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HomeMy WebLinkAbout1991-07-09 Support Documentation Town Council Work Session fic ~ VAIL TOWN COUNCIL WORK SESSION TUESDAY, JULY 9, 1991 2:00 P. M. AGENDA 1. PEC Report 2. DRB Report 3. Vail Symposium Request for Funds 4. Finance Department - Review Investment Policy 5. Information Update 6. Other 7. Adjournment C:\AGENDA.WS VAIL TOWN COUNCIL WORK SESSION TUESDAY, JULY 9, 1991 2:00 p.m. EXPANDED AGENDA 2:00 p.m. 1. PEC Report 2:10 p.m. 2. DRB Report 2:15 p.m. 3. Vail Symposium Request for Funds Sharon Jewett Backaround Rationale: See request from Vail Symposium dated July 3, 1991. 2:45 p.m. 4. Finance Department - Review Investment Policy Steve Thompson Action Requested of Council: Review Investment Policy and Staff's proposed amendments to the policy. (See attached.) Backaround Rationale: The Investment Policy requires Staff and Council to review annually. Staff Recommendation: Approve amendments proposed. 3:00 p.m. 5. Information Update 6. Other 7. Adjournment C:\AGENDA.WSE PLANNING AND ENVIRONMENTAL COMMISSION July 8, 1991 AGENDA 12:00 Site Visits 2:00 Public Hearing Site Visits Public Hearinq 3. 1. A request for front setback and density variances for the Dick Residence, Unit 2, Tract A, Bighorn Townhouses/4708 Meadow Drive, #2A. Applicant: Carol Dick Planner: Jill Kammerer 4. 2. A request for a density variance for the Bernardo Residence, Unit 4, Tract B, Bighorn Townhouses/4718 Meadow Drive, #4B. Applicant: Bill Bernardo Planner: Mike Mollica 3. A request for height, parking and density (GRFA/common area) variances for the Sonnenalp, Part of Lots K & L, Block 5-E, Vail Village First Filing/20 Vail Road. Applicant: Sonnenalp Properties Planner: Andy Knudtsen 4. A request for the establishment of a Special Development District for an unplatted parcel located in a part of the SE 1/4 of the SE 1/4 of Section 1, Township 5 South, Range 81 West, 6th Prime Meridian, generally located north of Sandstone Drive and west of Potato Patch Drive. Applicant: Abe L. Shapiro Planner: Mike Mollica 1. 5. A request for a worksession on wall heights at the E.B. Chester Residence, Lot 19, Block 1, Vail Village 1st Filing/ 395 Mill Creek Circle. Applicant: E.B. Chester Planner: Kristan Pritz 2. 6. A request for a worksession for a major amendment to Special Development District No. 2, Pinos del Norte, Building C, Northwoods Condominiums/600 Vail Valley Drive. Applicant: Pinos del Norte Condominium Association Planner: Andy Knudtsen 7. A request for a worksession for a Special Development District for Parcel F, Lionsridge Filing #2, commonly known as Briar Patch. Applicant: LST Properties Planner: Shelly Mello TABLED INDEFINITELY 8. A request for a site coverage variance for the Rothbart Residence, Lot 12, Block A, Vail Das Schone First Filing/2349 Chamonix Drive. Applicant: Gary Rothbart Planner: Jill Kammerer TABLED TO JULY 22, 1991 9. A request for a minor exterior alteration, and a site coverage variance for Super Star Studios, Gorsuch (Clock Tower) Building, Lots C, D and E, Block 5, Vail Village First Filing/263 East Gore Creek Drive. Applicant: Paul Golden Planner: Jill Kammerer TABLED TO JULY 22, 1991 10. A request for review of the Vail Streetscape Master Plan for formal recommendation to the Town Council. The Master Plan addresses the general area from East Lionshead Circle to Ford Park, and includes West Meadow Drive, East Meadow Drive, Willow Bridge Road, Gore Creek Drive, Vail Valley Drive, Bridge Street, and Hanson Ranch Road. Applicant: Town of Vail Planner: Mike Mollica TABLED TO JULY 22, 1991 11. An appeal of a staff decision concerning a density variance granted to Treetops Condominiums, Lot 6, Block 1, Vail Lionshead First Filing/452 East Lionshead Circle. Appellant: Treetops Condominium Association Planner: Mike Mollica TABLED TO JULY 22, 1991 DESIGN REVIEW BOARD AGENDA JULY 3, 1991 REVISED 7/3/91 3:00 P.M. SITE VISITS 1.00 P.M. 1 Mindlin - 800 Potato Patch Drive 2 Hillside Condo. - 1819-1839 Meadow Ridge Road 3 Stork - 2605 Davos Trail 4 Mammoth Video - 1029 S Frontage Rd./Cascade Crossing 5 Vail Glo Lodge - 701 West Lionshead Circle 6 Gateway Plaza - 12 Vail Road 7 Vail Road Sidewalk - S. Frontage Road to Meadow Drive 8 Willow Bridge - Located on Willow Bridge Road, between the Village Center Condominiums and the Sitzmark Lodge 9 Snow Dump, Town of Vail - 1289 Vail Valley Drive 10 Kaiser/Hall - 4916 Juniper Lane 11 Heiman Resid. - 5134 Grouse Lane AGENDA 1. Stork - Addition of secondary unit over the existing MM garage. 2605 Davos Trail/Lot 23, Block B, Vail Ridge MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 Consent Approval. 2. Willow Bridge - Replacement of existing structure. MM Located on Willow Bridge Road, between the Village Center Condominiums and the Sitzmark Lodge. MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 TABLED TO JULY 17TH MEETING 3. Gateway Plaza - Vail Road sidewalk (east side), MM modifications to approved plans. 12 Vail Road/Lot N, Block 5D, Vail Village 1st MOTION: George Lamb SECOND: Pat Herrington , VOTE: 5-0 Approved with conditions. 4. Vail Road Sidewalk, west side from South AK . Frontage Road to Meadow Drive MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 5. Snow Dump - Town of Vail AK 1289 Vail Valley Drive. Unplatted parcel generally located west of the Town of Vail Public Works Shops MOTION: George Lamb SECOND: Chuck Crist VOTE: 4-0-1 Approved. Sherry Dorward abstained. 6. Super Star Studios - Appeal of a staff interpretation BR concerning the use of a display box. 263 East Gore Creek Drive/Lots C, D, E, Block 5, Vail Village 1st Filing MOTION: George Lamb SECOND: Pat Herrington VOTE: 2-3 Motion was to uphold staff decision. Vote failed. Therefore, Super Star is permitted to have a display box. Design Review Board defined the content of the display box as follows: Name can be 1/2 sq. ft., remainder of sign for current music available. 7. Bridge Street Charlie's - Exterior Color Change BR 304 Bridge Street/Red Lion Building MOTION: Pat Herrington SECOND: Sherry Dorward VOTE: 5-0 Approved 8. Breeze Ski Rentals - Sign Variance JK Montaneros Commercial Condominium Unit #100, 641 West Lionshead Circle/Part of Lot 8, Block 1, Vail Lionshead 3rd Filing MOTION: SECOND: VOTE: TABLED 9. Lund --Landscape Plan AK 443 Beaver Dam Road/Lot 9, Block 4, Vail Village 3rd MOTION: SECOND: VOTE: TABLED 10. Hillside Condo. - Replace Retaining wall AK 1819-1839 Meadow Ridge Road/Lots 11-14, Buffehr Creek Subdivision MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 Approved with conditions. 11. Oberlohr - Secondary unit on a lot less than 15,000 SM sq. ft. 2656 Davos Trail/Lot 3, Block 3, Vail Ridge MOTION: SECOND: VOTE: TABLED 12. Hubcap - New Sign SM 143 Meadow Drive/Crossroads Mall MOTION: SECOND: VOTE: TABLED TO JULY 17TH MEETING. 13. Kaiser/Hall - Changes to approved plan SM 4916 Juniper Lane/Lot 3, Block 5, Bighorn Subdivision 5th Addition MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 Consent Approved. 14. Timber Creek - Addition of Garage SM 2883 Kinnickinnick Road/Lot 8, Block 4, Intermountain Swim and Tennis MOTION: SECOND: VOTE: TABLED 15. Montaneros Condominiums, Unit #411 - 250 request BR ~ 641 west Lionshead Circle MOTION: SECOND: VOTE: Consent Approved 16. Mammoth Video - New Sign BR 1029 South Frontage Road/Cascade Crossing MOTION: SECOND: VOTE: Consent Approved 17. Heiman Residence - Addition JK 5134 Grouse Lane/Lot 9, Block 1, Gore Creek Subdivision MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 Approved 18. Himelfarb/Helmering - 250 Addition JK 4269 East Nugget Lane/Lot 4A, Resub. of Lots 10 & 11, Bighorn Estates MOTION: SECOND: VOTE: TABLED INDEFINITELY 19. Mindlin - 250 Request JK 800 Potato Patch Drive/Lot 7, Block 1, Vail Potato Patch MOTION: George Lamb SECOND: Pat Herrington VOTE: 5-0 Approved 20. Kimball Residence - Secondary unit on a lot less AK than 15,000 sq. ft. 1915 West Gore Creek Drive/Lot 28, Vail Village West Filing #2 MOTION: SECOND: VOTE: TABLED a 21. Vail Glo Lodge - Bollards BR 701 West Lionshead Circle/Lot 1, Block 2, Vail Lionshead 3rd Filing MOTION: George Lamb SECOND: Sherry Dorward VOTE: ~5-0 TABLED TO 7/17/91 MEMBERS PRESENT: MEMBERS ABSENT: Ned Gwathmey Sherry Dorward Pat Herrington George Lamb Chuck Crist (PEC) STAFF APPROVALS: Warner - Trash enclosure. Lot 4, Sunburst Town of Vail - Reconstruction of pathways south of Pedestrian overpass, replace existing concrete with asphalt. The Valley, Phase VI - Expand kitchen, relocate fireplace, change windows. Lot 11, The Valley, Phase VI (6). Groff 250 - Add two bay windows to south elevation. Lot 17-A, Block 3, Vail Valley 1st Borne Duplex - Changes to approved plan. Lot 22, Vail Meadows Sheppard Duplex - Add 2 stair towers and 2 garages and remodel. Lot 4, Block 1, Vail Village 6th Caulkins Residence - Changes to approved plan. Lot 4, Block 3, Vail Village 11th Homestake Condo. - Exterior trim paint. 