TC Minutes 08-28-2006MINUTES OF THE SPECIAL MEETING OF THE AVON TOWN COUNCIL
HELD AUGUST 28, 2006
A regular meeting of the Town of Avon, Colorado was held at the Avon Municipal Building, 400
Benchmark Road, Avon, Colorado in the Council Chambers. _
Mayor Ron Wolfe called the meeting to order at 1:30 PM. A roll call was taken and Council
members present were Debbie Buckley, Kristi Ferraro, Mac McDevitt, and Amy Phillips. Brian
Sipes & Tamra Nottingham Underwood were absent. Also present were Town Attorney John
Dunn, Town Manager Larry Brooks, Asst. Town Manager Jacquie Halburnt, Town Clerk Patty
Mc,Kenny, Town Engineer Norm Wood, and other Avon staff members.
APPROVAL OF AGENDA & DISCLOSURE OF POTENTIAL OF CONFLICT OF INTEREST
There was no conflict of interests related to the agenda item.
UNFINISHED BUSINESS
John Dunn, Town Attorney, presented the Stone Creek Elementary School topic, discussion on
the $250K restoration bond that is required per the lease agreement. He recited a number of
facts surrounding the situation at this time:
■ The Town & School entered into lease agreement dated July 1, 2006 and expires on
June 30, 2007
■ The School has borrowed over 1 M from Wells Fargo
• The amount of principal payments due & the monthly payments due to Wells Fargo
■ The Wells Fargo note is secured by a Commercial Security Agreement covering a
Nortex Modular Complex
■ Wells Fargo made the loan in part in reliance on the School's agreement with the State
of Colorado, which guarantees revenue sufficient to cover loan payments
The cost of the removal of the modular if $100,000 and the balance remaining is for site
restoration.
The item under consideration at this meeting is the lease requirement of a restoration bond in
the amount of $250,000 and the right-of-way permit that requires that the bond be provided to
the Town no later than last Friday (8/25/06), so at this time the ROW permit is expired and the
school is in default of the lease agreement. It was noted that formal notice of this default had
not yet occurred and was typically completed by staff. To date no insurance has been provided
by the "school: As well, no update has been provided outlining current enrollment at the school,
including the numbers of at risk students enrolled.
Bill Hammer, President, Stone Creek Elementary School Board, submitted the insurance
certificate for the property. He noted that the Board agreed to fully comply with'the $250K letter
of credit within the allotted curing timeframe. It was noted that engineering estimates have been
obtained regarding site restoration.
Council McDevitt raised the topic of whether or not another lease could be brought before
Council. He expressed his concern over that idea & asked that this lease never come :before
any council again. It was noted that there is no real way to prevent the parties from discussing
any extensions on this lease. Mr. Hammer noted that the "letter of credit" should-be delivered
within 48 hours, hopefully no later than Friday. Discussion ensued on the question of whether
or not to shut the construction site down. If the "LOC" is not at the Town offices, it would trigger
a stop construction at the site.
Suggestions were made as to how to proceed with the default on the lease & the default on the
ROW permit. It was suggested that the school be allowed to continue working through 5 PM on
Friday and to proceed with sending a default notice to the school per the lease agreement.
Mayor Wolfe moved to grant an extension on the ROW permit until the end of day on Friday but
that no asphalt or concrete be damaged; Councilor Ferraro seconded the motion and it passed
with a three to two vote (Buckley, McDevitt - nay; Wolfe, Ferraro, Phillips - aye; Sipes &
Underwood absent).
Mayor Wolfe commented on the newspaper quote made regarding "who" was responsible for
missing the deadline on the restoration bond; he asked that the school take full responsibility for
the effort & the project. Councilor Phillips asked again that the school board work towards
getting a new location, as she would not support an extension on the lease. Staff was asked to
perform a compliance check on the site immediately.
There being no further business to come before the Council, the regular meeting adjourned at 2
PM.
RESPECTFULLY SUBMITTED:
G
ttMc enny, wn lerk
APPROVED:
Debbie Buckley
Kristi Ferraro
Mac McDevitt
Amy Phillips
Brian Sipes
Tamra Underwood
Ron Wolfe
Regular Council Meeting
August 28, 2006
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