HomeMy WebLinkAboutMINUTES Town Board 2016-10-11Town of Estes Park, Larimer County, Colorado, October 11, 2016
Minutes of a Regular meeting of the Board of Trustees of the Town of Estes
Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town
of Estes Park on the 11th day of October, 2016.
Present:
Also Present:
Todd Jirsa, Mayor
Wendy Koenig, Mayor Pro Tem
Trustees Bob Holcomb
Patrick Martchink
Ron Norris
Cody Walker
Frank Lancaster, Town Administrator
Travis Machalek, Assistant Town Administrator
Greg White, Town Attorney
Jackie Williamson, Town Clerk
Absent: Trustee Ward Nelson
Mayor Jirsa called the meeting to order at 6:00 p.m. to consider entering into Executive
Session
REQUEST TO ENTER EXECUTIVE SESSION:
It was moved and seconded (Koenig/Norris) to enter Executive Session for a
conference with the Town Attorney for the purposes of receiving legal advice on
specific legal questions per Section 24-6-402(4)(b), C.R.S., and it passed
unanimously.
The Board entered Executive Session at 6:00 p.m. and concluded at 6:45 p.m. The
Board recessed.
Mayor Jirsa called the regular meeting to order at 7:00 p.m. and all desiring to do so,
recited the Pledge of Allegiance.
PUBLIC COMMENTS.
Art Messal/Town citizen questioned the general efficiency of the government's
involvement with local entities such as the Economic Development Council, the Estes
Valley Partners for Commerce, etc. The Town should evaluate the interactions and
value with each group. He commented the Town should evaluate the value of studies
as well.
TRUSTEE COMMENTS.
Trustee Holcomb provided an update on the Transportation Advisory Board (TAB)
meeting in which they discussed recommendations to the Board, including the approval
of the parking garage financing for Phase II, approval of the Loop, and implementation
of paid parking in the downtown parking lots. The next TAB meeting would be held on
October 19, 2016 at noon.
Mayor Pro Tem Koenig thanked the citizens that attended the Waste shed meeting held
at the library. The committee continues to hold meetings at the other Larimer County
communities to receive input and encourage different approaches such as composting
in Fort Collins. The committee recognizes Estes Park has challenges separate and
distinct from the other communities such as wildlife, environment and visitor population.
Trustee Walker commented the Town received five applications for the Town appointed
position on the Local Marketing District Board. The Board has submitted their 2017
Operating Plan for the Town Board's review and approval at the October 25, 2016
meeting.
Board of Trustees — October 11, 2016 — Page 2
Trustee Norris thanked the citizens that took the time to provide input and complete the
citizen survey. The Estes Valley Planning Commission would meet on October 18,
2016 to continue discussions on ADUs.
Mayor Jirsa requested approval from Attorney White to discuss the topic of the
Executive Session with the community and suggested he provide an overview of the
discussion.
Attorney White stated the TABOR amendment of 1992 requires a taxing entity
proposing a tax must estimate the taxes to be collected in the first full year of collection
and further stated any tax revenues collected in excess must be refunded. The City of
Fort Collins recently placed a ballot issue on the November election ballot to request
the revenues collected in excess should be retained by the City and not refunded. The
Town voters passed the 1A sales tax increase in 2014 and exceeded the estimated
revenues of $2 million established in the TABOR notice by $418,000. Later voter
approval was not defined in the amendment and may occur at any time after the issue
of exceedance of the estimate has been determined.
TOWN ADMINISTRATOR REPORT.
Administrator Lancaster stated the Larimer County Health department received a grant
to promote and expand the Communities that Care program throughout the County.
The County has requested a member of the Board to join the advisory Board. Trustee
Holcomb volunteered to be the Board's representative.
1. CONSENT AGENDA:
1. Town Board Minutes dated September 27, 2016 and Town Board Study Session
September 27, 2016.
2. Bills.
3. Committee Minutes.
a. Community Development/Community Services Committee Minutes
dated, September 22, 2016.