1081 & 1136 Sandstone Drive Fritzlen, Pierce, Briner - New Sign. Vail Run Building Lord Latigo Sign - formerly Island Sports. 286 Gore Creek Drive Meadow Vail Place - New skylights in pent house. 44 West Meadow Drive ;''"w~ f~'•_ i L V A ~ 1. Exploring Today's Realities July 3, 1991 CHAIRMEN Mr. Kent Rose Karen Morter Mayor CO-CHAIRMAN Town of Vail Patricia A. Teik CO-CHAIRMAN 75 S. Frontage Road Vail, CO 81657 BOARD OF DIRECTORS George Austen III Roseann Casey Bruce D. Chapman Dear Kent: Sherry Dorward Judith Evans On Tuesday, July 9th, the Vail Symposium will seek significant financial support of Jane Healy $15,000 from the Town of Vail. Rosalie Hill Isom Sharon McKay Jewett Elaine W. Kelton Recent trends in the resort industry underscore the conviction that the Symposium is a Debby Olsson McClenahan critical forum for the Vail Valley, and a means of bypassing some of the difficulties Terrell J. Minger other resort areas have been encountering. In the past couple of years I have had the Karen Morter opportunity to work and speak in Sun Valley, Aspen, Snowmass, Whistler, and Park Beth Ruder City. My impression is that all of these areas are struggling with the same fundamental Katherine M. Schmidt issues -how to keep market share in an era of flat skier growth and increasing Patricia A. Teik competition, and how to recreate the spirit and energy that existed in the "early days." Barbara Treat Sun Valley, once the nation's premier resort, provides an unsettling example -witness OFFICERS its progressive decline. Karen Morter PRESIDENT It seems that these are the very issues facing Vail today. In order for Vail to continue Patricia A. Teik to occupy its place of prominence in the resort industry, it is essential that the VICE PRESIDENT community continually enrich and renew itself through a recognition of where it has Katherine M. Schmidt been and a vision for where it should go. It is precisely this perspective and vision TREASURER Sharon McKay Jewett that the Symposium has been providing for the past 21 years. SECRETARY AND ADMINISTRATOR Communities like Steamboat Springs are just now developing an annual forum for the ADVISORY discussion of local and global issues. I think Vail is lucky to have an established Donald G. Berger institution which promotes self-critical thought and community-oriented action. The Jerry Davis Town of Vail's help goes beyond mere monetary assistance and serves as an important Catherine E. Dolan public endorsement of the need for community education and dialogue. We know the Wendy M. Gustafson Town of Vail recognizes the uniqueness of the Symposium and hope you will favorably Kay Saulsberry support our request for financial and public support. Susan Weber Sincerely, / i Terry Mier ' Honorary Chairman Post Office Box 3038 ? Vail, Colorado 81658-3038 ? 303/476-0954 ~ VAIL SYMPOSIUM -EXPLORING TODAY'S REALITIES Obiectives: To sponsor and hold the annual Vail Symposium focusing on the emerging issues of the Vail Valley community and the Nation; to hold a series of Breakfast meetings addressing these issues; to produce an annual Youth Symposium; to institute a series of small community forums with the Eagle Valley Community Forum; and to be fiscally responsible. Background: The Past The Symposium was originally conceived as a forum to think long term and broadly about Vail and the issues facing it in the 70's and 80's. Early topics included "The Future of the Ski Industry," "The Vail Growth Management Plan," "Energy and Water Development in the West," "Public Lands," and "Human Settlements in the Rocky Mountain West." Achievements of the Symposium have included Vail's first comprehensive master plan including the Dobson Ice Arena, the village transportation center, the purchase and preservation of Green-Belt areas, the long term plan for what has become Ford Park, establishment of bike paths, and protection of view corridors. Past participants represented a wide range of personalities, view and opinions. Notables have included Gerald Ford, Stewart Udall, John Lindsay, Dick Lamm, John Love, Rene Dubos, Bruce Babbitt, Gary Hart, Ian McHarg, Tom Brokaw, Helen Thomas, Cecil Andrus, Tom McCall, Ed Abbey, Scott Matheson, Bill Janklow, Robert Redford, Kenneth and Elise Boulding, Pat Schroeder, Frank Zarb, Harlan Cleveland, Donald Runsfeld, Noel Brown, Steve Schneider, Hazel Henderson, Frank Shorter, Eldon Beck, Dr. Hanspeter Danuser, J. Gary Watson. Philosonhv: In the Republic, Plato sketched a theory of the relationship between the character of a people and the nature of its political and economic community, the way it organizes and governs itself. Good communities are places that encourage active participation among their citizens in problems of contemporary society. The Vail Symposium was founded on similar ideas that the kind of place we want to be, i.e. resort community, state, nation, depends on the kind of people we hope to become -our collective character. Thus the symposium has been centered on a broad range of dialogue between individual and community, community and outside world. Past symposia, although diverse, have consistently asked, who are we? How - do we think about community, place, growth, commerce, recreation, culture and environment? What is our collective Vail character? The Future: The Vail Symposium will mirror, help decode and plan for the global economy/environment of tomorrow. While respecting our past and roots, we will offer a yearly look at the future, and provide a forum of dialogue for the community. TOWN OF VAIL MEMORANDUM T0: Ron Phillips Council Members FROM: Steve Thompson DATE: July 2, 1991 RE: Investment Policy Review The investment policy requires that the Town's staff and council members review the policy annually. The investment committee has reviewed the policy and is recommending the following amendments. The following is a summary of the proposed amendments by the section of the ordinance. Also enclosed is a copy of the investment policy with proposed additions and deletions for your review. Section 3.52.020 We changed the way this section is worded so that when an additional fund is added or deleted, the policy does not have to be amended. All Town of Vail funds are under the scope of the investment policy except the Pension Trust Fund. Section 3.52.060 - C & D It is a violation of our present investment policy to own a government agency security that is not specifically listed in Section D. This amendment gives staff the flexibility to use other agencies' securities without having to amend the policy each time staff sees a need to use an agency not specifically listed. Staff would still be restricted to using only securities rated in the highest rating category by Moodys and Standard and Poor. Section 3.52.060 - E Change the wording regarding money market funds and add the requirement that the Town shall not pay a sales or load fee. Section 3.52.060 - Last Paragraph Delete the following paragraph: "The Town will concentrate its investment efforts in, but not to be limited to, U.S. Treasury obligations, certificates of deposit and interest bearing checking accounts issued by financial institutions located in the Town, Eagle County and the State of Colorado." Page Two Amendments The reason for deleting this paragraph is because we do not concentrate our investment efforts in any one security. We decide on what to invest in based upon current interest rates for various investment vehicles and projected cash flows. Section 3.52.100 Restrict the purchase of agency securities allowed in Section 3.52.060 C(2a) to 25~ of the portfolio. Section 3.52.140 Reporting Requirements Change the requirement of providing a monthly investment report to the Town Manager and Council to quarterly. Section 3.52.180 - New Section - Funds borrowing from pooled cash fund This will officially allow funds to borrow money from the pooled cash fund for short term deficiencies. Chapter 3.52 INVESTMENT POLICY Sections: 3.52.010 Statement of purpose. 