HomeMy WebLinkAbout2012-01-03 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, January 3, 2012
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 Andrew P. Daly.
Members present: Andrew P. Daly, Mayor
Kerry Donovan
Kevin Foley
Ludwig Kurz
Greg Moffet
Margaret Rogers
Susie Tjossem
Staff members: Stan Zemler, Town Manager
Matt Mire, Town Attorney
Pam Brandmeyer, Assistant Town Manager
The first item on the agenda was Citizen Participation. Joe Staufer, a Vail business
owner, said he has a lot of relatives and friends in Austria. His brother-in-law told him
he watches a lot of ski races on television and said there isn't any mention of Vail in the
European media regarding the 2015 Championships. Staufer said if Vail is supporting
the 2015 Championships financially, the town should apply for a refund. Staufer said it
was his understanding that the 2015 Championships were awarded to Vail/Beaver
Creek. He said in the past, Beaver Creek was attached to the Vail brand and now
Beaver Creek must not need that connection anymore. He said with the amount of
money Vail is contributing perhaps they should be using the ski championship dollars to
give it to Red Sandstone Elementary School instead.
Jonathan Levine, a limousine company owner, said he just finished working in Vail for
fourteen straight days. He said the feedback he is getting from high end clients is there
were problems getting cell phone service over the holidays on the ski mountain and in
Vail. He said all the cell service providers AT&T, Verizon, Sprint and Nextel said there
was no cell service on the mountain and there were problems getting service in town as
well. His clients had to walk out of the core village to get cell service. He said after
September 11ti', this is a very serious issue. The ability to communicate via text and
cell phone is critical. He said another issue he saw was a lot of the service people in
Vail businesses were unhappy and glum. Even though there was a lack of snow, people
need to stay positive. He would like to see the service programs enhanced to help
people promote Vail in a positive way. He also said he still has an issue with the Vail
Town Council Meeting Minutes of January 3, 2012 Page 1
p
police department regarding limousine staging and access to the transportation centers.
He wants signage for taxi and limousine services. He is upset other taxi and limousine
services are on the current sign and with the service he is receiving from the Vail police
department. There are communication issues.
Daly said the town will look into the cell phone service problems. He pointed out there
is a service program already in place within the town. Zemler said he is confident the
taxi and limousine issues have been addressed appropriately with the Vail Police Chief.
Mike Cacioppo asked the Council to send a letter to the cell phone service providers to
provide more cell towers. Zemler said there are additional cell towers being brought in
and they are working with three or more providers to get additional service into Vail.
Cacioppo said the transportation issues need to be addressed and wants the process to
be fair.
The second item on the agenda was a presentation to thank outgoing Council
members Dick Cleveland and Kim Newbury for their years of service to the town and
community.
Daly said Newbury was continually upbeat and thoughtful throughout her years of
service to the community. She was a serious representative with deep roots and
passion for the Vail community. She really distinguished herself during her eight years
on Council. He also thanked her children for supporting her through the years as well.
Newbury said she changed a lot over the years and the town changed as well. She is
proud to be a part of the Vail community. She thanked everybody for their support.
Daly said Cleveland was also a strong supporter of the community and spent many long
hours committed to the community through countless hours on the Council as well as
serving on many boards associated with serving on the Council. Cleveland was diligent
and a great consensus builder. Daly also thanked Kathy Langenwalter, Cleveland's
wife, for all the support she has given him through the years. Cleveland thanked his
wife and said it was nice to be on the other side of the table. He enjoyed serving and is
proud of the incredible amount of work that has been done in the past eight years.
The third item on the agenda was the consent agenda:
1) Resolution No. 1, 2012, Public Notices;
2) Resolution No. 3, 2012, Mutual Aid Agreement;
3) Resolution No. 4, 2012; Mutual Aid Agreement,
4) Resolution No. 5, 2012, Animal Control Services.
Moffet made a motion to approve the consent agenda and the motion was seconded by
Kurz. Foley said he would like more sites to be available throughout the town for
Town Council Meeting Minutes of January 3, 2012 Page 2
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additional display of notices. Daly explained the content of each of the resolutions for
the public benefit. A vote was taken and the motion passed, unanimously, 7-0.
The fourth item on the agenda was the Town Manager's Report.
There were no items.
The fifth item on the agenda was Resolution No.2, Series of 2012, supporting the Red
Sandstone Elementary School (RESE) in being kept open by the Eagle County School
District (ECSD).
