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03-21-11 Town Council Minutes SNOWMASS VILLAGE REGULAR MEETING MINUTES MARCH 21, 2011 CALL TO ORDER AT 4:00 P.M. Mayor Boineau called to order the Regular Meeting of the Snowmass Village Town Council on Monday, March 21, 2011 at 4:05 p.m. Item No. 1 ROLL CALL COUNCIL MEMBERS PRESENT: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. COUNCIL MEMBERS ABSENT: All council members were present. STAFF PRESENT: Russ Forrest, Town Manager; John Dresser, Town Attorney; Hunt Walker, Public Works Director; Chris Conrad, Planning Director; Mark Kittle, Chief Building Inspector; Susan Hamley, Marketing Director; Marianne Rakowski, Finance Director; Lesley Compagnone, Community Relations Director; Rhonda B. Coxon, Town Clerk PUBLIC PRESENT: Madeleine Osberger, Mary Harris, Dave Spence, Peter Moore, David Perry, Robert Sinko, John Quigley, Barbara Wicks, Johnny Henschel, Scott Patterson, George Huggins, Anita Manchester, Reed Lewis, Bob Purvis, Carolyn Purvis, Rick Griffin and members of the public interested in items on today's agenda. Item No. 2 PUBLIC NON AGENDA ITEMS Krabloonik Ricki Newman, resident of Aspen, Colorado noted that she would like to discuss a matter that keeps being swept under the rug. She sent an email this week in regards to the conditions of the dogs at the Krabloonik Restaurant. She met and spoke with the General Manager Guy Courtney and he would not answer all her questions. She spoke about the PACFA and Department of Agriculture complaints and the continuous 03 -21 -11 tc Minutes Page 2 of 13 violations /citations and nothing has been done about the conditions. Council directed staff to obtain the state inspection reports and provide them to the Council. Item No. 3 COUNCIL UPDATES Council Member Wilkinson stated that he, Council Member Haber and Mayor Boineau attended a CAST meeting in Denver last Thursday. One of the topics of discussion was how to collect sales tax for vacation rentals on the internet. He stated there has been progress and the software will be going live soon in Summit County. Mayor Boineau stated that he attended a meeting in Denver about Congressional redistricting. There have been several meetings and a decision should be made soon He will keep us apprised of the situation. Council Member Butler stated that there is presentation at the Snowmass Village Conference Center Tuesday, March 22, 2011 by Dr. Kirk Johnson. This is a ticketed event and tickets are available at Sundance Liquor and Gifts. Council Member Butler thanked all of those who showed up for Barb Moebius' memorial service at the Snowmass Chapel. She also thanked Barb and Dick for everything they have done for this community. Council Member Butler stated the Winter Sports Clinic is arriving in the community this week and they are always looking for volunteers to help with the disabled vets. Council Member Haber spoke to the issues with Krabloonik and informed Ricki of some options to deal with complaints; Filing an official complaint of animal cruelty and bringing legislation before the Council for approval. Council Member Haber stated the Town has been talking about a paperless Council for awhile and he stated from now on he will obtain his packet online and will no longer need a notebook. He encouraged the rest of the Council to do the same. Item No. 4 YEAR END FINANCIAL UPDATE Finance Director Marianne Rakowski reviewed 2010 year -end numbers and proposed revisions to various 2011 adopted budgets. In today's packet are the 2010 year -end numbers for Town Funds and the Lottery Fund. As part of this year -end review, we have included any "known" revisions proposed or needed to the 2011 adopted budget. Attached are spreadsheets describing the major impacts to both the 2010 year -end variance numbers and the proposed revisions to the 2011 adopted budget. At this time Rakowski reviewed each fund with Town Council. General Fund 03 -21 -11 tc Minutes Page 3 of 13 2010 Ended the year with an additional $1,491,281 in Fund Balance. Revenues were up by $271,099 and Expenditures were down by $1,214,791 ($380K of this is reserved to be spent in 2011 (Holy Cross Energy Efficiency Road Sweeper -both were budgeted to be spent in 2010); $387K is savings due to health insurance from a low claims policy period). 