purchaser to the retailer as taxes imposed by this Chapter 3.40 shall be and remain public money, the property of the Town, in the hands of such retailer, and he shall hold the same in trust for the sole use and benefit of the Town until paid to the Finance Director, and for failure to so pay to the Finance Director, such retailer shall be punished as provided herein. (2) (a) If a person neglects or refuses to make a return in payment of the sales tax or to pay any sales tax as required by this Chapter 3.40, then the Finance -19- Director shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the Taxpayer is delinquent and shall add thereto a penalty equal to the sum of fifteen dollars ($15) for such failure or ten percent (10%) thereof and interest on such delinquent taxes at the rate imposed under Section 3.40.230 plus one-half percent (112%) per month from the date when due, not exceeding eighteen percent (18%) in the aggregate. (b) Promptly thereafter, the Finance Director shall give to the delinquent Taxpayer written notice of such estimated taxes, penalty, and interest, which notice shall be sent by first-class mail directed to the last address of such person on file with the Finance Department. Such estimate shall thereupon become a notice of deficiency. Within thirty (30) days after the notice of deficiency is mailed, the Taxpayer may petition the Finance Director for a hearing in the manner provided in Section 3.40.270 and either may appeal the the District Court as provided in Section 3.40.280 or to the Department of Revenue as provided in Section 3.40.290. (3) (a) If any taxes, penalty, or interest imposed by this Chapter 3.40 and shown due by returns filed by the Taxpayer or as shown by assessments duly made as provided in this Section are not paid within five (5) days after the same are due, then the Finance Director shall issue a notice, setting forth the name of the Taxpayer, the amount of the tax, penalties and interest, the date of the accrual thereof, and that the Town claims a first and prior lien therefor on the real and tangible personal property of the Taxpayer except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgement creditor, or purchaser whose rights have attached prior to the filing of the notice as provided in this Section on property of the Taxpayer, other than the goods, stock in trade, and business fixtures of such Taxpayer. (b) Said notice shall be on forms furnished by the Finance Department and shall be verified by the Town Manager or by the Finance Director or any duly qualified agent of the Town Manager or the Finance Director, whose duties are the collection of such tax, and may filed in the office of the county clerk and recorder in which the Taxpayer owns real or tangible personal property, and the filing of such notice shall create a lien on such property in that county and constitute notice thereof. After said notice has been filed, or concurrently therewith, or at any time when taxes due are unpaid, whether such notice shall have been filed or not, the Finance Director may issue a warrant directed to any duly authorized -20- revenue collector, or the the sheriff of the county commanding him to levy upon, seize, and sell sufficient of the real and personal property of the amount due together with interest, penalties, and costs, as may be provided by law, subject to valid pre-existing claims or liens. (4) Such revenue collector or the sheriff shall forthwith levy upon sufficient of the property of the Taxpayer or any property used by such Taxpayer in conducting his retail business, except property made exempt from the tax lien pursuant to the provisions of Section 3.40.210(1)(b), and said property so levied upon shall be sold in all respects with like effect and in the same manner as is prescribed by law with respect to executions against property upon judgement of a court of record, and the remedies of garnishment shall apply. The sheriff shall be entitled to such fee in executing such warrants as are allowed by law for similar services. (5) Any lien for taxes as shown on the records of the county clerks and recorders as provided in this Section, upon payment of all taxes, penalties, and interest covered thereby shall be released by the Finance Director in the same manner as mortgages and judgements are released. , (6) (a) The Finance Director may also treat any such taxes, penalties, or interest due and unpaid as a debt due to the Town from the vendor. The return of the Taxpayer or the assessment made by the Finance Director, as provided in this Chapter 3.40 shall be prima facie proof of the amount due. (b) To recover such taxes, penalties or interest due, the Finance Director may bring an action in attachment, and a writ of attachment may be issued to the sheriff. In any such proceedings, no bond shall be required of the Finance Director, nor shall any sheriff require of the Finance Director an indemnifying bond for executing the writ of attachment or writ of execution upon any judgement entered in such proceedings. The