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TC Packet 04-08-2025_____________________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE TOWN CLERK, MIGUEL JAUREGUI CASANUEVA, AT 970-748-4001 OR MJAUREGUI@AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. AVON TOWN COUNCIL MEETING AGENDA TUESDAY, April 8, 2025 MEETING BEGINS AT 5:00 PM Hybrid meeting; in-person at Avon Town Hall, 100 Mikaela Way or virtually through Zoom, Zoom registration is on the header at Avon.org AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 PM 1.CALL TO ORDER AND ROLL CALL 2.APPROVAL OF AGENDA 3.DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Public comments are limited to three (3) minutes. The speaker may be given one (1) additional minute subject to Council approval. 5.CONSENT AGENDA ( 5.1. Approval of March 25, 2025 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 5.2. Action Item: Approval of Intergovernmental Agreement (IGA) Intermountain Transportation Planning Region (Engineering Director Eva Wilson) 5.3. Action Item: Approval of Amendment to CDOT Contract for the Bridge Repair Grant for the West Beaver Creek Boulevard Bridge (Engineering Director Eva Wilson) 6.BUSINESS ITEMS 6.1. Presentation: Parking Survey Results (Marketing & Communications Manager Elizabeth Wood) 6.2. Resolution 25-01: Adopting the 2025 Avon Community Housing Policies (Housing Planner Patti Liermann) 6.3. Action Item: Adopting Form of Price Capped Deed Restriction (Housing Planner Patti Liermann) 6.4. Action Item: Approval of Vail Valley Foundation Early Childhood Education Center Land Lease Agreement (Town Manager Eric Heil) 6.5. PUBLIC HEARING: Resolution 25-09: Budget Amendments (Chief Finance Officer Paul Redmond) 7.WRITTEN REPORTS 7.1. February 27th Upper Eagle Regional Water Authority Summary (Mayor Underwood) 7.2. March 24th Planning & Zoning Commission Abstract (Development Coordinator Emily Block) 7.3. Signed Letters of Support Summary (Chief Administrative Officer Ineke de Jong) 7.4. Quarterly Update on 2025 Department Goals (Town Manager Eric Heil) 8.MAYOR AND COUNCIL COMMENTS & MEETING UPDATES 9.EXECUTIVE SESSION 9.1. For the purpose of: Legal advice pursuant to CRS §24-6-402(4)(b) regarding private parking regulatory authority (Town Attorney Nina Williams) 9.2. For the purpose of: Legal advice pursuant to CRS §24-6-402(4)(b) and determining positions relative to negotiations and instructing negotiators pursuant to CRS §24-6-402(4)(e)(i) regarding potential tax rebate agreement for prospective retailer (Town Manager Eric Heil and Town Attorney Nina Williams) _____________________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG MEETING NOTICES ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND AVON PUBLIC LIBRARY INDIVIDUALS WITH DISABILITIES ARE ENCOURAGED TO PARTICIPATE IN ALL PUBLIC MEETINGS SPONSORED BY THE TOWN OF AVON. IF YOU REQUIRE A DISABILITY ACCOMMODATION, PLEASE CONTACT THE TOWN CLERK, MIGUEL JAUREGUI CASANUEVA, AT 970-748-4001 OR MJAUREGUI@AVON.ORG WITH YOUR REQUEST. REQUESTS SHOULD BE MADE AS SOON AS POSSIBLE BUT NO LATER THAN 72 HOURS BEFORE THE SCHEDULED PUBLIC EVENT. 10. ADJOURN Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments during any agenda item and may limit public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. The timer for public comment shall begin promptly after the speaker states their name and place of residence. Article VIII. Public Comments, Avon Town Council Simplified Rules of Order, Amended and Readopted by Resolution No. 24-17. AVON REGULAR MEETING MINUTES TUESDAY MARCH 25, 2025 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 1 1. CALL TO ORDER AND ROLL CALL The meeting was hosted in a hybrid format, in-person at Avon Town Hall and virtually via Zoom.us. Mayor Tamra N. Underwood called the March 25, 2025, Council Regular Meeting to order at 5:00 p.m. A roll call was taken, and Councilors present in person were Chico Thuon, Gary Brooks, Lindsay Hardy, Kevin Hyatt, Mayor Pro Tem Richard Carroll, and Mayor Tamra N. Underwood. Councilor Ruth Stanley was present virtually. They were joined in person by Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, Town Attorney Nina P. Williams, Town Clerk Miguel Jauregui Casanueva, Deputy Town Clerk Brenda Torres, Chief Financial Officer Paul Redmond, Rec Director Michael Labagh, Community Development Director Matt Pielsticker, Planning Manager Jena Skinner, Housing Planner Patti Liermann, Planner II Max Morgan, and Avon Police Chief Greg Daly. 2. APPROVAL OF AGENDA Video Start Time: 00:00:56 Mayor Underwood initiated the meeting with the Agenda approval process. Mayo Pro Tem Carroll requested that Business Item 5.2. be removed from the Consent Agenda and tabled to a later date because the bylaws require additional revisions. Mayor Pro Tem Carroll motioned to approve the Agenda, as amended. Councilor Thuon seconded the motion. The motion carried unanimously with a 7-0 vote. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:02:02 Mayor Underwood asked if there were any conflicts of interest related to the Agenda, and no conflicts of interest were disclosed. 4. PUBLIC COMMENT Video Start Time: 00:02:18 Mayor Underwood explained that public comment can be made by participating in the meeting in person, via zoom’s video/audio, via telephone, or via email. She added that the public comment section is intended for items not listed in the Agenda, and participation by members of the public will be limited to 3 minutes, with an additional minute that may be granted at Council’s discretion. She added that members of the public should address Council directly and should not expect a response as it is only intended as an opportunity and space for the public to provide input to Council. She asked if there was any public comment from those present in the room or virtually and requested that they spell their name and mention the neighborhood they reside in upon taking the podium. Alex Sellers, resident of Avon, took the podium in person to speak of Ordinance 25-02 related to camping, which he stated could criminalize individuals experiencing extreme hardship. He asked for Council to consider the establishment of a shelter in Avon to be used as temporary refuge of the unhoused. Tim McMahon, resident of Avon, took the podium virtually to speak of Ordinance 25-02 related to camping, and stated he considers the limit of 2 nights of camping on private property would disallow children to camp in their AVON REGULAR MEETING MINUTES TUESDAY MARCH 25, 2025 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 2 own backyards over memorial day weekend and could cause selective enforcement by Avon Police with a bias toward the unhoused. He asked Council to suspend the enforcement of the camping ordinance until a new Ordinance can be adopted which better regulates camping in Avon while taking into consideration the will of Avon’s stakeholders. No other public comment was received in person nor virtually. 5. CONSENT AGENDA Video Start Time: 00:09:15 Mayor Underwood introduced the approval of the Consent Agenda to include the following: 5.1 Approval of March 11, 2025 Regular Council Meeting Minutes (Town Clerk Miguel Jauregui Casanueva) 5.2 Action Item: Adoption of Intermountain Transportation Planning Region (IMTPR) Bylaws (Engineering Director Eva Wilson) Councilor Stanley motioned to approve the Consent Agenda. Councilor Hardy seconded the motion. The motion carried unanimously with a 7-0 vote. 6. BUSINESS ITEMS 6.1. Presentation: Regional Housing Needs Assessment (Housing Planner Patti Liermann) Video Start Time: 00:10:05 Housing Planner Patti Liermann delivered a presentation related to the Regional Housing Needs Assessment, joined at the podium by Rachel Shindman with Economic & Planning Systems, Inc. (EPSYS). Town Manager Eric Heil highlighted the assessment is not a written report from the Town of Avon’s staff that would require an adoption by Avon Resolution, and presents a good opportunity for Council to ask questions from EPSYS and Ms. Shindman, who fielded several questions from Councilors. Council directed staff to come back and present an updated version of the Town of Avon Community Housing Action Plan based on new data from the assessment. Mayor Underwood opened the floor to public comment, and no public comment was received in person nor virtually. As this was discussed as a presentation to Council, no motion was requested, and staff received feedback and direction to continue their work as indicated. 6.2. Swearing In & Badge Pinning of Commander Ken Dammen, Sergeant Brad Stamp, Code Enforcement Officer Malachi Braughler and Code Enforcement Officer Tyler Niesman (Police Chief Greg Daly) Video Start Time: 00:57:10 Police Chief Greg Daly led the Swearing In & Badge Pinning ceremony of Commander Ken Dammen, Sergeant Brad Stamp, and Code Enforcement Officers Malachi Braughler and Tyler Niesman within the Avon Police Department. He was assisted by Deputy Town Manager Brenda Torres who swore in the Officers and Council took a picture with them to memorialize the Ceremony. As this was a swearing-in ceremony, no public comment was received, no motion was requested, and no feedback nor direction was given to staff. AVON REGULAR MEETING MINUTES TUESDAY MARCH 25, 2025 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 3 6.3. (Police Chief Greg Daly) Video Start Time: 01:06:55 Police Chief Greg Daly led the Avon Police Department Chiefs Community Partnership Awards for the 2024 Shop with a Cop. The Avon Police Department recognized the following individuals and organizations for their continued support and significant contributions: Brian Mingham and Family, Town of Avon Transit, Town of Avon Recreation Department, Town of Avon Finance Department, Juan Tapia, Patty Peterson and her dedicated volunteer gift wrappers, Vail Valley Cares, Holy Cross Energy, P Furniture, Village Warehouse Wine and Spirits, Avon Liquors, Cris and Paul Wade, Margaret Martinez, Helen and David Burton, Joseph Efinton, and Carole Schragen, and Ein Prosit’s Brian Nolan and Jake Frissel. The Avon Police Department also extended a special acknowledgment to the following organizations for their donations, time, and support: Eagle River Fire Engine 7 Company, Vail Valley Salvation Army, Foods of Vail, Starbucks, Avon Elementary School, Eagle County School District, and Vail Honey Wagon. As this was an award ceremony, no public comment was received, no motion was requested, and no feedback nor direction was given to staff. 6.4. Work Session: Draft Res. 25-01 and Community Housing Policies (Housing Planner Patti Liermann) Video Start Time: 01:17:55 Housing Planner Patti Liermann led the work session related to the review of the draft of Resolution 25-01 and the Community Housing Policies. Mayor Underwood pointed out that calling it a price-capped or resident-occupied deed-restriction is confusing and should be renamed on every page, which did not receive more support from her fellow Councilors. She asked that the Employee Housing Opportunity Program (EHOP) be renamed to Municipal EHOP or MEHOP, which received support from other Councilors. Mayor Pro Tem Carroll stated that ownership of other real estate after initial qualification and occupancy should be allowed, which received support from other Councilors. The ability to transfer to heirs that meet or establish eligibility received support from Council, adding they have a year to qualify from the date of death of the homeowner. Council did not support the ability to Sell to heirs. Council did not give specific allowance for the ability to hold deed-restricted property in a trust for estate planning purposes, or under a Medicaid asset protection trust, and asked staff for additional research and information on trusts. Lottery entries with an allowance for extra entries for duration did not receive support from Council, at the recommendation of Town Manager Eric Heil who suggested it should be a minimum of 4 years to enter the lottery. Mayor Underwood opened the floor to public comment, and former Mayor Amy Phillips, resident of Avon, took the podium in person to add remarks to a prior email she sent to Council on this topic. She thanked staff for their hard work and noted that short-term rental regulations have helped curb housing shortages. She wondered if Council should consider if an appeal to Council should be included in the updated regulations. Town Manager Heil added that he believes that appeals should be addressed at an administrator level. Mayor Underwood asked AVON REGULAR MEETING MINUTES TUESDAY MARCH 25, 2025 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 4 that Chapter 8 and 9 get reviewed to ensure that they are up to date on enforcement and appeals processes. She also asked that sole discretion of the administrator language be stricken from the policies. Council also discussed each of Ms. Phillips’s comments and gave direction to staff on each topic. No other public comment was received in person nor virtually. As this was discussed as a work session, no motion was requested, and staff received feedback and direction to continue their work as indicated. 6.5. Work Session: Main Street Mall Conceptual Design Guidance (Planner II Max Morgan) Video Start Time: 02:43:25 Planner II Max Morgan led the work session related to the Main Street Mall Conceptual Design Guidance. Mayor Underwood opened the floor to public comment and Brian Sipes, resident of Avon and member of the Planning and Zoning Commission (PZC) took the podium in person to state that PZC members favor Option 2 which should not be characterized as the lesser of two evils and is instead the preferred option they recommend. Elizabeth Waters, resident of Avon, transmitted a public comment by text message to Planner II Morgan in support of Option 2, which he read into the record. No other public comment was received in person nor virtually. Council gave unanimous direction to staff in support of Option 2, with additional comments to tailor it. As this was a work session, no motion was requested, and staff received feedback and direction to continue their work. 7. WRITTEN REPORTS 7.1. March 10th Planning & Zoning Commission Abstract (Development Coordinator Emily Block) 7.2. March 11th Health & Rec Minutes (General Government Fellow Arnell Wade) 7.3. Monthly Financials (Senior Accountant Dean Stockdale) 7.4. Internal Events Purchasing Policy (Sustainability Manager Charlotte Lin) 7.5. Recycling Center Re-opening (Sustainability Manager Charlotte Lin) ** Indicates topic will be discussed at future agenda’s 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 03:26:40 Marketing and Communications Manager Liz Wood presented the 2025 State of the Town Video for Council. Mayor Pro Tem Carroll reminded the public that CORE Transit went cash free on March 17, 2025. Mayor Underwood noted that the recycling center re-opening ceremony will take place May 21, 2025, as related to Written Report 7.5. She also invited the public to attend the 3rd annual Net Zero Building Expo taking place on Friday, April 18, 2025, starting at 1:00 p.m. at the Westin Riverfront in Avon and referenced that registration is available at avon.org/buildingexpo. AVON REGULAR MEETING MINUTES TUESDAY MARCH 25, 2025 HYBRID MEETING; IN-PERSON AT AVON TOWN HALL AND VIRTUALLY THROUGH ZOOM 5 9. EXECUTIVE SESSION Video Start Time: 03:36:30 9.1. Mayor Underwood requested a motion from her fellow councilors to proceed into Executive Session. Councilor Hardy motioned to retire into Executive Session for the purpose of purchase of real property pursuant to CRS Section 24-6-402(4)(a); and for the purpose of determining positions relative to matters that may be subject to negotiation, developing strategy for negotiations, and/or instructing negotiators under C.R.S. Section 24-6-402(4)(e); concerning the following specific matters: State Land Board Property (Town Attorney Nina Williams and Town Manager Eric Heil). Mayor Pro Tem Carroll seconded the motion. The motion carried unanimously with a 7-0 vote. The time was 8:38 p.m. At the roll call, all members of Council were present. Also present were Town Manager Eric Heil, Deputy Town Manager Patty McKenny, Chief Administrative Officer Ineke de Jong, Town Attorney Nina Williams, and Community Development Director Matt Pielsticker. The Executive Session commenced at 8:47 p.m. The Executive Session adjourned at 9:06 p.m. 10. ADJOURN There being no further business before Council, Mayor Underwood moved to adjourn the regular meeting. The time was 9:06 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: ________________________________ Miguel Jauregui Casanueva, Town Clerk APPROVED: Mayor Underwood ___________________________________ Rich Carroll Ruth Stanley Lindsay Hardy Chico Thuon Kevin Hyatt Gary Brooks 970-390-2014 ewilson@avon.org TO: Honorable Mayor Underwood and Council members FROM: Eva Wilson, Engineering Director RE: IGA – Intermountain Transportation Planning Region DATE: April 2, 2025 SUMMARY: The attached Intergovernmental Agreement sets forth the participation agreements (bylaws) with the Intermountain Transportation Planning Region (IMTPR). The Town participates in the CDOT planning process as a member of IMTPR. IMTPR plays an important role in the CDOT’s planning and funding process and is a collaborative of local jurisdictions from Summit, Eagle, Garfield, Lake, and Pitkin counties that work in conjunction with CDOT to develop a regional transportation plan to be included as part of CDOT’s statewide transportation plan. As a voting member, the Town of Avon advocates for the Town, Eagle Valley, and other regional transportation priorities. BACKGROUND: IMTPR is a collaborative of local jurisdictions (Summit, Eagle, Garfield, Lake, and Pitkin counties) that work in conjunction with CDOT to develop a regional transportation plan to be included as part of CDOT’s statewide transportation plan. IMTPR works to identify regional plan recommendations and priority projects that include transportation services, facilities, multimodal alternatives, safety, and fiscal needs that best align with available funds from CDOT. The IMTPR participation agreements (bylaws) provide the framework for how decisions are made collaboratively. • Responsible, in cooperation with the state and other governmental agencies, for carrying out necessary continuing, cooperative, and comprehensive transportation planning for the Intermountain Transportation Planning Region; for creating, amending, and updating Regional Transportation Plans; for recommending the priority for any transportation improvements planned for the region • Keep records of its resolutions, transactions, contractual undertakings, findings, and determinations, which shall be public records. • Distribution of state or federal funds. IMTPR supported the US6 Safety and Mobility Project (Pedestrian Crossings) with $3M from the Multimodal Transportation and Mitigation Options Fund (MMOF grant). FINANCIAL CONSIDERATIONS: No financial impacts RECOMMENDATION: I recommend Council approve the IGA between the Intermountain Transportation Planning Region and the Town of Avon. PROPOSED MOTION: “I move to approve the Intergovernmental Agreement between the Intermountain Transportation Planning Region and the Town of Avon.” Thank you, Eva ATTACHMENT A: Intergovernmental Agreement ATTACHMENT B: IMTPR – Participation Agreements – Bylaws INTERGOVERNMENTAL AGREEMENT FOR A REGIONAL PLANNING COMMISSION FOR TRANSPORTATION PLANNING Intermountain Regional Planning Commission (IMRPC), representing the Intermountain Transportation Planning Region (IMTPR) THIS AGREEMENT made this eighteenth day of April 2025 by and among the following local governments in the Intermountain Transportation Planning Region: Eagle County Town of Avon Town of Eagle Town of Gypsum Town of Minturn Town of Red Cliff Town of Vail Garfield County Town of Carbondale City of Glenwood Springs Town of New Castle Town of Parachute City of Rifle Town of Silt Lake County City of Leadville Pitkin County City of Aspen Town of Basalt Town of Snowmass Village Summit County Town of Blue River Town of Breckenridge Town of Dillon Town of Frisco Town of Keystone Town of Montezuma Town of Silverthorne CORE Transit Roaring Fork Transportation Authority (RFTA) Participation in this agreement by each aforementioned party is made only upon execution of a Certificate of Participation. This Agreement is thereby executed in multiple Certificates of Participation, each of which shall constitute an original, but all of which, taken together, shall constitute the same document. Attachment A WHEREAS, the parties to this Agreement have the authority pursuant to Article XIV, Section 18 of the Colorado Constitution and Section 29-1-201, et seq., Colorado Revised Statutes, to enter into intergovernmental agreements for the purpose of providing any service or performing any function which they can perform individually, and; WHEREAS, Section 43-1-1101 C.R.S. recognizes Regional Planning Commissions as the proper forum for transportation planning, and; WHEREAS, Section 43-1-1102(5) C.R.S. requires that Regional Planning Commissions formed for the purpose of transportation planning must be formed pursuant to Section 30-28-105 C.R.S., and; WHEREAS, the parties to this Agreement desire to cooperate in developing and maintaining a long range Regional Transportation Plan, the purpose of which is to identify the mobility needs of the Intermountain Transportation Planning Region, and prepare a plan for addressing the needs, and; WHEREAS, Section 43-1-1103 C.R.S. requires that any Regional Planning Commission formed for the purpose of transportation planning is responsible for regional transportation planning for said region, and; WHEREAS, the Intermountain Transportation Planning Region, consisting of the areas within the counties of Eagle, Garfield, Lake, Pitkin, and Summit was designated in the Rules Governing Statewide Transportation Planning Process and Transportation Planning Regions (2 CCR 601-22) as adopted by the Transportation Commission of Colorado and effective April 18, 2025, and; WHEREAS, the parties to this Agreement are governing bodies or officials having charge of public improvements within their jurisdictions in the Intermountain Transportation Planning Region. NOW, THEREFORE, the parties hereby mutually agree as follows: 1. Designation of Regional Planning Commission. The parties to this Agreement shall have one representative each on the Regional Planning Commission for the Intermountain Transportation Planning Region. 2. Responsibilities of Regional Planning Commission. The Regional Planning Commission shall be responsible, in cooperation with the state and other governmental agencies, for carrying out necessary continuing, cooperative, and comprehensive transportation planning for the Intermountain Transportation Planning Region; for creating, amending, and updating Regional Transportation Plans pursuant to all applicable federal and state laws and rules or regulations including public participation provisions; for recommending the priority for any transportation improvements planned for the region; for abiding by the Regional Planning Commission Bylaws and for participating in the State Transportation Improvement Program development process. The Regional Planning Commission shall keep records of its resolutions, transactions, contractual undertakings, findings, and determinations, which shall be public records. 3. Chairperson and Officers. The Regional Planning Commission shall elect its Chairperson and Vice Chairperson, whose terms shall be two years, with eligibility for reelection. The Chairperson, or the Vice Chairperson, shall be the representative of the Intermountain Transportation Planning Region on the State Transportation Advisory Committee (STAC). 4. Contracting. The Regional Planning Commission may, with the consent of the parties to this Agreement, contract the services of other eligible individuals or entities to carry out all or any portion of the responsibilities assumed by the Regional Planning Commission under this Agreement. 5. Distribution of state or federal funds. The Regional Planning Commission may, through contracts or Memoranda of Agreement, receive and expend state or federal funds designated for regional transportation planning. 6. Meetings must be held at least quarterly and shall be open to the public. Notice of the meeting shall be provided to its members and Contact List and posted on the TPR website no less than one week prior to the meeting. If the meeting provides a virtual option, the meeting link will be included in the public notice. 7. Quorum and Voting. Each member is entitled to one vote, either in person or via email. A quorum is required and shall be as determined by the Bylaws of the Commission. 8. Meeting Minutes and Agendas. The Commission is responsible for recording minutes of its meetings and posting them publicly on its website. The Commission’s Administrator and Chairperson are responsible for creating the meeting agenda. The meeting agenda shall be posted on the Commission’s website and distributed to members and interested parties on its TPR Contact List. 9. Terms of this Agreement. This Agreement shall remain in full force and effect for so long as the parties to this Agreement consider necessary to complete and maintain Regional Transportation Plans for the Intermountain Transportation Planning Region and for periodic updates or amendments as may be required. Any party to this Agreement may, however, terminate its participation in this Agreement 60 days after providing written notice of such termination to the other parties of this Agreement. This Agreement may be terminated at any time by agreement of all parties to this Agreement unless a grant contract is in effect with the State. In this case, the State must approve such termination and arrangements for completing the project. 10. Modification and Changes. The terms of this Agreement may be modified at any time by agreement of all parties to this Agreement. CERTIFICATE OF PARTICIPATION IN THE INTERGOVERNMENTAL AGREEMENT FOR A REGIONAL PLANNING COMMISSION FOR TRANSPORTATION PLANNING Intermountain Transportation Planning Region (IMTPR) THIS is to certify that the Town of Avon has agreed to participate in this Intergovernmental Agreement for the Intermountain Regional Planning Commission. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day first written above on page 1. Tamra Nottingham Underwood, Mayor Town of Avon ATTEST: Date: Miguel Jauregui Casanueva, Town Clerk Seal: Date: Intermountain Regional Planning Commission (RPC), representing the Intermountain Transportation Planning Region (IMTPR) Regional Planning Commission Bylaws April 18, 2025 Article I. Name The name of this organization shall be the Intermountain Regional Planning Commission (IMRPC). Article II. Organization The Commission shall be governed by the Intermountain Regional Planning Commission (IMRPC) Intergovernmental Agreement (IGA), the policies and guidelines set forth in these bylaws, and all applicable state and federal laws and regulations. The area served by the Commission is the Intermountain Transportation Planning Region (IMTPR), as designated by the Colorado Department of Transportation (CDOT) in Planning Rules (2 CCR 601-22). The Intermountain Transportation Planning Region (IMTPR) is the geographic area, which is governed by the Intermountain Regional Planning Council (IMRPC). The IMRPC is made up of various elected/appointed officials and/or staff from each city, town, county, and statutory Regional Transit Authority within the IMTPR. Article III. Purpose The Commission shall promote regional transportation planning, cooperation, and coordination among federal and state government, local or special-purpose governments, and transportation stakeholders within the IMTPR, and will: A. Provide a forum to identify, study, and recommend solutions to IMTPR transportation concerns. B. Develop and formalize policies involving IMTPR transportation planning and coordination of federal and state funding assistance. C. Serve as a vehicle for the collection and exchange of transportation information and expertise. D. Develop and approve IMTPR transportation plans in accordance with relevant federal, state, and local laws, regulations, and policies. E. Encourage action and implementation of regional plans and policies for transportation improvement by local, state, and federal agencies. F. Maintain an IMTPR Contact List that includes IMRPC members, all general and relevant special- purpose local governments, and private or public organizations and individuals with an expressed or implied stakeholder interest in transportation planning. Article IV. Membership A. The members of the Commission shall include the Colorado Department of Transportation (as a Attachment B nonvoting member), each statutory Regional Transit Authority within the IMTPR, and those county and municipal governmental entities located within the IMTPR boundaries that have completed an IGA Certificate of Participation, which include: a. Town b. City c. County B. The Commission may impose conditions upon such membership as it deems necessary to preserve the structure and integrity of the Commission, including, but not limited to requiring financial support for its continued operation. C. Any member may withdraw from the Commission upon giving not less than 60 days’ advance written notice. Such notice shall be delivered to the Chair of the Commission. No such withdrawal shall serve to excuse the payment of any sums or performance of any obligations agreed to be paid or performed prior to the giving of such notice, or the payment of any sums for services performed during the 60-day period of notice. Article V. Representation A. The business of the Commission shall be conducted by representatives of its members, determined as follows: a. One (1) representative or a designated alternate, respectively, of each county and each municipal member, and each statutory Regional Transit Authority within the IMTPR. The Governing body of any member organization may appoint, at their discretion, voting and alternate voting representatives to the Commission. Members shall appoint representatives from their governing bodies or from staff. b. The Regional Transportation Director of CDOT Engineering Region 3, or their designee (a nonvoting member). c. Voting memberships may be granted to state or federal entities at the discretion of the Commission. Such membership shall not be conditioned upon contribution to the Commission and may be terminated by the Commission at its discretion. B. Non-voting participation may be granted to any public or private entity involved in transportation [or air quality] with conditions for such participation to be determined by the Commission. The Commission may terminate such participation at its discretion. C. Each representative serving on the Commission shall serve at the direction of the entity the member represents. Vacancies occurring on the Commission shall be filled in the same manner as is provided for in the original designations. Article VI. Officers A. The officers of the Commission shall consist of a Chair and a Vice Chair. B. Each officer shall serve a term of two years. Nominations and elections shall be held at the first meeting of the calendar year on even years. There shall be no terms limits. C. Vacancies in any office shall be filled by a regular vote of the Commission. D. The duties of the officers shall be as follows: a. The Chair shall preside over all meetings of the Commission. b. The Vice Chair shall serve in the absence of the Chair and shall assist the Chair and perform such other duties as may be assigned by the Commission. c. The Chair will represent the Commission on the Statewide Transportation Advisory Committee (STAC) to review regional and statewide transportation plans, amendments, and updates, and to advise CDOT on the needs of transportation systems in Colorado. The Commission shall annually designate the Vice Chair to represent the Commission in the event the Chair cannot attend a STAC meeting. Article VII. Meetings, Voting, and Quorum A. The Commission shall meet on at least a quarterly basis, at a time and place set forth in the minutes and posted on the IMTPR website, in accordance with The Colorado Open Records Act, (CORA) C.R.S. § 24-72-201 to 206. B. The Chair may call a special meeting outside of the regular meeting schedule with 72 hours’ notice provided to the Commission and the public. C. All meetings of the Commission and its committees are open to the public. The public is welcome at meetings and may express their opinions at such times as designated by the agenda or when recognized by the Chair. All meetings are subject to the Colorado Open Records Act, (CORA) C.R.S. § 24-72-201 to 206. D. Each Commission member jurisdiction shall carry one (1) vote, either in person or virtually. E. 50 percent plus one voting member of the IMRPC membership must be present to constitute a quorum to conduct official business. No proxies are allowed. F. In a situation where an IMRPC decision is desired on a letter of support, convening of a special meeting, and/or items of a similar action, the decision-making process may be conducted through an email among all voting members determine if there is any opposition to the proposed direction. If there is opposition, the issue must be brought to an advertised meeting for formal consideration. If no opposition by the Commission is communicated within 2 business days, the proposed direction will be deemed approved. Article VII. Committees The Commission may establish working committees as necessary and shall provide for the appointment of the membership of said memberships. Article IX. Administration and Finance The IMTPR Administrator shall provide administrative support for the Commission’s business and its duties as Administrator are as outlined in an MOA executed by the Commission Chair. The Chair and the Commission Administrator shall be responsible for making meeting agendas and meeting minutes available to the public by posting them on the Commission website and making them available to CDOT for posting on CDOT’s planning website. The agenda should include a set time to receive public comments. Any public comments made will be recorded and posted on the IMTPR website. Article X. Conflicts of Interest Whenever a member has cause to believe that a matter to be voted upon would involve the member in a conflict of interest, the member shall announce the conflict of interest and abstain from voting on such matter. Article XI. Amendment These Bylaws may be amended by an affirmative vote of a two-thirds majority of the representatives present and vote according to the vote system described in Article V at any regular meeting of the Commission, provided at least 30 days’ written notice of the proposed amendment has been provided to the members. 970-390-2014 ewilson@avon.org TO: Honorable Mayor Underwood and Council members FROM: Eva Wilson, Engineering Director RE: CDOT IGA Amendment – West Beavercreek Blvd Bridge Repair DATE: April 3, 2025 SUMMARY: This report requests Council approval of the CDOT Intergovernmental Agreement (IGA) Amendment for the West Beavercreek Blvd Bridge Repair project. The attached IGA Amendment adds additional grant funds for the Project. In 2023, the Town of Avon was awarded $348,397 for the rehabilitation of the West Beavercreek Blvd Bridge. During the design process, additional repair work was identified, and the grant award was increased to $ $895,302. The IGA Amendment outlines the funding provisions and terms for distributing the funds. BACKGROUND: The CDOT Off-System Bridge Program funds major structure replacement or major rehabilitation on Poor or Fair off-system structures as selected by the Special Highway Committee. Selected projects require a minimum 20% match. In 2022, the Town of Avon was awarded $348,397 for the rehabilitation of the West Beavercreek Blvd Bridge. During the design process, additional repair work was identified, and the grant award was increased to $ $895,302. Project scope includes bridge deck pavement replacement, light pole repairs, structural support repairs, bridge approach railing replacement, pedestrian railing replacement, and drainage improvements. The project is at 50% designed and scheduled for construction in 2026. FINANCIAL CONSIDERATIONS: The total current project cost is estimated at $900,000. The approved Capital Improvement Program (CIP) amount for the Project is $772,000. Project funding adjustments will be made after final design. CDOT Grant: $895,302 Local Match Required: $223,826 Total Funding Available: $1,119,128 RECOMMENDATION: I recommend Council approve the Intergovernmental Agreement Amendment between the Colorado Department of Transportation and the Town of Avon for the West Beavercreek Blvd Bridge Repair Project. PROPOSED MOTION: “I move to approve the Intergovernmental Agreement Amendment between the Colorado Department of Transportation and the Town of Avon for the West Beavercreek Blvd Bridge Repair Project.” Thank you, Eva ATTACHMENT A: 2025 Intergovernmental Agreement Amendment ATTACHMENT B: 2024 Original Intergovernmental Agreement OLA #: 331003224 Routing #: 24-HA3-XC-00247-M0001 Document Builder Generated Rev. 12/09/2016 Page 1 of 2 STATE OF COLORADO AMENDMENT Amendment #: 1 Project #: BRO M058-005 (25978) SIGNATURE AND COVER PAGE State Agency Department of Transportation Amendment Routing Number 24-HA3-XC-00247-M0001 Local Agency TOWN OF AVON Original Agreement Routing Number 24-HA3-XC-00247 Agreement Maximum Amount $1,119,128.00 Agreement Performance Beginning Date March 26, 2024 Initial Agreement expiration date October 23, 2033 THE PARTIES HERETO HAVE EXECUTED THIS AMENDMENT Each person signing this Amendment represents and warrants that he or she is duly authorized to execute this Amendment and to bind the Party authorizing his or her signature. STATE OF COLORADO Jared S. Polis, Governor Department of Transportation Shoshana M. Lew, Executive Director ___________________________________________ Keith Stefanik, P.E., Chief Engineer Date: _________________________ LOCAL AGENCY TOWN OF AVON By:________________________________________________ *Signature Name:______________________________________________ (Print Name) Title:_______________________________________________ (Print Title) Date:_______________________________________________ SECOND LOCAL AGENCY SIGNATURE, IF NEEDED TOWN OF AVON By:________________________________________________ *Signature Name:______________________________________________ (Print Name) Title:_______________________________________________ (Print Title) Date:_______________________________________________ In accordance with §24-30-202 C.R.S., this Amendment is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD By:___________________________________________ Department of Transportation Amendment Effective Date:_____________________ Docusign Envelope ID: 3ADBF3B3-D1CA-49C5-AA32-C82E6EA67DAD Attachment A OLA #: 331003224 Routing #: 24-HA3-XC-00247-M0001 Document Builder Generated Rev. 12/09/2016 Page 2 of 2 1) PARTIES This Amendment (the “Amendment”) to the Original Agreement shown on the Signature and Cover Page for this Amendment (the “Agreement”) is entered into by and between the Local Agency and the State. 2) TERMINOLOGY Except as specifically modified by this Amendment, all terms used in this Amendment that are defined in the Agreement shall be construed and interpreted in accordance with the Agreement. 3) EFFECTIVE DATE AND ENFORCEABILITY A. Amendment Effective Date This Amendment shall not be valid or enforceable until the Amendment Effective Date shown on the Signature and Cover Page for this Amendment. The State shall not be bound by any provision of this Amendment before that Amendment Effective Date, and shall have no obligation to pay the Local Agency for any Work performed or expense incurred under this Amendment either before or after the Amendment term shown in §3.B of this Amendment B. Amendment Term The Parties’ respective performances under this Amendment and the changes to the Agreement contained herein shall commence on the Amendment Effective Date shown on the Signature and Cover Page for this Amendment and shall terminate on the termination of the Agreement. 4) PURPOSE This Agreement was created to provide funds for West Beaver Creek Blvd. Bridge rehabilitation. The Parties now wish to increase the maximum amount available for this project. 5) MODIFICATIONS This Amendment increases the maximum amount of this project from $435,496.00 by $683,632.00 to $1,119,128.00. A new Exhibit C-1 is made part of the original Agreement and replaces Exhibit C. 6) LIMITS OF EFFECT This Amendment is incorporated by reference into the Agreement, and the Agreement and all prior amendments or other modifications to the Agreement, if any, remain in full force and effect except as specifically modified in this Amendment. Except for the Special Provisions contained in the Agreement, in the event of any conflict, inconsistency, variance, or contradiction between the provisions of this Amendment and any of the provisions of the Agreement or any prior modification to the Agreement, the provisions of this Amendment shall in all respects supersede, govern, and control. The provisions of this Amendment shall only supersede, govern, and control over the Special Provisions contained in the Agreement to the extent that this Amendment specifically modifies those Special Provisions. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK Docusign Envelope ID: 3ADBF3B3-D1CA-49C5-AA32-C82E6EA67DAD Fed $ LA Work Exhibit C-1 - Page 1 of 3 EXHIBIT C-1 - FUNDING PROVISIONS Town of Avon BRO M058-005 (25978) A. Cost of Work Estimate The Town of Avon has estimated the total cost of the Work to be $1,119,128.00, which is to be funded as follows: 1. FUNDING a. Federal Funds (80% BRO Award) $895,302.00 b. Local Agency Funds (20% BRO Award) $223,826.00 ______________________________________________________________________ TOTAL FUNDS ALL SOURCES $1,119,128.00 ______________________________________________________________________ 2. OMB UNIFORM GUIDANCE a. Federal Award Identification Number (FAIN): TBD b. Name of Federal Awarding Agency: FHWA c. Local Agency Unique Entity Identifier R9Q7L4C1QKK5 d. Assistance Listing # Highway Planning and Construction ALN 20.205 e. Is the Award for R&D? No f. Indirect Cost Rate (if applicable) N/A g. Amount of Federal Funds Obligated by this Action: $0.00 h. Amount of Federal Funds Obligated to Date (including this Action): $0.00 ______________________________________________________________________ 3. ESTIMATED PAYMENT TO LOCAL AGENCY a. Federal Funds Budgeted $895,302.00 b. Less Estimated Federal Share of CDOT-Incurred Costs $0.00 ______________________________________________________________________ TOTAL ESTIMATED PAYMENT TO LOCAL AGENCY 80% $895,302.00 TOTAL ESTIMATED FUNDING BY LOCAL AGENCY 20% $223,826.00 TOTAL PROJECT ESTIMATED FUNDING 100.00% $1,119,128.00 ______________________________________________________________________ 4. FOR CDOT ENCUMBRANCE PURPOSES a. Total Encumbrance Amount (Federal funds + Local Agency funds) $1,119,128.00 b. Less ROW Acquisition 3111 and/or ROW Relocation 3109 $0.00 ______________________________________________________________________ NET TO BE ENCUMBERED BY CDOT IS AS FOLLOWS $1,119,128.00 ______________________________________________________________________ Note: No funds are currently available. Additional funds will become available after execution of an Option letter (Exhibit B) or formal Amendment. ______________________________________________________________________ Docusign Envelope ID: 3ADBF3B3-D1CA-49C5-AA32-C82E6EA67DAD Exhibit C-1 - Page 2 of 3 Design 3020 WBS Element 25978.10.30 Performance Period Start*/End Date $0.00 TBD-TBD Const. 3301 WBS Element 25978.20.10 Performance Period Start*/End Date $0.00 TBD-TBD ______________________________________________________________________ * The Local Agency should not begin work until all three (3) of the following are in place: 1) Phase Performance Period Start Date; 2) the execution of the document encumbering funds for the respective phase; and 3) Local Agency receipt of the official Notice to Proceed. Any work performed before these three (3) milestones are achieved will not be reimbursable. B. Funding Ratios The funding ratio for the federal funds for this Work is 80% federal funds to 20% Local Agency funds, and this ratio applies only to the $1,119,128.00 that is eligible for federal funding. All other costs are borne by the Local Agency at 100%. If the total cost of performance of the Work exceeds $1,119,128.00, and additional federal funds are not available, the Local Agency shall pay all such excess costs. If the total cost of performance of the Work is less than $1,119,128.00, then the amounts of Local Agency and federal funds will be decreased in accordance with the funding ratio described in A1. This applies to the entire scope of Work. C. Maximum Amount Payable The maximum amount payable to the Local Agency under this Agreement shall be $895,302.00. For CDOT accounting purposes, the federal funds of $895,302.00 and the Local Agency funds of $223,826.00 will be encumbered for a total encumbrance of $1,119,128.00, unless this amount is increased by an executed amendment before any increased cost is incurred. The total budget of this funding source is $1,119,128.00, unless this amount is increased by an executed amendment before any increased cost is incurred. The total cost of the Work is the best estimate available, based on the design data as approved at the time of execution of this Agreement, and that any cost is subject to revisions agreed to by the parties prior to bid and award. This applies to the entire scope of Work. D. Single Audit Act Amendment All state and local government and non-profit organizations receiving $750,000 or more from all funding sources defined as federal financial assistance for Single Audit Act Amendment purposes shall comply with the audit requirements of 2 CFR part 200, subpart F (Audit Requirements) see also, 49 CFR 18.20 through 18.26. The Single Audit Act Amendment requirements applicable to the Local Agency receiving federal funds are as follows: i. Expenditure less than $750,000 If the Local Agency expends less than $750,000 in Federal funds (all federal sources, not just Highway funds) in its fiscal year then this requirement does not apply. ii. Expenditure of $750,000 or more-Highway Funds Only If the Local Agency expends $750,000 or more, in Federal funds, but only received federal Highway funds (Catalog of Federal Domestic Assistance, CFDA 20.205) then a program specific audit shall be performed. This audit will Docusign Envelope ID: 3ADBF3B3-D1CA-49C5-AA32-C82E6EA67DAD Exhibit C-1 - Page 3 of 3 examine the “financial” procedures and processes for this program area. iii. Expenditure of $750,000 or more-Multiple Funding Sources If the Local Agency expends $750,000 or more in Federal funds, and the Federal funds are from multiple sources (FTA, HUD, NPS, etc.) then the Single Audit Act applies, which is an audit on the entire organization/entity. iv. Independent CPA Single Audit shall only be conducted by an independent CPA, not by an auditor on staff. An audit is an allowable direct or indirect cost. Docusign Envelope ID: 3ADBF3B3-D1CA-49C5-AA32-C82E6EA67DAD OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 1 of 29 STATE OF COLORADO INTERGOVERNMENTAL AGREEMENT Signature and Cover Page State Agency Department of Transportation Agreement Routing Number 24-HA3-XC-00247 Local Agency TOWN OF AVON Agreement Effective Date The later of the effective date or October 24, 2023 Agreement Description West Beaver Creek Blvd. Bridge Agreement Expiration Date October 23, 2033 Project # BRO M058- 005 (25978) Region # R3 Contract Writer BH Agreement Maximum Amount $435,496.00 THE PARTIES HERETO HAVE EXECUTED THIS AGREEMENT Each person signing this Agreement represents and warrants that he or she is duly authorized to execute this Agreement and to bind the Party authorizing his or her signature. LOCAL AGENCY TOWN OF AVON ___________________________________________ Signature ___________________________________________ By: (Print Name and Title) Date: _________________________ STATE OF COLORADO Jared S. Polis, Governor Department of Transportation Shoshana M. Lew, Executive Director ___________________________________________ Keith Stefanik, P.E., Chief Engineer Date: _________________________ 2nd State or Local Agency Signature if Needed ___________________________________________ Signature ___________________________________________ By: (Print Name and Title) Date: _________________________ LEGAL REVIEW Philip J. Weiser, Attorney General ___________________________________________ Assistant Attorney General ___________________________________________ By: (Print Name and Title) Date: _________________________ In accordance with §24-30-202 C.R.S., this Agreement is not valid until signed and dated below by the State Controller or an authorized delegate. STATE CONTROLLER Robert Jaros, CPA, MBA, JD By: ___________________________________________ Department of Transportation Effective Date: _____________________ Attachment B OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 2 of 29 TABLE OF CONTENTS 1. PARTIES.................................................................................................................................................2 2. TERM AND EFFECTIVE DATE...........................................................................................................2 3. AUTHORITY..........................................................................................................................................3 4. PURPOSE................................................................................................................................................4 5. DEFINITIONS........................................................................................................................................4 6. SCOPE OF WORK .................................................................................................................................7 7. PAYMENTS..........................................................................................................................................11 8. REPORTING - NOTIFICATION .........................................................................................................15 9. LOCAL AGENCY RECORDS.............................................................................................................16 10. CONFIDENTIAL INFORMATION-STATE RECORDS....................................................................17 11. CONFLICTS OF INTEREST................................................................................................................18 12. INSURANCE........................................................................................................................................18 13. BREACH...............................................................................................................................................20 14. REMEDIES...........................................................................................................................................20 15. DISPUTE RESOLUTION.....................................................................................................................22 16. NOTICES AND REPRESENTATIVES...............................................................................................22 17. RIGHTS IN WORK PRODUCT AND OTHER INFORMATION......................................................23 18. GOVERNMENTAL IMMUNITY........................................................................................................24 19. STATEWIDE CONTRACT MANAGEMENT SYSTEM....................................................................24 20. GENERAL PROVISIONS....................................................................................................................24 21. COLORADO SPECIAL PROVISIONS (COLORADO FISCAL RULE 3-3) .....................................27 22. FEDERAL REQUIREMENTS .............................................................................................................29 23. DISADVANTAGED BUSINESS ENTERPRISE (DBE).....................................................................29 EXHIBIT A, SCOPE OF WORK EXHIBIT B, SAMPLE OPTION LETTER EXHIBIT C, FUNDING PROVISIONS (Budget) EXHIBIT D, LOCAL AGENCY RESOLUTION EXHIBIT E, LOCAL AGENCY AGREEMENT ADMINISTRATION CHECKLIST EXHIBIT F, CERTIFICATION FOR FEDERAL-AID AGREEMENTS EXHIBIT G, DISADVANTAGED BUSINESS ENTERPRISE EXHIBIT H, LOCAL AGENCY PROCEDURES FOR CONSULTANT SERVICES EXHIBIT I, FEDERAL-AID AGREEMENT PROVISIONS FOR CONSTRUCTION AGREEMENTS EXHIBIT J, ADDITIONAL FEDERAL REQUIREMENTS EXHIBIT K, FFATA SUPPLEMENTAL FEDERAL PROVISIONS EXHIBIT L, SAMPLE SUBRECIPIENT MONITORING AND RISK ASSESSMENT FORM EXHIBIT M, OMB UNIFORM GUIDANCE FOR FEDERAL AWARDS EXHIBIT N, FEDERAL TREASURY PROVISIONS EXHIBIT O, AGREEMENT WITH SUBRECIPIENT OF FEDERAL RECOVERY FUNDS EXHIBIT P, SLFRF SUBRECIPIENT QUARTERLY REPORT EXHIBIT Q, SLFRF REPORTING MODIFICATION FORM EXHIBIT R, APPLICABLE FEDERAL AWARDS EXHIBIT S, PII CERTIFICATION EXHIBIT T, CHECKLIST OF REQUIRED EXHIBITS DEPENDENT ON FUNDING SOURCE 1. PARTIES This Agreement is entered into by and between Local Agency named on the Signature and Cover Page for this on the Signature and Cover Page for this Agreement to the terms and conditions in this Agreement. 2. TERM AND EFFECTIVE DATE A. Effective Date OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 3 of 29 This Agreement shall not be valid or enforceable until the Effective Date, and Agreement Funds shall be expended within the dates shown in Exhibit C The State shall not be bound by any provision of this Agreement before the Effective Date, and shall have no obligation to pay Local Agency for any Work performed or expense incurred before 1) the Effective Date of this original Agreement; except as described in §7.D; 2) before the encumbering document for the respective phase and the official Notice to Proceed for the respective phase; or 3) after the Final Phase Performance End Date, as shown in Exhibit C. Additionally, the State shall have no obligation to pay Local Agency for any Work performed or expense incurred after the Agreement Expiration Date or after required billing deadline specified in §7.B.i.e ing will continue until the Agreement Expiration Date. If Agreement Funds expire before the Agreement Expiration Date, then no payments will be made after expiration of Agreement Funds. B. Initial Term and Extension Date shown on the Signature and Cover Page for this Agreement and shall terminate on October 23, 2033 as shown on the Signature and Cover Page for this Agreement, unless sooner terminated or further extended in accordance with the terms of this Agreement. Upon request of Local Agency, the State may, in its sole discretion, extend the term of this Agreement by Option Letter pursuant §7.E.iv. If the Work will be performed in multiple phases, the period of performance start and end date of each phase is detailed under the Project Schedule in Exhibit C. C. Early Termination in the Public Interest The State is entering into this Agreement to serve the public interest of the State of Colorado as determined by its Governor, General Assembly, or Courts. If this Agreement ceases to further the public interest of the State, and this ARPA Award is not appropriated, or otherwise become unavailable to fund this ARPA Award the State, in its discretion, may terminate this Agreement in whole or in part. This subsection shall not apply to a termination of this Agreement by the State for breach by Local Agency, which shall be governed by §14.A.i. i. Method and Content The State shall notify Local Agency by providing written notice to Local Agency of the termination and be in accordance with §16.The notice shall specify the effective date of the termination and whether it affects all or a portion of this Agreement. ii. Obligations and Rights Upon receipt of a termination notice for termination in the public interest, Local Agency shall be subject to §14.A.i.a iii. Payments If the State terminates this Agreement in the public interest, the State shall pay Local Agency an amount equal to the percentage of the total reimbursement payable under this Agreement that corresponds to the percentage of Work satisfactorily completed and accepted, as determined by the State, less payments previously made. Additionally, if this Agreement is less than 60% completed, as determined by the State, the State may reimburse Local Agency for a portion of actual out-of-pocket expenses, not otherwise reimbursed under this Agreement, incurred by Local Agency which are directly attributable to the shall not exceed the maximum amount payable to Local Agency hereunder. This subsection shall not apply to a termination of this ARPA Award by the State for breach by Local Agency. D. Local Agency Termination Under Federal Requirements Local Agency may request termination of the ARPA Award by sending notice to the State, which includes the effective date of the termination. If this ARPA Award is terminated in this manner, then Local Agency shall return any advanced payments made for work that will not be performed prior to the effective date of the termination. 3. AUTHORITY OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 4 of 29 Authority to enter into this Agreement exists in the law as follows: A. Federal Authority and to applicable provisions of Title 23 of the United States Code and implementing regulations at Title 23 of the Code of Federal Regulations, as may be amended, (collectively referred to hereinafter as the federal funds have been and are expected to continue to be allocated for transportation projects requested by Local Agency and eligible under the Surface Transportation Improvement Program that has been proposed by the State and approved by the Federal Highway resources needed to respond to the pandemic and its economic effects and to build a stronger, more equitable economy during the recovery. B. State Authority Pursuant to CRS §43-1-223 and to applicable portions of the Federal Provisions, the State is responsible for the general administration and supervision of performance of projects in the Program, including the administration of federal funds for a Program project performed by a Local Agency under a contract with the State. This Agreement is executed under the authority of CRS §§29-1-203, 43-1-110; 43-1-116, 43-2- 101(4)(c) and 43-2-104.5. 4. PURPOSE The purpose of this Agreement is Agreement with the FHWA and/or USDT as shown in Exhibit C. 5. DEFINITIONS The following terms shall be construed and interpreted as follows: A.Agreement reference, all referenced statutes, rules and cited authorities, and any future modifications thereto. B.Agreement Funds made available for payment by the State under this Agreement. C.ARPA Department of the Treasury . See D.Award The terms and conditions of the Federal Award flow down to the Award unless the terms and conditions of the Federal Award specifically indicate otherwise. E.Budget Exhibit C. F.Business Day Saturday, Sunday or any day on which the State observes one of the holidays listed in §24-11-101(1) C.R.S.. G.Chief Procurement Officer her authority pursuant to §24-102-202 to procure or supervise the procurement of all supplies and services needed by the State. H.CJI of their authorized functions, including, without limitation, all information defined as criminal justice information by the U.S. Department of Justice, Federal Bureau of Investigation, Criminal Justice Information Services Security Policy, as amended and all Criminal Justice Records as defined under §24- 72-302, C.R.S. I.Consultant J.Contractor OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 5 of 29 K.CORA -72-200.1 et. seq., C.R.S. L.Effective Date Controller or designee, as shown on the Signature and Cover Page for this Agreement. M.Evaluation established in §6, Exhibit A and Exhibit E. N.Exhibits i.Exhibit A, Scope of Work. ii.Exhibit B, Sample Option Letter. iii.Exhibit C, Funding Provisions iv.Exhibit D, Local Agency Resolution v.Exhibit E, Local Agency Contract Administration Checklist vi.Exhibit F, Certification for Federal-Aid Contracts vii.Exhibit G, Disadvantaged Business Enterprise viii.Exhibit H, Local Agency Procedures for Consultant Services ix.Exhibit I, Federal-Aid Contract Provisions for Construction Contracts x.Exhibit J, Additional Federal Requirements xi.Exhibit K, The Federal Funding Accountability and Transparency Act of 2006 (FFATA) Supplemental Federal Provisions xii.Exhibit L, Sample Sub-Recipient Monitoring and Risk Assessment Form xiii.Exhibit M, Supplemental Provisions for Federal Awards Subject to The Office of Management and Budget Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal xiv.Exhibit N, Federal Treasury Provisions xv.Exhibit O, Agreement with Subrecipient of Federal Recovery Funds xvi.Exhibit P, SLFRF Subrecipient Quarterly Report xvii.Exhibit Q, SLFRF Reporting Modification Form xviii.Exhibit R, Applicable Federal Awards xix.Exhibit S, PII Certification xx.Exhibit T, Checklist of Required Exhibits Dependent on Funding Source O.Expiration Date means the date on which this Agreement expires, as shown on the Signature and Cover Page for this Agreement. P.Extension Term through delivery of an updated ARPA Letter. Q.Federal Award -reimbursement contract under means an agreement setting forth the terms and conditions of the Federal Award. The term does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. R.Federal Awarding Agency Department of the Treasury is the Federal Awarding Agency for the Federal Award, which may be the subject of this Agreement. S.FHWA Office of the Secretary of Transportation at the U.S. Department of Transportation. FHWA provides stewardship over the construction, maintenance and preservati FHWA is the Federal Awarding Agency for the Federal Award which is the subject of this Agreement. T.Goods Agreement and shall include any movable material acquired, produced, or delivered by Local Agency in connection with the Services. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 6 of 29 U.Incident unauthorized access or disclosure of State Confidential Information or of the unauthorized modification, disruption, or destruction of any State Records. V.Initial Term §2.B. W.Local Funds their obligated contribution to the federal and/or State Awards to receive the federal and/or State funding. X.Notice to Proceed Agency can begin work subject to the conditions of this Agreement. Y.OMB Z.Oversight AA.Party Parties BB.PCI numbers, or the other credit card information as may be protected by state or federal law. CC.PHI or recorded in any form or medium: (i)that relates to the past, present or future physical or mental condition of an individual; the provision of health care to an individual; or the past, present or future payment for the provision of health care to an individual; and (ii)that identifies the individual or with respect to which there is a reasonable basis to believe the information can be used to identify the individual. PHI includes, but is not limited to, any information defined as Individually Identifiable Health Information by the federal Health Insurance Portability and Accountability Act. DD.PII name, social security number, date and place o other information that is linked or linkable to an individual, such as medical, educational, financial, and employment information. PII includes, but is not limited to, all information defined as personally identifiable information in §24-72-501 C.R.S. set forth at § 24-74-102, et. seq., C.R.S. EE.Recipient FF.Services include any services to be rendered by Local Agency in connection with the Goods. GG.SLFRF Department. HH.Special Funding one or a combination of Multimodal Transportation & Mitigation Options Funding, Revitalizing Main Streets, Safer Main Streets, Stimulus Funds, Coronavirus Response and Relief Supplemental Funds, ARPA, SLFRF, or COVID Relief. II.State Confidential Information means any and all State Records not subject to disclosure under CORA. State Confidential Information shall include, but is not limited to, PII and State personnel records not subject to disclosure under CORA. JJ.State Fiscal Rules means the fiscal rules promulgated by the Colorado State Controller pursuant to §24- 30-202(13)(a). KK.State Fiscal Year means a 12-month period beginning on July 1 of each calendar year and ending on June 30 of the following calendar year. If a single calendar year follows the term, then it means the State Fiscal Year ending in that calendar year. LL.State Purchasing Director means the position described in the Colorado Procurement Code and its implementing regulations. