Loading...
TC Council Packet 01-08-2013TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, JANUARY 8, 2013 MEETING BEGINS AT 5:30 PM AVON TOWN HALL, ONE LAKE STREET PRESIDING OFFICIALS MAYOR RICH CARROLL MAYOR PRO TEM TODD GOULDING COUNCILORS DAVE DANTAS, CHRIS EVANS, JENNIE FANCHER ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF TOWN STAFF TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: VIRGINIA EGGER TOWN CLERK: PATTY MCKENNY ALL REGULAR MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME DURING PUBLIC COMMENT AND PUBLIC HEARINGS PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON TOWN HALL AND RECREATION CENTER, ALPINE BANK, AND AVON LIBRARY THE AVON TOWN COUNCIL MEETS ON THE SECOND AND FOURTH TUESDAYS OF EVERY MONTH 1) CALL TO ORDER AND ROLL CALL 2) APPROVAL OF AGENDA 3) PUBLIC COMMENT 4) WORK SESSION a) Review and Discussion of the Town of Avon Analysis of Water Rights, Future Water Use, and Related Water Issues Report - Presentation by Glenn Porzak, Water Counsel for the Upper Eagle River Water Authority/Water and Sanitation District and Linn Brooks, General Manager, Upper Eagle River Water and Sanitation District 5) ACTION ITEMS a) ORDINANCE i) First Reading of Ordinance No. 13-01 an Ordinance Accepting the West Avon and Village Parcels in the Eagle Valley Land Exchange; Granting Easements to Holy Cross Energy; Granting a Conservation Easement on the West Avon Parcel to Eagle Valley Land Trust; Approving an Intergovernmental Agreement with Eagle County; and Approving an Intergovernmental Agreement with Eagle County and Berry Creek Metropolitan District (Eric Heil, Town Attorney) b) CONSENT AGENDA i) Resolution No. 13-01, Series of 2013, Resolution approving the Locations for Posting the Notices of Public Meetings ii) Minutes from November 27, 2012 iii) Minutes from December 11, 2012 6) WORK SESSION - CONTINUED a) Village at Avon Settlement Implementation – Update (Eric Heil, Town Attorney) b) Official Conduct and Conduct of Meetings - Review and Discussion of Law regarding Meetings and the Conduct of Elected and Appointed Officials (Eric Heil, Town Attorney) c) Responsibilities in Reviewing and Acting on Land Use Applications: Process & Ex Parte Communication (Eric Heil, Town Attorney) d) Town Council and Mayor Retreat: Review Retreat Agenda (Rich Carroll, Mayor) e) Regional Committee Meeting Updates: Councilors and Mayor i) Confirm Council Committee Appointments ii) Eagle Air Alliance (Mayor Rich Carroll) iii) Upper Eagle Regional Water Authority Meeting (Councilor Todd Goulding) TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, JANUARY 8, 2013 MEETING BEGINS AT 5:30 PM AVON TOWN HALL, ONE LAKE STREET 7) MAYOR REPORT a) Future Agenda Items b) Obtain Council Feedback on New Council Meeting Agenda Format 8) ADJOURNMENT FUTURE COUNCIL AGENDA DATES & PROPOSED TOPICS: January 22nd: First Reading of Lot 61 Rezone Application and Development Agreement: Village at Avon Settlement Implementation Documents February 12th: Second Reading of Lot 61 Rezone Application and Development Agreement; MTRiPS Update, 2012 Special Events after Action Report UPPER EAGLE REGIONAL WATER AUTHORITY 846 Forest Road  Vail, Colorado 81657 (970) 476-7480  www.erwsd.org WATER OPERATIONS Arrowhead Metropolitan District  Town of Avon  Bachelor Gulch Metropolitan District Beaver Creek Metropolitan District  Berry Creek Metropolitan District Cordillera Metropolitan District  Eagle-Vail Metropolitan District  Edwards Metropolitan District M E M O R A N D U M TO: Honorable Mayor Carroll and Avon Town Council members FROM: Linn Brooks, Eagle River Water & Sanitation District General Manager Glenn Porzak, Upper Eagle Regional Water Authority Water Counsel DATE: January 8, 2013 SUBJECT: Upper Eagle Regional Water Authority Water Rights Analysis – Town of Avon Report __________________________________________________________________________________________ Summary of Water Rights Report: In early 2012, the Upper Eagle Regional Water Authority board directed water counsel to update the comprehensive water rights reports of the six member entities of the Authority. The previous water rights reports were nearly a decade old. The reports were completed in June 2012 by Porzak Browning and Bushong LLP and Helton & Williamsen, PC, the Authority’s water counsel and water resources engineer, respectively. Eagle River Water & Sanitation District General Manager Linn Brooks and UERWA Water Counsel Glenn Porzak have reviewed the individual reports with four of the six Authority member entities. Ms. Brooks and Mr. Porzak will highlight key points from the report prepared for the Town of Avon and how Avon’s water rights, which are permanently leased to the Authority, function together with the Authority water rights. The report sets forth the water demand of the Avon service area at projected build out in average and dry year conditions, and concludes that Avon’s water rights, together with the water rights independently developed by the Authority, are sufficient to meet Avon’s water demands at projected build out. Action Requested of Council: Read the “Analysis of Water Rights, Future Water Use, and Related Water Right Issues,” listen to the presentation, ask questions, and use the report to inform future planning efforts in Avon. Discussion/Background: The Upper Eagle Regional Water Authority is a local government formed in 1984 by intergovernmental contract to operate, maintain, and further develop the public water system that serves roughly EagleVail through Cordillera. The Authority, a quasi-municipal corporation and political subdivision of the State of Colorado, is organized pursuant to the Water Authority Act. The Authority consists of the Town of Avon, and the Arrowhead, Beaver Creek, Berry Creek, EagleVail, and Edwards metropolitan districts, and provides water service to properties within these service areas. It also provides water service by contract to the Bachelor Gulch and Cordillera metropolitan districts. The Authority is managed by a board consisting of an appointed representative of each of the six member entities. Operation and maintenance of the Authority water system is provided by the Eagle River Water & Sanitation District through an Operations Agreement. Avon’s membership in the Authority provides a number of benefits that will be discussed, such as: Operations of existing water storage facilities and administration and state reporting to meet the requirements of members’ water rights decrees; Investigation, planning, and negotiations related to the development of alternative water/storage sources to increase in-basin storage, and system flexibility and reliability; Water supply planning and new water rights acquisition; Water rights diligence and protection; Representation on the Eagle Park Reservoir Company board of directors; Use of Nottingham (“Benchmark”) Lake as a recreation, rather than an augmentation, facility; Use of Authority water rights, which effectively eliminates some of the constraints in the Avon augmentation plans; Flexibility in considering future development and changes in developments; and Optimization of use of water rights for the benefit of local stream flows. Attachment: Analysis of Water Rights, Future Water Use, and Related Water Right Issues – Town of Avon Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: ericheillaw@gmail.com e-mail: ericheillaw@yahoo.com TO: Honorable Mayor Carroll and Town Council Members CC: Virginia Egger, Town Manager THRU: Eric Heil, Town Attorney FROM: Meredith Van Horn, Assistant Town Attorney RE: Eagle Valley Land Exchange – Conservation Easement and IGAs DATE: January 2, 2013 Summary: This memorandum reviews Ordinance No. 13-01 and the various documents which the Town of Avon is required to approve to implement the Town’s part of the Eagle Valley Land Exchange. An Exchange Agreement was executed by State of Colorado, Board of Land Commissioners; the Upper Eagle River Water Authority; Eagle County; and the United States Forest on November 9, 2012. A copy of this Exchange Agreement is attached to this memorandum. The federal forty-five day period for appeal expired on December 24, 2012. Avon will receive the West Avon Parcel and the Village Parcel as a part of the Exchange. The following documents are discussed in this memorandum: 1. Ordinance No. 13-01 2. The United States Patents conveying the parcels to the Town; 3. The two Right-of-Way Easements to Holy Cross Energy (“Holy Cross”); 4. A Conservation Easement (the ”Conservation Easement”) to Eagle Valley Land Trust (“EVLT”) on the West Avon Parcel; 5. A Management Plan between EVLT and the Town; an intergovernmental agreement (“IGA”) between the Town and Eagle County to convey a future conservation easement to EVLT on the Village Parcel; and 6. An IGA between the Town, Eagle County, and Berry Creek Metropolitan District for the maintenance of the West Avon Parcel. Ordinance No. 13-01: Ordinance No. 13-01 is prepared to combine all the Town’s approvals related to the implementing the Exchange Agreement into one document. U.S. Patents: The West Avon and Village parcels will be conveyed to the Town thru U.S. Patents. Once the appeal period has closed on December 24 the Office of General Counsel for the Forest Service conducts a preliminary title review. Once the title review is complete, the Forest Service will request the patent for the land from the Bureau of Land Management and the closing will occur. At this time we do not have U.S. patents for the parcels. Closing should occur in late January or February. Easements to Holy Cross Energy: Holy Cross Energy currently has a Special Use Permit from the Forest Service for overhead transmission lines which cross the West Avon Parcel. As a part of the closing MEMORANDUM  H EIL L AW & PLANNING LLC Town Council and Planning and Zoning Commission Eagle Valley Land Exchange/Ordinance No. 13-01 January 2, 2013 Page 2 of 4 for the land exchange, the Town of Avon must grant replacement easements to Holy Cross for the overhead transmission lines and for access to those lines. The Right-of-Way Easement for the transmission lines are one hundred (100) feet in width and allow the installation of down-guys with anchors and additional poles and related facilities. Holy Cross also has the right to clear all trees and brush within the easement and the right to cut trees outside of the easement “which are tall enough to strike the wires in falling.” The Right-of-Way Easement for access facilities allows Holy Cross to use and maintain an existing road so that it may access the transmission lines. The Right-of- Way Easement does allow for upgrades, but clarifies that Town’s regulations, including 1041 regulations, would apply to any upgrade. Conservation Easement: The Conservation Easement preserves the West Avon Parcel in perpetuity as open space by conveying the development rights of the property to EVLT. Below is a brief outline of the notable provisions in the document. Permitted Actions of the Town under the Conservation Easement: Sub-sections 5.b. and 5.d. describes the improvements that the Town may build on the West Avon Parcel under the Easement. The items include trails, trailhead facilities and parking, sheds, restrooms, picnic tables, and trashcans. Sub- sections 6.b. and 6.c. allows the Town to perform wildfire mitigation such as brush clearing, controlled burns, and pruning trees and shrubs to control insects and disease. All of which must be done in compliance with the Management Plan. Costs Borne by the Town: EVLT is a non-profit and has a very limited budget, for this reason this and other conservation easements granted to EVLT contain provisions which shift costs to the grantor. Eagle County agreed to similar cost-shifting language in the Homestead L conservation easement. Below is a brief description of each of the cost-shifting provisions in the Easement. • The opening paragraph of Section 6 states that when there is a disagreement over certain resource management practices used on the property the Parties may consult with a resource management professional. The paragraph states, “Grantor shall pay the costs for such consultation, including any fees for the resource management professional, provided that Grantor is informed of the cost before the resource management professional is retained.” • Section 8.b. requires the Town to provide commercial general liability insurance at all times and include EVLT as an additional insured. • Section 9 outlines the enforcement provisions for violations of the Easement. The second paragraph in Section 9 states that Grantor shall pay any costs “incurred by Grantee in enforcing the terms of this Easement against Grantor” including any costs of legal dispute, including “reasonable attorney’s fees”. If EVLT is not the prevailing party in a legal proceeding then each party is responsible for its own fees. However, if EVLT acted in bad faith in bringing the legal action then the Town will not have to pay EVLT’s fees and EVLT will have to pay the Town’s fees and costs. These latter provisions are subject to the approval of the EVLT board of directors. • Section 32 discusses the procedure for dispute resolution using mediation. Section 32.e. contains language where the Town will pay the majority of costs of any mediation: “Grantor shall pay all of Town Council and Planning and Zoning Commission Eagle Valley Land Exchange/Ordinance No. 13-01 January 2, 2013 Page 3 of 4 Grantee’s expenses associated with the mediation, including attorneys’ fees and consultant fees, except that Grantor and Grantee shall share equally the costs of the mediator.” Value of the Conservation Easement: Section 12 of the Easement states that the Easement is a real property interest which is valued at thirty percent (30%) of the “full fair market value of the Property”. Per Section 13, if the Easement is terminated EVLT would be entitled to receive “proceeds equal to the Proceeds Percentage [30%] multiplied by the fair market value of the Property.” If all or a portion of the property is taken through eminent domain, under Section 14 EVLT would be entitled to receive “equal to the Proceeds Percentage [30%] multiplied by the total proceeds from such Condemnation.” Management Plan: The Management Plan for the West Avon Parcel provides guidance on the use and management of the property in the present and future. It discusses the maintenance or trails and other improvements, plans for development of trailheads and parking lots, recreation uses, maintenance of noxious weeds, wildlife management, and rules and regulations for the use of the property. There is a commitment for annual monitoring by EVLT to ensure that the Town is managing the property in accordance with the Management Plan. This document will be executed by both EVLT and the Town and pursuant to Section 4 of the Easement is reviewed annually and amended as needed. Any amendments must be approved by EVLT. IGA for Future Conservation Easement on Village Parcel: Under Section 1 of this IGA the Town agrees to grant a future conservation easement to EVLT, or other appropriate organization, on the portion of the Village Parcel that remains after the road to PA-I is built and after the determination of the boundaries of an area for construction of affordable housing. Section 3 calls for Eagle County and the Town to also execute a maintenance agreement for the Village Parcel. Section 4 states that the Town shall bear the responsibility for maintenance costs on the property, but that this expense is subject to annual appropriation. IGA for Maintenance of the West Avon Parcel: This IGA outlines the maintenance responsibilities of the Town. The Town is the sole entity responsible for the maintenance and associated costs, but these costs are subject to annual appropriation. As outlined in Section 1, Town maintenance responsibilities include: weed control, trash pickup, stocking of dog waste bags, snow removal and inspection, and general monitoring of the property. Per Section 5 the IGA’s original term is one (1) year with automatic renewal for additional one (1) year terms beginning on January 1 of each year. Requested Action by Council: Approval of Ordinance No. 13-01 on first reading. Proposed Motion: “I move to approve on first reading Ordinance No. 13-01 AN ORDINANCE ACCEPTING THE WEST AVON AND VILLAGE PARCELS IN THE EAGLE VALLEY LAND EXCHANGE; GRANTING EASEMENTS TO HOLY CROSS ENERGY; GRANTING A CONSERVATION EASEMENT ON THE WEST AVON PARCEL TO EAGLE VALLEY LAND TRUST; APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH EAGLE COUNTY; AND, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH EAGLE COUNTY AND BERRY CREEK METROPOLITAN DISTRICT.” Attachments: Town Council and Planning and Zoning Commission Eagle Valley Land Exchange/Ordinance No. 13-01 January 2, 2013 Page 4 of 4 Attachment 1: Ordinance No. 13-01, including the following Exhibits: A. U.S. Patent for West Avon Parcel (not prepared yet) B. U.S. Patent for Village Parcel (not prepared yet) C. Holy Cross Energy Right-of-Way Easement (for transmission line) D. Holy Cross Energy Right-of-Way Easement (for access) E. Deed of Conservation Easement F. Management Plan for West Avon Parcel G. IGA between County of Eagle and Town of Avon re: Village Parcel H. IGA between County of Eagle, Town of Avon and Berry Creek Metropolitan District re: Trail Maintenance Attachment 2: Executed Exchange Agreement Thanks, Meredith Ord. No. 13-01 Implementing Land Exchange Jan. 2, 2012 Page 1 of 5 TOWN OF AVON ORDINANCE NO. 13-01 SERIES OF 2013 AN ORDINANCE ACCEPTING THE WEST AVON AND VILLAGE PARCELS IN THE EAGLE VALLEY LAND EXCHANGE; GRANTING EASEMENTS TO HOLY CROSS ENERGY; GRANTING A CONSERVATION EASEMENT ON THE WEST AVON PARCEL TO EAGLE VALLEY LAND TRUST; APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH EAGLE COUNTY; AND, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH EAGLE COUNTY AND BERRY CREEK METROPOLITAN DISTRICT WHEREAS, the White River National Forest - Eagle/Holy Cross Ranger District initiated a multi-party land exchange involving Eagle County, the Colorado State Land Board, the Upper Eagle Regional Water Authority, and the United States Forest Service (“Land Exchange”); WHEREAS, the Town of Avon (“Town”) adopted its support of the multi-party land exchange and preservation of two parcels of United States Forest Service lands as open space by adopting Resolution No. 11-12 A RESOLUTION REPEALING RESOLUTION 11-09 AND APPROVING A NEW RESOLUTION BY THE AVON TOWN COUNCIL SUPPORTING A MULTI-PARTY LAND EXCHANGE LOCATED IN THE WHITE RIVER FOREST IN EAGLE COUNTY AND RECOMMENDING EXCEPTIONS TO THE CONSERVATION EASEMENTS ON THE WEST AVON PARCEL AND THE VILLAGE PARCEL and Resolution No. 12-14 A RESOLUTION SUPPORTING THE MULTI-PARTY LAND EXCHANGE LOCATED IN THE WHITE RIVER NATIONAL FOREST IN EAGLE COUNTY; WHEREAS, pursuant to the terms of the Land Exchange, the Town is to acquire two parcels of United States Forest Service lands, grant easements to Holy Cross Energy, grant a conservation easement to the Eagle Valley Land Trust (“EVLT”), and enter into several intergovernmental agreements with various parties as further described herein; WHEREAS and Section 2.1 of the Avon Home Rule Charter provides that the Town Council may acquire real property and grant interests in real property and Section 16.2 of the Avon Home Rule Charter authorizes the Town Council to approve intergovernmental agreements; WHEREAS, the Town is acquiring from the United States Forest Service the West Avon Parcel containing approximately 478.2 acres within the Town of Avon and the East Avon Parcel, containing approximately 85.99 acres in Eagle County; WHEREAS, the Town seeks to grant to Holy Cross Energy one Right-of-Way Easement for electric transmission lines and one Right-of-Way Easement for access to the lines (“Holy Cross Easements”) attached hereto as Exhibit C: Holy Cross Right-of-Way Easement and Exhibit D: Holy Cross Right-of-Way Easement; ATTACHMENT 1 Ord. No. 13-01 Implementing Land Exchange Jan. 2, 2012 Page 2 of 5 WHEREAS, the Town seeks to grant to the Eagle Valley Land Trust a conservation easement on the West Avon Parcel and to execute the conservation easement attached hereto as Exhibit E: Deed of Conservation Easement West Avon Parcel (“Conservation Easement”) and accompanying Management Plan attached hereto as Exhibit F: Management Plan (“Management Plan”); WHEREAS, § 38-30.5-101, et. seq., Colorado Revised Statutes, provides authority to grant conservation easements for the protection of open land, environmental quality and life-sustaining ecological diversity; WHEREAS, the Town Council finds that granting the Conservation Easement will promote Goals H.1 and I.1 of the Town of Avon Comprehensive Plan and will thereby promote the health, safety and general welfare of the Avon community; WHERAS, pursuant to §29-1-201 and §30-11-101, Colorado Revised Statutes, as amended, Article XIV, Section 18, of the Colorado Constitution, and Section 16.2 of Avon Home Rule Charter the Town may enter into intergovernmental agreements; WHEREAS, the Town seeks to execute an intergovernmental agreement with Eagle County, attached hereto as Exhibit G: Intergovernmental Agreement Between the County of Eagle and the Town of Avon; WHEREAS, the Town seeks to execute an intergovernmental agreement with Eagle County, attached hereto as Exhibit H: Intergovernmental Agreement Between the County of Eagle, the Town of Avon, and Berry Creek Metropolitan District Regarding Maintenance of West Avon Property and Related Trails; WHEREAS, the Town Council finds that all actions in this Ordinance are related to and necessary for the implementation of the Land Exchange and therefore all actions are confined to a single subject and this Ordinance is in compliance with Section 6.2 of the Avon Home Rule Charter; WHEREAS, a public hearing was conducted in accordance with Section 6.5(d) of the Avon Home Rule Charter on January 22, 2013 and the Town Council considered all comments prior to considering final adoption of this Ordinance; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance. NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF AVON HEREBY ORDAINS: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. ATTACHMENT 1 Ord. No. 13-01 Implementing Land Exchange Jan. 2, 2012 Page 3 of 5 Section 2. Acceptance of West Avon Parcel and Village Parcel. The Town Council hereby accepts the conveyance of the West Avon Parcel and the Village Parcel in the form of the United States Patent attached hereto as Exhibit A: United States Patent for the West Avon Parcel and Exhibit B: United States Patent for the Village Parcel. Section 3. Grant of Easements to Holy Cross Energy. The Town Council hereby approves the grant of Holy Cross Energy Right-of-Way Easement and the Holy Cross Energy Access Right-of-Way Easement attached hereto as Exhibit C: Holy Cross Energy Utility Right-of-Way Easement and as Exhibit D: Holy Cross Energy Access Right-of-Way Easement. Section 4. Grant of Conservation Easement. The Town Council hereby approves the grant of a conservation easement on the West Avon Parcel in the form attached hereto as Exhibit E: Deed of Conservation Easement West Avon Parcel. Section 5. Approval of Management Plan. The Town Council hereby approves the West Avon Open Space Management Plan in the form attached hereto as Exhibit F: Management Plan. Section 6. Approval of Intergovernmental Agreement with Eagle County. The Town Council hereby approves the intergovernmental agreement between Eagle County and the Town in the form attached hereto as Exhibit G: Intergovernmental Agreement Between the County of Eagle and the Town of Avon. Section 7. Approval of Intergovernmental Agreement with Eagle County and Berry Creek Metropolitan District. The Town Council hereby approves the intergovernmental agreement with Eagle County and Berry Creek Metropolitan District in the form attached hereto as Exhibit H: Intergovernmental Agreement Between the County of Eagle, the Town of Avon, and Berry Creek Metropolitan District Regarding Maintenance of West Avon Property and Related Trails. Section 8. Mayor and Town Clerk Authorized to Execute Documents. The Mayor and Town Clerk are authorized to execute documents related to all documents approved in this Ordinance and take such other actions as may be reasonably necessary to implement the actions in this Ordinance, including but not limited to designating the order of recording of such documents and executing other necessary and customary documents at closing which have been reviewed and approved by the Town Attorney. The Mayor, Town Clerk and Town Attorney may collectively review and approve the completion of documents, correction of typos, grammatical errors, cross-reference errors, and revisions which do not alter the substantive terms of any of the documents approved in this Ordinance. Section 9. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and ATTACHMENT 1 Ord. No. 13-01 Implementing Land Exchange Jan. 2, 2012 Page 4 of 5 each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 10. Effective Date. This Ordinance shall take effect thirty days after public notice following final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 11. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 12. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title in at least three public places within the Town and posting at the office of the Town Clerk, which notice shall contain a statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. [Signature page follows] ATTACHMENT 1 Ord. No. 13-01 Implementing Land Exchange Jan. 2, 2012 Page 5 of 5 INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED AND REFERRED TO PUBLIC HEARING and setting such public hearing for January 22, 2013 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado, on January 8, 2013. ____________________________ Rich Carroll, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Patty McKenny, Town Clerk Eric J. Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on January 22, 2013. ____________________________ Rich Carroll, Mayor Published by posting by title in at least three public places in Town and posting by title at the office of the Town Clerk. ATTEST: __________________________ Patty McKenny, Town Clerk ATTACHMENT 1 HOLY CROSS ENERGY RIGHT-OF-WAY EASEMENT KNOW ALL MEN BY THESE PRESENTS, that the undersigned, TOWN OF AVON (hereinafter called "Grantor"), for a good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby grant unto Holy Cross Energy, a Colorado corporation whose post office address is P.O. Drawer 2150, Glenwood Springs, Colorado (hereinafter called "Grantee") and to its successors and assigns, the right of ingress and egress across lands of Grantor, situate in the County of Eagle, State of Colorado, described as follows: A parcel of land situate in the W1/2 of Section 2 and the East1/4 of Section 3, Township 5 South, Range 82 West and the SE1/4 of the SE1/4 of Section 34, Township 4 South, Range 82 West, as more fully described in Book 331 at Page 978 as recorded in the records of the Eagle County Clerk and Recorder’s Office, Eagle, Colorado. And, to construct, reconstruct, upgrade (provided that any upgrade shall be subject to applicable regulations of The Town of Avon, including but not limited to 1041 regulations), operate, maintain and remove an electric transmission or distribution line or system, within the above mentioned lands, upon an easement described as follows: Two easements for existing transmission power lines as constructed in place. Each power line easement will be 100’ in width, extending 50’ in width on either side from center line of the existing lines as constructed.. The center line of each easement is shown on Exhibit A and attached hereto and made a part hereof by reference. The rights herein granted specifically allow Grantee to (1) install down guys with anchors within fifty (50) feet of any pole located on the above described easement, and, (2) install additional poles, down guys with anchors, overhead conductors and/or related facilities within the above described easement at any time in the future. And, in addition, Grantor hereby grants to Grantee, and to its successors and assigns, the right to clear all trees and brush, by machine work or otherwise, within said easement, and the further right to cut trees, even though outside of said easement, which are tall enough to strike the wires in falling. In areas where vegetation is disturbed due to Grantee’s use of the Easement, Grantee shall revegetate the disturbed areas using native vegetation. Grantor agrees that the surface of the ground will not be changed nor will any other alteration be made within the boundaries of the easement which would violate National Electrical Safety Code requirements for minimum clearance from the power line conductors. Grantor agrees that all poles, wire and other facilities installed by Grantee on the above described lands, shall remain the property of Grantee, and shall be removable at the option of Grantee. Grantor covenants, against all those claiming against Grantor, that it is the owner of the above described lands and that the said lands are free and clear of encumbrances and liens of whatsoever character, except those held by the following: All those of Record. TO HAVE AND TO HOLD, said right-of-way and easement, together with all and singular, the rights and privileges appertaining thereto, unto Grantee, its successors and assigns, forever. IN WITNESS WHEREOF, Grantor has caused these presents to be duly executed on this day of , 20 . The individual signing this Holy Cross Energy Right-of-Way Easement hereby represents that he/she has full power and authority to sign, execute, and deliver this instrument. TOWN OF AVON MAYOR 50-02 Town of Avon Land Swap 12/11/12 O’Neil/Town of Avon Land Swap vw Page 1 of 2 EXHIBIT C STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by as Mayor of the TOWN OF AVON. WITNESS my hand and official seal. My commission expires: Notary Public Address: 50-02 Town of Avon Land Swap 12/11/12 O’Neil/Town of Avon Land Swap vw Page 2 of 2 EXHIBIT C B e a v e r C reek Lookout Trail Beaver Creek Point Avon/Singletree Trail June Creek Trailhead Saddleridge Trailhead Beaver Creek Lookout Trailhead Avon/Singletree Trailhead on June Creek Road(signed "June Creek Trail") Avon/Singletree Trailhead on Nottingham Road Saddleridge Trail June Creek Trail Sa d d l e r i d g e T r a i l Jun e C r e e k Date: September 2012 DRAWN BY: D. Reeder PO Box 1245 Paonia, Colorado 81428 (970) 527-8445 Bing Maps Hybrid Aerial from ESRI Portion of Eagle County, Colorado, Mosaic Approximate Scale 1:11,220All Locations Approximate West Avon Parcel CE June Creek Intermittent stream Big game ramp Public trailhead "Fort" Survey monument Point High-voltage powerline Old road Forest system trail Social (bandit) trail Big game fence Dilapidated barbed wire fence 0 0.25 0.50.125 Mile EXHIBIT C HOLY CROSS ENERGY RIGHT-OF-WAY EASEMENT KNOW ALL MEN BY THESE PRESENTS, that the undersigned, TOWN OF AVON (hereinafter called "Grantor"), for a good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby grant unto Holy Cross Energy, a Colorado corporation whose post office address is P.O. Box 2150, Glenwood Springs, Colorado (hereinafter called "Grantee") and to its successors and assigns, the right of ingress and egress across lands of Grantor, situate in the County of Eagle, State of Colorado, described as follows: A parcel of land located in the S1/2 of section 8, township 5 South, Range 81 West (“Property”) Access is granted on a right-of-way easement across said land on an existing road as shown on Exhibit A, and attached hereto and made a part hereof by reference. And, in addition, Grantor does hereby grant to Grantee, and to its successors and assigns, the right to maintain the existing road as needed to access Grantee’s facilities. Grantor does agree that no alteration be made within the easement which would impede access to Grantee’s facilities. Grantor does covenant, against all those claiming under Grantor, that it is the owner of the above described lands and that the said lands are free and clear of encumbrances and liens of whatsoever character, except those held by the following: All those of Record. TO HAVE AND TO HOLD, said right-of-way easement, together with all and singular, the rights and privileges appertaining thereto, unto Grantee, its successors and assigns, forever. IN WITNESS WHEREOF, Grantor has caused these presents to be duly executed on this day of , 20 . The individual signing this Holy Cross Energy Right-of-way Easement hereby represents that he/she has full power and authority to sign, execute, and deliver this instrument. TOWN OF AVON MAYOR STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by as Mayor of the TOWN OF AVON. WITNESS my hand and official seal. My commission expires: Notary Public Address: EXHIBIT D EXHIBIT D Conservation Easement EVLT 12-6-12 mvh V6 Page 1 of 27 DEED OF CONSERVATION EASEMENT WEST AVON PARCEL THIS DEED OF CONSERVATION EASEMENT (“Deed”) is granted this _____ day of _______________, 2013, by TOWN OF AVON, a home rule municipal corporation of the State of Colorado, having its address at One Lake Street, P.O. Box 975, Avon, CO 81620, (“Grantor”), to EAGLE VALLEY LAND TRUST, a Colorado nonprofit corporation, whose address is P.O. Box 3016, Edwards, Colorado 81632 (“Grantee”) (Grantor and Grantee are individually referred to as “Party” and collectively referred to as the “Parties”). RECITALS: A. Description of Property. Grantor is the sole owner in fee simple of approximately 478.09 acres of real property located in Eagle County, Colorado, more particularly described in Exhibit A attached hereto and generally depicted on the map attached hereto as Exhibit B, both of which are incorporated herein by this reference (the “Property”). B. Qualified Organization. Grantee is a “qualified organization,” as defined in I.R.C. § 170(h) and a charitable organization exempt under I.R.C. § 501(c)(3), as required under C.R.S. § 38-30.5-104(2). Grantee is certified to hold conservation easements for which a state tax credit is claimed by the State of Colorado’s Division of Real Estate pursuant to C.R.S. § 12-61-720, and Rule A-1 of the Code of Colorado Regulations, Qualifications for Certification to Hold Conservation Easements (4 C.C.R. 725-4, Rule A-1). Grantee is also accredited by the Land Trust Accreditation Commission, a national accreditation program sponsored by the Land Trust Alliance. Grantee’s primary purpose is to preserve and protect the natural, scenic, agricultural, historical, and open space resources of Eagle County and surrounding areas, including the area in which the Property is located, by assisting landowners who wish to protect their land in perpetuity to preserve and conserve natural areas, environmentally significant land, and working landscapes for ecological, scenic, aesthetic, scientific, charitable and educational purposes. C. Conservation Purposes. According to I.R.C. § 170(h)(4)(A) and Treas. Regs. § 1.170A- 14(d), the conservation purposes of a qualified conservation contribution must include one or more of the following: (1) to preserve land for outdoor recreation by or education of the general public; (2) to protect relatively natural habitat of fish, wildlife or plants; (3) to preserve open space; and (4) to preserve historically important land or structures. The conservation purposes set forth in this Recital C and referred to hereafter in this Deed are collectively referred to as the “Conservation Values.” The Conservation Values of the Property are as follows: 1. Relatively Natural Habitat [Treas. Regs. § 1.170A-14(d)(3)]. The Property features Any time the Property is transferred by Grantor to any third party, Grantor shall pay a transfer fee of $500 to Grantee and notify Grantee pursuant to the requirements of Section 11 of this Deed. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 2 of 27 sagebrush shrublands and shrubsteppe, pinyon-juniper woodlands, small aspen stands, and montane riparian areas at an average elevation of 7,800 feet in the Eagle River watershed. June Creek, a perennial stream, flows through the northwest part of the Property, and an unnamed seasonal stream crosses through the west-central part of the Property. The Property provides food, shelter, breeding ground, and migration corridors for a variety of wildlife species, including migratory songbirds, raptors, small mammals, and big game. The Property provides summer and winter range for mule deer and elk, overall range for mountain lion, and lies within a summer concentration area for black bear. The habitat on the Property is significant because it is habitat or potential habitat for a number of significant species including, winter range and winter foraging range for the bald eagle (State Species of Concern), wintering habitat for the greater sage grouse (Candidate for listing under the U.S. Endangered Species Act), suitable breeding habitat for the northern leopard frog (State Species of Concern) and the presence of the Harrington penstemon is documented on the Property (a rare endemic plant recognized by the Colorado Natural Heritage Program as vulnerable). 2. Open Space [Treas. Regs. § 1.170A-14(d)(4)]. The Property qualifies as open space because it is being preserved for the scenic enjoyment of the general public, pursuant to clearly delineated federal, state or local governmental conservation policies (set forth in Recitals D and E below), and the Property’s preservation will yield a significant public benefit. (i) Scenic enjoyment. The Property features a mosaic of natural vegetation communities across dramatic topography which adds to the scenic character of the local rural landscape in which it lies, contains a harmonious variety of shapes and textures, and provides a degree of openness, contrast and variety to the overall landscape. A large portion of the Property is visible to the general public traveling along Interstate 70 which is open to and actively utilized by residents of Eagle County and the State of Colorado and visitors from across the United States and around the world. The Property is also visible from U.S. Highway 6, Metcalf Road, Nottingham Road, and many other public roads around Eagle Valley, all of which are open to and actively utilized by residents of and visitors to the Town of Avon, Eagle County and the State of Colorado. (ii) Significant public benefit. There is a foreseeable trend of intense development in the vicinity of the Property in the near future, including but not limited to the Town of Avon, Eagle-Vail, Edwards and Singletree. There is a strong likelihood that development of the Property would lead to or contribute to degradation of the scenic and natural character of the area, additional congestion, and loss of open space which serves as a community separator. Preservation of the Property will continue to provide an opportunity for the general public to appreciate its scenic values. It should also be noted that the terms of the Easement do not permit a degree of intrusion or future development that would interfere with the essential scenic quality of the land. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 3 of 27 3. Recreation or Education [Treas. Regs. § 1.170A-14(d)(2)]. The Property is intended to be used for passive public recreation and education including, but not limited to, public trails and a parking area. The Property includes a trail system which is interconnected with the surrounding area. These Conservation Values are of great importance to Grantor, Grantee, the residents of Eagle County, and the State of Colorado. It should also be noted that the terms of the Easement do not permit a degree of intrusion or future development that would interfere with the Conservation Values. D. State Policy Concerning Conservation Easements. 1. C.R.S . § 33-1-101 provides in relevant part that "it is the policy of the state of Colorado that the wildlife and their environment are to be protected, preserved, enhanced, and managed for the use, benefit, and enjoyment of the people of this state and its visitors." 2. C.R.S. § 35-3.5-101 states, in part, that "it is the declared policy of the state of Colorado to conserve, protect, and encourage the development and improvement of its agricultural land for the production of food and other agricultural products." 3. C.R.S. § 38-30.5-102 provides for the creation of conservation easements to maintain land "in a natural, scenic, or open condition, or for wildlife habitat, or for agricultural, horticultural, wetlands, recreational, forest or other use or condition consistent with the protection of open land, environmental quality or life sustaining ecological diversity ... " 4. The voters of the State of Colorado by adoption of Article XXVII to the Constitution of the State of Colorado, the legislature of the State of Colorado by adoption of enabling legislation, and the State Board of the Great Outdoors Colorado Trust Fund, by adopting and administering competitive grants application and rigorous due diligence review processes, have established that it is the policy of the State of Colorado and its people to preserve, protect, enhance and manage the state's wildlife, park, river, trail and open space heritage, to protect critical wildlife habitats through the acquisition of lands, leases or easements, and to acquire and manage unique open space and natural areas of statewide significance. 5. The Colorado Department of Transportation statutes (C.R.S. § 43-1-401, et seq.) provide that the "preservation and enhancement of the natural and scenic beauty of this state" are of substantial state interest. 6. The Western Governors' Association Policy Resolution 08-21 supports "voluntary incentive-based methods for preserving open space, maintaining land and water for agricultural and timber production, wildlife and other values. E. Other Supporting Government Policy. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 4 of 27 1. Town of Avon Comprehensive Plan Goal H.1 states that it is the goal of the Town to: “Protect Avon’s unique natural setting and its open spaces.” 2. Town of Avon Comprehensive Plan Policy H.1.2 provides that it is Town policy to: “Acquire or otherwise permanently protect important/significant open space.” 3. Town of Avon Comprehensive Plan Goal I.1 states that it is the goal of the Town to: “Provide an exceptional system of parks, trails, and recreational programs to serve the year-round leisure needs of area residents and visitors.” 4. Town of Avon Comprehensive Plan Policy I.1.2 provides that it is Town policy to: “Acquire parcels or easements for open space, trails, and recreation.” 5. Town of Avon Comprehensive Plan Policy I.1.5 provides that it is Town policy to: “Coordinate with Eagle County and other government and non-profit agencies in planning, protecting, and managing public open space…” 6. Eagle County Resolution No. 02-123 provides for the creation of an open space mill levy for the purpose of acquiring, maintaining, or permanently preserving open space to preserve wildlife habitat, protect working farms and ranches, conserve scenic landscapes and vistas, protect wetlands and floodplains, or provide public access points to rivers and streams. 7. The Eagle County Comprehensive Plan, Policy 3.7.3.d, states that: “Development in areas critical to the continued well being of Eagle County’s wildlife populations should not be allowed.” 8. The Eagle County Comprehensive Plan, Policy 3.7.2.a, states that: “The integrity, quality and interconnected nature of critical wildlife habitat in Eagle County should be preserved.” F. Documentation of Present Conditions. Pursuant to Treas. Regs. § 1.170A-14(g)(5) and in order to document the condition of the Property as of the date of this Deed, a report has been prepared by Rare Earth Science and dated October 3, 2012 (“Baseline Report”). The Baseline Report contains a natural resources inventory and also documents the Conservation Values and the characteristics, current use, and status of improvements on and development of the Property. The Baseline Report is acknowledged by Grantor and Grantee as an accurate representation of the Property at the time of the transfer. The Baseline Report has been provided to both Parties and will be used by Grantee to assure that any future changes in the use of the Property will be consistent with the terms of the Easement (defined below). However, the Baseline Report is not intended to preclude the use of other evidence to establish the condition of the Property as of the date of this Deed. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 5 of 27 G. Grantor further intends, as owner of the Property, to convey to Grantee the right to preserve and protect the Conservation Values in perpetuity. H. Grantee agrees by accepting this Easement (defined below) to preserve and protect in perpetuity the Conservation Values for the benefit of this and future generations. NOW, THEREFORE, in consideration of the recitals set forth above, incorporated herein by reference, and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to the laws of the State of Colorado, Grantor hereby voluntarily grants and conveys to Grantee and Grantee voluntarily accepts, a perpetual conservation easement in gross over the Property (“Easement”), an immediately vested interest in real property defined by C.R.S. § 38- 30.5-101 et seq., of the nature and character and to the extent hereinafter set forth for the purpose of preserving and protecting the Conservation Values in perpetuity, subject to and without affecting, any currently existing easements of record (“Existing Third Party Easements”). 1. Purpose. The purpose of this Easement is to preserve and protect the Conservation Values in perpetuity in accordance with I.R.C. § 170(h), Treas. Regs. § 1.170A-14, and C.R.S. § 38-30.5-101, et seq. (“Purpose”). The Parties intend to permit acts on and uses of the Property that are consistent with the Purpose, and that are not expressly prohibited by this Easement and to restrict or prohibit acts on and uses of the Property that are not consistent with the Purpose. In this Easement, "consistent with the Purpose" shall mean acts on and uses of the Property that have a positive impact, neutral impact, or no impact on the Conservation Values as determined by Grantee in its discretion as a land trust accredited by the Land Trust Alliance and certified by the State of Colorado 's Division of Real Estate pursuant to C.R.S. § 12-61-720, and Rule A-I of the Code of Colorado Regulations, Qualifications for Certification to Hold Conservation Easements. (4 C.C.R. 725-4, Rule A-I), as amended. This Easement sets forth certain uses and activities that are expressly permitted and consistent with the Purpose, but subject to specified qualifications, conditions, and requirements of, and procedures for, prior notice to or approval of Grantee. 2. Rights of Grantee. To accomplish the Purpose of this Easement, the following rights are hereby conveyed to Grantee, its employees and its representatives. a. To preserve and protect the Conservation Values; b. To enter upon the Property at reasonable times to monitor Grantor’s compliance with, and, to enforce the terms of this Easement; provided that such entry shall be upon prior reasonable notice to Grantor, and Grantee shall not unreasonably interfere with Grantor’s use and quiet enjoyment of the Property; c. To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Easement, Grantee may require the restoration of such areas or features of the Property that are damaged by any inconsistent use, all as set forth more fully herein; d. To enforce the terms and provisions of this Easement; and EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 6 of 27 e. To place signs on the Property that identify the land as being protected by this Easement, the size, number, and location of which signs are subject to Grantor’s reasonable approval. Nothing in this Section shall preclude the right of Grantee to enforce the preservation and protection of the Conservation Values of the Property, or any other provision of this Easement. 3. Rights Retained by Grantor. Grantor retains the right to perform any act on or use of the Property that is not prohibited or restricted by this Easement, provided that such acts or uses are consistent with the Purpose. 