HomeMy WebLinkAbout2017-03-07 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, March 7, 2017
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 Chapin.
Members present: Dave Chapin, Mayor
Jenn Bruno, Mayor Pro Tem
Dick Cleveland
Kevin Foley
Kim Langmaid
Jen Mason
Greg Moffet
Staff members present: Stan Zemler, Town Manager
Matt Mire, Town Attorney
Patty McKenny, Town Clerk
1. Citizen Participation
Michael Cacioppo thanked town staff for responding to a public information request, specifically
the Town Attorney and Finance Director, who assisted with an article about federal funds at risk
in sanctuary cities. It was noted Town of Vail did not approve this kind of status officially.
Paul Rondeau, resident, presented comments about the Marriott Residence Inn project and the
need to be cautious about employee housing restrictions.
2. Proclamations
2.1. Proclamation No. 1, Series of 2017, In recognition of Vail's Trailblazer Award Recipients'
Vi and Byron Brown
Presenter(s): Dave Chapin, Mayor
Background: The Vail Trailblazer Award is presented to recognize an individual, couple or team
that exemplifies the spirit and fortitude in making Vail a great community through one or more
actions that make a lasting impact. Recipients will be recognized for their pioneering
contributions of time and talent, courage, leadership, vision and commitment in their endeavor
to enhance Vail's social, recreational, cultural, educational and environmental values that define
the community. The Trailblazer Award was created as a legacy project when the Town of Vail
was preparing to celebrate its 50th birthday on August 23, 2016.
Mayor Chapin presented the award and the town council approved and read the proclamation
into the record. Vi and Byron Brown thanked the community for the recognition.
2.2. Proclamation No. 2, Series of 2017, In Recognition of One Book One Valley 2017
Presenter(s): Lori Ann Barnes, Town Librarian, Dave Chapin, Mayor
Background: The proclamation announces the 2017 One Book One Valley community read
program which is sponsored by regional towns and offer numerous opportunities to review the
Town Council Meeting Minutes of March 7, 2017 Page 1
book through events and lectures. This year's chosen book is "High Divide" by Lin Enger ( a
teacher of English at Minnesota State University).
The proclamation was read by the Town Council and approved.
3. Presentations / Discussion
3.1. Vail Police Department Life Saving Recognition Awards
Presenter(s): Dwight Henninger, Police Chief, Marc Wentworth, Director, Vail Public Safety
Communications Center
Background: Vail Public Safety Communications Center dispatchers Kelly Klein, Tina Mojzer
and Michelle Aranda were each awarded with lifesaver awards during 2016 and this serves as
follow up to the recognition at an official public meeting.
Three life saving recognition awards were presented by Police Chief Dwight Henninger and
Director of Vail Public Safety Communications Center Marc Wentworth. The three employees,
Kelly Klein, Tina Mojzer, and Michelle Aranda, were commended and honored by Mayor Chapin
for their life-saving actions and noted as exceptional employees performing exceptional services
on behalf of the town and for the community.
4. Appointments for Boards and Commissions
4.1. Appointments to Art in Public Places Board
Presenter(s): Dave Chapin, Mayor
Action Requested of Council: Appoint two people to serve two years terms, April 1, 2017-2019.
There are two applicants for the two vacancies on the AIPP Board, Margaret Rogers and Susan
Bristol. Both applicants interviewed November 2016 when there was one vacancy. Since these
two people were recently interviewed, it was decided to move forward with the appointments.
Town Council shall appoint two (2) members for terms of two years each. This appointment
term will end March 31, 2019.
Bruno moved to appoint Margaret Rogers and Susan Bristol to serve two year terms on the Art
in Public Places Board; Langmaid seconded the motion and it passed (7-0).
5. Consent Agenda
5.1. Minutes from February 7, 2017 meeting
5.2. Minutes from February 21, 2017 meeting
5.3. Resolution No. 6, Series of 2017, A Resolution Approving an Intergovernmental Agreement
Between the Town of Vail and Eagle County Regarding Intermountain Forest Health and Setting
Forth Details in Regard Thereto
5.4. Resolution No. 8, Series of 2017 A Resolution Approving an Intergovernmental Agreement
Between the Town of Vail and Eagle County Concerning a Grant of Trail Maintenance Funds
and Setting Forth Details in Regard Thereto
5.5. Self Contained Breathing Apparatus Contract Award
Town Council Meeting Minutes of March 7, 2017 Page 2
Cleveland moved to approve the consent agenda with the exception of the February 7 minutes;
Moffet seconded the motion and it passed (7-0). Cleveland moved to approve minutes from
February 7, 2017; Foley seconded the motion and it passed (6-0-1; Moffet abstained).
6. Town Manager Report
There was nothing reported at this time.
