HomeMy WebLinkAbout2008-11-04 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, November 4, 2008
6:00 P.M.
Vail Town Council Chambers
The regular meeting of the Vail Town Council was called to order at
approximately 6:00 P.M. by Mayor Dick Cleveland.
Members present: Dick Cleveland, Mayor
Mark Gordon
Farrow Hitt
Kevin Foley
Kim Newbury
Andy Daly
Not present: Margaret Rogers
Staff Members: Stan Zemler, Town Manager
Matt Mire, Town Attorney
Pam Brandmeyer
The first item on the agenda was Citizen Input.
Vail Mountaineer Publisher Jim Pavelich urged Council to readdress the availability of
newspaper boxes in Vail Village and LionsHead.
The second item on the agenda was the Consent Agenda.
➢ Approval of the 10.07.08 & 10.21.08 Minutes.
Daly moved to approve the minutes with Foley seconding with minor amendments. The
motion passed unanimously, 6-0.
The third item on the agenda was the Town Manager's Report.
➢ Revenue Update.
Budget and Finance Reporting Manager Kathleen Halloran reported that when all sales
tax returns are received for the month of September, collections for the month are
expected to be $836,137, down 7.95% from September, 2007. Year-to-date sales tax
collections of $15.6M are up 6.3% from 2007. For comparison, inflation as measured by
the consumer price index was up 4.9% for the month of September, and up 4.2% for the
first half of 2008 compared to prior year. Use tax collections began as of January 1, 2008.
As of October 30, collections total $610,800 of revenue. This is $110K over the amended
budget of $500,000. Construction permit revenue currently totals $2.2M, down 12% from
this time last year. However, due to conservative budgeting collected revenue currently
exceeds the amended 2008 budget by $487K. The decrease in activity from the prior year
is due to both major and non -major redevelopment projects. Major redevelopment projects
make up 76% of the total, and construction permit fee revenue from those projects is up
by 8% from prior year. Revenue from non -major projects is down 24% from this time last
year. RETT collections through October 28, 2008, total $6.3 million. This amount is a 34%
increase from this time last year primarily due to recent sales of major redevelopment
projects. The overall real estate market in Eagle County is down 27% in sales dollars and
down 46% in sales transactions as of August, 2008. Major redevelopment projects such
as the Arrabelle at Vail Square, Forest Place, One Willow Bridge, Vail Plaza and The
Willows account for 59% of year-to-date 2008 collections. This is significantly higher than
the 23% from October 2007, and is the reason Vail's RETT revenue is performing much
better than the rest of the county. RETT collections from property transfers not related to
major redevelopment projects dropped by 29% year-to-date as of October, 2008
compared with 2007. This is more in line with the sales decrease across the county.
➢ Conference Center Funds.
Town Attorney Matt Mire reported, "I see no reason why the new election (used to
determine the future use of the conference center funds) would be governed by TABOR."
The fourth item on the agenda was the Building & Fire Code Appeals Board vacancy
appointments.
Foley moved to appoint Lynne Fritzlen to the board with Hitt seconding. The motion
passed unanimously, 6-0. For details, contact Lorelei Donaldson at 479-2136.
The fifth item on the agenda was the First reading of Ordinance No. 24, Series 2008, an
Ordinance Approving A Holy Cross Energy Utility Easement within the Town of Vail Open
Space between Matterhorn Circle and Upper Matterhorn Circle.
Town Engineer Tom Kassmel informed Council an existing overhead electric line crossed
the middle bench open space without an easement. "This year Holy Cross Energy lowered
this stretch of overhead line at the request and cost of a private homeowner... Neither the
existing nor the current electric lines have had a dedicated easement." Hitt clarified there
was an underground utility vault placed in Donovan Park. "I'm not opposed to burying
power lines throughout the town...I have a problem with the way it actually happened."
Foley clarified the contractor would pay for the necessary restoration and permitting. Hitt
clarified Holy Cross Energy inspected and approved all of the work. Holy Cross Energy
representative Jeff Broom explained the utility line benefited the entire Matterhorn area.
