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HomeMy WebLinkAbout2010-07-06 Town Council MinutesVail Town Council Meeting Minutes Tuesday, July 6, 2010 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 Kerry Donovan Susie Tjoseem Margaret Rogers Andy Daly Not present: Kim Newbury Staff Members: Stan Zemler, Town Manager Matt Mire, Town Attorney Pam Brandmeyer, Assistant Town Manager The first item on the agenda was the Town Manager's Report. a. Revenue Update. Upon receipt of all sales tax returns for the month of May, collections for the month are expected to be $412,148, down 18.9% from budget and 20.2% from last year. Year-to-date sales tax collections are expected to be up 0.62% from budget and down 0.95% from last year. Inflation as measured by the consumer price index was up 2.0% in May compared with May 2009. Construction permit revenue through June 30 totals $309,198 including $125,900 from major redevelopment projects compared with $241,241 from major projects at this time last year. Revenue from non -major projects is up 14% from 2009 due to a number of additions and remodels. The 2010 budget for construction permit fees is $425,000 with year-to-date revenue about $100,000 higher than expected for the first half of the year. Use tax collections as of June 30, 2010, total $574,843 compared with $220,084 at this time last year and $264,000 budgeted. Major redevelopment projects including First Chair, Lodge Tower, and Ramshorn contributed $265,409 or 46% of the total. Several remodel projects including additions to units at Vail Village Inn and Vail Mountain Lodge and remodels at Millrace Condos, the Antlers, and Vail Point also paid use tax in 2010. No comparable activity occurred in the first half of last year. Year-to-date use tax collections have already exceeded the full -year budget of $500,000, which will be reflected by an increase of $100,000 in tonight's budget ordinance. RETT collections through June 29, 2010, total $2,895,326, compared with $1,574,000 budgeted and $1,135,900 at this time last year. Approximately $1,506,653 of the 2010 RETT collected is from major redevelopment projects including Arrabelle, Chalets at the Lodge at Vail, Founders' Park Garage, Landmark, Lions Square Lodge North, Manor Vail, Mountain View, Solaris, and Vail Plaza Hotel. Collections not related to major redevelopment projects total $1,388,673 compared with $591,231 through June of 2009. The full -year budget for RETT is $4,283,000 and we have collected 69% of that budget through the end of June. Across all funds and revenue accounts through May 31, 2010, total revenue of $26.3 million is up 8.6% year-to-date from this time last year and up 8.4% from the budget. b. Summer Parking Update. Rogers said she thought it was unlikely to expect people to park in LionsHead and attend a Bravo! performance. Cleveland recommended trying to manage parking through cost. Transit Manager Mike Rose said parking garage usage was no longer lopsided (in regard to LionsHead vs. Vail Village parking structures). "We have simply run out of space to put cars." Daly said he believed good shuttle service must be provided. Zemler recommended waiting till next summer to make any changes so appropriate planning could take place. c. Timber Ridge Update. Zemler said the town continued to work on the Timber Ridge project. d. Bio-Fuels Plant Update. Zemler reported the town had not received a federal grant for a proposed bio- fuels energy generation plant. The second item on the agenda was the Consent Agenda. a. Approval of 06.01.10 & 06.15.10 Town Council Minutes Daly moved to approve the minutes without amendments with Rogers seconding. The motion passed unanimously, 6-0. The third item on the agenda was Resolution No. 19, Series of 2010, A Resolution Opposing Proposition 101 and Amendments 60 and 61. Finance Director Judy Camp reported that on May 4, 2010, Dee Wisor, Esq., of Sherman and Howard presented information regarding three initiatives which will be on the statewide ballot in November. Amendment 60, Amendment 61 and Proposition 101 — would limit property taxes, reduce various motor -vehicle fees and taxes, reduce telecommunication service fees, reduce state income taxes and limit state and local government debt, if passed by voters in November. Camp estimates an annual loss of about $1.3 million from Vail Reinvestment Authority tax increment financing revenue, bringing revenue losses to more than $6.5 million annually. Daly commented, "These are clearly draconian measures that will jeopardize Vail as we know it... From a resort community perspective, these three initiatives could be devastating." Proposition 101, which would reduce motor -vehicle fees and telecommunication service fees, would create about a $1 million loss per year for the town, Camp said. Amendment 60, which limits property taxes, would cost the town another $2 million per year, while Amendment 61 would limit the town's debt in the future and cost the town about $2.3 million beginning in 2013, noted Camp. She then explained the town is capable of preparing strategies that would help protect the town from some of the other potential revenue losses. Camp listed two opportunities for the town that would block the impact of the initiatives. The town could defease its outstanding debt in 2010 if Amendment 61 passes, which would save the town $2.3 million annually. Defeasing debt means the town would set aside the money it still owes to bondholders with a trustee, who would then pay the bondholders according to the initial debt repayment schedule. It means the town would no longer have out- standing annual debt service payments, so Amendment 61 would not apply. The second option is to issue debt through the Vail Reinvestment Authority (VRA) before the end of 2010 for the LionsHead Transit Center and Visitor Center projects. The town has already approved the first phase of the LionsHead Transit Center and is considering plans for the Visitor Center. Camp confirmed bonding those projects in 2010 would not affect the town's ability to issue bonds later. Cleveland said that regardless of the potential shortfalls in revenue, the town would not operate with