Each council member read parts of the resolution into the record for the public to show
strong support of the resolution and wanting RSES to stay open as it is a vital part of
the community.
Foley made a motion to approve Resolution No. 2, Series of 2012, and sending it to the
Eagle County School District and the motion was seconded by Tjossem.
Public comment was taken. Peter Rosenberg, a resident of Edwards and a non -parent
volunteer for the ECSD, said he really likes the Vail community. He said the process of
cutting $5.5 million from the budget is challenging. He said during the school district's
meeting, many folks spoke during the public comment section. Folks requested their
favorite program or school not be closed. There were many schools and programs
mentioned. He stated he has had to manage an office through three recessions. He
said in order to author a successful budget, sacrifices would have to be made for the
greater good. He said this Council as well as other community stake holders needed to
come together and take some of the pain. He said it was discouraging to read in the
paper that another charter school was suggested to be opened. He asked if it wouldn't
be better to join the budget committee and help solve the budget cuts currently in front
of the school board. Daly clarified that the Council did offer to help. Rosenberg said
the budget committee would like to see someone from Council at the next meeting. He
said their help is needed and would be appreciated.
Mike Cacioppo said after the salaries were put on line and the community now knows
how much money employees are making, he thinks the salaries are shocking. He said
Eagle County is second in Colorado in top salaries and this is for 8-1/2 to 9 month
contracts and not working another 3 months of the year. He said they are making huge
salaries and benefits. He said to fix the budget they need to decrease salaries by
$5,000 to $6000 per person and it would solve the issue. He said they should involve
the school staff members to make the budget work.
Nancy Ricci, a retired principal from the ECSD, stated she was the principal for last 16
years at RSES and has been a 32-year Vail resident. She supports the resolution. She
Town Council Meeting Minutes of January 3, 2012 Page 3
said there are many avenues that need to be looked at to help solve the budget issues.
It can be done. She wants to support RSES staying as it is Vail's school. She said it is
interesting that the engine that drives the train is being considered to close. Kim
Newbury, Vail resident, thanked the Council for supporting the town's school. She said
one thing missing is that Vail has been a partner in the school. She doesn't know of
anywhere else where the towns supported the schools. She is 100% behind the
resolution. Donovan wanted to propose another whereas in the resolution: "whereas
the Town has clearly demonstrated its long-term commitment to the school by our
ongoing participation in projects that have been a benefit to the school including
securing grants, construction playground improvements, addition of an athletic field and
the gymnastic center."
Foley amended his motion to add the "whereas" clause as stated by Donovan and the
amended motion was seconded by Tjossem. A vote was taken and the motion passed
unanimously, 7-0.
The sixth item on the agenda was a presentation on the proposed municipal site
redevelopment project including the key points of the project, the Town of Vail design
program, the draft memorandum of understanding (MOU), the financing options, the
project schedule, and a series of next steps for advancing the project forward.
George Ruther, Community Development Director, said the Council is not being asked
to make any formal decisions at this time. Staff and the consultants presented key
design program elements, project schedule, financing options, discuss a draft MOU and
next steps in the process to keep the approved, prescribed schedule moving forward.
Ruther said he has attended a number of homeowner's association meetings around
town. He was pleasantly surprised as he spoke to about forty people and most had
heard about the project in some fashion. He said there is a net increase of about 2,000
square feet of office space in the new municipal building. One difference in the new
development is the center of the site would be approximately ten feet lower so that
folks would drive in at grade level.
Daly asked for public comment. There was no public comment. Ruther gave out his
office phone number for the public to contact him with questions they may have on the
project.
Ruther said the MOU is not a binding MOU at this time but the topics covered include: a
description of project, land value, agreement to subdivide the project, development
program for medical and town spaces within the shared parking structure,
understanding of site planning and design cost sharing.
Michael O'Connor, a representative of Triumph Development, went into further detail of
the MOU. He presented the scope of the consulting agreement which includes four
Town Council Meeting Minutes of January 3, 2012 Page 4
users of the buildings and three development partners, the schedule and ultimate goal
of all partners. The details summarized concluded with a plan that would work for all
parties, including the master plan, the schedule and the processes for designing,
procuring and constructing new buildings. There are four users, one site and a shared
parking garage. The concept is for the Steadman group to buy the land that the
medical office building will occupy, along with an agreement on the parking garage that
will have a certain number of parking spaces for the medical office building and the
municipal site and will be designed according to the town's wishes. Along with the
purchase and sale agreement, the Steadman group agree to fund the design costs of
the medical center and parking spaces. The land price would be credited to the town
building costs.