2011 is budgeted with additional revenues of $668K (mostly from the Property Tax increases approved by the electorate in November of 2010 for the Droste Property and Transportation Funding). Expenditures are budgeted to increase by $894K mostly due to the use of the $380K that was reserved at the end of 2010 for the Energy Efficiency and Sweeper expenses. The bulk of the remaining additional expenses is adding back the Transportation Summer Bus Service and the Droste Property Expenditure to Pitkin County Open Space. The net change to the 2011 year end fund balance is an increase of $1,265K bringing the fund balance to $6.5M. RETT Fund 2010 ended the year with an additional $977,176 in Fund Balance. Revenues were up by $77K which was a combination of increased RETT revenues and a decrease in FTA Grant funding for buses delayed to 2011. Expenditures were down by $899K, the majority of which was for bus purchases that were delayed to 2011. 2011 Fund Balance will decrease by $125K due to the use of reserves for the bus purchases originally budgeted in 2009 and 2010 that were delayed to 2011. Although 2011 shows an Unappropriated Year -end Reserve of $685K, this reserve continues to decrease from 2012 to 2015 to an unappropriated reserve of $22K in 2015. Any additional expenditures beyond what is currently budgeted for those years would need to be funded by increases in revenues or further reductions of expenditures. Lottery Fund The Lottery Fund has continued to build up Year -end reserves ending 2010 with $76K in unappropriated reserve. Due to the funding constraints in the RETT Fund from the decrease in RETT revenues over the past couple of years, staff is proposing to use $74,500 of the unappropriated reserve to fund Recreation, Parks, and Trail maintenance, repairs, and amenities (see the attached breakdown). After review of the Conservation Trust Fund regulations, staff believes that these are all allowable expenditures of the Lottery Fund. Approval of these expenditures will leave a Fund Balance of $22K at the end of 2011. Excise Tax Fund 2010 Fund Balance ended with an increase of $1,149,218. Revenues increased by $265K (increase in Excise Taxes and Housing Mitigation funds) and expenditures decreased by $884K, mostly due to budgeting for the possible purchase of two 03 -21 -11 tc Minutes Page 4 of 13 additional CCTH that did not occur. There was also $60K in unexpended deck remodel funds that will be spent in 2011. At this point, the only change to the Excise Tax Fund for 2011 is the increase in expenditures of $60K for the completion of the deck remodel project for Housing. 2011 budgeted year end fund balance is $8.4M. Marketing Fund The Marketing Fund ended 2010 with an additional $254,372 in Fund Balance. This increase was roughly equally split between an increase in revenues of $142K (Sales Taxes) and a decrease in expenditures of $112K (Winter Marketing, Operating and Maintenance Costs, Special Events and Miscellaneous accounts). 2011 revised proposes spending the 2010 additional year end carryover mostly on Summer Marketing ($201 K) and the Ice Age Discovery Center ($40K) leaving an unappropriated fund balance of $1 K. Group Sales Fund 2010 ended the year with an additional $188,383 in Fund Balance. This is attributed to an increase in Lodging Taxes of $90K over budget and a decrease in expenditures of $102K mostly from Personnel Services due to the change in staffing. There are currently no changes proposed to the Group Sales Fund for 2011. When the new Director of Sales begins he will look at the Budget. Council inquired about staff raises, Mayor Boineau noted it has been three years since staff has had a raise. Town Manager Forrest noted that he would have a recommendation at the next financial update to the Town Council in June. The Town Council commended the staff and Rakowski on the conservative efforts made in the last few years. Russ Forrest stated we would be back in June with another update in the same format as presented at today's meeting. Item No. 5 FAB SALES TAX REPORT /RECOMMENDATIONS Finance Director Marianne Rakowski stated that Council directed the Financial Advisory Board to analyze sales tax generation by Commercial Area (Mall, Base Village, Snowmass Center and Other areas) and to report their findings to the Town Council. The Finance Department developed a sales tax matrix containing information for the Mall, Base Village, Snowmass Center and Other Area categories. This information was further broken down into General Retail, Restaurants, Sports Equipment /Clothing, Food