Cleveland expressed concern future adjacent private property owners could have access
to above ground utility vaults on Donovan Park. Hitt moved to approve the ordinance with
Foley seconding. The motion passed unanimously, 6-0.
The sixth item on the agenda was the First reading of the 2009 Budget Ordinance No. 25,
Series 2008.
The $51 million budget was approved on first reading by a 5-1 vote, Daly opposed. A
public hearing is now scheduled for Nov. 18 for second reading. As recommended by
Council member Andy Daly, one modification was made during first reading where an
adjustment in the split of sales tax revenue between the General Fund and the Capital
Projects Fund was made. The proposed budget reflects a transfer of $750,000 from the
General Fund to the Capital Projects Fund in recognition of the need to sustain Vail's
world class infrastructure. The transfer is made possible by an $800,000 cut in the
General Fund as directed earlier by Council. The revised split means 61 percent of the
$19.4 million projected sales tax is allocated to the General Fund and 39 percent to the
Capital Projects Fund. This adjustment to revenues will boost the fund balance in the
Capital Projects Fund to $3.9 million for 2009, and leaves the General Fund with a surplus
of approximately $38,000 for 2009 and ending fund balance of $21.7 million. When the
split is greater than 50-50, the budget adoption process requires a super majority vote of
the Town Council. Earlier the month, Council directed town staff to cut or defer projects to
reduce expenses for 2009 in response to the changing economic climate. Specifically,
revenue from both Sales Tax and Real Estate Transfer Tax (RETT) were reduced by a
total of $1.2 million. Expenditures were also adjusted by $6.5 million for 2009: General
Fund operations were reduced by approximately $800,000 and capital projects in both the
Capital Projects Fund and RETT Fund of $5.6 million were deferred until 2010. In total,
projected 2009 revenue of $50.1 million is a 5.7 percent decrease from 2008. The 2009
budget proposes a 6 percent merit pool for full-time employees, which was discussed at
length by Council on Nov. 4. It was noted that the town's salary increases have lagged
those of other resort communities over the past five years and several Council members
acknowledged their appreciation of town employees before agreeing to keep the merit
pool at the proposed level. Gordon thanked Budget & Financial Reporting Manager
Kathleen Halloran for conservative budgeting. "This seems right in line with what needs to
be done." Foley clarified earmarked federal funds (transit center) would expire if a project
was not started in LionsHead by 2010. Daly expressed concern budget projections were
made during a time of great optimism and ambition. "We have a fiduciary responsibility to
our constituents to spend the town's dollars the way they would spend their own....l think
as we get on to 2013 to 2015 that our RETT revenue will decrease by 50%... If we are to
remain a world class community we have to put the dollars aside to sustain a world class
infrastructure" Gordon strongly supported not risking a potential reduction of services.
Camp explained the General Fund and Capital Projects fund split fluctuated in accordance
with the town's financial condition and economic projections. Foley expressed concern
that salaries and benefits had risen at a rapid rate. Cleveland clarified 15-20% of
employees do not receive the maximum merit increase. "I would be more comfortable with
a five percent pool as opposed to six percent...I think we need to acknowledge what could
be a tough year." Hitt stated since his time on Council the town has struggled to be a
competitive payer with similar communities. Newbury said, "It really bothers me you
(Council) will spend $150,000 on Bravo, but you won't split $90,000 (the value of a one
percent merit increase) amongst your employees." Hitt concluded, "I feel it would be more
detrimental to lose more key employees at this point than it would be to spend
$90,000... We've tried to play catch up for the past five years I've been here." Cleveland
stated, "I would certainly expect Council to stay on staff to monitor revenues in 2009."
Gordon moved to approve the ordinance with Newbury seconding.
The seventh item on the agenda was the First reading of Ordinance No. 26, Series of
2008, an ordinance rezoning a Town owned property, pursuant to Section 12-3-7,
Amendment, Vail Town Code, to allow for the rezoning of Parcel A, a re -subdivision of
Tract D, Vail Das Schone, from Commercial Core 3(CC3) District to General Use (GU)
District.
