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10-02-02 Town Council MinutesThe Work Session began at 5:45 p.m. COUNCIL MEMBERS PRESENT: PUBLIC PRESENT: SNOWMASS VILLAGE TOWN COUNCIL WORK SESSION SUMMARY WEDNESDAY, OCTOBER 2, 2002 MARKETING TAX BALLOT QUESTION DISCUSSION Mayor T. Michael Manchester, Douglas Mercatoris, Arnold Mordkin, Robert Purvis and Richard Virtue STAFF PRESENT: Mike Segrest, Town Manager; Carey Shanks, Assistant to the Town Manager Jim Hooker, Doug Faurer, Brett Huske, Mary Harris, John Wilkinson, Bill Boineau, Becky Duckworth, Don Schuster, Catherine Lutz and other members of the public interested in Agenda items for this Meeting. Manchester stated this Work Session is to begin a campaign in support of the Marketing Tax ballot question that will be determined by the Snowmass Village electorate at the November 5, 2002 Regular Election. Aids for promoting the Marketing Tax included a flyer that will be mailed and distributed as widely as possible, newspaper advertisements in both the Snowmass Sun and Aspen newspapers, an Open House, faxing the information to all on Snowmass Village Resort Association's (SVRA) fax list, door -to -door campaigning, a postcard boxholder mailing, information provided at the upcoming Candidate Forum sponsored by the Snowmass Sun, distribution of the flyers by supporters available to answer questions at a table set up outside the Post Office for this purpose as well as to encourage voter registration, and word of mouth. Individuals will meet with groups such as the Citizens for Snowmass, Snowmass Rotary Club, the Real Estate community, Condominium Associations, Homeowner's Associations, SVRA Board and other organized constituent groups. Volunteers will contact each business in the Snowmass Center building to explain the Marketing Tax. Mercatoris explained that the Marketing Tax would be incorporated in the Snowmass Sales Tax. The total Sales Tax assessed in Snowmass Village if the voters approve the Marketing Tax, and which would include the Marketing Tax as well as County, State and Town sales taxes, would be 9.9 percent. Manchester encouraged assistance with fundraising, and soliciting contributions, assistance with drafting newspaper advertisements. 10- 02 -02ws Page 2 of 3 Manchester explained that the 2.5- percent Marketing Tax is proposed to be a permanent funding source to be dedicated to marketing and special events, and will place the burden on the entire Town to fund marketing and special events for the benefit of the entire community. The Tax would be collected on a Town -wide basis including any future development, whereas the burden throughout the past and currently is assessed only on those businesses located within SVRA's Civic Assessment area. If the voters approve the Marketing Tax, SVRA has agreed to recind the 3.25 percent Civic Assessment for 5 years. The Tax language includes a $50.00 rebate per permanent resident per year, including both children and adults, and is intended to lessen the burden on permanent full -time Snowmass Village residents. The definition of a "full -time resident" will be determined by Council in the near future, and be based on the number of months per year a person resides in Town. He explained that if all 1,800 -plus residents of Snowmass Village file for the rebate, it would equate to approximately $100,000 out of the $2.5M $5M expected amount of funds received from the Tax. The SVRA has the option of lowering their bed tax by an equivalent amount. Businesses who are currently required to collect Sales Tax would be required to collect the Marketing Tax. The Marketing Board will be made up of five voting members, including one representative from the lodging industry, restaurant industry and retail industry, as well as two at -large members. Representatives for the lodging, restaurant and retail communities will be nominated by each of those communities to serve as their representative and will be appointed by Council. If one or more of the groups cannot agree on a representative, nominations will be presented to Council to make a final decision. Applications from interested citizens will be requested for the two at -large positions and the two members will also be appointed by Council. Terms of Board members will be three- year overlapping terms. Members are required to be full -time residents of the Town. Two people from the same business cannot serve on the Board and members can only be removed from their posts by a super- majority vote of Council under certain criteria. The Board will be a five member voting board and will appoint an Advisory Committee to be utilized by the Marketing Board as they see fit. The number of members and makeup of the Advisory Board will be determined by the Marketing Board members. The Board will present an annual budget to Council for review, as well as a quarterly audit to ensure expenditures are in line with the ballot language. Budget monies for this board can only be spent for marketing, special events, the cost and administration of marketing and special events, administration, and a maximum of 10- percent for capital improvements. Meetings will be noticed and open to the public. The group discussed the job description for the Board members and criteria required to fill the "at- large" seats. Over time, if it is realized that the makeup of the Board needs to be changed, that task can be addressed by Ordinance. 10- 02 -02ws Page 3 of 3 Tasks assigned to the Board will either be conducted by Board Members or by outside contract. The Board will make the determination of the number and type of special events to be held in Snowmass Village, making an effort to increase special events and tourism during the Summer months. Manchester explained the research that went into the determination of the amount of the marketing tax. If it is determined necessary in the future, Council has the ability to eliminate the tax, although any increase in the tax amount would need to be approved by the voters. SVRA has agreed to cooperate and work with the Marketing Board during the transition period. Manchester stated that Town staff has not yet been requested to support the Board. The Board will determine if support will be provided by the Town, the Board Members themselves or by an outside contractor. Council Members have agreed to meet with any constituant groups who would like information regarding the proposed Marketing Tax and Board. The Marketing Tax will go into effect on December 1, 2002. Submitted By, Trudi Worline, Town Clerk