Finance Director may prosecute appeals in such cases without the necessity of providing bond thereof. It.is the duty of the Town Attorney, when requested by the Finance Director, to commence action for the recovery of taxes due under this Chapter 3.40, and this remedy shall be in addition to all other existing remedies or remedies provided in this Chapter 3.40. (7) In any action affecting the title to real estate or the ownership or rights to possession of personal property, the Town may be made a party defendant for the purpose of obtaining an adjudication or determination of its lien upon the property involved therein. In any such action, service of summons upon the Finance -21- Director or any person of the office of the Finance Director shall be sufficient service and shall be binding upon the Town. (8) The Finance Director is authorized to waive, for good cause shown, any penalty assessed as provided in this Chapter 3.40, and any interest imposed in excess of the rate determined pursuant to subsection (2) of this Section shall be deemed a penalty. (9) If a Taxpayer pays for any tax imposed pursuant to this Chapter 3.40 by check for which there are insufficient funds to cover such check, then the Finance Director may assess a penalty against such Taxpayer as follows: (i) fifteen dollars ($15.00) for the first violation; (ii) thirty dollars ($30.00) for the second violation; and seventy-five dollars ($75.00) for each additional violation. If a penalty of thirty-five dollars ($35.00) or more has been assessed against a Taxpayer by the Finance Director, then the Finance Director may require such Taxpayer to pay all tax payments, whether due or to be due in the future, by certified funds, cashier's check or cash. The penalty imposed by this Section 3.40.260(9) is in addition to all other penalties imposed pursuant to this Chapter 3.40. 3.40.210. Tax Lien. (1) (a) The sales tax imposed pursuant to Section 3.40.210 shall be a first and prior lien upon the tangible personal property and business fixtures of or used by any retailer under lease, title retaining contract, or other contract arrangement, excepting stock of goods sold or for sale in the other liens or claims of whatsoever kind or nature. (b) Any retailer who sells out his business or stock of goods, or quits business, shall be required to make out the return as provided in this Chapter 3.40, within ten (10) days after the date he sold his business or stock of goods, or quit business, and his successor in business shall be required to withhold sufficient purchase money to cover the amount of said taxes due and unpaid until such time as the former owner produces a receipt from the Finance Director showing that the taxes have been paid or a certificate that no taxes are due. (c) If the purchaser of a business or stock of goods fails to withhold the purchase money as provided in paragraph (b) of subsection (1) and the taxes are due and unpaid after the ten (10) day period allowed, he, as well as the vendor, shall be personally liable for the payment of the taxes unpaid by the former owner. Likewise, anyone who takes any stock of goods or business fixtures of or used by any retailer under lease, title retaining contract, or other contract arrangement, by -22- purchase, foreclosure sale, or otherwise, takes the same subject to the lien for any delinquent sales taxes owned by such retailer and shall be liable for the payment of all delinquent sales taxes of such prior owner; not, however, exceeding the value of property so taken or acquired. (2) Whenever the business or property of any Taxpayer subject to this Chapter 3.40 shall be placed.in receivership, bankruptcy, or assignment for the benefit of creditors, or seized under distraint for property taxes, all taxes, penalties, and interest imposed by this Chapter 3.40 and for which said retailer is in any way liable under the terms of this Chapter 3.40 shall be a prior and preferred claim against all the property of said Taxpayer, except as to preexisting claims or liens of a bona fide mortgagee, pledgee, judgement creditor, or purchaser whose rights shall have attached prior to the filing of the notice as provided in Section 3.40.200(3)(b) on the property of the Taxpayer, other than the goods, stock in trade, and business fixtures of such Taxpayer. No sheriff, receiver, assignee, or other officer shall sell the property of any person subject to this Chapter 3.40 under process or order of any court without first ascertaining from the Finance Director the amount of any taxes due and payable under this Chapter 3.40, and if there are any such taxes due, owing, or unpaid, it is the duty of such officer to first pay the amount of said taxes out of the proceeds of said sale before making payment of any moneys to any judgement creditor or other claims of whatsoever kind or nature, except the costs of the proceedings and other preexisting claims or liens as provided in this Section. For the purposes of this subsection (2), "Taxpayer" includes "retailer". 