Newbury moved to approve the ordinance with Daly seconding. The motion passed
unanimously, 6-0.
The eighth item on the agenda was the First reading of Ordinance No. 27, Series of
2008, an ordinance rezoning a Town owned property, pursuant to Section 12-3-7,
Amendment, Vail Town Code, to allow for the rezoning of Parcel B, a re -subdivision of
Tract D, Vail Das Schone, from Two Family Primary/Secondary(P/S) District to Housing
(H) District.
Newbury moved to approve the ordinance with Foley seconding. The motion passed
unanimously, 6-0.
The ninth item on the agenda was the Second reading of Ordinance No. 22, Series of
2008, repealing and re-enacting Ordinance No. 6, Series of 2005, Vail Village Inn,
amending and re-establishing the approved development plan for Phase III of Special
Development District (SDD) No. 6, pursuant to Article 12-9A-10, Amendment Procedures,
Vail Town Code, to allow for the conversion of an existing office and retail space to
residential for an addition to an existing dwelling unit, located at 68 Meadow Drive/Lot O,
Block 5D, Vail Village Filing 1.
Planner Nicole Peterson explained the SDD major amendment ordinance request includes
the conversion of existing office and retail space to residential for an approximate 1,237
gross residential square foot addition to existing residential unit #110. The proposed
addition is immediately below the existing unit #110 and includes a new exterior entrance
off the pedestrian plaza on the north side of the building, mudroom, staircase, media
room, two bedrooms and three bathrooms. The proposal also includes the interior
reconfiguration of the existing unit #110 level 105.0' and minor exterior alterations. The
proposal does not include any additions outside the exterior walls of the existing building.
The addition area is currently occupied by three commercial lessees:
1) Digits Nail Boutique (108 net square feet of retail)
2) Portion of Robinson, Mitchell & Associates (115 net square feet of office)
3) Portion of To Catch a Cook (976 net square feet of retail)
4) Miscellaneous - Interior walls to be removed (38 net square feet)
Campbell explained the HOA as well as the property owner had to become applicants.
The applicant's legal representative Tim Devlin explained the progress of the proposal.
Foley clarified the Solaris development was responsible for making improvements to the
pocket park. Daly moved to approve the ordinance with Foley seconding. Newbury did
not agree with converting retail to residential. During a pause for public comment, Joe
Staufer said he had adequately contributed to the town and the ordinance deserved to be
passed. Local homeowner association representative Anne Bishop spoke in support of the
application and ordinance. "In our neighborhood we think this is a good thing...I think it is
a very private lovely space and no one is being disrupted." Vail Homeowners Association
representative Jim Lamont expressed concern Council demands (public access to a
private pocket park) were "heavy-handed." Daly then withdrew his motion. Hitt moved to
table the item until December 2, 2009, with Gordon seconding (In order to provide a
comparable public benefit analysis). Devlin said his client had no control over whether the
pocket park was public or not. The motion passed unanimously, 6-0.
The tenth item on the The Second reading of Ordinance No. 21, Series of 2008, for
prescribed regulations amendments to Section 14-10-7, Outdoor Lighting, Vail Town
Code, to allow for amendments to the outdoor lighting standards.
4
Hitt moved to table with Gordon seconding. The motion passed unanimously, 6-0.
The eleventh item on the agenda was the Second reading of Ordinance No. 23, Series of
2008, an ordinance amending Chapter 12-22, View Corridors, Vail Town Code, pursuant
to Section 12-22-4, Adoption of View Corridors and Section 12-22-5, Amendments, Vail
Town Code, to adopt two new view corridors and amend one existing view corridor in
LionsHead.
Newbury moved to table the item with Hitt seconding. The motion passed unanimously, 6-
0.
The twelfth item on the agenda was Adjournment.
Hitt moved to adjourn the meeting with Foley seconding at approximately 8:06 p.m.
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SEAL
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ATTEST:
V �
Lorelei Donaldson, Town Clerk
Dick Cleveland, Mayor