a budget deficit. Foley moved approve the resolution with Tjossem seconding. The motion passed unanimously, 6-0. The fourth item on the agenda was a request to release an Employee Housing Unit Deed Restriction on Vail Intermountain - Block 9, Lot 4 also known as 2840 Basingdale Boulevard recorded against the property. The property owner, Mr. Dan Frederick, requested Council authorize the release of the employee housing unit deed restriction recorded against his property. At the June 15, 2010, Council Meeting Mr. Frederick requested Council consider authorizing the release of the employee housing unit deed restriction recorded against his property. Following the request Council requested the item be placed on the July 6, 2010 agenda. Ruther said there was no price appreciation cap on the property that he was aware of. He then clarified there was only to be one dwelling unit on the property. Frederick asked if it would be possible for him to build a third unit on the property. Rogers said Frederick had options to become compliant and due to those options she would be unable to remove the deed restriction. Foley moved to maintain the deed restriction with Tjossem seconding. The motion passed unanimously, 6-0. For more information, contact George Ruther 479-2145. The fifth item on the agenda was the First reading of Ordinance No. 11, Series of 2010, 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, and Marketing Fund of the 2010 Budget for the Town of Vail, Colorado. Due to a predetermined conflict of interest (Colorado Ski Museum employment) Tjossem recused herself from the item and left the Council Chambers. Cleveland and Rogers encouraged Bravo! to diversify their audience. A large contribution was requested to develop 50th Anniversary of Vail documentary DVD. Vail Resorts representative Adam Sutner said there was plenty of commercial value for the DVD. He then said it was primarily a marketing initiative and not a commercial initiative. Council agreed to view funding the Colorado Ski Museum differently as it is an amenity to the community similar to the Betty Ford Alpine Gardens. During a pause for public comment Diane Boyer, Ned Wathney, Adam Sutner, Sandy Treat, Erica Wood, Dick Neal, Dave Gorsuch, Marty Head and Jim Lamont spoke in favor of the Ski Museum funding. Rogers spoke in support of funding the full Ski Museum request as the town had adequate reserves. Donovan spoke against funding all the requests as some applicants did not meet the funding requirements. Daly moved to approve the ordinance with Foley seconding. The motion passed unanimously, 4-1 with the Donovan opposed. For details, contact Kathleen Halloran at 479-2116. The sixth item on the agenda was the First reading of Ordinance No. 12, Series of 2010, an ordinance amending Section 12-15-5, Additional Gross Residential Floor Area (250 Ordinance), Vail Town Code, to allow applications to be made for additional GRFA prior to all the allowable GRFA being constructed on a property. Pursuant to Section 12-3-7, Amendment, Vail Town Code, the Vail Town Council shall approve, approve with modifications, or deny Ordinance No. 12, Series of 2010, on first reading. Pursuant to Sub -section 12-3-7-B, (Amendment) Initiation, Vail Town Code, amendments to the Town Code may be initiated by the Town Council, PEC, any resident or property owner, and the Administrator. At its April 12, 2010, public hearing, the PEC initiated an application for amendments to the Town of Vail Zoning Regulation's "Additional GRFA (250 Ordinance)" standards. On June 14, 2010, the PEC forwarded a recommendation of approval to the Vail Town Council on prescribed regulation amendments to Section 12-15-5, Additional GRFA (250 Ordinance),Vail Town Code, pursuant to Section 12-3-7, Amendment, Vail Town Code, to allow applications to be made for additional GRFA prior to all the allowable GRFA being constructed on a property, and setting forth details in regard thereto, by a vote of 6-0-O.The PEC recommended Council approve Ordinance No. 12, Series of 2010, on first reading. Cleveland said he participated in the development of the existing 2004 ordinance and would not support the proposed legislation. Daly noted, "By passing this ordinance we may be undermining the collective decision making wisdom of the condominium association." During a pause for public comment Vail Homeowner's Association representative Jim Lamont spoke in support of the existing ordinance. Daly moved to deny the ordinance with Cleveland seconding. The motion passed 5-1, with Donovan opposed. For details, contact Bill Gibson at 479-2173. The seventh item on the agenda was Resolution No. 16, Series of 2010 a resolution prohibiting Medical Marijuana Centers, Infused Product Manufactures and Optional Premises Cultivation Operations. At the January 19, 2010 meeting Council approved a 180-day moratorium on businesses that sell medical marijuana. The moratorium was put in place while the State Legislature determined how to regulate the industry from a statewide perspective. The town's moratorium expires on July 18, 2010. House Bill 10-1284 was recently passed by the General Assembly and signed by the Governor creating a state medical marijuana licensing authority under a model generally similar to the state liquor authority. It allows for local regulation of Medical Marijuana Centers (commonly referred to as dispensaries), Infused Product Manufacturers and Optional Premises Cultivation Operations. On June 1, 2010, Council directed staff to return with legislation prohibiting medical marijuana centers, infused product manufacturers and optional premises cultivation operations within the town. Daly moved to approve the resolution with Tjossem seconding. Rogers stated she believed the voters of the State of Colorado determined they wanted to legalize medical marijuana. "it has already been successfully regulated." The motion passed 5-1, with Rogers opposed. For details, contact Matt Mire at 479-2460. The eighth item on the agenda was Adjournment. Foley moved to adjourn with Daly seconding at approximately 9:10 p.m. The motion passed unanimously, 6-0. Dick Cleveland, Mayor ATTEST: Lorelei Donaldson, Town Clerk