HomeMy WebLinkAbout2022-07-19 Town Council MinutesVail Town Council Meeting Minutes
Tuesday, July 19, 2022
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 Langmaid.
Members present
Staff members present
1. Citizen Participation
Kim Langmaid, Mayor
Travis Coggin, Mayor Pro Tern
Barry Davis
Kevin Foley
Jen Mason
Pete Seibert
Jonathan Staufer
Stan Zemler, Town Manager
Kathleen Halloran, Deputy Town Manager
Matt Mire, Town Attorney
Tammy Nagel, Town Clerk
Chris Neuswanger, Edwards resident, expressed concerns about town's interest in joining other
partners in purchasing the Edwards River Park property due to wildlife habitat.
Robyn Smith, Vail resident, asked council to follow through on several housing initiatives
including rezoning the West Middle Creek parcel. She also noted new Shift Bike program is
great.
Jenn Bruno, Vail resident, shared there was a strong interest in Chamonix Vail housing lottery
with 49 applications for 1 home. She encouraged council to do more to address the housing
issue.
2. Any action as a result of executive session
There was none.
3. Consent Agenda
3.1. June 7, 2022 Meeting Minutes
Foley made a motion to approve June 7, 2022 council meeting minutes; Staufer seconded the
motion passed (7-0).
3.2. June 21, 2022 Meeting Minutes
Staufer made a motion to approve the June 21, 22 council meeting minutes; Foley seconded
the motion passed (7-0).
Town Council Meeting Minutes of July 19, 2022 Page 1
3.3. Contract Award to American Mechanical Systems to install three new Vail Village
Snowmelt Boilers
Background: The purpose of this item is to provide background regarding the opportunity to
receive three new boilers for which the town would be responsible for installation and to award a
contract for the installation of the three new boilers at Vail Village snowmelt boiler system.
Staff Recommendation: Authorize the Town Manager to enter into an agreement, in a form
approved by the Town Attorney, with American Mechanical Systems for the installation of three
boilers at the Vail Village boiler plant, in the amount of, and not to exceed, $218,000.
Coggin made a motion to authorize the Town Manager to enter into an agreement with
American Mechanical Systems in an amount not to exceed $218,000; Foley seconded the
motion passed (5-2* Langmaid and Staufer opposed).
4. Town Manager Report
4.1. Town Manager Search Dates
Zemler reported applications have closed for Town Manager candidates. There were 67
applicants, 30% are from Colorado. On Aug. 2, recruiter would forward 10 to 12 candidates for
councils' consideration from which to short-list. Finalists would be invited to Vail Aug. 10-12. A
community meet and greet would take place at 5:30 p.m. Aug. 11. Council interviews would take
place Aug. 12. A community interview panel would also be assembled.
5. Presentations / Discussion
5.1. Loading and Delivery Presentation
Presenter(s): Commander Ryan Kenney, Vail Police Department
Action Requested of Council: Listen to presentation, provide feedback, and authorize critical
infrastructure equipment to ensure the success of the Loading and Delivery Program October
start date.
Background: Staff would like to take steps to codify the Town's E-Vail Courier delivery pilot
program and transition its full implementation, as recommended by the Loading and Delivery
Work Group. This includes its funding, and updates to regulations related to dismount zones
and the pedestrian mall.
Kenney reviewed the E-delivery pilot program and draft ordinance with the council. The program
was operating with 1 dockmaster, 4 delivery drivers and 2 low speed electric vehicles. The
program was servicing 40 businesses. The program had expanded to include deliveries to
businesses on E. Meadow Dr. Christmas week had the highest volume of goods when the
program delivered 26,000 pounds of goods and 90 kegs in one day. Kenney stated the E-
delivery pilot program would end September 30'h but he was confident that the full
implementation of the pilot program would be successful if it became permanent. Kenney
thought based on the current volume of goods coming into the Village, a budget of $1.3 million
per year was projected for full implementation. The budget included additional manpower and
infrastructure to process all deliveries to Vail Village.
Town Council Meeting Minutes of July 19, 2022 Page 2
There would be two different fees implemented to cover the E-delivery program.
• Loading Dock Fee: A proposed loading dock fee would be charged for delivery
businesses that will access any loading dock in the Village or Lionshead. The loading dock fee
would be charged on an annual basis through a permit process managed by the police
department.
Assigning each tier would be based on the following point system:
Number of days per week: 1 day = 1 point, 2 - 3 days = 2 points, and 3 or more
days = 3 points.
r Number of delivery locations: 0 - 12 = 1 point, and 12+ = 2 points
Amount of time spent making deliveries (at the dock): 0 - 1/2 hour = 1 point, anc
1/2 hour or longer = 2 points.