3.52.020 Scope. 3.52.030 Investment objectives. 3.52.040 Delegation of authority. 3.52.050 Investment prudence. 3.52.060 Investment instruments. 3.52.070 Competitive selection of investment instruments. 3.52.080 Interest allocation method. 3.52.090 Safekeeping and custody. 3.52.100 Portfolio diversification. 3.52.110 Maturity scheduling. 3.52.120 Qualified institutions and broker/dealers. 3.52.130 Investment committee. 3.52.140 Reporting requirements. 3.52.150 Monitoring and adjusting the portfolio. 3.52.160 Internal controls. 3.52.170 Policy review. 3.52.180 Funds borrowing from pooled cash fund. 3.52.010 Statement of purpose. This Investment Policy of the Vail Town Council for the Town of Vail represents the financial boundaries within which its cash management process will operate. REVENUE AND FINANCE A. Areas covered by this policy include: 1. Scope of Financial Funds to be Invested (Section 3.52.020). 2. Investment Objectives (Section 3.52.030). 3. Delegation of Authority for Investment Decisions (Section 3.52.040). 4. Investment Prudence (Section 3.52.050). 5. Investment Instruments (Section 3.52.060). 6. Competitive Selection of Investment Instruments (Section 3.52.070). 7. Interest Allocation Method (Section 3.52.080). 8. Safekeeping and Custody (Section 3.52.090). 9. Portfolio Diversification (Section 3.52.100). 10. Maturity Scheduling (Section 3.52.110). 11. Qualified Institutions and Broker/Dealers (Section 3.52.120). 12. Investment Committee (Section 3.52.130). 13. Reporting Requirements (Section 3.52.140). 14. Monitoring and Adjusting Portfolio (Section 3.52.150). 15. Internal Controls (3.52.160). 16. Policy Review (Section 3.52.170). REVENUE AND FINANCE (CONTINUED) B. Cash management goals shall be developed within the constraints of this policy statement. Goals shall include. 1. Percentage of cash invested. The town shall be earning interest on all available funds for investment. 2. Percentage of return (yield). A targeted range of yields should be stated as a goal. This target yield goal shall be presented in the annual operating budget. 3. Total dollar return goal. Combines the goals of percentage of cash available and the percentage of yield to obtain a total dollar return goal. (Ord. 22(1989) I:Ord.34 (1988):Ord.17(1987).) 3.52.020 Scope. This investment policy applies to all financial funds of the Town of Vail (hereby referred to as the "town"), except the Pension Trust Fund. glrese--~-~nels---a~a---a~evtm~ed-- for---rn--tie--t~wnls eExffp~e~easi~e anal--~rna~ral-~-e~o~-~ -and-~u~~'c~~tl~--rne3-tx~e-ire: 6~~a-1--Fx~ Epp}~a3 -P~o-j~ts--~t~xd E~s~~'~t1~t ioir -Ft3~k ~a-3- -Re~*~ae- ~nds?- ~teal - E~ t ado- ~~a~€e ~x ~a-r-]~}erg -Fee- -~t~ xd E~se~'~a~iotl--~~sst -F~-~xl ~a-r-}~e~3-erg - Fwd E~rt~~~r-rse- F~Ads~ ~~rt-e~~~-Se~~iee----Fiee~ jai-nt~..4..e~~'t~nd 3~rt-e~so-~-Se-r-~rce- ~-He~-~~1~-3-rrst~~ u~~~e - Se-r-~iee~ -Fnt~d $YC~:'~a~ Pi88~'~RicT1{: -F~1'Ttd'~ Monies held by the Colorado State Treasurer and Eagle County Treasurer during tax collection period shall be governed by State of Colorado and Eagle County investment policies and are not subject to the provisions of this policy. (Ord.22(1989( II:Ord.34(1988):Ord.17(1987).) 3.52.030 Investment objectives. Each investment transaction shall first seek to ensure capital losses are avoided, whether they are from default of securities or erosion of market value. The town, as its second major objective, seeks to attain market rates of return on its investments. Market rate objectives must be consistent with constraints imposed by the primary objective of the safety of principal, internal cash flow considerations and any Town of Vail ordinance, restricting the placement of public monies. Speculative investments will not be allowed. Speculative investments are those attempting to gain market premium appreciation through .short term market volatility resulting in increased risk and loss exposure. The town will not purchase a security which cannot be held to maturity. This does not mean an investment cannot be sold prior to maturity. (Ord.22(1989) III:Ord.34(1988):Ord.17(1987).) 3.52.040 Delegation of authority. Management responsibility for the investment program is held by the town manager and appointed designees. No employee may engage in an investment transaction except as provided under the terms of this policy and any procedures which may be established by the town manager. The town manager shall review the monthly investment report(see Section 3.52.140). It shall be the duty of the controller to manage the day-to- day operations of the portfolio, and place actual purchase/sell orders with institutions. In the absence of the controller, the administrative services director shall assume these duties. The authority for the investment philosophy and selection of investment managers for the Town of Vail Employee Pension Plan and the Town of Vail Police and Fire Employees Pension Plan shall be the responsibility of the Pension Plan Trustee as defined in the pension plan document. (Ord22(1989) IV:Ord.34(1988):Ord.17(1987).) 3.52.050 Investment prudence. Investments shall be made with reasonable financial judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the primary objective of safety of principal as well as the secondary objective of the obtainment of market rates of return. Investment officers acting in accordance with written procedures and exercising due prudence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectation are reported in a timely fashion, and appropriate action is taken to control adverse developments. (Ord.22(1989) V:Ord.34(1988):Ord.17(1987).) 3.52.060 Investment instruments. The town shall invest in the following accounts, or securities: A. Fully collateralized or insured interest bearing checking accounts, savings accounts, and certificates of deposit at commercial banks with amount not to exceed one hundred thousand dollars if the bank is not designated as a qualified institution by the investment committee. Collateral shall be limited to treasury bills and notes, municipal bonds, and government agency bonds and notes. Real estate mortgages are prohibited for use as collateral. A commercial bank may use any securities authorized by the Public Deposit Protection Act as collateral under the following circumstances: When money is being wired from one bank to another and for some reason the transaction is not completed and in order to protect the town's funds it is necessary to deposit them into an account for one banking day, plus any consecutive days that fall on a Saturday, Sunday, or a holiday. B. Certificates of deposit at savings and loan associations insured by the FSLIC or other agency of the federal government with amount not to exceed ninety-nine thousand dollars. Deposits with savings banks insured by the FDIC with amount not to exceed ninety-nine thousand dollars. -~----------JP~e~~~~~ -~ilis-,---~~~e~sx~~--r~e~~; --~~-eastrr-y--~~YY~s--~~d - - -~~~'3}-~c~~nCiE'g~-sef'i~~'3~~~8-W~,i~l~-.~.~~ -gnar~rnt~-by~t:he-f~u-rl -~ai~-~-acid-~~ed-r~-o-f--eke-~r~it~-S~-~t-ems- o-f--A.,,~:.~ ice-.- -8.----------the- f~llo~tAg-~.-S :-~ov~~-~~~rien~ ~g~....y-S~eenri~res -Di setx~n~- ~-ee ~~-r~i~s~ Fa~~~~ed3~ -Cans,a~id~l.Cd-System-,wide-d~sco2rnt-n~L~~ Fede~ra}--~vme-~~an-~rrrks-~iscrnmt- ...,Les Ped~~~t}--HL.«~.- ~oa7r-~i~fvrty4ye--E..~~,a~ULrorr--(~re~:,li~ ~fac~-~ia~otznt-motes Fed~~~i-~I-~t'ti~,~al-N~~ Lga~-As~~..iatton--(-i~Idh~rr ~ari-afrle=-rate--secn~ i l.i~a . ~tn.l~..t-~Lvan-i~a'rke-Ll~~g- h~ ~ociatirnr-('sa~Y=e-~+tae~ ~onr~.a-ssctrri Limos Feder-a 1- ~~ion~l -Poor-~ga~e• -Assc~e ia~ i-oA- ~~Ali~r Fed~r~l-~'~rm-E~-ed3~ Bank ~ede~~l--fie-moan-$~r~l~ Fed~rai-~r~d-~r~l~ C. (1) Any security issued by, guaranteed by, or for which the credit of any of the following is pledged for payment: The United States, a federal farm credit bank, the federal land bank, a federal home loan bank, the federal home loan mortgage corporation, the federal national mortgage association, or the government national mortgage association; (2a) Any security issued by, guaranteed by, or for which the credit of the following is pledged for payment: An entity or organization which is not listed in paragraph (1) of this subsection (C) but which is created by, or the creation of which is authorized by, legislation enacted by the United States congress and which is subject to control by the federal government which is at least as extensive as that which governs an entity or organization listed in paragraph (1) of this subsection (C). (2b) No security may be purchased pursuant to this paragraph (2) unless, at the time of purchase, the security is rated in its highest rating category by one or more nationally recognized organizations which regularly rate such obligations. D. Colorado Investment Pools. The town may participate in a Colorado Public Investment Pool, the Colorado Local Government Liquid Asset Trust or other similar local government pools organized in conformity with Part 7 of Article 75 of Title 24, CRS, which provides specific authority for pooling of local government funds. ~.