O'Connor asked if the Council had any questions. Rogers said one issue that came up
was the relationship between the developer, the town and the hospital. She said the
proposal shows Triumph would buy the land and subsequently the hospital and the
Steadman group would buy from Triumph. Rogers said the town was not expecting to
have the developer in the middle of this process. She wanted to know what assurances
the town has that the medical clinic will be the ultimate user of the property. O'Connor
said the hospital was agreeable to have a sponsor involved for several reasons.
Ultimately, the assurances are that the Steadman group anticipates signing a purchase
agreement including deposits and the project is designed specifically for them. Rogers
wants assurances in the MOU that the property is being sold to the medical center and
clinic and not a developer.
Daly said the Council is excited to help this project move forward and to help make the
medical centers successful. The Council wants assurances this is what will happen.
Another concern is they didn't have time to pass the MOU on to the town attorney for
review and comment. Council also wants to make sure the town has the construction
costs covered for the town part of the project. The town needs to part of the parking
bid process, as well. Council also wants an assurance or some type of reversion clause
that the medical building will continue to be used as a medical center in the future.
Performance and completion bonds and other requirements also need to be in the
MOU.
Further discussion ensued and other items discussed were employee housing, the
review process and the use of the development will always be for the purpose intended,
thus moving the subdivision process forward. Also, the Colorado Department of
Transportation (CDOT) will have a significant role in the approval of the project. The
town has been working diligently with CDOT. There is concern of what CDOT will
approve for the town versus a private developer.
Gwen Scapello, a Vail resident, asked about the condominiumization of the medical
office building and if that included the real property. She wanted to know who retains
Town Council Meeting Minutes of January 3, 2012 Page 5
ownership of the land, including the subdivision of the property and the medical center.
O'Connor said the developer would transfer the land to the condominium owners.
Scapello wanted to know who will share in the maintenance of the shared portions,
such as the parking structures. She also wants to know where the heliport will be
located in the future. She said it's important to resolve where the helipad will be now.
She also wanted to make sure the medical office building is an office building and not a
medical facility. Daly said they asked the town attorney to add a reversion clause to
the documents so it continues to be medical offices.
Craig Cohn, representing Howard Bergeron, owner of the Evergreen Hotel, said some of
their concerns are the traffic patterns, curb cuts, access to the hospital site, and other
issues for this area. It could effect future development on the Evergreen site.
Daly said the discussions for this project are in four parts: land sale, financing options,
master plan issues (including the helipad placement, possible relocation of emergency
access from Meadow Drive to the Frontage Road, traffic patterns and other items) and
design of the town building.
Ruther said the financing options were discussed at the December 20 evening Council
meeting. He reiterated that there were five options but only three were viable. He said
the Piper Jaffray consultant stated given the schedule and urgency, that Certificates of
Participation (COP's) (or a derivative of COP's) would be the most effective way to go.
Judy Camp, Finance Director, reviewed the options: General Obligation Bonds, Sales
and Use Tax Bonds and COP's. The first two require a longer period of time to
accomplish and timing would be too late to meet the current schedule. The COP's act
like a lease and are subject to annual appropriation, don't require an election and would
allow Council to issue bonds as early as April of 2012 if needed. The cost of COP's are
lower than the sales tax revenue bonds. Another option would be to pay cash for the
project from the town reserves. The Council is looking at pros and cons between a
COP's or cash standpoint. Beginning in 2013, the town will no longer have a $2.3
million debt service payment.
Mike Cacioppo said he is concerned this project is being fast tracked. He thinks the
COP's is an attempt to not follow TABOR rules.
Daly said the town has researched this at length and this is a viable way to pay for
essential buildings.
Cacioppo stated he didn't think taxpayers were interested in giving prime land for a
private business that many people can't afford and to not get a free municipal building
out of the deal. He said he doesn't like it and it isn't a good deal for the town.
Town Council Meeting Minutes of January 3, 2012 Page 6
Donovan said she wants information from the hospital on their long term planning
process to help her and the community see the benefits to the community, besides the
economic benefits. She also asked once the hospital moves some of the other medical
center spaces out of the hospital, how this affects the hospital in the future.
Daly said he wants more information regarding the helipad placement as it is one of the
larger concerns of the community about the hospital campus. He stated this is a
significant piece that may not preclude other changes that may need to be addressed in
the future, including traffic.