Drug Liquor and Lodging components. Lodging was eventually pulled from the analysis to protect the confidentiality of the businesses (since Base Village only had one business reporting separately, it needed to 03 -21 -11 tc Minutes Page 5 of 13 be added to the "Other" Category thereby making it difficult to do a "true" comparison between areas). The sales tax information was provided for each year beginning with 2006 (pre -Base Village) through 2009, then updated with 2010 numbers. Information for 2000 was also added to the analysis, which was taken from the 2001 Baseline Economic Indicators Report. A sub analysis (which is included in this packet) was developed and was reviewed by the Financial Advisory Board in January and further updated and reviewed by the Board in February. The sub analysis includes the gross sales generated in the Retail, Restaurant, Sports Equipment /Clothing and Food /Drug /Liquor sales derived from the Base Village, Mall and Center areas. The analysis further takes those gross sales and quantifies them in terms of per square foot generated per area. The board also reviewed skier visit numbers, occupancy data and sales tax changes from other resorts. \The Financial Advisory Board will be meeting on Wednesday, March 16, 2011 to formulate their recommendations based on the information discussed at their meetings in January and February. These recommendations will be emailed to the Council following the meeting and will be presented to the Council on March 21, 2011. A comparison of the Sales Tax change between 2006 and 2009 for other mountain communities from the Steamboat Springs Mountain Communities Report shows that sales tax collections decreased by a range of 5.5% to 12% with the average being 7.42% down. Snowmass Village was down by 6.7 Financial Advisory Board Chairman Rick Griffin provided the problem and recommendations from the FAB. He stated that the basic problem from the sales tax data the FAB reviewed is that the retail areas in the Mall and Base Village are not sustainable. It was also recognized that based on sales per square foot that the retail environment in the Mall (before Base Village) was difficult given its seasonality. During the PUD review for Base Village, $400 /sq. foot was considered indicative of a healthy business. Sales per square foot in the Mall changed from $268 sq. ft. in 2000 to $317 sq. ft in 2006 to $279 sq. ft. in 2010. Base Village had an average of $186 sq. ft. in 2010. Reasons the FAB believes that the retail areas are unsustainable include: The recession over the last two years has made the retail and lodging environment challenging at best particularly in a resort that depends on discretionary spending. There is an imbalance between the residential and commercial mix in the Mall and Base Village. The bed base in Base Village has not kept pace with the increase in commercial square footage. 03 -21 -11 tc Minutes Page 6 of 13 Given the increase in commercial square footage (there has been a 33% increase in leased square footage in both Base Village and the Mall between 2006 and 2009) there has not been a proportionate increase in guests and or lodging to support that square footage. We need more heads on beds to be sustainable. Base Village is not complete. Of the 613 new lodging units approved in Base Village, only 243 units (40 are complete. Of the 70,161 square feet of commercial space approved in Base Village, 50,633 sq. ft. is built (70% of the total approved) and 43,005 square feet is actively leased. Two guest serving commercial nodes are challenging to remain sustainable. There is not a critical mass of retail in either the Mall or Base Village to be sustainable. There has been a 1 increase in gross sales within the Center, Base Village and the Mall between 2006 and 2010. However, there is more competition (more commercial square footage) in the Mall and Base Village making the pie smaller for those retail businesses. The sales per square foot in the Mall between 2006 and 2010 were reduced by 12 Recommendations: Completing Base Village is important. Increasing the number of lodging units and hot beds is critical to address the imbalance mentioned above. The new developer of Base Village will most likely want to review the retail and commercial mix in Base Village in relationship to the other two commercial nodes in Snowmass Village. If this occurs, the Town should independently review new assumptions and