4. Management Plan. Grantor and Grantee have prepared and mutually agreed to a land management plan (the “Management Plan” or the “Plan”) dated ______, 2012, a copy of which will be kept on file in the offices of Grantor and Grantee. The Property shall be operated and managed in accordance with the management issues addressed in the Management Plan or as otherwise set forth in this Easement. If Grantor intends to undertake any activities not expressly permitted by this Easement or addressed in a current Management Plan, Grantor shall not undertake such activities until Grantor has first prepared an amended Management Plan. Grantor and Grantee shall review the Management Plan annually at the time of Grantee's monitoring of the Property, and the Plan shall be amended if determined necessary by the Parties. Any amendment to the Management Plan shall be approved by Grantee in accordance with Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval). 5. Property Improvements. Improvements existing as of the date of this Deed are permitted. The installation, placement, or construction of any other improvement(s) is prohibited unless expressly permitted by this Section 5. a. Existing Improvements. At the time of the granting of this Deed, there are no existing improvements except for fences, trails, erosion control infrastructure and signage, which may be maintained, repaired and replaced in their current location. b. New Improvements. Grantor may place, install and construct the following new improvements within two (2) building envelopes (collectively, “Building Envelope”) each not to exceed two (2) acres in size to be designated by Grantor as part of the Management Plan: trailhead facilities and associated parking areas (including landscaping berms and landscaping), sheds, restroom facilities, and accessory uses and structures (“New Improvements”). Grantor will use reasonable efforts to seek advice, consultation, input and recommendations of Grantee in matters regarding the location, construction, replacement or enlargement of the foregoing New Improvements. Grantee’s comments will be incorporated to the extent reasonably practicable as determined by Grantor. In addition to the foregoing New Improvements, Grantor may also place, install and construct other similar improvements within the Building Envelope if approved by Grantee pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 7 of 27 c. Construction of Buildings and Other Structures. At the time of construction of any New Improvements, Grantor shall notify Grantee in accordance with Section 17 (Grantor’s Notice) of this Easement. Once constructed, Grantor may maintain, repair, replace and enlarge New Improvements within the Building Envelope. d. Improvements Outside Building Envelope. Grantor may construct or place anywhere on the Property unenclosed minor recreational improvements, including but not limited to: picnic tables, unenclosed shelters, seating areas, interpretive and directional signs, information kiosks, and wildlife resistant trash containers (“Minor Improvements”), all to be constructed in accordance with the Management Plan. Prior to the construction or placement of any such Minor Improvements, Grantor shall notify Grantee in accordance with Section 17 (Grantor’s Notice) of this Easement. In addition to the foregoing Minor Improvements, Grantor may also place, install and construct other similar improvements outside the Building Envelope if approved by Grantee pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. e. Residential, Recreational, and Commercial Improvements. Under no circumstances shall any new residential structures be constructed on the Property. Under no circumstances shall any new recreational building, structure or improvement be built on the Property, including but not limited to, athletic fields, golf courses or ranges, race tracks, airstrips, helicopter pads, or shooting ranges, except as specifically reserved in this Section 5. Under no circumstances shall any new commercial buildings, structures, or improvements be built on the Property. f. Agricultural Improvements. Except as provided in Section 6.a. below, no agricultural improvements may be constructed anywhere on the Property. g. Road Construction and Paving. For purposes of this Section, “Roads” shall mean any permanent road that is graded, improved or maintained, including any seasonal unimproved roads. Grantor shall not construct or establish new Roads unless approved by Grantee pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. Grantor shall not pave or otherwise surface any Road without Grantee’s approval pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement, except as set forth in the Management Plan. h. Fences. Grantor may repair, replace, move, or remove existing fences and gates, and construct new fences in accordance with the Management Plan. Grantor may install gates at various locations in new or existing fences. i. Utility Improvements. With the exception of Existing Third Party Easements, which shall be governed by the terms of those Existing Third-Party Easements, and Grantor’s existing utility improvements, if any, including but not limited to: (i) transformers and power lines; and (ii) telephone lines (“Utility Improvements”), may be repaired or replaced with an improvement of similar size and type at their current locations on the Property without further permission of Grantee. The construction of renewable energy generating systems including, but not limited to, wind, solar, geothermal or hydroelectric EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 8 of 27 (also, “Utility Improvements”), is permitted provided that such activity: (i) is solely for uses permitted on the Property; (ii) is consistent with the Purpose; and (iii) is approved by Grantee in accordance with Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. Grantor may install Utility Improvements needed to serve permitted improvements and uses within the Building Envelope in accordance with the Management Plan. Except as provided in the foregoing sentences, Grantor shall not install, place, construct, or enlarge any other new Utility Improvements without Grantee’s approval pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. Following the repair, replacement, enlargement or construction of any Utility Improvements by Grantor, Grantor shall promptly restore and re-vegetate any disturbed area to a condition consistent with the Purpose. Any easement, right of way or other interest granted to a third party by Grantor or otherwise reserved by Grantor, to be used for Utility Improvements is subject to Section 7.i. j. Signs. Grantor may place and maintain signs on the Property identifying the Existing Trails (defined below) and New Trails (defined below) and trailheads and public use of such trails, provided that no individual sign exceeds twelve (12) square feet. k. Recreational Trails. Use of the Property for the recreational purposes set forth in Section 6.d. of this Easement is limited to the existing trails depicted on Exhibit B (“Existing Trails”) or on new trails approved as part of the Management Plan or otherwise approved by Grantee pursuant to Section 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement (“New Trails”). The Management Plan shall set forth general guidelines for the use and maintenance of the Existing Trails and any New Trails. The surface of the Existing Trails and any New Trails shall be dirt, gravel, rock, or other natural surface and the width of any Existing Trails or New Trails shall not exceed six (6) feet unless the surface, width or other characteristic of the trail is stated in the Management Plan, in which case the Management Plan shall control. Grantor reserves the right to make improvements to Existing Trails or New Trails as may be required under the law to comply with the Americans with Disabilities Act (“ADA”) in accordance with the Management Plan. l. Motor Vehicles. Grantor, and any other entity Grantor authorizes, or those with Existing Third Party Easements, which easements or statutory or common law rights allow the use of motorized vehicles, may use motorized vehicles, including without limitation all-terrain vehicles and ranching, agricultural, equipment and construction vehicles on the Property, provided that such vehicles shall be used only for construction and property management purposes, including but not limited to, maintenance of trails, drainage facilities, water facilities, wildlife ponds, and weed control. Notwithstanding the foregoing, Grantor shall have the right to permit motorized access on the Existing Trails or on any New Trails in order to comply with the ADA. Any portion of the Property disturbed due to the use of motor vehicles shall be restored to a condition as close to its original condition as reasonably practicable. Disturbances by Existing Third Party Easement holders shall be governed by the terms of the Existing Third Party Easements or statutory or common law rights and obligations; provided, however that EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 9 of 27 Grantor shall not enter into an agreement permitting Existing Third Party Easement holders to disturb the Property without requiring restoration of the Property to a condition as close to its original condition as reasonably practicable. Off road vehicle courses for snowmobiles, all-terrain vehicles, motorcycles, or other motorized vehicles are prohibited. 6. Resource Management. Grantor recognizes the importance of good resource management and stewardship to preserve and protect the Conservation Values. To this end, Grantor shall conduct the following uses of the Property in accordance with the provisions below. If Grantee believes any resource management practice(s) are not consistent with the Purpose, Grantee, in addition to all of its rights under this Easement, may request that the Parties consult with a mutually agreed upon resource management professional. This professional will provide written recommendations for said resource management practice(s) and Grantor shall follow the resource management professional's reasonable recommendations, only after Grantor and Grantee have jointly determined that said recommendations are consistent with the Purpose. Grantor shall pay the costs for such consultation, including any fees for the resource management professional, provided that Grantor is informed of the cost before the resource management professional is retained. a. Agriculture. All agricultural uses, if any, shall be conducted using stewardship and management methods that preserve the natural resources upon which agriculture is based. Long-term stewardship and management goals include preserving soil productivity, maintaining natural stream channels, prevent soil erosion, minimizing invasive species, and avoiding unsustainable livestock grazing practices. Grantor may construct and maintain agricultural ditches, stock ponds, wells or other agricultural water features. Notwithstanding the foregoing, agricultural uses shall not interfere with public access on the Existing Trails or New Trails or other public access permitted by the Management Plan. b. Relatively Natural Habitat. Grantor may conduct major habitat management activities such as removing tamarisk, chaining juniper or sagebrush, and conducting controlled burns in accordance with the Management Plan. c. Timber. On a limited and localized basis, Grantor may cut or prune trees, shrubs and other vegetation on the Property to control insects and disease, to control invasive non- native species, to prevent personal injury and property damage, and for domestic uses on the Property such as firewood and construction of permitted Improvements. Grantor may thin trees and other vegetation to mitigate forest fires, and to maintain a healthy ecosystem on the Property in accordance with the Management Plan. Commercial logging is prohibited. Large-scale alteration or removal of native trees, shrubs and other vegetation from the Property may only occur upon agreement of the Parties. d. Minerals and Other Deposits. Grantor’s current and future ownership of Minerals (defined below) shall be subject to the provisions of this Section 6.d. Grantor shall not transfer, lease or otherwise separate any mineral rights, currently owned or later acquired, EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 10 of 27 from the surface of the Property, or enter into any surface use agreement or other agreement related to the mineral rights, without the prior approval of Grantee in accordance with Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. Grantor shall not permit any filling, excavating, dredging, mining, drilling, development, exploration for or extraction or removal of any minerals, including but not limited to, hard rock minerals, coal, oil and gas, uranium, soils, sand, gravel, rock or other common building and landscaping materials on, under, or in the Property, or otherwise associated with the Property by any mining method; provided, however, that Grantor may permit drilling under the Property for exploration or production of oil, gas or other hydrocarbons utilizing horizontal drilling techniques from one or more drilling sites located off the Property subject to a no-surface occupancy restriction on the Property and a covenant to protect the subjacent and lateral support of the Property. d. Recreation. Grantor may undertake, or permit members of the public to undertake passive, non-motorized recreation on the Property, including, but not limited to, wildlife watching, hiking, biking, equestrian, and cross-country skiing, provided they are undertaken in accordance with the Management Plan. Notwithstanding the foregoing, Grantor may allow motorized access in accordance with Section 5.l of this Easement. e. Weeds. The Parties recognize the potential negative impact of noxious weeds and invasive plant species on the Conservation Values. Grantor shall manage noxious weeds and invasive plant species in accordance with the Management Plan. Grantee has no responsibility for the management of noxious weeds and invasive plant species. f. Water Rights Included. The Property includes any and all water and water rights, if any, which were conveyed with the Property to Grantor and beneficially used on the Property, including surface water rights and groundwater rights, whether tributary, nontributary or not-nontributary, decreed or undecreed, and all ditches, head gates, springs, reservoirs, water allotments, water shares and stock certificates, contracts, units, wells, easements and rights of way associated therewith (“Water Rights”). The Parties agree that it is appropriate to include the Water Rights, if any, in this Easement pursuant to C.R.S. § 38-30.5-102. Grantor shall retain and reserve the right to use the Water Rights or that portion sufficient to maintain and improve the Conservation Values, and shall not transfer, encumber, lease, sell or otherwise separate the Water Rights from title to the Property. g. Special Events. Grantor also reserves the right to conduct special events on the Property, provided such special events are approved by Grantee as part of the Management Plan or are otherwise approved by Grantee pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement, and provided Grantor conducts such special events in a manner that minimizes damage to the Conservation Values and promptly and diligently re-vegetates any disturbed areas with native seed and/or vegetation. 7. Restricted Practices. a. Subdivision. Grantor and Grantee agree that the division, subdivision or de facto EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 11 of 27 subdivision of the Property, whether by legal or physical process, into two or more parcels of land or partial or separate interests (including, but not limited to, condominium interests or the partition of undivided interests) is prohibited. At all times the Property shall be owned and conveyed as a single parcel which shall be subject to the provisions of this Easement. b. Surface Disturbance. Except as otherwise permitted within this Easement, Grantor shall not alter the surface of the land, including without limitation, moving, excavating or removing soil, sand, gravel, rock, peat or sod, in a manner that is inconsistent with the Purpose. c. Existing Water Features. Except as permitted by this Easement, Grantor shall not alter, impair, modify or adversely change existing ponds, wetlands or stream channels in a manner that is inconsistent with the Purpose. d. Feed Lot. Grantor shall not establish or maintain a feed lot. For purposes of this Easement, “feed lot” means a permanently constructed confined area or facility which is used and maintained continuously and exclusively for purposes of warm-up or fattening large numbers of livestock for market. Nothing in this Section shall prevent Grantor from seasonally confining livestock into an area, corral or other facility for warm-up or feeding, or from leasing pasture for the grazing of livestock owned by others. e. Commercial or Industrial Activity. Grantor shall not conduct industrial uses of the Property. Grantor may conduct commercial uses on the Property with Grantee’s approval pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee’s Approval) of this Easement. f. Public Access. Public access shall be regulated by the Grantor in a manner consistent with the Management Plan. The Parties acknowledge that Grantor intends to permit access to the Property via the Existing Trails and any New Trails, in accordance with the Management Plan, for use by the general public for purposes permitted by this Easement. In the event of any closure of all or a portion of the Property to the general public, the Property is still subject to Existing Third Party Easements. g. Trash. The dumping or accumulation of any kind of trash or refuse on the Property, including but not limited to household trash and hazardous chemicals, is prohibited. Limited dumping or accumulation of other farm-related trash and refuse produced on the Property is permitted, provided that such dumping does not substantially diminish or impair the Conservation Values, and is confined within a total area less than one-quarter acre in size at any given time. This Section shall not be interpreted to prevent the storage of agricultural products and by-products on the Property in accordance with all applicable government laws and regulations. h. Hazardous Materials. Grantor may use agri-chemicals on the Property in accordance with all applicable federal, state or local laws. Otherwise, the treatment, permanent storage, disposal or release of hazardous materials on, from or under the Property is EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 12 of 27 prohibited. For the purpose of this Easement, hazardous materials shall mean any hazardous or toxic material or waste that is subject to any federal, state, or local law or regulation. Notwithstanding anything in this Easement to the contrary, this prohibition does not impose any liability on Grantee for hazardous materials, nor does it make Grantee an owner of the Property, nor does it permit or require Grantee to control any use of the Property that may result in the treatment, storage, disposal or release of hazardous materials within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (“CERCLA”). i. Easements, Rights of Way or Other Interests. The conveyance or modification of an easement, right of way, or other similar interest is prohibited without Grantee's approval pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee's Approval) of this Easement. j. Telecommunications Facilities. Grantor shall not erect, construct, install, relocate, or use a communication facility, telecommunication facility, network element, telecommunication equipment, or any other equipment or material on the Property that may be used for telecommunications or to provide telecommunication services (as such terms are defined in The Federal Telecommunications Act of 1996), without Grantee's approval pursuant to Sections 17 (Grantor’s Notice) and 18 (Grantee's Approval) of this Easement. 8. Responsibilities of Grantor and Grantee Not Affected. Other than as specified herein, this Easement is not intended to impose any legal or other responsibility on Grantee, or in any way to affect any existing rights or obligations of Grantor as owner of the Property. Additionally, unless otherwise specified below, nothing in this Easement shall require Grantor to take any action to restore the condition of the Property after any Act of God or other event over which Grantor had no control, provided, however, that Grantee shall have the right to bring an action at law or in equity for trespass or any other appropriate cause of action against any third party who violates the terms of the Easement. Grantor shall continue to be solely responsible and Grantee shall have no obligation for the upkeep and maintenance of the Property and Grantor understands that nothing in this Easement relieves Grantor of any obligation or restriction on the use of the Property imposed by law. Among other things, this shall apply to: a. Taxes. Grantor is a tax-exempt entity. However, if Grantor or the Property ever become subject to real or personal property taxes or assessments levied against the Property, (collectively “Taxes”), Grantor shall be solely responsible for payment of all taxes and assessments levied against the Property and shall furnish Grantee with satisfactory evidence of payment upon request. b. Liability. Grantee shall not be liable for injury or damages occurring on, or arising from, the Property unless due solely to the gross negligence or intentional act of the Grantee, its members, directors, officers, employees, agents, or contractors. Liability, if any, of the Grantor shall not exceed an amount equal to any limits set forth in the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq., now existing or as may hereafter be amended, nor confer any rights or benefits on any person or activity not a EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 13 of 27 Party to this Agreement. Grantor does not waive or intend to waive the limitations on liability which are provided to it under the Colorado Governmental Immunity Act. Grantor agrees to obtain and maintain at all times, commercial general liability insurance consistent with the limits set forth in the Governmental Immunity Act, naming Grantee as an additional insured. Grantor shall provide proof of such insurance prior to execution of this Easement and at any later time requested by Grantee. 