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
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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 �
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LZor;ei Donaldson, Town Clerk
Dick Cleveland, Mayor
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