3.40.220. Negligent or Intentional Tax Deficiency. If any part of the deficiency in payment of the sales or use tax is due to negligence or intentional disregard of authorized rules and regulations of the Town with knowledge thereof, but without intent to defraud, there shall be added ten percent (10%) of the total amount of the deficiency, and interest in such case shall be collected at the rate imposed under Section 3.40.230 in addition to the interest provided by Section 3.40.240 on the amount of such deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable ten (10) days after written notice and demand to such person by the Finance Director. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added one hundred percent (100%) of the total amount of the deficiency, and in such case, the whole amount of the tax unpaid, including the -23- additions, shall become due and payable ten (10) days after written notice and demand by the Finance Director, and an additional three percent (3%) per month on said amount shall be added from the date that the return was due until paid. 3.40.230. Interest Rate on Delinquent Taxes. When interest is required or permitted to be charged under Sections 3.40.200(2), 3.40.220, 3.40.240(1), the annual rate of interest shall be that rate of interest established by the State commissioner of banking pursuant to Section 39-21-110.5 of the Colorado Revised Statutes. 3.40.240. Interest on Underpayment, Overpayment, Nonpayment or Extensions of Time for Payment of Tax. (1) If any amount of sales or use tax is not paid on or before the last date prescribed for payment, then interest on such amount at the rate imposed under Section 3.40.230 shall be paid for the period from such last date to the date paid. The last date prescribed for payment shall be determined without regard to any extension of time for payment and shall be determined without regard to any notice and demand for payment issued, by reason of jeopardy, prior to the last date otherwise prescribed for such payment. In the case of a tax in which the last date for payment shall be deemed to be the date that the liability for the tax arises, and in no event shall such date be later than the date that notice and demand for the tax is made by the Finance Director. (2) Interest prescribed under this Section and Sections 3.40.200(2), 3.40.220 and 3.40.250 shall be paid upon notice and demand and shall be assessed, collected, and paid in the same manner as the tax to which such interest is applicable. (3) If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this Section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowed with respect to such overpayment. . (4) Interest prescribed under this Section and Sections 3.40.200(2), 3.40.220 and 3.40.250 on any sales tax may be assessed and collected at any time during the period within which the tax to which such interest relates may be assessed and collected. 3.40.250. Other Remedies. No provision of this Chapter 3.40 shall preclude the Town from utilizing any other lawful penalties or other remedies applicable to the collection of sales taxes. -24- VI. HEARINGS AND APPEALS 3.40.260. Hearings by Finance Director. (1) If any person contests any deficiency notice received from the Finance Director, then he may apply to the Finance Director by petition in writing within ten (10) days after such deficiency notice is mailed to him for a hearing and a correction of the amount of the tax so assessed, in which petition he shall set forth the reasons why such hearing should be granted and the amount by which such tax should be reduced. The Finance Director shall notify the petitioner in writing of the time and place fixed by him for such hearing. After such hearing, the Finance Director shall make such order in the matter as is just and lawful and shall furnish a copy of such order to the petitioner. (2) Every decision of the Finance Director shall be in writing, and notice thereof shall be mailed to the petitioner within ten (10) days, and all such decisions shall become final and all amounts due shall be paid upon the expiration of thirty (30) days after notice of such decision shall have been mailed to the petitioner, unless proceedings are begun within such time for review thereof as provided in Section 3.40.280 or Section 3.40.290. 