7. Action Items
7.1. Present the Vail Local Housing Authority recommendation for the deed restriction
requirements for Chamonix Vail and provide an update on the development schedule and
proposed lottery process
Presenter(s): George Ruther, Director of Community Development; Michael O'Connor, Triumph
Development West; Mike Cuthbertson, RA Nelson
Action Requested of Council: Does the Vail Town Council support the recommendation of the
Vail Local Housing Authority and the proposed requirements contained within the Chamonix Vail
Deed Restriction? If so, the Team will take the steps necessary to finalize the deed restriction. If
not, what specific changes to the deed restriction are required?
Background: The 32 townhomes at Chamonix Vail will all be deed restricted. The terms of the
deed restriction are in place to ensure the Town achieves its objectives for the new
development. The deed restriction must be approved prior to applicants submitting for
participation in the lottery selection process. The deadline for submitting to participate in the
lottery selection process is March 17th. A final determination on this matter is needed to remain
on schedule for an April construction start.
Staff Recommendation: The Vail Local Housing Authority recommends the Vail Town Council
approves the Chamonix Vail Deed Restriction as presented.
Ruther noted the attachments included in the council packet materials; he also noted the Vail
Local Housing Authority members were present. The Chamonix Vail deed restriction
requirements were reviewed identified below:
1. Occupancy shall be limited to Owners choosing to continuously occupy the homes, make the home
their permanent place of residence, and work at least 30 hours per week at a business licensed
within Eagle County.
2. Future transfer of ownership shall be through the Town of Vail to a Qualified Buyer.
3. "Non -Qualified Owners" shall be prohibited.
4. Provisions shall exist for circumstances of inheritance.
5. Owners may rent part of their homes provided certain requirements are met.
6. The Town of Vail shall maintain a first option to purchase on all transfers.
7. Owner shall be afforded an opportunity to obtain a "Maximum Resale Price" cap upon the sale of a
Chamonix Vail home.
8. Acceptance of a deed in lieu of foreclosure assignment shall cause the deed restriction to remain in
full force and effect.
9. Terms shall be provided to address matters of breach of the deed restriction.
10. A partial reimbursement for certain capital improvements costs may be added to the Maximum
Resale Price upon sale.
11. Owners may not own other residential property in Eagle County.
Town Council Meeting Minutes of March 7, 2017 Page 3
Ruther also noted the VLHA recommendation to the Vail Town Council for additional
restrictions, as follows:
■ To maintain affordability over time, the Maximum Resale Price should be correlated to historical
changes, (+/-) in the Area Median Income, Median Family Income, Consumer Price Index, etc.
within Eagle County, Colorado. Over the past two decades these indexes have changed 1.64% to
2.48%, respectively. For ease of implementation a 1.5% per Annum adjustment is recommended.
■ To avoid unintended consequences of residential property ownership, a Qualified Buyer may own
residential property, land and/or homes, outside of Eagle County, Colorado.
There was some discussion about several items:
✓ How the low end of appreciation cap of the 1.5% was determined and is it too low?
✓ The appreciation caps for Vail Commons and Chamonix
✓ The affordability factor for the projects
✓ Request to the maximum resale price to include the word "cap" on the 1,5% per annum and
that it is not guaranteed appreciation if the market goes down
✓ Request to include voter registration as a requirement
Ruther noted they'd like direction about the agreement on the deed restriction as it is time to
provide the information to lenders and other parties interested in the process. He noted the
town would collect a 2% administrative cost for charges for administrative services provided.
Chapin invited public comments at this time.
• Chris Neuswanger, mortgage broker, expressed suggestions about adjustments to the deed
restrictions in an effort to create ease of financing and refinancing for the homeowners. He
suggested using some languages from the Chamonix guidelines. There was also some
discussion surrounding the notice requirements associated with foreclosures.
■ Jessie Klehfoth potential buyer, expressed concerns about current ownership and the
transition to Chamonix ownership with some of the restrictions and the uncertainty that
would exist with the completion of the construction. It was noted with buying and selling and
construction of new housing there would always be some uncertainties and risks.
■ Michael Cacioppo asked questions related to foreclosures and recouping costs.
■ Mark Bergman, potential buyer, expressed need to better understand how capital
improvements play into costs and appreciations.
Chapin closed the public input at this time. There was consensus to move foreword with the
VLHA recommended deed restriction requirements with the addition of the voter registration
requirement. The maximum 1.5% annum appreciation cap would remain, the Eagle County
property ownership would not be allowed and deed restriction property ownership would be
addressed.
Ruther moved the discussion to an update on the 1) potential buyers, 2) the lottery selection
process, and the 3) project schedule. Economic & Planning Systems (EPS) was asked to
provide a point -in -time evaluation of the depth of future buyers. EPS has worked on affordable
housing project developments in numerous communities in mountain settings as well as urban
markets. The following were key takeaways from their review of the current applications:
■ • 127 respondents to the Homebuyer Questionnaire; 121 of these are considered to be
■ potential homebuyers because they currently live in the area
■ • 54% from Vail / 35% from Avon/Edwards / 11 % renting outside of those locations
■ • 30% currently own their own home, and 70% are renters
■ • 67% of respondents are in a 1 or 2 person household
■ • 45% of respondents have been prequalified to purchase a home
• Half of respondents have an annual income over $100,000, while 31 % earn less than $75,000.