----------fie}-~~~C~t -aee~~~-~hie~--p~i~~~~~-ia~e~~-i~r-~~~~3t~~~ mot®s-,- bi l mad- ~o-r}d s- aa~ -go~e~xm~~a~- ~ac~e ae~-gee~rr-rtie~ -€o-r ~re~i ~-ha~e~-~ta~-be--gx~-e~ase~-~o~--er~~-clo3~-ar--8TTd-3rqu~~ated ~-o-~ - o~rre• -d o~i ~a r E. Any money market fund that is registered as an investment company under the federal Investment Company Act of 1940 as amended, if, at the time the investing public entity invests in such fund: (I) The investment policies of the fund include seeking to maintain a constant share price; (ii) No sales or load fee is added to the purchase price or deducted from the redemption price of the investments in the fund. Repurchase agreements - with either qualified commercial banks or a primary securities dealer for which a properly executed master repurchase agreement has been entered into by the town. Repurchase agreements involving pooled collateral shall be avoided. The securities used as collateral shall be safekept in accordance with Section 3.52.090 on Safekeeping and Custody. 'Fewer--~i~3.-~oaeen-t~a~~-rts-3~es~:~~~nt-~€€o~#:s~-in ~ ant ~o~ ~e-ba ~im3-t~-to-,--t3Ts~-'F~ea~~y-o~~iga~i-oAS-,-~ertr~iea~ea a.f-~epasi~-~a-rid- i-r3~e~~s~-~ea~i-rrc~-e~~eeki~rg-a~.;;,ntrt~-is~st~e~-bp #i~an~i~l-3~-s~~.~~~io~rg-l~~:a~ed- ~-~~e-~o~; -Emile-~~~t~#~-aid i~~----~~~t~----~#-----E-03~~ a~o-r---------~ Ox ~-r~-2~ ~~38-9 X13 r0~~.-34~~s~-883-c~~d,3~F~~~8-~}~~- 3.52.070 Competitive selection of investment instruments. If a specific maturity date is required for cash flow purposes, bids will be requested for instruments which meet the maturity requirement. If no specific maturity is required, a market trend (yield curve) analysis will be conducted to determine which maturities would be most advantageous. After selecting a type of instrument at least two bids should be obtained from similar institutions. Two bids are not required if treasury bills or notes are purchased at a treasury auction of for overnight or open-term repurchase transactions. The town may place an investment with a local institution that is not the highest bidder, provided the bid is not more than twenty-five basis points below the highest bidder. The rate of interest must be at least equivalent to the average rate of return available in the market place. It is the responsibility of the controller to demonstrate compliance with this section. A local institution is defined as a bank or savings and loan association doing business inside the corporate limits of the Town of Vail and/or Eagle County. (Ord.22(1989) VII:Ord.34(1988):Ord.17(1987).) 3.52.080 interest allocation method. All investments will be in the name of the Town of Vail and in most cases it will be a general policy of the town to pool all available operating cash into a Treasury Cash Management investment portfolio. However, a specific investment purchased by a specific fund shall incur all earnings and expenses to that particular fund. Interest earnings from pooled funds shall be allocated to all participating funds in the following order. A. Payment of interest earnings shall be allocated to designated funds from its specific investments. B. Payment to the general fund of an amount equal to the total annual bank service charges as incurred by the general fund for all operating funds as included in the annual operating budget. C. Payment to the general fund of a management fee equal to five percent of the annual pooled cash fund investment earnings. D. Payment to each fund of an amount based on the average monthly cash balance included in the common portfolio for the earning period. (Ord.22(1989) VIII:Ord.34(1988):Ord.17(1987).) 3.52.090 Safekeeping and custody. All investment securities (which are held in book entry form) purchased by the town shall be held in third-party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the town listing the specific instrument, rate, maturity and other information. Securities may be purchased from the primary agent's brokerage department and safekept by the same bank's trust department. (Ord.22(1989) IX:Ord.34(1988):Ord.17(1987).) 3.52.100 Portfolio diversification. The town will diversify use of investment instruments to avoid incurring unreasonable risks inherent in overinvesting in specific instruments, individual financial institutions. Maximum Percent of Portfolio Diversification by Instrument: Money Market and Interest Bearing Checking Accounts with Commercial Banks 50~ Money Market A~~~aa~-~ Funds 50~ U.S. Treasury Obligations (Bills, Notes and Bonds) 100 U.S. Government Agency Securities (per Section 3.52.060(C1)) 100 U.S. Government Agency Securities (per Section 3.52.060(C2a)) 25~ Repurchase Agreements 75~ Certificate of Deposit Commercial Banks trf or Savings Banks 100$ Certificate of Deposit Savings and Loan Association 25~ Local Government Investment Pool 100 Diversification by Financial Institution: Repurchase Agreements No more than fifty percent of the total investment portfolio shall be secured in Repos with any one ` institution. Certificates of Deposit - Commercial Banks No more than twenty percent of the total investment portfolio shall be secured in any one commercial bank's CDs. If the amount of any of the above investments are in excess of the percentage allowed, it is not considered a violation of this policy if the amount is corrected within thirty days. (Ord.22(1989) X:Ord.6(1989)Ord.34(1988):Ord.17(1987).) 3.52.110 Maturity scheduling. Investment maturities for operating funds shall be scheduled to coincide with projected cash flow needs, taking into account large routine expenditures (payroll, bond payments) as well as considering sizeable blocks of anticipated revenue (sales tax, property tax). The average maturity of the portfolio shall never exceed two years. (Ord.22(1989) XI:Ord.34(1988):Ord.17(1987).) 3.52.120 Qualified institutions and broker/dealers. Qualified banks - can only be commercial banks and the town's investment with the bank may be in excess of one hundred thousand dollars. The town's finance controller shall obtain and review the bank's quarterly consolidated report of condition ("Call" Report) - the annual audited financial statements, the monthly listing of securities pledged for collateralization, and the independent bank evaluation, quarterly, to determine that the banks meets the standard selection criteria established by the investment committee . Non-qualified banks - can be either commercial banks or savings and loans or savings banks and the town's investment with the bank is or will not be in excess of one hundred thousand dollars. The finance controller shall inquire with bank officials and/or review an independent bank evaluation to determine the banks meets the standard selection criteria established by the investment committee . The town shall select a primary bank, the bank the town uses to process daily deposits and checks, every two years beginning in 1990. A formal request for proposal should be used in the selection process. Securities dealers not affiliated with a bank shall be required to be classified as reporting dealers affiliated with the New York Federal Reserve Bank, as primary dealers. Broker/dealers which are not primary dealers may be used if they have been approved by the investment committee. The investment committee shall develop and document the methodology for qualifying non- primary broker/dealers. (Ord22(1989) ` XII:Ord.34(1988):Ord.17(1987).) 3.52.130 Investment committee. There is hereby created an investment committee, consisting of the town manager, administrative services director, and the finance controller. Members of the committee will meet at least quarterly L to determine general strategies and to monitor results. Minutes of the decisions made by the investment committee shall be kept on file in the town clerk's office. The committee shall include in its review and deliberations such topics as: potential risks, authorized depositories, rate of return, maturity structure and investment transactions. (Ord.22(1989) XIII:Ord.34(1988):Ord.17(1987).) 