4. Estes Valley Board of Adjustment Minutes dated September 13, 2016
(acknowledgement only).
5. Revising Town Board Policy 101 — Board Assignments to remove the
Creative Art District appointment.
It was moved and seconded (Holcomb/Martchink) to approve the Consent
Agenda Items, and it passed unanimously.
2. ACTION ITEMS:
1. TRANSIT FACILITY PARKING STRUCTURE.
Finance Officer Hudson reviewed the RFP issued to fund Phase II of the
parking facility located south of the Visitor Center to establish an additional 202
parking spaces through a lease purchase agreement utilizing the golf course as
collateral. The Town received two proposals by the deadline. After evaluation
of the proposals, Saulsbury Hill Financial was selected as the best option with
a proposed loan of $4.5 million at 2.99% fixed rate for 15 years with an annual
payment of $377,000 and no early payoff penalty. The Town would be
responsible for all fees and costs to perfect the security interest and reimburse
the lender up to $18,000 in direct legal costs should the Town not complete the
loan process. Existing General Fund revenues would be used for the annual
payment through the redirection of the STIP funds of approximately $435,000
dedicated to street and transportation improvements. Postponing the
construction of the final Phase Two could cost the tax payers several million
dollars over the cost to do it now while interest rates are low and construction
Board of Trustees — October 11, 2016 — Page 3
costs are cheaper. Deferral would require another disruption caused by closing
down the parking structure during future construction. The current construction
inflation rate is 4% to 7% annually. Staff estimates the Town would have to
divert the STIP funds of $435,000 for approximately 26 years in order to pay for
Phase II rather than finance the project.
Due to restrictions and limitations in the Special Use Permit from the Bureau of
Reclamation, the parking structure itself was not eligible to be used as
collateral for financing. In researching funding options with lenders, three
critical characteristics guided and narrowed options for selecting collateral,
including sufficient value to cover the amount of the financing, clear title with no
current liens or encumbrances on the asset and the absence of an alternative
use for the asset that would be hindered if encumbered. Upon review of Town
assets, the 18-hole golf course was the only single asset meeting all three
criteria. Placing a lien on the golf course limits the Town's future use of the
property as collateral for other unknown projects. In the event a future Town
Board decides to not budget for the repayment of the loan the golf course
would be forfeited to the lender.
Those speaking against the financing of the project were heard from Bob
Butler/Town citizen and Ted Williams/County citizen. Comments have been
summarized: concern was raised on the use of the golf course as collateral and
the need to have a secure and adequate source of funds to repay the loan;
concerned the community would go in debt for a parking garage; a loss of an
asset such as the golf course would be a disservice to the community; and
during the 1A sales tax election the Town committed the $435,000 would be
used to improve roadways and now the funds are being diverted.
Those speaking in favor of financing the project including Bill Pinkham/Town
citizen, Christy Crosser/Pinewood Springs resident, Tony Schetzle/Town
citizen, Michelle Hiland/Town citizen, Art Messal/Town citizen, Kent
Smith/Town citizen, and Kimberly Campbell/Transportation Advisory Board
Chair. Comments heard have been summarized: the additional Phase would
address a huge shortage of parking in the community and help the Town meet
the needs outlined as the number one issue by guests; by financing the project
now the Town would realize efficiency and effectiveness in completing the
project during one construction phase; no concern utilizing a Town asset, the
golf course, to finance this important project; the project would begin to
address the traffic flow issues with the approval and completion of the Loop
project to meet the Town's strategic goals; the project would support
sustainable tourism which funds the Town; the TAB continue to be supportive
of the financing option to complete both Phase I and Phase II at one time; the
additional parking spaces should provide additional sales tax to pay for the
parking structure; and the interest rates are anticipated to increase by the end
of the year and continue to increase each quarter for the next 2 years,
therefore, the cost of the project would continue to increase if the Town waits to
construct Phase II at a later date.
