HomeMy WebLinkAbout2021-07-06 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, July 6, 2021
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:
Staff members present
1. Citizen Participation
Dave Chapin, Mayor
Kim Langmaid, Mayor Pro Tern
Jenn Bruno* appeared virtual
Travis Coggin
Kevin Foley
Jen Mason
Brian Stockmar
Scott Robson, Town Manager
Patty McKenny, Assistant Town Manager
Matt Mire, Town Attorney
Tammy Nagel, Town Clerk
Ramsey Cotter thanked the town for its support of the Summervail Art Workshop legacy project.
2. Any action as a result of executive session
There was none.
3. Consent Agenda
3.1. Resolution No. 28 Series of 2021 a Resolution of the Vail Town Council Approving
a Highway Maintenance Agreement between the Town of Vail and the Colorado
Department of Transportation
Action Requested of Council: Approve, approve with amendments or deny Resolution No. 28,
Series of 2021
Background: The Town of Vail and the Colorado Department of Transportation have had
maintenance agreements in place since the late 1990's. The agreement provides for the Town
of Vail to be reimbursed for the snow removal and minor asphalt maintenance of the Frontage
Roads which are the responsibility of the Colorado Department of Transportation. In the past,
the agreements were executed every 5 years with a one-year option which CDOT was allowed
to request. The current five-year term is set to expire. CDOT has now instituted one year
maintenance agreements moving forward. The compensation for the one year is the same as
the previous five years. The Town agreed to this arrangement for one more year due to the fact
CDOT could have requested the optional year.
Town Council Meeting Minutes of July 6, 2021 Page 1
Staff Recommendation: Approve, approve with amendments or deny Resolution No. 28, Series
of 2021
Langmaid made a motion to approve Resolution No. 28, Series of 2021; Foley seconded the
motion passed (7-0).
3.2. Resolution No. 29, Series of 2021 a Resolution Approving a Contract to Buy and
Sell Residential Real Estate
Action Requested of Council: Approve, approve with amendments or deny Resolution No. 29,
Series 2021
Background: The Town wishes to purchase the Property pursuant to the terms of the Contract
to Buy and Sell Real Estate.
Staff Recommendation: Approve, approve with amendments or deny Resolution No. 29, Series
2021
Coggin made a motion to approve Resolution No. 29, Series of 2021; Bruno seconded the
motion passed (7-0).
3.3. Resolution 30, Series 2021, a Resolution of the Vail Town Council an
Intergovernmental Agreement between the Town of Vail and the Colorado Department of
Transportation for Funding Pursuant to the Coronavirus Response and Relief
Supplemental Appropriations Act of 2021.
Action Requested of Council: Approve, approve with amendments, deny Resolution 30, Series
2021.
Background: This is a contract for Federal Transit reimbursement funds through Colorado
Department of Transportation Coronavirus Response and Relief Supplemental Appropriations
Act of 2021 (CRRSAA).
Staff Recommendation: Approve, approve with amendments, deny Resolution 30, Series 2021.
Langmaid made a motion to approve Resolution No. 30, Series of 2021; Foley seconded the
motion passed (7-0).
3.4. Resolution 31, Series 2021 a Resolution of the Vail Town Council Approving an
Amendment to an Intergovernmental Agreement between the Town of Vail and the
Colorado Department of Transportation
Action Requested of Council: Approve, approve with amendments, or deny Resolution 31,
Series 2021
Background: The Town and the Colorado Department of Transportation ("CDOT") are parties to
certain intergovernmental agreement for the design and construction of a berm on the North
side of Interstate 70. The Town and CDOT wish to amend the IGA.
Town Council Meeting Minutes of July 6, 2021 Page 2
Staff Recommendation: Approve, approve with amendments, or deny Resolution 31, Series
2021
Langmaid made a motion to approve Resolution No. 31, Series of 2021; Stockmar seconded
the motion passed (7-0).
4. Town Manager Report
Robson informed council that the 2021 staff budget retreat was taking place tomorrow; and the
4' of July was a successful holiday weekend with record sales for many businesses. Lastly, he
thanked the fire and police departments for their assistance in deploying to area wildfires.
5. Presentations / Discussion
5.1. Residences at Main Vail Development Agreement
Presenter(s): George Ruther, Housing Director
Action Requested of Council: No action is requested at this time. Staff will return to the Vail
Town Council on July 20, 2021 for a public hearing on the final development agreement.
Background: A summary of the development deal structure and development agreement terms
for the Residences at Main Vail will be presented to council. During negotiations with Triumph
Development, a third development deal structure option was identified. This third option has
been discussed with Triumph Development and accepted, subject to final terms of a
development agreement. A summary of the development agreement terms is outlined in Section
III of the staff memorandum.
Staff Recommendation: Listen to the presentation and ask questions, if any, in advance of the
review of a final development agreement on July 20, 2021.