3.52.140 Reporting requirements. The finance controller will submit a 3xon~~r~y quarterly investment report which discloses investments on the last day of each month. This report will be distributed to the town manager, town council members, and the administrative services director. The finance controller will present at least semi-annually the investment report to the town council. (Ord.22(1989) XIV:Ord.34(1988):Ord.17(1987).) 3.52.150 Monitoring and adjusting the portfolio. The finance controller will routinely monitor the contents of the portfolio, the available markets and the relative values of competing instruments, and will adjust the portfolio accordingly. (Ord.22(1989) XV:Ord.34(1988):Ord.17(1987).) 3.52.160 Internal controls. The finance controller shall establish a system of written internal controls, which shall be reviewed annually by the independent auditor. (Ord.22(1989) X:Ord.34(1988):Ord.17(1987).) 3.52.170 Policy review. The investment policy shall be reviewed annually by the investment committee and the town council. (Ord.22(1989) XVIII.) 3.52.180 Funds borrowing from pooled cash fund. All funds may borrow cash from the pooled cash fund in order to cover shortfalls in their equity in pooled cash. The interest rate charged shall be equal to the interest rate earned on the pool at the time the money is borrowed. RRTT Revised: 1/ 3/1991 T041N OF 9AI6 REAL BSTAT6 TRANSFBR TAR Ristory and Budget 1991 1980 1981 1982 1983 1984 1985 198fi 1987 1988 1989 1990 ; 1991 1991 BUDGRT NONTR ACTUAL ACTOAL ACTOAL ACTUAL ACTUAL ACTUAL ACTUAL ACTOAL ACTUAL ACTOAL ACTUAL BODGBT ACTUAL PARIANCB January 63,999 98,089 lOfi,981 119,972 18,053 80,733 101,374 131,91a 96,119 309,233 162,954 ; 104,139 165,141 61,002 February 40,595 69,018 105,024 132,220 86,289 170,052 64,906 44,040 109,873 140,192 133,085 ; 94,373 71,413 ( 22,960} Nareh 69,a86 126,935 109,533 137,820 62,693 63,631 92,557 38,791 68,104 145,957 77,995 ; 86,341 183,fi9a 97,357 April 76,855 94,fi53 65,900 103,526 173,321 90,396 182,743 95,554 179,671 151,069 152,027 ; 119,168 108,040 ( 11,128) Nay 42,738 84,324 54,6fi3 90,599 96,006 228,673 98,651 120,984 99,736 220,299 167,972 ; 110,225 96,994 ( 13,231) June 62,239 125,433 54,48a 140,638 7fi,467 49,513 79,915 73,509 101,364 122,466 136,364 ; 88,783 141,863 53,080 5ubtotal 356,312 598,452 496,589 724,775 572,829 683,198 620,146 504,794 654,867 1,089,216 630,397 ; fi03,030 767,149 164,119 July 49,367 186,110 104,262 69,539 157,598 89,528 70,441 47,949 126,537 125,675 75,169 ; 92,397 August 79,859 115,499 71,282 97,806 58,937 32,860 140,182 61,137 109,315 86,347 77,486 ; 79,193 September 59,800 113,992 49,332 96,746 64,671 48,516 108,167 78,819 116,557 143,306 75,745 ; 81,485 October 108,510 154,000 42,498 122,546 88,732 109,633 93,860 124,291 177,360 241,393 118,986 ; 117,125 November 142,623 107,768 81,698 91,385 105,109 74,909 a9,047 114,839 241,888 165,964 102,210 ; 102,481 December 142,662 133,afi7 110,911 56,533 81,890 333,139 106,695 95,495 192,947 192,731 107,880 ; 124,290 TOTAL 899,133 1,409,688 956,572 1,258,330 1,129,766 1,370,383 1,188,538 1,027,324 1,619,471 2,044,638 1,387,873 ; 1,200,000 767,149 164,119 WORK SESSION FOLLOW-UP Page 1 of 2 July 5, 1991 TOPIC QUESTIONS FOLLOW-UP SOLUTIONS 8/8/89 WEST INTERMOUNTAIN LARRY: Proceeding w/legal requirements f r Council is mulling over next step. ANNEXATION annexation. (request: Lapin) 07/27 UNDERGROUND UTILITIES IN LARRY/GREG: Work with Holy Cross Electric Undergrounding may occur in fall of EAST VAIL to establish special improvement district( ) '91 or '92 or spring of '92. Engineer for underground utilities in East Vail. hired and design underway. Proceeding with process. 09/20 LIONS RIDGE FILING 4 LARRY: Homeowners Assn. would like Town t Steve Lindstrom stated back taxes have purchase common area for back taxes and been paid by the Association with no penalties. benefit to the TOV to purchase from the Association; the matter is now resolved. 12/18 MILLRACE CONDO. ASSN. KRISTAN: Respond. With foreclosure of property complete, LETTER follow-up on new contacts initiated in order to get a response. 1/11/91 SNOW DUMP RON/GREG: Work out site acquisition with A. Revised lease is back at VA now for Complete design. review. 02/05 CHUCK ANDERSON YOUTH RON/ROB: Let's be prepared to award this Final awards to be given at the 7-16-91 RECOGNITION (request: Rose) spring. evening meeting. 04/09 PUBLIC UTILITIES STEVE BARWICK: Reassess municipal CML has provided information for Steve. A ACQUISITION involvement/ownership of public utilities. special session at CML on public utilities Provide budget in 1992 for feasibility stu y. ~ will be held. Information forthcoming. 05/07 VA/2% SALES TAX COLLECTION LARRY/STEVE: Research remedies to change Research is underway. Larry to get any (request: Gibson/Lapin) this to a mandatory TOV tax collection. legal information needed to Steve. WORK SESSION FOLLOW-UP Page 2 of 2 July 5, 1991 ti TOPIC QUESTIONS FOLLOW-UP SOLUTIONS _ ~Y 05/14 IMPROVEMENTS TO MULTI- KRISTAN: What incentives can the TOV Research underway. FAMILY BUILDINGS provide to condominium/townhouse associa- (request: Fritzlen/Lapin) tions to initiate/expedite this process? Investigate what California and Hawaii have on their books. 05/14 VIEW CORRIDORS KRISTAN: Research additional corridors Long-term project to be brought to Council to be legislated. within next 6 months. 06/04 EAST VAIL BIKE PATH GREG: What was the final resolution of th Greg Hall is working on this. Bill (request: Steinberg) bike path at the far east end of Bighorn? Linfield to review with Greg. North or south side access? 06/11 INFORMAL GET-TOGETHER COUNCIL/PEC/DRB/STAFF: Informal get-toget er at Peg Osterfoss` home on Thursday, July 2 , 5:00 p.m. 07/02 NOISE COMPLAINT AT PEPI'S KEN: Investigate noise level. Ken has been addressing the issue. 07/02 KRISTAN SPEAKS AT COUNCIL/STAFF: Kristan Pritz to speak at VAIL SYMPOSIUM BREAKFAST 7:30 a.m., Tuesday, 7/9/91, at the Evergre n Lodge. Reservations made for six (6) Coun it members (excluding Lynn). This meeting wi 1 also formally recognize the Vail Valley Marketing Board. 07/02 SHOSHONE WATER RIGHTS RON: Speak with Warren Garbe to clarify Will do. TRADE issues and establish procedure for future (request: Lapin) talks. l,Lts ~1 ~ t ~ q i ~.~r,~ a - vale, sn~osluM T BUDt~~ i 1991 PROJE~ ~ r.~ SOURCES OF FUNDS Donations $16,000 Organizational/Governmental 30,000 Fundraisers 16,000 Ticket Sales -Annual Forum 2,000 Symposium Breakfast Series 4,500 Registration Fees -Youth Symposium 1,000 In-Kind Donations 3,000 TOTAL $72,500 PROJEC i r.~ USES OF FUNDS Production of Annual Symposium $47,850 Breakfast Series 7,500 Youth Symposium 1,500 Community Workshop Sessions/Community Forum 5,000 Fundraising costs 4,850 General Operating 5,800 TOTAL $72,500 OBJECTIVES FOR 1991 1. To produce an annual forum -The 21st Vail Symposium: "Rethinking Vail Valley -Strategies for Quality." September 21, 1991 ($47,850) 2. To hold at least ten Symposium Breakfast Series Presentations within the year ($7,500). $5,000 Revenue - 50-70 attendees $10/ticket. 3. To produce a Youth Symposium. September 21, 1991 ($1,500). 4. To assist the Eagle Valley Community Forum in it's startup stage, and to provide funding for the Community Workshop Sessions by Dr. Alison Gill of Simon Fraser University as part of the Fall Symposium ($5,000). FUNDRAISING OBJEt,, i i VES FOR 1991 1. To obtain $46,000 in sponsorships through private donations ($16,000) and organizational sponsorships ($30,000), prior to August, 1991. 2. To hold a restaurant benefit and auction to raise funds in the amount of $12,000. June 20, 1991. 