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Home My WebLink About2009-11-03 Town Council MinutesVail Town Council Meeting Minutes Tuesday, November 3, 2009 6:00 P.M. Vail Town Council Chambers Members present: Dick Cleveland, Mayor Mark Gordon Kevin Foley Margaret Rogers Andy Daly Farrow Hitt Kim Newbury Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Participation. There was none. The second item on the agenda was the Consent Agenda Daly moved to approve the minutes with a minor amendment with Foley seconding. The motion passed unanimously, 7-0. The third item on the agenda was the Town Manager's Report. a. Revenue Update Budget and Financial 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 $747,506, down 10.4% from September, 2008. Year-to-date total sales tax collections of $13.1 million are down 15.9% from 2008 and flat with the budget. Inflation as measured by the consumer price index was down (-1.3%) for the month of September compared to 2008. Use tax collections as of October 29, 2009, total $672,760, a 10% increase from this time last year, due to the Ramshorn project moving forward. The annual budget of $500,000 has already been met. Construction permit revenue through October 29 totals $745,819 down 65% from 2008. The 2009 budget assumed a 66% drop. The decrease in activity from the prior year is due to both major and non -major redevelopment projects underway in 2008. Major redevelopment projects so far this year make up 50% of the total. Revenue from non -major projects is down 26% from 2008. RETT collections through October 27, 2009, total $2.1 million, compared to a full year forecast of $2.4 million. This amount is a 67% decrease from last year due to both major and non -major redevelopment projects. Eagle County as of August, 2009, is down 65% in sales dollars and down 50% in the number of sales transactions. At this time last year, the town had collected over $6.5 million in RETT from sales of major redevelopment projects such as The Arrabelle at Vail Square, Forest Place, One Willow and the Vail Plaza. Year-to-date 2009 has seen limited sales from major redevelopment projects and is down 84%. Collections not related to major projects year-to-date are 38% down from this time last year. Across all funds, total revenue of $35.1 million is down 21.9% year-to-date from this time last year and down 3.5% from the budget. Town reserves total an estimated $50.6 million. b. Wildland Fire Debrief Fire Chief Mark Miller and Wildland Crew member Dusty Calfe presented a video highlighting the summer's wildland fire prevention activities. c. Introduction of Art In Public Places (AIPP) Coordinator. Public Works Director Greg Hall introduced the town's new AIPP Coordinator Molly Eppard. d. Timber Ridge Bond Update Finance Director Judy Camp reported the interest rate being paid on the Timber Ridge variable bonds has averaged just 0.9% this year. The resulting savings will allow Timber Ridge Affordable Housing Corporation (TRAHC) to reinstate the debt service reserve fund on the bonds to its required level. In addition, TRAHC will redeem all outstanding principal on its fixed rate bonds on December 1, 2009, saving $120,000 in interest over the next four years. Greg Hall then explained the details of a letter requiring Council approval prior to being sent to the Colorado Department of Transportation. The letter discussed plans for managed Frontage Road parking and future parking strategies, as well as the potential means for the town to take ownership of the Frontage Roads. Environmental Sustainability Coordinator Kristen Bertuglia asked for Council approval to enter into a Memorandum of Understanding (MOU) with the governor's energy office. "It's basically a handshake to allow the Town of Vail access to the free services the governor's energy office provides through their performance contracting program ... The town has selected an energy services company to provide a town -wide (energy) audit." Daly asked if any obligations came with the MOU. Bertuglia replied that the MOU obligates the town to act in a good faith effort to reduce energy consumption and follow the program guidelines. It was clarified a budget exists for the audit. Zemler then acknowledged Hitt for his efforts and diligence over six years as a Council Member. Hitt chose to not run for re-election in 2009. The fourth item on the agenda was a Planning & Environmental Commission (PEC)/Design Review Board (DRB) Update. During a review of the most recent meetings of the PEC and DRB, Chief of Planning Warren Campbell answered questions regarding the latest proposals to go before the two boards. No items were discussed in detail. 2 The fifth item on the agenda was Resolution No. 25, Series of 2009, A Resolution Approving the Development Option Agreement Between the Town of Vail, Colorado and Open/Hillwood Partners Vail One (OHP), Regarding the LionsHead Parking Structure Development Option Agreement. Town Attorney Matt Mire asked Council to consider the Development Option Agreement and vote on whether to authorize the Town Manager to sign and enter into the agreement with OHP on behalf of the town in a form approved by the Town Attorney. Hitt said the town might as well give OHP first opportunity to redevelop the LionsHead parking structure. OHP representative Mark Masinter said his company had acted as a responsible corporate citizen. During a pause for public comment, Joe Staufer said the next (newly appointed) Council should vote on the resolution and they should solve the parking problem once and for all. He then questioned Gordon's ability to vote on the resolution as he had received campaign contributions from Masinter. Ted Stears, Jony White Taylor, Josh Shlepenburg and Bill Suarez, spoke in support of the project. Suarez emphasized, "Let's get the infrastructure such as parking and employee housing prior to starting the project." David White and Gwen Scalpello urged Council to think the project through more thoroughly. Scalpello commented, "This agreement has no value to the Town of Vail." Bill Pierce said, "To think of taking valuable property into a private development is beyond my comprehension...I hope you will stop this discussion right now." Rayla Kundolf stated, "The town needs to revisit what the town really needs in order to move into the future." Dick Neal continued, "How many of you have gone down and looked at other (OHP) projects" He then reported the Perot group was in financial straights. Greg Moffet said the contract did not give away title to town property. Vail Resorts representative Kristen Williams said priority of the deed restriction on the property was protecting parking on the LionsHead parking structure. As Council discussed the resolution Rogers commented, "I wish it would have worked but it didn't... I'm not sure the money is there even if the project was feasible... Vail Resorts would not lift the deed restriction when we had a viable project ... Vail Resorts didn't lift the deed restriction and the world changed financially... This is part of the cost of doing business... Normally you would pay to tie up the property." Hitt said the agreement did not strip the Council of anything. He emphasized the possibility of $100,000,000 in public improvements and the previous proposal met all town development standards. Foley said he opposed the project. "We shouldn't be tying up six acres of town land." Daly said he had consistently been against extending this option. "The concept of encumbrances on a significant asset that may limit our capacity to make improvements in the future is unacceptable." Gordon said the agreement did not obligate the town. "I will remain committed to this process." Cleveland said he had been opposed to the project since day one. "I don't think it is in the best interest of the community to tie up any piece of property." Gordon moved to approve the resolution with Hitt seconding. The motion failed 3-4, with Hitt, Gordon and Newbury voting in favor. The sixth item on the agenda was adjournment. Foley moved to adjourn with Newbury seconding at approximately 7:45 p.m. The motion passed unanimously, 7-0. ATTEST: Lorelei Donaldson, Town Clerk ---� 4 Dick Cleveland, Mayor