Ruther provided council with a summary of the development deal structure and development
agreement terms:
• Total Project Development Cost — $24AM
• Ownership of the Fee Title— Town of Vail
• Ownership of the Improvements — Town of Vail
• Financing — 100% Town of Vail Tax Exempt Bonds/COP's
• Financing Term — 30-year amortization
• Interest Rate — 30 years @ 1.67% (estimated)
• Developer Fee - 6% of total project development cost
• Contract Administration — All subcontracts shall be executed by and between the
Developer and subcontractors.
• Property Management/Operating Agreement — 4% of gross rental income
• Opportunity Payment- $3.5M
• Performance bond to guarantee completion
• Project Description - Completion of a 100% deed -restricted residential development
consistent with the approved development plan and in full compliance with all Town of
Vail adopted codes and regulations.
• Project Schedule — Issuance of certificate of occupancy by November 2022.
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Ruther noted a series of next steps had been identified for immediate action. Immediate next
steps included:
✓ Final Design Review Board action on July 7, 2021
✓ Prepare fee -based developer contract for review and acceptance on July 20,
2021
✓ Finalize the project schedule and update the estimated total development project
budget for review on July 20, 2021
✓ Prepare bond financing documents and ordinance authorizing the issuance of the
debt for approval on July 20, 2021
✓ Sign on a general contractor and consulting team TBD
✓ Begin construction documentation and permitting process and coordinate
process with the Town ensuring an October 1, 2021 start date
Council requested staff updates at every meeting due to the tight timeline that was presented.
Public comment was called.
John Rediker, Vail resident and Design Review Board member, expressed concern about the
design of the Residences at Main Vail. He'd like to see the architect work harder on the design
which would require more money to improve the design. Rediker noted the DRB vote tomorrow
would be at best 2-2.
Ruther stated approximately $329,000 of aesthetics had been added to the aesthetics of the
building since the last DRB review.
Public comment was closed.
Council thanked Ruther and Halloran (Finance Director) for their hard work on the agreement
and "crunching" the numbers.
5.2. Discussion of Short -Term Rental Policies
Presenter(s): Scott Robson, Town Manager; George Ruther, Housing Director; and Kathleen
Halloran. Finance Director
Action Requested of Council: Listen to presentation and ask questions.
Background: Ordinance No. 15, Series 2017 established licensing regulations on short term
rental properties in Vail. Prior to adopting the ordinance, the town hired research consultants to
help identify community issues and concerns, and provide analysis of similar regulations in peer
resort areas. Multiple public meetings were hosted, and a large amount of public input was
gathered and reported back to Council. Below is a quick recap of initial findings and peer resort
comparison, along with recommendations from the consultants.
Staff Recommendation: Provide feedback and direction to staff.
Robson provided a brief introduction to the topic by stating all resort communities are regulating
short term rentals and tonight's discussion about what peers are doing and where Vail falls
within those groups with fees, regulations, and enforcement.
Halloran spoke with council the town's current licensing process and ordinance.
Town Council Meeting Minutes of July 6, 2021 Page 4
➢ owners who short term rent their property to are required obtain an STR registration at
an annual cost of $150.
➢ For properties with an offsite professional property manager the fee is $10 per unit.
➢ For properties with an onsite 24/7 manager, the fee is $5 per unit.
Halloran reviewed the charts and studies that were included in their council packets: There were
2,163 approved STR registrations in Vail. Of those, 1,043 are STRs with no front desk and are
not fractional units. About 12% of these are in outlying residential neighborhoods. Registration
compliance is about 90%. Halloran noted STR's could be impacting long-term rentals.
Langmaid and Bruno suggested suspending new registrations for certain short-term rentals for a
short period of time to better understand the impacts and how to address them.
Council directed the town attorney to draft an ordinance for consideration at the July 20 meeting
that would suspend new registrations for short-term rentals in residential zone districts for a
short time.
6. Action Items
6.1. Ordinance No. 14, Series 2021, First reading, An Ordinance Authorizing the
Transfer of Certain Property in the Town's Right -of -Way for West Forest Road in the
Exchange for Alternate Property, and Approving the Associated Exchange Agreement, all
to Accommodate Construction of Two Residences at 816 West Forest Road
Presenter(s): Tom Kassmel, Town Engineer
Action Requested of Council: Approve, approve with amendments or deny Ordinance No. 14,
Series 2021 upon first reading.
Background: The Developer at 816 and 826 West Forest Road has requested a land swap
between the Town of Vail's West Forest Road Right of Way and a portion of 816 and 826 West
Forest Road property. The land swap would allow the developer to more easily access their
property at 816 and 826 West Forest Road, an extremely steep lot with limited access
opportunities.
Staff Recommendation: Approve, approve with amendments or deny Ordinance No. 14, Series
2021 upon first reading
Mire provided council a quick review of the Ordinance No. 14, Series 2021 stating this was
necessary because the town had to provide access to the parcel.
