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HomeMy WebLinkAbout2009-12-01 Town Council MinutesVail Town Council Meeting Minutes Tuesday, December 1, 2009 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 Kevin Foley Margaret Rogers Andy Daly Kim Newbury Kerry Donovan Susie Tjoseem Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was Citizen Participation. Jim Lamont thanked Council for allowing public comment during the Work Session in regard to cameras being used for traffic monitoring throughout town. Kaye Ferry said she believed it is imperative a public discussion must be held in regard to cameras being used to monitor town facilities and public streets. The second item on the agenda was the Recognition of former Council Members, Mark. Gordon and Farrow Hitt. Cleveland and Newbury formally thanked former Council Members Gordon and Hitt for their efforts working on Council over the past several years. The third item on the agenda was a Vail Valley Medical Center Update. Doris Kirchner, the new Chief Executive Officer of the Vail Valley Medical Center, reassured Council that "the hospital isn't moving downvalley anytime soon." Kirchner said the hospital is committed to growth and to the Vail community, particularly to the relationship with the Steadman Hawkins Clinic, which she called the hospital's "orthopedic engine." "We're working with them to make sure they stay in Vail," Kirchner said. She told Council the hospital was planning to do a major renovation of its emergency room and would submit an application to the town in the spring of 2010. Beyond that, she said, the hospital hopes to add a fourth floor and a sky bridge that would connect the hospital to the US Bank building. "We look forward to working with Council as we plan our future together." She then told Council that the town's Economic Development Manager Kelli McDonald was doing a great job. The fourth item on the agenda was the Town Manager's Report. a. Timber Ridge Budget. Finance Director Judy Camp said that, "On behalf of the Timber Ridge Affordable Housing Corporation (TRAHC) Board, I am attaching the 2009 amended budget and 2010 annual budget as approved by the board this morning." In 2009, the favorable interest environment resulted in a significant reduction of interest expense on our variable rate 2003A bonds. These savings allowed the TRAHC to redirect cash flow to increase the 2003A bond debt reserve fund to its required level and to pay off in full the 2003B 6.25% fixed rate bonds. Cash flow for the year after these items is projected at $140,000, resulting in an unrestricted cash balance projection of $1,047,322. The 2010 budget is prepared conservatively. Budgeted rents are $1,192 per month for a two - bedroom, one -bath unit, with 170 of the units rented to Vail Resorts under an annual master lease. Overall vacancy rates are projected at 8% in recognition of current occupancy, the slow economy, and expected lack of renters next summer in non -master leased units. Operating expenses for 2010 are essentially flat with 2009. Interest expense shows an increase of $603,000 because we budget based on the rate cap required by US Bank to support our letter of credit. Currently, the rate cap is set at 5.5%, whereas the actual variable rate the town is currently paying is less than 1.0%. Staff expects to replace the 5.5% rate cap with a 4.0% cap when it expires in May. If interest rates continue at current levels, 2010 will also result in significant savings from budget. The 2010 budget reflects a positive cash flow of $224,000 resulting in an unrestricted cash balance projection of $1.3 million. TRAHC is a non-profit corporation and a component unit of the Town of Vail. Its budget is prepared on a full accrual basis. b. Revenue Update. Budget and Financial Reporting Manager Kathleen Halloran reported that when all sales tax returns are received for the month of October, collections for the month are expected to be $578,522 down 12.7% from October, 2008. Year-to-date total sales tax collections of $13.7 million are down 15.8% from 2008 and less than 1 % down from budget. Inflation as measured by the consumer price index was down (-0.2%) for the month of October compared to 2008. Use tax collections as of November 24, 2009 total $701,902, a 10% increase from this time last year. The annual budget of $700,000 has been met. Construction permit revenue through November 24 totals $780,371 down 68% 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 49% of the total dollars, and are down 81 % from 2008. Revenue from non -major projects is down 23% from 2008. Real Estate Transfer Tax (RETT) collections through November 24, 2009, total $2.3 million, compared to a full year forecast of $2.4 million. This amount is a 69% decrease from last year due to both major and non -major redevelopment projects. Eagle County as of September, 2009 is down 62% in sales dollars and down 47% in the number of sales transactions. At this time last year, the town had collected over $7.5 million in RETT from sales of major redevelopment projects such as Arrabelle, Forest Place, One Willow and the Vail Plaza. Year-to-date 2009 has seen limited sales from major redevelopment projects and is down 85%. Collections not related to major projects year-to-date are 40% down from this time last year. Across all funds, total revenue of $36.6 million is down 21.6% year-to-date from this time last year and down 2.3% from the budget. Town reserves total an estimated $50.6 million. Community Development Director, George Ruther reported the Arosa Drive duplex is on schedule and the lottery is ready to go for the potential owners. Selection will occur in in early January, 2010. Rogers said she believed it was a fabulous project. The fifth item on the agenda was the Election Commission Appointments for the Town of Vail. Assistant Town Manager Pam Brandmeyer asked Council to appoint two electors of the Town of Vail to the election commission of the Town of Vail, for a period of two years; November, 2009 to November, 2011. The election commission consists of the Town Clerk and two qualified and registered electors of the town, who during their term of office shall not be town officers or employees or candidates or nominees for elective town office. These two members shall be appointed by the Council in the first December meeting following a regular town election, for a term of two (2) years and shall