Trustee Holcomb stated the likelihood the Town would default on the loan
would be fairly small and the property could not be converted to condominiums
without first completing the development process. He would be supportive of a
lease purchase financing agreement utilizing the golf course as collateral.
Trustee Walker commented concern with the rising cost of construction;
however, he would not support the Town incurring debt to complete the project.
Trustee Martchink stated the Town has an adequate funding source and a
consistent funding stream to finance the parking structure. The project would
be vital to the community in addressing the parking needs of Estes Park.
Trustee Norris recognized parking as a key part of the Town's strategic plan
and the completion of the project in one phase would be cheaper, faster and
Board ofTrustees — October 11.2U16—Page 4
better for the community. The return on investment for the community would
be significant. He stated concern with not moving forward and the potential of
the project never being complete ifthe Town does not move forward now.
Mayor Pro Tern Koenig commented the Town has significant deferred
maintenance and has been discussing funding mechanisms to address the
issue. She stated the proposed project and financing option presented would
be fiscally sound and the 1 A funds have eliminated the Town's need to save for
years to complete large road projects such as Dry Gulch. She would be
supportive ofmoving forward.
PWayorJimu stated voters were told the current ST|Pfunds of$435.O0O would
be allocated toward road improvements if the 1A sales tax was approve. He
would not support the use of these funds to pay back the loan for the parking
structure. He further stated concern on creating a lack of voter trust with the
approval to use the funds for o parking structure rather than further street
improvements.
It was moved and seconded (Hn|oomb/Norhn)tm award the financing to
Saulsbury Hill Financial contingent upon development of mutually
acceptable documentation using the golf course or other acceptable
assets as oo||mtmro| with reimbursement of up to $18,000 in legal fees if
the Town Board turns down the final negotiated financing arrangement,
and itpassed with Mayor Jimaand Trustee Walker voting ''Nn^
Walker Parking Design Consultant Change Order for Phase U' Director
W1uhnnon stated the Town contracted with Walker Parking Consultants to
design uparking garage inthe parking lot ufthe Visitor Center in2O13. Since
that time the Public Works department obtained the approval bythe Town and
the Bureau of Reclamation to move the parking garage to the south parking lot
adjacent to the Visitor Center requiring additional services from Walker
Parking Consultants in the amount of $300.000 for new design drawings.
With the approval to move forward with Phase U of the parking stmctuns, staff
requested anadditional change order tocompleted the design ofPhase Uatm
cost of$153.030. |twas moved and seconded (NonioXHo|unmb)huapprove
a Change Order to extend the Walking Parking Consultants design
services contract through Oecennbmr31, 2017 and increase the price to
$1,122.117, contingent upon the terms and conditions described in the
staff memmo, and it passed with the K4ayorJiraa and Trustee Walker voting
2. 2017STRATEGIC PLAN. Administrator Lancaster present theBoard with the
final 2O17strategic plan for adoption. Hostated the Board held mretreat earlier
in the year and several drafts of the document have been reviewed by the
Board. The plan provides obasis for everything the Town staff completes and
should tie back directly hoone ofthe outcome areas outlined inthe plan.
Art Messal/Town citizen commented the Board should use the plan as the
Town's strategy and question how the item on the list fit together, how does it
impact the visitor experience, and stated the plan iemissing uvision.
Kwas moved and seconded (Hokmmb/Nur a)toapprovothn2O1?Stmtm0ic
Plan, and it passed unanimously.
3. FPP& RETIREMENT PLAN OPTION FOR SWORN POLICE OFFICERS.
Director Williamson stated the sworn Police Officers currently have u defined
contribution, 401 (a) pension replacement plan, through ICMA-RC because they
are oowavad by the Statewide Death and Disability Social Security
Supplemental Plan (SVVD&D'SS) through FPP& The passage of Senate Bill
15'028 in 2015 n»quin*n onUUon covered under the SVVD&D'SS to affiliate with
FPPAfor retirement, a Social Security supplemental defined benefit plan, by
Board of Trustees — October 11, 2016 — Page 5
December 31, 2016 in order to maintain the Death and Disability coverage.