3.40.280. Review by District Court. (1) If the petitioner or if an applicant for a refund is aggrieved at the final decision of the Finance Director, then he may proceed to have same reviewed by the District Court. The procedure of review shall be in accordance with Rule 106(a)(4) of the Colorado Rules of Civil Procedure. (2) Within fifteen (15) days after filing a notice of appeal as provided in this Section, the Taxpayer shall file with the District Court a surety bond in twice the amount of the taxes, and other charges stated in the final decision by the Finance Director that are contested on appeal. The Taxpayer may, at his option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a state or national bank or by a state or federal savings and loan association, in accordance with the provisions of Section 11-35-101(1) of the Colorado Revised Statutes, equal to twice the amount of the taxes, interest, and other charges stated in the final decision by the Finance Director. The Taxpayer may, at his option, deposit the disputed amount with the Finance Director in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the deficiency contested during the pendency of the action. At the conclusion of the action, after appeal to the Supreme Court or -25- the Court of Appeals of the State or after the time for such appeal has expired, the funds deposited shall be, at the direction of the District Court, either retained by the Finance Director and applied against the deficiency or returned in whole or part to the Taxpayer with interest at the rate imposed pursuant to Section 3.40.230. No claim for refund of amounts deposited with the Finance Director need be made by the Taxpayer in order for such amounts to be repaid in accordance with the direction of the District Court. (3) The District Court shall have original jurisdiction in proceedings to review all questions of law and fact determined by the Finance Director in administering the provisions of this Chapter 3.40 by writ under Rule 106(a)(4) of the Colorado Rules of Civil Procedure. Any writ issued pursuant to this subsection (3) shall be issued by the clerk of the District Court upon a verified petition of the Taxpayer filed within twenty (20) days after notice of the decision of the Finance Director in any such matter. Such writ shall be served within five (5) days after its issuance and shall be returnable at such time as the District Court may determine, not less than ten (10) days nor more than twenty (20) days after the date of issuance of such writ. The Finance Director shall certify the record of his proceedings to the District Court. (4) The decision of the District Court may be reviewed in the Supreme Court of the State upon writ of error by any party thereto. 3.40.290 Alternate Review by Department of Revenue. In lieu of the procedure provided for in Section 3.40.280, the Taxpayer may elect a hearing on the Finance Director's final decision on a deficiency notice or claim for refund pursuant to procedure set forth in this Section 3.40.190. (1) As used in this Section 3.40.290, "State hearing" means a hearing before the executive director of the Department of Revenue or a delegate thereof as provided in Section 29-2-106.1(3) of the Colorado Revised Statutes. (2) When the Finance Director asserts that sales or use taxes are due in an amount greater than the amount paid by a Taxpayer, then the Finance Director shall mail a deficiency notice to the Taxpayer by certified mail. The deficiency notice shall state the additional sales or use taxes due. The deficiency notice shall contain notification, in clear and conspicuous type, that the Taxpayer has the right to elect a State hearing on the deficiency pursuant to Section 29-2-106.1(3) of the Colorado Revised Statutes. The Taxpayer shall also have the right to elect a State -26- hearing on the Finance Director's denial of such Taxpayer's claim for a refund of sales or use tax paid. (3) The Taxpayer shall request the State hearing within thirty (30) days after the Taxpayer's exhaustion of local remedies. The Taxpayer shall have no right to such hearing if he has not exhausted local remedies, or if he fails to request such hearing within the time period provided for in this subsection (3). For purposes of this subsection (3), "exhaustion of local remedies" means: (a) The Taxpayer has timely requested in writing a hearing before the Finance Director, and the Finance Director has held such hearing and issued a final decision thereon. Such hearing shall be informal, and no transcript, rules of evidence or filing of briefs shall be required, but the Taxpayer may elect to submit a brief, in which case the Finance Director may submit a brief. The Finance Director shall hold such hearing and issue the final decision thereon within ninety (90) days after the Finance Director's receipt of the Taxpayer's written request therefor, except that the Town may extend such period if the delay in holding the hearing or issuing the decision thereon was occasioned by the Taxpayer, but, in any such event, the Finance Director shall hold such hearing and issue the decision thereon within one hundred and eighty (180) days of the Taxpayer's request in writing therefor; or (b) The Taxpayer has timely requested in writing a hearing before the Finance Director, and the Finance Director has failed to hold such hearing or has failed to issue a final decision thereon within the time periods prescribed in subsection (3)(a) of this Section. (4) If a Taxpayer has exhausted his local remedies as provided in subsection (3)(a) of this Section, then the Taxpayer may request a State hearing on such deficiency notice or claim for refund, and such request shall be made, and such hearing shall be conducted in the same manner as set forth in Section 29-2-106.1 (3) through (7), inclusive, of the Colorado Revised Statutes. (5) If the deficiency notice or claim for refund involves only the Finance Director, then in lieu of requesting a State hearing, the Taxpayer may appeal such deficiency or denial of a claim for refund to the District Court as provided in Section 29-2-106.1(8) of the Colorado Revised Statutes, if the Taxpayer complies with the procedures set forth in subsection (3) of this Section. -27- (6) No provision of this Section shall prohibit the Taxpayer from pursuing judicial review of a final decision of the Finance Director as otherwise provided in Section 3.40.280. 