Size of trucks (per axel): Van = 1 point, less than 3 axles = 2 points, and 3 or
more axles = 3 points.
Points earned Tier Annual Fee
9 or greater 1 $27,000 ($2,250/mo)
6-8 2 $18,000 ($1,500/mo)
5 3 $12,000 ($1,000/mo)
Less than 5 4 $3000 ($250/mo)
• Loading and Delivery Fee: An annual loading and delivery fee would be paid at the time
of renewal of each business license and intended to cover a portion of the costs of loading and
delivery facilities and programs.
The annual fee would be paid according to the following schedule:
➢ Commercial accommodation service establishments: $13 per rental
interest, with a minimum fee of $200.00 per business.
Accommodations service businesses in residential buildings with
24/7 on -site management services: $13 per rental interest, with a
minimum fee of $200.00 per business.
Restaurants, taverns, or any other business with the primary purpose
of serving food and beverages: $15 per seat, with a minimum fee of
$200.00 per business.
➢ Retail establishments: $775 per business.
➢ All other businesses: $200 per business.
Kenney shared the annual fee would be paid to the Finance Department before January 31 st
each year and would generate approximately $260,000 per year, or roughly 20% of the
annual operating costs of the program.
Davis asked how owner access from 10-11 am determined. Kenney explained that hour of the
day is least destruction in the Villages, but they time could be changed.
Foley and Mason agreed and requested the time be from 9-11.
Staufer asked how the ordinance would affect businesses who deliver products from their stores
i.e. flower shops and liquor stores. Kenney did not believe those types of businesses would be
affected.
Town Council Meeting Minutes of July 19, 2022 Page 3
Coggin stated he was in favor of the loading doc fee but not the annual fee.
Langmaid agreed with extending the access time and the town covering the $260,000 loading
and delivery fee on the businesses.
Public comment was called.
Bruno, Vail business owner, questioned the $750.00 annual fee and felt it would be a tax since
they would not be getting any services. She also stated a 9:00 am start would be great.
Tom Higgins, American Ski Exchange, expressed concerns about proposed loading and
delivery modifications. He did support the start time at 9:00 am.
Karen Apostolo, A Secret Garden, asked if this ordinance would affect their floral business.
Kenney stated it would not affect the way she conducts business.
Matt Morgan, Sweet Basil, shared his experience supported the loading and delivery
modifications. He expressed concern for some restaurant products needing refrigeration.
Simone Reatti, La Nonna Ristorante, expressed concerns that loading and delivery costs would
be passed on to businesses by delivery companies. He stated businesses had already seen an
increase in prices to all products. This would be another increase the businesses would end up
absorbing and passing onto their consumers. He was in favor of the program but agreed the
need to for refrigeration.
Dimitri Souvorin, Montauk Seafood Grill and El Segundo, suggested involvement by Eagle
County public health to ensure all health requirements are being meant.
Cameron Douglas, Montauk Seafood Grill and El Segundo, expressed the same concerns
about public health requirements and possibly needing refrigeration. Douglas noted the already
high cost of doing business.
Public comment was closed.
Foley felt the town should pay for all the costs of the program. He thought the business
community would end up absorbing the costs.
Kenney stated he would make the council's recommended changes to the access time and the
to the fee schedule sections of the draft ordinance and come back at the August 2nd meeting for
first reading.
Council thanked Commander Kenney and looked forward to the first reading on August 2.
6. Action Items
6.1. Ordinance No. 13, Series of 2022, First Reading, An Ordinance Amending Chapter
3A of Title 7 of the Vail Town Code, Concerning Towing and Impoundment of Vehicles
Presenter(s): Ryan Kenney, Commander Police Department
Town Council Meeting Minutes of July 19, 2022 Page 4
Action Requested of Council: Approve, approve with amendments or deny First Reading of
Ordinance 13, Series of 2022.
Background: Ordinance No. 13, Series of 2022 amends the Vail Town Code to incorporate the
procedures set out in Title 42, C.R.S., concerning the towing and impoundment of abandoned
motor vehicles.
Staff Recommendation: Approve, approve with amendments or deny First Reading of
Ordinance 13, Series of 2022.
Kenney reviewed Ordinance No. 13, Series of 2022 with council which amended the Vail Town
Code to incorporate the procedures set out in Title 42, C.R.S., concerning the towing and
impoundment of abandoned motor vehicles.
There was no public comment.
Council had no questions.
Coggin made a motion to approve Ordinance No. 13, Series of 2022 with council; Davis
seconded the motion passed (7-0).