Town Council Meeting Minutes of March 7, 2017 Page 4
A review of the lottery selection process was addressed next and staff set forth the following
requirements for participation:
✓ Completion of a Chamonix Vail Home Buyer Qualifying Application.
✓ Demonstrated ability to comply with the terms of the deed restriction if selected for home purchase.
✓ Demonstrated ability to secure financing for the home type(s) desired.
✓ Signed acknowledgement of acceptance of the terms of the Chamonix Vail Reservation Agreement
and Purchase/Sale Agreement.
✓ Demonstrated participation and successful completion of a Town of Vail or Valley Home Store
sponsored Homebuyer Education Class within the previous 12 months.
✓ One chance per household for the one home type desired in the lottery selection process per
Qualifying Application.
✓ Creation of a Chamonix Vail Home Buyer Wait List to address situations of selected home buyers
"falling out" of the home purchase process.
Staff continued to recommend the selection process not include a weighted preference towards
place of residency or place of employment, as a true lottery selection process is when each
participate shares an equal chance of being selected. Ruther took time to review each step of
the process as outlined in the council packet memo. It was recommended that all lottery
participants come to the lottery on May 3rd with a prepared and prioritized list of homes (i.e.
type and location) they would reserve and purchase if their name is selected in the lottery.
Public input was taken at this time and there was some discussion about how many times a
couple can enter the lottery, details about the pre qualification vs the down payment, the
reservation system, and the wait list criteria.
The project team reviewed the project schedule, noting the two schedules as follows:
Original Schedule:
➢ Development Team continues with expedited design packages including site, utility and building
foundation permit packages. The site and utility permit package will be ready for submission by March
16, 2017.
➢ On March 21, Staff/Council will review the depth of completed lottery applications. There are more
than 147 people who have completed the Home Buyer Questionnaire to date.
➢ Based on the strength of this market, council authorizes early construction activities beginning on
April 3, 2017. These early authorized scopes include the following subcontractors (total value of these
contracts authorized are in parenthesis):
grading ($1,375,000),
utilities ($525,000),
factory deposits ($1,340,000),
concrete foundations ($1,110,000),
General Conditions ($75,000).
At this time we would lock in the value of portions of the GMP.
➢ Of these commitments only $575,000 of local construction and $1,340,000 modular deposit will be
spent prior to May 10, 2017. All of these early scopes are work that needs to be done regardless
of any phasing plan and the Town will always retain the option to stop construction or change
the phasing plan — even with work underway.
➢ Finalize coordination with the modular plant and complete Contract Design Package for pricing on
April 7. Finalize Guaranteed Maximum Price (GMP) on April 28.
➢ Run lottery on May 3, 2017. Make final phasing determination and execute the final GMP
Development Contract on May 10, 2017 based on the results of that lottery.
➢ Under this original schedule, we will begin site and utility construction in early April-2017; pour
concreted for the first units in early May-2017; deliver the first units in November-2017; deliver final
units March-2018.
Town Council Meeting Minutes of March 7, 2017 Page 5
Alternative Schedule:
➢ Council approves grading and utility work to commence in early April. Total scope of work
$1,900,000. Only $575,000 completed prior to lottery.
Complete GMP construction documents for all construction in April 7.
➢ Run lottery selection process and reserve homes May 3.
➢ Determine phasing and sign the GMP on May 10. Council authorizes final GMP and Champion
deposit based on lottery results.
Mike Cuthbertson, RA Nelson, provided the basis for the proposed schedules and estimated
costs. There were questions about the guaranteed maximum price (GMP) that has not yet been
provided. It was noted the form of the contract and documents must be decided upon first and
then the numbers follow; they are still waiting for bid contracts to be returned by subcontractors.
Zemler noted the town has a budget for the project and that would serve as the amount. There
was not a good comfort level about starting the project without the executed documents. There
was a preference for using the original project schedule. It was noted the documents would be
reviewed at the next meeting March 21. Other business discussion points were:
✓ the variable is the pricing from the subs which in turn determines the schedule
✓ design detail is not ready which is why the estimate are lagging
✓ documents with all subcontractor bids may not be ready until April 14
✓ would like authorization to move forward with some of the construction activities
✓ the town will not move foreword without the GMP and executed documents
VLHA member Mary McDougall provided clarity to the prequalification letter which includes
information from the applicant about income and liabilities and noted there is still another step of
approval which evaluates assets, liabilities, credit, liquidity. She noted the pre approval step
requires much more diligence by the applicant and the lender and identifies the prequalification
letter vs. the final verification of a loan.
There being no further business to come before the council, Moffet moved to adjourn the
meeting and Foley seconded the motion which passed (7-0) and the meeting adjourned
at 8:40 p.m.
Respectfully Submitted,
Attest:
Patty cK ny, own
Town Council Meeting Minutes of March 7, 2017 Page 6