9. Enforcement. If Grantee finds what it believes is a violation of this Easement, Grantee shall immediately notify Grantor in writing of the nature of the alleged violation. Upon receipt of this written notice, Grantor shall discontinue the activity that has caused the alleged violation and Grantor shall: (a) restore the Property to its condition prior to the violation in a accordance with a written restoration plan (“Restoration Plan”); (b) provide a written explanation to Grantee of the reason why the alleged violation should be permitted; or (c) when violations are caused by the public or third parties, Grantor shall provide Grantee with a written plan which discusses the nature of the alleged violation and enforcement options and alternatives (also, a “Restoration Plan”). If the condition described in clause (a) or (c) above occurs, the Restoration Plan shall be submitted to Grantee within twenty (20) calendar days after Grantor's receipt of the Notice of Violation, or within a longer time period if so specified by Grantee in the Notice of Violation or agreed to by Grantor and Grantee in writing. If applicable, the Restoration Plan shall be approved or disapproved by Grantee in writing within thirty (30) calendar days after its submittal. If Grantee fails to respond in writing within thirty (30) calendar days after Grantor's submittal to Grantee of a Restoration Plan, the Restoration Plan shall be deemed approved. Grantor shall begin restoring the Property, or taking steps to address violations by the public or third parties, in accordance with the Restoration Plan within ten (10) calendar days after it is approved or deemed approved by Grantee and diligently pursue such cure to completion in compliance with the terms of the approved Restoration Plan. If the condition described in (b) above occurs, both Parties agree to meet within thirty (30) calendar days or as soon as possible to resolve this difference. If a resolution of this difference cannot be achieved at the meeting, both Parties agree to meet with a mutually acceptable mediator to attempt to resolve the dispute in accordance with Section 32. When, in Grantee’s opinion, an ongoing or imminent violation could irreversibly diminish or impair the Conservation Values of the Property, Grantee may, at its discretion, take appropriate legal action. Should mediation fail to resolve the dispute or if more than 120 days has passed since Grantee’s receipt of the written notice of alleged violation, Grantee may, at its discretion, take appropriate legal action. If a court with jurisdiction determines that a violation is imminent, exists, or has occurred, Grantee may get an injunction to stop it, temporarily or permanently. A court may also issue an injunction to require Grantor to restore the Property to its condition prior to the violation. Grantee shall be entitled to recover damages including, without limitation, damages for the loss of scenic, aesthetic, recreational or environmental values. Grantee's remedies described in this Section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity, including the right to recover any damages for loss of Conservation Values. Grantor shall pay any costs incurred by Grantee in enforcing the terms of this Easement against Grantor, including, without limitation, costs and expenses of suit, and reasonable attorney’s fees and any costs of restoration necessitated by Grantor’s violation of the terms of this Easement. If EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 14 of 27 a court determines that Grantee is not the prevailing Party in any legal proceeding between the Parties, after a final order of such court and after all applicable periods of appeals of any such order, and any reconsiderations or remands related thereto, have expired, each Party shall pay their own costs. If a court determines that Grantee has acted in bad faith in seeking to enforce this Easement, after a final order of such court and after all applicable periods of appeals of any such order, and any reconsiderations or remands related thereto, have expired, Grantee shall pay Grantor’s costs and expenses of suit, and reasonable attorney’s fees. Enforcement of the terms of this Easement shall be at the discretion of Grantee, and the failure of Grantee to discover a violation or to take action shall not waive any of Grantee’s rights, claims or interests in pursuing any such action at a later date. 10. Transfer of Easement. Grantee shall have the right to transfer this Easement to any public agency or private non-profit organization that, at the time of transfer, is a "qualified organization" under I.R.C. §170(h), and under C.R.S. §§38-30.5-101, et seq., and only if the agency or the organization expressly agrees to abide by the terms of this Easement and to assume the responsibility imposed on Grantee by this Easement. Grantee shall obtain Eagle County’s and Grantor's consent (and Town of Avon's consent if the Town no longer owns the Property) to any such transfer in advance of any proposed transfers. The consent required of Eagle County and Grantor in the preceding sentence shall not be unreasonably withheld. If Grantee ever ceases to exist or no longer qualifies under federal or state law, a court with jurisdiction shall transfer this Easement to another qualified organization having similar purposes and that agrees to abide by the terms of this Easement and to assume the responsibility imposed on Grantee by this Easement. 11. Transfer of Property. Grantor shall incorporate by reference the terms and conditions of this Easement in any deed or other legal instrument by which it divests itself of any interest in all or a portion of the Property. The failure of Grantor to perform any act required by this Section shall not impair the validity of this Easement or limit its enforceability in any way. Any time the Property or a portion thereof is transferred by Grantor to any third party, Grantor shall pay a transfer fee of $500 to Grantee to be used for purposes consistent with Grantee's mission, except that such transfer fee shall not apply to any transfer by the original Grantor to a successor. Grantor shall notify Grantee and Eagle County (and Town of Avon if the Town no longer owns the Property) in writing within (5) business days after closing using the form in Exhibit C attached hereto and made a part of this Deed, and shall attach to the form a copy of the new ownership deed. Grantee reserves the right to record a notice of transfer fee in the official real property records of Eagle County, Colorado. Grantor shall provide Eagle County with written notice of any intention to transfer or convey the Property at least forty-five (45) days prior to the date proposed for such transfer or conveyance. 12. Real Property Interest. This Easement constitutes a real property interest immediately vested in Grantee. Grantor and Grantee agree that this property interest is thirty percent (30%) of the full fair market value of the Property (the “Proceeds Percentage”). Pursuant to Treasury Regulation §1.170A-14(g)(6)(ii), Grantor and Grantee further agree that this percentage shall remain constant. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 15 of 27 13. Termination of Easement. This Easement may only be terminated or extinguished by judicial proceedings by a court of competent jurisdiction. The total loss of all the Conservation Values on the Property is the only grounds under which this Easement can be terminated. If this Easement is extinguished or terminated, whether in whole or in part, Grantee shall be paid proceeds equal to the Proceeds Percentage multiplied by the fair market value of the Property. Grantee’s use of the proceeds shall be in a manner consistent with its conservation purpose and in compliance with Treas. Regs. § 1.170A-14(g)(6)(i). 14. Eminent Domain. Grantor shall notify Grantee immediately of any communication or notice received concerning any proposed taking under the power of eminent domain by public, corporate, quasi-governmental or other authority, or acquisition by such authority through purchase in lieu of the exercise of eminent domain (“Condemnation”) affecting the Property, and Grantee shall have the right to participate in any proceedings as a real property interest holder. Grantee may pursue any remedies in law or equity, including opposition to the Condemnation of the Property. If all or any part of the Property is taken by Condemnation, Grantee shall receive proceeds directly from the authority for any such Condemnation equal to the Proceeds Percentage multiplied by the total proceeds from such Condemnation. 15. Perpetual Duration. This Easement shall be a servitude running with the land in perpetuity. Every provision of this Easement that applies to Grantor or Grantee shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear; provided, however, that either Party's rights and obligations under this Easement shall terminate (as to such Party, but not as to such Party's successor, who shall be bound as provided herein) upon a transfer of such Party's entire interest in this Easement or the Property, except that liability of such transferring Party for acts or omissions occurring prior to such transfer shall survive the transfer. 16. Change of Circumstance. Grantor has considered that acts or uses restricted or prohibited by this Easement may become more economically valuable than the permitted uses and acts. It is the intent of both Grantor and Grantee that such circumstances shall not justify the termination or extinguishment of this Easement pursuant to Section 14. In addition, the inability to carry on any or all of the permitted uses, or the unprofitability of doing so, shall not impair the validity of this Easement or be considered grounds for its termination or extinguishment pursuant to Section 14. 17. Grantor’s Notice. Where Grantor’s notice is required in this Easement, Grantor shall notify Grantee in writing not less than thirty (30) calendar days prior to the date Grantor intends to undertake the activity in question. The written notice shall describe the proposed activity in sufficient detail (i.e. location, size, scope, design, nature) to allow Grantee to evaluate the consistency of the proposed activity with the pertinent terms of this Easement. 18. Grantee’s Approval. Where Grantee’s approval is required in this Easement, Grantee shall grant or withhold its approval in writing within thirty (30) calendar days of receipt of Grantor’s written notice thereof which must comply with Section 17. As part of its determination, Grantee shall consider the proposed manner in which the proposed activity will be EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 16 of 27 conducted, whether it complies with the terms of this Easement, and the likely impact on the Conservation Values. Grantee’s approval may be withheld only if Grantee reasonably determines that there is a significant risk that the activity as proposed is not consistent with the Purpose. Grantee may condition its approval on Grantor’s acceptance of modifications, which Grantee reasonably determines makes the proposed activity consistent with the Purpose. Grantee may request additional information from Grantor during the thirty (30) day period, and Grantee shall then have an additional thirty (30) days from the receipt of such additional information to approve or deny Grantor’s request in writing. If Grantee does not respond to Grantor's written request within thirty (30) calendar days of receipt, the request shall be deemed denied, provided however, that if after expiration of the 30-day period, Grantor submits a second written request, and Grantee does not respond within thirty (30) calendar days of receipt of Grantor’s second request, Grantor’s request shall be deemed approved. Grantor shall not engage in the proposed act or use until Grantor receives Grantee’s approval in writing (or unless Grantee fails to respond within thirty (30) calendar days after receipt of Grantor’s second request). If Grantor disagrees with the decision of Grantee, Grantor may appeal the decision through the mediation process set forth in Section 32. 19. Notices. Any notice, demand, request, consent, approval, or communication that either Party is required to give to the other in writing shall be either (i) served personally, (ii) sent by certified first class mail, postage prepaid, (iii) sent via overnight delivery service that provides proof of delivery, or (iv) sent via any other delivery service mutually agreed to by the Parties in writing, to the following addresses, which addresses may change from time to time by a Party giving written notice in the manner set forth above: Grantor: Town of Avon One Lake Street P.O. Box 975 Avon, CO 81620 Phone: 970-748-4000 Fax: 970-949-9139 Copy to: Eric J. Heil, Esq. Heil Law & Planning, LLC 2696 S. Colorado Blvd. Ste. 550 Denver, CO 80222 Phone: 303-975-6120 Fax: 720-836-3337 Grantee: Eagle Valley Land Trust P.O. Box 3016 Edwards, CO 81632 Phone: 970-748-7654 Fax: 970-949-1357 EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 17 of 27 Eagle County The Board of County Commissioners Eagle County P.O. Box 850 Eagle, Colorado 81631 Phone: 970-328-8605 Fax: 970-328-8629 Copy to: Eagle County Attorney P.O. Box 850 Eagle, Colorado 81631 Phone: 970-328-8685 Fax: 970-328-8699 20. Subsequent Liens on the Property. No provisions of this Easement shall be construed as impairing the ability of Grantor to use this Property as collateral for subsequent borrowing, provided that any mortgage or lien arising from such a borrowing shall be subordinate to this Easement. 21. No Merger. Unless the Parties expressly state that they intend a merger of estates or interests to occur, then no merger shall be deemed to have occurred hereunder or under any document executed in the future affecting this Easement. 22. Special Warranty. Grantor warrants title to the Property against all persons claiming by, through or under Grantor, subject only to the exceptions to title set forth on Exhibit D attached hereto and made a part of this Deed. 23. General Provisions. a. Severability. If any provision of this Easement, or the application thereof to any person or circumstance, is found to be invalid, the remainder of the provisions of this Easement, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected thereby. b. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. c. No Waiver or Estoppel. Forbearance by Grantee to exercise its rights under this Easement in the event of a violation of any term shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent violation of the same or any other term of this Easement or of any of Grantee's rights under this Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any violation by Grantor shall impair such right or remedy or be construed as a waiver. Grantor hereby waives any defense of laches, estoppel, or prescription, including the one year statute of limitations for commencing an action to enforce the terms of a building restriction or to compel the removal of any building or improvement because of the violation of the same under C.R.S. § 38-41-119, et seq. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 18 of 27 d. Controlling Law. The interpretation and performance of this Easement shall be governed by the laws of the State of Colorado. e. Counterparts. The Parties may execute this instrument in two or more counterparts which shall, in the aggregate, be signed by all Parties; each counterpart shall be deemed an original instrument as against any Party who has signed it; all counterparts, when taken together, shall constitute this instrument. f. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Easement shall be liberally construed in favor of the grant to effect the Purpose of this Easement and the policy and purpose of C.R.S. §38-30.5-101, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the Purpose of this Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. g. Amendment. If circumstances arise under which an amendment to or modification of this Deed would be appropriate, Grantor and Grantee are free to jointly amend this Deed; provided that no amendment shall be allowed that will confer a private benefit to Grantor or any other individual greater than the benefit to the general public (see Treas. Regs. §1.170A-14(h)(3)(i)) or result in private inurement for a Board member, staff or contract employee of Grantee (see Treas. Regs. §l.501(c)(3)-1(c)(2)), or affect the qualifications of this Easement under any applicable laws. Any amendment shall be consistent with Grantee's policies, must have a neutral or beneficial effect on the Property's Conservation Values, as determined by Grantee in its sole discretion, must be consistent with the Purpose, shall not affect the perpetual duration of the Easement, and shall be approved by Town of Avon (if Grantor is not Town of Avon). Grantor shall pay any and all of Grantee’s costs, including staff time and attorney fees, associated with any amendment proposed by Grantor. Any amendment must be in writing, signed by both Parties, and recorded in the official records of Eagle County, Colorado. h. Entire Agreement. This instrument sets forth the entire agreement of the Parties with respect to the Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. Joint Obligation. The obligations imposed upon the Grantor and Grantee of this Easement shall be joint and several in the event that more than one entity or individual holds either interest at any given time. 24. Development Rights. To fulfill the Purpose of this Easement, Grantor hereby conveys to Grantee all development rights deriving from, based upon or attributable to the Property in any way (“Grantee’s Development Rights”), except those expressly reserved by Grantor herein, and the Parties agree that Grantee’s Development Rights shall be held by Grantee in perpetuity in order to fulfill the Purpose of this Easement, and to ensure that such rights are forever released, terminated and extinguished as to Grantor, and may not be used on or transferred off of the Property to any other property or used for the purpose of calculating permissible lot yield of the Property or any other property. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 19 of 27 25. Recording. Grantee shall record this instrument in a timely fashion in the official records of each county in which the Property is situated, and may re-record it at any time as may be required to preserve its rights in this Easement. 26. No Third Party Beneficiaries or Enforcement. This Easement is entered into by and between Grantor and Grantee, and is solely for the benefit of Grantor and Grantee and their respective successors and assigns for the purposes set forth herein, and does not create rights or responsibilities in any third parties beyond Grantor and Grantee. 27. Environmental Attributes. Grantor hereby reserves all Environmental Attributes associated with the Property. “Environmental Attributes” shall mean any and all tax or other credits, benefits, renewable energy certificates, emissions reductions, offsets, and allowances (including but not limited to water, riparian, greenhouse gas, beneficial use, and renewable energy), generated from or attributable to the conservation, preservation and management of the Property in accordance with this Easement. Nothing in this Section 27 shall modify the restrictions imposed by this Easement or otherwise impair the preservation and protection of the Conservation Values. 28. Annual Appropriation. To the extent that any financial obligation of this Easement is subject to the multiple fiscal year obligations as set forth in Article 10 of the Colorado Constitution or C.R.S. §29-1-110, such obligation may be subject to annual appropriation by Grantor. The foregoing is not an agreement or an acknowledgement by either Grantor or Grantee that any financial obligation which could arise pursuant to this Easement would be subject to the requirement that funds for such financial obligation must be appropriated by Grantor. Nothing in this Easement shall be deemed to be a waiver of any rights that Grantee may have pursuant to C.R.S. §30-25-104. Nothing in this Section 28 shall prevent Grantee from enforcing the Easement in accordance with its terms, despite a failure by Grantor to appropriate funds. 29. Authority to Execute. Each Party represents to the other that such Party has full power and authority to execute and deliver this Deed, and perform this Easement, that the individual executing this Deed on behalf of said Party is fully empowered and authorized to do so, and that this Easement constitutes a valid and legally binding obligation of said Party enforceable against said Party in accordance with its terms. 30. Acts Beyond Grantor’s Control. Nothing contained in this Easement shall be construed to entitle Grantee to bring any action against Grantor for any injury to or change in the Property resulting from causes beyond Grantor’s control, including, without limitation, fire, flood, storm, and earth movement, or from any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes. Notwithstanding the foregoing, the Grantor shall take reasonable efforts to prevent third parties from performing, and shall not knowingly allow third parties to perform, any act on or affecting the Property that is inconsistent with the Purpose of this Easement. 31. Costs and Liabilities. Grantor retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property, including weed control and eradication and including the maintenance of adequate EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 20 of 27 comprehensive general liability insurance coverage consistent with the limits set forth in the Colorado Governmental Immunity Act. Grantor shall keep the Property free of any liens arising out of any work performed for, materials furnished to, or obligations incurred by Grantor. 32. Mediation of Disputes Regarding Proposed Activities. If Grantor or Grantee cannot resolve a dispute regarding an alleged violation of this Easement by Grantor pursuant to Section 9 of this Easement or Grantee denies a request by Grantor for approval pursuant to Section 18 of this Easement, either Party may request mediation by submitting a written notice to the other Party. Within ten (10) working days of the receipt of such request, the Parties shall select a single, trained, and impartial mediator with experience in conservation easements and other land preservation tools. Mediation shall then proceed in accordance with the following guidelines: a. Purpose. The purpose of the mediation is to: (i) promote discussion between the Parties; (ii) assist the Parties to develop and exchange pertinent information concerning the issues in dispute; and (iii) assist the Parties to develop proposals which will enable them to arrive at a mutually acceptable resolution of the controversy. The mediation is not intended to result in any express or de facto modification or amendment of the terms, conditions, or restrictions of this Easement. b. Participation. The Parties agree that they will participate in the mediation process in good faith and expeditiously, attending all sessions scheduled by the mediator. Representatives of the Parties with settlement authority will attend mediation sessions as required by the mediator. c. Confidentiality. All information presented to the mediator shall be deemed confidential and shall be disclosed by the mediator only with the consent of the Parties or their respective counsel. The mediator shall not be subject to subpoena by any Party. No statements made or documents prepared for mediation sessions shall be disclosed in any subsequent proceedings or construed as an admission of a Party in accordance with Colorado Rules of Evidence, Rule 408. d. Time Period. Neither Party shall be obligated to continue the mediation process beyond a period of sixty (60) calendar days from the date of receipt of the initial request or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in a mutually agreeable resolution of the dispute. e. Costs of Mediation. Grantor shall pay all of Grantee’s expenses associated with the mediation, including attorneys’ fees and consultant fees, except that Grantor and Grantee shall share equally the costs of the mediator. TO HAVE AND TO HOLD, this Deed of Conservation Easement unto Grantee, its successors, and assigns forever. IN WITNESS WHEREOF, Grantor and Grantee, intending to legally bind themselves, have set their hands on the date first written above. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 21 of 27 GRANTOR: THE TOWN OF AVON Attest:___________________________ By:________________________ Patty McKenny, Town Clerk Rich Carroll, Mayor STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ____ day of ___________________ 2012, by Rich Carroll, Mayor of the Town of Avon. WITNESS MY HAND AND OFFICIAL SEAL. _____________________________ NOTARY PUBLIC My commission expires: EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 22 of 27 GRANTEE: EAGLE VALLEY LAND TRUST, a Colorado nonprofit corporation By: _________________________ Kara Heide, Executive Director STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ____ day of ____________, 2012, by Kara Heide, as Executive Director of Eagle Valley Land Trust, a Colorado nonprofit corporation. WITNESS MY HAND AND OFFICIAL SEAL. _____________________________ NOTARY PUBLIC My commission expires: EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 23 of 27 EXHIBIT A Legal Description of the Property Lots 3 and 4, the S1/2 NW 1/4, and the SW 1/4 of Section 2, Township 5 South, Range 82 West of the 6th Principal Meridian, County of Eagle, State of Colorado, according to the Dependent Resurvey of said Township and Range, accepted September 7, 1977 by the United States Department of the Interior, Bureau of Land Management. Excepting Parcels No. 33 and No. 37 Project No. I-70-2(9) Wolcott-Dowd Junction dated July 11, 1973, Colorado Department of Highways. And Lot 1, the SE 1/4 NE 1/4, and NE 1/4 SE 1/4 of Section 3, Township 5 South, Range 82 West of the 6th Principal Meridian, County of Eagle, State of Colorado, according to the Dependent Resurvey of said Township and Range, accepted September 7, 1977 by the United States Department of the Interior, Bureau of Land Management. Excepting Parcel No. 31 Project No. I-70-2(9) Wolcott-Dowd Junction dated July 11, 1973, Colorado Department of Highways. And The SE 1/4 SE 1/4 of Section 34, Township 4 South, Range 82 West of the 6th Principal Meridian, County of Eagle, State of Colorado, according to the Survey of said Township and Range, accepted December 28, 1882 by the Surveyor General of Colorado and according to the Dependent Resurvey of said Township and Range, accepted September 7, 1977 by the United States Department of the Interior Bureau of Land Management. Containing approximately 469 acres more or less. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 24 of 27 EXHIBIT B Map of the Property EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 25 of 27 EXHIBIT C Sample Notice of Transfer of Property To: Eagle Valley Land Trust (“Grantee”) From: [Insert name of fee owner] (“Grantor”) Pursuant to Section 11 of the Deed of Conservation Easement recorded (date) under reception number ___________, Grantee is hereby notified by Grantor of the transfer of the fee simple interest in the subject Property legally described in Exhibit A attached hereto effective [insert date of closing] to [insert name of new Grantor], who can be reached at [insert name, legal address, phone and fax number]. Also pursuant to Section 11 of the aforementioned Deed of Conservation Easement, a copy of the new ownership deed is attached. GRANTOR: By: Title: STATE OF COLORADO ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this ____ day of _____________, 20__, by as of ____________. Witness my hand and official seal. My commission expires: Notary Public Date: EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 26 of 27 EXHIBIT D Exceptions to Title 1. Any water rights or claims or title to water in, on or under the land, whether of record or not. 2. Notwithstanding the insuring clauses of the policy, the company does not insure against loss or damage by reason of a lack of a right of access to and from the land. 3. Rights of the public in and to any roads upon subject property. 4. Any loss, damage, claim or interest due to the fact that the assessor's parcel #2105-022- 00-005, contains more property than the subject property herein. 5. Easements, conditions, covenants, restrictions, reservations and notes on the Annexation Map #4 recorded November 13, 1981 in Book 331 at Page 978. 6. Terms, conditions, provisions, burdens and obligations as set forth in ordinance #81-34, series of 1981 recorded November 13, 1981 in Book 331 at Page 981. 7. Terms, conditions, provisions, burdens and obligations as set forth in underground facilities information recorded July 01, 1985 in Book 418 at Page 708. (Affects sections 3 and 34) 8. Terms, conditions, provisions, burdens and obligations as set forth in Resolution #92-109 recorded October 21, 1992 in book 592 at page 55. 9. Terms, conditions, provisions, burdens and obligations as set forth in Exchange Agreement recorded February 01, 2002 under Reception No. 784755. 10. Any tax, lien, fee, or assessment by reason of inclusion of subject property in the Western Eagle County Metropolitan Recreation District, as evidenced by instrument recorded March 04, 2004, under Reception No. 869897. 11. Terms, conditions, provisions, burdens and obligations as set forth in Resolution #002 recorded January 03, 2012 under Reception No. 201200099. 12. Terms, reservations, conditions, provisions, burdens, obligations and easements as set forth in United States Patent recorded ___________ under Reception No. __________. 13. Failure to comply with the terms, covenants and conditions of the agreement referred to in Schedule A. EXHIBIT E Conservation Easement EVLT 12-6-12 mvh V6 Page 27 of 27 14. Holy Cross Right-of-Way Easement recorded ___________ under Reception No. __________. 15. Holy Cross Right-of-Way Easement recorded ___________ under Reception No. __________. EXHIBIT E Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 1 of 10 West Avon Open Space Management Plan Landowner: Town of Avon Conservation Easement Holder: Eagle Valley Land Trust Dated: December 2012 EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 2 of 10 OVERVIEW: Wildlife, open space, and habitat are significant factors in the quality of life enjoyed by residents of the Town of Avon (“Town”) and Eagle County (“County”). The presence of various species of wildlife and their associated habitats provides numerous biological, economic and recreational benefits to our community. The West Avon Parcel (“Property”) possesses significant ecological, habitat and open space values. The Property qualifies as open space because it will be preserved for the scenic enjoyment of the general public and will be accessible to the public for passive recreation and educational purposes, which will yield a significant public benefit. PURPOSE: The Town acquired the Property as part of a United State Forest Service multi-party land exchange initiated by the White River National Forest - Eagle/Holy Cross Ranger District (“Land Exchange”). The goal of the Land Exchange was to protect the conservation values of the land and to provide public recreational access to the Property. The conservation values of the Property are more fully defined in the conservation easement and baseline report and include open space, outdoor recreation, buffering and natural separation between communities, education opportunities for the public and relatively natural habitat. In an effort to ensure that the land will be protected in perpetuity, the Town granted a conservation easement (“Conservation Easement”) to the Eagle Valley Land Trust (“EVLT”). This Land Management Plan (“Plan”) provides for the present and future management of the Property. Capitalized terms used in this Plan, not defined herein, shall have the meaning set forth in the Conservation Easement. To the extent the provisions of this Plan conflict with the provisions of the Conservation Easement, the Conservation Easement shall control. BACKGROUND: The Property consists of approximately 478 acres located in the Town contiguous to the Wildridge Subdivision and Singletree Community. The Property was part of the Land Exchange involving Eagle County, the Colorado State Land Board, the Upper Eagle Regional Water Authority and the White River National Forest - Eagle/Holy Cross Ranger District of the United States National Forest Service. Acquisition of the Property was completed on _____, 2013 with initial funding from the Eagle County General Fund and Town General Fund. EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 3 of 10 MANAGEMENT MISSION STATEMENT: To manage the Property for the purpose of preserving and protecting the conservation values while providing compatible outdoor recreation opportunities, including trails for hiking, mountain biking, and horseback riding, all in accordance with the Conservation Easement and this Plan. USE AND MANAGEMENT: Trails: Recreational trails are a primary public benefit of the Property. The Property will be a significant “destination open space” for Town and County residents, but Town residents will constitute the majority of users. These users will include, but will not be limited to, hikers, runners, dog-walkers, mountain bikers, and equestrians. Currently there is a mix of informal social trails, recently improved multi-use single-track, and relic access roads used for access to construct power line infrastructure. The network has developed over the past couple of decades with little formal planning, and non-maintained trails have resulted in erosion issues. The 2007 USDA Decision Memo for Singletree and West Avon Recreation Trails may be used as a source document in evaluating any future trail uses. Improvements needed include erosion control work such as water bars, or grade dips to sufficiently protect the integrity of the trails. Realignments will be necessary is some locations due to the steepness of topography. The Beaver Creek Lookout Trail may be improved with a crusher-fine or paved path to the trail terminus in order to provide American with Disabilities Act (“ADA”) access. In most cases, trail width should not exceed 36 inches and should remain natural with the exception of ADA compliance for any trail identified for ADA access. Trail improvement and maintenance work will generally rely on use of hand tools and perhaps small machines, such as a 48 inch wide mini-excavator or Trail Dozer. Heavy equipment should be avoided for trail maintenance due to the inherent impacts to the habitat and vegetation. Where heavy equipment is necessary for trail maintenance, construction or reconstruction by the Town, the Town or its representatives shall ensure that any damage to the Property created by the heavy equipment shall be restored as near as is practical to the original condition. No motorized use of the trails will be allowed unless it specifically involves the Town or contractors conducting approved management of the Property, such as fence repair, weed control, or trail maintenance. In addition, as set forth in the Conservation Easement some third parties may have the right to access the Property under existing easements or applicable law. The width and surface of the trails is set forth in the Conservation Easement. At this time the Town does not plan to build any new trails. Prior to the Town’s construction of any new trails, Town and EVLT will amend this Plan. EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 4 of 10 The Town will consult with County via a separate agreement to cooperatively and mutually determine whether additional maintenance, if any, is necessary or desired, for the upkeep of the trails and/or the Property. Building Envelopes: The location of the two (2), two (2) acre building envelopes permitted in the Conservation Easement shall be agreed upon mutually by the Town and EVLT and documented in an amendment to this Plan (each, a “Building Envelope”). Trailheads: The trailheads will be located in the following locations: (1) Nottingham Road cul- de-sac adjacent to Interstate 70; (2) West side of Beaver Creek Point Road accessed from Block 1 of the Wildridge Subdivision; (3) O’Neal Spur Pocket Park in Block 2 of the Wildridge Subdivision; and (4) Lot 1, Block 2, Berry Creek Ranch Subdivision (aka Singletree Access). Advanced notice of intent to pave trailhead parking lots will be provided to EVLT. 1. Nottingham Road. The trailhead is located on Town right-of-way on the south side of the Nottingham Road cul-de-sac, approximately 750 feet west of the intersection with Metcalf Road. This access point will be improved to prevent or mitigate future debris flow issues that stem from hillside to the north. Signage will be installed describing the “non-motorized” status of the trail. If necessary, post and rail fence will be installed to prevent mechanized vehicles from accessing the Property. Signage and trash receptacles will be provided. 2. Beaver Creek Point. This trailhead will be accessed from the west side of Beaver Creek Point Road, at the midway point in the road. It will accommodate 3 to 5 cars and will be surfaced with asphalt or other approved material by the Town Engineer. Prior to the construction of the parking lot, the Town and EVLT will amend this Plan to establish the location of a Building Envelope within which the parking lot and other permitted structures may be located. A split rail fence will likely define the area to avoid motorized access. Signage and trash receptacles will be provided. 3. O’Neal Spur Pocket Park. A trailhead can be established from the existing O’Neal Spur Pocket Park at the intersection of Old Trail and O’Neal Spur roads in Wildridge. There are existing on street parking spaces and park facilities. This trailhead will be utilized only in the event a path is constructed to connect Wildridge with Nottingham Road. 4. Singletree Access. In 2003, the Berry Creek Metropolitan district purchased this property in order to provide access to the planned trail network. This access point is located at 701 June Creek Drive on the eastern edge of the Singletree Community in Eagle County. Split rail fence was installed to prevent mechanized vehicles from accessing the Property. Signage was also installed to notify trail users of its “non- motorized” status. Parking: Two additional formal parking areas are envisioned for the Property. There will be 3-5 parallel parking spaces added near the cul-de-sac on Nottingham Road immediately adjacent to EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 5 of 10 the trailhead. Additionally, a 3-5 car parking area will be installed on Beaver Creek Point. Prior to the construction of any parking lot, the Town and EVLT will amend this Plan to establish the location of one or more Building Envelopes within which a parking lot and other permitted structures may be located. Trashcans: Wildlife-proof containers will be installed on the Property at the Beaver Creek Point parking area and the Nottingham Road trailhead. The receptacles will be emptied by Town Staff. Additional wildlife-proof receptacles will be added as necessary based upon use and needs identified on the Property. Dog Bag Dispensers: It is anticipated that many users will visit the Property with dogs. Dog waste bag dispensers will be located at each trailhead maintained by the Town. Picnic Tables: The Town may place picnic tables on the Property at the terminus of the Beaver Creek Point Lookout Trail. They will be situated in a manner that does not negatively impact the scenic qualities of the Property. Structures: There are no standing structures currently existing on the Property, and there are no plans for any above-grade structures. Prior to constructing any structures permitted by the Conservation Easement, but which are not specifically addressed in this Plan, the Town and EVLT shall amend this Plan. Fences: The Property is bounded by game fencing along the Interstate-70 Right-of-way on the South, barb-wire fence delineating some of the boundaries, and limited split rail fencing near existing access points and along Beaver Creek Point Road. If deemed necessary by the Town for management purposes, new fences and gates may be constructed. The Town will insure that the fences meet standards established by the Colorado Division of Wildlife designed to reduce wildlife entanglement risk. In all cases the fencing will be split rail design. Fencing will be installed to help delineate the Beaver Creek Point Parking Area. Access: Users will access the Property from one of the four identified trailheads. No parking is allowed on adjacent residential streets including but not limited to: Saddleridge Loop, Beaver Creek Point (except as may be permitted by the Town), or June Creek Trail. EVLT shall have no obligation to enforce these requirements. Restroom Facilities: No current plans for restroom facilities exist. The Town will monitor use and the condition of the trailhead areas to determine if a restroom facility is needed. The location of the restroom(s) would be adjacent to the trailhead area(s) within Building Envelope(s). Prior to the construction of any restroom facilities, the Town and EVLT shall amend this Plan. Utility Improvements: There are third party easements affecting the Property. The terms of those third party easements shall control. No new utility improvements are contemplated at this time. Future utility improvements may be required. Prior to the installation of any new utilities, the Town and EVLT shall amend this Plan. EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 6 of 10 Agriculture: The Town has no plans to use the Property for agricultural uses. In the event agricultural use is implemented, stewardship and managements methods that preserve the natural resources will be utilized. Noxious Weeds: The Property is generally free of noxious weeds given its arid nature. The Town will manage the Property to control noxious weeds to the extent reasonably possible. The Town trained staff, or third-party licensed commercial applicator will complete any potential spraying operations. Town Staff will monitor the Property to ensure that weed control efforts are successful and that new populations do not become established. Specific focus will be given to detecting Colorado “A list” noxious weed species. “A List” species are plants that are newly introduced to Colorado and represent a serious threat to ecological integrity and native biodiversity. For these plants the management goal is total eradication. Under Colorado Law, “B List” species must be controlled. Wildlife Management: Wildlife habitat protection is a primary goal. Critical wildlife habitat was identified by the Colorado Division of Wildlife. The Property is within the MA5.41 deer and elk winter range area. Between December 15th and April 15th the Avon/Singletree trail will be closed to all uses. The Beaver Creek Lookout and Saddleridge Trails will be open year around. Dogs will be required to be on leash between December 15th and April 15th. If compliance with the leash regulation during the winter is not successful, then management options, such as closing the area completely during this period, will be considered. EVLT shall have no obligation to enforce the provisions included within this paragraph. Natural Habitat Management: At this time, the Town has no plans to conduct any natural habitat management. Prior to implementing any plan to conduct natural habitat management, the Town and EVLT shall amend this Plan. Signage: Signage will include regulatory, educational, and directional signs, mainly in the trailhead locations, with limited signage at trail intersections. The Town will develop an effective trail signage system that is tasteful, unobtrusive to the natural landscape, and consistent with size limitations stipulated in the Conservation Easement. The goal is to provide a comprehensive coordinated sign program. Regulatory signs will essentially focus on rules for using the Property. Directional signs with trail maps may be located on the Property at trail intersections and key way-finding points. Educational signs may be concentrated at the trailhead, with limited signs along the trails at unique vantage points (i.e. Beaver Creek lookout terminus). Educational Programming: Educational activities on the Property are encouraged. These activities may take many forms including guided hikes, school programs, trail maintenance workshops, and special events such as Earth Day celebrations. Encroachments: The general public is not permitted to place or store personal items on the Property. Encroachments involving personal items often include lawn furniture, yard tools and equipment, grass clippings, yard waste, sports equipment, firewood, toys, targets, tents, forts, and trash. The Town will notify offenders that the activity is not permitted and will outline what is EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 7 of 10 expected of them to correct the situation. In the case the offenders are not identified, the Town will mitigate the encroachment. Allowable Uses: The Town and EVLT agree that the following uses may occur on the Property: • Hiking • Mountain biking • Equestrian • Jogging/running • Dog walking The following uses may be allowed on the Property so long as they do not create new unauthorized trails or adversely impact the conservation values of the Property: • Picnicking • Photography • Wildlife viewing/Bird watching • Snowshoeing • Cross-country skiing • Orienteering • Frisbee, but no construction of Frisbee Golf Course • Kite-flying • Other uses not inconsistent with Town regulations for open space or with the conservation values of the Property Special Uses: The Town anticipates that certain special uses will be requested by the public, which are too numerous and wide-ranging to list in this Plan. Each request will be evaluated by Town Staff to determine if it will have detrimental impacts to the conservation values of the Property in which case such special event shall not be approved by the Town. Specific considerations will include: • Duration of event. • Specific location within the Property. • Potential impacts to vegetation and wildlife. • Potential impacts to adjacent landowners. • Consistency with vision of open space purpose to provide passive recreational access. • The extent to which the proposed use interferes with, compromises or diminishes the ability for others to use and enjoy the Property. • Will the use result in increased management costs for Town. • Overall scope and scale of impacts to the Property, adjacent properties, and conservation values. The Town agrees to provide EVLT with a copy of any request for a special use on the Property. EVLT will immediately notify the Town Staff if EVLT believes the proposed event will be undertaken in a manner than will have a detrimental impact to the conservation values. If EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 8 of 10 such notice is given by EVLT, the Town agrees to either deny approval of the event, or to require conditions to the approval of the special event to ensure that the event is undertaken in a manner that does not have a detrimental impact to the conservation values. Property Damage: In the event that property damage occurs, restoration shall occur as set forth in the Conservation Easement. Disturbances caused by existing third party easement holders (as that term is defined in the Conservation Easement) shall be governed by the easements or statutory or common law rights and obligations. EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 9 of 10 RULES AND REGULATIONS Hours Open: Public access to the Property shall be permitted during the period that is one hour before sunrise to one hour after sunset each day. All portions of the Property may be closed seasonally or as determined by the Town for maintenance or to address wildlife or other matters affecting the Property. In the event of such closure, the same shall be posted on the Property and no additional notice to EVLT shall be required. Town has established rules and regulations for all open space properties that will be owned and managed by the Town. Town reserves the right to amend and enact such rules and regulations as deemed appropriate by the Town in the exercise of its police powers for the preservation of the health, safety and general welfare of the Avon community. EVLT shall have no obligation to enforce any rules and regulations adopted by the Town, including those listed below. The following rules apply: • No fires or fireworks • No hunting on the Property and no hunting access to the Property • No discharge of weapons • No motorized recreation • No off-trail use that would lead to creation of new trails • No littering • No picking of plants • No collection of artifacts • No commercial activity • No removal or collection of plants, animals, fungi, or rocks • No hang-gliding • No loud music • No camping • No overnight parking in trailhead parking areas Additional rules and regulations may be identified and developed after the Property is formally made available to the public. EXHIBIT F Management Plan – West Avon Parcel Dec. 17, 2012 FINAL Page 10 of 10 CONSERVATION EASEMENT MONITORING EVLT will hold a Conservation Easement on the Property. This will necessitate annual monitoring. EVLT Staff shall notify Town Staff in advance of any annual monitoring effort so that Town Staff may accompany EVLT Staff during the monitoring. Town and EVLT will maintain a file of annual easement monitoring reports and work cooperatively to address any concerns associated with use and management of the Property. APPROVED AND ADOPTED THIS ___ day of ____________, 2013. Town of Avon, Colorado Eagle Valley Land Trust By: _____________________ By: _______________________ EXHIBIT F Eagle County – Town of Avon 2012 IGA Village Parcel Conservation Easement Page 1 of 5 Dec 17, 2012 INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY OF EAGLE AND THE TOWN OF AVON This Intergovernmental Agreement (“Agreement”) is made this ______ day of __________________, 2013, by and between the County of Eagle, State of Colorado, a body corporate and politic (“County”) and the Town of Avon, a Colorado home rule municipal corporation (“Town”), (individually referred to as “Party” and collectively as “Parties”). WITNESSETH WHEREAS, the White River National Forest - Eagle/Holy Cross Ranger District initiated a multi-party land exchange involving Eagle County, the Colorado State Board of Land Commissioners, the Upper Eagle Regional Water Authority, and the United States Forest Service (“Land Exchange”); WHEREAS, the Town has acquired two parcels of land from the United States government as a result of the Land Exchange, dated ___________, by and among the State of Colorado State Board of Land Commissioners, the Upper Eagle River Water Authority, Eagle County, and the United States of America Forest Service, which parcels are described as: the West Avon Parcel containing approximately 478.09 acres and located within the Town of Avon; and, the Village Parcel, containing approximately 85.99 acres and located within in Eagle County; WHEREAS, the Village Parcel is bounded on three sides by the Village (at Avon) PUD project area and the Village Parcel is situated such that road and trail access across the Village Parcel may be the best alignment for connection to the lower and eastern most portions of the Village (at Avon) PUD project area; WHEREAS, the Town adopted Resolution No. 11-12 A RESOLUTION REPEALING RESOLUTION 11-09 AND APPROVING A NEW RESOLUTION BY THE AVON TOWN COUNCIL SUPPORTING A MULTI-PARTY LAND EXCHANGE LOCATED IN THE WHITE RIVER FOREST IN EAGLE COUNTY AND RECOMMENDING EXCEPTIONS TO THE CONSERVATION EASEMENTS ON THE WEST AVON PARCEL AND THE VILLAGE PARCEL which stated the policy to reserve from any conservation easement recreational trails, approximately 6 acres of land for affordable housing and community facilities on the Village Parcel, and a potential future easement or easements for a road and trail connecting Planning Area RMF-1 to Planning Area M (as defined in the 1998 Village (at Avon) PUD map) on the Village Parcel; WHEREAS, the Town is not able to determine the specific alignment and location of such uses to be reserved from a conservation easement at this time but Town desires to make a commitment to the County that a conservation easement will be granted for the Village Parcel in the future and further desires to cooperate effectively with the County to promote the efficient EXHIBIT G Eagle County – Town of Avon 2012 IGA Village Parcel Conservation Easement Page 2 of 5 Dec 17, 2012 achievement of important community goals for Eagle County residents, including but not limited to residents of the Town of Avon; and, WHEREAS, this Intergovernmental Agreement is authorized pursuant to §29-1-201 and §30-11-101, Colorado Revised Statutes, as amended; Article XIV, Section 18, of the Colorado Constitution; and Section 16.2 of the Avon Home Rule Charter. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants, conditions and promises contained herein, the Parties agree as follows: 1. Future Conservation Easement. The Town agrees that Town will grant to Eagle Valley Land Trust, or other appropriate organization mutually acceptable to Town and County, a conservation easement (“Future Conservation Easement”) on the portion of the Village Parcel remaining after the determination of the location and alignment of roadways and trails and after determining the boundaries of a reserved area for affordable housing and community facilities. The Future Conservation Easement shall restrict and protect the remaining portion of the Village Parcel as open space in its natural state, shall allow passive recreation activities, and shall generally include such other terms as are included in the conservation easement on the West Avon Parcel or shall include such terms as Town and County mutually agree. The Town agrees that the area for affordable housing and community facilities shall be no greater than 6.5 acres without approval by the County and that the location shall be generally on the northwest corner of the Village Parcel as depicted in Resolution No. 11-12 of the Town of Avon, attached hereto as Exhibit “A” and incorporated herein. 2. Cooperation on Affordable Housing. Town agrees to actively explore cooperative or partnership efforts with County to promote cost effective, energy efficient, environmentally and architecturally appropriate, affordable housing projects on the portion of the Village Parcel reserved for such purpose. 3. Future Maintenance Agreement. Simultaneously with the conveyance of the Future Conservation Easement, Town and County agree to enter into a maintenance agreement to set forth the Town’s obligations with respect to the use and maintenance of the Village Parcel (the “Future Maintenance Agreement”). The Future Maintenance Agreement will provide for inspections of trail conditions, fencing, if any, status and condition of signage and other improvements, and a review of maintenance levels. The Town and County shall cooperatively and mutually determine what additional maintenance, if any, may be necessary or desired, for the Village Parcel. The Town and County may update or revise the Future Maintenance Agreement as may be mutually determined. 4. Costs. Town shall be responsible for and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Village Parcel, and any improvements or trails thereon. All maintenance obligations of the Town under this EXHIBIT G Eagle County – Town of Avon 2012 IGA Village Parcel Conservation Easement Page 3 of 5 Dec 17, 2012 Agreement are subject to funds being budgeted and appropriated. Eagle County shall not be responsible for any such costs or liabilities associated with the Village Parcel. 5. Term. This Agreement is effective from this day forward, until the earlier of (a) the date which the Town grants a conservation easement on the Village Parcel in accordance with the terms in this Agreement or (b) December 31, 2037. 6. Notices. All notices, requests, consents, approvals, written instructions, reports or other communication by the Town and the County, under this Agreement, shall be in writing and shall be deemed to have given or served, if delivered or if mailed by certified mail, postage prepaid or hand delivered to the Parties as follows: Town of Avon: Town of Avon One Lake Street PO Box 975 Avon, CO 81620 Attn: Town Manager County of Eagle: Eagle County Attorney P.O. Box 850 Eagle, CO 81631 Either Party may change the address to which notices, requests, consents, approvals, written instructions, reports or other communications are to be given by a notice of change of address given in the manner set forth in this section. 7. Third Party Beneficiary. This Agreement does not and shall not be deemed to confer upon or grant to any third party any right to claim damages or to bring any lawsuit, action or other proceedings against either the Town or the County because of any breach hereof or because of any terms, covenants, agreements or conditions contained herein. 8. Amendments. No modification or waiver of this Agreement or of any covenant, condition, or provision herein contained shall be valid unless in writing and duly executed by the Party to be charged therewith. 9. Entire Agreement. This written Agreement embodies the whole agreement between the Parties hereto and there are no inducements, promises, terms, conditions, or obligations made or entered into either by the County or the Town other than those contained herein. 10. Assignment. This Agreement shall be binding upon the respective Parties hereto, their successors or assigns and may not be assigned by anyone without the prior written consent of the other respective Party hereto. Such approval shall not be unreasonably withheld, but any unapproved assignment is void. EXHIBIT G Eagle County – Town of Avon 2012 IGA Village Parcel Conservation Easement Page 4 of 5 Dec 17, 2012 11. Severability. All agreements and covenants herein are severable, and in the event that any of them shall be held invalid by a court of competent jurisdiction, this Agreement shall be interpreted as if such invalid agreement or covenant were not contained herein. 12. Authority. The Town has represented to the County and, likewise, the County has represented to the Town, that each possesses the legal ability to enter into this Agreement. In the event that a court of competent jurisdiction determines that either of the Parties hereto did not possess the legal ability to enter into this Agreement, this Agreement shall be considered null and void as of the date of such Court determination. 13. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. The Parties agree that venue for any dispute regarding this Agreement shall be proper in Eagle County, Colorado. [Signature Page Follows] EXHIBIT G Eagle County – Town of Avon 2012 IGA Village Parcel Conservation Easement Page 5 of 5 Dec 17, 2012 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first above written. COUNTY OF EAGLE, STATE OF COLORADO, by and through its ATTEST: BOARD OF COUNTY COMMISSIONERS By:__________________________ By:__________________________________ Clerk to the Board of Jon Stavney, Chairman County Commissioners ATTEST: TOWN OF AVON By:___________________________ By:__________________________________ Patty McKenny, Town Clerk Rich Carroll, Mayor EXHIBIT G   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 1 of 6 Dec 17, 2012 ejh rev   INTERGOVERNMENTAL AGREEMENT BETWEEN THE COUNTY OF EAGLE, THE TOWN OF AVON, AND BERRY CREEK METROPOLITAN DISTRICT REGARDING MAINTENANCE OF WEST AVON PROPERTY AND RELATED TRAILS This Intergovernmental Agreement dated this ___ day of ___________, 2013 (“Agreement”) is entered into by and between the County of Eagle, Colorado, a body corporate and politic, by and through its Board of County Commissioners (“County”), The Town of Avon, a home rule municipality, by and through its Town Council (“Town”), and Berry Creek Metropolitan District, a quasi-municipal corporation by and through its Board of Directors (“District”) (individually referred to as “Party” and collectively as “Parties”). RECITALS WHEREAS, as part of a multi-party land exchange between the State of Colorado, acting through its State Board of Land Commissioners, the Upper Eagle Regional Water Authority, acting through its Board of Directors, the County of Eagle, acting through its Board of Commissioners, and the United States of America (“Land Exchange”), the Town has accepted title to approximately 478.09 acres of land in the Town of Avon, Eagle County, Colorado more particularly described as Township 4 South, Range 82 West, Township 5 South, Range 82 West, County of Eagle, State of Colorado (“West Avon Property”); WHEREAS, the West Avon Property is or will be permanently conserved as open space through a Deed of Conservation Easement (defined in Paragraph 1 below) between the Town and Eagle Valley Land Trust (“EVLT”); WHEREAS, as part of the community effort associated with the Land Exchange and the conveyance of the West Avon Property to the Town, the Parties have agreed to enter into this Agreement to set forth the Parties’ respective obligations with respect to the use and maintenance of the West Avon Property; and WHEREAS, this Intergovernmental Agreement is authorized pursuant to §29-1-201 and §30-11-101, Colorado Revised Statutes, as amended; Article XIV, Section 18, of the Colorado Constitution; and the Avon Home Rule Charter. EXHIBIT H   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 2 of 6 Dec 17, 2012 ejh rev   AGREEMENT NOW, THEREFORE, for good and valuable consideration, including the promises set forth herein, the Parties agree as follows: 1. Maintenance. The Parties agree that maintenance for the West Avon Property shall be performed consistent with the terms of the Deed of Conservation Easement dated ____, 2012 (“Conservation Easement”), and the Management Plan for the West Avon Property dated December 2012 (“Management Plan”): a. Town shall perform or cause to be performed: i. Weed control and spraying, as needed; ii. Trail maintenance, as needed; iii. Trash pickup from a trash container installed by Town, to be located at Beaver Creek Point trailhead; iv. Stock dog bags, as needed; v. Inspection and monitoring of parking area and trailhead; vi. Snow removal in parking area, as needed; and vii. Inspections of the West Avon Property which may include an inspection of trail conditions, fencing, if any, status and condition of signage and other improvements, and a review of maintenance levels. Town will provide District and County with advance notice of the date of the inspections so that District and County project managers may also attend. b. Following the inspections of the West Avon Property, the Parties shall cooperatively and mutually determine what additional maintenance, if any, may be necessary or desired, for the Property. 2. Costs. Town shall be responsible for and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the West Avon Property and any improvements or trails thereon. All maintenance obligations of the Town under this Agreement are subject to funds being budgeted and appropriated. Eagle County shall not be responsible for any such costs or liabilities associated with the West Avon Property. 3. Signage for the West Avon Property. The Parties shall mutually agree on the location of and verbiage for signage on the West Avon Property consistent with the terms of the Conservation Easement and Management Plan for the West Avon Property. EXHIBIT H   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 3 of 6 Dec 17, 2012 ejh rev   4. Trailhead on West Avon Property. In the event that Town identifies any nuisance or improper use of the parking area and/or trailhead during its inspections, the Town’s project manager (see paragraph 7 below) shall notify District’s and County’s project manager (see paragraph 7 below) in an effort to develop a cooperative solution which may include, by way of example only, installation of additional signage, additional monitoring or enforcement of rules. 5. Term. The initial term of this Agreement shall be for a one-year term commencing upon execution by the Parties. This Agreement shall automatically renew for additional one (1) year terms commencing January 1 of each consecutive year unless earlier terminated as set forth herein. 6. TABOR. Town, County and District are governmental entities and all obligations beyond the current fiscal year are subject to funds being budgeted and appropriated. Notwithstanding anything to the contrary contained in this Agreement, no payment shall be made for any maintenance services provided after December 31 of any year without prior approval of a budget adopted in accordance with the provisions of Article 25 of Title 30 of the Colorado Revised Statutes and Local Government Budget Law (C.R.S. §29-1-101 et. seq.). 7. Project Managers. The Parties acknowledge that on-going coordination and communication will be required. As a result, each Party shall have designated a project manager to coordinate performance and communication under this Agreement. The Town’s project manager shall be Virginia Egger, Town Manager, or her designee, the County’s project manager shall be Toby Sprunk, Eagle County Open Space Director, and the District’s project manager shall be its Executive Director. Any and all correspondence between the Parties regarding this Agreement shall be between and among the project managers. Any Party may designate a different project manager by notice in writing to the other Parties. 8. Disputes. In the event of a dispute or failure to perform as set forth herein, then the project managers identified in paragraph 7 shall first work together to find a solution or resolve the dispute. If the dispute or failure to perform remains on-going for more than thirty (30) days, then any Party may give a formal notice of default to the defaulting Party. The defaulting Party will take steps to correct the default or breach within thirty (30) days or such longer time as it may reasonably take to correct the breach or default after notice of default is received. In the event the default is not timely corrected as set forth herein, then the non-defaulting Party or Parties may pursue any legal remedies available to it and terminate this Agreement. 9. Termination. Any Party may terminate this Agreement without cause upon one hundred twenty (120) days advance notice to the other Parties. 10. Notice. Any notice and all written communications required under this Agreement shall be given in writing by personal delivery, fax or U.S. mail to the appropriate Party at the following addresses: Town: Town of Avon One Lake Street EXHIBIT H   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 4 of 6 Dec 17, 2012 ejh rev   PO Box 975 Avon, CO 81620 Attn: Town Manager Telephone: (970) 748-4000 Facsimile: (970) 949-9139 With a copy to: Eric J. Heil, Esq. Heil Law & Planning, LLC 2696 S. Colorado Blvd., Suite 550 Denver, CO 80222 Telephone: (303) 975-6120 Facsimile: (720) 836-3337 District: Berry Creek Metropolitan District c/o Robertson & Marchetti, P.C. 28 Second Street, Suite 213 Edwards, CO 81631 Telephone: (970) 926-6060 Facsimile: (970) 926-6040 With a copy to: James P. Collins, Esq. Collins Cockrel & Cole 390 Union Boulevard, Suite 400 Denver, CO 80228-1556 Telephone: (303) 986-1551 Facsimile: (303) 986-1755 County: Toby Sprunk, Director of Open Space Eagle County Post Office Box 850 500 Broadway Eagle, CO 81631 Telephone: (970) 328-8698 Facsimile: (970) 328-7185 With a copy to: Eagle County Attorney’s Office Post Office Box 850 500 Broadway Eagle, CO 81631 Telephone: (970) 328-8685 Facsimile: (970) 328-8699 Notices shall be deemed given on the date of delivery if delivered in person or by a service like Federal Express or United Parcel Service, or three (3) days after the date of deposit, first class postage prepaid, in an official depository of the U.S. Postal Service. When sent via EXHIBIT H   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 5 of 6 Dec 17, 2012 ejh rev   facsimile so long as the sending Party can provide a facsimile machine or other confirmation showing the date, time and receiving facsimile number for the transmission. 11. Assignment. The rights and obligations of the Parties to this Agreement may be assigned with consent of the Parties, which shall not be unreasonably withheld. Any assignment made without consent of the Parties is void. 12. Insurance. At all times during the term of the Agreement all Parties shall maintain insurance consistent with the limits established by the Colorado Governmental Immunity Act. 13. Entire Understanding. This Agreement embodies the entire understanding and agreement of the Parties, and there are no further or other agreements or understandings, written or oral, in effect between them relating to the subject matter hereof. 14. Amendments. This Agreement may not be amended except by a written document executed by the Parties hereto. 15. Independent Contractor. It is expressly acknowledged and understood by the Parties hereto that nothing contained in this Agreement shall result in, or be construed as establishing an employment relationship between the Parties. 16. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. The Parties agree that venue in any action to enforce or interpret this Agreement shall be in the Eagle County District Court. 17. No Third Party Rights. This Agreement does not and shall not be deemed to confer upon or grant to any third party any right enforceable at law or equity arising out of any term, covenant or condition herein or a breach thereof. [Signature Page Follows] EXHIBIT H   Eagle County, Town of Avon, Berry Creek Metro District IGA Maintenance West Avon Parcel Page 6 of 6 Dec 17, 2012 ejh rev   IN WITNESS WHEREOF, the Parties have hereunto set their hands, by their duly authorized representatives. TOWN OF AVON ATTEST: By and through its Town Council By:__________________________ By: _____________________________ Patty McKenny, Town Clerk Rich Carroll, Mayor ATTEST: EAGLE COUNTY, COLORADO By and through its Board of County Commissioners By:__________________________ By: _____________________________________ Clerk to the Board of Jon Stavney, Chairman County Commissioners BERRY CREEK METROPOLITAN DISTRICT By:__________________________________ Its: __________________________________ EXHIBIT H AT T A C H M E N T 2 AT T A C H M E N T 2 AT T A C H M E N T 2 AT T A C H M E N T 2 AT T A C H M E N T 2 ATTACHMENT 2 ATTACHMENT 2 ATTACHMENT 2 ATTACHMENT 2 ATTACHMENT 2 ATTACHMENT 2 MINUTES OF THE REGULAR MEETING OF THE AVON TOWN COUNCIL HELD NOVEMBER 27, 2012 A regular meeting of the Town of Avon, Colorado was held at the Avon Town Hall, One Lake Street, Avon, Colorado in the Council Chambers. Mayor Carroll called the meeting to order at 5:30 PM. A roll call was taken and Council members Present were Dave Dantas, Chris Evans, Kristi Ferraro, Todd Goulding, Amy Phillips and Buz Reynolds. Also present were Town Attorney Eric Heil, Acting Town Manager Patty McKenny, Town Advisor Larry Brooks, Finance Director Scott Wright, Deputy Town Clerk Catherine Mythen, as well as other staff members and the public. CONSENT AGENDA a. Minutes from November 13, 2012 Mayor Carroll asked for a motion on the consent agenda. Councilor Dantas moved to approve the consent agenda; Councilor Phillips seconded the motion and it passed unanimously. COUNCIL & STAFF UPDATES a. Congratulations to Battle Mountain Huskies Soccer Team for winning 1st place in the Colorado State Soccer Tournament and for an Undefeated 20-0 Season (Buz Reynolds, Councilor) Buz Reynolds commented on the tournament and the great job that the team did. a. Update on Implementation of Settlement Term Sheet (Eric Heil, Town Attorney) Eric Heil, Town Attorney gave a brief update on the settlement. b. Special Events Update: Icing in the Park and Fire & Ice in Nottingham Park (Danita Chirichillo, Special Events Supervisor) Updates on winter events Danita Chirichillo gave an update on the upcoming events that will be held at the lake this winter. d. Recreation Center Update: Ascent Physical Therapy Lease (Meryl Jacobs, Recreation Director) Update about leasing childcare space to Ascent Physical Therapy / Memo only e. Financial Matters (Kelly Huitt, Budget Analyst) Memo only RESOLUTIONS a. Resolution No. 12-22, Series of 2012, Resolution Certifying Delinquent Charges for Collection by Eagle County Treasurer (Scott Wright, Finance Director) Resolution addressing the collection of delinquent charges to be certified and collected by Eagle County Treasurer on behalf of Town of Avon Scott Wright presented the Resolution Certifying Delinquent Charges for Collection by Eagle County Treasurer. It was noted that the resolution was needed in an effort to collect taxes on two properties as described in the council packet memo, a) property tax for costs incurred by the town to fix a drivey on a Wildridge property, b) real estate transfer tax due on a purchase on a property at the Seasons. After some discussion, Mayor Pro Tem Ferraro moved to approve Resolution No. 12-22, Series of 2012, Resolution Certifying Delinquent Charges for Collection by Eagle County Treasurer. Councilor Phillips seconded the motion and it passed unanimously. Regular Council Meeting Page 2 of 4 Minutes 12.11.27 b. Resolution No. 12-23, Resolution to Appoint Municipal Judge (Rich Carroll, Mayor) Councilor Phillips moved to approve Resolution No. 12-23, Resolution to Appoint Municipal Judge Councilor Evans seconded the motion and it passed unanimously. c. Resolution No. 12-24, Series of 2012, Resolution in Appreciation of Councilor Amy Phillips’ Years of Service (Rich Carroll, Mayor) Mayor Carroll moved to approve Resolution No. 12-24, Series of 2012, Resolution in Appreciation of Councilor Amy Phillips’; Councilor Goulding seconded the motion and it passed unanimously. Mayor Carroll read into the record a letter from former Council member Brian Sipes. Ron Wolf former Mayor and Council member also thanked both Kristi and Amy for their commitments to public service. Larry Brooks commented also and thanked both Amy and Kristi for their hard work for the Town of Avon. Michael Brown thanked both Amy and Kristi for their service to the town of Avon. d. Resolution No. 12-25, Series of 2012, Resolution in Appreciation of Mayor Pro Tem Kristi Ferraro’s Years of Service (Rich Carroll, Mayor) Councilor Goulding moved to approve Resolution No. 12-25, Series of 2012, Resolution in Appreciation of Mayor Pro Tem Kristi Ferraro’s Years of Service; Mayor Carroll seconded the motion and it passed