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 7 of 29 MM.State Records means any and all State data, information, and records, regardless of physical form, including, but not limited to, information subject to disclosure under CORA. NN.Sub-Award Award. The terms and conditions of the Federal Award flow down to this Sub-Award unless the terms and conditions of the Federal Award specifically indicate otherwise. OO.Subcontractor PP.Subrecipient -Federal entity that receives a sub-award from a Recipient to carry out part of a Federal program but does not include an individual that is a beneficiary of such program. A Subrecipient may also be a recipient of other Federal Awards directly from a Federal Awarding Agency. QQ.Tax Information Federal and State tax returns, return information, and such other tax-related information as may be protected by Federal and State law and regulation. Tax Information includes but is not limited to all information defined as Federal tax Information in Internal Revenue Service Publication 1075. RR.Uniform Guidance Cost Principles, and Audit Requirements for Federal Awards, which supersedes requirements from OMB Circulars A-21, A-87, A-110, A-122, A-89, A-102, and A-133, and the guidance in Circular A-50 on Single Audit Act follow-up. SS.USDT The United States Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States where it serves as an executive department. The USDT funds ARPA. TT.Work Local Agency Manual described in this Agreement. UU.Work Product including drafts. Work Product includes, but is not limited to, documents, text, software (including source code), research, reports, proposals, specifications, plans, notes, studies, data, images, photographs, negatives, pictures, drawings, designs, models, surveys, maps, materials, ideas, concepts, know-how, and oped prior to the Effective Date that is used, without modification, in the performance of the Work. Any other term used in this Agreement that is defined in an Exhibit shall be construed and interpreted as defined in that Exhibit. 6. SCOPE OF WORK Local Agency shall complete the Work as described in this Agreement and in accordance with the provisions of Exhibit A, and the Local Agency Manual. The State shall have no liability to compensate Local Agency for the delivery of any Goods or the performance of any Services that are not specifically set forth in this Agreement. Work may be divided into multiple phases that have separate periods of performance. The State may not compensate for Work that Local Agency performs outside of its designated phase performance period. The performance period of phases, including, but not limited to Design, Construction, Right of Way, Utilities, or Environment phases, are identified in Exhibit C. The State may unilaterally modify Exhibit C from time to time, at its sole discretion, to extend the Agreement Expiration Date and/or to extend the period of performance for a phase of Work authorized under this Agreement. To exercise these options to extend the Agreement Expiration Date and/or to update the phase performance period extension option, the State will provide written notice to Local Agency in a form substantially equivalent to Exhibit B. Expiration Date and/or the phase performance periods will not amend or alter in any way the funding provisions or any other terms specified in this Agreement, notwithstanding the options listed under §7.E A. Local Agency Commitments i. Design If the Work includes preliminary design, final design, design work sheets, or special provisions and comply with and are responsible for satisfying the following requirements: OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 8 of 29 a. Perform or provide the Plans to the extent required by the nature of the Work. b. Prepare final design in accordance with the requirements of the latest edition of the American Association of State Highway Transportation Officials (AASHTO) manual or other standard, such as the Uniform Building Code, as approved by the State. c. and Bridge Design Manuals and Standard Specifications for Road and Bridge Construction or Local Agency specifications if approved by the State. d. Include details of any required detours in the Plans in order to prevent any interference of the construction Work and to protect the traveling public. e. Stamp the Plans as produced by a Colorado registered professional engineer. f. Provide final assembly of Plans and all other necessary documents. g. Ensure the Plans are accurate and complete. h. Make no further changes in the Plans following the award of the construction contract to Contractor unless agreed to in writing by the Parties. The Plans shall be considered final when approved in writing by CDOT, and when final, they will be deemed incorporated herein. ii. Local Agency Work a. Local Agency shall comply with the requirements of the Americans With Disabilities Act (ADA) 42 U.S.C. § 12101, et. seq., and applicable federal regulations and standards as contained in the b. Local Agency shall afford the State ample opportunity to review the Plans and shall make any changes in the Plans that are directed by the State to comply with FHWA requirements. c. Local Agency may enter into a contract with a Consultant to perform all or any portion of the Plans and/or construction administration. Provided, however, if federal-aid funds are involved in the cost of such Work to be done by such Consultant, such Consultant contract (and the performance provision of the Plans under the contract) must comply with all applicable requirements of 23 C.F.R. Part 172 and with any procedures implementing those requirements as provided by the State, including those in Exhibit H. If Local Agency enters into a contract with a Consultant for the Work: 1) Local Agency shall submit a certification that procurement of any Consultant contract complies with the requirements of 23 C.F.R. 172.5(1) prior to entering into such Consultant contract, ocal Agency shall not enter into such Consultant contract. 2) Local Agency shall ensure that all changes in the Consultant contract have prior approval by the State and FHWA and that they are in writing. Immediately after the Consultant contract has been awarded, one copy of the executed Consultant contract and any amendments shall be submitted to the State. 3) Local Agency shall require that all billings under the Consultant contract comply with the CDOT Agreements Office. 4) Local Agency (and any Consultant) shall comply with 23 C.F.R. 172.5(b) and (d) and use the CDOT procedures described in Exhibit H to administer the Consultant contract. 5) Local Agency may expedite any CDOT approval of its procurement process and/or Consultant representative certifying compliance with Exhibit H and 23 C.F.R. 172.5(b)and (d). 6) Local Agency shall ensure that the Consultant contract complies with the requirements of 49 CFR 18.36(i) and contains the following language verbatim: (a) The design work under this Agreement shall be compatible with the requirements of the contract between Local Agency and the State (which is incorporated herein by this OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 9 of 29 reference) for the design/construction of the project. The State is an intended third-party beneficiary of this agreement for that purpose. (b) Upon advertisement of the project work for construction, the consultant shall make available services as requested by the State to assist the State in the evaluation of construction and the resolution of construction problems that may arise during the construction of the project. (c) Standard Specifications for Road and Bridge Construction, in connection with this work. (d) The State, in its sole discretion, may review construction plans, special provisions and estimates and may require Local Agency to make such changes therein as the State determines necessary to comply with State and FHWA requirements. iii. Construction If the Work includes construction, Local Agency shall perform the construction in accordance with the approved design plans and/or administer the construction in accordance with Exhibit E. Such administration shall include Work inspection and testing; approving sources of materials; performing required plant and shop inspections; documentation of contract payments, testing and inspection activities; preparing and approving pay estimates; preparing, approving and securing the funding for contract modification orders and minor contract revisions; processing construction Contractor claims; construction supervision; and meeting the quality control requirements of the FHWA/CDOT Stewardship Agreement, as described in Exhibit E. a. The State may, after providing written notice of the reason for the suspension to Local Agency, suspend the Work, wholly or in part, due to the failure of Local Agency or its Contractor to correct conditions which are unsafe for workers or for such periods as the State may deem necessary due to unsuitable weather, or for conditions considered unsuitable for the prosecution of the Work, or for any other condition or reason deemed by the State to be in the public interest. b. Local Agency shall be responsible for the following: 1) Appointing a qualified professional engineer, licensed in the State of Colorado, as Local Agency Project Engineer (LAPE), to perform engineering administration. The LAPE shall administer the Work in accordance with this Agreement, the requirements of the construction contract and applicable State procedures, as defined in the CDOT Local Agency Manual (https://www.codot.gov/business/designsupport/bulletins_manuals/2006-local-agency- manual). 2) For the construction Services, advertising the call for bids, following its approval by the State, and awarding the construction contract(s) to the lowest responsible bidder(s). (a) with applicable requirements of 23 U.S.C. §112 and 23 C.F.R. Parts 633 and 635 and C.R.S. § 24-92-101 et seq. Those requirements include, without limitation, that Local Agency and its Contractor(s) incorporate Form 1273 (Exhibit I) in its entirety, verbatim, into any subcontract(s) for Services as terms and conditions thereof, as required by 23 C.F.R. 633.102(e). (b) Local Agency may accept or reject the proposal of the apparent low bidder for Work on which competitive bids have been received. Local Agency must accept or reject such bids within three (3) working days after they are publicly opened. (c) If Local Agency accepts bids and makes awards that exceed the amount of available Agreement Funds, Local Agency shall provide the additional funds necessary to complete the Work or not award such bids. (d) The requirements of §6.A.iii.b.2 also apply to any advertising and bid awards made by the State. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 10 of 29 (e) The State (and in some cases FHWA) must approve in advance all Force Account Construction, and Local Agency shall not initiate any such Services until the State issues a written Notice to Proceed. iv. Right of Way (ROW) and Acquisition/Relocation a. If Local Agency purchases a ROW for a State highway, including areas of influence, Local Agency shall convey the ROW to CDOT promptly upon the completion of the project/construction. b. Any acquisition/relocation activities shall comply with all applicable federal and State statutes and regulations, including but not limited to, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, the Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs, as amended (49 C.F.R. Part 24), c. Right of Way Manual (located at http://www.codot.gov/business/manuals/right-of-way); however, the State always retains oversight responsibilities. d. following categories: 1) Right of way acquisition (3111) for federal participation and non-participation; 2) Relocation activities, if applicable (3109); 3) Right of way incidentals, if applicable (expenses incidental to acquisition/relocation of right of way 3114). v. Utilities If necessary, Local Agency shall be responsible for obtaining the proper clearance or approval from any utility company that may become involved in the Work. Prior to the Work being advertised for bids, Local Agency shall certify in writing to the State that all such clearances have been obtained. vi. Railroads accomplished by the railroad company, Local Agency shall make timely application to the Public r the installation of the proposed order. Local Agency shall also establish contact with the railroad company involved for the purpose of complying with applicable provisions of 23 C.F.R. 646, subpart B, concerning federal-aid projects involving railroad facilities, and: a. Execute an agreement with the railroad company setting out what work is to be accomplished and the location(s) thereof, and which costs shall be eligible for federal participation. b. c. Establish future maintenance responsibilities for the proposed installation. d. Proscribe in the agreement the future use or dispositions of the proposed improvements in the event of abandonment or elimination of a grade crossing. e. Establish future repair and/or replacement responsibilities, as between the railroad company and the Local Agency, in the event of accidental destruction or damage to the installation. vii. Environmental Obligations Local Agency shall perform all Work in accordance with the requirements of current federal and State environmental regulations, including the National Environmental Policy Act of 1969 (NEPA) as applicable. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 11 of 29 viii. Maintenance Obligations Local Agency shall maintain and operate the Work constructed under this Agreement at its own cost and expense during their useful life, in a manner satisfactory to the State and FHWA. Local Agency shall conduct such maintenance and operations in accordance with all applicable statutes, ordinances, and regulations pertaining to maintaining such improvements. The State and FHWA may make periodic inspections to verify that such improvements are being adequately maintained. ix. Monitoring Obligations Local Agency shall respond in a timely manner to and participate fully with the monitoring activities described in §7.F.vi. B. i. The State will perform a final project inspection of the Work as a quality control/assurance activity. When all Work has been satisfactorily completed, the State will sign the FHWA Form 1212. ii. Notwithstanding any consents or approvals given by the State for the Plans, the State shall not be liable or responsible in any manner for the structural design, details or construction of any Work constituting major structures designed by, or that are the responsibility of, Local Agency, as identified in Exhibit E. 7. PAYMENTS A. Maximum Amount Payments to Local Agency are limited to the unpaid, obligated balance of the Agreement Funds set forth in Exhibit C. The State shall not pay Local Agency any amount under this Agreement that exceeds the Agreement Maximum set forth in Exhibit C. B. Payment Procedures i. Invoices and Payment a. The State shall pay Local Agency in the amounts and in accordance with conditions set forth in Exhibit C. b. Local Agency shall initiate payment requests by invoice to the State, in a form and manner approved by the State. c. as the amount invoiced correctly represents Work completed by Local Agency and previously accepted by the State during the term that the invoice covers. If the State determines that the amount of any invoice is not correct, then Local Agency shall make all changes necessary to correct that invoice. d. The acceptance of an invoice shall not constitute acceptance of any Work performed or deliverables provided under the Agreement. e. If a project is funded in part with Federal or State special funding there may be an expiration date for the funds. The expiration date applies to grants and local funds used to match grants. To receive payment or credit for the match, Work must be completed or substantially completed, as outlined in the terms of the grant, prior to the expiration date of the special funding and invoiced in compliance with the rules outlined in the award of the funding. The acceptance of an invoice shall not constitute acceptance of any Work performed or deliverables provided under the Agreement. ii. Interest on the unpaid balance beginning on the 46th day at the rate of 1% per month, as required by §24-30- 202(24)(a), C.R.S., until paid in full; provided, however, that interest shall not accrue on unpaid amounts that the State disputes in writing. Local Agency shall invoice the State separately for accrued interest on delinquent amounts, and the invoice shall reference the delinquent payment, the number of days interest to be paid and the interest rate. iii. Payment Disputes OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 12 of 29 If Local Agency disputes any calculation, determination, or amount of any payment, Local Agency shall receipt of the payment or notification of the determination or calculation of the payment by the State. The State will review the information presented by Local Agency and may make changes to its determination based on this review. The calculation, determination, or payment amount that results from the a dispute under this subsection shall be due until after the State has concluded its review, and the State shall not pay any interest on any amount during the period it is subject to dispute under this subsection. iv. Available Funds-Contingency-Termination a. The State is prohibited by law from making commitments beyond the term of the current State Fiscal Year. Payment to Local Agency beyond the current State Fiscal Year is contingent on the appropriation and continuing availability of Agreement Funds in any subsequent year (as provided in the Colorado Special Provisions). If federal funds or funds from any other non-State funds contingent upon such non-State funding continuing to be made available for payment. Payments to be made pursu liability for such payments shall be limited to the amount remaining of such Agreement Funds. If State, federal or other funds are not appropriated, or otherwise become unavailable to fund this Agreement, the State may, upon written notice, terminate this Agreement, in whole or in part, without incurring further liability. The State shall, however, remain obligated to pay for Services and Goods that are delivered and accepted prior to the effective date of notice of termination, and this termination shall otherwise be treated as if this Agreement were terminated in the public interest as described in §2.C. b. If the agreement funds are terminated, the State can terminate the contract early. Payment due for work done to the date of termination will be processed in a manner consistent with §2.C. v. Erroneous Payments including, but not limited to, overpayments or improper payments, and unexpended or excess funds received by Local Agency. The State may recover such payments by deduction from subsequent payments under this Agreement, deduction from any payment due under any other contracts, grants or agreements between the State and Local Agency, or by any other appropriate method for collecting debts owed to the State. The close out of a Federal Award does not affect the right of FHWA or the State to disallow costs and recover funds on the basis of a later audit or other review. Any cost disallowance recovery is to be made within the Record Retention Period (as defined below in §9.A.). vi. Federal Recovery The close-out of a Federal Award does not affect the right of the Federal Awarding Agency or the State to disallow costs and recover funds on the basis of a later audit or other review. Any cost disallowance recovery is to be made within the Record Retention Period, as defined below. C. Local Agency Funds Local Agency shall provide their obligated contribution funds as outlined in §7.A. and Exhibit C. Local Agency shall have raised the full amount of their funds prior to the Effective Date and shall report to the matching funds, whether direct or contingent, only extend to funds duly and lawfully appropriated for the purposes of this Agreement by the authorized representatives of Local Agency and pa Exhibit C has been legally appropriated for the purpose of this Agreement by its authorized representatives and paid into its treasury. Local Agency may evidence such obligation by an appropriate ordinance/resolution or other authority letter expressly authorizing Local Agency to enter into this Agreement and to expend its match share of the Work. A copy of any such ordinance/resolution or authority letter is attached hereto as Exhibit D if applicable. Local Agency does not by this Agreement irrevocably pledge present cash reserves for payments in future fiscal years, and this Agreement is not intended to create a multiple-fiscal year debt of OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 13 of 29 Local Agency. Local Agency shall not pay or be liable for any claimed interest, late charges, fees, taxes, or . D. Reimbursement of Local Agency Costs described in Exhibit C and §7. However, any costs incurred by Local Agency prior to the Effective Date shall not be reimbursed absent specific allowance of pre-award costs and indication that the Federal Award funding is retroactive. The State shall pay Local Agency for costs or expenses incurred or performance by the Local Agency prior to the Effective Date, only if (1) the Grant Funds involve federal funding and (2) federal laws, rules, and regulations applicable to the Work provide for such retroactive payments to the Local Agency. Any such retroactive payments shall comply with State Fiscal Rules and be made in accordance with the provisions of this Agreement. The applicable principles described in 2 C.F.R. Part 200 shall govern reimbursement hereunder, and Local Agency shall comply with all such principles. The State shall reimburse Local Agency for the federal-aid share of properly documented costs related to the Work after review and approval thereof, subject to the provisions of this Agreement and Exhibit C. Local Agency costs for Work performed prior to the Effective Date shall not be reimbursed absent specific allowance of pre-award costs and indication that the Federal Award funding is retroactive. Local Agency costs for Work performed after any Performance Period End Date for a respective phase of the Work, is not reimbursable. Allowable costs shall be: i. Reasonable and necessary to accomplish the Work and for the Goods and Services provided. ii. Actual net cost to Local Agency (i.e. the price paid minus any items of value received by Local Agency that reduce the cost actually incurred). E. Unilateral Modification of Agreement Funds Budget by State Option Letter the Work schedule in Exhibit C if such modifications do not increase total budgeted Agreement Funds. Such Option Letters shall amend and update Exhibit C, Sections 2 or 4 of the Table, and sub-sections B and C of the Exhibit C. Option Letters shall not be deemed valid until signed by the State Controller or an authorized delegate.This is NOT a Notice to Proceed. Modification of Exhibit C by unilateral Option Letter is permitted only in the specific scenarios listed below. The State will exercise such options by providing Local Agency a fully executed Option Letter, in a form substantially equivalent to Exhibit B. Such Option Letters will be incorporated into this Agreement. This applies to the entire Scope of Work. i. Option to Begin a Phase and/or Increase or Decrease the Encumbrance Amount The State may require by Option Letter that Local Agency begin a new Work phase that may include Design, Construction, Environmental, Utilities, ROW Incidentals or Miscellaneous Work (but may not include Right of Way Acquisition/Relocation or Railroads) as detailed in Exhibit A. Such Option Letters may not modify the other terms and conditions stated in this Agreement and must decrease the amount budgeted and encumbered for one or more other Work phases so that the total amount of budgeted Agreement Funds remains the same. The State may also change the funding sources so long as the amount budgeted remains the same and the Local Agency contribution does not increase. The State may also issue a unilateral Option Letter to increase and/or decrease the total encumbrance amount of two or more existing Work phases, as long as the total amount of budgeted Agreement Funds remains the same, replacing the original Agreement Funding exhibit (Exhibit C) with an updated Exhibit C-1 (with subsequent exhibits labeled C-2,C-3, etc.). ii. Option to Transfer Funds from One Phase to Another Phase. The State may require or permit Local Agency to transfer Agreement Funds from one Work phase (Design, Construction, Environmental, Utilities, ROW Incidentals or Miscellaneous) to another phase as a result of changes to State, federal, and local match funding. In such case, the original funding exhibit (Exhibit C) will be replaced with an updated Exhibit C-1 (with subsequent exhibits labeled C-2,C-3, etc.) attached to the Option Letter. The Agreement Funds transferred from one Work phase to another are subject to the same terms and conditions stated in the original Agreement with the total budgeted Agreement Funds remaining the same. The State may unilaterally exercise this option by providing a OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 14 of 29 fully executed Option Letter to Local Agency within thirty (30) days before the initial targeted start date of the Work phase, in a form substantially equivalent to Exhibit B. iii. Option to Exercise Options i and ii. The State may require Local Agency to add a Work phase as detailed in Exhibit A, and encumber and transfer Agreement Funds from one Work phase to another. The original funding exhibit (Exhibit C) in the original Agreement will be replaced with an updated Exhibit C-1 (with subsequent exhibits labeled C-2,C-3, etc.) attached to the Option Letter. The addition of a Work phase and encumbrance and transfer of Agreement Funds are subject to the same terms and conditions stated in the original Agreement with the total budgeted Agreement Funds remaining the same. The State may unilaterally exercise this option by providing a fully executed Option Letter to Local Agency within 30 days before the initial targeted start date of the Work phase, in a form substantially equivalent to Exhibit B. iv. Option to Extend Agreement/Phase Term and/or modify the OMB Uniform Guidance. The State, at its discretion, shall have the option to extend the term of this Agreement and/or update a Work Phase Performance Period and/or modify information required under the OMB Uniform Guidance, as outlined in Exhibit C. Any updated version of Exhibit C shall be attached to any executed Option Letter as Exhibit C-1 (with subsequent exhibits labeled C-2,C-3, etc.). In order to exercise this option, the State shall provide written notice to the Local Agency in a form substantially equivalent to Exhibit B. F. Accounting Local Agency shall establish and maintain accounting systems in accordance with generally accepted accounting standards (a separate set of accounts, or as a separate and integral part of its current accounting scheme). Such accounting systems shall, at a minimum, provide as follows: i. Local Agency Performing the Work If Local Agency is performing the Work, it shall document all allowable costs, including any approved Services contributed by Local Agency or subcontractors, using payrolls, time records, invoices, contracts, vouchers, and other applicable records. ii. Local Agency-Checks or Draws Checks issued or draws made by Local Agency shall be made or drawn against properly signed vouchers detailing the purpose thereof. Local Agency shall keep on file all checks, payrolls, invoices, contracts, vouchers, orders, and other accounting documents in the office of Local Agency, clearly identified, readily accessible, and to the extent feasible, separate and apart from all other Work documents. iii. State-Administrative Services The State may perform any necessary administrative support services required hereunder. Local Agency shall reimburse the State for the costs of any such services from the budgeted Agreement Funds as provided for in Exhibit C. If FHWA Agreement Funds are or become unavailable, or if Local Agency terminates this Agreement prior to the Work being approved by the State or otherwise completed, then all actual incurred costs of such services and assistance provided by the State shall be reimbursed to the State by Local Agency at its sole expense. iv. Local Agency-Invoices which it seeks reimbursement, the dates such costs were incurred and the amounts thereof, and Local Agency shall not submit more than one invoice per month. v. Invoicing Within 60 Days The State shall not be liable to reimburse Local Agency for any costs invoiced more than 60 days after State may withhold final payment to Local Agency audit. Any costs incurred by Local Agency that are not allowable under 2 C.F.R. Part 200 shall be Local to Local Agency. The State will not reimburse costs for Work performed after the Performance Period End Date for a respective Work phase. The State will not reimburse costs for Work performed prior to Performance OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 15 of 29 Period End Date, but for which an invoice is received more than 60 days after the Performance Period End Date. vi. Risk Assessment & Monitoring Pursuant to 2 C.F.R. 200.331(b), federal statutes, regulations, and terms and conditions of this Agreement. Local Agency shall complete a Risk Assessment Form (Exhibit L) when that may be requested by CDOT. The risk assessment is a -compliance with the requirements of the Federal Award. The risk assessment will evaluate some or all of the following factors: Experience: Factors associated with the experience and history of the Subrecipient with the same or similar Federal Awards or grants. monitoring visits, including those performed by the Federal Awarding Agency, when the Subrecipient also receives direct federal funding. Include audit results if Subrecipient receives single audit, where the specific award being assessed was selected as a major program. services. financial requirements of the Federal Award. Internal Controls: Factors associated with safeguarding assets and resources, deterring and detecting errors, fraud and theft, ensuring accuracy and completeness of accounting data, producing reliable and timely financial and management information, and ensuring adherence to its policies and plans. -compliance to the overall success of the program objectives. Program Management: Factors associated with processes to manage critical personnel, approved written procedures, and knowledge of rules and regulations regarding federal-aid projects. Exhibit L), CDOT will determine may be re-evaluated after CDOT begins performing monitoring activities. G. Close Out Local Agency shall close out this Award within 90 days after the Final Phase Performance End Date. If SLFRF Funds are used the Local Agency shall close out that portion of the Award within 45 days after the State will withhold 5% of allowable costs until all final documentation has been submitted and accepted by the State as substantially complete. If FHWA or US Treasury has not closed this Federal Award within one (1) year and 90 days after the Final Phase documentation, then Local Agency may be prohibited from applying for new Federal Awards through the State until such documentation is submitted and accepted. 8. REPORTING - NOTIFICATION A. Quarterly Reports In addition to any reports required pursuant to §19 or pursuant to any exhibit, for any contract having a term longer than 3 months, Local Agency shall submit, on a quarterly basis, a written report specifying progress made for each specified performance measure and standard in this Agreement. Such progress report shall be in accordance with the procedures developed and prescribed by the State. Progress reports shall be submitted to the State not later than ten (10) Business Days following the end of each calendar quarter or at such time as otherwise specified by the State. If SLFRF Funds are used the report must be in the format of Exhibit P. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 16 of 29 B. Litigation Reporting If Local Agency is served with a pleading or other document in connection with an action before a court or other administrative decision making body, and such pleading or document relates to this Agreement or may s obligations under this Agreement, Local Agency shall, within 10 days after being served, notify the State of such action and deliver copies of such pleading or document to §16. C. Performance and Final Status Local Agency shall submit all financial, performance and other reports to the State no later than 60 calendar days after the Final Phase Performance End Date or sooner termination of this Agreement, containing an D. Violations Reporting Local Agency must disclose, in a timely manner, in writing to the State and FHWA, all violations of federal or State criminal law involving fraud, bribery, or gratuity violations potentially affecting the Federal Award. Penalties for noncompliance may include suspension or debarment (2 CFR Part 180 and 31 U.S.C. 3321). 9. LOCAL AGENCY RECORDS A. Maintenance Local Agency shall make, keep, maintain, and allow inspection and monitoring by the State of a complete file of all records, documents, communications, notes and other written materials, electronic media files, and communications, pertaining in any manner to the Work or the delivery of Services (including, but not limited to the operation of programs) or Goods hereunder. Local Agency shall maintain such records for a period s of the funding source and for a minimum of three (3) years following the date of submission to the State of the final expenditure report, whichever is longer, or if this Award is renewed quarterly or annually, from the date of the submission of each quarterly or annual report, respectively. If any litigation, claim, or audit related to this Award starts before expiration of the Record Retention Period, the Record Retention Period shall extend until all litigation, claims, or audit findings have been resolved and final action taken by the State or Federal Awarding Agency. The Federal Awarding Agency, a cognizant agency for audit, oversight or indirect costs, and the State, may notify Local Agency in writing that the Record Retention Period shall be extended. For records for real property and equipment, the Record Retention Period shall extend three (3) years following final disposition of such property. B. Inspection Records during the Record Retention Period. Local Agency shall make Local Agency Records available times or locations, upon no fewer from the State, unless the State determines that a shorter period of notice, or no notice, is necessary to protect the interests of the State. C. Monitoring ance of the Work. Local Agency shall allow the State to The State shall have the right, in its sole discretion, to change its monitoring procedures and requirements at into a subcontract with an entity that would also be considered a Subrecipient, then the subcontract entered into by Local Agency shall contain provisions permitting both Local Agency and the State to perform all monitoring of that Subcontractor in accordance with the Uniform Guidance. D. Final Audit Report Local Agency shall promptly submit to the State a copy of any final audit report of an audit performed on Agreement or the Work, whether the audit is conducted OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 17 of 29 by Local Agency or a third party. Additionally, if Local Agency is required to perform a single audit under 2 CFR 200.501, et seq., then Local Agency shall submit a copy of the results of that audit to the State within the same timelines as the submission to the federal government. 10. CONFIDENTIAL INFORMATION-STATE RECORDS A. Confidentiality Local Agency shall hold and maintain, and cause all Subcontractors to hold and maintain, any and all State Records that the State provides or makes available to Local Agency for the sole and exclusive benefit of the State, unless those State Records are otherwise publicly available at the time of disclosure or are subject to disclosure by Local Agency under CORA. Local Agency shall not, without prior written approval of the ny third party, or permit the use by any third party for its benefit or to the detriment of the State, any State Records, except as otherwise stated in this Agreement. Local Agency shall provide for the security of all State Confidential Information in accordance with all policies promulgated by the Colorado Office of Information Security and all applicable laws, rules, policies, publications, and guidelines. Local Agency shall immediately forward any request or demand for State Records to cipal representative. If Local Agency or any of its Subcontractors will or may receive the following types of data, Local Agency or its Subcontractors shall provide for the security of such data according to the following: (i)the most recently promulgated IRS Publication 1075 for all Tax Information and in accordance with the Safeguarding Requirements for Federal Tax Information attached to this Award as an Exhibit, if applicable, (ii)the most recently updated PCI Data Security Standard from the PCI Security Standards Council for all PCI, (iii)the most recently issued version of the U.S. Department of Justice, Federal Bureau of Investigation, Criminal Justice Information Services Security Policy for all CJI, and (iv)the federal Health Insurance Portability and Accountability Act for all PHI and the HIPAA Business Associate Agreement attached to this Award, if applicable. Local Agency shall ncipal representative. B. Other Entity Access and Nondisclosure Agreements Local Agency may provide State Records to its agents, employees, assigns and Subcontractors as necessary to perform the Work, but shall restrict access to State Confidential Information to those agents, employees, assigns and Subcontractors who require access to perform their obligations under this Agreement. Local Agency shall ensure all such agents, employees, assigns, and Subcontractors sign nondisclosure agreements with provisions at least as protective as those in this Agreement, and that the nondisclosure agreements are in force at all times the agent, employee, assign or Subcontractor has access to any State Confidential Information. Local Agency shall provide copies of those signed nondisclosure agreements to the State upon request. C. Use, Security, and Retention Local Agency shall use, hold and maintain State Confidential Information in compliance with any and all applicable laws and regulations in facilities located within the United States, and shall maintain a secure environment that ensures confidentiality of all State Confidential Information wherever located. Local purposes of inspecting and monitoring access and use of State Confidential Information and evaluating security control effectiveness. Upon the expiration or termination of this Agreement, Local Agency shall return State Records provided to Local Agency or destroy such State Records and certify to the State that it has done so, as directed by the State. If Local Agency is prevented by law or regulation from returning or destroying State Confidential Information, Local Agency warrants it will guarantee the confidentiality of, and cease to use, such State Confidential Information. D. Incident Notice and Remediation If Local Agency becomes aware of any Incident, it shall notify the State immediately and cooperate with the State regarding recovery, remediation, and the necessity to involve law enforcement, as determined by the State. Unless Local Agency can establish that none of Local Agency or any of its agents, employees, assigns, or Subcontractors are the cause or source of the Incident, Local Agency shall be responsible for the cost of notifying each person who may have been impacted by the Incident. After an Incident, Local Agency shall take steps to reduce the risk of incurring a similar type of Incident in the future as directed by the State, which OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 18 of 29 may include, but is not limited to, developing, and implementing a remediation plan that is approved by the State at no additional cost to the State. E. If Local Agency or any of its Subcontracts will or may receive PII under this agreement, Local Agency shall provide for the security for such PII, in a manner and form acceptable to the State, including, without limitation, State non-disclosure requirements, use of appropriate technology, security practices, computer access security, data access security, data storage encryption, data transmission encryption, security d in §24-73- 103(1)(i), C.R.S. and shall maintain security procedures and practices consistent with §§24-73-101 et seq., C.R.S. In addition, as set forth in § 24-74-102, et. seq., C.R.S., Contractor, including, but not limited to, gents and Subcontractors, agrees not to share any PII with any third parties for the purpose of investigating for, participating in, cooperating with, or assisting with Federal immigration enforcement. If Contractor is given direct access to any State databases containing PII, Contractor shall execute, on behalf of itself and its employees, the certification attached hereto as Exhibit S on an annual Exhibit S shall continue as long as Contractor has direct access to any State databases containing PII. If Contractor uses any Subcontractors to perform services requiring direct access to State databases containing PII, the Contractor shall require such Subcontractors to execute and deliver the certification to the State on an annual basis, so long as the Subcontractor has access to State databases containing PII. 11. CONFLICTS OF INTEREST A. Actual Conflicts of Interest Local Agency shall not engage in any business or activities or maintain any relationships that conflict in any way with the full performance of the obligations of Local Agency under this Agreement. Such a conflict of interest would arise when a Local Agenc provide any tangible personal benefit to an employee of the State, or any member of his or her immediate family or his or her partner, related to the award of, entry into or management or oversight of this Agreement. Officers, employees, and agents of Local Agency may neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to subcontracts. B. Apparent Conflicts of Interest Local Agency acknowledges that, with respect to this Agreement, even the appearance of a conflict of interest from any practices, activities or relationships that reasonably appear to be in conflict with the full C. Disclosure to the State If a conflict or the appearance of a conflict arises, or if Local Agency is uncertain whether a conflict or the appearance of a conflict has arisen, Local Agency shall submit to the State a disclosure statement setting forth the relevant details for the St Agreement. 12. INSURANCE Local Agency shall obtain and maintain, and ensure that each Subcontractor shall obtain and maintain, insurance as specified in this section at all times during the term of this Agreement. All insurance policies required by this Agreement that are not provided through self-insurance shall be issued by insurance companies with an AM Best rating of A-VIII or better. A. Local Agency Insurance Local Agency is a "public entity" within the meaning of the Colorado Governmental Immunity Act, §24-10- 101, et seq. insurance, by commercial policy or self-insurance, as is necessary to meet its liabilities under the GIA. B. Subcontractor Requirements OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 19 of 29 Local Agency shall ensure that each Subcontractor that is a public entity within the meaning of the GIA, maintains at all times during the terms of this Agreement, such liability insurance, by commercial policy or self-insurance, as is necessary to meet t ensure that each Subcontractor that is not a public entity within the meaning of the GIA, maintains at all times during the terms of this Agreement all of the following insurance policies: i. covering all Local Agency or Subcontractor employees acting within the course and scope of their employment. ii. General Liability Commercial general liability insurance written on an Insurance Services Office occurrence form, covering premises operations, fire damage, independent contractors, products and completed operations, blanket contractual liability, personal injury, and advertising liability with minimum limits as follows: a. $1,000,000 each occurrence; b. $1,000,000 general aggregate; c. $1,000,000 products and completed operations aggregate; and d. $50,000 any 1 fire. iii. Automobile Liability Automobile liability insurance covering any auto (including owned, hired and non-owned autos) with a minimum limit of $1,000,000 each accident combined single limit. iv. Protected Information Liability insurance covering all loss of State Confidential Information, such as PII, PHI, PCI, Tax Information, and CJI, and claims based on alleged violations of privacy rights through improper use or disclosure of protected information with minimum limits as follows: a. $1,000,000 each occurrence; and b. $2,000,000 general aggregate. v. Professional Liability Insurance Professional liability insurance covering any damages caused by an error, omission or any negligent act with minimum limits as follows: a. $1,000,000 each occurrence; and b. $1,000,000 general aggregate. vi. Crime Insurance Crime insurance including employee dishonesty coverage with minimum limits as follows: a. $1,000,000 each occurrence; and b. $1,000,000 general aggregate. vii. Cyber/Network Security and Privacy Liability Liability insurance covering all civil, regulatory and statutory damages, contractual damages, data breach management exposure, and any loss of State Confidential Information, such as PII, PHI, PCI, Tax Information, and CJI, and claims based on alleged violations of breach, violation or infringement of right to privacy rights through improper use or disclosure of protect consumer data protection law, confidentiality or other legal protection for personal information, as well as State Confidential Information with minimum limits as follows: a. $1,000,000 each occurrence; and OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 20 of 29 b. $2,000,000 general aggregate. C. Additional Insured The State shall be named as additional insured on all commercial general liability policies (leases and construction contracts require additional insured coverage for completed operations) required of Local Agency and Subcontractors. In the event of cancellation of any commercial general liability policy, the carrier shall provide at least 10 days prior written notice to CDOT. D. Primacy of Coverage Coverage required of Local Agency and each Subcontractor shall be primary over any insurance or self- insurance program carried by Local Agency or the State. E. Cancellation All commercial insurance policies shall include provisions preventing cancellation or non-renewal, except for cancellation based on non-payment of premiums, without at least 30 days prior notice to Local Agency and Local Agency shall forward such notice to the State in accordance with §16 within 7 days of Local F. Subrogation Waiver All commercial insurance policies secured or maintained by Local Agency or its Subcontractors in relation to this Agreement shall include clauses stating that each carrier shall waive all rights of recovery under subrogation or otherwise against Local Agency or the State, its agencies, institutions, organizations, officers, agents, employees, and volunteers. G. Certificates For each commercial insurance plan provided by Local Agency under this Agreement, Local Agency shall within seven (7) Business Days following the Effective Date. Local Agency shall provide to the State certificates evidencing Subcontractor insurance coverage required under this Agreement within seven (7) ect as of the Effective Date, Local Agency shall provide to the State certificates showing Subcontractor insurance of the subcontract. No later than 15 coverage, Local Agency shall deliver to the State certificates of insurance evidencing renewals of coverage. At any other time during the term of this Agreement, upon request by the State, Local Agency shall, within seven (7) Business Days following the request by the State, supply to the State evidence satisfactory to the State of compliance with the provisions of this §12. 13. BREACH A. Defined The failure of a Party to perform any of its obligations in accordance with this Agreement, in whole or in part or in a timely or satisfactory manner, shall be a breach. The institution of proceedings under any bankruptcy, insolvency, reorganization, or similar law, by or against Local Agency, or the appointment of a receiver or similar officer for Local Agency or any of its property, which is not vacated or fully stayed within 30 days after the institution of such proceeding, shall also constitute a breach. B. Notice and Cure Period In the event of a breach, the aggrieved Party shall give written notice of breach to the other Party. If the notified Party does not cure the breach, at its sole expense, within 30 days after the delivery of written notice, the Party may exercise any of the remedies as described in §14 for that Party. Notwithstanding any provision of this Agreement to the contrary, the State, in its discretion, need not provide notice or a cure period and may immediately terminate this Agreement in whole or in part or institute any other remedy in the Agreement in order to protect the public interest of the State. 14. REMEDIES A. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 21 of 29 If Local Agency is in breach under any provision of this Agreement and fails to cure such breach, the State, following the notice and cure period set forth in §13.B, shall have all of the remedies listed in this §14.A.in addition to all other remedies set forth in this Agreement or at law. The State may exercise any or all of the remedies available to it, in its discretion, concurrently or consecutively. i. Termination for Breach part of this Agreement. Local Agency shall continue performance of this Agreement to the extent not terminated, if any. a. Obligations and Rights To the extent specified in any termination notice, Local Agency shall not incur further obligations or render further performance past the effective date of such notice and shall terminate outstanding orders and subcontracts with third parties. However, Local Agency shall complete and deliver to the State all Work not canceled by the termination notice and may incur obligations as necessary to do all of Local Agency's rights, title, and interest in and to such terminated orders or subcontracts. Upon termination, Local Agency shall take timely, reasonable, and necessary action to protect and preserve property in the possession of Local Agency but in which the State has an interest. At the possession at the time of any termination. Local Agency shall deliver all completed Work Product and all Work Product that was in the p b. Payments Notwithstanding anything to the contrary, the State shall only pay Local Agency for accepted Work received as of the date of termination. If, after termination by the State, the State agrees that Local Agency was not in breach or that Local Agency's action or inaction was excusable, such termination shall be treated as a termination in the public interest, and the rights and obligations of the Parties shall be as if this Agreement had been terminated in the public interest under §2.C. c. Damages and Withholding Notwithstanding any other remedial action by the State, Local Agency shall remain liable to the State for any damages sustained by the State in connection with any breach by Local Agency, and the State may withhold payment to Local Agency for the purpose o until such time as the exact amount of damages due to the State from Local Agency is determined. The State may withhold any amount that may be due Local Agency as the State deems necessary to protect the State against loss including, without limitation, loss as a result of outstanding liens and excess costs incurred by the State in procuring from third parties replacement Work as cover. ii. Remedies Not Involving Termination The State, in its discretion, may exercise one or more of the following additional remedies: a. Suspend Performance corrective action as specified by the State without entitling Local Agency to an adjustment in price or cost or an adjustment in the performance schedule. Local Agency shall promptly cease not be liable for costs incurred by Local Agency after the suspension of performance. b. Withhold Payment Withhold payment to Local Agency until Local Agency corrects its Work. c. Deny Payment be performed or if they were performed are reasonably of no value to the state; provided, that any denial of payment shall be equal to the value of the obligations not performed. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 22 of 29 d. Removal Subcontractors from the Work whom the State deems incompetent, careless, insubordinate, unsuitable, or otherwise unacceptable or whose continued relation to this Agreement is deemed by e. Intellectual Property If any Work infringes a patent, copyright, trademark, trade secret, or other intellectual property right, Local Agency shall, as approved by the State (a) secure that right to use such Work for the State or Local Agency; (b) replace the Work with non infringing Work or modify the Work so that it becomes non infringing; or, (c) remove any infringing Work and refund the amount paid for such Work to the State. B. If the State is in breach of any provision of this Agreement and does not cure such breach, Local Agency, following the notice and cure period in §13.B and the dispute resolution process in §15 shall have all remedies available at law and equity. 15. DISPUTE RESOLUTION A. Initial Resolution Except as herein specifically provided otherwise, disputes concerning the performance of this Agreement which cannot be resolved by the designated Agreement representatives shall be referred in writing to a senior departmental management staff member designated by the State and a senior manager designated by Local Agency for resolution. B. Resolution of Controversies If the initial resolution described in §15.A fails to resolve the dispute within 10 Business Days, Contractor shall submit any alleged breach of this Contract by the State to the Procurement Official of CDOT as described in §24-101-301(30), C.R.S. for resolution in accordance with the provisions of §§24-106-109, 24- 109-101.1, 24-109-101.5, 24-109-106, 24-109-107, 24-109-201 through 24-109-206, and 24-109-501 through 24-109-ge any director of the Department of Personnel and Administration, or their delegate, under the Resolution Statutes before Contractor pursues any further action as permitted by such statutes. Except as otherwise stated in this Section, all requirements of the Resolution Statutes shall apply including, without limitation, time limitations. C. Questions of Fact Except as otherwise provided in this Agreement, any dispute concerning a question of fact arising under this Agreement which is not disposed of by agreement shall be decided by the Chief Engineer of the Department of Transportation. The decision of the Chief Engineer will be final and conclusive unless, within 30 calendar days after the date of receipt of a copy of such written decision, Local Agency mails or otherwise furnishes to the State a written appeal addressed to the Executive Director of CDOT. In connection with any appeal proceeding under this clause, Local Agency shall be afforded an opportunity to be heard and to offer evidence in support of its appeal. Pending final decision of a dispute hereunder, Local Agency shall proceed diligently with the the Executive Director or his duly authorized representative for the determination of such appeals shall be final and conclusive and serve as final agency action. This dispute clause does not preclude consideration of questions of law in connection with decisions provided for herein. Nothing in this Agreement, however, shall be construed as making final the decision of any administrative official, representative,or board on a question of law. 16. NOTICES AND REPRESENTATIVES Each individual identified below shall be the principal representative of the designating Party. All notices required or permitted to be given under this Agreement shall be in writing and shall be delivered (i)by hand with receipt required, (ii) OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 23 of 29 or (iii) as an email with read receipt requested to the principal representative at the email address, if any, set forth below. If a Party delivers a notice to another through email and the email is undeliverable, then, unless the Party has been provided with an alternate email contact, the Party delivering the notice shall deliver the notice by hand forth below. Either Party may change its principal representative or principal representative contact information by notice submitted in accordance with this §16 without a formal amendment to this Agreement. Unless otherwise provided in this Agreement, notices shall be effective upon delivery of the written notice. For the State Colorado Department of Transportation (CDOT) Jason Huddle, Region 3 Environmental Manager R3 222 S. 6th Street, Room 317 Grand Junction, CO 81501 (970) 986-9251 jason.huddle@state.co.us For the Local Agency TOWN OF AVON Jim Horsley, Project Engineer 100 Mikaela Way AVON, CO 81620 (970) 748-4134 jhorsley@avon.org yyyyyyy 17. RIGHTS IN WORK PRODUCT AND OTHER INFORMATION A. Work Product Local Agency hereby grants to the State a perpetual, irrevocable, non-exclusive, royalty free license, with the right to sublicense, to make, use, reproduce, distribute, perform, display, create derivatives of and otherwise exploit all intellectual property created by Local Agency or any Subcontractors. Local Agency assigns to the State and its successors and assigns, the entire right, title, and interest in and to all causes of action, either in law or in equity, for past, present, or future infringement of intellectual property rights related to the Work Product and all works based on, derived from, or incorporating the Work Product. Whether or not Local Agency is under contract with the State at the time, Local Agency shall execute applications, assignments, and other documents, and shall render all other reasonable assistance requested by the State, to enable the State to secure patents, copyrights, licenses and other intellectual property rights related to the Work Product. The Parties intend the Work Product to be works made for hire. i. Copyrights To the extent that the Work Product (or any portion of the Work Product) would not be considered works made for hire under applicable law, Local Agency hereby assigns to the State, the entire right, title, and interest in and to copyrights in all Work Product and all works based upon, derived from, or incorporating the Work Product; all copyright applications, registrations, extensions, or renewals relating to all Work Product and all works based upon, derived from, or incorporating the Work Product; and all moral rights or similar rights with respect to the Work Product throughout the world. To the extent that Local Agency cannot make any of the assignments required by this section, Local Agency hereby grants to the State a perpetual, irrevocable, royalty-free license to use, modify, copy, publish, display, perform, transfer, distribute, sell, and create derivative works of the Work Product and all works based upon, derived from, or incorporating the Work Product by all means and methods and in any format now known or invented in the future. The State may assign and license its rights under this license. ii. Patents OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 24 of 29 In addition, Local Agency grants to the State (and to recipients of Work Product distributed by or on behalf of the State) a perpetual, worldwide, no-charge, royalty-free, irrevocable patent license to make, have made, use, distribute, sell, offer for sale, import, transfer, and otherwise utilize, operate, modify and propagate the contents of the Work Product. Such license applies only to those patent claims licensable by Local Agency that are necessarily infringed by the Work Product alone, or by the combination of the Work Product with anything else used by the State. iii. Assignments and Assistance Whether or not the Local Agency is under Agreement with the State at the time, Local Agency shall execute applications, assignments, and other documents, and shall render all other reasonable assistance requested by the State, to enable the State to secure patents, copyrights, licenses and other intellectual property rights related to the Work Product. The Parties intend the Work Product to be works made for hire. Local Agency assigns to the State and its successors and assigns, the entire right, title, and interest in and to all causes of action, either in law or in equity, for past, present, or future infringement of intellectual property rights related to the Work Product and all works based on, derived from, or incorporating the Work Product. B. Exclusive Property of the State Except to the extent specifically provided elsewhere in this Agreement, any pre-existing State Records, State software, research, reports, studies, photographs, negatives, or other documents, drawings, models, materials, data, and information shall be the Agency shall not use, willingly allow, cause or permit Work Product or State Materials to be used for any ement without the prior written consent of the State. Upon termination of this Agreement for any reason, Local Agency shall provide all Work Product and State Materials to the State in a form and manner as directed by the State. C. Exclusive Property of Local Agency Local Agency retains the exclusive rights, title, and ownership to any and all pre-existing materials owned or licensed to Local Agency including, but not limited to, all pre-existing software, licensed products, associated source code, machine code, text images, audio and/or video, and third-party materials, delivered by Local Agency under this Agreement, whether incorporated in a Deliverable or necessary to use a to the State as set forth in this Agreement or a State approved license agreement: (i) entered into as exhibits to this Agreement, (ii) obtained by the State from the applicable third-party vendor, or (iii) in the case of open source software, the license terms set forth in the applicable open source license agreement. 18. GOVERNMENTAL IMMUNITY Liability for claims for injuries to persons or property arising from the negligence of the Parties, their departments, boards, commissions committees, bureaus, offices, employees and officials shall be controlled and limited by the provisions of the GIA; the Federal Tort Claims Act, 28 U.S.C. Pt. VI, Ch. 171 and 28 U.S.C. 1346(b), and the -30-1501, et seq.C.R.S. The following applies through June 30, 2022: no term or condition of this Contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, contained in these statutes. 19. STATEWIDE CONTRACT MANAGEMENT SYSTEM If the maximum amount payable to Local Agency under this Agreement is $100,000 or greater, either on the Effective Date or at any time thereafter, this §19 shall apply. Local Agency agrees to be governed by and comply with the provisions of §24-106-103, §24-102-206, §24-106-106, §24-106-107 C.R.S. regarding the monitoring of vendor performance and the reporting of contract performance information in the Stat all be subject to evaluation and review in accordance with the terms and conditions of this Agreement, Colorado statutes governing CMS, and State Fiscal Rules and State Controller policies. 20. GENERAL PROVISIONS A. Assignment OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 25 of 29 assigned without the prior, written consent of the State. Any attempt at assignment or transfer without such consent shall be void. Any assignment or tran State shall be subject to the provisions of this Agreement B. Subcontracts Local Agency shall not enter into any subcontract in connection with its obligations under this Agreement without the prior, written approval of the State. Local Agency shall submit to the State a copy of each such subcontract upon request by the State. All subcontracts entered into by Local Agency in connection with this Agreement shall comply with all applicable federal and state laws and regulations, shall provide that they are governed by the laws of the State of Colorado, and shall be subject to all provisions of this Agreement. C. Binding Effect Except as otherwise provided in §20.A.all provisions of this Agreement, including the benefits and burdens, D. Authority Each Party represents and warrants to the other that the execution and delivery of this Agreement and the E. Captions and References The captions and headings in this Agreement are for convenience of reference only, and shall not be used to interpret, define, or limit its provisions. All references in this Agreement to sections (whether spelled out or using the § symbol), subsections, exhibits or other attachments, are references to sections, subsections, exhibits or other attachments contained herein or incorporated as a part hereof, unless otherwise noted. F. Counterparts This Agreement may be executed in multiple, identical, original counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. G. Digital Signatures If any signatory signs this agreement using a digital signature in accordance with the Colorado State Controller Contract, Grant and Purchase Order Policies regarding the use of digital signatures issued under the State Fiscal Rules, then any agreement or consent to use digital signatures within the electronic system through which that signatory signed shall be incorporated into this Contract by reference. H. Entire Understanding This Agreement represents the complete integration of all understandings between the Parties related to the Work, and all prior representations and understandings related to the Work, oral or written, are merged into this Agreement. Prior or contemporaneous additions, deletions, or other changes to this Agreement shall not have any force or effect whatsoever, unless embodied herein. I. Jurisdiction and Venue All suits or actions related to this Agreement shall be filed and proceedings held in the State of Colorado and exclusive venue shall be in the City and County of Denver. J. Modification Except as otherwise provided in this Agreement, any modification to this Agreement shall only be effective if agreed to in a formal amendment to this Agreement, properly executed and approved in accordance with applicable Colorado State law and State Fiscal Rules. Modifications permitted under this Agreement, other than contract amendments, shall conform to the policies promulgated by the Colorado State Controller. K. Statutes, Regulations, Fiscal Rules, and Other Authority. Any reference in this Agreement to a statute, regulation, State Fiscal Rule, fiscal policy or other authority shall be interpreted to refer to such authority then current, as may have been changed or amended since the Effective Date of this Agreement. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 26 of 29 L. Order of Precedence In the event of a conflict or inconsistency between this Agreement and any exhibits or attachment such conflict or inconsistency shall be resolved by reference to the documents in the following order of priority: i. The provisions of the other sections of the main body of this Agreement. ii.Exhibit N, Federal Treasury Provisions. iii.Exhibit F, Certification for Federal-Aid Contracts. iv.Exhibit G, Disadvantaged Business Enterprise. v.Exhibit I, Federal-Aid Contract Provisions for Construction Contracts. vi.Exhibit J, Additional Federal Requirements. vii.Exhibit K, Federal Funding Accountability and Transparency Act of 2006 (FFATA) Supplemental Federal Provisions. viii.Exhibit L, Sample Sub-Recipient Monitoring and Risk Assessment Form. ix.Exhibit M, Supplemental Provisions for Federal Awards Subject to The Office of Management and Budget Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal . x.Exhibit O, Agreement with Subrecipient of Federal Recovery Funds. xi.Exhibit R. Applicable Federal Awards. xii Colorado Special Provisions in the main body of this Agreement. xiii.Exhibit A, Scope of Work. xiv.Exhibit H, Local Agency Procedures for Consultant Services. xv.Exhibit B, Sample Option Letter. xvi.Exhibit C, Funding Provisions. xvii.Exhibit P, SLFRF Subrecipient Quarterly Report. xviii.Exhibit Q, SLFRF Reporting Modification Form. xix.Exhibit D, Local Agency Resolution. xx.Exhibit E, Local Agency Contract Administration Checklist. xxi.Exhibit S, PII Certification. xxii.Exhibit T, Checklist of Required Exhibits Dependent on Funding Source. xxiii. Other exhibits in descending order of their attachment. M. Severability The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect, provided that the Parties can continue to perform their obligations under this Agreement in accordance with the intent of the Agreement. N. Survival of Certain Agreement Terms Any provision of this Agreement that imposes an obligation on a Party after termination or expiration of the Agreement shall survive the termination or expiration of the Agreement and shall be enforceable by the other Party. O. Third Party Beneficiaries §20.C,this Agreement does not and is not intended to confer any rights or remedies upon any person or entity other than the Parties. Enforcement of this Agreement and all rights and obligations hereunder are reserved solely to the Parties. Any services or benefits which third parties receive as a result of this Agreement are incidental to the Agreement, and do not create any rights for such third parties. P. Waiver or by lack of enforcement, shall not operate as a waiver, nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise of such right, power, or privilege. Q. CORA Disclosure To the extent not prohibited by federal law, this Agreement and the performance measures and standards required under §24-106-107 C.R.S., if any, are subject to public release through the CORA. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 27 of 29 R. Standard and Manner of Performance Local Agency shall perform its obligations under this Agreement in accordance with the highest standards of S. Licenses, Permits, and Other Authorizations. Local Agency shall secure, prior to the Effective Date, and maintain at all times during the term of this Agreement, at its sole expense, all licenses, certifications, permits, and other authorizations required to perform its obligations under this Agreement, and shall ensure that all employees, agents and Subcontractors secure and maintain at all times during the term of their employment, agency or subcontract, all license, certifications, permits and other authorizations required to perform their obligations in relation to this Agreement. T. Compliance with State and Federal Law, Regulations, and Executive Orders Local Agency shall comply with all State and Federal law, regulations, executive orders, State and Federal Awarding Agency policies, procedures, directives, and reporting requirements at all times during the term of this Agreement. U. Accessibility i. Local Agency shall comply with and the Work Product provided under this Agreement shall be in compliance with all applicable provisions of §§24-85-101, et seq., C.R.S., and the Accessibility Standards for Technology (OIT), pursuant to Section §24-85-103 (2.5), C.R.S. Local Agency shall also comply with all State of Colorado technology standards related to technology accessibility and with Level AA of the most current version of the Web Content Accessibility Guidelines (WCAG), incorporated in the State of Colorado technology standards. ii. Each Party agrees to be responsible for its own liability incurred as a result of its participation in and performance under this Agreement. In the event any claim is litigated, each Party will be responsible for tion, or other costs. No provision of this Agreement shall be deemed or construed to be a relinquishment or waiver of any kind of the applicable limitations of liability provided to either the Local Agency or the State by the Colorado Governmental Immunity Act, C.R.S. § 24-10-101, et seq. and Article XI of the Colorado Constitution. Nothing in the Agreement shall be construed as a waiver of any provision of the State Fiscal Rules. iii. is in compliance with §§24-85-101, et seq., C.R.S., and the Accessibility Standards for Individuals with a Disability as established by OIT pursuant to Section §24-85-103 (2.5), C.R.S. V. Taxes The State is exempt from federal excise taxes under I.R.C. Chapter 32 (26 U.S.C., Subtitle D, Ch. 32) (Federal Excise Tax Exemption Certificate of Registry No. 84-730123K) and from State and local government sales and use taxes under §§39-26-704(1), et seq.,C.R.S. (Colorado Sales Tax Exemption Identification Number 98-02565). The State shall not be liable for the payment of any excise, sales, or use taxes, regardless of whether any political subdivision of the state imposes such taxes on Local Agency. Local Agency shall be solely responsible for any exemptions from the collection of excise, sales or use taxes that Local Agency may wish to have in place in connection with this Agreement. 21. COLORADO SPECIAL PROVISIONS (COLORADO FISCAL RULE 3-3) These Special Provisions apply to all contracts. Contractor refers to Local Agency. A. STATUTORY APPROVAL. §24-30-202(1), C.R.S. This Contract shall not be valid until it has been approved by the Colorado State Controller or designee. If this Contract is for a Major Information Technology Project, as defined in §24-37.5-102(2.6), then this Contract shall not be valid until it has b B. FUND AVAILABILITY. §24-30-202(5.5), C.R.S. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 28 of 29 Financial obligations of the State payable after the current State Fiscal Year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. C. GOVERNMENTAL IMMUNITY. Liability for claims for injuries to persons or property arising from the negligence of the Parties, its departments, boards, commissions committees, bureaus, offices, employees and officials shall be controlled and limited by the provisions of the Colorado Governmental Immunity Act, §24-10-101, et seq., C.R.S.; the Federal Tort Claims Act, 28 U.S.C. Pt statutes, §§24-30-1501, et seq. C.R.S. No term or condition of this Contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions, contained in these statutes. D. INDEPENDENT CONTRACTOR Contractor shall perform its duties hereunder as an independent contractor and not as an employee. Neither Contractor nor any agent or employee of Contractor shall be deemed to be an agent or employee of the State. Contractor shall not have authorization, express or implied, to bind the State to any agreement, liability or understanding, except as expressly set forth herein. Contractor and its employees and agents are not entitled to unemployment insurance or workers compensation benefits through the State and the State shall not pay for or otherwise provide such coverage for Contractor or any of its agents or employees. Contractor shall pay when due all applicable employment taxes and income taxes and local head taxes incurred pursuant to this Contract. Contractor shall (i) provide and keep in force workers' compensation and unemployment compensation insurance in the amounts required by law, (ii) provide proof thereof when requested by the State, and (iii) be solely responsible for its acts and those of its employees and agents. E. COMPLIANCE WITH LAW. Contractor shall comply with all applicable federal and State laws, rules, and regulations in effect or hereafter established, including, without limitation, laws applicable to discrimination and unfair employment practices. F. CHOICE OF LAW, JURISDICTION, AND VENUE. Colorado law, and rules and regulations issued pursuant thereto, shall be applied in the interpretation, execution, and enforcement of this Contract. Any provision included or incorporated herein by reference which conflicts with said laws, rules, and regulations shall be null and void. All suits or actions related to this Contract shall be filed and proceedings held in the State of Colorado and exclusive venue shall be in the City and County of Denver. G. PROHIBITED TERMS. Any term included in this Contract that requires the State to indemnify or hold Contractor harmless; requires injury, or damage to tangible property; or that conflicts with this provision in any way shall be void ab initio. Nothing in this Contract shall be construed as a waiver of any provision of §24-106-109 C.R.S. Any term not void under this section shall apply only in excess of any insurance to be maintained under this Contract, and no insurance policy shall be interpreted as being subject to any limitations of liability of this Contract. H. SOFTWARE PIRACY PROHIBITION. State or other public funds payable under this Contract shall not be used for the acquisition, operation, or maintenance of computer software in violation of federal copyright laws or applicable licensing restrictions. Contractor hereby certifies and warrants that, during the term of this Contract and any extensions, Contractor has and shall maintain in place appropriate systems and controls to prevent such improper use of public funds. If the State determines that Contractor is in violation of this provision, the State may exercise any remedy available at law or in equity or under this Contract, including, without limitation, immediate termination of this Contract and any remedy consistent with federal copyright laws or applicable licensing restrictions. I. EMPLOYEE FINANCIAL INTEREST/CONFLICT OF INTEREST. §§24-18-201 and 24-50-507, C.R.S. OLA #: 331003224 Routing #: 24-HA3-XC-00247 Document Builder Generated Rev. 05/24/2022 Page 29 of 29 The signatories aver that to their knowledge, no employee of the State has any personal or beneficial interest whatsoever in the service or property described in this Contract. Contractor has no interest and shall not acquire any interest, direct or indirect, that would conflict in any manner or degree with the performance of 22. FEDERAL REQUIREMENTS Local Agency and/or their contractors, subcontractors, and consultants shall at all times during the execution of this Agreement strictly adhere to, and comply with, all applicable federal and State laws, and their implementing regulations, as they currently exist and may hereafter be amended. A summary of applicable federal provisions are attached hereto as Exhibit F,Exhibit I,Exhibit J,Exhibit K,Exhibit M, Exhibit N and Exhibit O are hereby incorporated by this reference. 23. DISADVANTAGED BUSINESS ENTERPRISE (DBE) Local Agency will comply with all requirements of Exhibit G and Exhibit E,Local Agency Contract Administration Checklist, regarding DBE requirements for the Work, except that if Local Agency desires to use its own DBE program to implement and administer the DBE provisions of 49 C.F.R. Part 26 under this Agreement, it must submi execution of this Agreement. If Local Agency uses any State- approved DBE program for this Agreement, Local Agency shall be solely responsible to defend that DBE program and its use of that program against all legal and other challenges or complaints, at its sole cost and expense. Such responsibility includes, without limitation, determinations concerning DBE eligibility requirements and certification, adequate legal and factual bases for or modify the sole responsibility of Local Agency for use of its program. Exhibit A - Page 1 of 1 EXHIBIT A SCOPE OF WORK Name of Project: Town of Avon West Beaver Creek Blvd. Bridge Project Number: BRO M058-005 SubAccount #: 25978 The 25978 bridge rehabilitation project is proposed to address all structural items identified in the Maintenance Activity Summary of the most recent CDOT Structure Inspection and Inventory Report by Short Elliott Hendrickson Inc. (SEH) dated 06/18/2020 and improve structure rating from Fair to Good. By accepting funds for this Scope of Work, Local Agency acknowledges, understands, and accepts the continuing responsibility for the safety of the traveling public after initial acceptance of the project.Local Agency is responsible for maintaining and operating the scope of work described in this Exhibit A constructed under this Agreement at its own cost and expense during its useful life. THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK Exhibit B - Page 1 of 2 EXHIBIT B SAMPLE IGA OPTION LETTER Date State Fiscal Year Option Letter No. Project Code Original Agreement # Vendor Name: Option to unilaterally add phasing to include Design, Construction, Environmental, Utilities, ROW incidentals or Miscellaneous and to update encumbrance amount(s). Option to unilaterally transfer funds from one phase to another phase. Option to unilaterally add phasing to include Design, Construction, Environmental, Utilities, ROW incidentals or Miscellaneous, to update encumbrance amount(s), and to unilaterally transfer funds from one phase to another phase. Option to unilaterally extend the term of this Agreement and/or update a Work Phase Performance Period and/or modify OMB Guidance. Option A In accordance with the terms of the original Agreement between the State of Colorado, Department of Transportation and the Local Agency, the State hereby exercises the option to authorize the Local Agency to add a phase and to encumber funds for the phase based on changes in funding availability and authorization. The total encumbrance is (or increased) by $0.00. A new Exhibit C-1 is made part of the original Agreement and replaces Exhibit C. Option B In accordance with the terms of the original Agreement between the State of Colorado, Department of Transportation and the Local Agency, the State hereby exercises the option to transfer funds based on variance in actual phase costs and original phase estimates. A new Exhibit C-1 is made part of the original Agreement and replaces Exhibit C. Option C In accordance with the terms of the original Agreement between the State of Colorado, Department of Transportation and the Local Agency, the State hereby exercises the option to 1) release the Local Agency to begin a phase; 2) to encumber funds for the phase based upon changes in funding availability and authorization; and 3) to transfer funds from phases based on variance in actual phase costs and Exhibit B - Page 2 of 2 original phase estimates. A new Exhibit C-1 is made part of the original Agreement and replaces Exhibit C. Option D In accordance with the terms of the original Agreement between the State of Colorado, Department of Transportation and the Local Agency, the State hereby exercises the option extend the term of this Agreement and/or update a Work Phase Performance Period and/or modify information required under the OMB Uniform Guidance, as outlined in Exhibit C. This is made part of the original Agreement and replaces the Expiration Date shown on the Signature and Cover Page. Any updated version of Exhibit C shall be attached to any executed Option Letter as Exhibit C-1 (with subsequent exhibits labeled C-2, C-3, etc.). The effective date of this option letter is upon approval of the State Controller or delegate. STATE OF COLORADO Jared S. Polis Department of Transportation By: ___________________________________________ , P.E., Chief Engineer (For) Shoshana M. Lew, Executive Director Date: _________________________________________ ALL AGREEMENTS MUST BE APPROVED BY THE STATE CONTROLLER CRS §24-30-202 requires the State Controller to approve all State Agreements. This Agreement is not valid until signed and dated below by the State Controller or delegate. Contractor is not authorized to begin performance until such time. If the Local Agency begins performing prior thereto, the State of Colorado is not obligated to pay the Local Agency for such performance or for any goods and/or services provided hereunder. STATE OF COLORADO STATE CONTROLLER Robert Jaros, CPA, MBA, JD By: ______________________________________ Colorado Department of Transportation Date:__________________________________ Fed $ LA Work Exhibit C- Page 1 of 2 EXHIBIT C- FUNDING PROVISIONS Town of Avon BRO M058-005 (25978) A. Cost of Work Estimate The Local Agency has estimated the total cost the Work to be $435,496.00, which is to be funded as follows: 1. FUNDING a. Federal Funds (80% of BRO Award) $348,397.00 b. Local Agency Funds (20% of BRO Award) $ 87,099.00 ____________________________________________________________________________________ TOTAL FUNDS ALL SOURCES $435,496.00 ____________________________________________________________________________________ 2. OMB UNIFORM GUIDANCE a. Federal Award Identification Number (FAIN): TBD b. Name of Federal Awarding Agency: FHWA c. Local Agency Unique Entity Identifier R9Q7L4C1QKK5 d. Assistance Listing # Highway Planning and Construction ALN 20.205 e. Is the Award for R&D? No f. Indirect Cost Rate (if applicable) N/A g. Amount of Federal Funds Obligated by this Action: $ 0.00 h. Amount of Federal Funds Obligated to Date (including this Action): $ 0.00 ____________________________________________________________________________________ 3. ESTIMATED PAYMENT TO LOCAL AGENCY a. Federal Funds Budgeted $348,397.00 b. Less Estimated Federal Share of CDOT-Incurred Costs $ 0.00 ____________________________________________________________________________________ TOTAL ESTIMATED PAYMENT TO LOCAL AGENCY 80% $348,397.00 TOTAL ESTIMATED FUNDING BY LOCAL AGENCY 20% $ 87,099.00 TOTAL PROJECT ESTIMATED FUNDING 100.00% $435,496.00 ____________________________________________________________________________________ 4. FOR CDOT ENCUMBRANCE PURPOSES BRO M058-005 (25978) a. Total Encumbrance Amount (Federal funds + Local Agency funds) $435,496.00 b. Less ROW Acquisition 3111 and/or ROW Relocation 3109 $ 0.00 ____________________________________________________________________________________ NET TO BE ENCUMBERED BY CDOT IS AS FOLLOWS $435,496.00 ____________________________________________________________________________________ Note: No funds are currently available. Additional funds will become available after execution of an Option letter (Exhibit B) or formal Amendment. BRO M058-005 (25978) WBS Element 25978.10.30 Performance Period Start*/End Date Design 3020 $ 0.00 TBD-TBD WBS Element 25978.20.10 Performance Period Start*/End Date Const. 3301 $ 0.00 TBD- TBD ____________________________________________________________________________________ * The Local Agency should not begin work until all three (3) of the following are in place: 1) Phase Performance Period Start Date; 2) the execution of the document encumbering funds for the respective phase; and 3) Local Agency receipt of the official Notice to Proceed. Any work performed before these three (3) milestones are achieved will not be reimbursable. B. Funding Ratios The funding ratio for the federal funds for this Work is 80% federal funds to 20% Local Agency funds, and this ratio applies only to the $435,496.00 that is eligible for federal funding. All other costs are borne by Exhibit C- Page 2 of 2 the Local Agency at 100%. If the total cost of performance of the Work exceeds $435,496.00, and additional federal funds are not available, the Local Agency shall pay all such excess costs. If the total cost of performance of the Work is less than $435,496.00, then the amounts of Local Agency and federal funds will be decreased in accordance with the funding ratio described in A1.This applies to the entire scope of Work. C. Maximum Amount Payable The maximum amount payable to the Local Agency under this Agreement shall be $348,397.00. For CDOT accounting purposes, the federal funds of $348,397.00 and the Local Agency funds of $87,099.00 will be encumbered for a total encumbrance of $435,496.00, unless this amount is increased by an executed amendment before any increased cost is incurred. The total budget of this funding source is $435,496.00, unless this amount is increased by an executed amendment before any increased cost is incurred. The total cost of the Work is the best estimate available, based on the design data as approved at the time of execution of this Agreement, and that any cost is subject to revisions agreed to by the parties prior to bid and award. The maximum amount payable will be reduced without amendment when the actual the Local Agency funds. The maximum amount payable will be reduced through the execution of an Option Letter as described in Section 7. E. of this contract. This applies to the entire scope of Work. D. Single Audit Act Amendment All state and local government and non-profit organizations receiving $750,000 or more from all funding sources defined as federal financial assistance for Single Audit Act Amendment purposes shall comply with the audit requirements of 2 CFR part 200, subpart F (Audit Requirements) see also, 49 CFR 18.20 through 18.26. The Single Audit Act Amendment requirements applicable to the Local Agency receiving federal funds are as follows: i. Expenditure less than $750,000 If the Local Agency expends less than $750,000 in Federal funds (all federal sources, not just Highway funds) in its fiscal year then this requirement does not apply. ii. Expenditure of $750,000 or more-Highway Funds Only If the Local Agency expends $750,000 or more, in Federal funds, but only received federal Highway funds (Catalog of Federal Domestic Assistance, CFDA 20.205) then a program specific this program area. iii. Expenditure of $750,000 or more-Multiple Funding Sources If the Local Agency expends $750,000 or more in Federal funds, and the Federal funds are from multiple sources (FTA, HUD, NPS, etc.) then the Single Audit Act applies, which is an audit on the entire organization/entity. iv. Independent CPA Single Audit shall only be conducted by an independent CPA, not by an auditor on staff. An audit is an allowable direct or indirect cost. (970) 748-4087 ewood@avon.org TO: Honorable Mayor Underwood and Council members FROM: Elizabeth Wood, Communications & Marketing Manager RE: Avon Parking Survey DATE: February 5, 2025 OVERVIEW: The Town of Avon implemented a phased approach to its paid on-street and managed parking program beginning in December 2023. Managed parking lots include the Avon Recreation Center, Avon Public Library, and Avon Town Hall. On-street paid parking areas include East and West Benchmark Roads, Lake Street and West Beaver Creek Boulevard. In these areas, residents and guests are required to register to park and receive three hours of free parking, followed by a $1 per hour rate between the hours of 8:00 a.m. and 5:00 p.m. Free parking is available at 1 Lake Street. There is no overnight parking in Town without approval. The 2024 Avon Community Survey reported concerns about parking from many survey respondents. A subsequent five-question parking survey was conducted from December 2, 2024 through January 21, 2025. The survey received 1,121 complete submissions. View an interactive dashboard of survey results. Question 1: Do you live in Avon? Question 2: How often do you park in the commercial core of Avon? Page 2 of 6 Question 3: Do you usually park on public Town property or private parking? Question 4: Have you reduced or avoided trips to Avon’s commercial core due to parking management? Question 5: Do you have more to say about parking in Avon? The survey received 798 open-ended responses. Most responses expressed negative sentiments, with common themes including parking on Hoffman Properties, requests for free summer parking, a lack of clarity around parking signs in private lots, and frustration about having to register to park for free. Nearly 12% of open-ended responses mentioned Hoffman Properties directly, while over 10% of responses addressed the impact on local businesses. Many comments directly address Question 4, with people stating that they avoid Avon businesses due to the paid parking program. Other comments specifically address parking challenges for employees of Avon businesses. Responses Filtered by Avon Residents When survey responses are filtered by the 421 respondents who are Avon residents, results overwhelmingly suggest major impacts due to parking management, with notable reductions or avoidance of trips to the commercial core. Question 2: How often do you park in the commercial core of Avon? (filtered by 421 Avon residents) Page 3 of 6 Question 3: Do you usually park on public Town property or private parking? (filtered by Avon residents) Question 4: Have you reduced or avoided trips to Avon’s commercial core due to parking management? (filtered by Avon residents) ADDITIONAL INFORMATION Free parking at 1 Lake Street will be unavailable beginning in April 2025 due to the East Nottingham Park Improvements Project, which includes the construction of restrooms. Additionally, the Avon Recreation Center West Lot will have restricted parking during the summer as Public Works equipment is staged there due to construction. This will reduce available parking by 76 free spots at 1 Lake Street and a number of 3- Daily (31.8%) Weekdays (21.1%) Weekends (7.8%) A Few Times a Month (36.8%) Never (2.3%) Town Owned Parking or Street (21.1%) Private Parking Lot (11.4%) Both (62.9%) Not Sure (4.5%) No (4.8%) Yes, a little (22.8%) Yes, a lot (55.6%) I don’t park in Avon’s commercial core anymore (16.9%) Page 4 of 6 hour spots at 90 Lake Street, further impacting parking throughout the summer and fall, during peak events season. FINANCIAL CONSIDERATIONS The parking program's expenses cover wages, benefits, and equipment for two full-time Code Enforcement Officers, as well as a dedicated vehicle and ongoing operational costs for parking management software and tools. Personnel Costs: •Salary per officer: $73,730 •Benefits (45%): $33,178 •Total cost per officer: $106,908 •Uniforms and equipment: ~$2,000 per officer Vehicle Costs: •Ford Lightning F-150 EV (including graphics, emergency equipment, and installation): $80,000 •Additional equipment installation and miscellaneous costs: $9,000 •Ongoing equipment replacement for vehicle: $12,000 per year Capital Investment: •Variable Message Board (being mounted on F-150 Lightning for emergencies and motor vehicle collisions): $14,312 Initial set costs for parking management program •Software, license plate system, in car computer, handheld devices and parking mapping, miscellaneous costs to include ticket paper etc. $68,222.37 in 2023 and $15,707 in 2024 for a total set up cost of $83,929 •Initial signage, manufacturer and installation $21,873 •Ongoing annual costs for the T2 parking management system $17,558 •Recreation center patron registration costs: In mid-2024, following extensive patron feedback, we transitioned the registration platform to the Pay2Park program. Recreation patrons have found this platform more intuitive to use. However, each transaction incurs a $0.41 processing fee. The total cost of providing this platform in 2024 was $15,472, and so far in 2025, the cost is $5,957 PARKING REVENUE: 2024 $9,018.00 from Pay to Park and $1,456.00 from Tickets 2025 through February $4,214.00 Pay to Park and $640.00 Tickets Total $15,328.00 Page 5 of 6 PARKING PROGRAM STATISTICS (Dec 2023 - March 26, 2025) Parking Permits Issued: •Town of Avon Employees: 248 •Avon Library Employees: 43 •Skier Parking Permits: 44 •Town Hall Users: 343 •Avon Recreation Center: 58,289 total transactions o 29,292 regular permits o 28,997 Pay2Park transactions Enforcement Activity: •Total warnings issued: 1,664 (94.98%) •Total tickets issued: 88 (5.02%) o Paid: 47 o Open: 41 o In collections: 18 •Ticket disputes: 15 o 7 adjudicated and closed with warnings o 6 dismissed o 1 denied, subsequently paid o 1 contested late fee (waived, then paid) Top Enforcement Locations: •Avon Recreation Center (50.57%) •W Benchmark Rd (30.0%) •Lake Street (9.82%) •W Beaver Creek Blvd (2.05%) •Riverfront Lane (1.83%) •Town Hall (1.43%) •Avon Library (0.91%) Community Engagement: Staff from the Recreation Center and Code Enforcement officers worked diligently to educate patrons on using the new permitting and registration platform. ADDITIONAL CODE ENFORCEMENT DUTIES Beyond parking enforcement, Code Enforcement Officers are responsible for a variety of duties, including: •Community development enforcement: Complaint follow-ups and general enforcement •Public engagement: Addressing concerns related to parks and the West Avon Preserve Page 6 of 6 •Animal welfare: Handling municipal code violations, including leash laws and wildlife protection •Abandoned vehicle enforcement •General visitor assistance: Providing directions, roadside assistance, and tourist information •Traffic assistance: Responding to minor private property collisions and facilitating insurance exchanges. Assist with traffic control on collisions and traffic diversions on Interstate 70. •Crime prevention initiatives: Supporting National Night Out, Neighborhood Watch, and police- community programs •Public education: Engaging schools, community children’s programs, and citizen groups •Liaison duties: Working with County Animal Services •Vehicle inspections: Conducting VIN verification for the public •Noise, noxious weed, and building code enforcement •Park and Preserve patrols: Addressing off-leash violations •Other duties as assigned PARKING PROGRAM SUCCESSES The parking program has significantly improved accessibility and organization at key locations, including the Recreation Center, Town Hall, and the library. Notable achievements include: •Ensuring consistent and available parking for public facilities •Streamlining visitor and permit holder management •Maintaining steady use of on-street parking along East and West Benchmark, Lake Street, and West Beaver Creek Boulevard •Implementing process improvements based on patron feedback, particularly making Recreation Center registration more convenient and user-friendly Thank you, Liz ATTACHMENTS: Attachment A: Parking Management Program Report 10.08.2024 (970) 748-4040 gdaly@avon.org TO: Honorable Mayor Phillips and Avon Town Council Members FROM: Administrative Manager Krista Jaramillo and Chief Greg Daly RE: Parking Management Program Update DATE: October 08, 2024 OVERVIEW: The Town of Avon has implemented a phased approach to its paid on-street and managed parking program, beginning in June 2023. This memo outlines the project’s key milestones, financials, enforcement statistics, and overall success since its initiation. The objective is to update the Avon Town Council on the parking program's status, provide relevant data, and suggest improvements for future phases. Free Parking: is available at 1 Lake Street, better known as Old Town Hall, and the Avon Elementary School during the summer when school is not in session. Overnight parking is not permitted unless otherwise approved. Managed Parking: Lots include the Avon Recreation Center, Avon Public Library, Avon Town Hall, and the North Parking Lot. These lots allow patrons and visitors to park for three hours free of charge. All lots except the North lot require registration at the respective bu ilding to which the car park belongs. The North lot and River Front Lane have limited 10-minute drop-off spaces. Vehicles parked in these locations beyond the posted time limits or that did not register as required are subject to a park ing ticket. Paid Parking: Areas include East Benchmark and West Benchmark Road, Lake Street, and West Beaver Creek Boulevard. Residents and guests will be provided with free parking for the first three hours and then required to pay a per-hour rate of $1. Parking will be regulated between 8 a.m. and 5 p.m., seven days a week, 365 days a year. There will be no overnight parking unless the Avon Police Department has approved it. KEY MILESTONES •6/2023: The Police Department took over leadership of Mobility's paid/managed parking program. •7/2023: Vendors were re-evaluated, and the hiring process for two Code Enforcement Officers began. •8/2023: Two Code Enforcement Officers started, and T2 Systems was chosen as the parking vendor. •10/2023: The municipal code was revised to align with the parking program. •11/2023: Skier parking permits for Town Hall were issued. •12/2023: Public notification through town newsletter, media releases, webpages, and social media. Phase 1 of the parking program was implemented on 12/18, covering key locations with three hours of free parking and designated drop -off zones. Free all-day parking was offered at 1 Lake Street. •1/2024: Phase 2 was launched on 1/22, introducing paid parking at several streets, including East and West Benchmark Rd, Lake Street, and W Beaver Creek Blvd. ATTACHMENT A Page 2 of 2 Thank you, Krista and Greg •7/2024: A change to the registration process at the Avon Recreation Center transitioning to the Pay2Park platform. Three-hour complimentary parking remains despite the title of the application. This platform seems to be more user-friendly. FINANCES: The parking program's expenses include wages, benefits, and equipment for two full-time Code Enforcement Officers and one vehicle, along with costs for parking management software, tools, and equipment, which totaled $68,222.37 in 2023 and are projected to be $16,604.43 in 2024. Additional expenses include $19,801.50 for parking signs and $612.50 for car decals. On the revenue side , through August 30, 2024, the program has generated $6,732.00 from on -street parking and $1,076.25 from ticket fines. W Benchmark Road generates the most on-street revenue, followed by Lake Street. STATISTICS: Between December 2023 and August 2024, 208 parking permits were issued to Town of Avon employees, 35 to Avon Library employees, 31 skier parking permits, and 201 to Town Hall users. The Avon Recreation Center saw the highest permits, with 32,667 total permits issued, including 29,125 regular permits and 3,542 Pay2Park transactions. Enforcement activity during this period included 1,021 warnings (95.79%) and 43 tickets (4.21%), of which 22 were paid, five were dismissed, three were issued, and 13 went to collections. There were six disputed tickets. Three were adjudicated and closed with warnings, one was denied, and they subsequently paid. One contested the late fee, which was waived and then paid. One was dismissed The top enforcement locations were the Avon Recreation Center (50.7%), W Benchmark Rd (27.6%), Lake Street (12.6%), W Beaver Creek Blvd (2.4%), Town Hall (1.6%), Avon Library (1.5%), and Riverfront Lane (1%). Staff from the Rec center and Code Enforcement officers worked hard to educate and show patrons how to use the new permitting and registration platform. SUCCESSES: The parking program has created consistent and available parking at key locations, including the Recreation Center, Town Hall, and the Library. This has improved access to these public facilities and streamlined visitor management. AREAS FOR IMPROVEMENT: •Event/Concert Parking: More comprehensive planning is needed to accommodate increased parking demand during events and concerts. •Oversized Vehicle Parking: There is a need to address parking accommodations for oversized vehicles. Currently upon request the Police Department has authorized temporary overnight parking at 1 Lake Street. •School Parking: Parking management at Avon Elementary School during school hours requires additional attention, particularly with activities like Pickleball. CONCLUSION: The phased implementation of the paid and managed parking program has effectively regulated parking availability and compliance across the town. With ongoing improvements, particularly in high-demand areas, the program can continue to benefit the Town of Avon and its residents. Recommendations for the next phase will focus on enhancing events and oversized vehicle parking. Avon Community Housing Policies pliermann@avon.org March 31, 2025 Page 1 of 3 TO: Honorable Mayor Tamra N. Underwood and Council members FROM: Patti Liermann, Housing Planner RE: Resolution 25-01: Avon Community Housing Policies DATE: March 31, 2025 SUMMARY: This report provides the annual update to the Avon Community Housing Policies (“ACHP”), established in 2023. Work Sessions were held with Town Council (“Council”) on November 19, 2024 and March 25, 2025. This report reflects revisions and decisions by Council during those sessions. BACKGROUND: Council has identified Community Housing as a high priority. In reviewing existing policies, Staff determined the previous Town of Avon Housing Guidelines were severely outdated and recommended their replacement. Staff worked with Council and presented proposed new policies at 3 separate hearings in 2023. The policies were approved at the fourth reading. The 2023 ACHP was approved in September 2023 replacing the 1990-1991 Town of Avon Housing Guidelines (“Guidelines”) in their entirety. The previous Guidelines were outdated and no longer aligned with standard industry practices. The purpose of the ACHP is to provide administration and technical details for current and future deed restrictions on Avon Community Housing Units (“ACHU”) within the Town of Avon (“Town”). Annual updates are expected to keep the policies up to date. The March 25, 2025 Work Session included a Summary Table and draft ACHP based on revisions requested by Council. During that Work Session, additional policy items were discussed by Council. Attached to this report is a summary table of revisions received during the March 25, 2025 Work Session and the accompanying 2025 ACHP with the deed restriction templates. These templates will be used for the creation of new units and new developments. The replacement of existing deed restrictions will be reviewed separately. INTENTION OF THE ACHP • The ACHP serves as a policy document detailing the administration of the deed restrictions. For example, a deed restriction may state that a selection process will determine the buyer or that an owner may add permitted capital improvements to their unit’s maximum sales price. o The ACHP provides the “who”, “what”, and “when” to administer the deed restriction. For example, what the buyer selection process is or, what items are recognized as capital improvements and what the depreciation schedule is for those items. • The ACHP addresses policy but not procedure. Staff or the Program Administrator will apply more detailed procedure where necessary. • The ACHP is a generalized policy document that is subordinate to the recorded deed restriction in the hierarchy of documents. The ACHP is more detailed but not less restrictive. This relationship is much like zoning and covenants. Covenants can be more restrictive than zoning. There should not be conflict between the two but in the event there is, the higher of the two documents will rule. • The ACHP does not identify overarching Housing Goals or priorities. Those are set in the 2021 Avon Housing Plan adopted by Council, which is approaching an update. Avon Community Housing Policies pliermann@avon.org March 31, 2025 Page 2 of 3 • The ACHP is primarily used and read by Staff as a technical document. It is made available to developers, buyers, owners, sellers, and renters of deed restricted units. Frequently, owners or buyers contact Staff or the Program Administrator for guidance and are walked through the document for any clarification. For example: o A developer interested in building in Avon will be provided with the ACHP. Chapter 3 provides information regarding the minimum required elements of a deed restriction, based on the type of project they are contemplating. o A buyer interested in purchasing a price capped deed restricted unit will read Chapters 4, 5, 6, and 8. Staff or the Program Administrator reviews the deed restriction and ACHP with buyers during the purchase period and explains which chapters are applicable and why. o An owner who is remodeling their kitchen will read Chapter 6 to learn what capital improvements are allowed, what the depreciation categories are for those improvements, and what is needed to submit to the Program Administrator for inclusion in their Maximum Sales Price. • As a policy document, the best practice is to review and make necessary periodic modifications. Staff’s intention is to review the ACHP annually and when necessary, make recommendations to Council for re-adoption. There could come a time when an older recorded deed restriction conflicts with changes made to the ACHP. In that case, the provision of the deed restriction will prevail, until an older deed restriction is replaced, and points to the ACHP. • The benefit of a two-document system is the adaptability to changing times and practices. As our world changes, we can change too. With binding concepts in the recorded deed restriction that point to administrative policies in the ACHP, an owner is less likely to be locked into outdated provisions and references. o The two-document system has become standard practice within Towns and Housing Authorities throughout Colorado. CHANGES TO ACHP: Council provide guidance during the March 25, 2025 Work Session on certain policy items. A summary table is attached as Exhibit A, including: • Modified program name EHOP to MEHOP. • Addressed acquiring property after purchase of a deed restricted unit. • Modified the buyer selection process to include Residency and Work history. • Clarified that title transfers have a specific amount of time to become Eligible Households. • Added a minimum number of days for advertising a price capped unit for sale. • Clarified discretion of Program Administrator and Appeal procedure to Town Manager. CHANGES TO FORMS OF DEED RESTRICTIONS: Staff worked with the Town Attorney to update both the Price Capped and Resident Occupied deed restrictions. They reflect the most up to date industry practices, integrate seamlessly with the ACHP, and align terminology with partner jurisdictions. Avon Community Housing Policies pliermann@avon.org March 31, 2025 Page 3 of 3 Price Capped Deed Restriction Resident Occupied Deed Restriction Mi Casa Avon – no changes RECOMMENDATION: Staff recommends that the Town Council approve Resolution 25-01, adopting the 2025 Avon Community Housing Policies as presented. In approving this Resolution, the 2025 Avon Community Housing Policies (“ACHP”) will replace the 2023 Avon Community Housing Policies. Thank you, Patti ATTACHMENTS: A. Summary Table of ACHP Revisions B. Proposed Resolution EX 1. 2025 Avon Community Housing Policies EX 2. Price Capped Deed Restriction Template EX 3. Resident Occupied Deed Restriction Template ATTACHMENT A SUMMARY TABLE 2: Avon Community Housing Policies Revisions Staff presented recommended revisions and formatting changes to the Avon Community Housing Policies (“ACHP”) at the March 25, 2025 Town Council meeting. The following is a summary table of the additional revisions and the chapters that were discussed during that meeting. Where only minor changes are proposed, these changes are shown using a simple redline. CHAPTER 2 DEFINITIONS EHOP vs. MEHOP Modified. EHOP is now MEHOP (Municipal Employee Home Ownership Program) Remote Workers Modified. Where available, language stating “remote work benefitting Eagle County” has been added. In Ch 2 Definitions, Eagle County Employee is the Avon Municipal Code definition and cannot be changed until the AMC is changed. CHAPTER 4 ELIGIBILITY AND SELECTION OF FOR SALE UNITS Chapter 4.B.1.d Added. This section adds that “Members of an Eligible Household who acquire improved residential real property outside of the State of Colorado, and only after their initial purchase of the Community Housing Unit, may be exempted from this requirement at the discretion of the Program Administrator. Chapter 4.E.1.b Modified. Residency has been added to history allowed for lottery entries. CHAPTER 5 OCCUPANTS | REQUIREMENTS FOR OWNERS AND RENTERS OF FOR SALE UNITS Chapter 5.G Clarification. Trust section states the Owner must request a variance in writing for special review by the Program Administrator. Any appeal of the Program Administrator’s decision will follow the Appeals Procedures detailed in Section 9. Chapter 5.H.1-2 Modified. Added clarification that death or probate allows for 1 year to become eligible while other title transfers have 90 days to become eligible. Each condition has 90 days to notify the Town and/or Program Administrator of their intention within 90 days of the title transfer. CHAPTER 6 SELLERS | SALE & RESALE OF FOR SALE UNITS Chapter 6.1.f Added. Added language clarifying a minimum of 7 days for advertising the unit for sale, subject to market conditions. CHAPTER 9 APPEAL PROCEDURES Modified. Any reference to “sole discretion” in the ACHP has been removed. The Program Administrator will continue to have discretion in making decisions related to the ACHP with appeal process going to the Town Manager. Appeal procedures apply to the entire document, including Trusts. Appeal decision is considered final. OTHER NOTES Lottery and income levels Chapter 3.A.1 states that new development MAY use an initial sales process/lottery. 2% Sales Fee Chapter 6.A.3 Sales Fee minimum of 2%. This matches the upward adjustment to the Maximum Sales Price. The numbers match so an ATTACHMENT A owner doesn’t accept a sales fee less than the 2% upward adjustment and artificially inflate the home’s price. Pre-listing inspection Public comment suggested the Program Administrator allow the Seller to select from 2 inspector options. This falls into “procedure”. The benefit is more for the Town and Program Administrator to ensure there aren’t deferred maintenance issues being passed to a new buyer. The rate is contracted. Res 25-01 ACHP Page 1 of 1 RESOLUTION 25-01 APPROVING THE 2025 UPDATE TO THE AVON COMMUNITY HOUSING POLICIES DOCUMENT WHEREAS, the Avon Community Housing Policies were adopted in September of 2023; and WHEREAS, community housing practices and efforts have changed requiring this document to be updated to reflect contemporary management of existing and ongoing housing programs, and WHEREAS, the goal of Staff and Town Council is to allow this document to be updatable and to be maintained as a living document; and WHEREAS, the Avon Community Housing Policies document supports and conforms to Avon Municipal Code, Town of Avon Comprehensive Plan, the Avon Community Housing Plan, and other Community Housing programs and policies set forth by the Town of Avon. NOW THEREFORE, BE IT RESOLVED, BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO that the Town Council hereby adopts the 2025 Town of Avon Avon Community Housing Policies document that supports Community Housing programs and projects in the Town of Avon. ADOPTED this day of 2025. AVON TOWN COUNCIL By: ______________________________ Attest: _______________________________ Tamra N. Underwood, Mayor Miguel Jauregui Casanueva, Town Clerk ATTACHMENT B Avon Community Housing Policies September 12 April 8, 20235 Page 1 EXHIBIT A Avon Community Housing Policies September 12 April 8, 20235 Page 2 Avon Community Housing Policies 20235 Avon Community Housing Policies September 12 April 8, 20235 Page 3 EXECUTIVE SUMMARY Community Housing programs for Avon are initiatives designed to provide, promote, and preserve various housing options for individuals and families. Often, these programs seek to bridge the gap between affordable housing in a high cost of housing area. Avon’s goal is to ensure our workforce can live within our community, as even those units considered or intended as workforce housing units face pressure from higher-income buyers when demand for units in our resort areas exceeds the amount of housing available. The intent of this document is to create a well-defined policy for Town Staff to consistently administer Avon’s Community Housing programs and processes while supporting and creating a variety of provisions that encapsulate these programs. Avon Community Housing Policies September 12 April 8, 20235 Page 4 PURPOSE: The purpose of the Avon Community Housing Policies is to establish policies and technical procedures for acquiring, developing, buying, owning, selling, renting, and managing affordable housing that meets the needs of the Avon community. “Community Housing” is broader than workforce housing and contemplates providing housing for all segments of the Avon community which cannot otherwise afford market rate rental and/or ownership prices. Community Housing includes housing for the workforce, seniors, retirees, aging in place, and disabled members of the community who may not be able to work. These Avon Community Housing Policies (also referred to as “ACHP” or “Policies” in this document) are intended to promote predictability in the process of executing and enforcing Community Housing Deed Restrictions and uniformity in the establishment and administration of various Community Housing Deed Restrictions. They describe the authorization to perform certain tasks and transactions administratively. These Policies are adopted by Resolution and intended to be updated regularly through approval by Town Council. This method of revision and adoption allows the Town to make regular updates as market conditions, industry changes, and usefulness of particular policies warrant. may be updated from time to time as determined appropriate by the Avon Town Council. INTRODUCTION INTENTION: These Policies address housing that is sponsored, operated, managed or partnered with the Town of Avon. Community Housing commitments include but are not limited to: Community Housing Deed Restrictions; project agreements with terms and conditions by state, federal and third party housing partners; and, housing obligations in various development agreements and Planned Unit Development approvals. These Policies replaced the 1990/1991 Avon Housing Policies in their entirety. The current version of these Policies shall be used as the official policy document for administration and enforcement of all Community Housing Deed Restrictions held by the Town of Avon. This includes those deed restrictions created through the development entitlement process or created independent of a development process, like the іMi Casa Avon! or other programs. These provisions apply to both Price Capped and Resident Occupied deed restrictions and apply to both for sale and for rent units. These Policies are separated into chapters which set forth the requirements for developers, buyers, owners, managers, and sellers of affordable housing units and projects. The Policies reference the Eagle County Affordable Housing Guidelines Administrative Procedures (“Guidelines”). These Guidelines are updated by Eagle County Government and the Eagle County Housing & Development Authority. The Guidelines include data tables for Area Median Income, Maximum Rental Rates and Maximum Initial Sales Prices based on current economic data published by various State and Federal Agencies. Avon Community Housing Policies September 12 April 8, 20235 Page 5 TABLE OF CONTENTS CHAPTER 1 ............................................................................................................................................................... 32 INTRODUCTION A.INTRODUCTION: ................................................................................................................................................. 7 B.ADOPTION AND AMENDMENTS: ....................................................................................................................... 7 C. TYPES OF COMMUNITY HOUSING DEED RESTRICTIONS: ............................................................................ 7 C.INTERPRETATION .............................................................................................................................................. 7 D. ADMINISTRATION ............................................................................................................................................... 7 E.AUTHORIZATION: ............................................................................................................................................... 7 F.AREA MEDIAN INCOME: ..................................................................................................................................... 8 G.INCOME LIMITS ................................................................................................................................................... 8 H.PREVIOUS POLICIES. ......................................................................................................................................... 8 I.COUNCIL TO APPROVE FORM OF DEED RESTRICTIONS ESTABLISH COMMUNITY HOUSING PROGRAMS: ........................................................................................................................................................ 8 J.CONVERSION OF RENTAL TO FOR SALE RESTRICTED: ............................................................................... 8 K. OWNERS ASSOCIATIONS: ................................................................................................................................. 8 J.ACRONYMS: ........................................................................................................................................................ 8 CHAPTER 2 ................................................................................................................................................................. 9 DEFINITIONS CHAPTER 3 ............................................................................................................................................................... 15 INFORMATION FOR DEVELOPERS OF COMMUNITY HOUSING A.FOR SALE | PRICE CAPPED COMMUNITY HOUSING .................................................................................... 15 B.FOR SALE | RESIDENT OCCUPIED COMMUNITY HOUSING ........................................................................ 15 C. FOR RENT | PRICE CAPPED COMMUNITY HOUSING: .................................................................................. 16 D. FOR RENT | RESIDENT OCCUPIED COMMUNITY HOUSING ........................................................................ 16 E. GENERAL PROVISIONS | DEVELOPMENT OF ALL COMMUNITY HOUSING UNITS ................................... 17 CHAPTER 4 ............................................................................................................................................................... 17 ELIGIBILITY AND SELECTION OF FOR SALE COMMUNITY HOUSING A. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLD MEMBERS:...................................................................... 17 B.RESTRICTION ON OWNING OTHER REAL ESTATE: ..................................................................................... 18 C. APPLICATION PROCESS FOR COMMUNITY HOUSING UNITS:.................................................................... 18 D. APPLICATION CRITERION FOR ALL COMMUNITY HOUSING UNITS: .......................................................... 20 E. SELECTION PROCESS | PRICE-CAPPED COMMUNITY HOUSING UNITS: .................................................. 21 F. SELECTION PROCESS | RESIDENT OCCUPIED COMMUNITY HOUSING UNITS: ……………………………21 CHAPTER 5 ............................................................................................................................................................... 23 REQUIREMENTS OF BUYERS, OWNERS, AND RENTERS A.RENTAL OF A COMMUNITY HOUSING UNIT BY QUALIFIED EMPLOYERS FOR EMPLOYEES. ................. 23 B.MAINTAINING OCCUPANCY. ........................................................................................................................... 23 C.COMPLIANCE .................................................................................................................................................... 23 D.LEAVE OF ABSENCE – ALL COMMUNITY HOUSING UNITS: ........................................................................ 24 Avon Community Housing Policies September 12 April 8, 20235 Page 6 E.SHORT TERM RENTALS: .................................................................................................................................. 24 F.FORECLOSURES: ............................................................................................................................................. 24 G.TRUST OWNERSHIP: ........................................................................................................................................ 24 H. OTHER TITLE TRANSFERS ............................................................................................................................. 25 I. TAX SALE .......................................................................................................................................................... 25 CHAPTER 6 ............................................................................................................................................................... 25 SALE & RESALE OF COMMUNITY HOUSING UNITS A. SALES OF PRICE CAPPED HOUSING UNITS: ................................................................................................ 25 B. MAXIMUM RESALE PRICE FOR PRICE CAPPED HOUSING UNITS: ............................................................. 27 C.INCREASES TO BASE PRICE AND PERMITTED CAPITAL IMPROVEMENTS FOR PRICE CAPPED HOUSING UNITS: .............................................................................................................................................. 27 D. SALES OF RESIDENT OCCUPIED HOUSING UNITS: ………………………………………………………………26 CHAPTER 7 ............................................................................................................................................................... 29 INFORMATION FOR RENTERS AND PROPERTY MANAGERS A. APPLICATION PROCESS.................................................................................................................................. 29 B.ANNUAL VERIFICATION ................................................................................................................................... 29 CHAPTER 8 ............................................................................................................................................................... 29 ENFORCEMENT A.REQUIRED DOCUMENTS ................................................................................................................................. 29 B.NON-ELIGIBLE TRANSFEREE: ......................................................................................................................... 30 C. FAILURE TO COMPLY....................................................................................................................................... 30 D. UNCURED VIOLATION ...................................................................................................................................... 30 E.REQUIRED RENTAL .......................................................................................................................................... 30 F. PRESERVATION OF DEED RESTRICTED UNIT………………...…………………………………………………..29 CHAPTER 9 ............................................................................................................................................................... 30 APPEAL PROCEDURES F.PRESERVATION OF DEED RESTRICTED UNIT .............................................................................................. 30 APPENDIX A – DEED RESTRICTION TEMPLATES .................................................................................................32 Price Capped Community Housing Deed Restriction ................................................................................................32 Resident Occupied Community Housing Unit. ……………………………………………………………………………...32 Rent Capped Community Housing Deed Restriction .................................................................................................32 Owner Occupied Community Housing Unit ................................................................................................................32 APPENDIX B – RECOMMENDED LANGUAGE FOR USE IN LEGAL DOCUMENTS .............................................. 34 Avon Community Housing Policies September 12 April 8, 20235 Page 7 AVON COMMUNITY HOUSING POLICIES A. INTRODUCTION: The Avon Community Housing Policies (“Policies” or “ACHP”) establish minimum requirements and technical procedures for developing, purchasing, owning, selling, and renting Community Housing and are to be read and applied in conjunction with the Avon Municipal Code and the various, established Deed Restrictions. These Policies are updated periodically based on current real estate market, area median income, and the most recent affordable housing data, affecting the Avon community. The ACHP is separated into chapters, which set for the requirements for developers of Residential Development, requirements for buyers, owners, and sellers of Community Housing units, and requirements for owners, renters, or managers of Community Housing rental units. B.ADOPTION AND AMENDMENTS: These Policies shall be adopted by the Avon Town Council by Resolution, after first conducting a public hearing, and may be amended by adoption of a Resolution after first conducting a public hearing. C.TYPES OF COMMUNITY HOUSING DEED RESTRICTIONS: There are four two primary types of Community Housing Deed Restrictions used for Community Housing projects in Avon, which are described below. The Avon Town Council may approve other types of Community Housing Deed Restrictions or variations of the form of Community Housing Deed Restrictions included with these Policies in the sole discretion of the Avon Town Council. The type of Community Housing Deed Restriction may be applied to both For Sale and For Rent units. 