conclusions on residential and commercial mix proposed by the developer. Considering that it may take some time to see physical change in Base Village the following recommendations are offered: To increase the number of visitors and occupancy, a new level of cooperation is needed between the Town, retailers, and lodging. The Town should investigate incentives for businesses and the Town to work together to develop promotions, share information, and remove barriers to synergistically work together to improve occupancy. Without interfering in lease relationships, the Town Manager should reach out to landlords to help facilitate communication between landlords and tenants. Sometimes this might involve discussing a change of use. Where there is vacant commercial space, it also might involve simply providing a point of reference on retail sales with the information derived from the FAB analysis. 03 -21 -11 tc Minutes Page 7 of 13 Pace ourselves financially with the current economy. The Town should recognize that it performed better than the average in this economic downturn compared to other resorts. Page 17 of the Council packet, there is a summary of the change in sales tax for a number of mountain resorts. The decline in sales tax between 2006 and 2009 ranged between -5.5% to -12 The average decline in sales tax was 7.42 Snowmass Village beat the average and was down by 6.7% on sales tax between 2006 and 2009. Snowmass Village also reduced its spending during this economic down -turn. FAB would simply remind the Council, that spending should correspond with the actual pace of economic recovery which is uncertain at this time. However, an improving economic climate if it occurs will improve retail and lodging sustainability and we have performed better compared to our competitors as measured by total sales tax. The next direction of the Financial Advisory Board is to meet with the Marketing Group Sales and Special Events Board. Colleen Doyle, a part time resident of Snowmass Village, member of the Part Time Residents Board and the Tusk Force, speaking on behalf of herself, spoke to the baseline and being able to track information in the future. Item No. 6 JOINT MEETING WITH THE MARKETING GROUP SALES AND SPECIAL EVENTS BOARD Chairman of the Marketing Group Sales and Special Events Board John Quigley introduced all the members of the Board noting that each member has been active in every aspect of Tourism for many years. Snowmass Tourism Director Susan Hamley stated that this is one of four meetings a year presenting information to Town Council, this meeting will be addressing the Summer of 2011. Discuss current understanding and ensure a comfort zone exists regarding delegation of accountability among Town Council, MSE &GS Board, and Staff. Overview financial performance for 2010 Highlight 2010 Budget "Buckets." Review 2010 General Fund Gross Sales and 2000, 2006, 2009, 2010 Comparison (this information will be provided in a preceding presentation by Marianne Rakowski): All Channels Non Lodging Lodging 2006 vs 2009 Comparison to Competitive Resorts Share Occupancy Performance Historical by Year and by Season 2010/2011 Winter Pacing 03 -21 -11 tc Minutes Page 8 of 13 2010/2011 Winter Resort Comparables Pacing (Note: Investing in advertising for March resulted in once again pacing at #1 in our competitive set) Reinforce Metrics Deployed: Regular Reports Occupancy Average Daily Rate Sales Tax by Segment Income /expenses versus Budget Periodic Reports: Competitive Resort Comparables Skier Days (in Winter) Commercial Space Product /sgft) Capture /Leakage FIT and Group Breakdown Nodal Analysis Stakeholder Report This is a reference document summarizing activities that were implemented in 2010 towards accomplishment of metrics. Included is an outline of the numerous stakeholder outreach programs that occur regularly Preview 2011 Summer Programming There was a very lengthy discussion between Council, staff and Marketing Board regarding the return of investment for our marketing dollars. There was no conclusion to how this can be accomplished but there was very good information sharing between Council and staff. Council Member Kucker again brought up the idea of a summer camp for families, he stated we have the amenities to make this work and he encourages the Board to look into this idea. Mary Harris representing the Timberline Condominiums noted we definitely do not want to put all