3. To hold a joint fundraiser with the Sir Edmund Hillary Foundation to raise f funds in the amount of $4,000. June 4, 1991 4. To maintain combined fundraising and general operating casts at less than 20% of the total budget. ' \rail Symposium 21 RETHIPJFCIPJG NAIL \rALLEY - STRATEGIES FOR QUALITY Confirmed speakers to date: Thomas Hovinct, Former Editor of Connoisseru Magazine and Former Director of the Metropolitan Museum of Art Dr. Alison Gill, Professor, Department of Geography, Simon Fraser University Jean Grace, Mayor, Carmel by the Sea, California Mules Rademan, Public Affair Director of Park City, Utah John Galvin, Irvine Development Corporation Terry Minger, President of the Institute for Resource Management, founder of the Mail Symposium Shirley Younq, Nice President of Consumer Market Development, General Motors Corporation (tentative speaker) Biographical Sketch Alison M. Gill, PhD Simon Fraser University Alison Gillis an Associate Professor with a joint appointment is the Department of Geography and the School far Resource and Environmental Manaa,:,..ent at Simon Fraser University, Vancouver, British Columbia. In addition to teaching undergraduate and graduate courses relating to tourism she is actively involved in tourism research. Her particular expertise is in the area of the social and behavioral dimensions of community planning. She has published extensively on earlier work concerning single industry resource communities addressing such issues as planning evaluation, implementation and monitoring of plans, social interaction, environmental design and community development. Dr. Gill's recent work extends the theoretical base of her previous work to the context of resort communities. Working in conjunction with the Resort Municipality of Whistler, Dr. Gill is currently involved in a community development project which introduces innovarive approaches to community input into resort management. F,.,.~ a theoretical perspective this research contributes to work on sustainable community development and social impact assessment. Geographically, Dr. Gill's research on resort development has focuses especially on . mountain environments and she has contributed to several workshops and seminars with this specific focus. V A I L Exploring Today's Realities July 3, 1991 CHAIRMEN Mr. Kent Rose Karen Morter Mayor CO-CHAIRMAN Town of Vail Patricia A. Teik CO-CHAIRMAN 75 S. Frontage Road Vail, CO 81657 BOARD OF DIRECTORS George Austen III Roseann Casey Bruce D. Chapman Dear Kent: ~p0 Sherry Dorward Judith Evans On Tuesday, July 9th, the Vail Symposium will seek significant financial support of Jane Healy Rosalie Hill Isom ~15;0fl0 from the Town of Vail. Sharon McKay Jewett ~~d/ UUo Elaine W. Kelton Recent trends in the resort industry underscore the conviction that the Symposium is a Debby Olsson McClenahan critical forum for the Vail Valley, and a means of bypassing some of the difficulties Terrell J. Minger other resort areas have been encountering. In the past couple of years I have had the Karen Morter opportunity to work and speak in Sun Valley, Aspen, Snowmass, Whistler, and Park Beth Ruder City. My impression is that all of these areas are struggling with the same fundamental Katherine M. Schmidt issues -how to keep market share in an era of flat skier growth and increasing Patricia A. Teik competition, and how to recreate the spirit and energy that existt~l in the "early days." Barbara Treat Sun Valley, once the nation's premier resort, provides an unsettling example -witness OFFICERS its progressive decline. Karen Morter PRESIDENT It seems that these are the very issues facing Vail today. In order for Vail to continue Patricia A. Teik to occupy its place of prominence in the resort industry, it is essential that the VICE PRESIDENT community continually enrich and renew itself through a recognition of where it has Katherine M. Schmidt been and a vision for where it should go. It is precisely this perspective and vision TREASURER Sharon McKay Jewett that the Symposium has been providing for the past 21 years. SECRETARY AND ADMINISTRATOR Communities like Steamboat Springs are just now developing an annual forum for the ADVISORY discussion of local and global issues. I think Vail is lucky to have an established Donald G. Berger institution which promotes self-critical thought and community-oriented action. The Jerry Davis Town of Vail's help goes beyond mere monetary assistance and serves as an important Catherine E. Dolan public endorsement of the need for community education and dialogue. We know the Wendy M. Gustafson Town of Vail recognizes the uniqueness of the Symposium and hope you will favorably Kay Saulsberry support our request for financial and public support. Susan Weber Sincerely, / Terry Mintier ' Honorary Chairman Post Office Box 3038 ? Vail, Colorado 81658-3038 ? 303/476-0954 VAIL SYMPOSIUM -EXPLORING TODAY'S REALITIES Obiectives: To sponsor and hold the annual Vail Symposium focusing on the emerging issues of the Vail Valley community and the Nation; to hold a series of Breakfast meetings addressing these issues; to produce an annual Youth Symposium; to institute a series of small community forums with the Eagle Valley Community Forum; and to be fiscally responsible. ' Backeround: The Past The Symposium was originally conceived as a forum to think long term and ' broadly about Vail and the issues facing it in the 70's and 80's. Early topics included "The Future of the Ski Industry," "The Vail Growth Management Plan," "Energy and Water Development in the West," "Public Lands," and "Human Settlements in the Rocky Mountain West." Achievements of the Symposium have included Vail's first comprehensive master plan including the Dobson Ice Arena, the village transportation center, the purchase and preservation of Green-Belt areas, the long term plan for what has become Ford Park, establishment of bike paths, and protection of view corridors. Past participants represented a wide range of personalities, view and opinions. Notables have included Gerald Ford, Stewart Udall, John Lindsay, Dick Lamm, John Love, Rene Dubos, Bruce Babbitt, Gary Hart, Ian McHarg, Tom Brokaw, Helen Thomas, Cecil Andrus, Tom McCall, Ed Abbey, Scott Matheson, Bill Janklow, Robert Redford, Kenneth and Elise Boulding, Pat Schroeder, Frank Zarb, Harlan Cleveland, Donald Runsfeld, Noel Brown, Steve Schneider, Hazel Henderson, Frank Shorter, Eldon Beck, Dr. Hanspeter Danuser, J. Gary Watson. Philosoohv: In the Republic, Plato sketched a theory of the relationship between the character of a people and the nature of its political and economic community, the way it organizes and governs itself. Good communities are places that encourage active participation among their citizens in problems of contemporary society. The Vail Symposium was founded on similar ideas that the kind of place we want to be, i.e. resort community, state, nation, depends on the kind of people we hope to become -our collective character. Thus the symposium has been centered on a broad range of dialogue between individual and community, community and outside world. Past symposia, although diverse, have consistently asked, who are we? How - do we think about community, place, growth, commerce, recreation, culture and environment? What is our collective Vail character? The Future: The Vail Symposium will mirror, help decode and plan for the global economy/environment of tomorrow. While respecting our past and roots, we will offer a yearly look at the future, and provide a forum of dialogue for the community. y~~ ~ ~ ./J k- ~t15 ~ • r ~ ~l l~t~-~ - ~d~t~t-t ~8 SUS ~a~e~.~•t,~ ~o Wl,cc.~l,~- _ s TO : Town Council ~ FROM: Community Development Department DATE: July 9, 1991 SUBJ: Legislation concerning the requirement of reserve funds for maintenance of multi-family buildings The Community Development Department conducted research into possible legislation in Hawaii, California, and some communities in California pertaining to the requirement of reserve funds for maintenance of multi-family buildings. The results are below: CALIFORNIA: Mr. Chris Neeley from the California Department of Real Estate (916-739-3628) was contacted. The State of California does have requirements which were described as being complex. We have ordered a copy of the legislation from the California Department of Real Estate, and will describe the key points of the legislation when we receive it. The condominium association is held responsible for providing required maintenance. With new projects, lack of a provision for maintenance in the condo declarations is grounds for denial of the condominium plat. CALIFORNIA MUNICIPALITIES Interestingly, not one California city which was called has any requirement for maintenance. HAWAII Mr. John Norris of the State Real Estate Commission (808-586-2644) was contacted. Hawaii has just passed legislation, but it applies only to condominiums. Please see the House Bill attached. This bill will go into effect in January 1993. With the new legislation, condominium associations are required to adopt a budget with reserves for