2. If any part, section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed this Ordinance, and each part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or more parts, sections, subsections, sentences, clauses or phrases be declared invalid. 3. The Town Council hereby finds, determines and declares that this Ordinance is necessary and proper for the health, safety and welfare of the Town of Vail and the inhabitants thereof. 4. The repeal or the repeal and reenactment of any provision of the Vail Municipal Code as provided in this Ordinance shall not affect any right which has accrued, any duty imposed, any violation that occurred prior to the effective date hereof, any prosecution commenced, nor any other action or proceedings as commenced under or by virtue of the provision repealed or repealed and reenacted. The repeal of any provision hereby shall not revive any provision or any ordinance previously repealed or superseded unless expressly stated herein. INTRODUCED, READ AND APPROVED ON FIRST READING THIS day of , 1987, and a public hearing shall be held on this ordinance on the day of , 1987, at 7:30 p.m. in the Council Chambers of the Vail Municipal Building, Vail, Colorado. Ordered published in full this day of , 1987. Paul R. Johnston, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk -28- INTRODUCED, READ AND APPROVED ON SECOND READING AND ORDERED PUBLISHED this day of , 1987. Paul R. Johnston, Mayor ATTEST: Pamela A. Brandmeyer, Town Clerk -29- `y,y 10WHI of uail ~ 75 south irontage road office of the town manager vail, colorado 81657 (303) 476-7000 September 2, 1987 Board of Directors Upper Eagle Valley Consolidated Water District 846 Forest Road Vail, Colorado 81657 Dear Board of Directors: At the August 26th Upper Eagle Valley Consolidated Sanitation District meeting, members expressed an interest in formalizing a cooperative policy between the Town of Vail and the District in respect to permit fees. The Town of Vail is interested in working out a cooperative arrangement with the Board. I would like to invite Dave Mott and members of the Board to attend a Town Council work session on September 15th at 2:00 P.M. I will be calling Dave to confirm this date and to discuss in more detail what the proposal should include. Thank you for your interest in this matter. I feel confident that we can develop an intergovernmental arrangement which will be beneficial to both groups. Sin ely, . Rondall V. Phill ps Town Manager ~ RVP:bpr 4M11 75 south irontage road office of the town manager vail, colorado 81657 (303) 476-7000 September 4, 1987 Board of Directors Vail Valley Consolidated Water District 846 Forest Road Vail, Colorado 81657 Dear Board of Directors: On behalf of the Town of Vail, I would like to thank you for waiving water tap fees for Buffehr Creek Park, Bighorn Park, and Sandstone Park. The irrigation tap fee for Buffehr Creek park would have cost the Town $14,500. Both Sandstone and _ Bighorn Parks required a 3/4" water service line at $5,760 per line. In total, the Board saved the Town of Vail a total of $26,020 for water tap fees. This considerable amount of savings will enable the Town to spend additional money on landscaping and facility improvements which will be greatly appreciated by the general public. The Town of Vail would like to continue to work in a cooperative manner with the Vail Valley Consolidated Water Board. The Board has expressed an interest in formalizing a cooperative policy between the Town of Vail and the Vail Valley Consolidated Water District. I believe that the best approach is to schedule a discussion with the Town Council at an upcoming work session. I would like to invite Dave Mott and the members of the Board to attend a Town Council work session on September 15th. I will be calling Dave to confirm this date. In addition, the Board expressed interest in discussing the Gore Creek treatment plant and Lionsridge treatment plant sites. Kristan Pritz will contact Dave Mott to arrange a meeting between the Water District and Planning Department. We are interested in working with you on alternative public uses for the two sites. , Vail Vallley Consolidated Water District August 31, 1987 Page Two Once again, we would like to thank the Board for their cooperation on the tap fees. Your efforts are greatly appreciated. Sinc qeyr Rondall V. Philli s Town Manager RVP:bpr