our eggs in one basket, but she would not want to lose any winter marketing. She continued by saying we know winters and what to expect but we do not have a handle on summer. She encourages more information from Marketing for the summer and surveys and more details about summer. Colleen Doyle, part time resident of Snowmass Village, spoke to making this a destination resort, she asked for an executive summary of the Marketing presentation and asked "what is the Vision of Snowmass what do want to be. She noted she is very tuned in and is confused at what our vision and message is for Snowmass. It was also consensus of the Council, staff and the Marketing Board to discuss an 03 -21 -11 tc Minutes Page 9 of 13 official representation on the Marketing Board from the Aspen Ski Company, discussions will continue in the near future. The Council asked that the minutes from the Marketing Board be disbursed to the Council so they can keep apprised of the Board's efforts. The Marketing Board will continue coming before the Council twice a year with a business plan and performance standards. Item No. 7 DISCUSSION BASALT THRIFT STORE USE OF PUBLIC LAND Community Relations Director Lesley Compagnone stated that the Town Council is being requested to receive a presentation from staff on a proposed new project that will be located on Town property. In its role a property owner, Council is being asked whether the project should be considered further and be allowed to go through the Town's Temporary Use Permit process. She added that this past winter, the Basalt Thrift Store approached staff with an idea for a drop -off donation site within the Town of Snowmass Village. Compagnone stated that the Basalt Thrift Store started in 2008 and is a self- sustaining non profit business that pays its own expenses and then donates remaining profits to area schools, women's shelters and other non profits in the Roaring Fork Valley. Council consensus was to continue the process with the Annual Temporary Use permit and directed staff to reach the Board of the Aspen Thrift Shop to be sure they are in favor of the this request by the Basalt Thrift Store. Mayor Bill Boineau made the motion to approve the request for the use of the land for a 10 day time period. Fred Kucker seconded the motion. The motion was approved by a vote of 4 in favor to 1 opposed. Voting Aye: Mayor Bill Boineau, John Wilkinson, Fred Kucker, and Jason Haber. Voting Nay: Markey Butler. Item No 8 RESOLUTION NO. 19, SERIES OF 2011- TIMBERLINE AND STONEBRIDGE CONDOS REOP WAIVER REQUEST Chief Building Inspector Mark Kittle presented Resolution No. 19, Series of 2011 which is a request from Timberline and Stonebridge Condos for a waiver from REOP fees. He has notified both the Timberline and Stonebridge that their respective projects will be subject to the regulations and fees approved under the original ordinance. Timberline has expressed their intent to apply for a waiver of the fees for snowmelt around their pool and spa. Stonebridge has also expressed this same intent. Timberline currently owes $20,252 in REOP fees and Stonebridge currently owes $8,387 in REOP fees. They have both agreed to offsite renewables and the current Ordinance does not allow for this option without a waiver. 03 -21 -11 tc Minutes Page 10 of 13 After discussion with staff and reviewing the matrix provided by staff regarding the calculation Council approved the Resolution. Fred Kucker made the motion to approve Resolution No. 19, Series of 2011 approving the waivers from REOP fees from Timberline and Stonebridge Condos. Markey Butler seconded the motion. The motion was approved by a vote of 5 in favor to 0 opposed. Voting Aye: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. Voting Nay: None. Item No. 9 MANAGER'S REPORT Ice Age Discovery Committee Town Manager Russ Forrest reviewed the dates of the planning meeting of the "Tusk Force" and the three community forums. He also reminded the public of the "Snowmastodon: A Tale of Ice Age Discovery" at the Snowmass Conference Center on Tuesday, March 22, 2011. Tickets are on sale at Sundance Liquor and Gifts. EOTC Town Manager Russ Forrest state that the EOTC Meeting for March 24, 2011 has been cancelled and the next meeting will now be July 21, 2011, location to be determined. 