The state statute requires a vote of the membership with a 65% approval in
order to establish FPPA retirement. If the vote fails, the sworn Police Officers
would lose their Death and Disability coverage through FPPA and the Police
Officer retirement plan would remain with ICMA. The Officers would continue
to be covered by the Town's standard AD&D policy provided to all Town
employees. In order to maintain parity among the retirement plans for both
sworn Police Officers, PERA covered employees and Management employees
the following has been proposed for the FPPA retirement option: Sworn Police
Officer would continue to contribute a total of 8% into their retirement plans; i.e.
6% into FPPA Statewide Defined Benefit Social Security Supplemental Plan
(SWDB-SS) and 2% into the ICMA-RC defined contribution fund; the Town to
contribute 4% to the FPPA Statewide Defined Benefit Social Security
Supplemental Plan (SWDB-SS), the Town to contribute 8.35% into the ICMA-
RC defined contribution fund; and maintain the SWD&D-SS at 2.7% in 2017
with the cost split 50/50 with the employees. This allows the Town to
contribute more to their ICMA retirement accounts while maintaining the same
contribution levels to all retirement plans.
Sergeant Life stated the sworn Police Officer would be losing a benefit of 2.7%
with the benefit package outlined for FPPA retirement just to bring the Police
retirement in line with the other retirement plans.
Director Williamson stated the Police Officer would have a reduction in the
overall retirement and Death and Disability benefit package; however, a survey
of the other entities in the Front Range demonstrated the Town offers the
richest retirement plan and Death and Disability plan compared to its
competitors. She also reiterated the Town has had a richer plan with the
inclusion of Social Security and the Death and Disability through FPPA. The
law requires a municipality to have Social Security or affiliate with FPPA for
Death and Disability. If the Police Officers vote to stay with ICMA and forego
the Death and Disability coverage with FPPA, they would still be covered by
Social Security and the Town's AD&D plan.s
It was moved and seconded (Holcomb/Koenig) to approve the Fire and
Police Pension Association retirement plan option as outlined and to
make any adjustments needed to the percentages at the time FPPA or
PERA increases or decreases percentages, and it passed with Mayor Pro
Tem Koenig voting "No".
3. REPORTS AND DISCUSSION ITEMS:
1. 2016 CITIZEN SURVEY RESULTS. Public Information Officer Rusch provided
an overview of the scientific results of the survey. The survey was mailed to a
random sampling of 1,500 households within Town limits with 701 households
responding. The overall quality of life and Estes as a place to live continue to
rate high. Key community characteristics included a similar rating for overall
image, a decrease in neighborhood, a decrease in a place to retire, and a
similar rating on overall appearance. A top priority for the community continues
to be the economy with the Town receiving the same ratings as 2014 for a
place to visit, a vibrant downtown, shopping opportunities, and businesses and
services available. Another key issue addressed was the quality of the natural
environment and the importance and positive feature of the community as it
relates to overall environment, air quality, cleanliness and drinking water. The
Town also received high marks as it related to overall quality of services
provided and customer services of the employees.
4. REQUEST TO ENTER EXECUTIVE SESSION:
It was moved and seconded (Koenig/Holcomb) to enter into Executive Session
for the purpose of determining positions relative to matters that may be
subject to negotiations, developing strategy for negotiations, and/or
Board ofTrustees — October 11,2V16—Page O
instructing negotiators regarding the Conference Center per Session 24-6402(4)(e) C.R.S., and it passed unanimously.
-
VVhoneupon Mayor Jirsa adjourned the meeting atQ:0O pm. to enter into Executive
Session.
Mayor Jiroareconvened the meeting tnopen session at012p.m.
Whereupon Mayor Jirsa adjourned the meeting at,gL:42 rn
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