maintenance, and assessments for owners. The board of directors must prepare and adopt an annual operating budget including estimated revenues and operating expenses, total cash reserves to have on hand, estimated cash reserves required to maintain the property, and an explanation of how the cash reserves are computed, etc. - The cash reserves must be computed based on the estimated life and the estimated replacement cost or major maintenance expense of each part of the property, and there are other restrictions as well. The bill also provides for protection from liability if the estimated amount of cash reserves proves incorrect. Hawaii is giving existing condominium associations 5 years to bring their reserves up to the required amount. Two additional years are given if emergency expenses are incurred. The Hawaiian Real Estate Commission sponsors a mediation service for condominium disputes specifically for owners, boards, and managing agents because of the large number of condominium-related complaints received each year. A memo describing this process is also attached. - ~ H B N U b~ HOUSE OF REPRESENTATIVES ~ ~ ~ H.D. 1 SIXTFEMH LEGISLATURE, 1991 S. D. 1 STATE OF HAWAII ACT 13 2 C.D. i A B! LL FUR AN ACT RELATING TO CONDOMINIUM ASSOCIATION BUDGETS AND RESERVES. Bc TT EN.~?CTED BY i tir. LEGISLATURE OF THE STATE OF HAWAII: 1 SECTION 1. Chapter 514A, Hawaii Revised Statutes, is 2 ascended by adding a new section to be appropriately designated 3 and to read as follows: 4 "~514A- Associations of apartment oKaers; budgets and S reserves. (a) The board of directors of each association of 6 apartment owners 'shall prepare and adopt an annual operatinc 7 budget and distribute it to the apartment owners. At a minimum, 8 the budget shall include the following: 9 The estimated revenues and operating expenses of the 10 association; 11 ,~2~, Information as to whether the budget has been prepared 12 on a cash or accrual basis; 13 ~ The total cash reserves of the association as of the 14 date of the budget; 1S ,~j, The estimated cash reserves the association will 16 reguirs to maintain the property; 17 ~ A General explanation of how the estimated cash 18 reserves are comvuted; and 19 16~, The amount the association must collect for the fiscal, 20 year to fund the estimated cash reserves.. Page 2 666 _ H, B. N o t H.D. 1 S. D. 1 C.D. 1 1 (b) The association shall assess the apartment owners to 2 fund the estimated cash reserves; urovided th~~r ~ new associat:.or. 3 created after the effective date of thi..4 ;Art need not collect 4 estimated cash reserves until the fiscal year which begins a_°ter 5 the association's first annual meeting. For P~c.h fiscal year *_he 6 association shall collect the full amount required to fund the 7 estimated cash reserves for that fiscal veer except: $ ~1„ The commission shall adopt rules to permit an existinc 9 association to fund its estimated cash reserves in 10 increments during the first five veers after the 11 effective date of this Act; and 12 LZ,Z The commission shall adopt rules to persait an 13 association to fund in increments, over two years. 14 estimated cash reserves which have been substantially IS depleted by an e=aercencv. 16 (c) The association shall compute the estimated cash 17 reserves by a formula which is based on the estimated life and 18 the estimated replacement cost or maior maintenance ex»ense of 19 each mart of the vrouertv. The estimated cash reserves shall 20 include: 21 ~I,Z, Adiustments for revenues which will be received and 22 exnendit.ures which will be made before the beainninc of 23 the fiscal year to which the budcet relates; and H8666•CDi P°ge 3 ~ H B NO ~ ~ ~ H.D.1 S.D. 1 C.D. 1 1 Separate, designated reserves for each part of the 2 property for which capital expenditures. or mayor 3 maintenance will exceed S10,000. Parts of the croper~v 4 for which capital expenditures or maior maintenance g will not exceed S10,000 may be aggregated in a sine e 6 desicriated reserve. 7 (d) No association or apartment owner, director, officer, 8 managing agent, or employee of an association who makes a good, 9 faith effort to calculate the estimated cash reserves for an, l0 association shall be liable if the estimate subsequently proves 11 incorrect . 12 te) The commission may request a copy of the annual 13 operating budget of the association of apartment owners as part, 14 of the association's registration with the commission under, 15 section 514A-95.1., 16 (f) Aboard may not exceed its adopted annual operating 1'7budget by more than twenty per cent in a fiscal year except in 18 emergency situations. Prior to the imposition or collection of 19 a.n assessment under this paragraph, the board shall pass a 20 resolution containing written findings as to the necessity of the 2lextraordinarv expense involved and why the expense was not or, 22 could not have been reasonably foreseen in the budgeting process, 23 and the resolution shall be distributed to the members with the, HB666~CD1 _ ~ Page 4 H , B , N O , o. , s.D. , C.D. 1 1 notice of assessment. 2 (t) The commission may adopt rules to implement this 3 section. 4 (h) As used in this section: 5 "Capital expenditure" means an expense which results from 6 the purchase or replacement of arx a.4a.et whose Life is treater 7 than one year, or the addition of an asset whic_.h extends the life 8 of an existing asset for a period greater than one vear. 9 "Emergency situation" means any of the followint: 10 ~ An extraordinary expense required by an order of a 11 court ; 1Z An extraordinary expense necessary to repair or 13 maintain any part of the property for which the 14 association is responsible where a threat to personal 15 safety on the property is discovered; or 16 An extraordinary expense necessary to repair any Dart 17 of the property for which the association is 18 responsible that could not have been reasonably 19 foreseen by the board in vreparina and distributinc the 20 annual operating budtet. 21 "Maior maintenance" means an expenditure for maintenance or 22 repair which Mill result in extendinv the life of an asset for a 23 period treater than one vear. HB666 CD1 - ~ Page 5 H , B . N O , o. S.D. 1 C.D. 1 1 "Cash reserves" means funds for the uckeeo. recair, or 2replacement of those carts of the property includinc. but not 3limited to roofs, walls, decks, paving, and eauicment, which the 4association is obligated to maintain." S SECTION 2. New statutory material is underscored. 6 SECTION 3. This Act shall take effect on January 1, 1993. Approved by the G~~~~.:'~r on MAY 2 21991 CONFERENCE COMMITTEE REP. NO. Honolulu, Hawaii 1991 RE: H.B. No. 666 H.D. Z S.D. 1 C.D. 1 Honorable Daniel J. Kihano Speaker, House of Representatives Sixteenth State Legislature ` Regular Session of 1991 State of Hawaii Honorable Richard S. H. Wong President of the Senate Sixteenth State Legislature Regular Session of 1991 State of Hawaii Sir: Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 666, H.D. 1, S.D. 1, entitled: "A BILL FOR AN ACT RELATING TO CONDOMINIUM ASSOCIATION BUDGETS AND RESERVES," having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an a.::.ended fora. The purpose of this bill is to improve the financial solvency and planning of apartment owners' associations by requiring these entities to prepare budgets and establish reserves for future expenses. Your Committee finds that the failure to establish adequate reserves can impose considerable hardship on the unit owners in the form of large and unexpected special assessments. Zn many instances there is no accumulation of reserves for a number of years, then units are sold leaving the successors with an obligation to pay for the lack of reserves. HCCR H8666 CD1 CONFERENCE COMMITTEE REP. N0. • Page 2 Zn addition to the need for budgets and adequate reserves, your Committee finds that the lack of provisions to prohibit associations of apartment owners from unnecessarily exceeding the annual operating budget significantly limits the effectiveness of this measure. Your Committee further finds that the term "deferred maintenance", as utilized throughout this measure, may be misinterpreted by apartment owners to mean maintenance costs that are waived or postponed. J ~ Accordingly, after discussion and careful deliberation, your Committ`e •has amended this bill by: (1) Prohibiting an apartment association from exceeding its 1i adopted budget by twenty percent in a fiscal year, except in emergency situations; (2) Defining the term "emergency situation" to include extraordinary expenses incurred for court costs, costs attributed to ensure the safety of apartment dwellers, and unforeseen repair and maintenance costs; (3) Replacing references to the term "deferred maintenance" with the term "major maintenance" and defining the term; and (4) Including the "association^, among those to be insulated from liability for a good faith effort to calculate the estimated cash reserves; (5) Substituting the term "su•bstantially" for the term "totally" in page 2, line 16 of S.D. 1; and (6) Making technical, nonsubstantive amendments for the purposes of clarity and style. Your Committee on Conference is in accord with the intent and purpose of H.B. No. o'6ei, 3.