2010 Census Town Manager Russ Forrest stated that the 2010 census is in and our population has grown from 1,882 in 2000 to 2,826 in 2010. Item No. 10 AGENDA FOR NEXT TOWN COUNCIL MEETING April 4, 2011 Regular Meeting The Council discussed the upcoming agenda with no changes. Item No. 11 APPROVAL OF MEETING MINUTES FOR February 22, 2011 Council Member Wilkinson and Butler provided some changes to the Clerk for the February 22, 2011 minutes. Fred Kucker made the motion to approve as amend the Minutes for February 22, 2011. Markey Butler seconded the motion. The motion was approved by a vote of 5 in favor to 0 opposed. 03 -21 -11 tc Minutes Page 11 of 13 Voting Aye: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. Voting Nay: None. Item No. 12 COUNCIL COMMENTS /COMMITTEE REPORTS /CALENDARS Building and Planning Fees Council Member Butler stated there has been discussion from community members in regards to the Town's cumbersome process and she is asking that the Town Manager and staff with community members take a look a the current process and try to improve our efficiency in commercial and residential improvements including timelines, checklist and fees. Memorials Mayor Boineau asked what our policy is regarding memorial, Town Manager Russ Forrest state the Council put a halt on benches a while back due to the abundance within the Village. Yoqa Mayor Boineau noted he has had someone approach him in regard to offering free yoga classes to those participating in the dig. She is looking for a place to hold the classes and someone to sponsor. Town Manager will follow up. Car to Go Council Member Wilkinson spoke to the "Cars to Go" program in Aspen, for those who choose to not own cars, and was wondering if we may want to have an extension of this program in Snowmass Village. Town Manager will follow -up on this issue. Meeting in Town Hall Council Member Wilkinson stated that Gail Schwartz and Roger Wilson our House District 61 representative would like to hold a meeting in our Town Hall, Town Manager Russ Forrest stated when contacted we will make logistics work. Addresses Council Member Wilkinson asked if we can provide the U.S. Postal Service with our Parcel Map with addresses for Snowmass Village so we are able to get parcels to our physical addresses. Town Manager will follow -up on this issue. Electric Cars Mayor Boineau would like the group from down valley to come and provide a presentation to Council regarding these cars for future developments. At 8:59 p.m. The Council went into Executive Session 03 -21 -11 tc Minutes Page 12 of 13 Town Council will now meet in Executive Session pursuant to C.R.S. 24- 6- 402(4) and Snowmass Village Municipal Code Section 2- 45(c), to specifically discuss two items: a) Determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, instructing negotiators pursuant to C.R.S. 24- 6- 402(4)(e) and Snowmass Village Municipal Code Section 2- 45(c)(5); and b) Conferences with an attorney for the purposes of receiving legal advice on specific legal questions pursuant to C.R.S. 24- 6- 402(4)(c) and Snowmass Village Municipal Code Section 2- 45(c)(2); Provided, there is an affirmative vote of two thirds of the quorum present at this meeting to hold an Executive Session and for the sole purpose of considering items (a) and (b) above. Provided further, that no adoption of any proposed policy, position, resolution, regulation, or formal action shall occur at this Executive Session Mayor Bill Boineau made the motion to enter closed session John Wilkinson seconded the motion. The motion was approved by a vote of 5 in favor to 0 opposed. Voting Aye: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. Voting Nay: None. AT 9:06 p.m. Fred Kucker made the motion to approve reconvening to the Regular Meeting of the Snowmass Village Town Council of March 21, 2011 Jason Haber seconded the motion. The motion was approved by a vote of 5 in favor to 0 opposed. Voting Aye: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. Voting Nay: None. Item No. 13 ADJOURNMENT At 9:07 p.m. 03 -21 -11 tc Minutes Page 13 of 13 Fred Kucker made the motion to adjourn the Regular Meeting of the Snowmass Village Town Council on Monday, March 21, 2011. Jason Haber seconded the motion. The motion was approved by a vote of 5 in favor to 0 opposed. Voting Aye: Mayor Bill Boineau, John Wilkinson, Markey Butler, Fred Kucker, and Jason Haber. Voting Nay: None. This set of minutes was approved by the Snowmass Village Town Council at their Regular Meeting on Monday, May 2, 2011. Submitted By, Rhonda B. Coxon, CMC. Town Clerk