Stockmar made a motion to approve Ordinance No. 14, Series of 2021; Coggin seconded the
motion passed (7-0)
6.2. Village Loading and Delivery Pilot Project Update & Permission to Negotiate with
106 West Logistics
Presenter(s): Commander Ryan Kenney, Vail Police Department
Action Requested of Council: Listen to presentation and ask questions.
Background: Loading and delivery continues to be an issue in Vail Village. The Town Manager's
office has convened at Task Force to address a broad range of issues. Local contractor 106
Town Council Meeting Minutes of July 6, 2021 Page 5
West Logistics is uniquely qualified and has worked with our Vail Police Department to draft a
pilot program that can be implemented this winter.
Staff Recommendation: Authorize the Town Manager to negotiate with 106 West Logistics on a
contract price to implement a six-month load and deliver project in Vail Village during the ski
season of 2021 /2022.
Robson provided a quick introduction to the topic stating he had convened an internal task force
to address a broad range of issues. Tonight, staff is seeking permission to negotiate with 106
West Logistics on a contract to implement a 6-month pilot program to be take place this winter
with support from Vail Mountain.
Kenney stated the pilot would involve complex logistical details and new technology to improve
coordination by directing trucks to nearby loading docks and using other forms of transportation
for "last mile" delivery. This would be the only ski town in North America to have such a
program.
Council thanked Commander Kenney and acknowledged the need to implement the pilot
program.
Coggin made a motion to authorize the Town Manager to negotiate with 106 West Logistics on
a contract price to implement a six-month load and deliver project in Vail Village during the ski
season of 2021/2022; Foley seconded the motion passed (6-0*Bruno absent at 7:05pm)
7. Public Hearings
7.1. Ordinance No. 13, Series 2021, Second Reading, An Ordinance Making
Adjustments to the Town of Vail General Fund, Capital Projects Fund, Housing Fund,
Real Estate Transfer Tax Fund, Marketing Fund, Heavy Equipment Fund, Dispatch
Services Fund, and Residences at Main Vail Fund.
Presenter(s): Carlie Smith, Financial Services Manager
Action Requested of Council: Approve or approve with amendments Ordinance No. 13, Series
2021 upon second reading.
Background: Please see attached memo.
Staff Recommendation: Approve or approve with amendments Ordinance No. 13, Series 2021
upon second reading.
Smith reviewed the changes made to Ordinance No. 13, Series of 2021 since the first reading.
General Fund: Staff proposed to increase budgeted sales tax collections by another $500,000,
amending the 2021 sales tax budget by a total of $5.OM. Smith stated that the Vail Interfaith
Chapel had requested a historical and cultural contribution of $21,150 for their new Pioneers of
Vail program.
Capital Projects Fund: Staff proposed to increase the construction use tax revenue budget by
an additional $250,000, amending the 2021 use tax budget to $3.25M. Construction use tax
collections. Additional increases to the Capital Fund included:
Town Council Meeting Minutes of July 6, 2021 Page 6
✓ increase expenditures by $250,000 for the remodel of the town's Council Chambers.
through June total $2.4M.
✓ include $100,000 for design and surveying expenditures for new parking area in West
Vail and/or the surface lot north of the Vail Resorts maintenance area.
✓ $20,000 placeholder in the Capital Projects Fund for a memorial honoring Pepi
Gramshammer
✓ $1.5M transfer to the Residences at Main Vail Fund.
Real Estate Transfer Tax Fund: Staff proposed to increase budgeted Real Estate Transfer Tax
(RETT) collections by $1.OM, amending the 2021 budget to $8.OM. RETT collections through
June 30th total $5.3M and are tracking 117.9% up from 2020 and 78.9% up from 2019. Smith
noted an amended budget of $8.OM was a 23% decrease from actual 2020 RETT collections.
Residences at Main Vail Fund: The operation, construction, and financing of this project would
be accounted for in a similar manner as the Timber Ridge Apartments, as its own enterprise
fund. This supplemental reflected the creation of this new fund and appropriates a placeholder
of $24.5 million for the construction of the project. In addition, budgeted revenues include
$24.5M in bond proceeds and a $1.5M transfer from the Capital Projects Fund to cover the
initial phase of construction prior to the availability of the bond proceeds. Final debt terms and
an ordinance approving the debt will be presented at the July 20th meeting. Any adjustments to
the budget will be reflected in the 3rd supplemental in December.
There was no public comment.
Council thanked staff for their hard work.
Foley made a motion to approve Ordinance No. 13, Series of 2021; Stockmar seconded the
motion passed (6-0* Bruno absent).
There being no further business to come before the council, Foley moved to adjourn the
meeting; Coggin seconded the motion which passed (6-0*Bruno abesent) and the meeting
adjourned at 7:40 p.m.
Respectfully Submitted, i
Attest:121 C
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Town Council Meeting Minutes of July 6, 2021 Page 7