1.Price Capped Community Housing 2.Rent Capped Community Housing 3.Owner Occupied Community Housing 4.Resident Occupied Community Housing C. INTERPRETATION: These Policies shall be liberally interpreted to achieve the purpose stated in this Policy. The Community Development Director has the authority to interpret these Policies. Interpretation will favor the intention of preserving Community Housing and deed restrictions. D. ADMINISTRATION: These Policies shall be administered by the Avon Community Development Department, or such other Department or personnel as the Town Manager may delegate and assign. E.AUTHORIZATION: The Town Manager, Town Clerk and Town Attorney, and respective designees, shall have the authority to execute all documents related to transactions contemplated in these Policies, including but not limited to Community Housing Deed Restrictions, documents related to closing on real estate (e.g., settlement statements, disclosure statements, etc.), and purchase and sales agreements. New Community Housing projects approved by the Avon Town Council should include an approval of the terms, conditions and any forms of Community Housing Deed Restrictions or other documents if they differ substantially from the standard forms in these Policies, which may then be used and executed administratively. CHAPTER 1 INTRODUCTION Avon Community Housing Policies September 12 April 8, 20235 Page 8 F.AREA MEDIAN INCOME: There are many references to Area Median Income (“AMI”) throughout these Policies. The Town of Avon shall use county-wide AMI data as provided by the State of Colorado or federal government or may use an AMI based on Avon’s Zip Code or AMI based on another more localized geographic area in the discretion of the Town of Avon. G.INCOME LIMITS: When maximum household income Area Median Income limits are used, the “1 Person”limit shall be used for one person and the “4 Person” limit shall be used when there are two to four income earners regardless of the household size. in the household. Households that are initially eligible for Price Capped Community Housing units based on Maximum Income Limits shall not become in-eligible, disqualified or non-compliant if the household income exceeds the Maximum Income Limit during occupancy of that specific Price Capped Community Housing unit. H.PREVIOUS POLICIES. Within the 1990-1991 Avon Housing Policies, income limitations were classified as a “Category”. Under these Policies, income limitations shall utilize AMI rates and levels, or whatever methodology in establishing income is employed by the Program Administrator. I.COUNCIL TO APPROVE FORM OF DEED RESTRICTIONS ESTABLISH COMMUNITY HOUSING PROGRAMS: All forms of Community Housing Programs Deed Restrictions must be approved by the Avon Town Council prior to use implementation. All forms of Within these programs, all Community Housing Deed Restrictions must include these minimum terms and conditions: 1.Community Housing Deed Restrictions Rruns with the land and burdens future Buyers/Owners; 2.Expressly names the Town of Avon as a beneficiary of the Deed Restriction; 3.Any eligibility and primary residence requirements are verified annually by the Town of Avon; 4.Short Term Rental use shall be prohibited; 5.Town must receive a minimum 60 days formal written notice of foreclosure prior to foreclosure; Town has the right to cure the foreclosure; Town has option to purchase prior to foreclosure and Town has a first right of refusal post foreclosure; 6.Restriction on owning other improved residential property, which includes a procedure and timeframe for sale of existing residential property. J.CONVERSION OF RENTAL TO FOR SALE RESTRICTED: No Rent Price Capped Community Housing or Resident Occupied Community Housing Unit shall be converted from For Rent to For Sale Community Housing through subdivision, the cooperative form of ownership, condo conversion, or some similar form of ownership inconsistent with its rental purpose, unless approved in writing in advance by the Town of Avon. K.OWNERS ASSOCIATIONS: Any documents creating an owners’ association should require that association dues or assessments levied against Community Housing Units be prorated to a maximum of 75% of the association dues or assessments levied against market rate units for mixed use projects consisting of 75% or more unrestricted market rate residential (Short Term Rentals or second homes) or interval housing units (Timeshares) (e.g. The Westin or Frontgate properties). J.ACRONYMS: ACHP - Avon Community Housing Policies AMC – Avon Municipal Code Avon Community Housing Policies September 12 April 8, 20235 Page 9 AMI – Area Median Income CHU - Community Housing Unit EC – Eagle County ECAHGAP – Eagle County Affordable Housing Guidelines Administrative Procedures FHA – Federal Housing Administration RO – Resident Occupied TOA – Town of Avon Adjusted Gross Income – The total income derived from a business, employment, and from income producing property, less deductions for depreciation, taxes, and similar allowances related to the business or income producing property. Acknowledgement of Deed Restriction – A document accepting a purchaser’s agreement to be bound by both the recorded deed restriction and ACHP covering the Community Housing Unit. Affordability Gap – The difference between the median home price in each Eagle County community (as defined by zip code) and the average buying power of a typical household in that community, as provided for in the Administrative Procedures. Annual Compliance Recertification - An annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with the Deed Restriction and the ACHP, and subject to verification documents. Applicant – A prospective renter, prospective buyer, an owner of Real Property, the owner's representative, owner of an option to acquire the property or portion thereof, who is authorized to represent and/or act upon any application or submittal. Area Median Income (“AMI”) – The estimates of median household income compiled and released annually by the United States Department of Housing and Urban Development, which may be modified on a Zip Code basis or other geographic basis as determined by the Town of Avon. Attainable Housing – All Deed Restricted Housing Units regardless of price. Units include Price Capped For Sale Housing, Price Capped Rental Housing, Resident Occupied For Sale Housing, and Resident Occupied Rental Housing. Assets –Anything owned by an individual, which has commercial or exchange value. Assets consist of specific property or claims against others, in contrast to obligations due others. See also definition for Gross Assets and Net Assets. Avon – The Town of Avon, a home rule municipality located in Colorado. Avon Resident – Person living and/or working within the Town of Avon, or persons having a job commitment with a Town of Avon employer. Base Price – The price of a Price Capped For Sale unit, before appreciation and capital improvements are added. CHAPTER 2 DEFINITIONS Avon Community Housing Policies September 12 April 8, 20235 Page 10 Bedroom – That portion of a dwelling Unit intended to be used for sleeping purposes, which may contain closets, may have access to a bathroom and which meets Building Code requirements for egress, light, and ventilation. Capital Improvements – Any fixture erected as a permanent improvement to Real Property or that which adds to the value of the Real Property. Co-Signer – A joint signer of a promissory note who may not be listed on the deed of ownership on the housing unit unless required by the Program Administrator. Commercial Development – Any development that is not a Residential Development for which a Development Permit is required. Institutional uses such as government buildings, schools, hospitals, churches and other religious institutions, and facilities operated by non-profit service agencies are considered Commercial Development for purposes of these Policies. Commercial Mitigation – See AMC Section 7.20.100 Employee Housing Mitigation Community Housing – Residential housing which is subject to a deed restriction that limits use to long-term residential use as a primary residence by an Eligible Household and which deed restriction may impose other restrictions and limitations and may include terms deemed appropriate in the Council's sole discretion, including but not limited to controls on the resale price of such residential property, and which deed restriction is enforceable by the Town. See AMC Section 3.14.20 - Definitions Comprehensive Plan – As defined in Avon Municipal Code Chapter 7 Development Code, as may be amended from time to time. Consumer Price Index (C.P.I.) – The Consumer Price Index (C.P.I.) as published by the Bureau of Labor statistics in the U.S. Department of Labor, for All Urban Wage Earners and Clerical workers (CPI.W) U.S. average all items. Cost Burdened Household – A Household that is paying more than 30% of its income for housing costs. County Resident – Person living and or working within Eagle County. Debt/Income Ratio – The ratio of the monthly debt serviceable as a percentage of Gross Income. Development Permit – Any preliminary or final approval of an application for rezoning, Planned Unit Development, amendment of an existing Planned Unit Development, special use permit, subdivision, or similar application for new construction. Applications for a building permit where no previous condition of approval required housing mitigation. Disability – A physical or mental impairment that substantially limits one or more of the major life activities of such for an individual. Displaced Tenants – Any person who is removed from his/her residence due to conversion or reconstruction of a project. Eagle County Administrative Procedures – The Eagle County Affordable Housing Guidelines Administrative Procedures. Eagle County Employee – Eagle County Employee as defined in Section 3.12.020 Definitions. This section States: Eagle County employee means an employee working in Eagle County who works an average of at least thirty (30) Avon Community Housing Policies September 12 April 8, 20235 Page 11 hours per week on an annual basis or earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or a retired individual, sixty (60) years or older, who has worked a minimum of five (5) years in Eagle County for an average of at least thirty (30) hours per week on an annual basis; or a person who derives income from self-employment whose business is situated in Eagle County; or a person who works for an employer outside Eagle County if that person can demonstrate that the residence for which such person seeks an exemption under this Chapter is the primary residence for that person. Eligible Household – Households that will use the property as their Primary Residence, meet the employment qualification criteria, and comply with the restrictions on use, occupancy, and owning other real estate. The definition may include an Eagle County Employee, Employer, Qualified Buyer, or Qualified Person. and meets qualifying criteria used in establishing occupancy. Emergency Worker – An employee or volunteer of a community-based organization that provides immediate response health and safety services, including, but not limited to the following: Fire Department Workers; Mountain Rescue; Sheriff's Deputies; Police Officers'; Hospital Emergency Room technicians; Social Service workers (mental health and abuse case workers); ambulance drivers and EMT's. Employee – Employee means a person employed in a building or on a property during normal periods of use. Employer – A business whose business address is located within Eagle County whose business employs employees (as defined herein) within Eagle County, and whose business taxes are paid in the Town of Avon and/or Eagle County. Employee Housing – Housing used exclusively for persons employed by an Employer in Eagle County. Equity – That interest or value remaining in property after payment of all liens or charges on the property or the monetary interest the owner has over and above the mortgage indebtedness. Essential Worker – An employee who performs front-line work with public infrastructure or services, including but not limited to street maintenance, water, waste water, schools, day care, and Emergency Workers. Financial Statement – A statement detailing all personal assets, liabilities, and net worth (the difference between assets and liabilities) as of a specific date. For Rent Community Housing – Rental housing subject to a Resident Occupied or Price Capped Deed Restriction requiring that the Housing meets Rental Rate or Occupancy Restrictions, quality, annual compliance, and other criteria set forth in this document. Gross Assets – Anything which has tangible or intangible value. Property of all kinds, real and Personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action which belong to any person including a corporation and the estate of a decedent. The entire property of a person, association, corporation, or estate that is applicable or subject to the payment of their to its debts. Gross Household Income –The total combined amount of income a Household earns in one calendar year from all sources before taxes any applicable deductions. Gross Income – The total income derived from a business, employment and from income producing property, before deductions for expenses, depreciation, taxes and similar allowances. Avon Community Housing Policies September 12 April 8, 20235 Page 12 Household – All individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. Household Income Combined – Adjusted Gross Income of all individuals who will be occupying the Unit regardless of legal status. Housing Plan – A written plan submitted to the Town of Avon describing how an Applicant will satisfy the minimum recommendations of the Avon Municipal Code or as required through a Development Agreement as approved by Town Council. Inclusionary Housing – The provision of Affordable Housing in Residential Developments to ensure adequate housing stock for local residents and to maintain or increase the current ratio of primary to secondary home ownership. Initial Sales Price –The maximum price for which Price Capped For Sale Housing Unit may be initially sold by a developer, the price of a unit after a buy down payment is applied, or the initial price of a unit in a subsequent resale. It may also refer to the amount paid by an Owner in a subsequent sale. Joint Tenancy – Title in real estate owned by two or more persons with right of survivorship, which upon the death of one, vests to the remaining joint tenant(s). Drawing – A drawing of Eligible Households needed to select a winner from equal Applicants, who are tied for highest priority. Maxi-Bid Price – Calculation of purchase price multiplied by the appreciation (as identified in the Resale Agreement) plus capital improvement costs including labor, if professionally provided, and for which verification of the expenditure is provided. Maximum Rental Rate – The maximum monthly rent payment for a Community Housing Unit, as provided for in the deed restriction, ACHP, or Administrative Procedures. All ongoing fees required to be paid by the resident (including but not limited to utilities and mandatory parking fees) must be included within the Maximum Rental Rate. Maximum Resale Price – The maximum amount an owner can sell the Community Housing Unit for per the deed restriction requirements. Mi Casa Avon – ¡Mi Casa Avon! is a Deed Restriction program that assists Avon’s workforce in purchasing homes within the Town of Avon with the intention of preserving the Unit for full-time residents in perpetuity. Minimum Occupancy – One person (with a leasehold/ownership interest) per bedroom. A minor child or dependent shall be granted equal status. Municipal Employee Home Ownership Program Guidelines or “EHOP Guidelines” - the Town of Avon Employee Home Ownership Program Guidelines as adopted by Avon and as may be amended from time to time. Net Assets – Gross Assets minus Liabilities. Non-Eligible Household – A Household that does not qualify as an Eligible Household. Occupancy and Resale Deed Restriction and Covenant – A contract entered into between Town and the purchaser at the time of closing identifying conditions of occupancy resale. Avon Community Housing Policies September 12 April 8, 20235 Page 13 Owner – The Owner of record of the CHU according to the Clerk and Recorder of Eagle County during their period of ownership interest. The owner, as well as its agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title of the Property of Record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during the period of ownership interest. Owner Occupied Community Housing – Housing subject to a Deed Restriction requiring that the Housing be owned and occupied by an Eligible Household as its Primary Residence as set forth in this document. Payment in Lieu – A payment made to the Town of Avon to satisfy a Project’s recommended Housing mitigation. Permitted Capital Improvements – Certain improvements made to a Community Housing Unit that may be included in the seller’s Maximum Resale Price. Price Capped Community Housing – Collectively refers to For Sale or For Rent Community Housing. Is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined in the deed restriction and ACHP. Primary Residence – The occupation and use of a residence as the primary residence, which shall be determined by the Town Manager by taking into account the following circumstances: voter registration in Avon, Colorado (or signing an affidavit stating that the Applicant is not registered to vote in any other place); stated address on Colorado driver's license or Colorado identification card; stated address on motor vehicle registration; ownership or use of other residences not situated in Avon, Colorado; stated residence for income and tax purposes; and such other circumstances as well as such processes for verification and investigation deemed appropriate by the Town Manager to determine that the buyer is continuously occupying and using the residence as a Primary Residence. A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. Program Administrator – The Administrator of the Avon Community Housing Policies. The Program Administrator shall be the Community Development Director, or designee, or such person appointed by the Town Manager. Qualified Employer - means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose or reduce restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. Qualified Person – a person who has provided sufficient information for review and verification that such person meets the minimum requirements for a qualified buyer or qualified resident by the Program Administrator. Real Property – Property other than personal property as defined by the statutes of the State and does not include trailers or mobile homes, except trailers or mobile homes, which, by way of a foundation, have become attached as fixtures to the land on which they are located. Rent Capped Community Housing – Rental housing subject to a Deed Restriction requiring that the Housing meet Rental Rate Restrictions, quality, annual compliance and other criteria set forth in this document. Avon Community Housing Policies September 12 April 8, 20235 Page 14 Rental Rate Restrictions – The maximum Rental Rate for which a Community Housing unit may be leased, as provided for in this document or deed restriction. Retired Person or Older Person – a person at least 60 years of age or more at the time of initial occupancy. Resale Agreement – A contract entered into between the Town and the purchaser at the time of closing identifying the conditions of occupancy and resale. Resident Occupied Community Housing – Housing subject to a Deed Restriction requiring that the Housing be owned and/or occupied by an Eligible Household as its Primary Residence as set forth in this document. Short Term Rentals – Any room or rooms, apartment, condominium, boardinghouse, hotel room, guesthouse, lodge, campground site, recreational vehicle space, bed and breakfast, residence or similar accommodation generally used for sleeping and made available for a fee or other consideration to guests on an overnight basis for a period fewer than thirty (30) days, excluding any Unit classified as commercial property by the Eagle County Assessor. Tenancy-in-common – Ownership of property between two or more Persons who have an undivided interest in the whole property; no right of survivorship, when one of the owners dies, the interest passes to their heirs or beneficiaries and not to the surviving tenant(s) in common. Town - Shall include employees of the Town of Avon, program administrators, or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. Town of Avon Employee Household - An employee working for the Town of Avon who meets the Initial Purchase Qualification, may meet the Continuing Employment Qualification, will use the Property as their Primary Residence, and comply with the restriction on owning other real estate ownership, as outlined in the deed restriction and EHOP Guidelines. Notwithstanding the foregoing, the Town of Avon is also a Town of Avon Employee Household. Transfer – Any grant, conveyance or alienation of Real Property, as evidenced by deed, instrument of conveyance or exchange, or any other writing wherein or whereby title to Real Property is granted, conveyed or alienated, or the conveyance of a possessory interest including any other indicia of ownership without the passing of legal title. Note: Some terms within this Section may be considered retired (outdated) and not used within these Policies but may be found within existing deed restriction language. Certain relevant definitions have also been updated within these Policies. The Town of Avon may replace certain terms using other modernized definitions within this Section when replacing or updating older documents. Avon Community Housing Policies September 12 April 8, 20235 Page 15 These policies are for Priced Capped Community Housing. The purpose of Price Capped Community Housing is to provide housing that is affordable for lower AMI households and to preserve the affordability of such housing while providing appropriate reimbursement of capital investments on resale. This Chapter will cover the requirements specific to Price Capped Units for Developers, Property Managers, and Buyers, Seller, and Owners. This chapter details the requirements for Developers of Community Housing and includes For Sale and For Rent housing types. A. FOR SALE | PRICE CAPPED COMMUNITY HOUSING 1.Initial Pricing: The Initial Sales Price of Price Capped For Sale Community Housing units shall be set no higher than at a price affordable to Households earning 100%-140% of AMI. based on two persons per bedroom (e.g. pricing for a three bedroom unit shall be based on the income limits for sixpersons). The units should be priced in a spectrum of prices consistent with unit size, location, and market demand. The Town will determine the initial sales process and/or lottery. Chapter 8 of the Eagle County Affordable Housing Guidelines Administrative Procedures shows the current year maximum Initial Sales Prices. 2.Deed Restrictions: All deed restrictions burdening Price Capped For Sale Community Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set forth in these Policies and shall be in a form approved by Town Staff and Town Attorney. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. Terms for Price Capped For Sale deed restrictions will include the following: a. Eligible Households only b.Primary Residence use only with annual recertification c.May not own other real property, subject to exceptions d. Limitations on rentals e. Prohibition on Short Term Rentals f.Initial Sales Price restrictions g.Maximum Resale Price restriction h. Ownership interest conveyed to Town of Avon i. Ability to force sale if Owner is not complying with the deed restriction j.Option to buy post foreclosure k.Resale by Town or Town’s Program Administrator l.Annual compliance verification by Owner to Town of Avon B. FOR SALE | RESIDENT OCCUPIED COMMUNITY HOUSING 1.Initial Pricing of Resident Occupied Community Housing: The initial sale price for Resident Occupied Community Housing is not restricted or limited and shall be determined by the Owner or Seller. Resident Occupied units should be built, come to market, and be sold proportionately with free market units. The Town will determine the initial sales process and/or lottery. 2.Deed Restrictions: All deed restrictions burdening Resident Occupied For Sale Community Housing units must include resale restrictions binding future buyers and sellers to the applicable conditions set CHAPTER 3 DEVELOPERS | INFORMATION FOR DEVELOPERS OF ALL COMMUNITY HOUSING Avon Community Housing Policies September 12 April 8, 20235 Page 16 forth in these Policies and shall be in a form approved by Town Staff and Town Attorney. All purchasers shall execute the deed restriction as well as an Acknowledgement of Deed Restriction. Terms for Resident Occupied For Sale deed restrictions will include the following: a. Eligible Households only b. Primary Residence use only with annual compliance verification by Owner to Town of Avon c.May not own other Real Property, subject to exceptions d. Prohibition on Short Term Rentals e. Annual compliance verification by Owner to Town of Avon f.Rental of the unit allowed under certain deed restrictions may require the rental rate be set no higher than 100% AMI g. Ability to force sale if Owner is not complying with the deed restriction h. Option to buy post foreclosure i.Resale monitoring and buyer approval by Town or Town’s Program Administrator C.FOR RENT | PRICE CAPPED COMMUNITY HOUSING: 1.Maximum Rental Rates for Price Capped Rental Housing: Maximum Rental Rates for Deed Restricted Rental Housing must be set at rates that are affordable to Households with incomes no greater than 80%-100% AMI, based on unit type. The Eagle County Affordable Housing Guidelines Administrative Procedures shows the current year maximum rental rates. 2.Deed Restrictions: All deed restrictions burdening Price Capped For Rent Community Housing units must include the following: Terms for Price Capped For Rent deed restrictions will include the following: a.Eligible Households only, unless otherwise permittedb.Maximum rents c.Prohibition on Short Term Rentals d.Annual Verification by Owner to Town of Avone.The term of the deed restriction will be perpetual, and the restriction agreement must be between the Owner and the rental property and either the Town of Avon or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development D.FOR RENT | RESIDENT OCCUPIED COMMUNITY HOUSING 1.Rental Rates for Resident Occupied Rental Housing: The rental rates are not restricted in Resident Occupied Community Housing. 2.Deed Restrictions: All deed restrictions burdening Resident Occupied Rental Community Housing units must include the following: a.Eligible Households only b.Prohibition on Short Term Rentalsc.Annual Verification by Owner to Town of Avon d.The term of deed restriction should be perpetual, and the restriction agreement must be between the Owner of the rental property and the Town of Avon or other acceptable entity, such as the Colorado Housing and Finance Authority or the United States Department of Housing and Urban Development. Avon Community Housing Policies September 12 April 8, 20235 Page 17 E. GENERAL PROVISIONS | DEVELOPMENT OF ALL COMMUNITY HOUSING UNITS 1. Homeowners Associations: Any documents creating a homeowners association should require that the Community Housing units will be assessed regular and other shared assessments based upon a reasonable formula. For inclusionary projects (community housing units mixed with predominantly free market units in the same project), those unit’s assessments will be prorated to a maximum of 75% of the association assessments levied against the free market units. E.g. Projects with similar nature to Frontgate, Kestrel, One Riverfront, or Riverfront Lodge. 2. Divided Ownership of Affordable Rental Housing: No Price Capped or Resident Occupied Rental Community Housing Unit(s) shall be converted in the future to For Sale housing through subdivision, the cooperative form of ownership, condo conversion, or some similar form of ownership inconsistent with its rental purpose, unless the Owner of such unit(s) proposes providing substantially similar substitute Deed Restricted Housing Unit(s) and such proposal is approved in advance by the Town of Avon. 3. Form of Deed Restrictions: All Deed Restrictions for For Sale Price Capped Community Housing Units will use the forms attached, as amended from time to time in EXHIBIT A.1 – PRICE CAPPED COMMUNITY HOUSING DEED RESTRICTION. All Deed Restrictions for Rental Price Capped Community Housing units must use the form attached as EXHIBIT A.2 – RENTAL CAPPED COMMUNITY HOUSING DEED RESTRICTION. 4. Employee Housing Mitigation: New development is required to provide Employee Housing Mitigation AMC Section 7.20.100. This section discusses the requirements for eligibility and selection of For Sale Deed Restricted Community Housing units. It is the Town’s goal to provide a fair, non-discriminatory, and clear process for Buyer Selection. Out of respect for privacy, the Town does not publish the names of applicants for housing units. A. ELIGIBILITY REQUIREMENTS FOR HOUSEHOLD MEMBERS: 1. Employment Qualification: At least one primary member of a Household must meet one or more of the following criteria: a. A Household earning a living primarily in Eagle County by having worked an average of at least thirty (30) hours per week on an annual basis at a business with an office or job site physically located in Eagle County. Multiple jobs in Eagle County may be combined to reach 30 hours per week; or b. A Retired Person or Older Person over the age of sixty (60) who earned a living in the Town of Avon or within Eagle County, for no less than five (5) years prior to the date of their retirement; or c. A Person with a Disability who had been a full-time employee in the Town of Avon or within Eagle County immediately prior to their Disability or has been granted an exception to the minimum of 30 hours per week to continue with a federal or state Disability benefit program, or as qualifying programs allow; or CHAPTER 4 BUYERS | ELIGIBILITY AND SELECTION OF FOR SALE UNITS Avon Community Housing Policies September 12 April 8, 20235 Page 18 d.Owners and Members of Households that reside in the Town of Avon or within Eagle County but work for employers that are located outside of Eagle County (e.g., remote workers). These employees may be considered eligible if all other eligibility requirements are met and the Owner and or Member of the Household can prove Town of Avon or Eagle County residency for no less than one year before application submission, subject to the Program Administrator’s discretion or as otherwise stated in the applicable deed restriction; or e.Members of the Household cumulatively earning at least 75% of the Household’s Gross Household Income in the Town of Avon or within Eagle County or Members of the Household that are considered eligible renters by the Town of Avon or assigns. f.At initial qualification of a purchase of a price capped unit, assets of the buyer cannot exceed 50% of the list price for the unit. B. RESTRICTION ON OWNING OTHER REAL ESTATE: 1.No member of an Eligible Household, including, but not limited to, spouses, domestic partners and children under 18 years of age, may own other improved residential real estate anywhere as of the date of purchase or occupancy or occupancy of the Community Housing Unit, subject to the following exceptions: a.If the Owner is currently an owner of real estate and are under contract to sell their existing real estate and purchase a Community Housing Unit contemporaneously. A hardship exemption from this requirement may be granted at the discretion of the Program Administrator; or b.Members of an Eligible Household who own commercial property for business use or vacant land may be exempted from this requirement at the discretion of Program Administrator. c.During acquisition or ownership of a Community Housing Unit, no member of the household shall own or acquire any interest, alone or in conjunction with others, in any other improved residential real estate, including ownership via a corporation, limited liability company, trust, or other legal entity. Some exceptions apply to Resident Occupied deed restrictions. See individual deed restrictions. d.Members of an Eligible Household who acquire improved residential real property outside of the State of Colorado, and only after their initial purchase of the Community Housing Unit, may be exempted from this requirement at the discretion of the Program Administrator. See individual deed restrictions. C. APPLICATION PROCESS: 1.PRICE CAPPED COMMUNITY HOUSING APPLICATIONS. Households and/or Qualified Employers interested in purchasing a Community Housing unit must apply to the Program Administrator to certify eligibility prior to or at the time of submitting an offer to purchase a unit. The application and supporting documentation will become the property of the Program Administrator and will not be returned to the Applicant. The Applicant must provide all of the following information and documentation: a.Obtain and complete an application from the Program Administrator; Avon Community Housing Policies September 12 April 8, 20235 Page 19 b. Provide evidence of employment by a Qualified Employer; i. 2 most recent paystubs, W2, and most recent tax return ii. An employment contract, or other document deemed necessary by the Program Administrator iii. Affidavit from employer verifying employment plus any other document necessary by the Program Administrator iv. Qualified Employers must provide proof of active business ownership in Eagle County including verification of business license, Secretary of State registration, all registered agents, operating agreements, current tax returns, current income/expense statements or P&L statements, and any other document(s) deemed necessary by the Program Administrator. Entities established solely for the purposes of owning a deed restricted residence are prohibited. c. Provide evidence of residency in Eagle County, if applicable; d. Affirmation on the application that your Household intends to live in the unit as your Primary Residence and that no member(s) of your Household own other improved residential real estate; e. Provide a prequalification letter from a mortgage lender for a mortgage with a fixed interest rate of at least 5 years duration or a statement of proof of funds and submit a copy to the Program Administrator. Reverse amortization mortgages are prohibited; f. Provide proof of funds for a down payment equal to at least 3% of the purchase price or as otherwise stated in the applicable Deed Restriction. g. Provide a copy of a home buyer education class certification. Once basic eligibility has been met, the Applicant submitting the highest offer (not to exceed the Maximum Resale Price) will have the first right to negotiate for the purchase of the unit. If market conditions indicate high demand for price capped Community Housing, or there are two or more equal offers are received by a Seller, offers will be prioritized for selection based on the Selection Process listed below. The Program Administrator will notify the Applicant if additional proof of any of the following items is necessary. 2. RESIDENT OCCUPIED COMMUNITY HOUSING APPLICATIONS: Eligible Households and/or Qualified Employers interested in purchasing an existing Non-Price Capped Community Housing units must submit an application to the Program Administrator to certify eligibility prior to or at the time of submitting an offer to purchase a unit, unless otherwise outlined in the recorded deed restriction. The application and any accompanying documentation will become the property of the Town of Avon and/or the Program Administrator and will not be returned to the Applicant. The application steps are as follows: a. Obtain an application from the Program Administrator. b. Provide evidence of employment by a Qualified Employer; Avon Community Housing Policies September 12 April 8, 20235 Page 20 i.2 most recent paystubs, W2, and most recent tax return; ii.An employment contract, or other document deemed necessary by the Program Administrator; iii.Affidavit from employer verifying employment plus any other document necessary by the Program Administrator; iv.Qualified Employers must provide proof of active business ownership in Eagle County including verification of business license, Secretary of State registration, all registered agents, operating agreements, current tax returns, current income/expense statements or P&L statements, and any other document(s) deemed necessary by the Program Administrator. Entities established solely for the purposes of owning a deed restricted residence are prohibited. c.Provide evidence of residency in Eagle County, if applicable; d.Copy of the sales contract and title commitment; e.Affirm on the application that your Household intends to live in the unit as your Primary Residence and that, unless otherwise stated in the deed restriction, no members of your Household own other real estate in Eagle County. D. APPLICATION CRITERION: Applications for Community Housing units require supporting documentation to verify income, employment, and residency. A list of required documents is provided with an application. Supporting documents vary greatly depending on source therefore, the following considerations will be made to the actual document. 1.The physical location of residency and prior residency is relevant. The Applicant’s mailing address is not. 2.The physical location of local employment and/or employer is relevant. The Applicant’s company headquarters may not be. For example, company or organization headquarters are located in “Town A”, but the Eligible Household member reports to work in “Town B” (e.g., the school district). In this example, the physical location where the Eligible Household member reports to daily, in “Town B”, would be considered the physical place of employment. Alternatively, the company or organization headquarters are located in “Town A” but work is completed at changing locations throughout the county (e.g., construction/landscaping). In this example, the location of the headquarters in “Town A” would be used. 3.Residency and Employment documents consider physical location, the applicant’s name, and length of time. 4.Full time employment is defined in Eligible Household and Eagle County Employee in Section 3.12.020 of the Avon Municipal Code. 5.If two individuals are applying jointly, their information cannot be combined. 6.Joint Applicants must meet the criteria for an Eligible Household. Combined income will be considered in determining a maximum AMI%, with a combined income not to exceed the equivalent of a 4-person AMI%. Avon Community Housing Policies September 12 April 8, 20235 Page 21 7.Employment and/or Income may be determined using the Applicant's most recent federal income tax return or if unavailable or if income has changed, by Applicant’s current paystubs, or other reasonable means as determined by the Program Administrator. E.G. – an employer applying to purchase a unit for the purposes of employee housing will provide tax returns and income and expense statements along with a business license and a registered agent, etc. 8.All documents may be verified by the Program Administrator. Residency, employment, or income that cannot be verified will not be considered or used in determining length of employment or residency. 9.Eligible Household occupancy may not exceed the maximum limits set in local Building Code. s mayhave no more than two occupants per Bedroom at any time. For example, a household of five (5) people does not qualify for a two (2) Bedroom unit. 10.Any consideration for home office or remote work will be required to provide an acknowledgment of remote work status from their employer. Remote work must substantially benefit Eagle County to be considered for eligibility. Final determination or acceptance will be by the Town or Program Administrator. 11.Eligible Households in existing Community Housing Units located in the Town of Avon or Eagle County may receive higher priority by the Town of Avon when being considered for a different Community Housing Unit elsewhere within the Town of Avon, if applicable. E.BUYER SELECTION PROCESS | PRICE CAPPED UNITS: The following selection criteria applies to all resales of Price-Capped Community Housing Units: Upon owner notification to the Program Administrator/Town of the owner’s intention to sell, the resale timeline and process for advertising will be determined by the Program Administrator. All resales of Price Capped units will assume more than one applicant will apply for the unit and the unit will be advertised on a publicly accessible platform. In the event one (1) applicant applies for a Price Capped Unit, no lottery is required. In the event there is more than one applicant, in the same priority category, a selection process and (potentially), a lottery shall be held. The priority process is as follows: 1.Priority. Applicants will be categorized in the following order: a.Household Income - Priority order will align with income. First priority is for incomes that fall below 100% AMI, Second priority to those whose income falls below 120% AMI, Third priority to those who fall below 140% AMI and so on. Preference will be for Applicant(s) who meet the lowest of the available income categories but will not be selected solely based on lowest income alone. i.If one applicant meets the lowest category, they will have the first opportunity to purchase the unit. ii.If there are no applicants in the lowest or first category, then the next income category will be considered, and so on. iii.If more than one applicant meets the lowest category, then priority of Work/Residency History will apply, before the lottery is held. Avon Community Housing Policies September 12 April 8, 20235 Page 22 Area Median Income Category Priority Grouping 80%-100% 1 101%-120% 2 121%-140% 3 b.Work/Residency History. Priority will be given to those who have worked/lived full time within Eagle County longer for at least 5 years, considered on a cumulative, calendar year basis. See Chapter 4.C and 4.D for details. Additional entries into a random lottery will be given as follows: Lottery Entries Years Working/Living Lottery Entries <1-5 1 6-10 2 11-15 3 (maximum) c.Other. i.There will be no consideration for those who do not meet the definition of Eligible Household. ii.The ability to purchase the unit with cash has no relevance to the selection process. 2.Lottery Process. The Program Administrator shall hold a lottery drawing comprised of the final applicants, using the number of entries they accrued. who have equal qualifications, to determine the winning Applicant a.The drawing will be held by the Program Administrator within five (5) to ten (10) business days from determining the final entries. Drawing entries shall be randomized, and the lottery will occur during regular business hours. b.All entries will be drawn and a draw order will be published. c.The first applicant drawn will have the first opportunity to purchase the unit. If the first applicant declines or is otherwise unable to purchase the unit, the next applicant in the draw order will have an opportunity, and so on. Avon Community Housing Policies September 12 April 8, 20235 Page 23 EXAMPLE OF LOTTERY INTENTION D.SELECTION PROCESS | RESIDENT OCCUPIED COMMUNITY HOUSING UNITS: There is no selection criteria for resales of Resident Occupied For Sale Housing units. Units will be advertised for sale on a publicly accessible platform like the Vail MLS. This section provides the requirements of Buyers, Owners, and Renters of For Sale Community Housing units. A. RENTAL OF A COMMUNITY HOUSING UNIT BY QUALIFIED EMPLOYERS FOR EMPLOYEES: Qualified Employers may purchase a Community Housing Unit and lease to their employees who are members of Eligible Households. Qualified Employers may not impose additional Deed Restrictions or reduce eligibility requirements to renters within these Units without the written consent of the Program Administrator. B. MAINTAINING OCCUPANCY: The Owner of a Community Housing Unit shall continue to use the unit as its primary place of residence. The Owner of a Community Housing Unit will be deemed to have ceased to use the unit as its Primary Residence by accepting permanent employment outside of Eagle County, by residing in the unit for fewer than 9 months out of any 12 months, or by registering to vote outside of Eagle County. C. COMPLIANCE: Once a Community Housing Unit has been purchased, it must continue to be owned and occupied only by an Eligible Household. On an annual date set by the Program Administrator, the Owner of the Unit, shall submit the following information to the Program Administrator: 1.A completely filled out compliance verification form stating that the Owner continues to meet employment and residency requirements, as applicable; and 2.A statement that the Owner owns no other Real Property with the exceptions provided for herein. The Program Administrator will provide either a paper or electronic form to Community Housing Unit CHAPTER 5 OCCUPANTS | REQUIREMENTS OF OWNERS AND RENTERS OF FOR SALE UNITS Avon Community Housing Policies September 12 April 8, 20235 Page 24 owners. Failure to provide information as required by the Program Administrator and any applicable deed restriction may result in forfeiture of appreciation, a sale mandated by the Program Administrator, or any other available remedy at law or equity. D.LEAVE OF ABSENCE – ALL COMMUNITY HOUSING UNITS: A leave of absence for the occupant of a Community Housing Unit may be granted at the discretion of the Program Administrator, subject to clear and convincing evidence that shows the reason for leaving and a commitment to return. Said evidence shall be in written form and presented to the Program Administrator for review and decision prior to the Owner leaving. The leave of absence shall be in accordance with the limitations as established in the subject Deed Restriction. In the case of an approved leave of absence, the Owner shall only rent to an Eligible Household. 1.Unless otherwise stated in the applicable deed restriction, any and all charges to rent a Deed Restricted Housing Unit during a leave of absence may not exceed the lesser of 1) Maximum Rental Rates for Rental Housing at 100% AMI* or 2) the Owner’s monthly housing expenses. *See the ECAHGAP for current Maximum Rental Rates. 2.Tenant(s) must submit a complete application and receive approval from the Program Administrator prior to occupancy. The Owner shall provide a copy of the executed lease agreement between the Owner and tenant to the Program Administrator. 3.If a Community Housing Unit is listed for sale and the Owner has relocated outside of Eagle County, the unit may, upon approval of the Program Administrator, be rented to an Eligible Household prior to completion of the sale. E.SHORT TERM RENTALS: Short Term Rentals are not permitted in any Community Housing Unit regardless of type. A Short Term Rental is defined in AMC Section 3.29.020 - Definitions. F.FORECLOSURES: In the event of a foreclosure or of acceptance of a deed in lieu of foreclosure by the holder of a promissory note secured by a first deed of trust on a Community Housing Unit, Avon shall have the option to purchase the unit prior to public sale, which option shall be exercised as set forth in the deed restriction. The Owner has an obligation to notify the Program Administrator in writing once the Owner perceives a foreclosure difficulty. G.TRUST OWNERSHIP: An Eligible Household may seek a variance to allow the title of a Community Housing Unit to be held in trust for the benefit of a natural person who also meets the definition of an Eligible Household member. Such ownership in trust may only occur in the circumstances provided herein, at the sole discretion of the Program Administrator, on a case-by-case basis. In order to request a variance from the strict application of these Policies, the Applicant shall submit a letter requesting a special review to the Program Administrator as follows: 1.Community Housing Units may be held in trust only for the benefit of a natural person who due to a physical or mental impairment lacks the capacity to contract or is prevented by such impairment from acquiring title to a unit in their own name. The letter shall include documentation of such impairment and the basis for ownership in trust. It should be noted that the Applicant should submit any additional information reasonably requested by the Program Administrator to allow the Program Administrator to process this special request. 2.The beneficiary of the trust may not own other residential Real Property. Avon Community Housing Policies September 12 April 8, 20235 Page 25 3.The beneficiary of the trust must be of the age of majority to qualify under this section. 4.The criteria set forth in these Policies may be met so long as the trust pre-qualifies for a loan. Further the trust must prove an adequate means of ensuring that expenses associated with ownership, including, but not limited to association dues and expenses are met. 5.Upon receipt of a request for a special review and any requested information and documentation, the Program Administrator may grant the request with or without conditions, in a timely manner. H. OTHER TITLE TRANSFERS: In the event that title to a Community Housing Unit transfers to a person or entity that is not an Eligible Household, including upon death or through probate, the Non-Eligible Household must notify the Program Administrator of its intent as outlined below within 90 days of taking title to the unit. 1.The Non-Eligible Household may list the unit for sale, following the procedures outlined herein. 2.The Non-Eligible Household may become an Eligible Household as follows: a.Upon death or probate: will have one year to become an Eligible Household; b.Other title transfers: will have 90 days to become an Eligible Household; c.In the event the Non-Eligible Household is unable to become an Eligible Household in one year then the unit shall be listed For Sale as provided herein. 3.Non-Eligible Households shall not: a.Occupy the Community Housing Unit; b.Rent all or any part of the Community Housing Unit, except in strict compliance with these Policies; c.Engage in any other business activity on or in the Community Housing Unit; d.Sell or otherwise transfer the Community Housing Unit except in accordance with these Policies or applicable Deed Restriction. e.The Program Administrator may require the Non-Eligible Household to rent or sell the Community Housing Unit in accordance with the provisions of these Administrative Procedures. I.TAX SALE. In the event of a tax sale the deed restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approvalwhich shall survive and sale of the Community Housing Unit through a tax lien sale process. This section discusses the sale and resale process for For Sale Community Housing Units. A.SALES OF PRICE CAPPED HOUSING UNITS: CHAPTER 6 SELLERS | SALE & RESALE OF FOR SALE UNITS Avon Community Housing Policies September 12 April 8, 20235 Page 26 1. Listing Units. All Price Capped Community Housing Units must be listed for sale with the Program Administrator, its designee, or as specified by the applicable deed restriction. An Owner who wishes to sell the Price Capped Community Housing Unit must follow these steps: a. Notify the Town or Program Administrator of Intent to Sell. b. Execute a standard Listing Contract on forms approved by the Program Administrator. c. Consult with the Program Administrator to review the Deed Restrictions recorded against the unit to determine the Maximum Resale Price and other applicable provisions concerning a sale. d. The Town or its Program Administrator will provide the Deed Restriction, ACHP, application, and any other relevant documents necessary to advertise the unit for sale as deed restricted. e. The Program Administrator shall administer the sale in accordance with the requirements in effect at the time of listing. f. A minimum advertising period of 7 calendar days applies for price capped units, unless market conditions indicate otherwise, as approved by the Program Administrator. g. The Owner may consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related services (excluding all sales fees), will be at the Owner’s own expense and shall not be included in the calculation of the Maximum Resale Price. 2. Inspection Prior to Sale. The Owner shall undertake a listing inspection by the Program Administrator or assigns before executing a listing contract to determine the condition of the unit. a. The Owner shall pay for the cost of the inspection at the time of inspection. b. The inspector shall furnish a written report to the Owner and the Program Administrator. c. This information shall be furnished to the purchaser as a part of the seller’s property disclosure once a purchase contract has been executed. d. The inspection will be valid for no more than 60 days. The Owner shall replace or repair any items that are identified as unsatisfactory in the report at market value or reduce the listing price accordingly. 3. Sales Fees. Unless otherwise set forth in the applicable Deed Restriction, at the closing of the sale, the Owner shall pay the Program Administrator or its designee a minimum sales fee of 2% (two percent) of the sale price. This fee offsets the administration and associated fees of selling a unit and does not act as a direct commission for a Town of Avon employee or third-party handling the transaction. a. The Owner must deposit 0.5% (one half percent) of the list price with the Program Administrator upon listing the unit for sale, known as the listing deposit. Avon Community Housing Policies September 12 April 8, 20235 Page 27 b.If the Owner fails to perform under the listing contract, rejects all offers, or withdraws the listing after advertising has commenced, the Owner shall not be refunded the listing deposit. c.The listing deposit shall be considered a budgeted amount for advertising and administrative costs that will be incurred by the Program Administrator. If the Program Administrator incurs any additional costs, the Owner will be notified in advance by the Program Administrator and shall be responsible for those additional costs. d.Closing Costs. Sellers of Community Housing Units shall not permit any prospective buyer to assume any of the seller’s customary closing costs, including the fees set forth herein, nor accept any other consideration that would increase the purchase price above a Maximum Resale Price to induce the seller to sell to such prospective buyer. B. MAXIMUM RESALE PRICE FOR PRICE CAPPED HOUSING UNITS: No Owner of Price Capped Community Housing shall sell the unit for an amount greater than the Maximum Resale Price for the unit. Maximum Resale Price will be calculated as follows: Base Price + Appreciation of Base Price + Permitted Capital Improvements – Depreciation of Capital Improvements + Sales Fee = Maximum Resale Price. There are no resale price limitations on Resident Occupied For Sale Housing, unless such a provision is included within the pertinent deed restriction for that Unit. C. INCREASES TO BASE PRICE AND PERMITTED CAPITAL IMPROVEMENTS FOR PRICE CAPPEDHOUSING UNITS: All units will have maintenance and upkeep. Maintenance and upkeep is the owner’s responsibility, regardless of the deed restriction. Certain capital improvements to a unit may be included in a Community Housing’s Maximum Resale Price. Improvements may fall under 3 categories: Maintenance, Base Price Improvements, and Permitted Capital Improvements (“PCI”). Maintenance items are not allowed to be added to the owner’s Maximum Sale Price (“MSP”). Base Price and Permitted Capital Improvements may increase the owner’s Maximum Sales Price. The following list outlines the costs that may be included in an Owner’s Base Price. as "Permitted Capital Improvements" and provides a depreciation schedule forPermitted Capital Improvements. Base Price items are not counted against the Permitted Capital Improvement allowance. Maximum Sales Price Formula: Initial Purchase Price = Base Price + Appreciation + PCI = MSP Base Price, also sometimes called Initial Purchase Price, is the owner’s initial purchase price including garage, lot premium, or other developer inclusions, which resets upon each resale. The following improvements may be included in the Base Price with the written approval of the Program Administrator prior to the commencement of work: 1.Structural addition or addition of livable space including bathrooms, Bedrooms, exterior door, interior doors, baseboard, window casing, insulation, and plumbing (excluding fixtures) 2.Modifications or improvements to accommodate a person with a Disability as defined in the Americans with Disabilities Act of 1990. 3.Capital Improvements to the Homeowners Association Common Elements may be approved with the Town’s prior written approval and documentation demonstrating cost and individual unit owner’s proportionate share of the project, and subject to depreciation. Avon Community Housing Policies September 12 April 8, 20235 Page 28 Permitted Capital Improvements are replacement items an owner completes that may increase the Maximum Sales Price and are subject to depreciation (e.g., kitchen remodel, window replacement, flooring). See Appendix A for a complete table of Permitted Capital Improvements and Depreciation schedules Unless otherwise identified in the recorded deed restriction, the actual costs of Permitted Capital Improvements made to a unit shall not exceed 10% of the Initial Sales Price for a five-year term, regardless of changes in ownership. For every subsequent five-year period, an additional 10% of the value of the unit at the beginning of that five-year period may be added into the value as Permitted Capital Improvements. The five- year period for Permitted Capital Improvements shall not reset merely upon resale. No costs incurred in one five-year term may be rolled into a different five-year term. For an Owner to request Base Price Improvements and/or Permitted Capital Improvements be added to the Maximum Resale Price, Owners must retain original receipts and invoices. Additionally: 1. Upon completion of the work the following must be submitted to the Program Administrator: a. Legible copies of receipts for materials and or invoices for purchases. b. Proof of payment by a third party and itemized invoice receipt for work performed. 2. In calculating the costs allowed as Permitted Capital Improvements, only the Owner’s actual out of pocket costs and expenses shall be eligible for inclusion. Such an amount shall not include an amount attributable to the Owner's labor, or that of their employees or business, or to any appreciation in the value of these improvements. 3. If an Owner pays cash for improvements, the Owner must provide third party documentation of payment. An Owner must have an invoice for improvements, but if no such documentation of proof of cash payment can be produced, the Program Administrator can inspect the improvement completed in the unit. Up to 75% of documented invoice value may be included after an inspection, subject to depreciation, at the Program Administrator’s discretion. 4. Work that requires and is performed without the issuance of all required building permits or property owners’ association approval will not be included as a Base Price or Permitted Capital Improvement. 5. The value of the Permitted Capital Improvements will be added to the appreciated value of the unit at the time of sale. No appreciation is allowed on Permitted Capital Improvements. 6. Other improvements to the Affordable Housing unit are allowed, but adjustments to the Maximum Resale Price will only be given for Base Price and Permitted Capital Improvements. If a Base Price Improvement and/or Permitted Capital Improvements or an improvement included in the Base Price of the unit is removed or is no longer operational, the actual cost of the improvement shall be deducted from the Base Price or Permitted Capital Improvement schedule. No other categories or types of expenditures may qualify as Permitted Capital Improvements unless pre-approved in writing by the Program Administrator. D. RESALES OF RESIDENT OCCUPIED HOUSING UNITS 1. Listing Units. Resident Occupied Community Housing Units may be listed for sale using a licensed real estate agent, or as specified by the applicable deed restriction. An Owner who wishes to sell their Resident Occupied Community Housing Unit must follow these steps: a. Notify the Town, in writing of their intent to sell. Avon Community Housing Policies September 12 April 8, 20235 Page 29 b.The Town or its Program Administrator will provide the Deed Restriction, ACHP, application, and any other relevant documents necessary to advertise the unit for sale as deed restricted. c.Consult with the Program Administrator to review the Deed Restriction recorded against the unit and ACHP to determine the resale process and any other applicable provisions concerning a sale. d.The Town or Program Administrator shall administer the application review and buyer approval in accordance with the requirements in effect at the time of listing. e.The Owner may consult legal counsel regarding examination of title and all contracts, agreements and title documents. The retention of such counsel, licensed real estate brokers, or such related services (excluding all sales fees), will be at the Owner’s own expense. This section discusses the requirements for Property Managers and Renters of For Rent Community Housing units and projects. A. APPLICATION PROCESS: Only Eligible Households may rent Price Capped and Resident Occupied Community Housing Rental Units, unless prohibited by other funding sources. Households must meet all other requirements of the Deed Restriction. The Property Manager must document how eligibility and income was confirmed and must keep a record of any documents supporting the eligibility determination. B. ANNUAL VERIFICATION: The Property Manager of For Rent Capped Community Units must verify annually that the Owners and tenants follow the applicable Community Housing requirements. The Property Manager shall submit a written statement to the Town of Avon including the following information and certifying that such information is true and correct to the best of the Property Manager’s knowledge and belief. 1.A list of Owners or tenants who occupy the Community Housing Units in the prior calendar year and the evidence, to include income and employment documentation, submitted by such tenants to establish that their Households were Eligible Households; 2.A copy of the lease form currently used for tenants of the Community Housing Units; 3.Copies (which may be electronic) of all application information submitted by the Eligible Households occupying the Community Housing Units including but not limited to a copy of a driver’s license, voter registration, or vehicle registration information; Manager shall maintain Owner’s records with respect to the use and occupancy of the Community Housing Units available to Avon or its authorized agent for inspection upon request for audit to confirm compliance with the recorded deed restriction. A. REQUIRED DOCUMENTS: The Program Administrator may request any and all documents and information CHAPTER 8 ENFORCEMENT CHAPTER 7 PROPERTY MANAGERS | INFORMATION ON FOR RENT UNITS Avon Community Housing Policies September 12 April 8, 20235 Page 30 necessary to establish continued compliance with any deed restriction and with the ACHP as amended from time to time. The Owner of a Deed Restriction will provide documents that may include but are not limited to: Federal and State Income Tax Returns, W2’s, 1099’s, bank statements, vehicle and license information, pay stubs and invoices for utility payments. All information will maintain the confidentiality of financial information as provided by law. B. NON-ELIGIBLE TRANSFEREE: In the event that title to a Community Housing Unit vests in any individual or entity that is not an Eligible Household by descent, by foreclosure and/or redemption by any lien or mortgage holder (except any holder of a HUD-insured First Mortgage), or by operation of law or any other event, the Town may elect to notify the Non- Eligible individual or entity that it must sell the Community Housing Unit in accordance with these Policies. A Non-Eligible individual or entity shall not: (i) occupy a Community Housing Unit; (ii) rent all or any part of a Unit, except in strict compliance with the corresponding deed restriction and as approved in writing by the Avon; (iii) engage in any business activity on or in a Community Housing Unit; (iv) sell or otherwise transfer a Unit except in accordance with the applicable procedures; or (v) sell or otherwise transfer a Community Housing Unit for use in trade or business. C. FAILURE TO COMPLY: In the event an Owner fails to comply with any of the restrictions, the Town may, but is not required to, provide notice to the owner of the Community Housing unit in violation and provide an opportunity for the owner to cease and desist or cure. In the event a Community Housing Unit is occupied, transferred or leased in violation of a deed restriction, the Town may, at its sole discretion, notify an Owner that it must immediately list the Community Housing Unit for sale. D. UNCURED VIOLATION: In the case of such an uncured violation, if required by the Town, the Owner shall: (i) consent to any sale, conveyance or transfer of such Unit to an Eligible Household; (ii) execute any and all documents necessary to do so; and (iii) otherwise reasonably cooperate with Avon to take actions needed to accomplish such sale, conveyance or transfer of such Community Housing Unit. For this purpose, Owner constitutes and appoints Avon or the Program Administer as the Owner’s true and lawful attorney-in-fact with full power of substitution to complete or undertake any and all actions required or as set forth elsewhere in the corresponding deed restriction. It is further understood and agreed that this power of attorney, which shall be deemed to be a power coupled with an interest, cannot be revoked. Owner specifically agrees that all power granted to the Town under this Covenant may be assigned by it to its successors or assigns. E. REQUIRED RENTAL: In all situations where the provisions of this section apply, the Town may alternatively require the Owner to promptly rent their Unit to a lessee that is deemed an Eligible Household in accordance with the requirements of this Covenant and subject to the one (1) year limit while the Unit is listed for sale. F. PRESERVATION OF DEED RESTRICTED UNIT: In order to preserve the value of community housing, specifically, for persons of low to moderate income, and or to ensure the physical condition of the Community Housing Unit, the Town shall also have and is hereby granted the right and option to purchase a Community Housing Unit, exercisable within a period of fifteen (15) calendar days after notice is sent by the Town to the Owner that requires the Owner to sell the Unit due to a violation pursuant to this Section. The Town shall complete the purchase of such Unit within thirty (30) calendar days after exercising its option hereunder for a price equal to the lesser of the appraised market value of the Unit, as determined by the Program Administer in its reasonable, good faith judgment, or the Maximum Sale Price as may be limited by the underlying deed restriction. CHAPTER 9 APPEAL PROCEDURES Avon Community Housing Policies September 12 April 8, 20235 Page 31 An appeal is a request by a Community Housing Unit Owner or potential purchaser (collectively referred to as “Owner”) to reconsider an interpretation, action or failure to act in accordance with the rights, duties, welfare, or status of these persons or entities under these Policies. Procedures for filing an appeal are as follows: 1.The Owner must submit a written appeal to the Program Administrator. It shall specify: a.The decision for which the Owner requests reconsideration; b.The grounds for the reconsideration of the decision; c.The specific decision that the Owner requests; and d.The name, address, telephone number, email address of the Owner filing the grievance and similar information about his/her representative, if any. 2.Within thirty (30) days of receipt of a written appeal the Program Administrator may issue a written decision or may request additional information. The Program Administrator may request a meeting with the Owner at the discretion of the Program Administrator. If the Program Administrator requests additional information, then the timeframe to provide a written decision shall be extended by thirty (30) days for the purpose of receiving or collecting additional information. The Program Administrator shall provide a written decision on the appeal within ten (10) business days of meeting with the Owner. 