serve without compensation. The Town Clerk shall be chairman. The election commission shall have charge of all activities and duties required of it by statute and this Charter relating to the conduct of elections in the town. In any case where election procedure is in doubt, the election commission shall prescribe the procedure to be followed. The commission shall provide procedures to establish proof of residency qualification where residency is in question. Upon a showing for good cause, the election commission may require proof of residency by any person registered to vote or attempting to register to vote in the town. The election commission shall provide for ballots and sample ballots or voting machines, for determination of the winner in the event of a tie vote, for canvass of returns and for the issuance of appropriate certificates. Council was then asked to appoint Vi Brown and Summer Holm to the Election Commission of the Town of Vail. Newbury moved to appoint Brown and Holm with Rogers seconding. Foley then thanked Brown and Holm for their efforts. The motion passed unanimously, 7-0. The sixth item on the agenda was a LionsHead Transit Center update. Town Engineer Tom Kassmel reported the Town of Vail and the Vail Reinvestment Authority, are in the process of studying the feasibility of constructing a LionsHead Transit Center in response to past planning efforts. The purpose of the item was to present a more detailed phasing plan, refining the 1 B/26 Modified scenario and discuss strategies to value engineer the key components of the recommended scenario; and to have Council provide staff and the design team with direction to bring a recommended phasing plan and scenario through the design development (DD) and entitlement process. Kassmel then asked Council to provide staff and the design team with direction to bring the recommended Scenario 1 B/2B Modified forward thru Design Development and the town's entitlement process with a maximum total project budget of $15 million, and authorize staff to enter into contract negotiations with the design team for the completion of Phase III -Design Development and Entitlements, and direct staff to update the LionsHead Master Plan to reflect the recommended solution and ultimate long term solution. Rogers said she would like to see an outline of the actual parking structure parcel in its entirety. Donovan said she did not see how the project fit into the long range view of the town's transit strategy. Newbury said she did not believe Concert Hall plaza should be left out of the plan. She then commented, "I will not move forward if we are looking at a budget of $15 million." Tjossem said she believed the town would be leveraging Tax Increment Financing dollars (as the town was in position to receive a federal transit grant). Tsjossem and Cleveland agreed additional parking on the charter bus lot should be explored. Newbury asked, "Has anyone asked ECO Transit what there future plans are?" Vail Homeowner's Association representative Jim Lamont said "My board members are willing to listen but they remain unconvinced (about the necessity of improvements)." Cleveland clarified there was not support for a large public plaza on East LionsHead Circle. Daly said he did not have enough information to take a qualified position. He than asked for a list of pro and cons of all scenarios and suggestions. The seventh item on the agenda was the First reading of Ordinance No. 24, Series of 2009, An Ordinance making supplemental appropriations to the Town of Vail General Fund, Capital Projects Fund, Capital Projects Fund, Real Estate Transfer Tax Fund, Dispatch Services Fund, Heavy Equipment Fund and Health Insurance Fund of the 2009 Budget for the Town of Vail, Colorado; and authorizing the expenditures of said appropriations. Foley moved to approve the ordinance with Newbury seconding. The motion passed unanimously, 7-0. The eighth item on the agenda was the Second Reading of Mill Levy Certification, Ordinance No. 23, Series of 2009. Budget and Financial Reporting Manager Kathleen Halloran said mill levy assessments must be certified to the County for collection annually; this ordinance authorizes certification. Rogers moved to approve the ordinance with Newbury seconding. Daly encouraged lowering the property tax by a fractional amount to show sensitivity to the Vail taxpayer. Mire encouraged not lowering the mill levy. "I would recommend against fiddling with your taxing capacity." During a pause for public comment, Vail Homeowner's Association representative Jim Lamont encouraged lowering the property tax rate. He said a property tax reduction would help restore faith in government. The motion failed 2-5, with Rogers and Newbury voting in favor. Foley then moved to approve the mill levy with no abatement levy, with Newbury seconding. The motion passed 4-3, with Donovan, Daly and Rogers opposed. The ninth item on the agenda was Resolution No. 26, Series of 2009, a Resolution approving a lease agreement between the Town of Vail, Colorado and the Colorado Department of Transportation regarding parking along the non -travel lanes of the Interstate 70 Frontage Roads located within the limits of the Town of Vail. Staff asked Council to authorize the Town Manager to enter in to a Lease Agreement with the Colorado Department of Transportation ("CDOT") in a form approved by the Town Attorney authorizing the use of the Vail Frontage Roads for both a pilot permit parking program and as overflow skier parking. On October 20th the Vail Town Council adopted the 2009- 2010 winter parking plan. The plan had a provision for permit parking to take place on portions of the Vail Frontage Roads which are owned by CDOT. On November 3rd the Town Council directed the Town Manger to send the letter to CDOT outlining the provisions for the parking program and town commitments for use of the Frontage Roads. Cleveland clarified the town would not have to purchase additional .19 inurance. Zemler said he would not be opposed to going back to CDOT with continuing negotiations. Rogers moved to approve the resolution in a form acceptable to the Town Attorney, with Daly seconding. The motion passed unanimously, 7-0. The tenth item on the agenda was Adjournment. Foley moved to adjourn with Daly seconding at approximately 8:05p.m. The motion passed unanimously, 7-0. SEAL ATTEST: t_ 0P? P � �i LZor;ei Donaldson, Town Clerk Dick Cleveland, Mayor 5