Rogers talked about the big picture of the project. She said for four years they have
been talking about economic drivers, resort and economic development. The health
and wellness industry is ideal for Vail. This project is at the heart of wanting to
promote health and wellness. She said Vail has the potential to be the "Silicon Valley"
of orthopaedic medicine. This project works well to allow Steadman to move to this site
and then the hospital can utilize and expand into the Steadman spaces at the hospital.
She is offended that Cacioppo suggests the town is on the take. She said this project
will be a win -win for the town and the community. She doesn't see any impropriety by
the town, staff, clinic or hospital in doing this project.
Moffet said the municipal building is extremely obsolete and is costly to run. The town
will benefit. This is an insanely good deal for the town. We are all invested in not just
the resort of Vail but the community of Vail. The community includes hospitals and
medical centers. He stated there is no place in the world that has a medical facility of
this caliber in the town of the size of our community. Great planning means taking a
long view. He said moving the hospital and medical center away from Meadow Drive is
a great idea. He said not committing to addressing the helipad and traffic relocation at
this point would not be a great idea.
Cacioppo said he wants the taxpayers to vote on it. Rogers said the Council has been
talking about this project for months.
Peter Noble, town resident and business owner, is in full support of this project. He
asks that whatever variances are required for employee housing he wants the same
granted to other developers and projects going forward. Rogers said that is fair.
Jim Lamont, representing the Vail Homeowners Association (VHA), asked if they were
going to see an outline of the master plan. Daly said these issues will be addressed at
future meeting dates. He asked to add to the list considerations: loading and delivery,
trash management and the larger issue about off -site impacts. He said the hospital, as
much as he treasures it, is not the best of neighbors. The hospital has an extraordinary
responsibility to perform the basics. This is the last block of property that has major
"original sins" to correct. He said yes, we value it, yes, we want to keep the hospital
Town Council Meeting Minutes of January 3, 2012 Page 7
here; but we don't want to keep it here at any and all costs. If there is profit to be
made in this endeavor, there has to be a requirement to solving some of the original
sins. It's not fair to have noise coming from ventilation systems and helipad use. You
can't expect neighbors simply sit back when these problems have not been solved. He
stated the resolutions were not in terms of the master plan but with specific terms. The
hospital has got to make a commitment even if it requires dollars. He wants to see the
letter from CDOT regarding the helicopter issue. If we are going to embrace health and
wellness issues, some neighbor's quality of life cannot be for a few. He said they need
to dot the I's and cross the T's so issues can be fixed.
Doris Kirchner, Chief Executive Officer of the Vail Valley Medical Center (WMC),
thanked the Council for all the collaboration and support. She said the key point of the
project is that 35,000 square feet will be freed up for the hospital. Master planning for
the hospital has begun. She said included in the hospital RFP is the helipad and the
emergency area off Meadow Drive. Everyone needs to understand the partnership
between Stead man-Phillipon and the WMC is strong. The hospital looks at them as
partners of the hospital and the town. She said the hospital writes off about $12 million
a year in Medicaid alone in health care and they don't turn away customers. The
Steadman Clinic has three of their surgeons that see 65% of their patients come from
other areas. They bring year -around revenue to this community.
Ruther said next steps on page three of the memorandum of January 17, 2012, include
responding to questions on the MOU, a town budget in more detail, moving forward
with the design phase and starting a Request for Proposals (RFP) process for design of
the project. Additional master planning issues will be coming forward and be
responded to. Staff will return to the next Council meeting on January 17"', at which
time the Council will be asked to take action on executing a MOU by and between the
partners, selecting a financing option and instructing staff to issue a RFP for design
services.
Daly said the revised MOU will need to come back to the town attorney and town staff
as soon as possible so the town is comfortable with it and doesn't create delays. He
said a separate work session may be needed.
Tjossem asked if the town project was delayed, would this delay the medical center
side. Ruther said this is essentially one site and the town will have to work with the
partners to see how this would affect them.
A five minute break was taken at 8:15 p.m.
Town Council Meeting Minutes of January 3, 2012 Page 8
The seventh item on the agenda was second reading of Ordinance No. 27, Series of
2011, an ordinance repealing and re-establishing Special Development District (SDD)
No. 22, Grand Traverse, pursuant to Section 12-9A-10, Amendment Procedures, Vail
Town Code, to allow the employee housing requirements of the special development
district to be met off -site through the provisions of Section 12- 13-5, Employee Housing
Unit (EHU) Deed Restriction Exchange Program, Vail Town Code, and setting forth
details in regard thereto.