3.If Owner’s appeal is not approved by the Program Administrator, the Owner may request a hearing before the Town Manager, in accordance with the following procedures: a.A written request for a hearing shall be submitted to the Program Administrator. b.The Town Manager shall schedule a hearing date within forty-five (45) days of receipt of the hearing request. c.The Owner requesting the Hearing and the Program Administrator may provide information to the Town Manager, including the decision which is the subject of the appeal, the initial appeal request and the appeal decision of the Program Administrator. All information received by the Town Manager shall be shared with both the Owner and the Program Administrator prior to the appeals hearing. d.The Town Manager may request additional information. e.Written notice of the date, time and place of the appeal hearing shall be provided to the Owner at least four (4) days in advance of the hearing, which timeframe may be waived by the Owner. f.The Owner and the Program Administrator may be present at the appeal hearing. g.The Town Manager shall consider all information provided prior to or during the appeal hearing, including testimony of the Owner, Program Administrator or other persons. The Town Manager shall provide a written decision within ten (10) business days of the appeals hearing, and such written decision shall be considered final and may not be appealed except to the courts in accordance with state law. Avon Community Housing Policies September 12 April 8, 20235 Page 32 APPENDIX A – DEED RESTRICTION TEMPLATES Price Capped Community Housing Deed Restriction Resident Occupied Community Housing Deed Restriction Rent Capped Community Housing Deed Restriction Owner Occupied Community Housing Unit Avon Community Housing Policies September 12 April 8, 20235 Page 33 APPENDIX B – PERMITTED CAPITAL IMPROVEMENTS Permitted Capital Improvements depreciated on a 5-year schedule Replaced appliances Door locks (including smart) Gutters and downspouts Washer/Dryer Ceiling fans Heat Tape Water heaters Thermostats (including smart) Exterior paint Carpet/pad replacement Permanent fitted window blinds Storm doors Laminate flooring Health and safety protection Building permit fees New garage door openers Permitted Capital Improvements depreciated on a 20-year schedule Hardwood or tile flooring Permanent landscaping Solar panels Solid stone countertops Trees Roof replacement (not reserved) Light fixtures Permanent irrigation systems Furnace replacement Plumbing fixtures Outdoor decks A/C, swamp cooler, split units Cabinets and vanities New fencing Closet organization systems Windows Improvements that are NOT Permitted Capital Improvements Jacuzzi, saunas, hot tubs, steam showers, etc. Work done without issuance of a building permit Maintenance, cleaning, painting, or improvements to existing mechanical systems, fixtures, appliances Decorative items including window coverings, lamps and lighting not affixed to walls or ceilings, bathroom towels bars, hooks, etc. Gas or electric fireplaces Cost of tools Removable items not attached to the unit Equipment rental Security and smart home systems Avon Community Housing Policies September 12, 2023 February 25, 2025 Page 34 APPENDIX C – RECOMMENDED LANGUAGE FOR USE IN LEGAL DOCUMENTS E.g., Declarations and Covenants, Plat Notes, etc. COVENANTS The Town of Avon hereby reserves the right to participate as a voting member of the “(Home)Owner(s) Association” as an equity partner to the Owner listed on Title for any properties restricted as a Town of Avon Deed Restricted Housing Unit. The Town of Avon reserves the right to review any financial documents as approved by the “(Home)Owner(s) Association”. PLAT NOTES Using “Community Housing” as a Use: All properties within / Lots / Parcel Nos. are hereby restricted as Community Housing Units, subject to the requirements of the Avon Municipal Code Titles 3 and 7. Using Inclusionary Housing Requirements: Unit Nos. are hereby restricted as Community Housing Units (“CHU”), subject to the requirements of the Avon Municipal Code and Avon Community Housing Policies (“ACHP”), until or unless said restriction is released by the Town of Avon. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 1 of 23 PRICE CAPPED DEED RESTRICTION THIS TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION (“Deed Restriction”) is entered into on __________________ 20____ (the “Effective Date”) by and between the Town of Avon, Colorado, a Colorado home rule municipality, with an address of 100 Mikaela Way, P.O. Box 975, Avon, Colorado 81620 (“Town”), and __________________________ [hereinafter known as “Owner”], (each individually a “Party” and collectively the “Parties”). WHEREAS, Owner is purchasing the real property and the improvements situated thereon, located at _______________________, Avon, Colorado 81620, and more particularly described in Exhibit A hereto (“Property”); and WHEREAS, the Town intends to place certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and the Avon Community Housing Policies (“ACHP”), and as they may be amended from time to time; and WHEREAS, the Town declares that the restrictive covenants set forth in this Deed Restriction are covenants running with the land and are binding upon all owners of the Property; and WHEREAS, the Town has authority as a home rule municipality to enter into this Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1.Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2.Definitions. The following definitions shall apply to terms used in the Deed Restriction: A.“Annual Compliance Recertification” means an annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP, and any other deed restriction monitoring or certifications required by the Town from time to time. EXHIBIT B TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 2 of 23 B.“Avon Community Housing Policies” means the Avon Community Housing Policies, as may be amended from time to time. which may include similar housing policies of another local or regional government housing authority serving the Avon community in the event that this Deed Restriction is assigned by Avon to such housing authority, and as they may be amended from time to time. C.“Eligible Household” means Households that (i) will use the Property as their Primary Residence, (ii) meet the employment qualification criteria below, and (iii) comply with the restriction on owning other real estate ownership below. Each of the criteria are further defined below: i.Employment Qualification: At least one primary member of the Household must meet one or more of the following criteria: (1)an employee working a total average of at least thirty (30) hours per week on an annual basis for a business(es) or employer(s) located within Eagle County; or (2)earns seventy-five percent (75%) or more of his or her income and earnings at a business(es) or employer(s) located within Eagle County, as documented with the United States Internal Revenue Service; or (3)has a qualified employment contract, that has been accepted by the Town, with an employer(s) within Eagle County on a permanent basis to work at least an average of thirty (30) hours per week on an annual basis, or (4)Employment qualifications may include classifications of workers (i.e. retirees, disabled, remote workers) in accordance with the Avon Community Housing Policies, as may be amended from time to time, and as approved by the Town. ii.Restriction on Owning Other Real Estate: (1)As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2)A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the sole written discretion of the Town or its assign. (3)Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 3 of 23 Household member has any financial interest in order to meet the requirements in this subsection. iii.Title of the Property shall be held in the name of the natural person(s) who are members of the Eligible Household and who qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. (1)Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.B. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2)To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. (3)Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D.“Household” means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. E.“Initial Sales Price” means the maximum price for which a Price Capped For- Sale Housing unit may be initially sold. It also refers to the amount paid by an Owner in a subsequent sale. F.“Maximum Sales Price” means the maximum amount an owner can sell the Community Housing Unit. G.“Owner” means the owner, as well as its agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. H.“Price Capped Community Housing” is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined herein. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 4 of 23 I. “Primary Residence” A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. J. “Qualified Employer” means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. K. “Short Term Rental” An Owner or non-Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. L. “Town” shall include employees of the Town of Avon, program administrators, or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. 3. Ownership, Occupancy and Use Restrictions: A. The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B. The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 5 of 23 governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C.Owner is subject to Annual Compliance Recertification confirming and verifying the Owner’s continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D.An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E.The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F.An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. G.Owner, other than a Qualified Employer, may not, except with prior written approval of the Town and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. Owner covenants that any lease of the Property shall include a reference that such lease is subject to the terms and conditions of this Deed Restriction and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H.Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Price Capped For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C , and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriciton on all current and subsequent Owners. I.All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 4.Resale Restrictions: The Property may not be sold or otherwise transferred to any person other than an Eligible Household and subject to the calculation of the Maximum Sales Price in accordance with Section 5 and the provisions of this Deed Restriction. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 6 of 23 A.In the event that an Owner desires to sell the Property, the sale or transfer of the Property shall be administered by the Town or its assigns in accordance with the most current ACHP procedures. B.Upon sale and conveyance of the Property by Owner to a buyer, the buyer shall be subject to the same occupancy and use requirements set forth in this Deed Restriction and the most recent version of the ACHP. 5. Maximum Sale Price: In no event shall the Property be sold for an amount in excess of the Initial Sales Price plus the applicable percentage of appreciation per year, and as provided below. A.Appreciation shall be three percent (3%), simple annually. i.In the event an Owner owns a Subject Property for only a portion of any year, the percentage increase shall be prorated monthly, from purchase date, and the Owner shall be given credit through the month in which the property is listed for sale. B.Permitted Capital Improvements shall not increase the Owner’s Initial Sales Price. For the purpose of determining the Maximum Sales Price, the Owner may add the following amounts: i.The cost of permitted capital improvements as set forth in the most current ACHP. ii.The cost of any permanent improvements constructed or installed as a result of any requirement imposed by any government agency or special assessment by a homeowner’s association for such permanent improvements, provided that written certification is provided to the Town. C.Real estate sales fees as identified in the most current ACHP. Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. NOTHING HEREIN SHALL BE CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY THE TOWN THAT ON RESALE THE OWNER SHALL OBTAIN A PARTICULAR PRICE INCLUDING BUT NOT LIMITED TO THE MAXIMUM SALES PRICE. 6.Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 7 of 23 covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 7. Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) of this Deed Restriction, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town’s right to inspect set forth in this Deed Restriction. The Town shall have permission to enter the Property during such times upon providing a Notice of Insp ection without further consent. 8. Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A. Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction, EHOP Guidelines or ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B. Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non- primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C. Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D. Default. If an administrative appeal request is not tiemly and properly submitted in writing and the default is not cured withing the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 8 of 23 E.Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle county pursuant to C.R.C.P. 106. 9.Remedies. The Town has the right to the following remedies. A.Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non- performance, default or breach of any term of this Deed Restriction by the Owner, the Town shall have the right to enforce Owner’s obligations herein by an action for any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. B.Interest on Amounts Due. Any amount due and owing to the Town shall bear interest at the rate of one and one half percent (1.5%) per month (eighteen percent [18%] per annum, compounded annually) until paid in full. C.Recovery of Costs to Enforce. The Town shall be entitled to recover any costs related to enforcement of this Deed Restriction, including but not limited to attorney’s fees, court filing costs and county recording costs. D.Lien. The Town may attach a lien for any amount due to the Town upon the Property and enforce the lien in the manner and according to the procedures set forth in Colorado Revised Statutes, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E.Joint and Several Liability. In the event of a transfer or conveyance of the Property that violates the terms of this Deed Restrictions and constitutes a violation of this Deed Restriction, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Deed Restriction. F.Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Househould/Eagle County Employee, as defined in the ACHP, or use of the Property as a Short Term Rental, non-primary residence or Second Home, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as a material requirement of curing the notice of default. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 9 of 23 10. Liquidated Damages. The Parties acknowledge and agree that in the event of a violation of this Deed Restriction by the Owner, the determination of actual monetary damages would be difficult to ascertain. Therefore, the Town and Owner hereby agree that liquidated damages shall be calculated and applied in the amount of Three Hundred Dollars ($300.00) per day for each day that the Owner is in violation of this Deed Restriction after having failed to timely cure the violation of this Deed Restriction. Liquidated damages shall be in addition to the Town’s ability to recover costs as stated in Section 8 above. Liquidated damages shall be in addition to the Town’s right to seek equitable remedies of injunction and/or specific performance. In the event of any lease or use of the Property as a Second Home, non-primary-residence or Short Term Rental, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as liquated damages as demanded by the Town (in lieu of the $300 daily liquidated damages), including such amounts collected or received by Owner prior to receipt of a Notice of Default and prior expiration of a thirty (30) day period to cure, and such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 11.Foreclosure. A.In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee’s deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B.Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only an Eligible Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C.Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee’s deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section 11.A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D.It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E.If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to an Eligible Household or rent the Property to qualified tenants who meet the income, TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 10 of 23 occupancy, and all other qualifications, established by the ACHP, until such time that the Property can be sold to an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town’s sole discretion. F.All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 12.Agreement Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter executed conveying the Property or any portion thereof shall expressly provide that such lease or conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease to a Unit or of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner’s period of ownership or Eligible Household’s occupancy. 13.General Provisions. A.Disputes. If any action is brought by a court of law by either party to this Deed Restriction concerning the enforcement, interpretation or construction of this Restrictive Deed Restriction, the prevailing party, either at trial or upon appeal, shall be entitled to reasonable attorney’s fees as well as costs, including expert witness’s fees, incurred in the prosecution or defense of such action. The exclusive forum for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B.Venue. The exclusive venue for dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. C.Severability. If any term, provision, covenant or condition of this Deed Restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Deed Restriction shall continue and remain in full force and effect. D.Counting Days. If the final day of any notice, default or other event falls on a Saturday, Sunday, legal holiday recognized by the State of Colorado or day upon which the Avon Town Hall is closed for any reason, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, legal holiday or day that the Avon Town Hall is closed. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 11 of 23 E.Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. F.Waiver. No waiver of one or more of the terms or provisions of this Deed Restriction shall be effective unless provided in writing. No waiver of any term or provision of this Deed Restriction in any instance shall constitute a waiver of such provision in any other instance. G.Amendment. This Deed Restriction may only be amended in writing by the mutual agreement of the Owner and the Town and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. H.Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction to any other public entity, non-profit corporation or other entity which is organized and exists for the purpose to provide and promote affordable housing for full time residents. I.No Third-Party Beneficiaries. Nothing contained in this Deed Restriction is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party. J. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. K.Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. L.Choice of Law. This Deed Restriction shall be governed and construed in accordance with the laws of the State of Colorado. Venue for any legal action arising from this Deed Restriction shall be in Eagle County, Colorado. M. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town’s assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 12 of 23 N.Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner’s expense. O. Personal Liability. By taking title to the Property, the Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Deed Restriction. P.Further Actions. Any Owner of the Property and the Town agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Deed Restriction or any agreement or document relating hereto or entered into in connection herewith. Q.Tax Sale. In the event of a tax sale, the deed restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approval which shall survive the sale of the Community Housing Unit through a tax lien sale process. R.Section Headings. Paragraph or section headings within this Deed Restriction are inserted solely for convenience of reference and are not intended to and shall not govern, limit or aid in the construction of any terms or provisions contained herein. S. Gender and Number. Whenever the context so requires in this Deed Restriction, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. T.Notice. Any notice, consent or approval, which is required to be given hereunder, shall be given by either depositing in the U.S. Mail with first class postage pre-paid; mailing by certified mail with return receipt requested; sending by overnight delivery with a nationally recognized courier service that delivers to the physical address of the Property; or, by hand- delivering to the intended recipient. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620 To Owner: _______________________ _______________________ _______________________ TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 13 of 23 With a copy to: the address provided by the Eagle County Assessor’s office TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 14 of 23 IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 15 of 23 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 16 of 23 EXHIBIT A [Insert Property Legal Description] TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 17 of 23 EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust (“Holder”) on the on the real property known as [Legal Description] ___________________________, (the “Property”), and subject to the issuance of a public trustee’s deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1.Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon Town of Avon C/O Town Manager C/O Town Attorney PO Box 975 PO Box 975 Avon, CO 81620 Avon, CO 81620 2.Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3.Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of conveyance to the Town or its assignee. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 18 of 23 4.Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town’s Option to Purchase and the Town of Avon’s Community Housing Price Capped Deed Restriction recorded at Reception Number ____________________in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5.Successors and Assigns: The provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of any Owner of the Property, and the Town 6.Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 19 of 23 IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the ___ day of ______________, 20__. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ____ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 20 of 23 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 21 of 23 EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION WHEREAS, [Buyer Name]____________________________ (the “Buyer”) is purchasing from [Seller Name]______________________ (the “Seller”) at a price of $[purchase price amount]________________________, the real property and improvements located in [Address & Neighborhood] ___________________________ more particularly described as: [Legal Description]___________________________, according to the plat recorded under Reception No. ________________________, in the real property records of Eagle County of Eagle, Colorado (the “Subject Property”); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled “TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION”, recorded on _________________, 20___, under Reception No. _______________, in the real property records of Eagle County, Colorado (the “Deed Restriction”). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household at no greater than the Maximum Sales Price exclusively on the sale or conveyance of the Subject Property. 3.I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 22 of 23 _________________________________ _________________________________ _________________________________ 5.I/we direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the ______________day of _______________, 20__. BUYER(S): ________________________________ ________________________________ Printed Name ________________________________ ________________________________ Printed Name STATE OF ________________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of ____________________, by ________________________________________________. Witness my hand and official seal. _________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 23 of 23 EXHIBIT A DEED RESTRICTION TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 1 of 20 THIS COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION (“Deed Restriction”) is made and entered into on __________________ 20____ (the “Effective Date”) by and between the Town of Avon, Colorado, a Colorado home rule municipality, with an address of 100 Mikaela Way, P.O. Box 975, Avon, Colorado 81620 (“Town”), and _________________________________, with an address of ________________, [hereinafter known as “Owner”], (each individually a “Party” and collectively the “Parties”). WHEREAS, Owner and Town desire to enter into this Deed Restriction; and, WHEREAS, the Town places certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and Avon Community Housing Policies (“ACHP”), and as they may be amended from time to time; and WHEREAS, the Town declares that the restrictive covenants set forth in this Deed Restriction are covenants running with the land and are binding upon all Owners of the Property; and WHEREAS, the Town has authority as a home rule municipality to enter into the Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1.Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2.Definitions. The following definitions shall apply to terms used in the Deed Restriction: A.“Annual Compliance Recertification” means an annual certification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP. B.“Property Subject to Deed Restriction” The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. EXHIBIT C TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 2 of 20 C. “Eligible Household” means Households that (i) will use that Unit as their Primary Residence, (ii) are qualified employees, and (iii) own no other real estate. Each of the criteria are further defined below: i. Employment Qualification: At least one primary member of a Household must meet one or more of the following criteria: (1) an employee working in Eagle County who works an average of at least thirty (30) hours per week on an annual basis; or (2) earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or (3) has been hired for a job in Eagle County on a permanent basis to work at least thirty (30) hours per work, or (4) Employment qualifications may include classifications of workers (i.e. retirees, disabled, remote workers) in accordance with the Avon Community Housing Policies, as may be amended from time to time. ii. Primary Residence. The Property will be used as the sole and exclusive place of residence as defined herein. iii. Restriction on Owning Other Real Estate: (1) As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2) A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the sole written discretion of the Town or its assign. (3) Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any Household member has any financial interest in order to meet the requirements in this subsection. iv. Title of the Property shall be held in the name of the natural person(s) who are members of the Household which qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 3 of 20 (1) Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.B. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2) To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. (3) Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D. “Household” means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. E. “Initial Sale” means the price the Resident Occupied For-Sale Housing unit may be initially sold for, the process for which that unit will be offered for sale, and the buyer selection process. F. “Owner” means the owner of a fee simple title to the Property, as well as its owner’s agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. G. “Primary Residence” A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. H. “Qualified Employer” means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 4 of 20 Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. I. “Resident Occupied Community Housing” is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence. J. “Short Term Rental” An Owner or non-Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. K. “Town” shall include employees of the Town of Avon or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. 3. Ownership and Use Restrictions: A. The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B. The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C. Owner is subject to Annual Compliance Recertification confirming and verifying the Owner’s continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 5 of 20 Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D. An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E. The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F. An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. G. Owner, other than a Qualified Employer, may not, except with prior written approval of the Town and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. Owner covenants that any lease of the Property shall include a reference that such lease is subject to the terms and conditions of this Deed Restriction and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H. Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Resident Occupied For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C , and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriction on all current and subsequent Owners. I. All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 4. Sale Restrictions: The Property may not be sold otherwise transferred to any person other than an Eligible Household and in accordance with the procedures set for verification contained in this Section 4. A. Initial Sale by Owner. Unless otherwise governed by the ACHP, the process for Initial Sale by the developer and buyer selection shall be administered by the Town. B. Resale. i. Owner shall deliver to the Town, or its assigns, a written notice of intent to sell the Subject Property which notice shall include the name(s) of the buyer(s) and all information required to determine whether the buyer(s) meets the definition of an Eligible Household. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 6 of 20 ii. Buyer(s) shall submit an administrative fee in the amount of TWO HUNDRED AND FIFTY DOLLARS ($250.00) to the Town to pay for the cost of reviewing and rendering a determination as to whether a prospective buyer(s) meets the definition of an Eligible Household. The administrative fee may be increase by the Town over time by an amount equal to the annual increases in the Consumer Price Index for All Urban Consumers for the Denver-Aurora-Lakewood, Colorado metropolitan area as defined by the United States Bureau of Labor Statistics (or such other Consumer Price Index as may be adopted by the United States Bureau of Labor Statistics for Colorado) to cover the Town’s costs associated with processing the application. iii. Once the Town has received complete information concerning the prospective buyer(s) and has received the administrative fee, the Town shall review the information and make a written determination as to whether the buyer(s) meet the definition of an Eligible Household within thirty (30) days of receipt of such information. iv. The Town may require the buyer to reimburse the Town of any additional costs that are incurred in the review and determination of whether a buyer(s) meets the definition of an Eligible Household, including but not limited to legal costs, title review costs, and investigation costs if reasonably required by the Town to complete its investigation. v. The Owner may sell and convey the Subject Property to the buyer(s) that is determined in writing by the Town to be an Eligible Household. vi. Upson sale and conveyance of the Subject Property by Owner to a buyer(s), the buyer(s) shall be subject to the same occupancy and use requirements set forth in this Agreement. 5. Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 6. Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) of this Deed Restriction, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town’s right to inspect set forth in this Deed Restriction. The TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 7 of 20 Town shall have permission to enter the Property during such times upon providing a Notice of Inspection without further consent. 7. Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A. Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction, EHOP Guidelines or ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B. Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non-primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C. Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D. Default. If an administrative appeal request is not tiemly and properly submitted in writing and the default is not cured withing the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. E. Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle county pursuant to C.R.C.P. 106. 8. The Town has the right to the following remedies. A. Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 8 of 20 injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non-performance, default or breach of any term of this Deed Restriction by the Owner, the Town shall have the right to enforce Owner’s obligations herein by an action for any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. B. Interest on Amounts Due. Any amount due and owing to the Town shall bear interest at the rate of one and one half percent (1.5%) per month (eighteen percent [18%] per annum, compounded annually) until paid in full. C. Recovery of Costs to Enforce. The Town shall be entitled to recover any costs related to enforcement of this Deed Restriction, including but not limited to attorney’s fees, court filing costs and county recording costs. D. Lien. The Town may attach a lien for any amount due to the Town upon the Property and enforce the lien in the manner and according to the procedures set forth in Colorado Revised Statutes, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E. Joint and Several Liability. In the event of a transfer or conveyance of the Property that violates the terms of this Deed Restrictions and constitutes a violation of this Deed Restriction, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Deed Restriction. F. Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Household, as defined in the ACHP, or use of the Property as a Short Term Rental, non-primary residence or Second Home, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as a material requirement of curing the notice of default. 9. Liquidated Damages. The Parties acknowledge and agree that in the event of a violation of this Deed Restriction by the Owner, the determination of actual monetary damages would be difficult to ascertain. Therefore, the Town and Owner hereby agree that liquidated damages shall be calculated and applied in the amount of Three Hundred Dollars ($300.00) per day for each day that the Owner is in violation of this Deed Restriction after having failed to timely cure the violation of this Deed Restriction. Liquidated damages shall be in addition to the Town’s ability to recover costs as stated in Section 8 above. Liquidated damages shall be in addition to the Town’s right to seek equitable remedies of injunction and/or specific performance. In the event of any lease or use of the Property as a Second Home, non-primary-residence or Short Term Rental, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as liquated damages as demanded by the Town (in lieu of the $300 daily liquidated damages), including such amounts collected or received by Owner TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 9 of 20 prior to receipt of a Notice of Default and prior expiration of a thirty (30) day period to cure, and such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 10. Foreclosure. A. In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee’s deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only a Town of Avon Employee Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C. Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee’s deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section 11.A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D. It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E. If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to a Town of Avon Employee Household or an Eligible Household or rent the Property to qualified tenants who meet the income, occupancy, and all other qualifications, established by the EHOP Guidelines and/or the ACHP, until such time that the Property can be sold to a Town of Avon Employee Household or an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town’s sole discretion. F. All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 11. Deed Restriction Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 10 of 20 executed conveying the Property or any portion thereof shall expressly provide that such lease or conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner’s period of ownership or Eligible Household’s occupancy. 12. General Provisions. A. Disputes. The exclusive forum for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B. Venue. The exclusive venue for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. C. Severability. If any term, provision, covenant or condition of this Deed Restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Deed Restriction shall continue and remain in full force and effect. D. Counting Days. If the final day of any notice, default or other event falls on a Saturday, Sunday, legal holiday recognized by the State of Colorado or day upon which the Avon Town Hall is closed for any reason, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, legal holiday or day that the Avon Town Hall is closed. E. Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. F. Waiver. No waiver of one or more of the terms or provisions of this Deed Restriction shall be effective unless provided in writing. No waiver of any term or provision of this Deed Restriction in any instance shall constitute a waiver of such provision in any other instance. G. Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction to any other public entity, non-profit corporation or other entity which is organized and exists for the purpose to provide and promote affordable housing for full time residents. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 11 of 20 H. No Third-Party Beneficiaries. Nothing contained in this Deed Restriction is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party. I. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. J. Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. K. Choice of Law. This Deed Restriction shall be governed and construed in accordance with the laws of the State of Colorado. Venue for any legal action arising from this Deed Restriction shall be in Eagle County, Colorado. L. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town’s assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. M. Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner’s expense. N. Personal Liability. By taking title to the Property, the Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Deed Restriction. O. Further Actions. Any Owner of the Property and the Town agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Deed Restriction or any agreement or document relating hereto or entered into in connection herewith. P. Section Headings. Paragraph or section headings within this Deed Restriction are inserted solely for convenience of reference and are not intended to and shall not govern, limit or aid in the construction of any terms or provisions contained herein. Q. Tax Sale. In the event of a tax sale, the deed restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approval which shall survive the sale of the Community Housing Unit through a tax lien sale process. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 12 of 20 R. Gender and Number. Whenever the context so requires in this Deed Restriction, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. S. Notice. Any notice, consent or approval, which is required to be given hereunder, shall be given by either depositing in the U.S. Mail with first class postage pre-paid; mailing by certified mail with return receipt requested; sending by overnight delivery with a nationally recognized courier service that delivers to the physical address of the Property; or, by hand- delivering to the intended recipient. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620. To Town of Owner: _______________________ _______________________ _______________________ With a copy to: the address provided by the Eagle County Assessor’s office. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 13 of 20 IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this __ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. My commission expires: ____________________________________ Notary Public TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 14 of 20 EXHIBIT A [Insert Property Legal Description] TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 15 of 20 EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust (“Holder”) on the on the real property known as [Legal Description] ___________________________, (the “Property”), and subject to the issuance of a public trustee’s deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1. Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon Town of Avon C/O Town Manager C/O Town Attorney PO Box 975 PO Box 975 Avon, CO 81620 Avon, CO 81620 2. Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3. Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of conveyance to the Town or its assignee. 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 16 of 20 to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town’s Option to Purchase and the Town of Avon’s Community Housing Resident Occupied Deed Restriction recorded at Reception Number ____________________in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5. Successors and Assigns: The provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of any Owner of the Property, and the Town. 6. Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 17 of 20 IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the ___ day of ______________, 2024. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ____ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 18 of 20 EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION WHEREAS, [Buyer Name]____________________________ (the “Buyer”) is purchasing from [Seller Name]______________________ (the “Seller”) at a price of $[purchase price amount]________________________, the real property and improvements located in [Address & Neighborhood] ___________________________ more particularly described as: [Legal Description]___________________________, according to the plat recorded under Reception No. ________________________, in the real property records of Eagle County of Eagle, Colorado (the “Subject Property”); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled “TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION”, recorded on _________________, 20__, under Reception No. _______________, in the real property records of Eagle County, Colorado (the “Deed Restriction”). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household exclusively on the sale or conveyance of the Subject Property. 3. I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: _________________________________ _________________________________ _________________________________ 5. I/we direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 19 of 20 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the ______________day of _______________, 20__. BUYER(S): ________________________________ ________________________________ Printed Name ________________________________ ________________________________ Printed Name STATE OF ________________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of ____________________, by ________________________________________________. Witness my hand and official seal. _________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING RESIDENT OCCUPIED DEED RESTRICTION Resident Occupied Community Housing Deed Restriction Page 20 of 20 EXHIBIT A DEED RESTRICTION Replacement Price Capped Deed Restriction March 25, 2025 Page 1 of 4 TO: Honorable Mayor Tamra N. Underwood and Council members FROM: Patti Liermann, Housing Planner RE: Price Capped Deed Restriction Replacement DATE: March 25, 2025 SUMMARY: This report provides Avon Town Council (“Council”) with information on replacing the price capped deed restriction form at several deed restricted properties in Avon. This report is separated into two parts, A and B, which correspond with Attachments A and B, for Council approval. BACKGROUND: In 2023, Council approved an update to the Avon Community Housing Policies (“ACHP”) in anticipation of updating aging deed restrictions. The purpose of the ACHP is to further define and clarify provisions of deed restrictions. As a policy document, it is amendable and can adapt to changing conditions. The previous ACHP (Town of Avon Housing Guidelines) was created in 1991 and had never been updated. The 2023 ACHP replacement modernized terms and expired metrics. The ACHP specifically details eligibility, occupancy, and resale selection of For Sale and For Rent Resident Occupied and Price Capped Deed Restricted properties. Much of the Town’s price capped deed restricted housing stock was built between 1991 and 2000. Several of those deed restrictions either make no reference to the ACHP or contain provisions that conflict with the ACHP update. The replacement deed restriction form proposed to Council will remove any previous conflict between the deed restriction and the new ACHP and will standardize policies moving forward. Once approved by Council, individual Owners of price capped units can choose to replace the deed restriction. The replacement deed restriction will be mutually beneficial for the Owners and the Town. This replacement deed restriction is entirely elective by the Owners and will carry financial benefits for them. Table of Town Deed Restricted Properties and Key Policies Location Buyer Eligibility Capital Improvements Resale Selection Wildwood est. 1991 TOA / Publicly developed Qualified Buyers as defined in the ACHP Not to exceed 10% of the original purchase price of unit (total) Seller selects Chapel Square est. 1997 Private Developer generated (inclusionary) Qualified Buyers as defined in the deed restriction, primary/sole residence, work 30hrs/week, 150% AMI income restriction, asset cap 10% of original purchase price, 10 year reset with a 10% increase over the original purchase price, limited items, no depreciation When more than one Qualified Buyer exists, a lottery will be held (no further information) Lodge at Brookside est. 1998 Private Developer generated (inclusionary) Qualified Buyers as defined in deed restriction, primary/sole residence, work 30hrs/week, 120% AMI income restriction, asset cap 10% of original purchase price, 10 year reset with a 10% increase over the original purchase price, limited items, no depreciation When more than one Qualified Buyer exists, a lottery will be held (no further information) Sheraton Mt Vista est. 2000 Employer / Private Developer generated (inclusionary) Qualified Buyer as defined in deed restriction, primary/sole residence, work 30hrs/week, 120% AMI income restriction, asset cap 10% of original purchase price, 10 year reset with a 10% increase over the original purchase price, limited items, no depreciation Selection process: Lowest income, work/live in Town, work/ live in Eagle County Replacement Price Capped Deed Restriction March 25, 2025 Page 2 of 4 Grandview est. 2000 Private Developer generated Qualified Buyer as defined in deed restriction, primary/sole residence, work 30hrs/week, 120% AMI income restriction, asset cap 10% of original purchase price, 10 year reset with a 10% increase over the original purchase price, limited items, no depreciation Selection process: Lowest income, work/live in Town, work/ live in Eagle County PART A- PRICE CAPPED DEED RESTRICTION REPLACEMENT & TEMPLATE FOR FUTURE PROJECTS The new form of price capped deed restriction addresses three major provisions inconsistent across several deed restrictions and/or have not aged well over time for Owners. Changes will reflect the following: 1. Buyer Eligibility is defined in the deed restriction with details pointing to the most recent version of the ACHP. It clarifies retirement, disability, and other exceptions consistently and universally with other partner housing organizations and industry standards. This consistency is important for Buyers navigating a complicated process across multiple jurisdictions. 2. Permitted Capital Improvements (“PCI”) allowance points directly to the ACHP. This is 10% of the unit’s Base Price, resetting every 5 years to the unit’s updated Base Price. Items eligible for PCI are listed in the ACHP under two depreciation categories: 5- and 20-year. The ACHP item list is comprehensive and thoroughly covers replacement items for typical homes, allowing owners to routinely capture replacement expenses in their Maximum Sale Price (“MSP”). 3. Resale Process will run through the Town or its Program Administrator. The process is outlined in the deed restriction and further defined in the ACHP. A neutral selection creates a fair and equitable process for buyers and eliminates impropriety. A consistent selection process across each deed restriction creates clarity for Buyers purchasing in the Town of Avon. 4. Other provision updates to Breach, Remedy, General Provisions, Option to Purchase, and the Acknowledgement will be better aligned with current standards. This price capped deed restriction will be used for Chapel Square, Lodge at Brookside, Grandview, and Sheraton Mt Vista. Owners at each of the referenced properties can choose to replace the deed restriction during their ownership or the Town will replace it upon resale. The proposed template will be tailored individually to match the specific property it's replacing and approved by the Town Attorney. PART B- PRICE CAPPED DEED RESTRICTION REPLACEMENT: WILDWOOD TOWNHOMES. Wildwood Townhomes was Avon’s first deed restricted project. The form of the Deed Restriction is the most inconsistent with today’s standards and practices and is unique even compared to other price capped deed restrictions within Avon. Staff met with Wildwood Townhome Owners in November 2023, May 2024, and March 2025. • November 2023 – this meeting was a listening session to understand concerns about ownership and the deed restriction. Owner concerns included the low price point of units and desire to select their buyer in the future. Replacement Price Capped Deed Restriction March 25, 2025 Page 3 of 4 • May 2024 – this meeting provided draft changes to the deed restriction and a potential Base Price Adjustment to correct the price disparity, bringing prices in line with the most recent resale. • March 2025 – this meeting was held with the Town Manager and Community Development Director to learn remaining concerns from the Owners. Owners cited that the Base Price adjustment should be higher ($550k), annual compliance is unreasonable, Council meeting comment period is not long enough, desire to select their buyer, inheritance needs to be an option, and home inspections make them uncomfortable. Staff presented the deed restriction replacements at the September 24, 2024 Council meeting. Wildwood Townhome Owners were concerned about the resale selection process and voiced strong preference for retaining the right to select their future buyer(s). Wildwood Owners also requested additional time to review the deed restriction replacement and ACHP prior to Council approving the replacement deed restriction. Council delayed approval of the deed restriction replacement and The Town Manager offered to meet directly with Wildwood Townhome Owners to answer questions. The Town Manager scheduled meetings with a point of contact at Wildwood Townhomes on 4 separate dates. Each of those dates was moved or cancelled by the contact at Wildwood Townhomes. The Town Manager reach out and scheduled a date in March, which was moved once, then attended by 6 owners and a representative appointed by the Owners. Staff’s proposal to Council includes all changes referenced in Part A plus one additional change, reflecting on the outcome of owner meetings: a one-time adjustment to the Base Price. Many original and long-term unit owners are experiencing severe price disparity. Staff recommends adjusting all unit Base Prices upward to the most recent sale price of the equivalent unit type (2- or 3- bedroom). Since those sales may have occurred a few years ago, the adjustment is based on the Base Price value of that most recent value as of January 1, 2024. Staff then rounded to the next whole number, allowing all owners to equitably benefit from this adjustment. This adjustment is to the Base Price, before capital improvements are added to the Maximum Sales Price. Proposed Base Price Adjustment of value as of January 1, 2024: a. 2 bedroom: $200,000 b. 3 bedroom: $250,000 While the Wildwood Townhome owners have requested additional customizations to their deed restriction, Staff recommends consistency among deed restriction programs. The deed restriction replacement is offered as an individual owner decision and is not contingent upon all owners signing on. Owners may want to consult individually with Town Staff and therefore Staff recommends the timeline to sign on extend through March 31, 2026 for the Base Price Adjustment to be effective. If owners choose not to sign onto the replacement deed restriction, the replacement deed restriction will be used at the time of resale but with no adjustment to the Base Price. OPTIONS: Council has the following options: • Approve the replacement deed restrictions • Approve the replacement deed restrictions with revisions • Continue to a specific date • Table discussion Replacement Price Capped Deed Restriction March 25, 2025 Page 4 of 4 RECOMMENDATION: I recommend Council approve and authorize use of the attached forms of Price Capped Deed Restrictions to be used in replacing existing price capped deed restrictions. TOWN MANAGER COMMENTS: I support the use of the proposed replacement Price Capped Deed Restrictions. PROPOSED MOTION: “I move to authorize the use of the replacement Price Capped Deed Restriction forms in Attachment A and Attachment B to Staff’s report.” Thank you, Patti ATTACHMENT A: Price Capped Replacement Form ATTACHMENT B: Wildwood Price Capped Replacement Form TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 1 of 23 PRICE CAPPED DEED RESTRICTION THIS TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION (“Deed Restriction”) is entered into on __________________ 20____ (the “Effective Date”) by and between the Town of Avon, Colorado, a Colorado home rule municipality, with an address of 100 Mikaela Way, P.O. Box 975, Avon, Colorado 81620 (“Town”), and __________________________ [hereinafter known as “Owner”], (each individually a “Party” and collectively the “Parties”). WHEREAS, Owner owns the real property and the improvements situated thereon, located at _______________________, Avon, Colorado 81620, and more particularly described in Exhibit A hereto (“Property”); and WHEREAS, the Property was originally purchased on __ day of ________ ___, and subject to The Town of Avon’s Occupancy and Resale Deed Restriction of [insert name of property]__________, Agreement, and Covenant recorded on ___ day of ________ with Eagle County Clerk and Recorder; and WHEREAS, with voluntary agreement by the Owner, the Town has agreed to replace the Town of Avon’s Occupancy and Resale Deed Restriction, Agreement, and Covenant with this Deed Restriction, WHEREAS, the Town has agreed to place certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and Avon Community Housing Policies (“ACHP”), and as they may be amended from time to time; and WHEREAS, the Town declares that the restrictive covenants set forth in this Deed Restriction are covenants running with the land and are binding upon all owners of the Property; and WHEREAS, the Town has authority as a home rule municipality to enter into the Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: COVENANTS 1.Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Attachment A TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 2 of 23 Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2.Definitions. The following definitions shall apply to terms used in the Deed Restriction: A.“Annual Compliance Recertification” means an annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP, and any other deed restriction monitoring or certifications required by the Town from time to time. B.“Avon Community Housing Policies” or “ACHP” means the Avon Community Housing Policies, as may be amended from time to time, which may include similar housing policies of another local or regional government housing authority serving the Avon community in the event that this Deed Restriction is assigned by Avon to such housing authority, and as they may be amended from time to time. C.“Eligible Household” means Households that (i) will use the Property as their Primary Residence, (ii) meet the employment qualification criteria below, and (iii) comply with the restriction on owning other real estate ownership below. Each of the criteria are further defined below: i.Employment Qualification: At least one primary member of the Household must meet one or more of the following criteria: (1)an employee working a total average of at least thirty (30) hours per week on an annual basis for a business(es) or employer(s) located within Eagle County; or (2)earns seventy-five percent (75%) or more of his or her income and earnings at a business(es) or employer(s) located within Eagle County, as documented with the United States Internal Revenue Service; or (3)has a qualified employment contract, that has been accepted by the Town, with an employer(s) within Eagle County on a permanent basis to work at least an average of thirty (30) hours per week on an annual basis, or (4)Employment qualifications may include classifications of workers (e.g.: retirees, disabled) in accordance with the Avon Community Housing Policies, as may be amended from time to time, and as approved by the Town. ii.Primary Residence. The Property will be used as the sole and exclusive place of residence as defined herein. iii.Restriction on Owning Other Real Estate: TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 3 of 23 (1)As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2)A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the sole written discretion of the Town or its assign. (3)Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any Household member has any financial interest in order to meet the requirements in this subsection. iv.Title of the Property shall be held in the name of the natural person(s) who are members of the Eligible Household and who qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. (1)Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.B. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2)To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. (3)Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D.“Household” means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 4 of 23 E. “Initial Sales Price” means the maximum price for which a Price Capped For- Sale Housing unit may be initially sold. It also refers to the amount paid by an Owner in a subsequent sale. F. “Maximum Sales Price” means the maximum amount an owner can sell the Community Housing Unit. G. “Owner” means the owner of fee simple title to the Property, as well as its owner’s agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. H. “Price Capped Community Housing” is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined herein. I. “Primary Residence” A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. J. “Qualified Employer” means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. K. “Short Term Rental” An Owner or non-Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. L. “Town” shall include employees of the Town of Avon or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 5 of 23 3. Ownership, Occupancy and Use Restrictions: A. The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B. The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C. Owner is subject to Annual Compliance Recertification confirming and verifying the Owner’s continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D. An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E. The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F. An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 6 of 23 G. Owner, other than a Qualified Employer, may not, except with prior written approval of the Town and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. Owner covenants that any lease of the Property shall include a reference that such lease is subject to the terms and conditions of this Deed Restriction and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H. Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Price Capped For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C , and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriction on all current and subsequent Owners. I. All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 4. Resale Restrictions: The Property may not be sold or otherwise transferred to any person other than an Eligible Household and subject to the calculation of the Maximum Sales Price in accordance with Section 5 and the provisions of this Deed Restriction. A. In the event that an Owner desires to sell the Property, the sale or transfer of the Property shall be executed implemented administered by the Town or its assigns in accordance with the most current ACHP procedures. B. Upon sale and conveyance of the Property by Owner to a buyer, the buyer shall be subject to the same occupancy and use requirements set forth in this Deed Restriction and the most recent version of the ACHP. 5. Maximum Sale Price: In no event shall the Property be sold for an amount in excess of the Initial Sales Price plus the applicable percentage of appreciation per year, and as provided below. A. Appreciation shall be three percent (3%), simple annually. i. In the event an Owner owns a Subject Property for only a portion of any year, the percentage increase shall be prorated monthly, from purchase date, and the Owner shall be given credit through the month in which the property is listed for sale. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 7 of 23 B. Permitted Capital Improvements shall not increase the Owner’s Initial Sales Price and are subject to depreciation as set forth in the most current ACHP. For the purpose of determining the Maximum Sales Price, the Owner may add the following amounts: i. The cost of permitted capital improvements as set forth in the most current ACHP. ii. The cost of any permanent improvements constructed or installed as a result of any requirement imposed by any government agency or assessment by a homeowner’s association for such permanent improvements, provided that written certification is provided and approved by the Town. C. Real estate sales fees as identified in the most current ACHP. Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. NOTHING HEREIN SHALL BE CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY THE TOWN THAT ON RESALE THE OWNER SHALL OBTAIN A PARTICULAR PRICE INCLUDING BUT NOT LIMITED TO THE MAXIMUM SALES PRICE. 6. Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 7. Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) of this Deed Restriction, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town’s right to inspect set forth in this Deed Restriction. The Town shall have permission to enter the Property during such times upon providing a Notice of Insp ection without further consent. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 8 of 23 8. Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A. Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction, ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B. Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non- primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C. Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D. Default. If an administrative appeal request is not timely and properly submitted in writing and the default is not cured within the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. E. Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle County pursuant to C.R.C.P. 106. 9. Remedies. The Town has the right to the following remedies. A. Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non- performance, default or breach of any term of this Deed Restriction by the Owner, the Town shall have the right to enforce Owner’s obligations herein by an action for TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 9 of 23 any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. B. Interest on Amounts Due. Any amount due and owing to the Town shall bear interest at the rate of one and one half percent (1.5%) per month (eighteen percent [18%] per annum, compounded annually) until paid in full. C. Recovery of Costs to Enforce. The Town shall be entitled to recover any costs related to enforcement of this Deed Restriction, including but not limited to attorney’s fees, court filing costs and county recording costs. D. Lien. The Town may attach a lien for any amount due to the Town upon the Property and enforce the lien in the manner and according to the procedures set forth in Colorado Revised Statutes, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E. Joint and Several Liability. In the event of a transfer or conveyance of the Property that violates the terms of this Deed Restrictions and constitutes a violation of this Deed Restriction, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Deed Restriction. F. Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Household/Eagle County Employee, as defined in the ACHP, or use of the Property as a Short Term Rental, non-primary residence or Second Home, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as a material requirement of curing the notice of default. 10. Liquidated Damages. The Parties acknowledge and agree that in the event of a violation of this Deed Restriction by the Owner, the determination of actual monetary damages would be difficult to ascertain. Therefore, the Town and Owner hereby agree that liquidated damages shall be calculated and applied in the amount of Three Hundred Dollars ($300.00) per day for each day that the Owner is in violation of this Deed Restriction after having failed to timely cure the violation of this Deed Restriction. Liquidated damages shall be in addition to the Town’s ability to recover costs as stated in Section 8 above. Liquidated damages shall be in addition to the Town’s right to seek equitable remedies of injunction and/or specific performance. In the event of any lease or use of the Property as a Second Home, non-primary-residence or Short Term Rental, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as liquated damages as demanded by the Town (in lieu of the $300 daily liquidated damages), including such amounts collected or received by Owner prior to receipt of a Notice of Default and prior expiration of a thirty (30) day period to cure, and TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 10 of 23 such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 11. Foreclosure. A. In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee’s deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B. Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only an Eligible Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C. Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee’s deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section 11.A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D. It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E. If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to an Eligible Household or rent the Property to qualified tenants who meet the income, occupancy, and all other qualifications, established by the ACHP, until such time that the Property can be sold to an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town’s sole discretion. F. All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 12. Deed Restriction Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter executed conveying the Property or any portion thereof shall expressly provide that such lease or TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 11 of 23 conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner’s period of ownership or Eligible Household’s occupancy. 13. General Provisions. A. Venue. The exclusive venue for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B. Severability. If any term, provision, covenant or condition of this Deed Restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Deed Restriction shall continue and remain in full force and effect. C. Counting Days. If the final day of any notice, default or other event falls on a Saturday, Sunday, legal holiday recognized by the State of Colorado or day upon which the Avon Town Hall is closed for any reason, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, legal holiday or day that the Avon Town Hall is closed. D. Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. E. Waiver. No waiver of one or more of the terms or provisions of this Deed Restriction shall be effective unless provided in writing. No waiver of any term or provision of this Deed Restriction in any instance shall constitute a waiver of such provision in any other instance. F. Amendment. This Deed Restriction may only be amended in writing by the mutual agreement of the Owner and the Town and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. G. Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction to any other public entity, non-profit corporation or other entity which is organized and exists for the purpose to provide and promote affordable housing for full time residents. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 12 of 23 H. No Third-Party Beneficiaries. Nothing contained in this Deed Restriction is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party. I. No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. J. Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. K. Choice of Law. This Deed Restriction shall be governed and construed in accordance with the laws of the State of Colorado. Venue for any legal action arising from this Deed Restriction shall be in Eagle County, Colorado. L. Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town’s assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. M. Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner’s expense. N. Personal Liability. By taking title to the Property, the Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Deed Restriction. O. Further Actions. Any Owner of the Property and the Town agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Deed Restriction or any agreement or document relating hereto or entered into in connection herewith. P. Section Headings. Paragraph or section headings within this Deed Restriction are inserted solely for convenience of reference and are not intended to and shall not govern, limit or aid in the construction of any terms or provisions contained herein. Q. Gender and Number. Whenever the context so requires in this Deed Restriction, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 13 of 23 R. Tax Sale. In the event of a tax sale, the deed restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approval which shall survive the sale of the Community Housing Unit through a tax lien sale process. S. Entire Agreement. This deed restriction replaces, repeals, nullifies and supersedes in its entirety that previous deed restriction recorded onto the subject property at Reception Number ____________ of Eagle County Recorder’s Office on __________. T. Notice. Any notice, consent or approval, which is required to be given hereunder, shall be given by either depositing in the U.S. Mail with first class postage pre-paid; mailing by certified mail with return receipt requested; sending by overnight delivery with a nationally recognized courier service that delivers to the physical address of the Property; or, by hand- delivering to the intended recipient. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620 To Owner: _______________________ _______________________ _______________________ With a copy to: the address provided by the Eagle County Assessor’s office. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 14 of 23 IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 15 of 23 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 16 of 23 EXHIBIT A [Insert Property Legal Description] TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 17 of 23 EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust (“Holder”) on the real property known as [Legal Description] ___________________________, (the “Property”), and subject to the issuance of a public trustee’s deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1. Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceedings. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon Town of Avon C/O Town Manager C/O Town Attorney PO Box 975 PO Box 975 Avon, CO 81620 Avon, CO 81620 2. Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3. Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 18 of 23 conveyance to the Town or its assignee. 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town’s Option to Purchase and the Town of Avon’s Community Housing Price Capped Deed Restriction recorded at Reception Number ____________________in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5. Successors and Assigns: The provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of any Owner of the Property, and the Town 6. Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 19 of 23 IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the ___ day of ______________, 2024. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ____ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 20 of 23 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 21 of 23 EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION WHEREAS, [Buyer Name]____________________________ (the “Buyer”) is purchasing from [Seller Name]______________________ (the “Seller”) at a price of $[purchase price amount]________________________, the real property and improvements located in [Address & Neighborhood] ___________________________ more particularly described as: [Legal Description]___________________________, according to the plat recorded under Reception No. ________________________, in the real property records of Eagle County of Eagle, Colorado (the “Subject Property”); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled “TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION”, recorded on _________________, 20__, under Reception No. _______________, in the real property records of Eagle County, Colorado (the “Deed Restriction”). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household at no greater than the Maximum Sales Price exclusively on the sale or conveyance of the Subject Property. 3. I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 22 of 23 Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: _________________________________ _________________________________ _________________________________ 5. I/we direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the ______________day of _______________, 20___. BUYER(S): ________________________________ ________________________________ Printed Name ________________________________ ________________________________ Printed Name STATE OF ________________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of ____________________, by ________________________________________________. Witness my hand and official seal. _________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Page 23 of 23 EXHIBIT A DEED RESTRICTION TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 1 of 25 PRICE CAPPED DEED RESTRICTION THIS TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION (“Deed Restriction”) is entered into on __________________ 20____ (the “Effective Date”) by and between the Town of Avon, Colorado, a Colorado home rule municipality, with an address of 100 Mikaela Way, P.O. Box 975, Avon, Colorado 81620 (“Town”), and __________________________ [hereinafter known as “Owner”], (each individually a “Party” and collectively the “Parties”). WHEREAS, Owner owns the real property and the improvements situated thereon, located at _______________________, Avon, Colorado 81620, and more particularly described in Exhibit A hereto (“Property”); and WHEREAS, the Property was originally purchased on __ day of ________ ___, and subject to The Town of Avon’s Occupancy and Resale Deed Restriction, Agreement, and Covenant recorded on ___ day of ________ with Eagle County Clerk and Recorder; and WHEREAS, with voluntary agreement by the Owner, the Town has agreed to replace the Town of Avon’s Occupancy and Resale Deed Restriction, Agreement, and Covenant with this Deed Restriction, WHEREAS, in consideration of recording this deed restriction, the Base Price of the Unit is reset effective the date of this recording. The new Base Price, subject to the Maximum Sales Price herein, is $_______; and WHEREAS, the Town has agreed to place certain restrictions on the ownership and resale of the Property for the benefit of the Town by requiring ownership and resale of the Property as set forth in this Deed Restriction and Avon Community Housing Policies (“ACHP”), and as they may be amended from time to time; and WHEREAS, the Town declares that the restrictive covenants set forth in this Deed Restriction are covenants running with the land and are binding upon all owners of the Property; and WHEREAS, the Town has authority as a home rule municipality to enter into the Deed Restriction and to exercise all rights, remedies and administrative oversight in this Deed Restriction. NOW, THEREFORE, for and in consideration of the mutual promises and covenants contained herein, the sufficiency of which is mutually acknowledged, the Parties agree as follows: TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 2 of 25 COVENANTS 1.Property Subject to Deed Restriction. The Property, as more particularly described in Exhibit A hereto, is hereby burdened with the covenants and restrictions specified in this Deed Restriction. The ownership, use and sale of the Property shall be restricted as specified in this Deed Restriction. 2.Definitions. The following definitions shall apply to terms used in the Deed Restriction: A.“Annual Compliance Recertification” means an annual recertification under oath by the Owner to the Town stating the Property has maintained occupancy by an Eligible Household in accordance with this Deed Restriction and the ACHP, and any other deed restriction monitoring or certifications required by the Town from time to time. B.“Avon Community Housing Policies” or “ACHP” means the Avon Community Housing Policies, as may be amended from time to time. which may include similar housing policies of another local or regional government housing authority serving the Avon community in the event that this Deed Restriction is assigned by Avon to such housing authority, and as they may be amended from time to time. C.“Eligible Household” means Households that (i) will use the Property as their Primary Residence, (ii) meet the employment qualification criteria below, and (iii) comply with the restriction on owning other real estate ownership below. Each of the criteria are further defined below: i.Employment Qualification: At least one primary member of the Household must meet one or more of the following criteria: (1)an employee working a total average of at least thirty (30) hours per week on an annual basis for a business(es) or employer(s) located within Eagle County; or (2)earns seventy-five percent (75%) or more of his or her income and earnings at a business(es) or employer(s) located within Eagle County, as documented with the United States Internal Revenue Service; or (3)has a qualified employment contract, that has been accepted by the Town, with an employer(s) within Eagle County on a permanent basis to work at least an average of thirty (30) hours per week on an annual basis, or (4)Employment qualifications may include classifications of workers (e.g.: retirees, disabled) in accordance with the Avon Community Housing Policies, as may be amended from time to time, and as approved by the Town. Attachment B TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 3 of 25 ii.Primary Residence. The Property will be used as the sole and exclusive place of residence as defined herein. iii.Restriction on Owning Other Real Estate: (1)As of the date of purchase of the Property, during ownership of the Property and during any period of time the Property is occupied by an Eligible Household, no member of such Eligible Household, including, but not limited to, spouses and children under 18 years of age, may own any interest, alone or in conjunction with others, anywhere in any improved residential real property(ies), which may be subject to exceptions provided in the Avon Community Housing Policies. (2)A member of an Eligible Household that owns commercial property for business use or vacant land may request an exemption from this requirement, which may be granted at the sole written discretion of the Town or its assign. (3)Real estate that is owned by a prospective or current Eligible Household shall not be deeded to a corporation or other person or entity except for a fair market value, nor shall real estate be deeded to a corporation or other legal entity in which any Household member has any financial interest in order to meet the requirements in this subsection. iv.Title of the Property shall be held in the name of the natural person(s) who are members of the Eligible Household and who qualifies under criteria above. For example, title may be held jointly in the name of spouses who are members of an Eligible Household. (1)Notwithstanding the foregoing, an Eligible Household may seek a variance to allow title of the Property to be held in trust for the benefit of a natural person who also meets the definition and qualifications of an Eligible Household, as stated herein in Section 2.B. Such ownership in trust may only occur in the circumstances provided herein and at the sole written discretion of the Town, or its assign. To request a variance, the applicant shall submit a letter to the Town, or its assign, requesting a special review and a determination that title of the Property may be held in trust as set forth herein. (2)To be eligible for a variance, the following conditions must be met: (i) The beneficiary of the trust may not own other real property; and (ii) The beneficiary of the trust must be of the age of majority to qualify for this variance. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 4 of 25 (3)Upon receipt of a request for a special review for a variance and any requested information and documentation, the Town, or its assign, may grant the request, in writing, with or without conditions. D.“Household” means all individual(s) who will occupy the Property regardless of legal status or relation to the owner or lessee. E.“Initial Sales Price” means the maximum price for which a Price Capped For- Sale Housing unit may be initially sold. It also refers to the amount paid by an Owner in a subsequent sale. F.“Maximum Sales Price” means the maximum amount an owner can sell the Community Housing Unit. G.“Owner” means the owner of fee simple title to the Property, as well as its owner’s agents, successors and assigns, buyers, heirs, devisees, transferees, grantees, owners or holder of title to the Property of record of the Community Housing Unit, according to the Clerk and Recorder of Eagle County, during their period of ownership interest. H.“Price Capped Community Housing” is subject to a deed restriction recorded against it requiring that it be owned and occupied by an Eligible Household as its Primary Residence and sold subject to the Maximum Resale Price, as those terms are defined herein. I.“Primary Residence” A Property is the Primary Residence of an Eligible Household as long as one or more members of the Eligible Household lives on the Property for at least 9 months in a calendar year. Determination of Eagle County primary residency status shall be based on criteria the Town deems reasonably necessary to make a determination, including but not limited to, voter registration, place of vehicle registration, and/or state issued identification. J. “Qualified Employer” means an individual or entity that regularly conducts business in Eagle County, is based in Eagle County, and is registered in Eagle County, if applicable. Qualified Employers may hold title to the Property and lease to their employees who are also members of Eligible Households. Qualified Employers may not impose restrictions upon the Property in addition to the terms of this Deed Restriction without prior written consent of the Town. K.“Short Term Rental” An Owner or non-Owner providing compensation to lodge in the Property for periods of less than thirty (30) days. Owner shall not advertise any part of the Property for short term lease on an open, public forum such as Airbnb, VRBO, Homeaway or equivalent. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 5 of 25 L.“Town” shall include employees of the Town of Avon or subcontractors retained by the Town who are tasked with enforcing Deed Restriction agreements. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 6 of 25 Ownership, Occupancy and Use Restrictions: A.The ownership, use and occupancy of the Property is restricted as follows: (i) the Property shall be owned and occupied by an Owner who either qualifies as an Eligible Household or is a Qualified Employer who leases the Property to their employee(s), who is/are Eligible Household(s), as defined within Section 2 of this Deed Restriction; (ii) the Qualified Employer lessee own no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and (iii) the Owner or Qualified Employer lessee uses the Property as its Primary Residence, as defined within Section 2 of this Deed Restriction. B.The Property may not be sold or otherwise transferred to any person other than an Eligible Household in accordance with the procedures for prior verification contained in Section 4 below and pursuant to all provisions within this Deed Restriction. It is understood and agreed by the parties that notwithstanding the foregoing, title to the Property may be held from time to time by the Town in the event of a foreclosure or as permitted by this Agreement or the ACHP. Further, it is understood and agreed to by the parties that notwithstanding the foregoing, the Property may be held from time to time by certain employers, districts or governmental entities which qualify as a Qualified Employer, as that term is defined in Section 2.G above. C.Owner is subject to Annual Compliance Recertification confirming and verifying the Owner’s continued eligibility as an Eligible Household and its compliance with this Agreement. To confirm such eligibility, the Owner of the Property shall submit the following information to the Town: (i) a verification that the Owner continues to meet the requirements of an Eligible Household who uses the Property as its Primary Residence; and (ii) a statement that the Owner owns no other real property, subject to the exceptions set forth in the definition of Eligible Household, in Section 2 above, and other documentation that be required by the Town and the ACHP, as may be amended from time to time. D.An Owner must not engage in any business activity on or in such Property, other than as permitted within the zone district applicable to the Property. E.The Short Term Rental, or the advertising of a short term rental, of all or any portion of the Property is prohibited. F.An Owner of the Property may not permit any use or occupancy of the Property except in compliance with this Agreement. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 7 of 25 G.Owner, other than a Qualified Employer, may not, except with prior written approval of the Town and subject to the most current ACHP and the provisions of this Deed Restriction, rent the Property for any period of time. Owner covenants that any lease of the Property shall include a reference that such lease is subject to the terms and conditions of this Deed Restriction and ACHP, including but not limited to restrictions on the use and occupancy of the Property and cooperation on providing required documentation for verification of Eligible Household and Primary Residence status, as defined in Section 2. H.Any subsequent Owner of the Property must execute an Acknowledgement of Deed Restriction Agreement for Price Capped For Sale Housing, in the form, or similar form provided by the Town, set forth in Exhibit C, and attached hereto and incorporated herein by this reference. The failure to execute such document shall not extinguish the legal force and effect of this Deed Restriction on all current and subsequent Owners. I.All sales of the Property shall be subject to the Maximum Sales Price as calculated in Section 5 below. 3.Resale Restrictions: The Property may not be sold or otherwise transferred to any person other than an Eligible Household and subject to the calculation of the Maximum Sales Price in accordance with Section 5 and the provisions of this Deed Restriction. A.In the event that an Owner desires to sell the Property, the sale or transfer of the Property shall be executed implemented administered by the Town or its assigns in accordance with the most current ACHP procedures. B.Upon sale and conveyance of the Property by Owner to a buyer, the buyer shall be subject to the same occupancy and use requirements set forth in this Deed Restriction and the most recent version of the ACHP. 4.Maximum Sale Price: In no event shall the Property be sold for an amount in excess of the Initial Sales Price plus the applicable percentage of appreciation per year, and as provided below. A.Appreciation shall be three percent (3%), compounded annually. i.In the event an Owner owns a Subject Property for only a portion of any year, the percentage increase shall be prorated monthly, from purchase date, and the Owner shall be given credit through the month in which the property is listed for sale. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 8 of 25 B.Permitted Capital Improvements shall not increase the Owner’s Initial Sales Price and are subject to depreciation as set forth in the most current ACHP. For the purpose of determining the Maximum Sales Price, the Owner may add the following amounts: i.The cost of permitted capital improvements as set forth in the most current ACHP. ii.The cost of any permanent improvements constructed or installed as a result of any requirement imposed by any government agency or assessment by a homeowner’s association for such permanent improvements, provided that written certification is provided and approved by the Town. C.Real estate sales fees as identified in the most current ACHP. Owner shall not permit any prospective buyer to assume any or all of the Owner's customary closing costs nor accept any other consideration which would cause an increase in the purchase price above the bid price so as to induce the Owner to sell to such prospective buyer. NOTHING HEREIN SHALL BE CONSTRUED TO CONSTITUTE A REPRESENTATION OR GUARANTEE BY THE TOWN THAT ON RESALE THE OWNER SHALL OBTAIN A PARTICULAR PRICE INCLUDING BUT NOT LIMITED TO THE MAXIMUM SALES PRICE. 5. Default by Owner. Owner shall be responsible for compliance with all terms of this Deed Restriction, including occupancy and use of the Subject Property and limitations on owning other real estate. Any non-compliance with the terms of this Deed Restriction or breach of any covenant(s) set forth in this Deed Restriction, including non-compliance of use and occupancy of the Subject Property and limitations on owning other real estate, shall be deemed to be a Default by Owner, whether such non-compliance is a result of direct actions of the Owner of such non- compliance occurs during ownership. 6.Inspection. If the Town has reasonable cause to believe that the occupancy or use of the Property does not comply with any provision(s) of this Deed Restriction, the Town may inspect the Property between the hours of 8:00 a.m. and 5:00 p.m., Monday through Friday, after providing the Owner and occupants a Notice to Inspect with at least twenty four (24) hours written notice. Notice of Inspection may be given by posting notice on the door to the residence on the Property. The Notice of Inspection shall generally describe the suspected non-compliance with this Deed Restriction and shall reference the Town’s right to inspect set forth in this Deed Restriction. The Town shall have permission to enter the Property during such times upon providing a Notice of Insp ection without further consent. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 9 of 25 7.Notice and Cure. In the event of a Default by Owner of this Deed Restriction, the following procedures shall apply. A.Notice of Default. The Town shall send a written Notice of Default to the Owner detailing the nature of the default. Notice may be mailed, posted on the front door of the Property, or sent electronically. The Notice of Default shall (i) state the terms of this Deed Restriction or ACHP for which the Owner has defaulted; (ii) state the period for the Cure; (iii) references the potential remedies in this Deed Restriction; and (iv) state the procedures for administrative appeal of the Notice of Default. B.Period for Cure. The Period for Cure shall generally be thirty (30) days, provided that a default by Owner for lease or use of the Property as a Short Term Rental, non- primary residence or Second Home shall be cured by the Owner immediately. The Town may provide a longer period for Cure upon written agreement with the Owner, when the nature of the default will take longer than thirty (30) days to cure and the Owner is actively cooperating with the Town and making all reasonable efforts to effect the cure. C.Administrative Appeal. Owner has the right to request an administrative appeal of a Notice of Default. A request for an administrative appeal must be filed within ten (10) days of receiving a written Notice of Default. The Town shall conduct an administrative appeal hearing in accordance with procedures and requirements set forth in the ACHP. D.Default. If an administrative appeal request is not timely and properly submitted in writing and the default is not cured within the stated Period for Cure in the Notice of Default, the Owner shall be deemed to be in Default of this Deed Restriction. E.Court Review. An administrative appeal decision shall be the final decision for the purpose of determining if a default has occurred. The date of the final decision shall be the date that a written decision of the administrative appeal is executed and provided to the Owner (as appellant). A final decision from an administrative appeal hearing may be judicially appealed, in the District Court of Eagle County pursuant to C.R.C.P. 106. 8.Remedies. The Town has the right to the following remedies. A.Law and Equity. This Deed Restriction is enforceable by the Town, and their respective successors and assigns, as applicable, or as their designee, by any appropriate legal action including but not limited to specific performance, injunction, reversion, or eviction. The remedies provided herein are cumulative and not exclusive of all other remedies provided by law and/or equity. In the event of violation, non- performance, default or breach of any term of this Deed Restriction by the Owner, TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 10 of 25 the Town shall have the right to enforce Owner’s obligations herein by an action for any equitable remedy, including injunction or specific performance, as well as pursue an action to recover damages. B.Interest on Amounts Due. Any amount due and owing to the Town shall bear interest at the rate of one and one half percent (1.5%) per month (eighteen percent [18%] per annum, compounded annually) until paid in full. C.Recovery of Costs to Enforce. The Town shall be entitled to recover any costs related to enforcement of this Deed Restriction, including but not limited to attorney’s fees, court filing costs and county recording costs. D.Lien. The Town may attach a lien for any amount due to the Town upon the Property and enforce the lien in the manner and according to the procedures set forth in Colorado Revised Statutes, §31-20-105, as amended from time to time, and the Owner expressly waives any objection to the attachment of a lien for amounts due to the Town. E.Joint and Several Liability. In the event of a transfer or conveyance of the Property that violates the terms of this Deed Restrictions and constitutes a violation of this Deed Restriction, both the grantor and grantee shall be jointly and severally liable for any damages and costs due under this Deed Restriction. F.Recovery of Wrongful Gains. In the event of any lease of the Property to a person who is not an Eligible Household/Eagle County Employee, as defined in the ACHP, or use of the Property as a Short Term Rental, non-primary residence or Second Home, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as a material requirement of curing the notice of default. 9. Liquidated Damages. The Parties acknowledge and agree that in the event of a violation of this Deed Restriction by the Owner, the determination of actual monetary damages would be difficult to ascertain. Therefore, the Town and Owner hereby agree that liquidated damages shall be calculated and applied in the amount of Three Hundred Dollars ($300.00) per day for each day that the Owner is in violation of this Deed Restriction after having failed to timely cure the violation of this Deed Restriction. Liquidated damages shall be in addition to the Town’s ability to recover costs as stated in Section 8 above. Liquidated damages shall be in addition to the Town’s right to seek equitable remedies of injunction and/or specific performance. In the event of any lease or use of the Property as a Second Home, non-primary-residence or Short Term Rental, any amounts collected or receipt of other things of value by the Owner or assigns under such leases shall be paid to the Town as liquated damages as demanded by the Town (in lieu of the $300 daily liquidated damages), including such amounts collected or received by Owner prior to receipt of a Notice of Default and prior expiration of a thirty (30) day period to cure, and TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 11 of 25 such amounts shall be in addition to the right of the Town to recover costs and seek equitable remedies. 10.Foreclosure. A.In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, and subject to the issuance of a public trustee’s deed to the holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the older, the Town or its assigns shall have the option to purchase the Property as provided in the Option to Purchase, in a form similar to EXHIBIT B: Option to Purchase, attached hereto and incorporated herein. B.Notwithstanding any provision herein to the contrary, except for persons or entities having a valid lien on the Property, only an Eligible Household may acquire an interest in the Property at a foreclosure sale or in lieu of foreclosure. C.Notwithstanding the foregoing, in the event of foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust on the Property, if the holder of such deed of trust is the grantee under the public trustee’s deed or deed in lieu of foreclosure and the Town does not exercise its Option to Purchase as provided in Section 11.A, then the Town agrees to release the Property from the requirements of this Deed Restriction. D.It is specifically agreed that nothing contained herein shall require the Town to release and waive its ability to enforce this Deed Restriction in the event of a foreclosure of a lien secured in second or subsequent position. E.If the Town or its assigns exercises the Option to Purchase described in this Section 11, and acquires title to the Property, the Town or its assigns may sell the Property to an Eligible Household or rent the Property to qualified tenants who meet the income, occupancy, and all other qualifications, established by the ACHP, until such time that the Property can be sold to an Eligible Household, or may elect to release and terminate this Deed Restriction, at Town’s sole discretion. F.All obligations recorded of record against the Property and subsequent to this Agreement shall be subordinate to terms hereof. 11.Deed Restriction Runs with the Land. This Deed Restriction and the terms, covenants, conditions and other provisions hereof shall constitute covenants running with title to the Property for the benefit of, and enforceable by the Town and its successors and assigns and this Deed Restriction shall bind the Property, the Owner and all subsequent owners, occupants, successors and assigns. Each and every lease and each and every contract, deed or other instrument hereafter TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 12 of 25 executed conveying the Property or any portion thereof shall expressly provide that such lease or conveyance is subject to this Deed Restriction; provided, however, that the covenants, conditions and restrictions contained herein shall survive and be effective as to lessees and successors and/or assigns of all or any portion of the Property, regardless of whether such lease, contract, deed or other instrument hereafter executed leasing or conveying the Property or any portion thereof provides that such lease or conveyance is subject to this Deed Restriction. Each subsequent owner(s), occupant(s) and Eligible Household(s), upon acceptance of a deed or lease of the Property, shall be personally obligated hereunder for the full and complete performance and observance of all covenants, conditions, and restrictions contained herein during an owner’s period of ownership or Eligible Household’s occupancy. 12.General Provisions. A.Venue. The exclusive venue for any dispute arising from or relating to the Deed Restriction shall be the Eagle County District Court. B.Severability. If any term, provision, covenant or condition of this Deed Restriction is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Deed Restriction shall continue and remain in full force and effect. C.Counting Days. If the final day of any notice, default or other event falls on a Saturday, Sunday, legal holiday recognized by the State of Colorado or day upon which the Avon Town Hall is closed for any reason, then the final day shall be deemed to be the next day which is not a Saturday, Sunday, legal holiday or day that the Avon Town Hall is closed. D.Modifications: The Owner and Town of Avon agree that any modifications of this Deed Restriction shall be effective only when made by writings signed by the Owner and the Town of Avon and recorded with the Clerk and Recorder of Eagle County, Colorado. E.Waiver. No waiver of one or more of the terms or provisions of this Deed Restriction shall be effective unless provided in writing. No waiver of any term or provision of this Deed Restriction in any instance shall constitute a waiver of such provision in any other instance. F.Amendment. This Deed Restriction may only be amended in writing by the mutual agreement of the Owner and the Town and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. G.Assignment. The Town may in its sole discretion assign the benefits and delegate the responsibilities of this Deed Restriction to any other public entity, non-profit TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 13 of 25 corporation or other entity which is organized and exists for the purpose to provide and promote affordable housing for full time residents. H.No Third-Party Beneficiaries. Nothing contained in this Deed Restriction is intended to or shall create a contractual relationship with, cause of action in favor of, or claim for relief for, any third party. I.No Joint Venture. Notwithstanding any provision hereof, the Town shall never be in a joint venture with Owner, and the Town shall never be liable or responsible for any debt or obligation of Owner. J.Governmental Immunity. The town and its officers, attorneys, and employees, are relying on, and do not waive or intend to waive any provision of this Deed Restriction, the monetary limitations or any rights, immunities, and protections provided by the Colorado Governmental Immunity Act, C.R.S. SS 24-10-101, et seq., as amended, or otherwise available to the Town or its officers, attorneys, or employees. K.Choice of Law. This Deed Restriction shall be governed and construed in accordance with the laws of the State of Colorado. Venue for any legal action arising from this Deed Restriction shall be in Eagle County, Colorado. L.Successors. Except as otherwise provided herein, the provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of the parties. The Deed Restriction shall be a burden upon and run with the Property for the benefit of the Town or the Town’s assigns, who may enforce the Deed Restriction s and compel compliance therewith through the initiation of judicial proceedings for, but not limited to, specific performance, injunctive relief, reversion, eviction and damages. M. Recording. The Town shall record this Deed Restriction in the real property records of Eagle County, Colorado at the Owner’s expense. N.Personal Liability. By taking title to the Property, the Owner agrees that he or she shall be personally liable for compliance with the applicable terms and conditions of this Deed Restriction. O.Further Actions. Any Owner of the Property and the Town agree to execute such further documents and take such further actions as may be reasonably required to carry out the provisions and intent of this Deed Restriction or any agreement or document relating hereto or entered into in connection herewith. P.Section Headings. Paragraph or section headings within this Deed Restriction are inserted solely for convenience of reference and are not intended to and shall not govern, limit or aid in the construction of any terms or provisions contained herein. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 14 of 25 Q. Gender and Number. Whenever the context so requires in this Deed Restriction, the neuter gender shall include any or all genders and vice versa and the use of the singular shall include the plural and vice versa. R. Tax Sale. In the event of a tax sale, the deed restriction shall remain in full force and effect, shall run with and burden the land, and shall constitute a condition of the subdivision and land use approval which shall survive the sale of the Community Housing Unit through a tax lien sale process. S. Entire Agreement. This deed restriction replaces, repeals, nullifies and supersedes in its entirety that previous deed restriction recorded onto the subject property at Reception Number _________ of Eagle County Recorder’s Office on ___________. T. Notice. Any notice, consent or approval, which is required to be given hereunder, shall be given by either depositing in the U.S. Mail with first class postage pre-paid; mailing by certified mail with return receipt requested; sending by overnight delivery with a nationally recognized courier service that delivers to the physical address of the Property; or, by hand- delivering to the intended recipient. Said notices, consents and approvals shall be sent to the following address unless otherwise notified in writing: To Town of Avon: P.O. Box 975 100 Mikaela Way Avon, CO 81620 To Owner: _______________________ _______________________ _______________________ With a copy to: the address provided by the Eagle County Assessor’s office. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 15 of 25 IN WITNESS WHEREOF, the Owner and Town have executed this instrument on the day and the year first written above. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ___ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 16 of 25 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 17 of 25 EXHIBIT A [Insert Property Legal Description] TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 18 of 25 EXHIBIT B OPTION TO PURCHASE In the event of a foreclosure or acceptance of a deed in lieu of foreclosure by the holder (including assigns of the holder) of the promissory note secured by a first deed of trust (“Holder”) on the on the real property known as [Legal Description] ___________________________, (the “Property”), and subject to the issuance of a public trustee’s deed to the Holder following expiration of all statutory redemption rights, or issuance of a deed in lieu of foreclosure to the Holder, the Town or its assigns shall have the option to purchase the Property, which shall be exercised in the following manner: 1. Notice of Foreclosure Proceedings: The Holder shall give such notice to the Town of intent to foreclose at least sixty days prior to commencing foreclosure proceeding. Said notice shall be sent by certified mail, return receipt requested, and addressed as follows: Town of Avon Town of Avon C/O Town Manager C/O Town Attorney PO Box 975 PO Box 975 Avon, CO 81620 Avon, CO 81620 2. Option to Purchase: The Town or its assigns shall have sixty (60) days after issuance of the public trustee's deed or deed in lieu of foreclosure in which to exercise this Option to Purchase. In the event of a deed in lieu of foreclosure, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, an amount equal to the amount due on the note and any additional reasonable costs incurred by the Holder during the option period. In the event of foreclosure and issuance of a public trustee's deed, the Town may exercise the Option to Purchase by tendering to the Holder or its assigns, in cash or certified funds, the redemption price which would have been required of the borrower or any person who might be liable upon a deficiency on the last day of the statutory redemption period(s) and any additional reasonable costs incurred by the Holder during the option period which are directly related to the foreclosure. 3. Title: Upon receipt of the option price, the Holder shall deliver to the Town or its assignee a special warranty deed, conveying the Property to the Town or its assignee. The Holder shall convey only such title as it received through the public trustee's deed or deed in lieu of foreclosure and shall not create or participate in the creation of any additional liens or encumbrances against the Property following issuance of the public trustees' deed to the Holder. The Holder shall not be liable for any of the costs of TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 19 of 25 conveyance to the Town or its assignee. 4. Release: Upon issuance of a public trustee's deed or deed in lieu of foreclosure to the Holder; the Town or its assigns shall have sixty (60) days in which to exercise the Option to Purchase as set forth herein by notifying the Holder in writing of its intent to exercise the option. In the event that the Town or its assigns does not notify the Holder in writing of its intent to exercise the Option to Purchase as set forth herein, the Town’s Option to Purchase and the Town of Avon’s Community Housing Price Capped Deed Restriction recorded at Reception Number ____________________in the records of the Clerk and Recorder of Eagle County, Colorado shall be automatically released only with respect to the Property which is the subject of foreclosure as of the thirty-first day after the issuance of such public trustee's deed or deed in lieu of foreclosure. The Holder shall not be required to take any affirmative action to obtain such release. It is the intent of the Town that the Option to Purchase and the referenced Deed Restriction Agreement be terminated automatically upon the failure of the Town or its assigns to provide written notice of its intent to exercise its Option to Purchase to the Holder, whether such failure is intentional or unintentional, and that such termination will be effected without the necessity of any affirmative action on the part of the Holder and without the necessity of filing a release of such Deed Restriction Agreement or option of public record. It is agreed that this Section 4 shall not result in a release of the Deed Restriction Agreement from any other property which is not the subject of foreclosure, and nothing contained herein shall require the Town to release and waive its ability to enforce the Deed Restriction Agreement in the event of foreclosure of a lien secured in second or subsequent position. 5. Successors and Assigns: The provisions and covenants contained herein shall inure to and be binding upon the heirs, successors and assigns of any Owner of the Property, and the Town 6. Modification: The parties hereto agree that any modifications to this Option to Purchase shall be effective only when made by writings signed by all parties and recorded with the Clerk and Recorder’s Office of Eagle County, Colorado. TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 20 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Option to Purchase on the ___ day of ______________, 2024. OWNER: By: Name: Its: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was subscribed, sworn to and acknowledged before me this ____ day of __________________, 20____, by _____________________, as the owner of the real property described above. Witness my hand and official seal. ____________________________________ Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 21 of 25 TOWN OF AVON, COLORADO: By: _______________________________ Attest: ______________________________ Eric Heil, Town Manager Ineke de Jong, Chief Administrative Officer TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 22 of 25 EXHIBIT C ACKNOWLEDGEMENT OF THE TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION WHEREAS, [Buyer Name]____________________________ (the “Buyer”) is purchasing from [Seller Name]______________________ (the “Seller”) at a price of $[purchase price amount]________________________, the real property and improvements located in [Address & Neighborhood] ___________________________ more particularly described as: [Legal Description]___________________________, according to the plat recorded under Reception No. ________________________, in the real property records of Eagle County of Eagle, Colorado (the “Subject Property”); and WHEREAS, the Seller of the Subject Property is requiring, as a prerequisite to the sales transaction, that the Buyer acknowledge and agree to the terms, conditions and restrictions found in that certain instrument entitled “TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION”, recorded on _________________, 20__, under Reception No. _______________, in the real property records of Eagle County, Colorado (the “Deed Restriction”). A copy of the Deed Restriction is attached to this Acknowledgement as Exhibit A. NOW, THEREFORE, as an inducement to the Seller to sell the Property, the Buyer: 1. Acknowledges that Buyer has carefully read the entire Deed Restriction, has had the opportunity to consult with legal and financial counsel concerning the Deed Restriction and fully understands the terms, conditions, provisions, and restrictions contained in the Deed Restriction, and agrees to abide by the Deed Restriction. 2. Buyer acknowledges that the Deed Restriction imposes a future sale to an Eligible Household at no greater than the Maximum Sales Price exclusively on the sale or conveyance of the Subject Property. 3. I/we acknowledge that no sales/purchases are exempt from the requirement that the Property be occupied by an Eligible Household in accordance with the Deed Restriction. All future buyers shall complete an application for approval of Eligible Household status with the Town of Avon or its designee. Current and future buyers agree that (i) the Owner or lessee qualifies as an Eligible Household; (ii) the Owner uses the Property as its Primary TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 23 of 25 Residence; and (iii) the Owner is in compliance with the terms and conditions of this Deed Restriction. 4. Notice to Buyer, pursuant to Section 12 of the Deed Restriction, should be sent to: _________________________________ _________________________________ _________________________________ 5. I/we direct that this acknowledgement be placed of record in the real estate records of Eagle County of Eagle, Colorado and a copy provided to Town of Avon. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the ______________day of _______________, 20___. BUYER(S): ________________________________ ________________________________ Printed Name ________________________________ ________________________________ Printed Name STATE OF ________________ ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this ________ day of ____________________, by ________________________________________________. Witness my hand and official seal. _________________________________ TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 24 of 25 Notary Public TOWN OF AVON COMMUNITY HOUSING PRICE CAPPED DEED RESTRICTION Price Capped Community Housing Deed Restriction Wildwood Townhomes Page 25 of 25 EXHIBIT A DEED RESTRICTION 970.748.4004 eric@avon.org TO: Honorable Mayor Tamra N. Underwood and Council members FROM: Eric Heil, Town Manager RE: Vail Valley Foundation Land Lease DATE: April 4, 2025 SUMMARY: This report presents to the Avon Town Council (“Council”) a Land Lease for approximately 2.5 acres situated on the eastern portion of Planning Area E, Village (at Avon) (“Property”) to Eagle River Valley Childcare (“ERVC”) for the construction of an early childhood education facility (“Facility”). Vail Valley Foundation is the organization that is leading the design, funding, construction and programming of this Facility. Vail Valley Foundation formed ERVC as non-profit entity to oversee this Facility and hopefully additional early childhood education facilities in Eagle County. ERVC is controlled by Vail Valley Foundation. This Facility will be 13,600 sq.ft. with twelve classrooms and will have capacity for 160 children. The estimated construction cost is $13,500,000. Vail Valley Foundation is in the process of raising these funds from private donors and through investments by various employers based in Eagle County that secure a limited number of enrollment positions. Vail Valley Foundation hopes to begin construction this June and complete construction before the end of 2026. The Town of Avon received the Property as a dedication for school purposes under the Village (at Avon) Planned Unit Development Guide and the Consolidated, Amended, and Restated Annexation and Development Agreement (“CARADA”). Vail Valley Foundation conducted a request for proposal process for an Operator and selected Access Early Education and founder Jennifer Knott, who has successfully opened early childhood education facilities in Glenwood Springs, Rifle, Grand Junction and Crested Butte. TERMS OF THE LAND LEASE: Several terms in the Land Lease are highlighted for Council as follows: Term: 50 years, commencing May 1, 2025. Avon Contributions: In addition the 50 year Land Lease, the Town of Avon would contribute the following: • Construction of a bus stop (estimated costs $50K to $70K) • Installation of Photovoltaics and Battery Capacity (estimated costs $100,000) • Cash contribution of $400,000, coming from the Avon Downtown Development Authority funds and conditioned upon approval of agreement between Town of Avon and Avon DDA • Complimentary passes to Avon Recreation Center for all employees of the Facility • Waiver of Use Tax, Sales Tax, Real Estate Transfer Tax (estimated value of $270,000) • Waiver of Plan Review and Building Permit Fees (estimated value of $113K) Page 2 of 2 • Avon would receive a de minimus ownership interest in the Facility so that it is exempt from property taxes to all jurisdictions. Avon’s Rights: The Town of Avon has the following rights under the Land Lease: • Primary use of Facility is restricted to early childhood education. Accessory uses are also allowed. • Avon has the right to participate in selection of Operator, including right review and approve the Operator. [NOTE: I participated in all steps of reviewing proposals for the Operator, Tamra and I participated in the second interviews, and I attended site visits to pre-school facilities in Glenwood Springs and Grand Junction this spring]. • Avon has the right to review and approve the sub-lease agreement with the Operator. • Avon has the right to twenty-four priority enrollment positions for children of Town of Avon employees and Town Officials and for children of Town of Avon residents and owners/employees of businesses located in the Town of Avon. Allocation of these priority enrollment positions would be administered by the Human Resources division. • The Operator must provide tuition assistance for at least 32 enrollment positions with at least 50% reduction in tuition. • Avon would own the Facility after 50 years and expiration of the Land Lease term. Leasehold Financing: Vail Valley Foundation contemplates the need for bridge financing during the construction and fund raising period. Section 13 sets forth the right of ERVC to obtain Leasehold Financing which must be paid and satisfied in full by December 31, 2030. Right of First Refusal: ERVC has a right of first refusal if the Town of Avon decides to sell its interest in the land before the expiration of the Term. Mediation and Arbitration: The Land Lease contains provisions for mediation and arbitration as less costly and faster methods of dispute resolution alternatives to traditional litigation. LEGAL REVIEW: Bo Riley from Nina’s office reviewed this Land Lease and provide considerable assistance to sort through the terms. RECOMMENDATION: I recommend approval of this Land Lease. This will be a great use of the property and will add much needed additional pre-school capacity serving the Avon community. PROPOSED MOTION: “I move to approve the Land Lease for the Eagle River Valley Childcare facility on a portion of Planning Area E, Village (at Avon).” Thank you, Eric ATTACHMENT A: Land Lease Ground Lease: ERVC April 4, 2025 DRAFT Page 1 of 20 LAND LEASE Eagle River Valley Childcare Planning Area E, Village (at Avon) THIS LAND LEASE (“Lease”) is made and entered into by and between the Town of Avon, a Colorado home rule municipality ("Avon") and Eagle River Valley Childcare, a Colorado nonprofit corporation ("ERVC"), collectively referred to as the “Parties”, on April 8, 2025 (“Effective Date”). RECITALS WHEREAS, Avon is the owner of certain property described in EXHIBIT A: Legal Description consisting of approximately 3.5 acres of land in the Town of Avon, Eagle County, Colorado, a portion of which land will be leased by Avon to ERVC, as further depicted on EXHIBIT B: Depiction of the Leased Land (“Leased Land”). WHEREAS, Avon and ERVC recognize that there is a significant shortage of early childhood education facilities and capacity to serve the Avon and other adjacent communities in the Vail Valley area, which is documented in detail in the 2021 Regional Assessment of Child Care Industry, prepared by Northwest Colorado Council of Governments, which shortage impacts working households with children aged 0-5 years and impacts employers; and WHEREAS, Avon desires to incentivize and partner with ERVC to support the construction and operation of an early childhood education facility on the Leased Land; and WHEREAS, ERVC desires to construct and hire a qualified third party operator to manage all aspects of an early childhood education facility on the Leased Land to better meet the needs of Avon and surrounding adjacent communities. NOW, THEREFORE, in consideration of the recitals above and the mutual promises contained in this Lease, Avon and ERVC agree as follows: 1. LEASE GRANT AND TERM A. GRANT. Avon hereby demises and leases the Leased Land to ERVC and ERVC does hereby lease and take from Avon the Leased Land subject to the terms and conditions in this Lease, subject to all easements of record on the Leased Land existing as of the Effective Date, and subject to title insurance exceptions listed in EXHIBIT A: Legal Description. All improvements constructed on the Leased Land will be solely owned by ERVC during the term of this Lease. B. TERM. This Lease shall be for a period of fifty (50) years (“Term”), commencing on May 1, 2025 (“Commencement Date”). 2. LAND DELIVERY; CONSTRUCTION A. DELIVERY. Avon shall deliver the Leased Land to ERVC, and ERVC shall accept the Leased Land from Avon, in its “AS IS”, “WHERE IS” condition, without any representation or warranty of any kind by Avon on May 1, 2025 (“Avon’s Delivery Date”). ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 2 of 20 B. CONSTRUCTION. ERVC shall thereafter construct on the Leased Land an early childhood education facility and all related improvements (the “Facility”) in accordance with ERVC’s Plans (as defined in Section 4.A below) and in compliance with applicable laws. ERVC acknowledges the cost of such development, construction, and improvements shall be at ERVC’s sole cost and expense, except Avon shall be responsible for the following costs: i. Construction of bus stop; and ii. Installation of photovoltaics, batteries and battery capacity and related electric work and equipment; and Avon shall receive any and all rebates from the Holy Cross Energy for installation of photovoltaics, batteries and related equipment (estimated at $12,500) and ERVC shall be entitled to receive the Holy Cross Energy monthly rebate of $250 paid to ERVC by Holy Cross Energy after the Facility is operational; and iii. Reimbursement to ERVC for the portion of tap fees specific to housing in the amount of $126,800 and reimbursement for Plan Check and Building Permit that were pre-paid by ERVC for both the childcare center and the housing concept in the amount of $113,836.70; and iv. A contribution in the amount of FOUR HUNDRED THOUSAND DOLLARS ($400,000.00) towards the cost of construction, or if not needed for construction then to be pledged to the ERVC Tuition Assistance Fund to provide tuition assistance for low income households, which contribution shall be in the form of a pledge of tax increment revenues from the Avon Downtown Development Authority and shall be payable as the Avon Downtown Development Authority receives funds, but shall be not more than $200,000 per calendar year in 2025 and 2026, and such contribution shall be subject to and conditioned upon a separate agreement between the Town of Avon and the Avon Downtown Development Authority; and v. Complimentary Avon Recreation Center passes on an annual basis for all full-time employees of the Facility. C. CONSTRUCTION TIMELINE. ERVC’s construction of the Facility shall commence on or before May 1, 2026. Commencement of construction shall mean submitting a complete application for a building permit. Construction shall be completed by the end of calendar year 2027 (“Construction Completion”). Construction Completion shall be defined as substantially completing the construction shown in the building permit and obtaining a Certificate of Occupancy (including a Temporary Certificate of Occupancy) from the Town of Avon. D. ACCESS AND MONITORING OF CONSTRUCTION. Avon and/or Avon's agents shall have the right to enter the Leased Land or the Facility upon reasonable prior written notice to ERVC at all reasonable times during normal business hours to monitor and review the construction process. 3. RENT; TAX AND FEE WAIVERS. A. Rent. ERVC shall pay to Avon One Dollar and 00/100 ($1.00) as rent for the Term of the Lease which shall be tendered in cash at the time of executing the Lease. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 3 of 20 B. Tax Waivers. Avon agrees to waive the Town’s Use Tax, Sales Tax and Real Estate Transfer Tax as may be applied to this Lease and the construction of the Facility. C. Fee Waivers. Avon agrees to waive development application review fees and building permit fees that may be otherwise applicable to the construction of the Facility. 