unanimously. READING OF THE NAMES OF NEWLY ELECTED AVON COUNCIL MEMBERS (Patty McKenny, Town Clerk) COUNCIL ELECT: JENNIE FANCHER, ALBERT “BUZ” REYNOLDS, JAKE WOLF SWEARING IN AND SEATING OF NEW COUNCIL MEMBERS (Buck Allen, Avon Municipal Judge) The New Council members were sworn in and then proceeded to take their seats as Council members. SELECT MAYOR AND MAYOR PRO TEM a. Nominate and Elect a Temporary Chairperson There was unanimous support that Mayor Carroll serve the temporary Chairperson role. b. Nominate and Elect Mayor and Mayor Pro Tem There was some discussion about the process legally acceptable for selecting the Mayor and Mayor Pro Tem, Town Attorney Eric Heil noted that either verbal votes or secret ballots were legal means of conducting this business and that the process in recent years has been public voting. It was agreed that public voting would be most favorable. At this time Councilor Dantas nominated Buz Reynolds and Councilor Fancher nominated Rich Carroll. There was some time given to a question and answer format for each of the nominees. Michael Cassioppo, Avon resident, supported the process the Town Council members selected for choosing its Mayor & Mayor Pro Tem. He also commented on the use of the microphones. The members voted and Community Relations Officer Jaime Walker read the results and noted that Rich Carroll would be the next Avon Mayor. Councilor Evans nominated Todd Goulding for Mayor Pro Tem. There were no other nominations, ballots were voted, and it was noted that Todd Goulding would serve as the next Mayor Pro Tem. ROLL CALL OF NEW COUNCIL A roll call was taken by newly elected Mayor Rich Carroll and Council members present were Dave Dantas, Chris Evans, Jennie Fancher, Todd Goulding, Buz Reynolds and Jake Wolf. Regular Council Meeting Page 3 of 4 Minutes 12.11.27 ORDINANCES a. Ordinance No. 12- 11, Series of 2012, First Reading, Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax (Eric Heil, Town Attorney) Legislation addressing real property transfer tax as it applies to leases with terms in excess of 25 years Eric Heil, Town Attorney presented Ordinance No. 12- 11, Series of 2012, First Reading, Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax (“RETT”). There was some description about the process required when approving ordinances. He noted that the revisions would be made to the RETT code, and helps to settle some disputes with Traer Creek. He spoke about the kind of tax the Code imposes on long term leases. It was noted that the town has not collected the RETT on any of its long term leases. The revisions included the following:  The addition of a definition of consideration to allow for the payment of the applicable real property transfer tax when lease payments are paid  The addition of a new section 3.12.055 “required Reporting of Leases” defining that it is not a requirement to report long terms leases, which would enhance the ability of the town to enforce the regulation  Language that is expressly worded to have not retroactive application to leases entered into before January 10, 2012. There was a request from Council to further research what other communities are doing in this regard of long term leases and some thoughts that imposing this may be counterproductive to encouraging development in Avon. It was also noted that if the tax were repealed, there would be no ability to impose the tax in the future. There was some interest in discussing further other amendments to the Code on this matter. Councilor Reynolds moved to table Ordinance No. 12- 11, Series of 2012, First Reading, Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax; Councilor Dantas seconded the motion. There was some discussion about the legal implications of taking this direction on the legislation in light of the settlement with the Village at Avon. A roll call vote was taken and it failed with a six to one (Reynolds – yea; Carroll, Dantas, Evans, Fancher, Goulding, Wolfe - nay). Councilor Evans moved to approve Ordinance No. 12- 11, Series of 2012, First Reading, Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax; Mayor Pro Tem Goulding seconded the motion and it passed with a six to one (Carroll, Dantas, Evans, Fancher, Goulding, Reynolds - yea; Wolf – nay). It was noted that a public hearing on the matter would occur on December 11, 2012. MAYOR REPORT There were some updates presented at this time related to Amendment 64 and the Avon Elementary School’s receipt of the National Blue Ribbon Award. There was request to review the council committee appointments at the next meeting. Mayor Carroll took some time to introduce Virginia Egger as the new Town Manager of Avon. Regular Council Meeting Page 4 of 4 Minutes 12.11.27 There being no further business to come before the Council, the regular meeting adjourned at 7:15 PM. RESPECTFULLY SUBMITTED: _________________________________ Catherine Mythen, Deputy Town Clerk APPROVED: Rich Carroll ________________________________ Dave Dantas ________________________________ Chris Evans ________________________________ Kristi Ferraro ________________________________ Todd Goulding ________________________________ Amy Phillips ________________________________ Albert “Buz” Reynolds ________________________________ MINUTES OF THE REGULAR MEETING OF THE AVON TOWN COUNCIL HELD DECEMBER 11, 2012 A regular meeting of the Town of Avon, Colorado was held at the Avon Town Hall, One Lake Street, Avon, Colorado in the Council Chambers. Mayor Carroll called the meeting to order at 5:30 PM. A roll call was taken and Council members Present were Dave Dantas, Chris Evans, Jennie Fancher, Todd Goulding, Buz Reynolds and Jake Wolf. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager/Town Clerk Patty McKenny, Finance Director Scott Wright, Town Engineer Justin Hildreth, Community Relations Officer Jaime Walker, Town Advisor Larry Brooks, as well as other staff members and the public. CONSENT AGENDA a. MTRiP 2013 Destination Client Agreement (Kelly Huitt, Budget Analyst) 2013 MTRiP Contract that provides arrangement for receiving various lodging reports There was some discussion about the 2013 agreement and some suggestions were made for clarity as follows:  Title the document Contract for Services (See Attachment A, which refers to the contract as a Contract for Services);  Paragraph 1 and thereafter when cited: “and its member participating properties (Client- Properties) be deleted  Page 1, #2 under Client Responsibilities: Kelly Huitt be changed to “Town Manager or designee” There was consensus to continue participating with the program, but continue to fine tune how the town utilizes the data. Councilor Evans moved to approve the Consent agenda which included the MTRiP 2013 Destination Client Agreement. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. ACTION ITEMS a. Notice of Appeal with respect to the Partial Real Estate Transfer Tax Exemption Decision by Town of Avon (Eric Heil, Town Attorney) Review RETT appeal application submitted by Mr. Eustaquio Cortina Town Attorney Eric Heil presented the information submitted by Mr. Eustauio Cortina related to a Real Property Transfer Tax Exemption Application, seeking an exemption under Avon Municipal Code 3.12.060(5) for the transfer of 3000 Eaglebend Drive, #14 (“Property”) FROM 9 Vail Road 2A LLC (“LLC”) to himself. Town Staff approved a 50% RETT exemption on 10/23/12 based upon documentation received which indicated that Mr. Cortina was the 50% owner of the Property. Mr. Cortina submitted an appeal pursuant to the AMC on November 5, 2012. The town did not have sufficient documentation to verify that Mr. Cortina was a 100% owner of the Property and the documents show the LLC was dissolved in 2010. The applicant submitted additional documentation in response to the town’s request, including a signed statement from the other member owner of the LLC that Mr. Cortina owned 100% of the LLC as of 2008. Wendel Porterfield, attorney representing Mr. Cortina, provided an overview of the application since he submitted documents on behalf of the appellate. Mr. Cortina addressed the Town Council admitting that the timing of changing the LLC did not meet requirements, however he stated that is 100% owner of the unit. There was adequate demonstration of the application showing that there should be an exemption granted. Mayor Pro Tem Goulding moved to approve the appeal to grant the exemption at 100%; Councilor Reynolds seconded the motion and it passed unanimously. Regular Council Meeting Page 2 of 5 Minutes 12.12.11 b. Eaglebend Dowd Affordable Housing Corporation Request (Scott Wright, Finance Director) Request to defer payment of a bond issuance fee due the Town in 2011 Councilor Chris Evans announced a conflict of interest at this time since his wife serves as a board member on the EagleBend Affordable Housing Board; Councilor left the council chambers. Scott Wright, Finance Director, presented the request on behalf of Gerry Flynn, Polar Star Properties. The Board was requesting to defer payment of a bond issuance fee due the town in 2011 in the total amount of $10,697. There was some historical information provide about the town’s role with this affordable housing group. Gerry Flynn, Polar Star Properties and property manager, addressed the Council regarding the matter providing additional details about the status of the Kayak property. Mayor Pro Tem Goulding moved to approve the request by EagleBend Dowd Affordable Housing Corporation to continue deferral of payment of the 2011 bond issuance fee in the amount of $10,697 for an additional one year, and approve new request to defer payment of the 2012 bond issuance fee in the amount of $10,472 for one year, and authorize Town Manager and Town Attorney to review and execute the necessary documentation to effectuate the requested deferral. Councilor Wolf seconded the motion and it passed unanimously by those present (Evans did not vote nor present due to conflict of interest). THE VILLAGE (AT AVON) SETTLEMENT IMPLEMENTATION ACTION ITEMS Councilor Evans returned to the meeting at this time. An update on the implementation of the Settlement Term Sheet was provided by Eric Heil, Town Attorney with a review of progress and status of implementation, noting the following:  Judge vacated the trial in January  Water authority continues to work with parties to fine tune the water tank agreement  Next status report to be filed on January 11, 2012  Status conference set for late January  Status of other documents was reviewed, ie. Service plan amendments conveyance documents, title insurance commitments  Passed the deadline to file any legal actions on the council’s action on ordinance 12-10 a. Public Hearing on Ordinance No. 12- 11, Series of 2012, Second Reading, Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax (Eric Heil, Town Attorney) Help implement the settlement term sheet by revising certain regulations in town’s real estate transfer tax related to the applicability of the tax to long term leases This ordinance was presented by Town Attorney Eric Heil who noted that the ordinance was approved on 1st reading on 11/27/12 and the legislation would amend Chapter 3.12 of the Code regarding Real Property Estate Transfer Tax. It was noted that the town’s real property transfer tax applies to leases with terms in excess of 25 years and that Traer Creek parties brought to the Town’s attention that it had not collected this tax from them nor other parties with long term leases. The ordinance addresses some of the following:  Addition of definition of consideration to allow for the payment of the applicable real property transfer tax when lease payments are paid  Addition of new section 3.12.055 named “Required Reporting of Leases” so that reporting is now a requirement for long term leases and enhances enforceability.  Language that does not allow for retroactive application to leases entered into before January 10, 2012.  Attention in the ordinance that does not provide an conflict with the Tax Payers Bill of Rights Regular Council Meeting Page 3 of 5 Minutes 12.12.11 He noted that there would be additional research done by staff to compile information about other communities experience with administration, enforcement and impact to commercial leases. The public hearing was opened, no comments were made, the hearing was closed. Councilor Evans moved to approve Ordinance Amending Chapter 3.12 of the Avon Municipal Code Regarding Real Property Transfer Tax; Mayor Pro Tem Goulding seconded the motion and it passed unanimously. b. Public Hearing on Resolution No. 12-28, Series of 2012, Resolution Approving the Final Plat, The Village (at Avon) Subdivision Filing 4 (Justin Hildreth, Town Engineer) A minor subdivision application that will create two lots, one of which will be transferred to the Upper Eagle Regional Water Authority for the water storage tank Town Attorney Eric Heil noted a couple of revisions to the resolution, removal of the signature block and dedication language. Town Engineer Justin Hildreth reviewed the minor subdivision application for the final plat the village at Avon filing 4 by the applicant Traer Creek-RAP LLC. It was noted that the application accompanies the resolution approving the Traer Creek Water Storage Tank Agreement, one of the requirements of that agreement which was contemplated as part of the global settlement agreement with Traer creek parties. It was noted that the final plat was in conformance with the Avon Municipal Code, and in conformance with the Village (at Avon) amended and restated PUD guide. The purpose of the plat is to create two new lots, Tract I and Tract J. The public hearing was opened, no comments were made, the hearing was closed as required by the Code. Councilor Dantas moved to approve Resolution No. 12-28, Series of 2012, Resolution Approving the Final Plat, The Village (at Avon) Subdivision Filing 4; Councilor Evans seconded the motion and it passed unanimously. c. Resolution No. 12-29, Series of 2012, Resolution Approving the Traer Creek Water Storage Tank Agreement (Eric Heil, Town Attorney) An agreement that partially implements the settlement term sheet by setting fort the terms of financial commitments by Traer Creek Metro District to the Upper Eagle River Water Authority to finance the construction of a water storage tank Town attorney Eric Heil presented the resolution and topic about the parties involved in the water storage tank agreement. It was noted that the Town Council previously approved the form of the Traer Creek Water Storage Tank agreement last spring. He noted the attached agreement partially implements the settlement term sheet by setting forth the terms of financial commitments by TCMD & UERWA to finance the construction of a water storage tank and by defining obligations of UERWA to construct the tank. The current water storage tank will resolve the current moratorium on additional development in the village. There was some discussion to authorize the Town Manager and Town Attorney to review the final documents since all parties continue to review them for accuracy. Mayor Pro Tem Goulding moved to approve Resolution No. 12-29, Series of 2012, Resolution Approving the Traer Creek Water Storage Tank Agreement; Councilor Goulding seconded the motion and it passed unanimously. d. Resolution No. 12-30, Series of 2012, Resolution Approving the Asphalt Overlay Escrow Agreement (Eric Heil, Town Attorney) Agreement that establishes the rights and obligations of the town, Traer Creek Metro District and Traer Creek LLC to deposit funds into escrow account and establishes procedures for release of such funds for the purpose of conducting asphalt overlays on road in the Village (at Avon) Town Attorney noted that there were no changes to the agreement. Mayor Pro Tem Goulding moved to approve Resolution No. 12-30, Series of 2012, Resolution Approving the Asphalt Overlay Escrow Agreement; Councilor Dantas seconded the motion and it passed unanimously. Regular Council Meeting Page 4 of 5 Minutes 12.12.11 RESOLUTIONS Scott Wright, Finance Director, presented two resolutions that would levy the property taxes for the Town of Avon general operating, debt service and the Avon General Improvement District No. 1. a. Resolution No. 12-26, Series of 2012, Resolution Levying General Property Taxes for the Year 2012, to help defray the costs of government for the Town of Avon, Colorado, for the 2013 Budget Year (Scott Wright, Finance Director) Councilor Evans moved to approve Resolution No. 12-26, Series of 2012, Resolution Levying General Property Taxes for the Year 2012, to help defray the costs of government for the Town of Avon, Colorado, for the 2013 Budget Year. Mayor Pro Tem Goulding seconded the motion and it passed unanimously b. Resolution No. 12-27, Series of 2012, Resolution Levying General Property Taxes for the Year 2012, to help defray the Costs of government for the Town of Avon General Improvement District No. 1, Avon, Colorado, for the 2013 Budget Year (Scott Wright, Finance Director) Councilor Dantas moved to approve Resolution No. 12-27, Series of 2012, Resolution Levying General Property Taxes for the Year 2012, to help defray the Costs of government for the Town of Avon General Improvement District No. 1, Avon, Colorado, for the 2013 Budget Year. Councilor Evans seconded the motion and it passed unanimously. STAFF UPDATES a. Capital Projects Update (Justin Hildreth, Town Engineer) Review current capital projects 1) Harry A. Nottingham Park Lake Liner Design Update Staff reported on the status of work being done on the lake liner replacement project. It was noted that they are currently procuring a design team and requested input from Council on some possible improvements. Some discussion ensued, and another presentation would be made with the final list of improvements recommended. 2) I-70 Transit Facility Construction Project Update Staff reported on the status of the construction of the I-70 Transportation Operations Facility Project. They identified some completed items, status of funding, and project scope related to the buildout of the mezzanine. It was agreed that staff would continue to update the Council with regard to the mezzanine as costs and uses are determined. 3) Metcalf Drainage Improvements Project Update Staff reported on the completion of this project noting that it was done timely & within budget. TOWN MANAGER REPORT New Town Manager Virginia Egger presented updates on some of the activity that she has been engaged in the past week. MAYOR REPORT a. Discuss Future Agenda Items Mayor Carroll provided information on some of the following topics:  Recent meeting with Mayor Pro Tem, Mayor, Town Attorney, Town Manager, Asst. Town Manager regarding email communications, how to present updates, agenda revisions, longer term look at agendas, start times for meetings, how to work more efficiently.  Avon Elementary School Update  Eagle Air Alliance Meeting attended by Finance Director  Suggested that a Joint meeting w/ Planning & Zoning Commission happen two times per year  Recognition to the Vail Valley Foundation for a spectacular Birds of Prey event. Regular Council Meeting Page 5 of 5 Minutes 12.12.11  Austrian contingency follow up on researching a “Sister City in Austria”; (Mayor Carroll & Councilor Reynolds expressed interest in compiling information on this idea) EXECUTIVE SESSION Councilor Wolf moved to convene into executive session at 8:05 pm to meet with Town Attorney for the purpose of considering purchase, acquisition and sale of real property pursuant to Colorado Revised Statute §24-6-402(4)(a) and for the purpose of determining positions relative to matters that may be subject to negotiations pursuant to Colorado Revised Statute §24-6-402(4)(e) concerning prospective economic development. The motion was seconded and it passed unanimously. A motion was made to adjourn from the Executive Session and There being no further business to come before the Council, the regular meeting adjourned at 8:55 PM. RESPECTFULLY SUBMITTED: _________________________________ Patty McKenny, Town Clerk APPROVED: Rich Carroll ________________________________ Dave Dantas ________________________________ Chris Evans ________________________________ Jennie Fancher ________________________________ Todd Goulding ________________________________ Albert “Buz” Reynolds ________________________________ Jake Wolf ________________________________ TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Patty McKenny, Assistant Town Manager Management Services Date: January 3, 2013 Agenda topic: Village at Avon Settlement Implementation Update Town Attorney Eric Heil will present an update on the status of the Village at Avon Settlement Implementation. Please note this update will be presented verbally at the meeting next Tuesday. Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: ericheillaw@gmail.com TO: Honorable Mayor Carroll and Town Council Members FROM: Eric Heil, Town Attorney RE: Official Conduct and Conduct of Meetings DATE: January 11, 2011 INTRODUCTION: This memorandum provides an overview of the law regarding meetings and conduct of elected and appointed officials. Specific topics addressed in this memorandum include Conflicts of Interest; Colorado Open Meeting Law; Colorado Open Records Act; Executive Sessions; and Legislative versus Quasi-Judicial actions. This memorandum and the presentation on January 8, 2013 is not intended to be an exhaustive or definitive explanation of these topics, rather, they are intended to be an overview and introduction to these topics so that you may better recognize when attention or consideration is warranted during the course of performing your official duties. 1. CONFLICT OF INTEREST: Conflict of interest rules and guidelines apply to Town Council members as well as Town employees and members of Town boards and commission. This memorandum discusses general considerations, sources of conflict of interest laws, consequences of violations, and recommended best practices. GENERAL CONSIDERATIONS: Conflict of interest rules and guidelines are an integral safeguard in our system of democracy because they protect against abuse of governmental power. C.R.S. §24-18-103(1) states, “The holding of public office or employment is a public trust, created by the confidence which the electorate reposes in the integrity of local government officials, and employees. A local government official or employee shall carry out his duties for the benefit of the people of the state.” The Avon municipal code sets forth a Declaration of Policy in Section 2.30.020, which states, “The proper operation of democratic government requires that public officers be independent, impartial and responsible to the people; that government decisions and policy be made within the proper channels of the governmental structure; that public office not be used for personal gain; and that the public have confidence in the integrity of its government.” Two basic considerations for conflict of interest matters are whether the conduct is an actual conflict of interest and whether the conduct creates the appearance of impropriety. The latter consideration is important because often times conduct that does not constitute a clear conflict of interest for private financial gain can include other interests affecting the Town as well as the appearance that the interest of a public official is other than the public interest. Note that Avon Municipal Code section 2.30.060 (8) states MEMORANDUM H EIL L AW & PLANNING LLC Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 2 of 8 that a Town officer shall not, “Perform any official act under circumstances which give rise to appearance of impropriety on the part of the officer; . . . .” Ethical rules, statutes and guidelines should be treated as minimum standard, or floor, rather than the ceiling. Actions that are technically legal may not be ethical. Consultation with the Town Attorney is recommended when the application of conflict of interest rules and guidelines to a specific situation is uncertain. Public officials should always consider the appearance of his or her conduct as viewed in the harshest public light, not by his or her own perception of reasonableness. CONFLICT OF INTEREST LAWS: There are five areas in which conflict of interest laws arise, including: 1. Colorado Constitution: Art IV, §19 (salary and compensation of elected officials cannot be increased or decreased during official term); Art XII, §§6 and 7 (bribery). 