7. Public Hearings
7.1. Ordinance No. 4, Series of 2022, First Reading - An Ordinance Amending the
Approved Development plan for Special Development District No. 36, Four Seasons
Resort
Presenter(s): Jonathan Spence, Planning Manager
Action Requested of Council: Approve, approve with modifications, or deny Ordinance No. 4,
Series of 2022, upon first reading.
Background: On June 21, 2022, the revised application heard previously by the PEC on May 9,
2022, was presented to the Vail Town Council. In continuing the item to the July 19, 2022,
public hearing, Town Council members provided direction to the applicant team that an increase
in tangible public benefit above what was proposed was necessary.
The applicant has returned with a revised proposal as outlined in the staff memorandum and
related attachments.
Spence presented a brief powerpoint reviewing the history of Special District Development No.
36, Four Seasons Resort's initial application, the PEC's recommendations for denial on March
14 and May 9ch meetings, and council's direction on June 21 to the Applicant's team that an
increase in tangible public benefit above what was proposed was necessary. Spence reviewed
the current SDD proposal:
✓ Replacing up to 16 underutilized onsite deed -restricted employee housing units (EHUs)
with offsite deed -restricted employee housing located within the Town of Vail.
✓ Reconfiguring the underutilized dorm -style employee housing units into up to 13
additional hotel accommodation units (AUs); and
✓ Reclassifying seven existing accommodation units into four dwelling units.
Town Council Meeting Minutes of July 19, 2022 Page 5
✓ A $1 million contribution to the Town of Vail for the purpose of housing initiatives.
✓ The purchase of deed restrictions on (7) two (2) bedroom dwelling units located in the
Vail Daily Building in Eagle Vail for the sum of $600,000. Alternatively, if that
arrangement fell through the applicant would transfer the $600,000 to the Town of Vail,
for housing related initiatives.
Council had no questions.
Kristin Kenney Williams, Commfluent Inc. and Andy Sellnu spoke on behalf of the Applicant and
agreed with Spence's recap and explanation of the current proposal.
Sellnu reviewed the benefits the proposal provided to the town:
• A $1 million immediate cash contribution, which can be applied to CDOT parcel
acquisition (or any other housing project) for incremental employee housing.
• New deed restrictions for 15.75 employees via the Vail Daily Building in EagleVail (an
incremental 7 two -bedroom units; 7,713 sf); closing anticipated 45 days after approval. If
the Vail Daily owner defaults, the Town shall receive the contract amount instead. Rental
priority for employees in Town of Vail.
• $229,000 of transfer taxes paid immediately (based on the 4 condos closing at an
average of $2,000 square feet/unit.)
• Sales/use tax on 4 condo renovations ($4.5+ M in construction cost expected.)
• Sales/use tax on 4 condo furnishings/decorations ($1.5+ M in FF&E cost expected).
• Sales/occupancy tax on $2.5 M of expected incremental rental revenue from the 4 new
condos.
• Additional impact to other Vail businesses: brokerage commissions, additional
rental/owner expenditures at other restaurants/shops/etc.
• Offsite replacements for any converted dorm rooms would be solely in the Town of Vail;
converting 16 dorm rooms would equate to 28 deed restricted bedrooms with a required
minimum, per Town of Vail Code, of 11,204 square feet, or 32 employees.
• Sales/construction use tax on dorm room conversion (—$10 MM in cost expected.)
• Sales/lodging tax on $1.7 MM of expected incremental room revenue from 13 new hotel
rooms; additional sales tax on incremental food/beverage/spa revenue.
Sellnu reviewed Part A and Part B of the proposal
Part A:
• Reconfiguring an administrative office into 2 additional hotel accommodation units (AUs);
• Reclassifying 7 existing and underperforming AUs into 4 dwelling units (DUs). As further
detailed in our application, these changes would not result in any incremental parking
requirements or employee generation.
• A $1 million immediate cash contribution, which can be applied to CDOT parcel
acquisition (or any other housing project) for incremental employee housing.
• New deed restrictions for 15.75 employees via the Vail Daily Building in EagleVail (an
incremental 7 two -bedroom units; 7,713 sf); closing anticipated 45 days after approval. If
the Vail Daily owner defaults, the Town shall receive the contract amount instead. Rental
priority for employees in Town of Vail.
Part B:
• Maintaining 12 onsite dorm rooms (24 beds) for J1s, H2Bs and temporary employees
because we are confident this is the right number of dorm rooms that can continue to be
utilized;
Town Council Meeting Minutes of July 19, 2022 Page 6
• A system to replace the other 16 underutilized onsite deed -restricted employee dorm
rooms (32 beds/employees) with offsite deed restrictions located solely within the Town
of Vail;
• Removing the 16 onsite dorm rooms would be replaced with approximately 28 deed -
restricted bedrooms within units that have adequate living, kitchen, bedroom and
bathroom spaces;
• Reconfiguring the 16 underutilized employee housing units into 11 hotel accommodation
units (AUs): an offsite deed restriction in the Town of Vail must occur before a hotel
accommodation conversion can occur.