4. ERVC’S PLANS AND ERVC’S WORK. ERVC shall be solely responsible for the preparation of the final drawings, plans, and specifications for the design and construction of the Facility (except as provided otherwise in Section 2.B above), including all required mechanical, electrical, and plumbing drawings (collectively, “ERVC’s Plans”), which such ERVC’s Plans shall be prepared by qualified architects, engineers, and consultants and shall be the sole cost and expense of ERVC. ERVC shall construct the Facility, including the building and other improvements benefitting or used during the operation of the Facility (except as provided otherwise in Section 2.B above), in accordance with ERVC’s Plans (collectively, “ERVC’s Work”). ERVC shall diligently pursue the preparation of ERVC’s Plans from and after the Effective Date of this Lease. A. All-Electric, Energy Efficient Design. ERVC shall ensure that ERVC’s Plans are prepared and ERVC’s Work is performed with products, equipment and materials that meet and/or exceed ENERGY STAR specifications, Federal Energy Management Program (“FEMP”) designated guidelines, and the Town of Avon’s building codes. ERVC shall provide products, equipment and materials that earn the ENERGY STAR label and meet the ENERGY STAR specifications for energy efficiency. ERVC shall use only products, equipment and materials that are electric in ERVC’s Plans and in the performance of ERVC’s Work. ERVC shall not use natural gas or other fossil fuels for heating, cooling or any other operations of the Facility. Notwithstanding the foregoing, ERVC may use fossil fuels during the construction of the Facility. B. Plan Review Period. ERVC shall deliver to Avon a true and accurate copy of ERVC’s complete Plans for Avon’s review and approval by March 1, 2026. Avon shall have twenty (20) days from the date of receipt of ERVC’s Plans to review and approve or disapprove of ERVC’s Plans (“Plan Review Period”). Avon will notify ERVC in writing if Avon disapproves of ERVC’s Plans with a reasonably detailed description of the reasons for disapproval. ERVC shall then resubmit revised ERVC Plans and Avon shall again have twenty (20) days to review and approve or disapprove the resubmitted and revised ERVC Plans. Such process shall be followed until ERVC’s Plans have been approved by Avon. C. Plan Modification. Once ERVC’s Plans have been approved by Avon, ERVC shall not materially modify or amend ERVC’s Plans without the prior written consent or approval of Avon. D. Disclaimer. Approval by Avon of ERVC’s Plans and ERVC’s Work shall not constitute any warranty by Avon to ERVC of the adequacy of the design, ERVC’s Plans, or ERVC’s Work for ERVC’s intended use of the Leased Land or Facility, nor shall Avon’s approval of ERVC’s Plans create any liability or responsibility on the part of Avon for compliance with applicable statutes, ordinances, regulations, laws, codes, zoning, or industry standards. 5. USE; OPERATOR A. Early Childhood Education. It is covenanted and agreed between the Parties that the Leased ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 4 of 20 Land and Facility shall be used primarily as an early childhood education facility serving children 0-5 years of age, with capacity for at least one hundred and sixty (160) children, and may be used for other lawful complimentary uses such as after school care, week-end child care, parent education classes, community meetings, and youth gathering space provided that such complimentary uses do not detract from the primary early childhood education facility use (“Permitted Use”). The Permitted Use shall be conducted at all times in accordance with the laws of the State of Colorado, any applicable licensure requirements, the laws of the Town of Avon and any other applicable federal, state or local laws. B. Operator. Avon and ERVC acknowledge that ERVC will contract with Access Early Education Foundation (“Operator”) to operate ERVC’s Facility on the Leased Land specific to the Permitted Use as defined in this Agreement. Avon participated in the Operator selection process and Avon and ERVC have agreed to contract Early Access Education Foundation as the Operator. If ERVC decides to no longer have Early Access Education Foundation as the Operator, Avon shall have the right to participate in any new Operator selection process and Avon and ERVC shall both agree on the selection of any new Operator during the Term. Avon shall have the right to participate in any ERVC meetings that may involve the Operator, its performance, and any decisions associated with operations at the Leased Land or Facility. ERVC shall cause the initial Operator to open and operate the Facility within six (6) months of Construction Completion. An Operator may be removed and replaced from time to time during the Term by ERVC in its sole discretion; provided, however, a replacement Operator and Operator Agreement (as defined below) shall be subject to the terms and conditions of this Section 5. C. Operator Agreement. ERVC agrees to provide a draft of a sub-lease and operator agreement (“Operator Agreement”) to Avon for review and approval prior to executing an Operator Agreement. Avon agrees to review and approve or disapprove the Operator Agreement within twenty (20) days of receipt. Avon will notify ERVC in writing if Avon disapproves of the Operator Agreement with a description of the reasons for disapproval. The Operator Agreement shall be deemed automatically approved by Avon if Avon does not respond within twenty (20) days of receipt of the Operator Agreement. The Operator Agreement shall have the following minimum terms: i. The Operator Agreement shall acknowledge this Lease and the terms of such Operator Agreement shall be consistent with the terms of this Lease. Such acknowledgement shall include recognition of the events of default and Avon’s remedies, including termination of the Lease and recovery of the Leased Land. ii. The Facility shall be regularly opened on Monday through Friday from at least 7:30 am to 5:30 pm, excluding legal holiday days recognized by the State of Colorado and seasonal school closures that do not exceed forty (40) weekdays per calendar year. Avon and ERVC may agree to a different schedule depending upon the needs of the regional community and or resources of the Facility Operator. Temporary closures due to repairs, inclement weather, labor shortages or disruptions, or other unforeseen causes are permissible but shall not exceed thirty (30) aggregate days in a calendar year unless a greater number of days is approved by Avon in writing. iii. The initial tuition fees and any other costs shall be defined and the process for proposing and ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 5 of 20 reviewing increases to tuition fees and costs shall be defined. iv. The minimum standards and procedures to determine and verify qualified employees of the Operator shall be defined. v. Obligation to pay utility costs and obligation to pay maintenance, repair and replacement costs shall be defined. vi. Minimum insurance coverage and obligations shall be defined. vii. Indemnification of Avon and ERVC for all activities of the Operator shall be included. D. Documents. ERVC shall provide Avon with the annual budget and any required annual certification for the Operator and/or ERVC for operations at the Facility each year and without any further request by Avon. Avon may submit written requests for more information, which ERVC shall provide within thirty (30) days of receipt of such request. ERVC agrees to promptly forward to Avon copies of all executed agreements and contracts with the Operator. E. Enrollment Assistance. The Operator Agreement shall include an obligation to provide enrollment assistance for at least thirty-two (32) children from households that can demonstrate financial need or hardship in accordance with guidelines defined in the Operator Agreement. Enrollment Assistance shall be in the form of at least a 50% reduction of the regular enrollment rate. Avon and ERVC may agree in writing to an alternate program for enrollment assistance. F. Town of Avon Priority Enrollment. Priority enrollment shall be offered to the Town of Avon according to the following terms and procedures: i. The Operator shall provide priority enrollment to the Town of Avon for up to twenty-four (24) children each year. “Priority enrollment” shall mean the right to have first priority for any available student enrollment positions over any other agreements or obligations of ERVC or the Operator concerning enrollment. Avon’s priority enrollment shall be available first for children of Town of Avon employees and other Town officials, and then shall be available for children of Town of Avon residents and owners and employees of Town of Avon businesses with a physical address in Avon, in accordance with such policies as Avon may adopt in its sole discretion. Priority enrollment shall only be for available unfilled enrollment positions and shall not displace any previously and continuously enrolled child. ii. Annually, between November 15 and December 15, Avon shall receive notice of available student positions for enrollment and shall have fourteen (14) business days to elect to fill such available student position(s). Avon shall receive notice of enrollment availability at such other times when vacancies and available enrollment positions occur and Avon has not fully utilized its 24 priority enrollment positions. Based on the availability of overall Facility enrollment positions or the specific availability of infant, toddler or preschool enrollment positions, the Operator may not be able to guarantee Avon the full 24 spots every year if Avon released a portion of its priority enrollment positions to the Operator in the prior year. ERVC and the Operator will provide continuous enrollment priority and guarantee for any of the 24 enrollment positions that are actually used by Avon each year. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 6 of 20 iii. Avon employees, Town officials, Avon residents and employees of Avon businesses shall receive a $10 discount off the published daily tuition rates and shall not have to pay the annual application enrollment fee which is estimated at approximately $100 per child per year. iv. Avon shall manage the allocation of available priority student enrollments amongst the Town of Avon employees, Town officials, residents of Avon and business owners and employees of businesses physically situated in Avon. Any person utilizing the Town of Avon Priority Enrollment shall pay the full regular tuition and fees unless they qualify for state or federal tuition assistance subsidy and/or tuition assistance from the ERVC Tuition Assistance Fund. Any of the twenty-four (24) priority enrollment spots per year not used by Avon shall be available to other children. v. The terms and procedures of the Town of Avon Priority Enrollment rights shall be included in the Operator Agreement. G. Rights Personal. The rights of Avon under this Article 5 are personal to Avon, and do not run with ownership of the Leased Land. 6. UTILITIES. ERVC shall be responsible for all utility costs associated with the Leased Land and Facility, including but not limited to water, wastewater, electric, telephone, cable, internet, trash, and recycling and including all associated tap fees, development fees and costs for connection, disconnection and changes to any utility connections or services, except as expressly provided in 3.C. Avon shall have no responsibility of any kind for any such utilities or fees. 7. REPAIRS AND MAINTENANCE. ERVC shall be responsible for all maintenance, repair and replacement of the Facility and the Leased Land, including but not limited to, HVAC equipment, utility systems within the Facility, roofing, doors, windows, exterior siding, exterior painting or staining, appliances, fixtures, ceilings, walls, floor coverings, fire suppression system, CO2 monitoring system, security system, sidewalks, parking areas, landscaping, signage, photovoltaic system, battery storage, and all outdoor play areas. 8. FURNITURE, TRADE FIXTURES, AND EQUIPMENT. ERVC shall have the right at any time to erect, install and replace trade fixtures, furniture, and equipment providing that ERVC complies with all applicable governmental laws, ordinances and regulations. At the expiration or earlier termination of this Lease, ERVC shall have the right to remove such items so installed, provided ERVC is not in default at the time of such removal and that ERVC shall repair in a good and workmanlike manner any damage caused by removal thereof. 9. SIGNS. ERVC shall not construct, erect or maintain any signs on or about the Leased Land without first having obtained Avon’s approval and the necessary permits and licenses from Avon. ERVC shall have the right to remove such signs upon expiration or termination of the Lease, provided ERVC is not in default at the time of such removal and that ERVC shall repair in a good and workmanlike manner any damage caused by removal of signs. 10. ALTERATIONS. ERVC may make alterations or changes to the Facility provided that ERVC may not make any additions, structural alterations or any alterations requiring a building permit without ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 7 of 20 Avon’s prior written consent. 11. TAXES. ERVC shall pay all taxes, assessments, levies and other charges, general and special that may be assessed and levied by the State, County, Town of Avon or other local government on the Facility during the Term of this Lease. The real estate taxes for the initial year of the Lease and for the final year of the Lease shall be prorated, with ERVC responsible only for the period of the tax year payable during which the Leased Land is leased by ERVC on and after the Commencement Date. It is further provided that ERVC shall be responsible and liable for all personal property taxes assessed for the tangible property of ERVC on the Facility during the Term of this Lease. ERVC may, at its sole cost and expense, dispute and contest any “taxes” or “tax assessments” by appropriate proceedings diligently conducted in good faith. Any credits, rebates, or abatements shall be for the benefit of ERVC. If ERVC desires to contest any tax or assessment to be paid by it, it shall notify Avon of its intention to do so at least twenty (20) days prior to the delinquency of such tax assessment. Withholding of tax payments during any period where such taxes are contested or disputed will not constitute an event of default unless doing so is not permissible under the requirements for contesting or disputing such taxes. Within twenty (20) days after the final determination of the validity thereof, ERVC shall pay and discharge such tax, assessment, charge, or other item to the extent held valid, and all penalties, interest and costs in connection therewith. Avon with cooperate with ERVC should ERVC elect to pursue tax exemption for the Facility. ERVC shall quit claim an undivided .05% ownership interest in the Facility to the Town of Avon at the time of receiving a Certificate of Occupancy with the expectation that the Facility shall be exempt from property taxes. ERVC and Avon shall work together cooperatively to execute other documents and take such other actions as may be necessary to achieve property tax exempt status of the Facility. 12. NO MECHANICS’ LIENS. ERVC shall keep the Leased Land and Facility free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Leased Land and Facility at ERVC’s request. If any such lien exists, ERVC shall, within twenty (20) days after ERVC’s receipt of notice of such lien, have such lien discharged of record or deliver to Avon a recordable bond in form, amount, and issued by a surety reasonably satisfactory to Avon, indemnifying Avon against all costs and liabilities resulting from such lien and the foreclosure or attempted foreclosure thereof. If ERVC fails to have such lien released or to deliver such bond to Avon, Avon, without investigating the validity of such lien, may pay or discharge the same; and ERVC shall reimburse Avon upon demand for the amount paid by Avon, including expenses and reasonable attorneys' fees. 13. LEASEHOLD FINANCING A. Mortgage by Tenant. ERVC may hypothecate, mortgage, pledge, or alienate ERVC’s leasehold estate and rights hereunder and its ownership interest in the Facility only in accordance with the requirements of this Lease until December 31, 2030 (“Maturity Date”). Any such lien shall be referred to herein as a “Leasehold Mortgage” and the holder or holders of any such lien shall be referred to herein as a “Leasehold Mortgagee.” The Leasehold Mortgagee’s interest in the Leased Land and this Lease shall not encumber Avon’s fee interest of the Leased Land or interest as Avon under this Lease. A Leasehold Mortgage shall encumber no interest in the Leased Land other than ERVC’s interest in the Lease and ERVC’s ownership interest in the Facility, including any personal property of ERVC, and any subleases of portions of the Leased Land. A Leasehold Mortgagee or its assigns may enforce such lien and acquire the leasehold ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 8 of 20 estate and all of ERVC’s rights under the Lease in any lawful way and, pending foreclosure of such lien, the Leasehold Mortgagee may take possession of and operate the Facility and the Leased Land, performing all obligations performable by ERVC, and upon acquisition of the leasehold estate in accordance with applicable law, the Leasehold Mortgagee may, upon notice to Avon, sell and assign the leasehold estate hereby created. Notwithstanding anything herein contained to the contrary, the Leasehold Mortgagee or any person or entity acquiring such leasehold estate shall be liable to perform the obligations imposed on ERVC by this Lease only during the period such person has ownership of said leasehold estate or possession of the Leased Land. Avon acknowledges and agrees that the mortgage loans for the construction and permanent financing of the Facility shall be permitted Leasehold Mortgages hereunder, and the lenders of such loans shall be permitted Leasehold Mortgagees, provided that any such Leasehold Mortgage shall be paid in full, released and extinguished by the Maturity Date. Avon’s consent shall not be required for the refinancing of such permitted loans provided that such refinancing does not extend the Maturity Date. ERVC will have no right to mortgage or pledge ERVC’s leasehold estate after the Maturity Date without the express written consent of Avon, to be granted or withheld in Avon’s sole discretion. When giving notice to ERVC with respect to any default hereunder, Avon shall also serve a copy of such notice by certified mail, return receipt requested, postage pre-paid, upon any Leasehold Mortgagee who shall have given Avon a written notice specifying its name and address. No such notice shall be effective against any Leasehold Mortgagee unless and until served on any Leasehold Mortgagee as herein provided. In the event ERVC defaults in the performance of any of the terms, covenants, agreements, and conditions of this Lease to be performed on its part, any Leasehold Mortgagee shall have the right, within the grace period available to ERVC for curing such default plus an additional sixty (60) days, to cure or make good, such default or to cause the same to be cured or made good, whether the same consists of the failure to pay rent or the failure to perform any other obligation, and Avon shall accept such performances on the part of any Leasehold Mortgagee as though the same had been done or performed by ERVC. B. In the event that this Lease is terminated by Avon on account of any default, Avon shall give prompt notice thereof to each Leasehold Mortgagee who has given notice to be notified. Avon, within thirty (30) days after receiving a written request therefor, which shall be given within sixty (60) days after such termination, will execute and deliver a new lease (“New Lease”) of the Leased Land to the Leasehold Mortgagee or its nominee or to the purchaser, assignee, or transferee, as the case may be, for the remainder of the term of this Lease, containing the same covenants, agreements, terms, provisions, and limitations as are contained herein. C. As long as there is a Leasehold Mortgagee, neither the bankruptcy nor the insolvency of ERVC shall operate or permit Avon to terminate this Lease as long as the obligations of ERVC continue to be performed and all other charges of whatsoever nature payable by ERVC continue to be paid in accordance with the term of this Lease. In the event of a filing of a petition in bankruptcy by ERVC, and ERVC rejects this Lease under Article 365 of the Bankruptcy Code (or any replacement thereof), Avon shall, upon the request of a Leasehold Mortgagee which has been approved by Avon, affirm this Lease, and Avon will enter into a new lease on the same terms and conditions with the Leasehold Mortgagee immediately upon ERVC’s rejection of this Lease. In the event of a filing of a petition in bankruptcy by Avon, and Avon rejects this Lease and ERVC does not affirm it, a Leasehold Mortgagee will have the authority to affirm this Lease on behalf of ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 9 of 20 ERVC and to keep the Lease in full force and effect. D. During the period that a Leasehold Mortgagee shall be in possession of the Leased Land, the Leasehold Mortgagee shall perform the obligations of ERVC and pay or cause to be paid all other charges of whatsoever nature payable by ERVC hereunder. Following the acquisition of ERVC’s leasehold estate by the Leasehold Mortgagee or its designee, Avon’s right to effect a termination of this Lease based upon the default in question shall be deemed waived if the default is otherwise cured. Any such purchaser, or successor of purchaser, shall not be liable to perform the obligations imposed on ERVC by this Lease incurred or accruing after such purchaser or successor no longer has ownership of the leasehold estate or possession of the Leased Land. E. Avon has a de minimis ownership interest in the Facility pursuant to Section 11 above. Avon agrees to execute any consent forms that may be required for the Leasehold Financing but shall not be required to sign as a co-borrower. 14. ESTOPPEL. ERVC agrees, at any time, upon not less than twenty (20) days prior written notice by Avon, to execute, acknowledge and deliver to Avon, a statement in writing addressed to Avon or such other party designated by Avon certifying that this Lease is in full force and effect, stating the dates of commencement and expiration of the Lease, stating the dates to which rent, and other charges, if any, have been paid, that ERVC has accepted possession, that the Lease Term has commenced, whether or not there exists any default by either party in performance of any covenant, agreement, term, provision or condition in this Lease, and, if so, specifying each such default of which ERVC may have knowledge and the claims or offsets, if any, claimed by ERVC. It is intended that such statement may be relied upon by Avon or a purchaser of Avon's interests and by any mortgagee or prospective mortgagee of any mortgage or deed of trust affecting the Leased Land. 15. COMPLIANCE WITH LAW A. Avon. Avon represents and warrants to ERVC that, to the best of Avon’s knowledge, as of the date hereof and as of Avon’s Delivery Date: (a) the Leased Land is in compliance with all federal, state, county and municipal laws, including but not limited to environmental laws, rules, regulations and statutes applicable to the Leased Land or the use thereof; (b) there are no Hazardous Substances in or on the Leased Land; and (c) Avon owns all right, title and interest in and to the Leased Land, and there are no mortgages, liens, pledges, charges or security interests on or with respect to the Leased Land as of the effective date. B. "Hazardous Substances." Shall mean mold and shall mean any substance, chemical, contaminant, or waste that is designated or defined as hazardous, toxic or dangerous or as a pollutant or contaminant in any environmental law, including, without limitation, asbestos, polychlorinated biphenyls (PCBs), pesticides, PCE, and petroleum or its by-products. C. Waste Or Nuisance. ERVC shall not commit or suffer to be committed any waste upon the Leased Land or any nuisance or other act or thing which may disturb the quiet enjoyment of occupants of adjoining properties. ERVC shall defend, indemnify and hold harmless Avon and its agents, employees, successors and assigns, from and against any and all claims, demands, penalties, fines, liabilities, settlements, damages, costs and expenses (including, without ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 10 of 20 limitation, reasonable attorneys' fees, consultants' fees, court costs and litigation expenses) arising out of or in any way related to the presence of Hazardous Substances in or on the Leased Land in violation of any law or regulation, and resulting from the actions or omissions of ERVC and/or any party acting on ERVC’s behalf. This provision shall survive the expiration or earlier termination of this Lease. D. ERVC. ERVC shall, at its sole cost and expense, comply with all of the requirements of all county, municipal, state, federal and other applicable governmental authorities, now in force or which may hereafter be in force, as said laws and regulations affect ERVC’s use of the Leased Land. 16. CONDEMNATION A. Notice Of Condemnation. If, during the Term of this Lease, Avon receives notice from any public authority that the whole or any part of the Leased Land or Facility is being considered for taking by any public authority under the power of eminent domain, Avon shall immediately provide ERVC with written notice of such action, including a copy of said notice. B. Option To Terminate. If the whole or any part of the Leased Land or Facility shall be taken by any public authority under the power of eminent domain, or conveyed by Avon to such authority in lieu of condemnation, and by reason of such taking ERVC determines that ERVC’s business cannot be continued in operation on the portion of the Leased Land which remains, ERVC may, on written notice to Avon, on or before thirty (30) days after such taking, terminate this Lease effective as of the date the Leased Land or Facility, or portion thereof, must be vacated pursuant to the condemnation order or the date of any conveyance in lieu of such condemnation. C. Modification Of Rights. If any part of the Leased Land shall be taken by any public authority for any public use, or Avon makes any conveyance in lieu of such condemnation, and ERVC does not exercise the option to terminate this Lease granted in this Section 17, then Avon and ERVC agree that the rights, duties, and obligations of the Parties shall then be modified as shall fairly and equitably adjust the rights, duties, and obligations of the Parties under such changed circumstances. D. Award. It is expressly understood and agreed that ERVC shall have no claim or demand of any kind to any award made to Avon for the Leased Land only. ERVC shall, however, be entitled to an award from such condemning authority for the value of the Facility, all personal property of ERVC, damages suffered by ERVC for diminution in the value of the leasehold and for loss of ERVC’s trade fixtures and improvements. ERVC shall also be entitled to claim an award for damages suffered by ERVC for relocation expenses. 17. DEFAULT OF ERVC. Each of the following shall constitute an "event of default" under this Lease: A. Failure To Pay Amounts Due. ERVC shall fail to pay taxes (if any are due), utilities, required maintenance or repairs, or other amounts to be paid by ERVC for more than one hundred eighty days (180) days after written notice to ERVC that said amount has not been paid; or B. Failure To Comply With Use And Operator Requirements. ERVC shall fail to cause an ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 11 of 20 Operator to operate an early childhood education facility as the Permitted Use in compliance with Section 5 of the Lease for more than twelve (12) months after Avon has provided written notice to ERVC of such event of default; or C. Other Defaults. ERVC's failure to perform any of the other terms, conditions or covenants of this Lease to be observed or performed by ERVC for more than one hundred eighty (180) days after written notice to ERVC thereof; or D. General Assignment. The making by ERVC of any general assignment for the benefit of creditors; or should there be filed by or against ERVC a petition to have ERVC adjudged a bankrupt or petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against ERVC, the same is dismissed within ninety (90) days); or should an appointed trustee or receiver take possession of substantially all of ERVC’s assets at the Leased Land, or of ERVC’s interest in this Lease, where possession is not restored to ERVC within ninety (90) days; or should substantially all of ERVC’s assets at the Leased Land or ERVC’s interest in this Lease have been attached or judicially seized, where the seizure is not discharged within ninety (90) days. E. Period to Cure. Avon and ERVC acknowledge that unforeseen circumstances may effect performance and may impact the timeframe to cure defaults as defined in this Section 17. Avon and ERVC may determine in writing that an extended Period to Cure is more practical and appropriate and may add details and conditions as is mutually determined appropriate to any extended Period to Cure. 18. REMEDIES FOR AVON. A. Right Of Entry. If any event of default occurs and is not cured within all applicable cure periods, Avon, besides all such other rights or remedies it may have, shall have the immediate right to enter the Leased Land and take possession thereof and of all improvements thereon and may remove all persons and property from the Leased Land by summary action, or otherwise, and such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of ERVC, all without service of notice or resort to legal process except as otherwise provided herein. ERVC agrees to quit and deliver up the possession of the Leased Land, including the Facility and improvements to the Leased Land, when this Lease terminates. B. Additional Remedies. If an event of default occurs, Avon may elect to re-enter, as herein provided, or take possession pursuant to legal proceedings or pursuant to any notice provided for herein, and it may either terminate this Lease, or it may from time to time without terminating this Lease pursue any other remedies available at law or in equity. No such re- entry or the taking of possession of the Leased Land by Avon shall be construed as an election on its part to terminate this Lease or to accept a surrender thereof unless a written notice of such intention be given to ERVC. C. Effect Of Lease Termination. Should Avon at any time terminate this Lease for any uncured event of default, in addition to any other remedies it may have, it may recover from ERVC all damages it may incur by reason of such breach, including the cost of recovering the Leased ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 12 of 20 Land. D. Cumulative Remedies. Any and all remedies provided to Avon for the enforcement of the provisions of this Lease are cumulative and not exclusive and Avon shall be entitled to pursue either the rights enumerated in this Lease or remedies authorized by law or in equity. 19. ASSIGNMENT AND SUBLETTING. Neither this Lease nor any interest herein may be assigned by ERVC, voluntarily or involuntarily, by operation of law or otherwise, without the prior written consent of Avon. Further, neither all nor any part of the Leased Land shall be subleased by ERVC without the prior written consent of Avon. Avon understands that ERVC intends to sublease the Facility owned by ERVC to an Operator. Such sublease and Operator terms and conditions shall be defined in an agreement between ERVC and Operator. Avon shall have the right to review and approve any Operator of the Facility and any final agreement between ERVC and Operator. Any consent to assignment or sublease given by Avon shall not constitute a waiver of necessity for such consent to a subsequent assignment or sublease. Notwithstanding any approved assignment or sublease, ERVC shall remain fully liable under the terms and conditions of this Lease and shall not be released from performing any of the terms, covenants, and conditions hereof. Any subleasing not approved in writing by Avon or assignment in violation of this Section 19 shall be null and void, and further shall be deemed a material breach of this Lease. 20. ERVC INDEMNIFICATION. ERVC shall indemnify and save harmless Avon and its agents from and against any and all claims, actions, damages, suits, judgments, decrees, orders, liability and expense in connection with loss of life, personal injury and/or damaged property arising from or out of the negligent acts or omissions of ERVC, the Operator, its contractors, employees, servants or agents, unless the same shall be caused by the negligence or willful act of Avon. This provision shall survive the expiration or earlier termination of this Lease. 21. INSURANCE A. PROPERTY INSURANCE. ERVC agrees to carry property insurance at all times during the Term which provides protection against any peril generally included in the classification “special form coverage,” insuring the Facility and other building improvements and betterments on the Leased Land, including all appurtenances thereto, in the amount of the estimated replacement value. Said insurance policies shall be with an insurance company or companies with a general policy holders’ rating of not less than “A-VIII” as rated in the most current available A.M. Best’s ratings and which are qualified to do business in the state in which the Leased Land is located. ERVC agrees, in the event of cancellation, ERVC shall provide Avon with notice and a copy of the replacement certificate of insurance which complies with all Lease requirements. ERVC shall furnish Avon a certificate of ERVC’s insurance policies and shall name Avon as a loss payee. B. DESTRUCTION OF THE FACILITY. If the Facility situated upon the Leased Land should be damaged or destroyed, in whole or in part, ERVC shall give immediate written notice thereof to Avon. ERVC shall at its sole cost and expense proceed with reasonable diligence to rebuild and repair such Facility to substantially the condition in which it existed prior to such damage or destruction. If such damage or destruction exceeds forty percent (40%) of the square footage or value of such Facility, or repairs will take over one hundred eighty (180) days to ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 13 of 20 complete, ERVC may, at ERVC’s sole discretion, immediately terminate this Lease by giving Avon written notice. If ERVC terminates this Lease all insurance proceeds for the Facility shall be payable to Avon. C. INSURANCE ON ALTERATIONS. ERVC shall have the right to maintain insurance on all alterations, additions, partitions and improvements erected by, or on behalf of, ERVC in, or about the Leased Land. Such insurance shall be for the sole benefit of ERVC and under its sole control. All such policies shall be procured by ERVC from responsible insurance companies. D. GENERAL LIABILITY INSURANCE. ERVC shall, and ERVC shall cause its Operator, during the entire Lease Term, to keep in full force and effect, a policy or policies of commercial general liability insurance written on an occurrence basis and including coverage for early childhood education operations, product liability, completed operations and contractual liability, with minimum limits of One Million and 00/100 Dollars ($1,000,000.00) per occurrence. ERVC agrees, and ERVC’s Operator shall agree, in the event of cancellation, that it shall provide Avon with notice and a copy of the replacement certificate of insurance which complies with all Lease requirements. Said insurance policy shall be with an insurance company or companies with a general policyholders’ rating of not less than “A-VIII” as rated in the most current available A.M. Best’s ratings and which are qualified to do business in the state where the Leased Land is located and shall name Avon as an additional insured. 22. WAIVER OF SUBROGATION. ERVC hereby waives any and every claim which arises or may arise in its favor against Avon during the Term of this Lease for any and all loss of, or damage to, any of its property within or upon, or constituting a part of, the Leased Land, which loss or damage is covered by valid and collectible fire and extended coverage insurance policies, to the extent that such loss or damage is recoverable under such insurance policies. Such waiver shall be in addition to, and not in limitation or derogation of, any other waiver or release in this Lease with respect to any loss of, or damage to, property of ERVC. Inasmuch as such waiver will preclude the assignment of any aforesaid claim by way of subrogation or otherwise to an insurance company (or any other person), ERVC hereby agrees to give immediately to each insurance company, which has issued policies of fire and extended coverage insurance, written notice of the terms of such waiver, and to cause such insurance policies to be properly endorsed, if necessary, to prevent the invalidation of such insurance coverage by reason of such waiver. 23. AVON’S RIGHT OF ENTRY. Avon and its authorized agents shall have the right to enter the Leased Land upon reasonable prior written notice to ERVC (i) to inspect the general condition and state of repair thereof, (ii) to show the Leased Land to any prospective purchaser or (iii) for any other reasonable purpose. Avon shall use reasonable efforts to minimize interference with ERVC’s business as a result of any such entry by Avon. 24. SURRENDER OF LAND. A. CONDITION OF SURRENDER. ERVC shall, at the expiration or earlier termination of this Lease, vacate the Leased Land and Facility and leave the Facility in a good condition, except for reasonable use and wear thereof, acts of God, or damage by casualty beyond the control of ERVC, and on vacating shall leave the Leased Land free and clear of all rubbish and debris. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 14 of 20 B. REMOVAL RIGHTS. At the expiration or earlier termination of this Lease, ERVC shall have the right to remove furniture, trade fixtures, equipment, signs, personalty and other similar items ERVC installed, provided ERVC is not in default at the time of such removal and that ERVC shall repair in a good and workmanlike manner any damage caused by such removal. C. ABANDONMENT. All personal property of ERVC remaining on the Leased Land or in the Facility after the expiration or earlier termination of the Lease Term or after the abandonment of the Leased Land by ERVC may be treated by Avon as having been abandoned by ERVC, and Avon shall have the right to remove such personal property from the Leased Land or Facility without any obligation to deliver such personal property to ERVC and without any liability to ERVC whatsoever. ERVC shall be presumed conclusively to have abandoned the Leased Land or Facility if the amount of ERVC's property removed by ERVC from the Leased Land or Facility is substantial enough to indicate a probable intent to abandon the Leased Land or Facility, and such removal is not within the normal course of ERVC's business. 25. OWNERSHIP. Upon the expiration or earlier termination of this Lease, the ownership of the Facility and any other improvements, will vest in and be held by Avon; provided, however, ERVC shall have the right to remove furniture, trade fixtures, equipment, signs, personalty and other similar items ERVC installed in the Leased Land unless this Lease is terminated by Avon following an ERVC material default, subject to all applicable cure periods. ERVC will execute a Bill of Sale in a form reasonably acceptable to Avon, or any other documents reasonably requested by Avon, to confirm in writing and convey, if necessary, the title and interest of any of the foregoing improvements to Avon. 26. RIGHT OF FIRST REFUSAL. A. During the Term, and provided there is then no uncured default, Avon hereby grants to ERVC and Vail Valley Foundation (“VVF”) a right of first refusal (“Right of First Refusal”) to purchase all or any portion of the Leased Land, subject to and in accordance with the following provisions: B. Prior to Avon entering into any binding agreement with a bona fide third party purchaser for sale of all or any portion of such property, Avon shall deliver to ERVC and VVF a written notice, including a proposed purchase and sale agreement or letter of intent which Avon is willing to accept from such third party, subject to this Right of First Refusal (“ROFR Offer Notice”). The ROFR Offer Notice shall set forth the date for closing on the proposed sale, which shall be no earlier than sixty (60) days from the delivery of the ROFR Offer Notice. C. ERVC and VVF shall have thirty (30) days from receipt of the ROFR Offer Notice to either accept or reject the ROFR Offer Notice. If ERVC rejects the ROFR Offer Notice or if Avon has not received written acceptance or rejection of the ROFR Offer Notice by 5:00 p.m. on the thirtieth (30th) day from ERVC’s receipt thereof, then Avon may enter into and close the proposed purchase and sale on the same terms and conditions as set forth in the ROFR Offer Notice; provided, however, that if Avon and such third party fail for any reason to close such purchase on such terms and conditions within 90 days following the original closing date set forth in the ROFR Offer Notice, this Right of First Refusal shall be deemed reinstated. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 15 of 20 D. If the ROFR Offer Notice is accepted by ERVC in accordance with this paragraph, Avon and ERVC, or ERVC’s designee, shall close the purchase and sale on the same terms and conditions as set forth in the ROFR Offer Notice, unless otherwise agreed between them. ERVC’s rights under this Lease shall not be merged with the fee ownership of the Premises upon such a purchase or taking of title by ERVC unless ERVC records a termination of this Lease. 27. MEDIATION, ARBITRATION. A. Mediation. In the event of any dispute under this Lease Avon and ERVC agree to first utilize mediation to attempt to resolve such dispute before filing any legal action in the District Court. Either party may submit a request in writing to the other party to use mediation to attempt to resolve a dispute, which request must describe the unresolved dispute in detail. Avon and ERVC shall mutually agree upon a mediator licensed in Colorado. If Avon and ERVC cannot agree upon a mediator, then each party shall appoint its own mediator licensed in Colorado and then those two mediators shall select a third mediator licensed in Colorado who shall then solely serve as the mediator. Avon and ERVC shall split the cost of any mediator equally. Avon and ERVC agree to utilize mediation for at least six (6) months from the date of a written request to utilize mediation, or may utilize mediation for a longer period if mutually agreed in writing by Avon and ERVC. B. Arbitration. In the event of any dispute between the Parties relating to the selection and approval of an Operator or approval of the sub-lease to an Operator, the Parties agree that any such dispute shall be resolved by final and binding arbitration in Eagle County, Colorado by a mutually agreed upon arbitrator. If Avon and ERVC cannot agree upon an arbitrator, then each party shall appoint its own arbitrator who is licensed in Colorado and then those two arbitrators shall select a third arbitrator licensed in Colorado who shall then solely serve as the arbitrator. Avon and ERVC shall split the cost of any such arbitrator equally. The decision of the arbitrator shall be final and binding on the Parties, and judgment thereon may be entered in a court of competent jurisdiction. C. Tolling of Period to Cure. During any periods that ERVC and Avon have commenced and are continuing either mediation or arbitration proceedings pursuant to Section A or B above, all time periods related to the period to cure for then-existing events of default that the Parties seek to resolve through mediation or arbitration will be tolled from the date of written request for such mediation or arbitration. 28. NOTICES. Any notice or document required or permitted to be delivered hereunder may be delivered or shall be deemed to be delivered, whether actually received or not, via overnight mail, via email with acknowledgement of receipt by the recipient, or when deposited in the United States mail, postage prepaid, registered or certified mail, return receipt requested, addressed to the Parties at the addresses indicated below, or at such other addresses as may have theretofore been specified by written notice delivered in accordance herewith: AVON: Town of Avon, Colorado ERVC: Eagle River Valley Childcare ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 16 of 20 Attn: [MORE INFORMATION] Attn: [MORE INFORMATION] 29. MISCELLANEOUS. A. Counterparts. This Lease may be executed in two (2) counterparts, each of which shall be an original but shall together constitute one and the same instrument. B. Entire Agreement/Amendment. This Lease, together with any exhibits hereto, encompasses the entire agreement of the Parties, and supersedes all previous understandings and agreements between the Parties, whether oral or written. The Parties hereby acknowledge and represent, by affixing their signatures hereto, that they have not relied on any representation, assertion, guarantee, warranty, or other assurance, except those set out in this Lease, made by or on behalf of any other party or any other person or entity whatsoever, prior to the execution of this Lease. The Parties hereby waive all rights and remedies, at law or in equity, arising or which may arise as the result of a party’s reliance on such representation, assertion, guarantee, warranty, or other assurance, provided that nothing herein contained shall be construed as a restriction or limitation of said party’s right to remedies associated with the negligence, willful misconduct or fraud of any person or party taking place prior to, or contemporaneously with, the execution of this Lease. In addition, this Lease may not be altered, amended, or otherwise modified except by the express written agreement of the Parties. C. Force Majeure. If the performance of any act required by this Lease to be performed by either Avon or ERVC is prevented or delayed by reason of any act of nature, strike, lockout, labor trouble, unavailability of critical building materials, acts of war, terrorism, civil disturbance, or government orders, the time for performance of the act will be extended for a period equivalent to the period of resulting delay and performance of the act during the period of delay will be excused. However, nothing in this Section shall excuse the prompt payment of any amounts by ERVC as required by this Lease or the performance of any act rendered difficult or impossible solely because of the financial condition of the party required to perform the act. D. Warranty of Authority. Each individual executing this Lease on behalf of Avon and ERVC represents and warrants that he or she is duly authorized to execute and deliver this Lease on behalf of Avon or ERVC, and that this Lease is binding upon Avon or ERVC. E. Interpretation. Notwithstanding the fact that this Lease (in its original form) was prepared by Avon, this Lease has been reviewed by ERVC and its legal counsel and the terms and provisions hereof have been negotiated by both Parties and this Lease shall not be construed for or against Avon or ERVC. F. Attorneys’ Fees. Each party shall be responsible for its own attorney’s fees and court costs if a Party commences litigation, legal action, or claim to protect its interest, or to enforce any term or provision of this Lease, unless and to the extent recovery of attorney’s fees and costs is expressly addressed elsewhere in this Lease. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 17 of 20 G. Damages: Each party waives its respective right to incidental, consequential, exemplary, and punitive damages. H. Exhibits. All exhibits referred to herein shall be considered a part hereof for all purposes with the same force and effect as if copied at full length herein. I. Avon/ERVC Relationship. This Lease shall not be construed as creating an association, trust, partnership or joint venture in any way between Avon and ERVC, nor as creating any relationship between Avon and ERVC other than that of Avon granting a leasehold interest to ERVC in said property, thereby creating solely and strictly a "Landlord-Tenant" relationship and no other. J. Captions And Context. The captions of the Sections of this Lease are to assist the Parties in reading this Lease and are not a part of the terms or provisions of this Lease. Whenever required by the context of this Lease, the singular shall include the plural and the plural shall include the singular. The masculine, feminine and neuter genders shall each include the other. K. Waiver of Breach. No waiver of any breach of any provision of this Lease shall be construed to be a waiver of any preceding or succeeding breach of such provision or of any other provision hereof. L. Applicable Law, Jurisdiction and Forum. This Lease and the rights and obligations of the Parties arising hereunder shall be construed in accordance with the laws of the State of Colorado. In the case of any action, suit or proceeding arising out of this Lease, Avon and ERVC agree that jurisdiction and venue shall be in Eagle County, State of Colorado. M. Severability. A determination that any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws will not affect the remainder of this Lease. N. Signatures. Signatures on this Lease that are delivered by facsimile or electronically in a portable document format (pdf) shall be deemed to constitute original signatures. O. Covenant of Good Faith and Fair Dealing. Avon and ERCV acknowledge the covenant of good faith and fair dealing applies to this Lease. Both Parties agree to not unreasonably withhold, condition or delay any action or approval referenced in this Lease. P. Governmental Immunity. No term or condition of this Lease shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections, or other provisions of the Colorado Governmental Immunity Act, C.R.S. §§ 24-10-101, et seq. Remainder intentionally blank. Signature page follows. ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 18 of 20 IN WITNESS WHEREOF, Avon and ERVC have hereunto executed this Lease on the date(s) set forth below. AVON: TOWN OF AVON By:__________________________________ Attest:_____________________________________ Tamra Nottingham Underwood, Mayor Miguel Jauregui Casanueva, Town Clerk Approved as to Form: Nina Williams, Town Attorney ERVC: EAGLE RIVER VALLEY CHILDCARE By: Print Name: Title: Date: ATTACHMENT A: LAND LEASE Ground Lease: ERVC April 4, 2025 DRAFT Page 19 of 20 EXHIBIT A: LEGAL DESCRIPTION [MORE INFORMATION] [title exceptions to be included] ATTACHMENT A: LAND LEASE B B B B T / R POC EXHIBIT B: DEPICTION OF LEASED LAND 970-748-4088 predmond@avon.org 6TO: Honorable Mayor Tamra N. Underwood and Council Members FROM: Paul Redmond, Chief Finance Officer RE: 2025 Supplemental Budget Amendment, Resolution 25-09 DATE: April 1, 2025 SUMMARY: Avon’s Home Rule Charter addresses in Chapter XII the supplemental appropriation process. The Town of Avon’s financial practice is to adopt a supplemental budget amendment to update the beginning fund balance estimates and generally recognize revisions to the budget that were not identified at the time the budget was originally adopted. These resolutions amend the General Fund, Community Housing Fund, Exterior Energy Offset Fund, Mobility Fund, Equipment Replacement Fund and Capital Projects Fund. FINANCIAL CONSIDERATIONS: Below is a summary of the proposed budget revisions and the estimated impacts to fund balances. General Fund: The General Fund is estimated to have a surplus from the 2024 Amended Budget of approximately $181,898. Actual revenues exceeded estimates by approximately $920,531. Although sales tax was significantly under budget, building permits, plan check fees, recreation center admission fees and investment earning all exceeded expectations. Expenditures were over budget by approximately $811,328, due to the $2.7 million to fund the public works garage. The result is an ending fund balance in 2024 of $22,123,797 million, of which $15.5 million is unreserved and undesignated. A total increase of $22,341 is proposed to the General Fund to implement pending programs, respond to changing circumstances and include expenditures which were not identified and included during the 2025 Budget process last fall. The following are proposed revisions to expenditure appropriations in the General Fund: 1. Pavilion Rentals: A decrease of $8,140 from General Fund revenues. With the restricted access to Town venues associated with the East Nottingham Park Improvements, rentals and special event permits will not be available between April and October 2025. 2. Mural Artist Stipend and ICON Award: Mural artist stipend has been increased by $6,000 and attendance to the ICON Awards has been approved for $1,000. 3. Cameras for the Patrol Vehicles: Increase of $7,084.16 for the purchase of 3 additional car camera systems for the patrol vehicles. This is the annual cost for 2025. The revised 2025 ending fund balance of the General Fund reports a total of $21,052,034. A reserve of 22% is $6,352,835, the 3% TABOR emergency reserve is $841,172, and the remaining amount of $13,858,026 is undesignated and unreserved and can be used for any legal purpose. This is an increase of $2,912,275 in unreserved fund balances from the original 2025 budget. Capital Projects Fund: The changes to the Capital Project Fund are as follows:  Carried-forward of all unspent, active project budget from 2024 to 2025, totaling $14,416,332.  Increase of $37,000 for the replacement of the digital signs on the railroad tracks. 970-748-4088 predmond@avon.org Increase in expenditures of $281,961 to the Operating Transfer Out to the Community Housing Fund. The total Transfer Out is based off 10% of the Real Estate Transfer Tax from received in 2024 in the Capital Projects Fund. The revised 2025 ending fund balance of the Capital Projects Fund shows a total of $4,042,566. Of this amount, $2,429,108 is reserved for Tract G/URA projects. The remaining amount of $1,157,314 can be used for capital improvements as defined by the municipal code and up to 10% of real estate transfer tax revenues can be transferred to the Community Housing Fund. Staff have not revised our projections for real estate transfer taxes for 2025. We will continue to evaluate this revenue and make any recommended revisions later in the year. Mobility Fund: Revisions to the Mobility Fund include the following items: Increase of $38,080 to Part-Time Wages. Mobility currently has four bus driving shifts per day. These shifts range from 8 to 10 hours. The 10-hour shifts require the drivers to be on the bus for 7 hours without a break. The increase in Part-Time Wages will allow the drivers to take a break as the shifts will change from 10-hours to a maximum 8-hour shift. The projected ending fund balance for 2025 is $601,838. Community Housing Fund: The revisions to the Community Housing Fund are as follows: Increase of $460,338 in Mi Casa deed restriction program to carry over prior year unspent amounts. Increase of $500,000 in MEHOP deed restriction program to carry over prior year unspent amounts. Increase of $1,376,516 in unused capital projects to carry over prior year unspent amounts. This includes the Lot 5 Employee Housing Project, Eagle County Regional Housing Action Plan and other potential housing projects. Increase in revenues of $281,961 to the Operating Transfer in from the Capital Projects Fund. The total Transfer In is based off 10% of the Real Estate Transfer Tax from received in 2024 in the Capital Projects Fund. The revised beginning fund balance of the Community Housing Fund shows a total of $3,609,055 which is $2,747,104 higher than the original projected beginning fund balance for 2025. Revised projected fund balance for 2025 is $1,351,772. Exterior Energy Offset Fund: The revisions to the Exterior Energy Offset Fund are as follows: Increase of $22,000 to train four certified building analyst technicians and purchase equipment required to perform home energy assessments. The projected ending fund balance for 2025 is $116,146. 970-748-4088 predmond@avon.org Equipment Replacement Fund: Revisions to the Equipment Replacement Fund include the following items:  Increase of $119,072 for the 2022-2024 carry forward of five take home vehicles to be upfitted for Police.  Increase of $784,000 for the 2024 carry forward of two plow trucks.  