Bill Gibson, Planner, said the Council had approved another exchange a couple of
meetings prior to this request. He stated the Council had approved first reading of this
ordinance at their December 20, 2011, meeting by a vote of 4-3 (Daly, Donovan and
Foley opposed). He said the initial development had no employee housing units
required, but the developer had requested EHU's be considered and six EHU's were
added to the development.
Foley stated when he was on Council in 1998, and when this development went
through the process, having `lights on" in the neighborhood was a great concern for
that Council. Foley said he couldn't support and approve this ordinance as this would
take away from this neighborhood having "lights on." Rogers asked Gibson if lights
were on in the neighborhood. She said virtually every time anyone has developed an
EHU, it has been a give and take for both parties. She said there was no distinction
between the Grand Traverse developer and other private homeowner properties that
have EHU's when they developed their properties. She said as the town changed, the
rules allowing existing employee housing units to have exchanges changed. She
doesn't see why this project would be treated differently.
Gibson said there are no longer any GRFA limits on square footage in the Grand
Traverse SDD. He said a significant public benefit is the exchange unit would be deed
restricted and that public benefit hasn't changed. He said two of the six units in the
Grand Traverse SDD have a deed restriction; however, four units do not have to be
occupied. Moffet asked what the average square footage was of the current EHU units.
Gibson said the units were between 400 to 600 square feet each.
Dominic Mauriello, Mauriello Planning Group and a representative of the applicant, said
the public benefit to the subdivision was a reduction of density. He said not all SDD's
ask for the same concessions. He said the original developer, Pat Dauphinais, wanted
the ability to cluster the units so the developer gave up some density. At the time of
the development, an EHU was not required for the project. He said the developer came
to the town and asked to be allowed to have EHU's. Mauriello said the required square
footage of an exchange unit off -site is two to three times larger than what the size is
for the on -site EHU. Mauriello said ten of the twenty-one units at the Grand Traverse
are occupied by locals.
Town Council Meeting Minutes of January 3, 2012 Page 9
Daly asked if there was any desire of the homeowners to convert from duplexes to
single family units. Mauriello said this request had more to do with design parameters
and clustering of the units. The reduced density and tradeoff of design was a positive
effect. The unit they are proposing to exchange is approximately 800 square feet.
Pam Bailey, one of the owners, said they purchased their residence in 2004. She said
they have fourteen family members in the residence now. She stated they want to use
the additional space for their growing family. They want to participate in the exchange
program as the program will allow for a larger unit to be purchased and utilized for an
EHU unit elsewhere. She said their EHU is not easy to rent as it is not in a desirable
location and is not easily accessible. It would be a win -win for them and the employees
by having the unit elsewhere.
Bill Bailey, owner, said in 1998 "lights on" in the neighborhood was a valid concern. He
said at a recent homeowner's association meeting, ten to eleven units in the
neighborhood have lights on most of the time. He also said they would like to be one
of the "lights on" in the neighborhood soon. He said they would like approval of this
application.
Kurz said he was on the Planning and Environmental Commission when this project was
built. He said the developer, Pat Dauphinais, was one of the most concerned
developers at the time.
Rogers made a motion to approve second reading of Ordinance 27, Series of 2012, and
the motion was seconded by Tjossem.
Additional discussion ensued. Moffet stated he appreciated Foley and Donovan's points
of concern. He said the town EHU program is only 33% effective, which means it
doesn't work the way it is supposed to. Moffet said he is voting in favor of approval.
Tjossem is in favor of the ordinance as the intent of the ordinance is sound and
doubling the size of units when exchanged totally affects employees and the ability to
be in the neighborhoods where they want to be and have access to town amenities.
She said the exchange allows for the units to have employees in them and not have
empty EHU units in town. She doesn't want the Council to backtrack on this issue. She
said these were done for all the right reasons and the process is working. Donovan
stated she would be voting against approval as she wants to support the intent of the
original SDD approvals.
A vote was taken and the motion passed 5-2; Foley and Donovan opposed.
Town Council Meeting Minutes of January 3, 2012 Page 10
The eighth item on the agenda was adjournment. As there was no further business,
Foley made a motion to adjourn and the motion was seconded by Moffet. A vote was
taken and the motion passed unanimously, 7-0. The meeting adjourned at 8:40 p.m.
Respectfully Submitted,
Andrew P. Daly, MayL—")
Attest:
L rel Donaldson, Town Clerk
Town Council Meeting Minutes of January 3, 2012 Page 11