2. Statutory Standards of Conduct: C.R.S. §24-18-101 et. seq., Code of Ethics; C.R.S. §24-18-201 et. seq. Proscribed Acts Related to Contracts and Claims; C.R.S. §31-4-404(2) and (3) Requirements and Compensation of Officers. 3. Criminal Code: §18-8-302 (criminal bribery), §18-8-304 (soliciting unlawful compensation), §18-8- 303 (compensation for past official behavior); §18-8-305 (trading in public office); §18-8-308 (failure to disclose a conflict of interest). 4. Avon Municipal Code: Chapter 2.30 Town Code of Ethics. 5. Common Law Doctrine of Conflict of Interest: Soon Ye Scott v. City of Englewood. Although the Town Code of Ethics supersedes the statutory Standards of Conduct, state criminal codes still apply and other areas of the law may be used to interpret or construe the Town Code of Ethics where similar language and provisions are used. AVON CODE OF ETHICS: The Town Code of Ethics is more extensive than the Statutory Code of Ethics. The definition of financial interest in the Town Code of Ethics tracks the statutory definition in C.R.S. §24- 18-102(4) but also extends the definition to the interest of the public official’s spouse and dependent children. The Town Code of Ethics prohibits conduct which gives rise to the appearance of impropriety and failure to disclose ex parte contacts. The latter two conflicts of interest are discussed in the Recommend Best Practices section below. The Avon Town Council determines whether a conflict of interest exists for Council members and the Planning Commission determines whether a conflict of interest exists for Planning Commission members. PROCEDURES AND PENALTIES FOR VIOLATIONS: Avon’s Code establishes the Town Council as having the primary responsibility for enforcement of the Town Code of Ethics. The Town Council may direct the Town Attorney to investigate and prosecute violations. Violations of the Town Code of Ethics are punishable by up to $1,000 and one year in jail for each offence and upon conviction of a violation of the Town Code of Ethics, the Town Officer must forfeit his or her position. The Town Code of Ethics was Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 3 of 8 amended in early 2012 to incorporate C.R.S. §24-18-103(2), which provides that the District Attorney may bring appropriate judicial proceedings on behalf of the people for a violation of the public trust. Proceedings by the District Attorney may be in addition to any criminal proceedings. RECOMMENDED BEST PRACTICES: “Appearance of Impropriety” is a general and subjective term. Generally, the potential impropriety of conduct should be evaluated by how it may appear to the general public. Particular attention should be given to conduct which may appear to involve the use of governmental authority to provide an advantage or benefit for a financial or personal benefit that is not in the public interest and not available to general public. Ex Parte contact is contact by a public official outside of a public hearing which concerns the subject matter of the public hearing. Ex Parte contact can create a common law conflict of interest if such contact evidences a personal interest. Matters subject to public hearings are considered to be quasi-judicial and applicants are entitled to fair and impartial review by the decision makers. Although there is a presumption of integrity, honesty and impartiality in favor of those serving in quasi-judicial capacities, stating a position on a matter subject to a public hearing prior the hearing evidences personal interest and bias and will likely disqualify that person’s vote. I recognize that inadvertent contact with members of the public can often occur when public officials are approached by interested citizens. Also, it may be viewed as impolite and inappropriate for a public official to not communicate with members of the public. A recommended appropriate response is to explain (1) the matter is subject to public hearing, (2) you are sitting in a judicial capacity by reviewing the application and must remain impartial, (3) you are not permitted to discuss the application or formulate an opinion before reviewing all information and considering all comments at the hearing, (4) if you discuss the matter you may be disqualified from voting, and (5) information regarding the application and review procedures are available through the Town Hall. Inadvertent contacts and an explanatory response as to why the matter cannot be discussed do not constitute “ex parte” contact and do not need to be disclosed. However, any discussion of the merits of an application subject to a public hearing prior to the public hearing should be disclosed. 2. COLORADO SUNSHINE ACT OF 1972: In the late 60’s and early 70’s most states adopted open meetings legislation. The Colorado Sunshine Act (“CSA”) was adopted as an initiated statute in 1972. CSA addresses many areas of state and local government; however, this memorandum will focus only on the portion of CSA that applies to municipalities which is set forth in CRS §24-6-401 et seq. Declaration of policy. It is declared to be a matter of statewide concern and the policy of this state that the formation of public policy is public business and may not be conducted in secret.1 1 CRS §24-6-401. Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 4 of 8 GENERAL RULE: 3 OR MORE: All meetings of a quorum or three or more members of any local public body, whichever is fewer, at which any public business is discussed or at which any formal action may be taken are declared to be public meetings open to the public at all times.2 “Local public body” means any board, committee, commission, authority, or other advisory, policy-making, rule-making, or formally constituted body of any political subdivision of the state and any public or private entity to which a political subdivision, or an official thereof, has delegated a governmental decision-making function but does not include persons on the administrative staff of the local public body.3 CHANCE MEETING OR SOCIAL GATHERING EXCLUSION. This part 4 does not apply to any chance meeting or social gathering at which discussion of public business is not the central purpose.4 FULL AND TIMELY NOTICE: CSA generally requires that notice of a public meeting must be posted prior to the meeting and should include specific agenda information where possible. In addition to any other means of full and timely notice, a local public body shall be deemed to have given full and timely notice if the notice of the meeting is posted in a designated public place within the boundaries of the local public body no less than twenty-four hours prior to the holding of the meeting. “In addition to any other means of full and timely notice, a local public body shall be deemed to have given full and timely notice if the notice of the meeting is posted in a designated public place within the boundaries of the local public body no less than twenty-four hours prior to the holding of the meeting.”5 Posting a notice at least 24 hours prior to a meeting at the designated places of posting is a “safe harbor” which documents compliance with the CSA but is not an absolute requirement. Also, the agenda need not specifically designate the potential that official action will be taken for a particular business items and it is possible to add business items at the beginning of the meeting if the importance or need for such business item was not known prior to posting the meeting notice. The Town’s Home Rule Charter does create a restriction for “special meetings” by stating that no business may be conducted at a special meeting unless set forth in the agenda and notice of the meeting. The Colorado Supreme Court has established an “ordinary person” standard for reviewing compliance with CSA’s notice requirements in which the courts will review the notice in light of the knowledge of an ordinary member of the community to whom it is directed.6 Matters of public policy and Town decisions which involve significant public interest, controversy or potential for legal challenge should strictly adhere to the safe harbor standards for full and timely notice. 2 CRS §24-6-402(2)(b) 3 CRS §24-6-402(1)(a) 4 CRS §24-6-402(2)(e) 5 CRS §24-6-402(2)(c) 6 Town of Marble v Darien, 181 P.3d 1148 (Colo.2008) Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 5 of 8 3. COLORADO OPEN RECORDS ACT (“CORA”): CORA provides that all public records are open for inspection by any person at reasonable times. Generally, CORA applies to all writings and electronic records of the Town, including books, maps, photographs, cards, tapes, recordings and any other document in physical or electronic form. Anyone can submit a public records request. Upon receiving a request for public records, the “official custodian” must provide access for inspection of public records within three days, or if due to the large volume documents requested or due to high workload demands, seven additional days are permitted. The Town Clerk has a public records request form. CORA does not require the Town to create a record which does not exist. The Custodian may deny release of records in the following categories: • Police Department and Prosecuting Attorney • Licensing, employment and academic examinations • Real estate appraisals • Specialized details of security arrangements The Custodian must deny release of records in the following categories: • Medical, Psychological, Sociological and Scholastic Achievement Data • Personnel files (with exceptions for person in interest) • Letters of reference • Privileged and confidential information • Deliberative process • Sexual Harassment Investigation Records • Election Records • Libraries and museums • Users of public facilities • Materials submitted by applicants for executive positions There is also a catch all category whereby the custodian may deny access to records which would “cause substantial injury to the public interest.” E-MAIL CORRESPONDENCE: Town Staff provides e-mail correspondence on a regular basis to Town Council members in an effort to keep Council members informed of pending topics. CSA was amended to include e-mails as a form of communication which constitutes a “meeting.” On the subject of e-mails, CSA states, Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 6 of 8 “If elected officials use electronic mail to discuss pending legislation or other public business among themselves, the electronic mail shall be subject to the requirements of this section. Electronic mail communication among elected officials that does not relate to pending legislation or other public business shall not be considered a “meeting” within the meaning of this section.”7 The basic elements of a public meeting which arise through e-mail correspondence are (1) an e-mail sent or distributed by a Council member (2) to three or more Council members that (3) involves Town business. The past practice in Avon has been for the Town Staff to send updates periodically on matters of Council concern. At times, Town Staff has received a question from a Council member and copied all the Council members with the answer. This practice is not considered a public meeting because such e-mails would not be construed as a discussion of public business among Council members. However, as Council members become involved with committees and e-mail Town Staff, then e-mail Council as a whole, the potential for a “public meeting” becomes much higher. PUBLIC RECORDS: The Colorado Open Records Act (CORA) expressly includes electronic mail messages in the definition of “public records.” Colorado courts have ruled that determination of whether an electronic message is a public record depends upon the content and not the equipment which originated the message. Thus, whether an e-mail is sent from a Town or private computer or phone, or via a Town e- mail address or personal e-mail address, such e-mail will be a public record if it concerns Town business. Conversely, an e-mail, such as “Let’s go skiing” is not a public record because it does not concern Town business. One exception to public records is attorney-client privilege. The attorney-client privilege of legal advice provided to Council members is not waived merely by providing such advice through e-mail. However, e- mail dialogue that merely copies legal counsel for the Town does not automatically confer attorney-client privileged status on such communication. The privilege only extends to communication, or a string of communications, in which legal counsel is providing legal advice. Public Records Requests: The most significant concern about e-mail correspondence and the primary purpose of providing this memorandum is to raise Council members’ awareness that e-mails which constitute “public records” must be produced and disclosed upon receiving a public records request. A public records request could simply state, “all public records related to Topic X” and Town Staff and any other elected and appointed officials would be required to review any and all e-mail correspondence related to Topic X and produce such e-mails. Even though CORA allows the Town to charge for expenses related to copies and researching public records for production, compliance with such requests are disruptive to Town Staff workflow and schedules. Where the Town has custody of e-mail correspondence from elected officials, the custodian (Town Clerk) must consult with each elected official prior to allowing inspection of 7 CRS §24-6-402(2)(d)(III) Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 7 of 8 the correspondence for the purpose of determining whether the correspondence is a public record, CRS §24-72-203(2)(b). Recommended Policies: The following policies and considerations are suggested: 1. E-Mails from Council members to Council members should be avoided due to the likelihood that such e-mails arguably constitute a public meeting in violation of the Open Meetings Law. Benign e-mails among Council members, such as “Joe, are you bringing the potato salad to the community picnic,” are not a concern. 2. Any and all e-mails should be prepared with awareness that the e-mail may constitute a public record and may be produced and disclosed to the public (i.e. avoid embarrassing, disparaging or derogatory statements). 3. Any matter of concern, or response to a question, which can be deferred to the next Council meeting and included in the Council packet should be deferred. For example, where individual Council members wish to raise a matter for discussion with Council as a whole, an appropriate procedure would be to submit such concern in writing to the Town Manager or Town Clerk prior to the packet deadline for Council. Also, unless there is a need for an immediate response, the response to questions submitted by Council members to Town Staff could also be included in the Town Council packets. 4. EXECUTIVE SESSIONS: The Colorado Sunshine Act establishes procedures and authority for conducting a meeting executive session whereby the general public may be excluded. The authority to meeting in executive session is limited to the following topics: • Property transactions • Conferences with an attorney to receive legal advice • State or federal matters which are required to be confidential • Specialized details of security arrangements or investigations • Negotiations, including determining positions, developing a strategy and instructing negotiators • Personnel matters (does not include discussion of elected officials or discussion of general personnel policies which are not specific to particular employees) A motion to convene into executive session requires an affirmative vote of 2/3rds of the quorum present. Executive sessions may be called at any time in a public meeting without any requirement for prior noticing on the agenda. The Planning Commission is also authorized to convene into executive session. Executive sessions must be recorded except for executive sessions convened for the purpose of receiving legal advice. Executive session recordings may be destroyed 90 days after holding an executive session. If a court determines that an executive session was held for an impermissible purpose, then a court can order that the minutes and recordings of the executive session must be released to the public. Town Council and Planning and Zoning Commission Official Conduct and Official Meetings January 2, 2013 Page 8 of 8 CSA also sets forth special provisions for executive sessions related to recruitment of a chief executive officer (Town Manager) by a search committee. 5. LEGISLATIVE V QUASI-JUDICIAL: Legislative act are treated differently than quasi-judicial actions. Legislative acts involve the enactment of laws which affect the general public or a class of interested persons whereas quasi-judicial acts affect a single person. Public officials are entitled (as well as encouraged and expected) to voice their personal opinions about legislative matters. Also, public officials may freely communicate with the general public outside of public meetings about legislative matters (with the exception that confidential or privileged information may not be disclosed). On the other hand, public officials are restricted from communications with the general public, with an applicant, with an appellant and with Town staff concerning quasi-judicial matters. In addition to development applications, quasi-judicial decisions also include liquor license authority hearings and appeals hearings. Quasi-judicial decisions must be based on indentified standards and the reviewing tribunal must be unbiased and impartial. Bias may include financial conflicts of interest, personal interest, and formulating an opinion prior to a hearing. Colorado courts have not yet ruled directly as to whether the bias of one member of a quasi-judicial tribunal board invalidates the entire board and decision or if the bias of one member only invalidates that member’s vote. 6. GIFT REPORTING: The Town Code of Ethics was amended in early 2012 to adopt rules for reporting of gifts. Article XXIX of the Colorado Constitution sets forth restrictions on acceptance of gifts and requirements for reporting, but also expressly allows home rule communities to adopt local regulations to replace the constitutional requirements. The basic rule adopted in the Town Code of Ethics is that any gift provided to a Town Officer with a value of $50 or more must be reported to the Town Clerk. The gift must be provided to a Town Officer due to such person’s status as a Town Officer in order for the reporting obligation to apply. Gifts from friends and relatives and gifts without the intent to influence or reward a Town Officer are not a conflict of interest. The Town Council determines whether any gifts constitute a conflict of interest. The failure to report a gift, or failure to return a gift once Council determines such gift is a conflict of interest, is a violation of the Town Code of Ethics. Practically, the Town Council receives numerous invitations to various events for which attendance is considered beneficial for the representation of Avon and maintenance of relationships with partnering entities. The Town’s gift reporting regulations allow greater flexibility than the Colorado Constitution to permit attendance at such events. Generally, this has been deemed an acceptable practice provided that the invitation is extended to the Town Council as whole, if limited to less than the entire Council, then acceptance of such limited invitation is discussed by Council as a whole prior to acceptance of a limited invitation. Thank you, Eric TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Patty McKenny, Assistant Town Manager Management Services Date: January 3, 2013 Agenda topic: Responsibilities in Reviewing and Acting on Land Use Applications: Process & Ex Parte Communication Town Attorney Eric Heil will present information outlining the Responsibilities in Reviewing and Acting on Land Use Applications: Process & Ex Parte Communication. The discussion will help shape the environment for the Council when considering these kinds of applications. TOWN COUNCIL REPORT To: Avon Town Council From: Mayor Rich Carroll Date: January 4, 2013 Agenda Topic: Town Council and Mayor Retreat Greg Morrison, The Morrison Group, has been retained as our facilitator for the January 14th Retreat. I worked with Greg, Patty McKenny and Virginia Egger last Monday on the following agenda and schedule for your review and finalization at Tuesday’s Council meeting. Thank you for your review and help. Avon Town Council Retreat Walking Mountains Science Center Attendees: Council, Town Attorney, Town Manager and Assistant Town Manager 8:00 a.m. Gather for coffee & continental breakfast 8:30 a.m. Session 1: Roles, Responsibilities & Communication Greg will work with us to define the respective roles and responsibilities of Councilors, Mayor, Town Attorney and Town Manager. We will develop our understandings of how best to communicate among us, with our regional partners and the Avon community. 10:30 a.m. Break – 10 minutes 10:40 a.m. Session 2: Vision for the Town of Avon and Action Plan What is our vision for the future of Avon – how do we wish to see new development and redevelopment proceed; what is our role to retain and support existing businesses; what are the types of special events we want to support in Town; how will we ensure a high level of service is being delivered with cost efficiency; how do we prepare for the 2015 World Championships and what are our planned outcomes – these are a few topics for our discussions during this session. Each Councilor will be provided the time needed to speak to your vision. Once we have agreed upon the vision, we will take time to identify priority actions needed to implement the vision. It is anticipated Town Manager Virginia Egger will develop a strategic work plan for our approval from this session. - PLEASE PLAN ON A WORKING LUNCH - 2:05 p.m. Break – 10 minutes 2:15 p.m. Session 3: Discussion and Direction to Town Manager Virginia Egger for completion of a Town Government Assessment – Note: An Executive Session may be called for this Session 3:00 p.m. Adjourn TOWN COUNCIL REPORT To: Avon Town Council From: Mayor Rich Carroll Date: January 4, 2013 Agenda Topic: Town Council and Mayor Retreat Greg Morrison, The Morrison Group, has been retained as our facilitator for the January 14th Retreat. I worked with Greg, Patty McKenny and Virginia Egger last Monday on the following agenda and schedule for your review and finalization at Tuesday’s Council meeting. Thank you for your review and help. Avon Town Council Retreat Walking Mountains Science Center Attendees: Council, Town Attorney, Town Manager and Assistant Town Manager 8:00 a.m. Gather for coffee & continental breakfast 8:30 a.m. Session 1: Roles, Responsibilities & Communication Greg will work with us to define the respective roles and responsibilities of Councilors, Mayor, Town Attorney and Town Manager. We will develop our understandings of how best to communicate among us, with our regional partners and the Avon community. 10:30 a.m. Break – 10 minutes 10:40 a.m. Session 2: Vision for the Town of Avon and Action Plan What is our vision for the future of Avon – how do we wish to see new development and redevelopment proceed; what is our role to retain and support existing businesses; what are the types of special events we want to support in Town; how will we ensure a high level of service is being delivered with cost efficiency; how do we prepare for the 2015 World Championships and what are our planned outcomes – these are a few topics for our discussions during this session. Each Councilor will be provided the time needed to speak to your vision. Once we have agreed upon the vision, we will take time to identify priority actions needed to implement the vision. It is anticipated Town Manager Virginia Egger will develop a strategic work plan for our approval from this session. - PLEASE PLAN ON A WORKING LUNCH - 2:05 p.m. Break – 10 minutes 2:15 p.m. Session 3: Discussion and Direction to Town Manager Virginia Egger for completion of a Town Government Assessment – Note: An Executive Session may be called for this Session 3:00 p.m. Adjourn