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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 UO Co �D Town Council Meeting Minutes of July 19, 2022 Page 9