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 666, H.D. 1, S.D. 1, C.D. 1. HCCR HB666 CD1 . CONFERENCE COMMITTEE REP. N0. ~ • Page 3 Respectfully submitted, MANAGERS ON THE PART OF THE MANAGERS ON THE PART OF THE SENATE HOUSE M CROZIER, air ZZE ROI~f0, Chair 1 AMES AKI, Member ~ DUKE BAIPUM, Me~f' RICK REED, Member DAVID MORIHARA, Member HENRY H. PETERS, Member /l f? i!%~fC%~~ J~r~~ CY~HIA THIELEN, Member HCCR HB666 CD1 ,fir. j _ ii'~ ~~y ~ a~~°°n+..~i ~.1 ~3. :.i of _ i w .t, ~i 'x S . .f 11.011 ~•Si1C...F+ ~ . k . fOff11T 1. •U~ Y~~..v. ~ ~ i 1~\ ~ ~ :1 rgGT011 1 ? f 7~ Vie. _ 't"! ~ ' " en•. 4 s..,S;. _ - ~ ~i>rin10 ~Owrlfturp `~r ~ ~ ~ MISSION - ~ e `YY y ~ n~ A REAL ESTa?TE COM ~..f ~ t ~ ~'•'.ST~T~,O?.N~w~ll,_•.'-:, - ~ r s~ ~ PROFESSIONAL. ~ 'VOCATIONAL':-LICENSING DIVISION .:ti: _~'r`,;. _ ENT OF COMMERCE •AN . - _ __-~r..'• s`:r: O CONSUMER AFFAIRS - - • _ 'tii'!- ~ SON w• - ..^.5 .ti.. _ i..: . - Bust 1990 . _ ~ t... `%:.R o _ ondominium Association Contzct Persons; titanaging Agents ' ~ ~ - ~~n~'.y t•rom:-Condominium Specialists, Rezl Estate Commission • ~ - 3'"~ ~r ~e Real Estate Commission Sponsored .~Sediation Service For Condominium Disputes - • • ~ - ~ ~ Real Estate Commission has launched a mediation service specifically for condominium _ _ _ ~ • ~w•ners. boards. znd managing agents. The mediation service will be operated through the `eighborhood Justice Center of Honolulu 1"vJC"), znon-profit organization. experienced in ~ • 's .:providing mediation services to the public. For more information about the new service call the NJC _zt :_1, 6167 or the Commission at ~~i8 3~O1. ' • _ - Funding for the service comes from the Condominium Management Education Fund. which - x ~ - xas -established last year b the Le Mature to Y- g~ promote, among 'other things: "Expeditious and _ = -:';.::.inexpensive procedures for resolving condominium association disputes." : As a result. of that. • ~:{t=;" ; unding, parties each ply only z S LO filing fee to partici ate in the me i v' ' _ _ p d anon ser tce s: ~ - s; The impetus for the mediation -service has been the large number of condominium-related 4A, , to , •omplaincs which the Commission receives each }-ear. The Commission and its staff expect that 4::.:mediation can resolve many condominium disputes more quickly and cheapi.y than litigation and ~~-=.:_.~.~•.-..:`,::.-..,..::'„;"':=.~~rbitration, the two methods of dispute resolution which the condominium law presently provides. ~ ~ • . ~ s• ~ > ••:The Commission has found that: li) parttes to••a dispute w•ho are willing to s?t down and ,:,t.~4.~_,~,;:..,.-;,-;:•., ...iscuss their disputes can usually resolve them as effectively as any.~udge o: ard:::a:er, znd lii) chsc;~`Y ~ y,~ the parties will not always be able co mediate their disputes without outside hclp._ Too often. parties , . _ ~ ~ ~ ,litempcs to resolve their own disputes degenerate into shouting and name-calling. Therefore. parties = _ =~°,~to z dispute should consider using the services of a trained mediator before z dispute becomes iti ~ unmanageable. , N t ~ r R , Anyone with an unresolved complaint or claim involving ,the, condominium's board. . c~-.<>-.,_ n..~.. management. residents (owners and tenants). or neighbors. may use the new service. Disputed issues.:; `~-°~"°~_'E~°~=_:`:~:';may. relate to the condition or use of the property, house rules violations and enforcement. actions.:":=. of the board or management, claims against owners and residents. employment-related problems, ti~endor complainu. and neighborhood problems. . , ~ _ - „ , ~ -3 •:.::~:.;:.:fl{•: _i<-;~:- . -titediation is.very effective in settling disputes before they escalate to the point of arbitration - ~ • 8 Y g problems informal) r~3 , or liti anon. B solvin y, parties in condominium conf lieu can salvage damaged ` _ ...f:.:,, . relationships and save themselves and their associations time, money. and aggravation. Relationship ,_;.and communication issues are particularly critical in condominiums since people live. close together °~r-~•>``- .and unresolved conflicts can seriously affect the quality of life. .:.:1 , : . _ _ , . _ Ir ~ n,1 d'''1'~I~.~" .ice '1' y :5.~ -1t ''4. .'~r + Rp• v any Y r r' , .~+f . a F tk "~.ijy L~' 'it ~.~sC{mot 1 , ` 'YEN 5 ,r ..i s r^~v~ tea, c" " < I} 7 2•f(ti ~ A ~ N ' ~ ~ ` ;.Specially selected and trainedvolunteer mediators.convene the parties and assist them' in . -4=~` ;ommunicating about the issues. exploring possibla solutions. and negotiating mutually acceptable_';~='-.; A'"~" :~~settiemenrs. ~ Ualikt judges and arbitratan. a mediator does not impose a soluuon on the parties::`f ~3 ' Y ~~~lnstead. the mediator tries to help the parties reach. their own solutions: The mediator's function., is _ y ~ = ; ~~~to keep the parties focused on issues not personalities. and on solutions noc blame..: - .r..• t : - . ~ _ . °•"~~°-^'t ~~'~~'-~-~~:`=~~The` mediators' training which. covers-many ~of "the legal and economic as ecu of ,,;.;_ondominium governance end operation. was dtveloped by NJC Executive Director. Leland Chang; ~ . ' ~~'an experienced mediator and farmer .board member and president of the 428-unit titott-Smith - 4~~_:<t.,;~; -,~-~f~'Laniloa Auociacion. -The training was presented.by .1~tr..Chang and•Jahn_~torris. ont,pt:.the lZezl,:,° . ,r~r,~k,~,~~~Estate .Commissioa s Condominium Specialists - - T ti, *~^,.-~-`x~~f„ } ~ ; ° Experience suggests. that mediation .will result in aectlemenc of "5°6 or more of the czses - 'dandled. Since mediation relies on mutual agreement among the parties. t..ey can noc oe forced'into::~,;::: ' fir- "=~~=~~'"~~~~~~an agreement against their will. in those casts in which agreements are noc reached. mediation will - ~~~~~_~~~yhelp the parties defuse some of the hostiiiry and clarify the issues and inctrests at stake. Parties to ^ ~c;._ mediation retain all rights to pursue any other dispute resolution option that is available. including :arbitration or litigation, Confidentiality of matters dsscussed in mediation is maintained. by the ,;s,.:.,.µry_~.;.,~~~~":.-mediators and the ~JC. - ~ ~ s._ r r ~ Mediation is not just for resolving disputes. (t can also serve as ~n educational tool. For ; ~r'~-~ ~s~Y.~~: xampte, board members mzy know the law supports their position ar prevenu them fcom negotiating: ; ~i. ,~.::i dit'ferent outcome co a dispute. Ceder those circumstances, board members'may ate no reason to ~ ~ ~ _ :mediate or even communicate with owners. ~'evertheless, mediation can help explain the boards r.M;,,.,y _ : jzcision or the legal restrictions on its freedom of action. few hours spent in mediation may t ~ , revent many more hours of bitter dispute. `ot all disputes disappear if ignored. S'~-~':_n ~ ~ ~ .although self-governance is the basic principle of the condominium law, many people would - `=-~'~~~`=<'';ike the Commission to intervene in condominium disputes and impost solutions on owners. Thu ~.~t'~~:::_,~:~:.F~"~~ ~•ear. the Governor ~'ztoed ~ bill 'which would have allowed the Commission to remove board ` - ..,:;_~4._ ' ;members who failed to follow certain provisions of the law, `tediation gives boards, owners. and ~s~~,;~,.~-._,.~~;•;~.;• _~nttnaging agents the opportunity to aevelop their own solutions without outside incerterence. if . , ~_.oards, managing agents. and owners fail to cake advantage of the mediation service, they may find ' ~-=-._:~-~.:a ° ~~•::nemselves raced with less i lexible alternatives. Please call :21 -6.6; ~r :~8 :;01 it ~~~ou kia~•e any questions or comments. - :F to t~.+i/ 'r ~'4~ ~ ~ - SN'.:. t ~~,~7 ~F ~ ~ it :i~:._:.,"j'::. ,y _ ~ ~ ~ - ; .;ti-r .r. ~:v......c .a ~ _ ~s t,;. :r„ _ • ~ 5,.. f ~ ' 1~} '~S. a S l :4 * ~y,~~...~: .