Seibert expressed concern on the public benefit reduction and would like to see 2:1 creating 32
employee beds to 64. William explained the hardship in finding those deed restrictions in a
timely manner. Where the $1 M contribution would factor in.
Langmaid wanted to confirm this would be net new and not purchasing current deed restrictions.
Davis agreed finding the new deed restriction for that many employees would be difficult. He
expressed interest in the $1 M contribution concept but felt it should be $2M to reflect the 64
employee beds that council member Seibert was recommending.
Public comment was called.
Alison Wadey, Vail Business Chambers, agreed with Davis and supported Ordinance No. 4.
Bruno appreciates what is being done to get more housing and realize both the Four Seasons
and the town will benefit from this change to the SDD.
Public comment was closed.
Closing comments from the Applicant was called.
Williams stated if there was a contribution amount that council had the Applicant would like to
table the ordinance to allow everyone to discuss next steps.
Closing comments from staff was called.
Spence said they could work with the Housing Dept and the Applicant to come to a reasonable
dollar amount for the 64 employee beds.
Coggin used the Solar Vail Project costs in equating a dollar amount for the Applicant to
consider. He said 16 units which would total in 32 beds; at $65,000 per unit came to $1.40M.
Coggin thought that a total of $2.40M was a reasonable dollar amount.
Mason agreed with Coggin but was fine with $2M.
Foley asked about purchasing the units at the Daily building in EagleVail; Williams shared the
units were not for sale but the contract would read the Applicant would have first right of refusal
and the Town of Vail 2nd rights of refusal.
Town Council Meeting Minutes of July 19, 2022 Page 7
Coggin made a motion to approve Ordinance No. 4, Series of 2022 with the amendment of
$2.40M as the contribution dollar amount; Davis seconded the motion passed (7-0).
7.2. Ordinance No. 14, Series of 2022, Second Reading, Budget Supplemental No. 2, an
ordinance making budget adjustments to the Town of Vail General Fund, Capital Projects
Fund, Real Estate Transfer Tax Fund, Housing Fund, Marketing Fund, Dispatch Services
Fund, Heavy Equipment Fund, and Residences at Main Vail Fund of the 2022 Budget for
the Town of Vail.
Presenter(s): Carlie Smith, Deputy Director of Finance
Action Requested of Council: Approve, approve with amendments, or deny Ordinance No. 14,
Series 2022.
Background: Please see attached memorandum.
Staff Recommendation: Approve, approve with amendments, or deny Ordinance No. 14, Series
2022.
Smith quickly reviewed the changes to Ordinance No. 14, Series of 2022 since first reading.
✓ Included in the Capital Budget
• $35,000 for the final clean-up and drainage improvements near the boulder wall
along the east side of the Charter Bus Lot /Children's Garden of Learning (CGL).
• transfer of $5,532,702 to the Housing Fund. This transfer establishes the
beginning available balance in the Housing Fund for the financial statements as
it's been presented in previous budget documents. This will have no net impact
to the overall budget.
✓ $50,000 was requested in the Timber Ridge Fund to begin the redevelopment of Timber
Ridge
✓ In the Real Estate Transfer Tax fund
• a placeholder of $175,000 to partner with the Colorado Department of
Transportation (CDOT) on a study for wildlife crossings east of Dowd Junction as
a continuation of the Safe Passages for Wildlife project.
• $70,000 for repairs and maintenance and the Golf Course Clubhouse. This
includes exterior painting and trim staining, a forensic study of the roof and the
sewage system, as well as placeholder of funds to address needed repairs as a
result of the study.
There was no public comment.
Coggin and Davis did not agree with the $175,000 placeholder for a study for wildlife crossings.
They both stated the Safe Passage for Wildlife Project was a CDOT study and should be paid
by CDOT.
Mason made a motion to approve the second reading of Ordinance No. 14, Series of 2022 with
the addition of $260,000 to cover the loading and delivery fees; Staufer seconded the motion
passed (5-2*Coggin and Davis opposed).
Town Council Meeting Minutes of July 19, 2022 Page 8
There being no further business to come before the council, Foley moved to adjourn the
meeting; Coggin seconded the motion which passed (7-0) and the meeting adjourned at 8:05
p.m.
Attest:
ammy gel, Towin Clerk)
Respectfully Submitted,
1- id, Mayor
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Town Council Meeting Minutes of July 19, 2022 Page 9