Increase of $70,000 for the replacement of the digital sign on the railroad tracks bridge. The equipment replacement fund has $33,000 available for the purchase of this sign. The projected ending fund balance for 2025 is $5,993,004. PROPOSED MOTION: "I move to approve Resolution No. 25-09, A Resolution Amending the 2025 Town of Avon Budget." Thank you, Paul ATTACHMENTS: Attachment A Resolution No. 2025-09 Attachment B General Fund Supplemental Amendment No. 1 Attachment C Capital Projects Fund Supplemental Amendment No. 1 Attachment D Mobility Fund Supplemental Amendment No. 1 Attachment E Community Housing Fund Amendment No. 1 Attachment F Exterior Energy Offset Fund Amendment No. 1 Attachment G Equipment Replacement Fund Amendment No. 1 Res. No. 25-09 April 8, 2025 Page 1 of 3 TOWN OF AVON, COLORADO RESOLUTION NO. 25-09 A RESOLUTION TO AMEND THE 2025 TOWN OF AVON BUDGET WHEREAS, the Town Council of the Town of Avon has previously adopted the 2025 budget; and WHEREAS, the Town Council has reviewed the revised estimated revenues and expenditures for 2025; and WHEREAS, the Town Council finds it necessary to amend the 2025 budget to more accurately reflect the revenues and expenditures for 2025; and WHEREAS, the Town Council has caused to be published a notice containing the date and time of a public hearing at which the adoption of the proposed budget amendment will be considered and a statement that the proposed budget amendment is available for public inspection at the office of the Town Clerk located in the Avon Town Hall during normal business hours, and that any interested elector of the Town of Avon may file any objection to the proposed budget amendment at any time prior to the final adoption of the proposed budget amendment; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. That estimated revenues and expenditures for the following funds are revised as follows for 2025: Original or Previously Amended 2025 Budget Current Proposed Amended 2025 Budget General Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 19,210,754 27,812,902 28,862,324 $ 22,123,797 27,804,762 28,876,525 Ending Fund Balance $ 18,161,332 $ 21,052,034 Res. No. 25-09 April 8, 2025 Page 2 of 3 Original or Previously Amended 2025 Budget Current Proposed Amended 2025 Budget Capital Projects Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 4,677,231 12,967,000 7,302,986 $ 6,729,543 $ 17,050,547 12,967,000 25,974,981 $ 4,042,566 Mobility Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 540,628 2,588,967 2,794,143 $ 335,452 $ 845,094 2,588,967 2,832,223 $ 601,838 Exterior Energy Offset Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 202,401 25,000 84,000 $ 143,401 $ 197,146 25,000 106,000 $ 116,146 Community Housing Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 861,961 2,273,099 2,475,499 $ 659,561 $ 3,609,065 2,555,060 4,812,353 $ 1,351,772 Equipment Replacement Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 4,169,800 2,567,397 2,343,166 $ 5,321,134 2,604,397 1,932,527 Ending Fund Balance $ 3,949,031 $ 5,993,004 Res. No. 25-09 April 8, 2025 Page 3 of 3 Section 2. That the budget, as submitted, amended, and herein above summarized by fund, hereby is approved and adopted as the budget of the Town of Avon for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Mayor and made part of the public record of the Town. ADOPTED this 8th April, 2025. AVON TOWN COUNCIL By:___________________________ Attest:________________________ Tamra N. Underwood, Mayor Miguel Jauregui Casanueva, Town Clerk Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Taxes 20,718,659$ 21,040,289$ 21,040,289$ -$ Licenses and Permits 1,251,817 459,175 459,175 - Intergovernmental 1,395,586 1,532,455 1,532,455 - Charges for Services 2,666,094 2,090,036 2,081,896 (8,140) Fines and Forfeitures 86,854 52,200 52,200 - Investment Earnings 1,985,145 1,500,000 1,500,000 - Other Revenue 529,404 481,000 481,000 - Total Operating Revenues 28,633,560 27,155,155 27,147,015 (8,140) Other Sources Lease Proceeds - - - - Transfer-In From Capital Projects Fund 600,473 657,747 657,747 - Total Other Sources 600,473 657,747 657,747 - TOTAL REVENUES 29,234,033$ 27,812,902$ 27,804,762$ (8,140)$ EXPENDITURES General Government, HR and Finance 7,514,780$ 7,564,478$ 7,571,595$ 7,117$ Community Development 1,202,610 996,414 997,914 1,500 Public Safety 6,341,900 6,421,938 6,429,022 7,084 Public Works 7,095,451 8,374,150 8,372,650 (1,500) Recreation 2,707,394 3,205,344 3,205,344 - Capital Expenditure from Unreserved Fund Ba 2,690,000 800,000 800,000 - Total Operating Expenditures 27,552,135 27,362,324 27,376,525 14,201 Other Uses Transfers-Out to Capital Projects Fund - - - - Transfers-Out to Mobility Fund 1,300,000 1,500,000 1,500,000 - Transfers-Out to Fleet Maintenance Fund 200,000 - - - Total Other Uses 1,500,000 1,500,000 1,500,000 - TOTAL EXPENDITURES 29,052,135 28,862,324 28,876,525 14,201 NET SOURCE (USE) OF FUNDS 181,898 (1,049,422) (1,071,763) (22,341) FUND BALANCES, Beginning of Year 21,941,899 19,210,754 22,123,797 2,913,043 FUND BALANCES, End of Year 22,123,797$ 18,161,332$ 21,052,034$ 2,890,702$ FUND BALANCES: Restricted For: 3% TABOR Emergency Reserve 871,564$ 865,870$ 841,172$ (24,698)$ Unassigned: 22% Minimum Reserve Balance 6,391,470 6,349,711 6,352,835 3,124$ Undesignated, Unreserved 14,860,763 10,945,751 13,858,026 2,912,275 TOTAL FUND BALANCES 22,123,797$ 18,161,332$ 21,052,034$ 2,890,702$ Fund Summary MUNICIPAL SERVICES General Fund #10 Proposed Unaudited Original Amended Difference Actual Budget Budget Increase Description 2024 2025 2025 (Decrease) Taxes: General Property Tax 2,978,494$ 2,908,568$ 2,908,568$ -$ General Property Tax - Delinquencies - 500 500 - General Property Tax - Interest 3,616 1,900 1,900 - General Property Tax - Abatements (3,534) - - - Specific Ownership Tax 161,888 130,000 130,000 - Sales Tax 13,021,937 13,145,818 13,145,818 - Utility Tax 113,191 130,000 130,000 - Accommodation Tax 2,230,500 2,458,503 2,458,503 - Penalties and Interest 73,580 50,000 50,000 - Sales Tax Audit Assessments 36,287 50,000 50,000 - VAA Retail Sales Fee 1,083,164 1,100,000 1,100,000 - Cigarette Excise Tax 239,593 245,000 245,000 - Tobacco Add-on Sales Tax 314,548 360,000 360,000 - Franchise Fees 465,395 460,000 460,000 - Total Taxes 20,718,659 21,040,289 21,040,289 - Licenses and Permits: Liquor Licenses 6,701 7,500 7,500 - Business Licenses 262,130 185,000 185,000 - Contractor's Licenses 29,105 18,625 18,625 - Tobacco/Cigarette Licenses 2,750 1,750 1,750 - Booting/Towing Licenses 450 600 600 - Building Permits 866,729 225,000 225,000 - Road Cut Permits 83,253 20,000 20,000 - Mobile Vendor Cart Permits 700 700 700 - Total Licenses and Permits 1,251,817 459,175 459,175 - Intergovernmental: Federal Grants: Click It or Ticket - - - - Ballistic Vests Grant 2,166 2,000 2,000 - State Grants - LEAF Grant - 12,500 12,500 - High Visibility Grant 37,975 20,000 20,000 - POST I70 Training Grants 25,913 45,000 45,000 - DOLA Grants - 100,000 100,000 - Recreation Center Grants - 25,000 25,000 - Other State Grants 89,849 100,000 100,000 - Local Government/Other Agency - Other Local Grants - - - - Revenue Detail MUNICIPAL SERVICES General Fund Proposed Unaudited Original Amended Difference Actual Budget Budget Increase Description 2024 2025 2025 (Decrease) Revenue Detail MUNICIPAL SERVICES General Fund State/County Shared Revenue:- Conservation Trust 73,445 80,000 80,000 - Motor Vehicle Registration 24,597 26,000 26,000 - Highway User's Tax 223,046 191,805 191,805 - County Sales Tax 691,413 746,750 746,750 - Road & Bridge Fund 219,202 175,000 175,000 - State Severance Tax 509 2,400 2,400 - Retail Delivery Fee 7,472 6,000 6,000 - Total Intergovernmental 1,395,586 1,532,455 1,532,455 - Charges for Services: General Government: Photocopying Charges - - - - License Hearing Fees - - - - Other Fees and Charges 1,266 2,500 2,500 - Credit Card and Paper Filing Fees 3,827 2,500 2,500 - Community Development:- Plan Check Fees 556,653 150,000 150,000 - Design Review Fees 20,584 45,000 45,000 - Animal Control Fees - - - - Fire Impact Fee Administration Fees 8,100 2,500 2,500 - Public Safety:- - Police Reports 616 1,000 1,000 - Police Extra Duty 33,676 27,500 27,500 - Fingerprinting Fees 650 750 750 - VIN Inspection Fees 2,625 2,000 2,000 - False Alarm Fees/Misc Police Dept Fees 20 75 75 - DUI Reimbursement 12,556 15,000 15,000 - Avon Recreation Center:- Admission Fees 1,431,786 1,254,000 1,254,000 - Program Fees 31,900 33,000 33,000 - Facility Rentals 22,555 22,000 22,000 - Merchandise Sales 7,642 9,000 9,000 - Other Recreation Services 8,972 8,800 8,800 - Fitness Program Revenues 43,073 42,000 42,000 - Swim Team Revenue 52,299 52,800 52,800 - Private Lessons 23,345 27,500 27,500 - Avon Rec CTR Gift Cards - 1,000 1,000 - Proposed Unaudited Original Amended Difference Actual Budget Budget Increase Description 2024 2025 2025 (Decrease) Revenue Detail MUNICIPAL SERVICES General Fund General Recreation:- - Adult Program Revenues 34,407 27,500 27,500 - Cabin Equipment Rentals 34,902 35,000 35,000 - Athletic Field Rentals 840 240 240 - Cabin Concessions 72 500 500 - Youth Program Revenues 199,903 180,000 180,000 - Special Events:- - Consession Sales 92,941 94,131 94,131 - Sponsorships 9,000 10,000 10,000 - Event Fees 26,630 36,600 35,100 (1,500) Special Event Admission Fees 982 500 500 - Pavillion Rentals 4,272 6,640 - (6,640) Total Charges for Services 2,666,094 2,090,036 2,081,896 (8,140) Fines and Forfeitures: Court Fines - Traffic 41,084 23,000 23,000 - Court Fines - Criminal 32,950 20,000 20,000 - Court Fines - Parking 3,390 3,000 3,000 - Court Costs 4,955 3,000 3,000 - Jury Fees - 100 100 - Bond Forfeitures - 100 100 - Police Training Surcharge 4,475 3,000 3,000 - Total Fines and Forfeitures 86,854 52,200 52,200 - Investment Earnings:1,985,145 1,500,000 1,500,000 - Other Revenues: Recreational Amenity Fees 351,745 345,000 345,000 - Lease of Town-Owned Property 4,650 3,500 3,500 - Parking Revenue 10,474 7,500 7,500 Miscellaneous Nonclassified Revenues 162,535 125,000 125,000 - Total Other Revenues 529,404 481,000 481,000 - TOTAL REVENUES 28,633,560$ 27,155,155$ 27,147,015$ (8,140)$ Proposed Unaudited Original Amended Difference Actual Budget Budget Increase Description 2024 2025 2025 (Decrease) General Government: Mayor and Town Council 280,782$ 280,813$ 280,813$ -$ Town Attorney 322,175 272,020 272,020 - Town Clerk 169,121 202,971 202,971 - Municipal Court 203,432 197,996 197,996 - Administrative Services 900,077 964,370 964,370 - Community Relations 374,510 363,493 363,493 - Economic Development 349,429 215,430 215,430 - Special Events 1,322,535 1,510,463 1,517,580 7,117 Community Grants 120,000 108,000 108,000 - Sustainability 212,603 268,272 268,272 - Subtotal General Government 4,254,664 4,383,828 4,390,945 7,117 Human Resources: Human Resources 800,936 770,739 770,739 - Finance and Information Technology: Finance 1,090,637 1,156,096 1,156,096 - Information Systems 844,995 835,354 835,354 - Nondepartmental 523,548 418,461 418,461 - Subtotal Finance and IT 2,459,180 2,409,911 2,409,911 - Total General Government, HR and Finance 7,514,780 7,564,478 7,571,595 7,117 Community Development: Planning and Zoning Commission 12,368 14,425 14,425 - Planning 860,329 639,767 641,267 1,500 Building Inspection 329,913 342,222 342,222 - Total Community Development 1,202,610 996,414 997,914 1,500 .... Police Department: Administration 1,195,159 1,289,337 1,289,337 - Patrol 4,259,558 4,259,000 4,266,084 7,084 Investigations 552,116 616,124 616,124 - Code Enforcement 335,067 257,477 257,477 - Total Police Department 6,341,900 6,421,938 6,429,022 7,084 Department Expenditure Summaries MUNICIPAL SERVICES General Fund Proposed Unaudited Original Amended Difference Actual Budget Budget Increase Description 2024 2025 2025 (Decrease) Department Expenditure Summaries MUNICIPAL SERVICES General Fund Public Operations: Administration 440,676 511,668 511,668 - Engineering 396,536 678,199 678,199 - Roads and Bridges 3,333,365 3,844,058 3,844,058 - Parks 826,326 1,034,211 1,032,711 (1,500) Buildings and Facilities 2,098,548 2,306,014 2,306,014 - Total Public Works Department 7,095,451 8,374,150 8,372,650 (1,500) Recreation Department: Administration 300,112 348,556 348,556 - Adult Programs 53,283 91,150 91,150 - Aquatics 1,002,906 1,044,788 1,044,788 - Fitness 274,446 361,592 361,592 - Guest Services 572,015 719,904 719,904 - Youth Programs 247,724 309,342 309,342 - Communtiy Swim Program 256,908 330,012 330,012 - Total Recreation 2,707,394 3,205,344 3,205,344 - TOTAL OPERATING EXPENDITURES 24,862,135$ 26,562,324$ 26,576,525$ 14,201$ Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Taxes 7,980,409$ 5,000,000$ 5,000,000$ -$ Intergovernmental 1,683,440 5,116,000 5,116,000 - Investment Earnings 488,203 200,000 200,000 - Other Revenue 749 15,000 15,000 - Total Operating Revenues 10,152,802 10,331,000 10,331,000 - Other Sources: Operating Transfers-In 2,350,000 2,636,000 2,636,000 - Total Other Sources 2,350,000 2,636,000 2,636,000 - TOTAL REVENUES 12,502,802 12,967,000 12,967,000 - EXPENDITURES Capital Improvements: Facilities 3,100,084 1,090,000 8,557,424 7,467,424 Parks and Open Space - - - - Streets and Parking - - - - Drainage 367,350 25,000 262,650 237,650 Utility Projects 380,663 350,000 834,309 484,309 Land and Land Improvements 223,101 3,632,986 5,387,422 1,754,436 Roads and Streets 3,555,237 2,205,000 7,002,513 4,797,513 Utility Projects - - - - Planning and Consulting - - - - Communications and Technology - - - - Debt Service: Capital Leases 55,720 - - - Total Capital Improvements 7,682,155 7,302,986 22,044,318 14,741,332 Other Uses Operating Transfers-Out 3,279,080 3,611,702 3,930,663 318,961 Total Other Uses 3,279,080 3,611,702 3,930,663 318,961 TOTAL EXPENDITURES 10,961,235 10,914,688 25,974,981 15,060,293 NET SOURCE (USE) OF FUNDS 1,541,567 2,052,312 (13,007,981) (15,060,293) FUND BALANCE, Beginning of Year 15,508,980 4,677,231 17,050,547 12,373,316 FUND BALANCE, End of Year 17,050,547$ 6,729,543$ 4,042,566$ (2,686,977)$ Fund Balances Restricted For: Asphalt Overlay 423,144$ 423,144$ 423,144$ -$ Assigned For: Tract G/URA Projects 2,429,108 2,429,108 2,429,108 - Unassigned: Unreserved 14,198,295 3,877,291 1,190,314 (2,686,977) Total Fund Balances 17,050,547$ 6,729,543$ 4,042,566$ (2,686,977)$ Fund Summary MUNICIPAL SERVICES Capital Projects Fund #41 CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Original Revised Unaudited Budget Budget 2024 2025 2025 2026 2027 2028 2029 REVENUES Real Estate Transfer Tax: Base Level 7,980,409$ 5,000,000$ 5,000,000$ 5,000,000$ 5,000,000$ 5,000,000$ 5,000,000$ Frontgate - - - - - - - One RiverFront - - - - - - - McGrady Acres - - - - - - - Penalties and Interest - - - - - - - Interest Earnings 488,203 200,000 200,000 200,000 150,000 100,000 75,000 Intergovernmental: Federal/State/County: Colorado Water Conservation Board - - - - - - - American Recovery Plan Act 1,636,538 - - - - - - DOLA Grant (East Park Restrooms)46,902 1,000,000 1,000,000 - 1,000,000 - - CDOT Transit Grant - - - 2,624,000 - - - GOCO Grant (Eaglebend Playground)- 375,000 375,000 - - - - 2024 Charge Ahead Grant Fast (EV Charging Station)- - - - - - - Eagle County Contribution (Hwy 6 Roundabout)- 1,300,000 1,300,000 - - - - CDOT Revitalize Main Street Grant (Hwy 6 Roundabout)- 2,000,000 2,000,000 - - - - CDOT Multimodal Options Fund Grant (Hwy 6 Roundabout)- - - - - - - CDOT Off-System Bridge Grant 348,397 CDOT Highway Safety Improvemetn Grant 441,000 441,000 Colorado Parks and Wildlife Grant - - - - - - - BRIC and FMA (Flood Mitigation Grant - - - - - - - Other Revenues: Contributed Infrastructure & Improvements (McGrady Acres Park - - - - - - - Community Contributions - 15,000 15,000 - - - - Nonclassified 749 - - - - - - Total Operating Revenues 10,152,802 10,331,000 10,331,000 8,172,397 6,150,000 5,100,000 5,075,000 Other Sources: Transfers In - General Fund - Storage Facility - - - - - - - Transfers In - Avon URA - Tract G Projects 1,750,000 1,750,000 1,750,000 1,500,000 1,000,000 1,000,000 1,000,000 Transfers In - Community Enhancement Fund - Powerline Undergrounding/LED Rec Center 100,000 361,000 361,000 100,000 100,000 100,000 100,000 Projected CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Original Revised Unaudited Budget Budget 2024 2025 2025 2026 2027 2028 2029 Projected Transfers In - Water Fund - Nottingham-Puder Ditch 500,000 100,000 100,000 - - - - Transfers In - Equipment Replacement Fund - Snow Plows - 425,000 425,000 - 450,000 - - Total Other Sources 2,350,000 2,636,000 2,636,000 1,600,000 1,550,000 1,100,000 1,100,000 Total Revenues and Sources of Funds 12,502,802$ 12,967,000$ 12,967,000$ 9,772,397$ 7,700,000$ 6,200,000$ 6,175,000$ EXPENDITURES Capital Improvements: Facilities 3,100,084 1,090,000 8,557,424 400,000 230,000 - - Parks and Open Space - - - - - Streets and Parking - - - .... Drainage 367,350 25,000 262,650 1,200,000 - - - Utility Projects 380,663 350,000 834,309 - - - - Land and Land Improvements 223,101 3,632,986 5,387,422 50,000 4,450,000 140,000 1,240,000 Roads and Streets 3,555,237 2,205,000 7,002,513 4,900,402 1,240,000 4,790,000 1,240,000 Planning and Consulting - - - - - - - Communications and Technology - - - - - - - Debt Service: Capital Leases: - 2017 Commerce Bank, Plow Truck, Electrician Lift Truck 55,720 - - - - - - Total Expenditures 7,682,155 7,302,986 22,044,318 6,550,402 5,920,000 4,930,000 2,480,000 Other Uses: Transfers Out - General Fund: - Engineering Department Salary and Benefits 618,487 657,747 657,747 710,377 731,688 753,639 776,248 Transfers Out - Community Housing Fund: - Mi Casa Program 652,929 500,000 781,961 450,000 450,000 450,000 450,000 Transfers Out - Debt Service Fund: - 2014B COPS (Street Improvements)318,666 320,637 320,637 317,304 318,820 320,033 320,033 - 2016 COPS (Public Safety Bldg.)447,475 449,325 449,325 448,225 446,425 448,225 448,225 - 2020 Refunding COPs 195,983 190,793 190,793 192,640 193,437 194,200 194,200 Transfers Out - Mobility Fund: - Diesel Buses (2) 200,000 200,000 200,000 - - - - CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Original Revised Unaudited Budget Budget 2024 2025 2025 2026 2027 2028 2029 Projected - Electric Buses (2) - - - 2,624,000 - - - Transfers Out - Fleet Maintenance Fund: - 2020 COPs (Fleet Maintenance Bldg.)193,002 193,825 193,825 195,612 196,348 196,048 196,048 - 80/20 Match on Grant for Lifts - 240,000 240,000 - - - - Transfers Out - Equipment Replacement Fund: - Police Dept. Take-home Vehciles and Equipment - - - - - - - - Dump Truck/Road Widener/Roller 316,163 - - - - - - - External Vest Ballistic Plates - 40,000 40,000 - - - - - Digital Signs on Railroad Tracks - - 37,000 - - - - - Heavy Duty Dump Trailer - 20,000 20,000 - - - - - Diesel Light Towers (2)- 38,000 38,000 - - - - - Armored Rescue Vehicle 336,375 336,375 336,375 - - - - - Snow Plow - 425,000 425,000 - 450,000 - - Total Other Uses 3,279,080 3,611,702 3,930,663 4,938,158 2,786,718 2,362,145 2,384,754 Total Expenditures and Uses of Funds 10,961,235 10,914,688 25,974,981 11,488,560 8,706,718 7,292,145 4,864,754 Net Source (Use) of Funds 1,541,567 2,052,312 (13,007,981) (1,716,163) (1,006,718) (1,092,145) 1,310,246 Fund Balance, Beginning of Year 15,508,980 4,677,231 17,050,547 10,619,029 8,902,866 7,896,147 6,804,002 Fund Balance, End of Year 17,050,547$ 6,729,543$ 4,042,566$ 8,902,866$ 7,896,147$ 6,804,002$ 8,114,248$ Fund Balances Restricted For: Asphalt Overlay 423,144$ 423,144$ 423,144$ -$ -$ -$ -$ Assigned For: Tract G/URA Projects 2,429,108 2,429,108 2,429,108 2,080,407 1,680,407 2,580,407 2,380,407 Unassigned:. Unreserved 14,198,295 3,877,291 1,190,314 6,822,459 6,215,740 4,223,595 5,733,841 Total Fund Balances 17,050,547$ 6,729,543$ 4,042,566$ 8,902,866$ 7,896,147$ 6,804,002$ 8,114,248$ (1)(2)(3)(4)(1+2+4) Revised 2023 and Original Amended Estimated Difference Account Prior Actual Budget Budget #1 Project-to-Date Remaining Expenditures Increase Number Description Actuals 2024 2025 2025 Expenditures Less Current Year Budget Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Facilities: General Government Facilities: 11025 H.A. Nottingham Park East Improvements 359,164 300,750 2,736,466 2,736,466 3,396,380 2,190,086 5,586,466 5,586,466 - In Progress 11033 IT Office Expansion - - - - - 30,000 30,000 30,000 - In Progress 11032 Building Door Replacements - - - - - 105,000 105,000 105,000 - In Progress 11034 Council Chambers AV Improvements - 72,391 - - 72,391 52,609 125,000 125,000 - In Progress - - Public Safety Facilities:- - Public Works Facilities:- 13014 Public Works Facilities Expansion Planning 250,460 111,185 - - 361,645 238,355 600,000 600,000 - In Progress 13015 Public Works Garage - 1,909,500 - - 1,909,500 2,380,500 4,290,000 4,290,000 - In Progress Fleet and Transportation Facilities:- 14010 Fleet Maintenance EPDM Roof Replacement 10,500 - - - 10,500 449,500 460,000 460,000 - In Progress 14020 Fleet Maintenance - HVAC / AC - 10,900 - - 10,900 14,100 25,000 25,000 - In Progress 14022 ARTF Roof Repair 76,701 - - - 76,701 63,299 140,000 140,000 - In Progress 14024 ARTF - BAS / HVAC PM - - - - - 165,600 165,600 165,600 - In Progress 14025 ARTF - HVAC Separation 19,110 - - - 19,110 292,890 312,000 312,000 - In Progress 14027 Fleet Compressor System - 33,808 - - 33,808 6,192 40,000 40,000 - In Progress 14028 Fleet Vehicle Lifts Repair*- - - - - 320,000 320,000 320,000 - In Progress 14032 East Beaver Creek Blvd Childcare Bus Stop - - 150,000 150,000 150,000 - 150,000 150,000 - In Progress Police Facilities:- 12008 PD Cooling Tower Chemical loop pump - - - - - 12,000 12,000 12,000 - In Progress 12010 Mobile VMS Sign For Code enforcement - - 35,000 35,000 35,000 - 35,000 35,000 - In Progress 12011 PD Commanders Office - - 30,000 30,000 30,000 - 30,000 30,000 - In Progress 12009 EV Charging Station at PD*- 73,620 - - 73,620 26,380 100,000 100,000 - In Progress Cultural and Recreational Facilities:- - 15029 Recreation Center Aquatics Remodel Plan and Design 13,350 95,735 70,000 70,000 179,085 690,915 870,000 870,000 - In Progress 15040 Rec Center Roof Repairs - - 10,000 10,000 10,000 - 10,000 10,000 - In Progress 15048 Rec Center Painting - - 20,000 20,000 20,000 - 20,000 20,000 - In Progress 15043 Swim Area Anchors Nottingham Lake (4)- 4,367 - - 4,367 35,633 40,000 40,000 - In Progress 15044 Art Pedestal Repairs and Solar Light Install - - - - - 75,000 75,000 75,000 - In Progress 15034 Additional Lighting and Signage for Stage - 2,536 100,000 100,000 102,536 47,464 150,000 150,000 - In Progress 15035 Pool area LED replacement - 80,761 - - 80,761 19,239 100,000 100,000 - In Progress 15036 Fitness Court Removal Design - - - - - 35,000 35,000 35,000 - In Progress 15037 Improve Rear Access to Rec Center - - - - - 150,000 150,000 150,000 - In Progress 15038 Rec Center Building Key Card Access - 3,702 - - 3,702 58,948 62,650 62,650 - In Progress 15039 Rec Center additional 8 new cameras - 22,901 - - 22,901 2,099 25,000 25,000 - In Progress 15041 Rec Cernter Furniture - 14,883 - - 14,883 117 15,000 15,000 - In Progress 15042 Monument Signs for Pocket Parks - 68,502 - - 68,502 6,498 75,000 75,000 - In Progress 15046 HAN Pavilion - Remove Rust and Paint - - 20,000 20,000 20,000 - 20,000 20,000 - In Progress 15049 Fitness Area Floor Replacement - - 110,000 110,000 110,000 - 110,000 110,000 - In Progress 15050 Rec Center Office Area Expansion - - 75,000 75,000 75,000 - 75,000 75,000 - In Progress 15051 Rec Centeer Break Room Remodel - - 15,000 15,000 15,000 - 15,000 15,000 - In Progress 15052 Rec Center Surveillance Camera Replacement - 60,000 60,000 60,000 - 60,000 60,000 - In Progress 21070 Special Events Meridian Barriers - 66,983 31,520 31,520 98,503 98,503 98,503 - In Progress - - Other Facilities:- - 19014 Town Security Cameras - - 100,000 100,000 100,000 - 100,000 100,000 - In Progress 14031 Fleet wash Bay Lift - - 300,000 300,000 300,000 - 300,000 300,000 - In Progress 14030 Fleet HVAC Repair and Replacement - - 200,000 200,000 200,000 - 200,000 200,000 - In Progress 14029 ARTF Furniture for Facilities 57,753 - - 57,753 50,000 50,000 - In Progress - - CIP Projects Inventory Project Expenditures Total Project Budget Capital Projects Fund #41 2025 Supplemental Amendment #1 (1)(2)(3)(4)(1+2+4) Revised 2023 and Original Amended Estimated Difference Account Prior Actual Budget Budget #1 Project-to-Date Remaining Expenditures Increase Number Description Actuals 2024 2025 2025 Expenditures Less Current Year Budget Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS CIP Projects Inventory Project Expenditures Total Project Budget Capital Projects Fund #41 2025 Supplemental Amendment #1 Land and Land Improvements:- - 21027 O'Neil Spur Park Improvements Design - - - - - 20,000 20,000 20,000 - In Progress 21054 Wildland Fire Mitigation 80,000 40,000 40,000 40,000 120,000 - NA NA Ongoing 21055 Power Line Undergrounding 1,533 8,611 - - 10,144 471,828 481,972 481,972 - In Progress 21057 O'Neil Spur Park Parking Lot Rebuild - - 100,000 100,000 100,000 - 100,000 100,000 - In Progress 21058 North Restrooms - Nottingham Lake Beach 59,754 - - - 59,754 480,246 540,000 540,000 - In Progress 21063 Saddleridge Park Refresh - - - - - 100,000 100,000 100,000 - In Progress 21064 Park Water Fountain Replacement 2,400 788 - - 3,188 71,813 75,000 75,000 - In Progress 21066 Eaglebend Park Improvements 10,748 56,491 300,000 300,000 367,239 482,761 850,000 850,000 - In Progress 31032 Railing Repairs at VAA - 33,974 - - 33,974 1,026 35,000 35,000 - In Progress 31033 Post Blvd Irrigation Repair - 83,238 - - 83,238 66,762 150,000 150,000 - In Progress 21069 West Restrooms - - - - - 60,000 60,000 60,000 - In Progress - - Roads and Streets:- - Streetscape Improvements:- - 32035 Metcalf Road - Retaining Wall Stabilization - - - - - 80,000 80,000 80,000 - In Progress Street Improvements:- - Annual Street Maintenance and Repair:- - 32026 Retaining Wall Repairs - Nottingham & Swift Gulch Rd.7,442 72,980 - - 80,422 119,578 200,000 200,000 - In Progress 32030 Avon Road Safety Improvements 120,763 69,338 300,000 300,000 490,101 - 450,000 450,000 - Ongoing 32037 W. B/C Blvd. - Concrete Repairs - - - - - 223,701 223,701 223,701 - In Progress 33220 Annual Guard Rail Improvements 78,753 - 40,000 40,000 118,753 - NA NA - Ongoing 32044 Swift Gulch Road - Buffalo Ridge Asphalt Overlay - 624,038 - - 624,038 49,436 673,474 673,474 - In Progress 32045 Old Trail Road Asphalt Overlay - - - - - 789,701 789,701 789,701 - In Progress 32046 WBCB River Bridge Deck Repair Railing Upgrade 5,680 48,169 - - 53,849 196,151 250,000 250,000 - In Progress 32049 RAB5 Post Blvd Bridge Wall Repair - - 100,000 100,000 100,000 - 100,000 100,000 - In Progress 32050 RAB1 & 2 Avon Rd Concrete and Ladnscaping - - 30,000 30,000 30,000 - 30,000 30,000 - In Progress 32051 EBCB Realignment I - grading work - - 20,000 20,000 20,000 - 20,000 20,000 - In Progress 31034 I-70 Off-ramp Streetlight Repair - - - - - 50,000 50,000 50,000 - In Progress 31035 Town Wide Retaining Wall Structures Analysis - - - - - 80,000 80,000 80,000 - In Progress 31036 Riverfront/Ped Mall Manhole Repairs - 45,525 - - 45,525 14,475 60,000 60,000 - In Progress 31043 Tract A DC Fast Chargers (4)- - - - - 350,000 350,000 350,000 - In Progress 31045 Post Blvd Asphalt Overlay - 11,760 - - 11,760 238,240 250,000 250,000 - In Progress 31044 W. Main Street Mall Improvements - 30,308 100,000 100,000 130,308 69,692 200,000 200,000 - In Progress Multi-Modal/Alternative Mobility:- - 32039 US Hwy 6 & Stonebridge Rd. Roundabout 499,001 375,074 1,500,000 1,500,000 2,374,075 2,225,926 4,600,000 4,600,000 - In Progress 34044 June Creek Emergency Access 19,423 328,981 - - 348,404 - 327,325 327,325 - In Progress Recreational Trails Program:- - 34041 Lee's Way Trail Rebuild 600 - - - 600 49,400 50,000 50,000 - In Progress 34042 Benchmark Rd Crosswalks (2)- - 50,000 50,000 50,000 - 50,000 50,000 - In Progress 34045 Recreation Trail Path Recon. - Lower Athletic Field 96,660 670,486 - - 767,146 98,854 866,000 866,000 - In Progress 34046 Hurd Lane - Recreation Trail Reconstruction - 63,549 - - 63,549 141,451 205,000 205,000 - In Progress 34047 Eagle Valley Trail - West Reconstruction - 324,801 - - 324,801 20,908 345,709 345,709 - In Progress 34048 West Avon Preserve Trail Repair - - 35,000 35,000 35,000 - 35,000 35,000 - In Progress 34049 Traer Creek Apt - P1 - - 250,000 250,000 250,000 - 250,000 250,000 - In Progress (1)(2)(3)(4)(1+2+4) Revised 2023 and Original Amended Estimated Difference Account Prior Actual Budget Budget #1 Project-to-Date Remaining Expenditures Increase Number Description Actuals 2024 2025 2025 Expenditures Less Current Year Budget Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS CIP Projects Inventory Project Expenditures Total Project Budget Capital Projects Fund #41 2025 Supplemental Amendment #1 Drainage Projects: 61011 Tract A Drainage Improvements - - - - - 50,000 50,000 50,000 - In Progress 61015 Nottingham Rd Basin 4 Erosion Control - 387,350 - - 387,350 12,650 400,000 400,000 - In Progress 61016 Puder Ditch Headgate Repair - - 25,000 25,000 25,000 75,000 100,000 100,000 - In Progress 61017 Nottingham Reservoir Repairs - - - - - 100,000 100,000 100,000 - In Progress 61018 Upgrade Nottingham Puder Ditch Pump Station - - 300,000 300,000 300,000 - 300,000 300,000 - In Progress Utility Projects:- - 11034 Council Chambers AV Improvements - 73,991 - - 73,991 51,009 125,000 125,000 - In Progress 81022 Rec Center AV/WIFI upgrades - - - - - 65,000 65,000 65,000 - In Progress 19011 Recycling Center Upgrade*- 278,268 - - 278,268 158,947 437,215 437,215 - In Progress 81011 Broadband 46,528 - - - 46,528 78,472 125,000 125,000 - In Progress 81021 Nottingham Park Wi-Fi Access 19,119 - - - 19,119 130,881 150,000 150,000 - In Progress 81023 IT Upgrades for Recreation and Fleet - - 50,000 50,000 50,000 - 50,000 50,000 - In Progress - - - Total Capital Improvement Projects 13,329,026$ 7,587,355$ 7,302,986$ 7,322,986$ 28,199,367$ 14,741,332$ 44,459,675$ 44,856,166$ (396,491)$ Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Taxes 73,037$ 69,487$ 69,487$ -$ Intergovernmental 338,398 294,000 294,000 - Charges for Services 353,499 379,869 379,869 - Other Revenues 205,435 145,611 145,611 - Total Operating Revenues 970,369 888,967 888,967 - Other Sources Transfers In from General Fund 1,500,000 1,500,000 1,500,000 - Transfers In from Capital Projects Fund 200,000 200,000 200,000 - Total Other Sources 1,700,000 1,700,000 1,700,000 - TOTAL REVENUES 2,670,369 2,588,967 2,588,967 - EXPENDITURES Administration 248,346 366,821 366,821 - Transit Operations 1,687,989 1,772,701 1,810,781 38,080 Washbay 275,006 287,505 287,505 - Mobility Programs 510,651 367,116 367,116 - TOTAL EXPENDITURES 2,721,992 2,794,143 2,832,223 38,080 NET SOURCE (USE) OF FUNDS (51,623) (205,176) (243,256) (38,080) FUND BALANCES, Beginning of Year 896,717 540,628 845,094 304,466 FUND BALANCES, End of Year 845,094$ 335,452$ 601,838$ 266,386$ Fund Summary Mobility Enterprise Fund #52 Supplemental Amendment $1 Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Taxes: Short-term Rental Tax 1,000,117$ 1,001,099$ 1,001,099$ -$ Use Tax on Construction Materials - 500,000 500,000 - Intergovernmental: State Grants 61,868 160,000 160,000 - Other Local Grants - 16,000 16,000 Charges for Services: Rental Revenues - Employees 80,483 87,000 87,000 - Other Revenue: Bond Issuance Fees 7,500 9,000 9,000 - Total Operating Revenues 1,149,969 1,773,099 1,773,099 - Other Sources Operating Transfers-In 652,909 500,000 781,961 281,961 Total Other Sources 652,909 500,000 781,961 281,961 TOTAL REVENUES 1,802,878 2,273,099 2,555,060 281,961 EXPENDITURES General Government: Community Housing Capital Projects: Planning and Consulting 245,893 1,180,000 2,556,516 1,376,516 Facilities 53,716 - - - Mi Casa Deed Restriction Program 664,230 600,000 1,060,338 460,338 EHOP 250,000 500,000 1,000,000 500,000 Grant Consulting 27,000 26,000 26,000 Tract Y Contribution - - - - R&M Rental Town Owned Units - 20,000 20,000 - Personnel Expenses - 131,163 131,163 - Community Housing Operating Expenditures 1,112 18,336 18,336 - TOTAL EXPENDITURES 1,241,951 2,475,499 4,812,353 2,336,854 NET SOURCE (USE) OF FUNDS 560,927 (202,400) (2,257,293) (2,054,893) FUND BALANCES, Beginning of Year 3,048,138 861,961 3,609,065 2,747,104 FUND BALANCES, End of Year 3,609,065$ 659,561$ 1,351,772$ 692,211$ Fund Summary Community Housing Fund #25 Supplemental Amendment #1 Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Licenses and Permits: Exterior Energy Offset Fee 18,264$ 25,000$ 25,000$ -$ Total Operating Revenues 18,264 25,000 25,000 - TOTAL REVENUES 18,264 25,000 25,000 - EXPENDITURES Community Development: Project Planning & Consulting 9,496 44,000 44,000 - Energy Efficiency Projects 36,523 40,000 62,000 22,000 Total Operating Expenditures 46,019 84,000 106,000 22,000 TOTAL EXPENDITURES 46,019 84,000 106,000 22,000 NET SOURCE (USE) OF FUNDS (27,755) (59,000) (81,000) (22,000) FUND BALANCES, Beginning of Year 224,901 202,401 197,146 (5,255) FUND BALANCES, End of Year 197,146$ 143,401$ 116,146$ (27,255)$ Fund Summary MUNICIPAL SERVICES Exterior Energy Offset Fund #27 Supplement #1 Unaudited Original Amended Difference Actual Budget Budget Increase 2024 2025 2025 (Decrease) REVENUES Charges for Services: Equipment Replacement Charges 1,203,761$ 1,448,022$ 1,448,022$ -$ Interest Earnings 173,255 120,000 120,000 - Other Revenue: Insurance Claim Reimbursements - - - - Total Operating Revenues 1,377,016 1,568,022 1,568,022 - Other Sources Transfers-In from Capital Projects Fund 652,538 859,375 896,375 37,000 Sales of Fixed Assets 75,600 140,000 140,000 - Total Other Sources 728,138 999,375 1,036,375 37,000 TOTAL REVENUES 2,105,154 2,567,397 2,604,397 37,000 EXPENDITURES Capital Outlay: Fleet and Heavy Equipment 1,466,553 2,115,172 1,209,533 (905,639) Recreation Center Equipment 15,643 49,930 49,930 - Computer and Office Equipment 97,527 118,854 118,854 - Machinery and Equipment 17,118 59,210 129,210 70,000 Heat Recovery - - - - Total Operating Expenditures 1,596,841 2,343,166 1,507,527 (835,639) Other Uses: Transfer-Out to Capital Projects Fund - 425,000 425,000 - TOTAL EXPENDITURES 1,596,841 2,768,166 1,932,527 (835,639) NET SOURCE (USE) OF FUNDS 508,313 (200,769) 671,870 872,639 FUND BALANCES, Beginning of Year 4,812,821 4,169,800 5,321,134 1,151,334 FUND BALANCES, End of Year 5,321,134$ 3,969,031$ 5,993,004$ 2,023,973$ Fund Summary MUNICIPAL SERVICES Equipment Replacement Internal Service Fund #63 MEMORANDUM TO: Board of Directors FROM: Brian Thompson, Government Affairs Supervisor DATE: March 24, 2025 RE: Summary of Feb. 27, 2025, Board Meeting The following is a summary of items discussed at the Authority’s Feb. 27, 2025, board meeting. Directors present and acting were Chair George Gregory, Treasurer Geoff Dreyer, Kevin Hillgren, Joanna Kerwin, and Tamra Underwood. Kim Bell Williams was absent and excused. Public Comment Steven Sendor, Vice President of Fortius Capital, asked for an update on the pending renewal of the conditional capacity to serve letter for Edwards River Park (ERP). Consideration of this renewal was tabled to the Apr. 10 board meeting so that ERP representatives and District staff can discuss reducing the development’s projected water demand. Beaver Creek Booster Pump Station Project The board approved a resolution to authorize integrated project delivery (IPD) for the Beaver Creek Booster Pump Station Project. IPD allows the Authority to select a contractor early in the design phase and to accept the proposal that represents the best value, not necessarily the lowest bid. Rules and Regulations Revisions The board approved revisions to the Rules & Regulations following thorough reviews by staff, the joint board committee, and community stakeholders. Most of the revisions addressed alignment with new meter-based billing structures and updates to the Backflow Prevention & Cross Connection Control (BPCCC) Program. Water Shortage Response Plan Justin Hildreth presented the draft Water Shortage Response Plan (WSRP). The WSRP outlines monitoring methods, triggers, and responses to droughts and other short-term water shortages in the Eagle River Basin. The Authority and District boards will consider a joint resolution to adopt the WSRP at the Apr. 10 board meetings. Town of Avon Work Session Siri Roman said staff held a work session on Feb. 5 with Authority representatives from Town of Avon focusing on the development report, water dedication policies, and the Traer Creek Water Bank. Water Dedication The board discussed water dedication methodologies, processes for renewing conditional capacity to serve letters, and the Authority’s unallocated water policy. Staff and counsel will prioritize review and updates to these frameworks to address evolving water management challenges. Bolts Lake Update Jason Cowles provided an update on design analysis and permitting for Bolts Lake Reservoir. A special joint board meeting with the District board focusing on Bolts Lake is scheduled for Apr. 10. DR A F T _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, ONLINE AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL MATT PIELSTICKER AT 970-748-4413 OR EMAIL MATT@AVON.ORG WITH ANY SPECIAL REQUESTS. AVON PLANNING & ZONING COMMISSION MEETING ABSTRACT MONDAY, MARCH 24, 2025 PUBLIC MEETING BEGINS AT 5:30 PM PUBLIC MEETING: 5:30 PM 1. CALL TO ORDER AND ROLL CALL (CHAIRPERSON) MEETING COMMENCED AT 5:30PM. A ROLLCALL WAS TAKEN, AND PLANNING COMMISSIONERS CARLY HANSEN, BRAD CHRISTIANSON, OLIVIA COOK, NANCY TASHMAN AND BRIAN SIPES WERE PRESENT. COMMISSIONERS ANTHONY SEKINGER AND NICOLE MURAD WERE ABSENT. ALSO PRESENT WERE TOWN ATTORNEY NINA WILLIAMS, PLANNING MANAGER JENA SKINNER, AICP, PLANNER II MAX MORGAN, AICP, AND DEVELOPMENT COORDINATOR, EMILY BLOCK. 2. APPROVAL OF AGENDA ACTION: COMMISSIONER CHRISTIANSON MADE A MOTION TO APPROVE THE AGENDA. COMMISSIONER TASHMAN SECONDED THE MOTION, AND THE MOTION PASSED UNANIMOUSLY, 5-0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST OR EX PARTE COMMUNICATION RELATED TO AGENDA ITEMS THERE WERE NO CONFLICTS OF INTEREST OR EX PARTE COMMUNICATION. 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA PUBLIC COMMENTS ARE LIMITED TO THREE (3) MINUTES. THE SPEAKER MAY BE GIVEN ONE (1) ADDITIONAL MINUTE SUBJECT TO PLANNING AND ZONING COMMISSION APPROVAL. THERE WERE NO PUBLIC COMMENTS. 5. PUBLIC HEARING 5.1. MJR24004 NEW RESIDENCE AT 2967 JUNE CREEK TRAIL – PLANNER II, MAX MORGAN LARRY ROSSER, OWNER OF ADJACENT PROPERTY BLOCK 2 LOT 30 (2631 BEARTRAP RD) SUBMITTED PUBLIC COMMENT. COMMISSIONER CHRISTIANSON MADE A MOTION TO APPROVE THE APPLICATION MJR24004 WITH THE PROPOSED CONDITIONS AS PRESENTED BY STAFF. COMMISSIONER SIPES SECONDED THE MOTION, WITH THE ADDITION OF THE FOLLOWING CONDITIONS: - MAINTENANCE OF THE IMPROVEMENTS TO EXTEND TO THE LOWER (PORTION/TOWARDS THE FOREST SERVICE GATE) OF THE ACCESS EASEMENT IF THE (PROPOSED) IMPROVEMENTS CAUSE WEAR AND TEAR ON THIS AREA OF THE LOWER ACCESS EASEMENT - SOLAR PANELS TO BE ALL-BLACK (CONSIDERED BIRD-SAFE, NOT REFLECTIVE) COMMISSIONER TASHMAN SECONDED THE CHANGES MADE TO THE MOTION, AND THE MOTION PASSED UNANIMOUSLY, 5-0 6. CONSENT AGENDA 6.1. MARCH 10, 2025 PLANNING AND ZONING COMMISSION MEETING MINUTES 6.2. RECORD OF DECISION - CPA25001 THREE-MILE PLAN _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, ONLINE AND AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL MATT PIELSTICKER AT 970-748-4413 OR EMAIL MATT@AVON.ORG WITH ANY SPECIAL REQUESTS. ACTION: COMMISSIONER COOK MADE A MOTION TO APPROVE THE CONSENT AGENDA. COMMISSIONER CHRISTIANSON SECONDED THE MOTION, AND THE MOTION PASSED UNANIMOUSLY, 5-0. 7. FUTURE MEETINGS 7.1. APRIL 7, 2025 7.2. APRIL 21, 2025 8. STAFF UPDATES 9. ADJOURN THE MEETING WAS ADJOURNED AT 6:42 PM THESE MEETING MINUTES ARE ONLY A SUMMARY OF THE PROCEEDINGS OF THE MEETING. THEY ARE NOT INTENDED TO BE COMPREHENSIVE OR TO INCLUDE EACH STATEMENT, PERSON SPEAKING OR TO PORTRAY WITH COMPLETE ACCURACY. THE MOST ACCURATE RECORDS OF THE MEETING ARE THE AUDIO RECORDING OF THE MEETING, WHICH CAN BE OBTAINED FROM THE TOWN CLERK’S OFFICE BY SUBMITTING A PUBLIC INFORMATION REQUEST.  RESPECTFULLY, EMILY BLOCK 970-748-4013 idejong@avon.org TO: Honorable Mayor Underwood and Council Members FROM: Ineke de Jong, Chief Administrative Officer RE: Signed Letters of Support DATE: March 31, 2025 SUMMARY: This report presents an overview of letters of support that were signed and submitted in recent weeks. BACKGROUND: At the February 13, 2024 Regular Town Council meeting, Council discussed the topic of letters of support and sign-on letters and requests. Staff outlined it is very difficult to define a policy that clearly indicates when letter of support requests should be reviewed by Council as a whole and when the Mayor or Manager should sign. There are many times when it is in Avon’s interest to support a policy decision and the timing is too quick to include on a Council meeting, so some level of delegation to Mayor and Manager is helpful. Council agreed that the Town Manager and the Mayor can review the contents of the letter requested and determine if it is consistent with policies already adopted by the Town (which may include plan documents, annual Department goals, or previous direction provided by Council). If the letter request is consistent then Mayor or Manager would sign on behalf of the Town. Copies of the signed letters have been included on a quarterly basis on Council agendas under written reports. The attached letters were signed in Q1 (Jan-March). COUNCIL DIRECTION: This report is informational, and no Council action is required. Thank you, Ineke ATTACHMENT A: February 28 Letter of Support for Eagle County and Vail Valley Mountain Trails Alliance’s (VVMTA) Outdoor Stewardship Partnership Grant Application. ATTACHMENT B: March 5 Letter of Support for the Town of Avon’s T-Mobile Hometown Grant program application for the Avon Community Mural Project. Post Office Box 975 100 Mikaela Way Avon, CO 81620 February 28, 2025 Great Outdoors Colorado (GOCO) 1900 Grant Street, Suite 725 Denver, CO 80203 RE: Support for Eagle County and VVMTA’s Outdoor Stewardship Partnership Grant Application Dear GOCO Grant Committee, I am writing on behalf of Town of Avon to express our strong support for Eagle County and the Vail Valley Mountain Trails Alliance’s (VVMTA) grant application to Great Outdoors Colorado (GOCO). This request will provide essential resources to create the Outdoor Stewardship Partnership initiative, a crucial effort to protect and sustain our public lands. Public lands in Eagle County provide tremendous recreational, economic, and ecological value to our communities. However, with increasing visitation, our trails, open spaces, and watersheds face significant pressures. This initiative will directly address these challenges by expanding the Trail Conservation Crew (TCC) and creating the Outdoor Stewardship Crew (OSC), ensuring much-needed on-the-ground stewardship, restoration, and sustainable recreation management. Additionally, our federal land managers—including the U.S. Forest Service (USFS) and Bureau of Land Management (BLM)—are facing significant budget and staffing reductions, creating even greater uncertainty in their ability to manage and maintain the public lands that are vital to our communities. These funding shortfalls further reduce the “boots on the ground” necessary for essential stewardship efforts, increasing the urgency for local and regional partnerships to fill the gap. This initiative will directly support USFS and BLM by providing critical stewardship capacity that would otherwise be lacking. Through collaboration with local governments, land managers, and community organizations, this initiative aligns with our municipalities’ commitment to preserving natural resources, maintaining recreational access, and fostering environmental responsibility. By supporting this grant, GOCO will help strengthen stewardship efforts across jurisdictions, ensuring the long-term health of Eagle County’s outdoor spaces for both residents and visitors. We fully support Eagle County and VVMTA’s grant application and urge GOCO to invest in this transformative project. Thank you for your consideration. Sincerely, Tamra N. Underwood Mayor, Town of Avon tunderwood@avon.org ATTACHMENT A Post Office Box 975 100 Mikaela Way Avon, CO 81620 T-Mobile Hometown Grant Selection Panel March 5, 2025 RE: The Town of Avon supports the “Avon Community Mural Project.” Dear T-Mobile Hometown Grant Selection Panel: As the Mayor of the Town of Avon, I am writing to express our Council’s enthusiastic support for Avon’s application to the T-Mobile Hometown Grant program. With T-Mobile Hometown Grant support, the Town of Avon will further enhance Avon’s burgeoning arts community and future development of culture and arts-related infrastructure, installations, services, and programming that will be enjoyed by Avon’s diverse community. The Community Mural Project brings vibrant, large-scale art to Avon, celebrating our town's rich diversity and multicultural spirit. This initiative not only offers free access to stunning murals but also beautifully complements the “Activate Avon” Project. This summer, as our residents and visitors enjoy free music and access to Harry A. Nottingham Park, the wellness benefits of the Avon Recreation Center including a reasonably-price kids’ summer day camp, and our public meetings at Avon Town Hall, the mural will create a visual connection between these key civic locations. With another mural already adorning the nearby Avon Recreation Center, both artworks would very much contribute to the artistic vibrancy that Avon is cultivating in this “La Zona” area for residents and visitors alike. Your endorsement will play a crucial role in bringing this Community Mural to life, enriching our community with vibrant art that celebrates our shared heritage and diversity. Together, we can make a lasting impact on Avon’s cultural landscape. Please give the Town of Avon’s application the highest consideration. Thank you. Sincerely, Tamra N. Underwood Mayor, Town of Avon tunderwood@avon.org ATTACHMENT B 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 1 of 11 Town of Avon 2025 Department Goals This document presents specific goals to be completed, or substantially completed, during 2025. The goals are identified by town departments and/or divisions.  Quarterly updates will be provided by department directors and managers.  Town Council will have an opportunity to review the information and provide direction on any revisions, deletions, or changes in priority.  The goals provide a foundation for organizing and scheduling Staff work as well as scheduling reports, work session and action items for Council meeting.  The list is not comprehensive in nature and there will be ample opportunity to review and discuss other high-level priorities set by Town Council, including but not limited to housing, water, childcare, climate action, US Post Office and railroad monitoring. 2025 Department Goals General Government GENERAL GOVERNMENT COMMUNICATION & MARKETING 1. Digitize and Archive Photo and Video Content on DVDs & VHS Cassette: Town staff has an abundance of video and photo assets on VHS cassette and DVD dating back to the 1980s. Staff will create a digital archive of this content that will both allow the content to be easily viewable and usable for marketing purposes. Not Started 2. Ensure Compliance with HB21-1110: HB21-1110 requires ADA compliance from municipal websites by July 1, 2025. Currently, most content and images on the website are in compliance, and new documents uploaded to the website have been remediated. However, the website has over 180,000 pages of PDF documents dating back to1978 that require remediation. In Progress – Avon has worked on these requirements since April 2022 and has had multiple meetings with third party vendors to explore website remediation tools and PDF remediation software. Liz attended a training in Steamboat about document remediation. We’re awaiting a quote from CivicPlus for agenda management software and Public Records requests software that would make packet materials ADA compliant. The Town Attorney is also looking into the requirements Avon will need to meet. 3. Implement Web Cameras in Nottingham Park: Based on data collected from peer communities, Avon will launch two web cameras in Nottingham Park – both mounted on the Avon Pavilion. One will face Nottingham Lake and the other will face Nottingham Park. The live stream of these cameras will 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 2 of 11 be linked to the Avon.org and Discover Avon websites. Liz worked with Carlos to look at what is being captured on the current cameras mounted on the stage. These cameras are scheduled to be replaced this spring, and Liz is working with IT to ensure the cameras purchased will also meet tourism needs. CULTURE, ARTS & EVENTS 4. Build Capacity in Art Guild at Avon: Support and collaborate with the Vail Valley Art Guild to build their organizational capacity through communication, information, and resource sharing, measuring current programs and activities, and fine-tuning processes and productivity. Develop and implement tactics to accurately reference, measure and track contractual deliverables for usable data collection and decision making, such as number/type of workshops, attendance, expense, revenue generation, etc. Identify venues and develop timelines for thoughtful and impactful programs and activities. Through a strategic alliance collaborate on identifying grant funding to further VVAG, CASE and Town goals. Continue to share and promote VVAG programming through Town list-serve and social channels. Staff developed programming performance tracking measures which VVAG Executive Director is currently working on. Staff developed an Art Walk in Avon showcasing the new temporary sculptures being installed in early June. The Art Guild will offer guided walks/tours of up to ten of the new pieces. The Art Walk will begin and end at the Art Guild and are being offered Fridays, June 13, 27, July 11, 25, August 8 and 22, and September 5 from 5:30 to 6:30 p.m. 5. Culture and Arts Plan: Conduct an inclusive community stakeholder process to develop a Culture and Arts Plan to present to Council for adoption. The community stakeholder process will involve all existing non-profits and community groups which support culture and arts in the Avon region. Utilize the grant award from the National Endowment for the Arts to retain consulting services to assist with developing the Culture and Arts Plan. Research similar culture and arts plans, programs and facilities in other communities. The CASE Committee will serve as the primary committee to review drafts of a Culture and Arts Plan and will recommend a complete draft Culture and Arts Plan to Council. Staff have scheduled peer community tours with Breck Creates on May 9th to learn more about their cultural offerings, programming, funds, and facilities. For the past three months Staff has provided the CASE Committee with 10 Culture and/or Art Strategic Plans from other communities to review, research, and gain insight to how to approach Avon’s Plan. Staff should know by the end of April if the NEA grants funds will be awarded. 6. Selfie Heart Project: Identify location in Nottingham Park, Main Street Mall or other Town Core location for a large heart shaped cut out structure (“selfie-heart project”) in metal, wood, or other sustainable and low maintenance material. Brightly colored and designed with the intent of engaging residents and visitors to take photos that create shareable moments and social opportunities. The location selection, design criteria, budget development and Planning & Zoning review and guidance would be done in 2025 for an early summer 2026 installation. The Selfie Heart project created during Salute to the USA was utilized for a small social media engagement exercise for approximately 10-days with limited success. No further updates. 7. Ice Sculptures on Main Street Mall (MSM): Continue research and identify locations along the MSM appropriate for temporary ice sculpture installations which encourage public engagement, are 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 3 of 11 decorative and/or themed, lit at night, self-explored, and designed to last a minimum of 14-days. The locations selection, design guardrails and budget development would be done in spring/fall 2025 for installation in January or February 2026. This could be a support feature for Fireworks in Avon in January 2026. This project will be more developed later this summer and in time for the 2026 budget cycle. 8. Historical Ranching & Railroad Collection: Collaborate with Community Development Department to determine an appropriate location for placement of historical farm and ranching and railroad equipment and structures in a public park or plaza and develop content for interpretive and education information. No action taken or updates. 9. Mural: Continue the program to commission an artist to install one mural per year in Avon. The Artist Call for the Community Mural at the Seasons at Avon building in Avon was released February 14th and closes March 31, 2025. As of today, there are 33 total submissions. The anticipated timeline is to select the artist by April 24, complete design concept review and final design by May 28 and install between June 16 and July 31. 10. Recycled Material Art Project: Commission a small sculpture project using the left-over aerosol cans from the 2024 Avon Elementary School mural project. This could be a project in partnership with the Art Guild at Avon and commissioning a member artist and displayed in a strategic location. Staff are developing the artist guardrails, materials available and timeline to be disseminated through the Art Guild database of members in the next 30 to 60 days. SUSTAINABILITY 11. Avon Composting Program: An objective of the Climate Action Plan is to divert 80% of organic waste materials from the Eagle County landfill by 2030. Research composting programs in peer communities and propose a composting program for residential and restaurant organic waste generators. The initial Avon composting program proposal, containing various options, was presented to Council on March 11, 2025. Council has directed Staff to proceed with a commercial composting program. The next steps consist of conducting extensive outreach to Avon commercial properties that generate food waste, designing the program details, and applying for the Colorado Circular Communities (C3) Grant to support this program. An update report will be provided to Council at the end of April. Staff aims to roll out an initial commercial pilot program in Fall 2025. 12. Climate Action Investment Matrix Refinement: Complete any unfinished aspects of the Climate Action Investment Matrix from 2024, refine the existing work, and develop a long-term data management workflow. Present the comprehensive Matrix, including policy reviews, financial investments, and return on investment for each decarbonization strategy, to Council. Staff presented the Town’s comprehensive Net Zero Analysis to Council on March 11, 2025. The strategies from the Net Zero Analysis will be applied to the Investment Matrix. The next steps involve working with Finance to capture all existing climate action investments and estimate future investments. Additionally, Staff will continue working with ICLEI to calculate specific GHG reduction of each strategy. ICLEI’s new ClearPath 2.0 program would help streamline a cost-benefit analysis that would fulfill the objectives of this goal. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 4 of 11 13. Biochar Pilot Program Concept Design: Revive the concept design of the biochar pilot program, which aims to use wood collected through Town clean-up efforts to enhance natural climate solutions. Leverage the consulting grant by the National Renewable Energy Laboratory (“NREL”) at the Department of Energy awarded to Avon in 2024 and collaborate with the Climate Action Collaborative (“CAC”) to explore pyrolysis for woody materials and biosolids. The pilot program design is expected to be presentable in late 2025. As of end of Q1, NREL is still working on the final report on pyrolysis in Eagle County, which would inform Avon’s biochar pilot program design. 14. Single Use Plastic Ban: Research single use plastic bans in peer communities and present options for a single use plastic ban in Avon for Council consideration, including community outreach, education and implementation plan. Initial research is in progress for this goal. 15. PV & Battery Design for Swift Gulch Campus: We are planning a comprehensive PV & Battery design of the entire Swift Gulch campus, which includes three buildings—ARTF, Fleet, and the new Garage. The goal is to maximize the use of PV solar and battery storage across the campus and help the campus manage the cost of electricity and become grid-independent in the face of emergencies. This study will involve collaboration with Active Energies, establishing agreements with Holy Cross Energy, and consulting with energy engineers and experts from CORE and REG Engineering. Construction of the all-electric Public Works Garage continues. Avon’s application to DOLA’s Energy/Mineral Impact Assistance Fund (EIAF) for this program was denied in March. Staff continues to explore other grant opportunities to support this program TOWN CLERK 16. Renaming Benchmark Reservoir: The lake located in the center of Harry A. Nottingham Park, in the center of Avon, has been known locally as Nottingham Lake since it was created in 1979. However, in 2018, it was brought to the attention of the Town of Avon and the United States Board on Geographic Names that on official documents, the lake is identified as Benchmark Lake Reservoir. The Town Clerk will work with the Colorado Geographic Naming Advisory Board to rename Benchmark Lake Reservoir as Nottingham Lake and will also work to rename Nottingham Reservoir to avoid confusion with Nottingham Lake. Staff have contacted Tim Mauck, Deputy Director of the Colorado Department of Natural Resources and Board Member of the Colorado Geographic Naming Advisory Board to begin the process of renaming Benchmark Reservoir. Staff is further researching the legal forms to complete the full application for this process, with guidance pending by Mr. Mauck. 17. Colorado Open Records Act Tracking Software: The Town Clerk’s Office received 35 Records Requests in 2022, 39 in 2023, and 39 in the first half of 2024 which indicates an increase in requests. Currently, the process to respond to petitioners of Colorado Open Records Act (“CORA”) requests is done manually. The Town Clerk will research tracking software to standardize the process of responding to CORA requests received, to better monitor and control the processes involved through the potential use of such software. Staff will collaborate with the Police Department’s Records Division to better understand how many Colorado Criminal Justice Records Act (CCJRA) requests they receive to better understand efficiencies that could exist between CORA and CCJRA requests. Staff requested an updated 2025 proposal for this software. The cost per CORA/CCJRA would 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 5 of 11 come to approximately $50 per request (factoring in 100 CCJRA and 50 CORA average the last two years). This expense is not included in the 2025 budget and to obtain a discount, would require a 2025 budget amendment, but could possibly be added for 2026 at a cost of approximately $76 per request (factoring in 100 CCJRA and 50 CORA average the last two years). Staff is further researching whether this software would help comply with HB21-1110. 18. Continued Research of Agenda Management Software and Workflow for Meeting Packet Preparations: The Town Clerk will continue research of the CivicClerk Agenda Management Software which safely manages agendas, generates minutes, and tallies votes by Councilors. Staff will look at the software with a new lens and assess if it would help with compliance of the HB21- 1110 Digital Accessibility requirements. Staff requested an updated 2025 proposal for this software. The cost per packet is now approximately $385, if we only factor in Council and would be much lower if you factor in, PZC, Citizen Committees and the DDA Board. This expense is not included in the 2025 budget and to obtain a discount, would require a 2025 budget amendment, but could possibly be added for 2026 at a cost of approximately $590, again if we only factor in Council but lowered when factoring in the software use for other citizen committees. Staff is further researching whether this software would help comply with HB21-1110. 19. Avon Liquor Code Amendment Limiting Temporary Displays and End Caps: The Town Clerk will seek to pass an Avon Liquor Code amendment to Chapter 5, Title 5.08 (Liquor Licenses) to limit the use of temporary displays and aisle endcaps at fermented malt beverage and wine retailer off- premises licensees, [retail liquor stores], and [liquor licensed drug stores]. The Community Development Department is working on code updates to Chapter 5. The Liquor Code is part of Chapter 5 and staff will try to combine efforts to present one code update for Council consideration & review. Targeted for Q2. FINANCE 1. Fiscal Analysis Update: In 2022 EPS prepared a study for the Town – a Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Cost of Ownership. The updated 2022 Study will continue to inform staff, elected officials, and interested residents on Avon’s revenue, tax and fee levels compared to other areas. Staff has reviewed the scope of the EPS report with the Finance Committee. We are discussing with EPS additional work to include the Village at Avon. 2. Review Town Financial Policies: Review and update all financial policies including the “procurement policy” for the Town. Staff will be working on the financial policies after the completion of the audit fieldwork. 3. “IF PASSES IN NOVEMBER” Implementation of the Use Tax on Construction Materials: Staff will work with Community Development on implementing a Use Tax and develop procedures and policies for Use Tax on Construction Material project audits. The Use Tax on Construction Materials has been implemented and we are currently collecting the Use Tax in 2025. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 6 of 11 INFORMATION TECHNOLOGY 1. Redundant Internet Service: Install SD-WAN appliance to combine the two existing internet service providers into a single, unified connection, to create redundant support for internet service and continuous internet service and connection if one internet service provider experiences service disruption. Selection of SDWAN provider Contract signed. Comcast ISP Contract signed. Search for a second provider project has begun. HUMAN RESOURCES 1. Enhance Education and Training Programs and Platforms for Employees: Assess department needs to define and offer education and training opportunities, some of which include topics addressing leadership, legal compliance, management, performance review process, conflict resolution, communication in the workplace, time management, and diversity, equity & inclusion. The HR Team is planning the 2025 spring retreat which will bring Dallas Everhart, 3e Leadership, to Avon to introduce the Emergenetics assessment and profile tool, which is a communications platform that creates a thinking profile for each participant. The training session will allow for conversations and discussion about “thinking preferences and behaviors“ and explore how to use this information in communicating with others. In addition, Sam Light, CIRSA, is proposed to provide training on “How to Interact with Difficult Citizens” in June. Additional training will occur with the Safety Committee addressing “incident investigation review and writing reports”. 2. Engage Human Resources Consultant to complete Pay Equity Analysis: Perform a Pay Equity Analysis in order to ensure compliance with the Equal Pay for Equal Work Act (EPWA). This item has been scheduled for implementation summer 2025. 2025 Department Goals Police 1. Security Cameras in the Town Core: Install twenty additional cameras in the Town Core and Harry A. Nottingham Park to enhance security, aid crime investigation, and deter assaults and vandalism. We have received five quotes: three for purchase and installation, and two for subscription services. Next steps involve coordinating with facilities and IT to select the best vendor solution. We aim to finalize a vendor by mid-May and then complete summer installation of the cameras and software system. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 7 of 11 2025 Department Goals Community Development 1. Community Housing Initiatives: Pursue all reasonable efforts to implement Community Housing, including but not limited to the following goals: a. Regional Housing Authority: Implement next steps in exploration of Regional Housing Authority. Once complete with the Regional Housing Needs Assessment work, Staff will initiate next steps to explore a Regional Housing Authority in Q2. b. Avondale Apartments Construction [Carryover from 2024] : Complete entitlements, construction drawings, and secure funding. The Village at Avon PUD Amendment is in draft form. Public hearings in Q2 are expected. c. Slopeside Apartments [Carryover from 2024]: Complete entitlements, and secure development team. Obtain grant(s) for construction if necessary. Property was rezoned in 2024. After a Request for Qualifications (RFQ) process, Ulysses Development Group was selected as the preferred project lead. A conceptual design contract is set for Town Council review. d. East Avon Preserve [Carryover from 2024]: Facilitate due diligence process for exploring a housing project accessed off Wagon Trail Road. Includes water tank planning. First reading of an Ordinance to Rezone the East Avon Preserve was approved in 2024. The second reading will be brought back to Town Council after consultation with Eagle County on the associated conservation easement requirements for the East Avon Preserve. e. Evaluate Avon Development Code for Housing [Carryover from 2024]: Review existing high density residential zoning and propose revisions which are more efficient and cost effective for development of housing, including density and building height; evaluate development review process to determine if expedited review process for Community Housing is viable. Amendments to the Development Code have been drafted and will run through the public hearing process in Q2. f. Revisit Inclusionary Zoning and Available SFEs [Carryover from 2024]: Explore potential policies that may allocate or prioritize a portion of the remaining available Single-Family Equivalent (SFE) water supply to Community Housing projects. Inclusionary housing strategies have been drafted, and may be included with the forthcoming Development Code Amendments. The Development Code amendments will run through the public hearing process in Q2. g. Update Mi Casa Avon Program: Update the program guidelines, including the maximum funding amounts for deed restriction purchases. No updates. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 8 of 11 h. Mobile Home Park Protections: Research mobile home park protection to preserve existing workforce housing in Avon and present research and potential options for action to Council. No updates. 2. Sun Road Redevelopment: Promote and facilitate redevelopment of the Sun Road Redevelopment area that includes Community Housing, retail and public services and a new regional transit hub. The Sun Road Redevelopment Plan was adopted by the Town Council. A Department of Local Affairs (DOLA) grant for conceptual design and fiscal analysis of the Sun Road Redevelopment was recently obtained. A Request for Proposals (RFP) for design and fiscal review will commence in Q2. 3. Water Allocation Management [Carryover from 2024]: Import all Single-Family Equivalent (SFE) water allocation data into Town of Avon Geographic Information System (GIS). Establish protocols for updates and ongoing internal management of data. Progress was made in Q1 to integrate SFE information with GIS Staff. The project has expanded to include other pertinent data layers that Community Development will manage. 4. Park Planning [Carryover from 2024]: Retain a consultant to conduct initial conceptual planning for all public park areas in Town. This was originally planned for only Village (at Avon) parks. No updates. 5. Main Street Pedestrian Mall Design: Support final planning and design of Mall extension across Lake Street, implementing phase of La Zona. Committee and Council review of conceptual design options was completed in Q1. The project moves to schematic design in Q2, with engagement of subconsultants, and exploration of grant opportunities. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 9 of 11 2025 Department Goals Recreation 1. Redevelop Department Standard Operating Procedures (S.O.P.): Create and/or modify standard operating procedures for each division of the Recreation Department. An up-to-date S.O.P. document for each division will ensure best/standard practices are being implemented and will promote consistency, safety, efficiency and communication throughout department operations. A draft S.O.P. document has been created for each division of the Recreation Department. Each division will update their operating procedures throughout the year and all information will be compiled into one master document by November 2025. 2. Research National Recreation and Park Association (NRPA) standards: Review industry best practices and compare to current processes. Research national accreditation program through the Commission for Accreditation for Parks and Recreation Agencies (CAPRA). Internal research was started through NRPA website. Recreation Administrative Staff will continue research effort by interviewing CAPRA accredited agencies. 3. Develop Annual Report for Recreation Department: Create an annual report to include an overview and analysis of our facilities, programs and services for the Recreation Department. Present year 2024 report to Town Council before the end of Q1. The 2024 annual report is scheduled to be presented at the April 22 Town Council meeting. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 10 of 11 2025 Department Goals Engineering 1. Monthly GIS Newsletter Program: The monthly GIS newsletter will be established to increase awareness of GIS capabilities and applications. It will also feature updates on current GIS projects and highlight how employees can leverage GIS to enhance their work. This initiative aims to boost GIS literacy, encourage collaboration, and generate new ideas for GIS applications within the town. Draft Newsletter is ready to be distributed for preliminary review. The first GIS newsletter is scheduled to be published June 1, 2025. 2. Asset Management Program: Many municipalities have an Asset Management sector. The newly positioned Asset Manager will develop and implement policy and strategy to collect, analyze, and report on data used to support complex risk-based decisions and make recommendations. Staff have been using PubWorks for the last two years and have concerns about the software shortcomings and its capabilities. Staff is researching alternate asset management software. 3. Update Pavement Management Program: The Town owns and manages 24 centerline miles of roadway. Pavement conditions of these roadways have been monitored with visual assessment and managed on an as-needed basis. For 2025, Engineering will perform a complete update of the road conditions assessment and develop a comprehensive management plan and schedule for budgeting overlay and repair of the roadway infrastructure. Staff is partnering with a pavement consultant to fully develop and evaluate all Town’s roadway and trail pavements. Pavement evaluation is scheduled for July 2025. Final report will support the 2026 budget. 4. Redesign of Avon Road Round-About One: Prepare and present ideas for redesign of Round- About One on Avon to Avon Planning and Zoning Commission and Council. Staff have solicited Request for Qualifications (RFQ) to perform the design work. The selection of a consultant should be completed by May 2025 and the design start is planned for June 2025. 5. Harry A. Nottingham Park Irrigation: Retain a consultant to design new irrigation system for HAN Park which incorporates water conservation goals. No Progress. 6. Eagle River Water Quality Improvements: Review the water quality assessment by Eagle River Coalition to determine the feasibility of water quality improvements in or near Avon and present options for water quality improvements to Council. Staff is working with our Water Resource Consultant for a feasibility assessment of the Town’s stormwater system for water quality recommendations. Assessment is planned for summer 2025 with a workplan to be completed to support the 2026 budget. 1st Quarter Update 2025 Department Goals January 2, 2025 - 1st Quarter Update Page 11 of 11 2025 Department Goals Public Works MOBILITY 1. Micro-Transit Pilot Program: Micro transit solutions are improving rider’s experience by offering small-scale, on-demand public transit services. Adding a micro transit (on demand) service to Avon’s current fixed routes and schedules will enhance our service and extend the reach of transit in town. Staff have secured a $40,000 planning grant for route expansion and will use it to plan this Pilot program. Staff will research private partners that offer a turnkey program. Mobility will seek grant opportunities to fund this project and expect to have it implemented by the beginning of the 2025-2026 ski season. Staff is still waiting for the contract on the $40,000 planning grant and has asked CDOT to expedite. Once signed, we will get an RFP out to find a suitable vendor. FACILITIES 2. Feminine Products/Changing Stations: Install feminine product dispensers and diaper changing stations in restrooms and locker rooms where feasible. COMPLETED. FLEET 3. Research “Renewable Diesel” opportunities for the Town of Avon: A presentation during the MT2030 Summit in Jackson sparked this research project for 2025. Began the early phases of research, contacted our local fuel supplier for information, as well as a few local entities about their interest and understanding. Once the ski season is over, Fleet will work further on researching this opportunity, and put together a report.